81R6812 PB-D
By: Jackson, Mike S.B. No. 734
A BILL TO BE ENTITLED
AN ACT
relating to the board of directors of the Texas Windstorm Insurance
Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2210.102, Insurance Code, is amended by
amending Subsection (a) and adding Subsections (c) and (d) to read
as follows:
(a) The board of directors is composed of the following 11
[nine] members appointed by the commissioner:
(1) five members who represent the interests of
[representatives of different] insurers who are members of the
association[, elected by the members as provided by the plan of
operation];
(2) four public members [two public representatives]
who are nominated by the office of public insurance counsel and who,
as of the date of the appointment:
(A) reside in a catastrophe area; and
(B) are policyholders of the association; and
(3) two members who are property and casualty agents,
each of whom must:
(A) have demonstrated experience in the
association;
(B) maintain the agent's principal office, as of
the date of the appointment, in a catastrophe area; and
(C) hold a license under Chapter 4051 as a
general property and casualty agent [or a personal lines property
and casualty agent].
(c) To be eligible to serve on the board of directors as a
representative of insurers, a person must be a full-time employee
of an authorized insurer that is a member of the association.
(d) The commissioner or an employee of the department
designated by the commissioner serves as an ex officio member of the
board of directors.
SECTION 2. Section 2210.103, Insurance Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) Members of the board of directors serve three-year
staggered terms, with the terms of three or four members expiring on
the third Tuesday of March of each year.
(c) A member of the board of directors serves at the
pleasure of the commissioner. The commissioner shall appoint a
replacement for a member who leaves or is removed from the board of
directors in the manner provided by Section 2210.102.
SECTION 3. (a) The board of directors of the Texas
Windstorm Insurance Association established under Section
2210.102, Insurance Code, as that section existed before amendment
by this Act, is abolished on the 30th day after the effective date
of this Act.
(b) The commissioner of insurance shall appoint the members
of the board of directors of the Texas Windstorm Insurance
Association under Section 2210.102, Insurance Code, as amended by
this Act, for terms beginning on the 31st day after the effective
date of this Act.
(c) The term of a person who is serving as a member of the
board of directors of the Texas Windstorm Insurance Association
immediately before the abolition of that board under Subsection (a)
of this section expires on the 30th day after the effective date of
this Act. Such a person is eligible for appointment by the
commissioner of insurance to the new board of directors of the Texas
Windstorm Insurance Association under Section 2210.102, Insurance
Code, as amended by this Act.
SECTION 4. 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.