By: Smithee H.B. No. 3695
A BILL TO BE ENTITLED
AN ACT
relating to the operation of the FAIR Plan Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2211.104(c), Insurance Code, is amended
to read as follows:
(c) The insurer shall compute the amount of the surcharge
under Subsection (b) as a [uniform] percentage of the premium on
each policy described by Subsection (b). The percentage must be
equal to one-third of the ratio of the amount of the participating
insurer's assessment or service fee payment to the amount of the
insurer's direct earned premiums, as reported to the department in
the insurer's financial statement for the cal
endar year preceding
the year in which the assessment or service fee payment is made so
that, over the three-year period, the aggregate of all surcharges
by the insurer under this section is at least equal to the amount of
the assessment or service fee payment.
SECTION 2. Section 2211.156 is repealed.
SECTION 3. This Act takes effect September 1, 2013.