By: Carona S.R. No. 113
SENATE RESOLUTION
BE IT RESOLVED by the Senate of the State of Texas, 82nd
Legislature, 1st Called Session, 2011, That Senate Rule 12.03 be
suspended in part as provided by Senate Rule 12.08 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) Senate Rules 12.03(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) Senate Rule 12.03(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) Senate Rule 12.03(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) Senate Rule 12.03(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) Senate Rule 12.03(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) Senate Rule 12.03(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) Senate Rule 12.03(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) Senate Rule 12.03(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.
_______________________________
President of the Senate
I hereby certify that the
above Resolution was adopted by
the Senate on June 28, 2011, by
the
_______________________________
Secretary of the Senate