| 1 | 1 | | 85R7473 SMT-D |
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| 2 | 2 | | By: Creighton S.B. No. 1283 |
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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 reciprocity requirements for nonresident insurance |
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| 8 | 8 | | agents to offer or sell insurance policies issued by the Texas |
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| 9 | 9 | | Windstorm Insurance Association. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 2210.152(a), Insurance Code, is amended |
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| 12 | 12 | | to read as follows: |
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| 13 | 13 | | (a) The plan of operation must: |
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| 14 | 14 | | (1) provide for the efficient, economical, fair, and |
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| 15 | 15 | | nondiscriminatory administration of the association; and |
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| 16 | 16 | | (2) include: |
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| 17 | 17 | | (A) a plan for the equitable assessment of the |
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| 18 | 18 | | members of the association to defray losses and expenses; |
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| 19 | 19 | | (B) underwriting standards; |
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| 20 | 20 | | (C) procedures for accepting and ceding |
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| 21 | 21 | | reinsurance; |
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| 22 | 22 | | (D) procedures for obtaining and repaying |
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| 23 | 23 | | amounts under any financial instruments authorized under this |
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| 24 | 24 | | chapter; |
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| 25 | 25 | | (E) procedures for determining the amount of |
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| 26 | 26 | | insurance to be provided to specific risks; |
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| 27 | 27 | | (F) time limits and procedures for processing |
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| 28 | 28 | | applications for insurance; |
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| 29 | 29 | | (G) a requirement that a nonresident agent |
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| 30 | 30 | | licensed under Section 4056.052 may not offer or sell a Texas |
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| 31 | 31 | | windstorm and hail insurance policy under this chapter unless the |
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| 32 | 32 | | nonresident agent's state of residence authorizes a resident agent |
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| 33 | 33 | | licensed in this state to act in the nonresident agent's state as an |
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| 34 | 34 | | agent for that state's residual insurer of last resort for |
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| 35 | 35 | | windstorm and hail insurance; and |
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| 36 | 36 | | (H) [(G)] other provisions as considered |
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| 37 | 37 | | necessary by the department to implement the purposes of this |
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| 38 | 38 | | chapter. |
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| 39 | 39 | | SECTION 2. This Act takes effect January 1, 2018. |
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