By: Bonnen of Brazoria H.B. No. 3009
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. 2210.071. PAYMENT OF EXCESS LOSSES;
PAYMENT FROM RESERVES AND TRUST FUND. (a) If, in a calendar
[catastrophe] year, an occurrence or series of occurrences in a
catastrophe area results in insured losses, including loss
adjustment expenses, and operating expenses of the association in
excess of premium and other revenue of the association, the excess
losses, including loss adjustment expenses, and operating expenses
shall be paid as provided by this subchapter.
(b) The association shall pay losses in excess of that
calendar year's premium and other revenue of the association from
available reserves of the association and available amounts in the
catastrophe reserve trust fund.
(c) Losses not paid under Subsection (b) shall be paid from
the proceeds from public securities issued in accordance with this
subchapter and Subchapter M and, notwithstanding Subsection (a),
may be paid from the proceeds of public securities issued under
Section 2210.072(a) before an occurrence or series of occurrences
that results in insured losses.
(d) If additional losses, including loss adjustment
expenses, related to prior calendar years are recognized, the
current year's premium and other revenue must not be used to satisfy
the additional losses, including loss adjustment expenses.
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.