Texas 2009 - 81st Regular

Texas House Bill HB4347 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R12168 PB-D
2	2	By: Ortiz, Jr. H.B. No. 4347
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to adoption of a consumer bill of rights for insurance
8	8	coverage obtained through the Texas Windstorm Insurance
9	9	Association.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle B, Title 5, Insurance Code, is amended
12	12	by adding Chapter 525 to read as follows:
13	13	CHAPTER 525. CONSUMER BILL OF RIGHTS FOR
14	14	WINDSTORM INSURANCE COVERAGE
15	15	Sec. 525.001. DEFINITIONS. In this chapter:
16	16	(1) "Association" means the Texas Windstorm Insurance
17	17	Association established under Chapter 2210.
18	18	(2) "Seacoast territory" has the meaning assigned by
19	19	Section 2210.003.
20	20	Sec. 525.002. DEVELOPMENT OF CONSUMER BILL OF RIGHTS. (a)
21	21	With the assistance of the public insurance counsel, the department
22	22	shall develop a consumer bill of rights for consumers who reside in
23	23	the seacoast territory.
24	24	(b) The department shall conduct public hearings in the
25	25	seacoast territory to allow stakeholders the opportunity to provide
26	26	information regarding items to be included in the bill of rights.
27	27	The department may also solicit information from stakeholders
28	28	through:
29	29	(1) the department's Internet website; and
30	30	(2) the toll-free telephone number maintained under
31	31	Section 521.051.
32	32	Sec. 525.003. CONTENTS. (a) At a minimum, the consumer bill
33	33	of rights adopted under this chapter must provide consumer
34	34	information regarding windstorm and hail insurance for structures
35	35	located in designated catastrophe areas in the seacoast territory.
36	36	(b) The bill of rights must describe the general operation
37	37	of the Texas Windstorm Insurance Association as a pool of all
38	38	property and casualty insurance companies authorized to write
39	39	coverage in this state, and the association's function as the
40	40	provider of last resort when coverage is not available in the
41	41	voluntary insurance market.
42	42	(c) The bill of rights must explain, in plain language:
43	43	(1) the types of insurance coverage available through
44	44	the association;
45	45	(2) what the insurance available through the
46	46	association does not cover;
47	47	(3) the requirements for obtaining association
48	48	coverage, including how structures are certified as insurable
49	49	against windstorm and hail losses; and
50	50	(4) general inspection requirements, including the
51	51	effects of new construction, alterations, repairs, roofing and
52	52	reroofing, and additions.
53	53	(d) The bill of rights must explain how coverage through the
54	54	association works in conjunction with the federal flood insurance
55	55	program and what types of coverages are only available through the
56	56	flood insurance program.
57	57	Sec. 525.004. ADOPTION; DISTRIBUTION. (a) The
58	58	commissioner shall adopt the consumer bill of rights by rule.
59	59	(b) On adoption of the bill of rights, the department and
60	60	the association shall cooperate in methods of distribution of the
61	61	bill of rights.
62	62	(c) The association shall include a copy of the bill of
63	63	rights with each application for initial or renewal insurance
64	64	coverage through the association.
65	65	SECTION 2. This Act takes effect immediately if it receives
66	66	a vote of two-thirds of all the members elected to each house, as
67	67	provided by Section 39, Article III, Texas Constitution. If this
68	68	Act does not receive the vote necessary for immediate effect, this
69	69	Act takes effect September 1, 2009.