| 1 | 1 | | 84R7154 SCL-D |
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| 2 | 2 | | By: Herrero H.B. No. 2408 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the composition of the board of directors of the Texas |
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| 8 | 8 | | Windstorm Insurance Association. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 2210.102(a), (c), (f), and (g), |
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| 11 | 11 | | Insurance Code, are amended to read as follows: |
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| 12 | 12 | | (a) The board of directors is composed of 11 [nine] members |
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| 13 | 13 | | appointed by the governor [commissioner] in accordance with this |
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| 14 | 14 | | section. |
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| 15 | 15 | | (c) Six [Four] members must, as of the date of the |
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| 16 | 16 | | appointment, reside in the first tier coastal counties. One [At |
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| 17 | 17 | | least one] of the members appointed under this subsection must be a |
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| 18 | 18 | | property and casualty agent who is licensed under this code and is |
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| 19 | 19 | | not a captive agent. Other members appointed under this subsection: |
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| 20 | 20 | | (1) must be association policyholders nominated by the |
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| 21 | 21 | | office of public insurance counsel; and |
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| 22 | 22 | | (2) may not be property and casualty agents. |
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| 23 | 23 | | (f) Insurers who are members of the association shall |
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| 24 | 24 | | nominate, from among those members, persons to fill any vacancy in |
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| 25 | 25 | | the four board of director seats reserved for representatives of |
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| 26 | 26 | | the insurance industry. The board of directors shall solicit |
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| 27 | 27 | | nominations from the members and submit the nominations to the |
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| 28 | 28 | | governor [commissioner]. The nominee slate submitted to the |
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| 29 | 29 | | governor [commissioner] under this subsection must include at least |
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| 30 | 30 | | three more names than the number of vacancies. The governor |
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| 31 | 31 | | [commissioner] shall appoint replacement insurance industry |
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| 32 | 32 | | representatives from the nominee slate. |
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| 33 | 33 | | (g) The governor [commissioner] shall appoint one person to |
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| 34 | 34 | | serve as a nonvoting member of the board to advise the board |
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| 35 | 35 | | regarding issues relating to the inspection process. The governor |
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| 36 | 36 | | [commissioner] may give preference in an appointment under this |
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| 37 | 37 | | subsection to a person who is a qualified inspector under Section |
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| 38 | 38 | | 2210.254. The nonvoting member appointed under this subsection |
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| 39 | 39 | | [section] must: |
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| 40 | 40 | | (1) be an engineer licensed by, and in good standing |
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| 41 | 41 | | with, the Texas Board of Professional Engineers; |
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| 42 | 42 | | (2) reside in a first tier coastal county; and |
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| 43 | 43 | | (3) be knowledgeable of, and have professional |
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| 44 | 44 | | expertise in, wind-related design and construction practices in |
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| 45 | 45 | | coastal areas that are subject to high winds and hurricanes. |
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| 46 | 46 | | SECTION 2. Sections 2210.103(a) and (c), Insurance Code, |
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| 47 | 47 | | are amended to read as follows: |
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| 48 | 48 | | (a) Members of the board of directors serve two-year |
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| 49 | 49 | | [three-year staggered] terms[, with the terms of three members |
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| 50 | 50 | | expiring on the third Tuesday of March of each year]. |
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| 51 | 51 | | (c) A member of the board of directors may be removed by the |
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| 52 | 52 | | governor [commissioner] with cause stated in writing and posted on |
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| 53 | 53 | | the association's website. The governor [commissioner] shall |
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| 54 | 54 | | appoint a replacement in the manner provided by Section 2210.102 |
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| 55 | 55 | | for a member who leaves or is removed from the board of directors. |
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| 56 | 56 | | SECTION 3. (a) The board of directors of the Texas |
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| 57 | 57 | | Windstorm Insurance Association established under Section |
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| 58 | 58 | | 2210.102, Insurance Code, as that section existed before amendment |
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| 59 | 59 | | by this Act, is abolished effective December 1, 2015. |
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| 60 | 60 | | (b) The governor shall appoint the members of the board of |
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| 61 | 61 | | directors of the Texas Windstorm Insurance Association under |
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| 62 | 62 | | Section 2210.102, Insurance Code, as amended by this Act, not later |
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| 63 | 63 | | than December 1, 2015. |
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| 64 | 64 | | (c) The term of a person who is serving as a member of the |
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| 65 | 65 | | board of directors of the Texas Windstorm Insurance Association |
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| 66 | 66 | | immediately before the abolition of that board under Subsection (a) |
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| 67 | 67 | | of this section expires on December 1, 2015. Such a person is |
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| 68 | 68 | | eligible for appointment by the governor to the new board of |
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| 69 | 69 | | directors of the Texas Windstorm Insurance Association, subject to |
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| 70 | 70 | | the requirements of Section 2210.102, Insurance Code, as amended by |
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| 71 | 71 | | this Act. |
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| 72 | 72 | | SECTION 4. This Act takes effect September 1, 2015. |
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