82R356 TJS-D
By: Legler H.J.R. No. 26
A JOINT RESOLUTION
proposing a constitutional amendment relating to the use of the
assets of certain associations established by the legislature of
this state for the purpose of providing certain insurance coverage.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article XVI, Texas Constitution, is amended by
adding Section 75 to read as follows:
Sec. 75. (a) In this section, "association" means an
association established by the legislature of this state for the
purpose of providing adequate windstorm, hail, and fire insurance
in designated portions of this state. The term includes the Texas
Windstorm Insurance Association established under Chapter 2210,
Insurance Code, or any successor association to that association.
(b) Except as provided by this section, the legislature may
not enact a law appropriating or diverting any part of the assets of
an association to any purpose other than to:
(1) satisfy, wholly or partly, the liability of the
association on claims made on policies written by the association;
(2) make investments authorized under applicable law;
(3) pay reasonable and necessary administrative
expenses incurred in connection with the operation of the
association and the processing of claims against the association;
or
(4) make remittance under the laws of this state to be
used by this state to:
(A) pay claims made on policies written by the
association;
(B) purchase reinsurance covering losses under
those policies; or
(C) prepare for or mitigate the effects of
catastrophic natural events.
(c) On dissolution of an association, all assets of the
association revert to this state.
SECTION 2. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 8, 2011.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment relating to the use of
the assets of certain associations established by the legislature
of this state for the purpose of providing certain insurance
coverage."