By: Torres H.B. No. 3148
A BILL TO BE ENTITLED
AN ACT
relating to the issuance of windstorm and hail insurance policies
by the Texas Windstorm Insurance Association for property located
in certain flood zones.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2210.203, Insurance Code, is amended by
amending Subsection (a-1) and adding Subsection (a-2) to read as
follows:
(a-1) This subsection applies [only] to any [a] structure
that, on or after September 1, 2011, is constructed or is [,]
altered, remodeled, or enlarged at a cost that is 50 percent or more
of the appraised fair market value of the structure [on or after
September 1, 2009, and only for insurable property located in areas
designated by the commissioner]. Notwithstanding Subsection (a),
if all or any part of the property to be insured by the association
[which this subsection applies] is located in Zone V or another
similar zone with an additional hazard associated with storm waves,
as defined by the National Flood Insurance Program, [and if flood
insurance under that federal program is available,] the association
may not issue an insurance policy for initial or renewal coverage
unless evidence is submitted to the association that the property
to be covered under the policy is also covered by a flood insurance
policy issued under the National Flood Insurance Program. This
subsection does not apply to property for which flood insurance is
not available under the National Flood Insurance Program [is
submitted to the association].
(a-2) An agent offering or selling a Texas windstorm and
hail insurance policy [in any area designated by the commissioner
under this subsection] shall offer flood insurance coverage
required under Subsection (a-1) to a [the] prospective insured, if
that coverage is available.
SECTION 2. Section 2210.203(a-1), Insurance Code, as
amended by this Act, and Section 2210.203(a-2), Insurance Code, as
added by this Act, apply only to a Texas windstorm and hail
insurance policy delivered, issued for delivery, or renewed by the
Texas Windstorm Insurance Association on or after October 1, 2011.
A Texas windstorm and hail insurance policy delivered, issued for
delivery, or renewed by the Texas Windstorm Insurance Association
before October 1, 2011, is governed by the law in effect on the date
the policy was delivered, issued for delivery, or renewed, and the
former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.