83R5665 MEW-D
By: Hunter H.B. No. 2351
A BILL TO BE ENTITLED
AN ACT
relating to the composition of 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 to
read as follows:
Sec. 2210.102. COMPOSITION. (a) The board of directors is
composed of 11 [nine] members appointed by the governor
[commissioner] in accordance with this section.
(b) Three [Four] members must be representatives of the
insurance industry who actively write and renew windstorm and hail
insurance in the seacoast territory.
(c) Six [Four] members must, as of the date of the
appointment, reside in the first tier coastal counties. Of the six
members appointed under this subsection:
(1) two [At least one of the members appointed under
this subsection] must be [a] property and casualty agents [agent]
who are [is] licensed under this code and are [is] not [a] captive
agents;
(2) one must be a representative of the construction
industry;
(3) one must be a coastal engineer; and
(4) two must be policyholders of the association and
not agents [agent].
(d) One member must be a representative of an area of this
state that is not located in the seacoast territory with
demonstrated expertise in insurance and actuarial principles.
(d-1) One member must be a representative of the financial
industry.
(e) All members must have demonstrated experience in
insurance, general business, [or] actuarial principles, finance,
engineering, or construction sufficient to make the success of the
association probable.
(f) Insurers who are members of the association shall
nominate, from among those members, persons to fill any vacancy in
the three [four] board of director seats reserved for
representatives of the insurance industry. The board of directors
shall solicit nominations from the members and submit the
nominations to the governor [commissioner]. The nominee slate
submitted to the governor [commissioner] under this subsection must
include at least three more names than the number of
vacancies. The governor [commissioner] shall appoint replacement
insurance industry representatives from the nominee slate.
(g) The governor [commissioner] shall appoint three persons
[one person] to serve as [a] nonvoting members [member] of the
board, each of whom must, as of the date of the appointment, be a
public official of a first tier coastal county, with each of the
following regions represented by one nonvoting member:
(1) the region consisting of Cameron, Kenedy, Kleberg,
and Willacy Counties;
(2) the region consisting of Aransas, Calhoun, Nueces,
Refugio, and San Patricio Counties; and
(3) the region consisting of Brazoria, Chambers,
Galveston, Jefferson, and Matagorda Counties [to advise the board
regarding issues relating to the inspection process. The
commissioner may give preference in an appointment under this
subsection to a person who is a qualified inspector under Section
2210.254. The nonvoting member appointed under this section must:
[(1) be an engineer licensed by, and in good standing
with, the Texas Board of Professional Engineers;
[(2) reside in a first tier coastal county; and
[(3) be knowledgeable of, and have professional
expertise in, wind-related design and construction practices in
coastal areas that are subject to high winds and hurricanes].
(h) The persons appointed under Subsection (c) must be from
different counties with each of the regions listed in Subsection
(g) represented by at least one person.
SECTION 2. (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 effective December 31, 2013.
(b) The governor 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, not later
than December 31, 2013.
(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 December 31, 2013. Such a person is
eligible for appointment by the governor to the new board of
directors of the Texas Windstorm Insurance Association, subject to
the requirements of Section 2210.102, Insurance Code, as amended by
this Act.
SECTION 3. This Act takes effect September 1, 2013.