By: Bonnen of Brazoria H.B. No. 3010
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. 2210.152. CONTENTS OF PLAN OF OPERATION.
(a) The plan of operation must:
(1) provide for the efficient, economical, fair, and
nondiscriminatory administration of the association, including
that current calendar year revenue must not be used to pay losses,
including loss adjustment expenses, that were incurred in prior
years; and
(2) include:
(A) a plan for the equitable assessment of the
members of the association to defray losses and expenses;
(B) underwriting standards;
(C) procedures for accepting and ceding
reinsurance;
(D) procedures for obtaining and repaying
amounts under any financial instruments authorized under this
chapter;
(E) procedures for determining the amount of
insurance to be provided to specific risks;
(F) time limits and procedures for processing
applications for insurance; and
(G) other provisions as considered necessary by
the department to implement the purposes of this chapter.
(b) The plan of operation may provide for liability limits
for an insured structure and for the corporeal movable property
located in the structure.
(c) The plan of operation shall require the association to
use the claim settlement guidelines published by the commissioner
under Section 2210.578(f) in evaluating the extent to which a loss
to insured property is incurred as a result of wind, waves, tidal
surges, or rising waters not caused by waves or surges.
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.