By: Bonnen of Brazoria H.B. No. 3011
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. 2210.452. ESTABLISHMENT AND USE OF TRUST
FUND. (a) The commissioner shall adopt rules under which the
association makes payments to the catastrophe reserve trust fund.
The trust fund may be used only to fund the obligations of the
trust fund under Subchapter B-1.
(b) All money, including investment income, deposited in
the trust fund constitutes state funds until disbursed as provided
by this chapter and commissioner rules. The comptroller shall hold
the money outside the state treasury on behalf of, and with legal
title in, the department. The department shall keep and maintain
the trust fund in accordance with this chapter and commissioner
rules. The comptroller, as custodian of the trust fund, shall
administer the trust fund strictly and solely as provided by this
chapter and commissioner rules.
(c) At the end of each calendar year or policy year, the
association shall use the calendar year net gain from operations of
the association, including all premium and other revenue of the
association in excess of incurred losses, including loss adjustment
expenses, operating expenses, public security obligations, and
public security administrative expenses incurred in that calendar
year, to make payments to the trust fund, to procure reinsurance, or
to make payments to the trust fund and to procure reinsurance.
(d) The commissioner by rule shall establish the procedure
relating to the disbursement of money from the trust fund to
policyholders in the event of an occurrence or series of
occurrences within a catastrophe area that results in a
disbursement under Subchapter B-1.
(e) The trust fund may be terminated only by law. On
termination of the trust fund, all assets of the trust fund revert
to the state to provide funding for the mitigation and preparedness
plan established under Section 2210.454.
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.