By: Taylor S.B. No. 1702
A BILL TO BE ENTITLED
AN ACT
relating to residential property insured by the Texas Windstorm
Insurance Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (f), Section 2210.251, Insurance
Code, is amended to read as follows:
(f) Notwithstanding any other provision of this section,
insurance coverage for a residential structure [insured by the
association as of September 1, 2009,] may be obtained or continued
[continue coverage] through the association subject to the
inspection requirements imposed under Section 2210.258, if
applicable.
SECTION 2. Section 2210.258, Insurance Code, is amended to
read as follows:
Sec. 2210.258. [MANDATORY] COMPLIANCE WITH BUILDING CODES;
ELIGIBILITY. (a) Except as provided by Subsection (c) and
notwithstanding [Notwithstanding] any other provision of this
chapter, to be eligible for insurance through the association, all
construction, alteration, remodeling, enlargement, and repair of,
or addition to, any structure located in the catastrophe area that
is begun on or after the effective date of Sections 5 through 49,
H.B. No. 4409, Acts of the 81st Legislature, Regular Session, 2009,
must be performed in compliance with the applicable building code
standards, as set forth in the plan of operation.
(b) Except as provided by Subsection (c), the [The]
association may not insure a structure described by Subsection (a)
until:
(1) the structure has been inspected for compliance
with the plan of operation in accordance with Section 2210.251(a);
and
(2) a certificate of compliance has been issued for
the structure in accordance with Section 2210.251(g).
(c) The association may insure a residential structure
constructed, altered, remodeled, enlarged, repaired, or added to on
or after June 19, 2009, that is not in compliance with the
applicable building code standards, as set forth in the plan of
operation, provided that the structure had been insured on or after
that date by an insurer in the private market who canceled or
nonrenewed the insurance coverage of the structure before September
1, 2013, and no construction, alteration, remodeling, enlargement,
or repair of or addition to the structure occurs after cancellation
or nonrenewal of the coverage and before submission of an
application for coverage through the association.
SECTION 3. Subsection (a), Section 2210.259, Insurance
Code, is amended to read as follows:
(a) A new or renewal insurance policy insuring a
noncompliant residential structure under Section 2210.251(f)
[insured by the association as of September 1, 2009, under Section
2210.251(f) that had been approved for insurability under the
approval process regulations in effect on September 1, 2009,] is
subject to an annual premium surcharge in an amount equal to 15
percent of the premium for insurance coverage obtained through the
association. The surcharge under this subsection applies to each
policy issued or renewed by the association on or after the
effective date of Sections 5 through 49, H.B. No. 4409, Acts of the
81st Legislature, Regular Session, 2009, and is due on the issuance
or renewal of the policy.
SECTION 4. Section 2210.260, Insurance Code, is repealed.
SECTION 5. 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.