H.R. No. 218
R E S O L U T I O N
BE IT RESOLVED by the House of Representatives of the State of
Texas, 82nd Legislature, 1st Called Session, 2011, That House Rule
13, Section 9(a), be suspended in part as provided by House Rule 13,
Section 9(f), to enable the conference committee appointed to
resolve the differences on House Bill 3 (the operation of the Texas
Windstorm Insurance Association, the resolution of certain
disputes concerning claims made to that association, and the
issuance of windstorm and hail insurance policies in the private
insurance market by certain insurers; providing penalties) to
consider and take action on the following matters:
(1) House Rule 13, Sections 9(a)(1) and (3), are suspended
to permit the committee to change and add text on a matter which is
not in disagreement in added Section 2210.260(d), Insurance Code,
to read as follows:
(d) Except as provided by Sections 2210.251(d), (e), and
(f), a person who has an insurable interest in a residential
structure that is insured by the association as of August 31, 2012,
but for which the person has not obtained a certificate of
compliance under Section 2210.251(g), must obtain an alternative
certification under this section before the association, on or
after August 31, 2013, may renew coverage for the structure.
Explanation: The change and addition of text are necessary
to clarify the structures to which Section 2210.260(d), Insurance
Code, does not apply and to change the date on which compliance with
that section becomes mandatory before the Texas Windstorm Insurance
Association may renew coverage for an insured structure.
(2) House Rule 13, Section 9(a)(2), is suspended to permit
the committee to omit text adding Section 2210.502(e), Insurance
Code, by striking the section of the bill that added that
subsection.
Explanation: The omission of the text is necessary to avoid
statutorily establishing a maximum liability limit for windstorm
and hail insurance policies issued by the Texas Windstorm Insurance
Association.
(3) House Rule 13, Section 9(a)(4), is suspended to permit
the committee to add text on a matter that is not included in either
the house or senate version of the bill in added Section
2210.573(d), Insurance Code, to read as follows:
(d) Unless the applicable 60-day period described by this
subsection is extended by the commissioner under Section 2210.581,
not later than the later of the 60th day after the date the
association receives a claim or the 60th day after the date the
association receives information requested under Subsection (b),
the association shall provide the claimant, in writing,
notification that:
(1) the association has accepted coverage for the
claim in full;
(2) the association has accepted coverage for the
claim in part and has denied coverage for the claim in part; or
(3) the association has denied coverage for the claim
in full.
Explanation: The addition of the text is necessary to ensure
that any commissioner extension of the 60-day period described by
Section 2210.573(d) is included in the 120-day aggregated total of
commissioner extensions under Section 2210.581, Insurance Code, as
proposed in the bill.
(4) House Rule 13, Section 9(a)(4), is suspended to permit
the committee to add text on a matter that is not included in either
the house or senate version of the bill in added Section
2210.575(d), Insurance Code, to read as follows:
(d) Alternative dispute resolution under this section must
be completed not later than the 60th day after the date a request
for alternative dispute resolution is made under Subsection (c).
The 60-day period described by this subsection may be extended by
the commissioner by rule in accordance with Section 2210.581 or by
the association and a claimant by mutual consent.
Explanation: The addition of the text is necessary to ensure
that any commissioner extension of the 60-day period described by
Section 2210.575(d) is included in the 120-day aggregated total of
commissioner extensions under Section 2210.581, Insurance Code, as
proposed in the bill.
(5) House Rule 13, Section 9(a)(4), is suspended to permit
the committee to add text on a matter that is not included in either
the house or senate version of the bill by adding Sections 2210.581
and 2210.582, Insurance Code, to read as follows:
Sec. 2210.581. COMMISSIONER EXTENSION OF DEADLINES. (a)
Subject to Subsection (b), the commissioner, on a showing of good
cause, may by rule extend any deadline established under this
subchapter.
(b) With reference to claims filed during a particular
catastrophe year, the extension of deadlines under Subsection (a)
may not exceed 120 days in the aggregate.
(c) For the purposes of Subsection (a), "good cause"
includes military deployment.
Sec. 2210.582. OMBUDSMAN PROGRAM. (a) The department
shall establish an ombudsman program to provide information and
educational programs to assist persons insured under this chapter
with the claim processes under this subchapter.
(b) Not later than March 1 of each year, the department
shall prepare and submit to the commissioner a budget for the
ombudsman program, including approval of all expenditures incurred
in administering and operating the program. The commissioner shall
adopt or modify and adopt the budget not later than April 1 of the
year in which the budget is submitted.
(c) Not later than May 1 of each year, the association shall
transfer to the ombudsman program money in an amount equal to the
amount of the budget adopted under Subsection (b). The ombudsman
program, not later than April 30 of each year, shall return to the
association any unexpended funds that the program received from the
association in the previous year.
(d) The department shall, not later than 60 days after the
date of a catastrophic event, prepare and submit an amended budget
to the commissioner for approval and report to the commissioner the
approximate number of claimants eligible for ombudsman services.
The commissioner shall adopt rules as necessary to implement an
amended budget submitted under this section, including rules
regarding the transfer of additional money from the association to
the program.
(e) The ombudsman program may provide to persons insured
under this chapter information and educational programs through:
(1) informational materials;
(2) toll-free telephone numbers;
(3) public meetings;
(4) outreach centers;
(5) the Internet; and
(6) other reasonable means.
(f) The ombudsman program is administratively attached to
the department. The department shall provide the staff, services,
and facilities necessary for the ombudsman program to operate,
including:
(1) administrative assistance and service, including
budget planning and purchasing;
(2) personnel services;
(3) office space; and
(4) computer equipment and support.
(g) The ombudsman program shall prepare and make available
to each person insured under this chapter information describing
the functions of the ombudsman program.
(h) The association, in the manner prescribed by the
commissioner by rule, shall notify each person insured under this
chapter concerning the operation of the ombudsman program.
(i) The commissioner may adopt rules as necessary to
implement this section.
Explanation: The addition of Section 2210.581, Insurance
Code, is necessary to grant the commissioner of insurance limited
authority to extend by rule any deadline under Subchapter L-1,
Chapter 2210, Insurance Code, as proposed in the bill. The addition
of Section 2210.582, Insurance Code, is necessary to establish an
ombudsman program to provide information and educational programs
to persons insured under Chapter 2210, Insurance Code, to assist
those persons with the claims processes established under
Subchapter L-1, Chapter 2210, Insurance Code, as proposed in the
bill.
(6) House Rule 13, Section 9(a)(2), is suspended to permit
the committee to omit text that is not in disagreement in amended
Section 2210.613(c)(1)(E), Insurance Code, so that Subsection (c)
reads as follows:
(c) The premium surcharge under Subsection (b) shall be
assessed on all policyholders of policies that cover [who reside or
have operations in, or whose] insured property that is located in a
catastrophe area, including automobiles principally garaged in a
catastrophe area. The premium surcharge shall be assessed on [for]
each Texas windstorm and hail insurance policy and each property
and casualty insurance policy, including an automobile insurance
policy, issued for automobiles and other property located in the
catastrophe area. A premium surcharge under Subsection (b) applies
to:
(1) all policies written under the following lines of
insurance:
(A) fire and allied lines;
(B) farm and ranch owners;
(C) residential property insurance;
(D) private passenger automobile liability and
physical damage insurance; and
(E) commercial automobile liability and physical
damage insurance; and
(2) the property insurance portion of a commercial
multiple peril insurance policy [that provide coverage on any
premises, locations, operations, or property located in the area
described by this subsection for all property and casualty lines of
insurance, other than federal flood insurance, workers'
compensation insurance, accident and health insurance, and medical
malpractice insurance].
Explanation: The omission of the text is necessary to
clarify the lines of commercial automobile insurance to which a
premium surcharge under Section 2210.613, Insurance Code, applies.
(7) House Rule 13, Section 9(a)(1), is suspended to permit
the committee to change text on a matter which is not in
disagreement in proposed SECTION 60(a) of the bill to read as
follows:
(a) A legislative interim study committee shall conduct a
study of alternative ways to provide insurance to the seacoast
territory of this state, including through a quasi-governmental
entity.
Explanation: The addition of the text is necessary to allow
the legislative interim study committee established under SECTION
60 of the bill to study a broader range of alternative ways in which
windstorm and hail insurance may be provided in the seacoast
territory of this state.
(8) House Rule 13, Section 9(a)(1), is suspended to permit
the committee to change text on a matter which is not in
disagreement in proposed SECTION 60(d)(1) of the bill so that
Subsection (d) reads as follows:
(d) The committee shall:
(1) examine alternative ways to provide insurance to
the seacoast territory of this state, including through a
quasi-governmental entity or by providing insurance coverage
through a system or program in which insurers in this state provide
insurance in the seacoast territory of this state in proportion to
the percentage of insurance coverage provided in geographic areas
of this state other than the seacoast territory;
(2) study the residual markets for windstorm and hail
insurance in other states to determine if those markets operate
more efficiently and effectively than the residual market for
windstorm and hail insurance coverage in this state;
(3) study windstorm-related building codes and
mitigation strategies to determine which codes or strategies are
most effective;
(4) recommend:
(A) the appropriate scope of authority and
responsibility for the entity to provide insurance to the seacoast
territory of this state;
(B) an organizational structure to exercise
authority and responsibility over the provision of insurance to the
seacoast territory of this state;
(C) a timetable for implementation; and
(D) specific amendments to state laws and rules
that are necessary to implement the committee's recommendations
under this subdivision; and
(5) estimate funding requirements to implement the
recommendations.
Explanation: The addition of the text is necessary to allow
the legislative interim study committee established under SECTION
60 of the bill to study a broader range of alternative ways in which
windstorm and hail insurance may be provided in the seacoast
territory of this state.
Smithee
______________________________
Speaker of the House
I certify that H.R. No. 218 was adopted by the House on June
28, 2011, by the following vote: Yeas 127, Nays 15, 2 present, not
voting.
______________________________
Chief Clerk of the House