86R12953 SMT-D
By: Middleton H.B. No. 3038
A BILL TO BE ENTITLED
AN ACT
relating to reinsurance for catastrophic losses provided to the
Texas Windstorm Insurance Association by member insurers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter J, Chapter 2210, Insurance Code, is
amended by adding Section 2210.4522 to read as follows:
Sec. 2210.4522. REINSURANCE REQUIRED. (a) Notwithstanding
any other provision of this chapter, a member insurer shall provide
to the association reinsurance in lieu of reinsurance purchased
under Section 2210.453 at no cost to the association. The
proportion of the losses that exceed the attachment point for the
provided reinsurance is calculated in the manner used to determine
each insurer's participation in the association for the year under
Section 2210.052.
(b) A member insurer may purchase reinsurance to cover the
proportion of losses for which the insurer is responsible under
Subsection (a).
SECTION 2. The Texas Windstorm Insurance Association shall
amend the association's plan of operation to conform to the changes
in law made by this Act not later than the 60th day after the
effective date of this Act.
SECTION 3. This Act takes effect September 1, 2019.