81R12168 PB-D
By: Ortiz, Jr. H.B. No. 4347
A BILL TO BE ENTITLED
AN ACT
relating to adoption of a consumer bill of rights for insurance
coverage obtained through the Texas Windstorm Insurance
Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 5, Insurance Code, is amended
by adding Chapter 525 to read as follows:
CHAPTER 525. CONSUMER BILL OF RIGHTS FOR
WINDSTORM INSURANCE COVERAGE
Sec. 525.001. DEFINITIONS. In this chapter:
(1) "Association" means the Texas Windstorm Insurance
Association established under Chapter 2210.
(2) "Seacoast territory" has the meaning assigned by
Section 2210.003.
Sec. 525.002. DEVELOPMENT OF CONSUMER BILL OF RIGHTS. (a)
With the assistance of the public insurance counsel, the department
shall develop a consumer bill of rights for consumers who reside in
the seacoast territory.
(b) The department shall conduct public hearings in the
seacoast territory to allow stakeholders the opportunity to provide
information regarding items to be included in the bill of rights.
The department may also solicit information from stakeholders
through:
(1) the department's Internet website; and
(2) the toll-free telephone number maintained under
Section 521.051.
Sec. 525.003. CONTENTS. (a) At a minimum, the consumer bill
of rights adopted under this chapter must provide consumer
information regarding windstorm and hail insurance for structures
located in designated catastrophe areas in the seacoast territory.
(b) The bill of rights must describe the general operation
of the Texas Windstorm Insurance Association as a pool of all
property and casualty insurance companies authorized to write
coverage in this state, and the association's function as the
provider of last resort when coverage is not available in the
voluntary insurance market.
(c) The bill of rights must explain, in plain language:
(1) the types of insurance coverage available through
the association;
(2) what the insurance available through the
association does not cover;
(3) the requirements for obtaining association
coverage, including how structures are certified as insurable
against windstorm and hail losses; and
(4) general inspection requirements, including the
effects of new construction, alterations, repairs, roofing and
reroofing, and additions.
(d) The bill of rights must explain how coverage through the
association works in conjunction with the federal flood insurance
program and what types of coverages are only available through the
flood insurance program.
Sec. 525.004. ADOPTION; DISTRIBUTION. (a) The
commissioner shall adopt the consumer bill of rights by rule.
(b) On adoption of the bill of rights, the department and
the association shall cooperate in methods of distribution of the
bill of rights.
(c) The association shall include a copy of the bill of
rights with each application for initial or renewal insurance
coverage through the association.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.