By: Bonnen of Brazoria H.B. No. 3006
A BILL TO BE ENTITLED
AN ACT
relating to the use of assets of the Texas Windstorm Insurance
Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sec. 2210.056. USE OF ASSOCIATION ASSETS. (a)
The association's net earnings may not insure, in whole or in part,
to the benefit of a private shareholder or individual.
(b) The increase in the association's assets in any calendar
year may not be used for or diverted to any purpose other than to:
(1) satisfy, in whole or in part, the liability of the
association on claims incurred in that calendar year 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 incurred in that calendar
year against the association;
(4) satisfy, in whole or in part, the obligations of
the association incurred in connection with Subchapters B-1, J, and
M, including reinsurance, public securities, and financial
instruments; or
(5) make required 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 the association, all assets of the
association, other than assets pledged for the repayment of public
securities issued under this chapter, revert to this state.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.