Texas 2019 - 86th Regular

Texas House Bill HB3074 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R14231 PMO-D
2	2	By: King of Hemphill H.B. No. 3074
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the coverage of damage from tornadoes and wildfires by
8	8	the Texas Windstorm Insurance Association.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2210.001, Insurance Code, is amended to
11	11	read as follows:
12	12	Sec. 2210.001. PURPOSE. The primary purpose of the Texas
13	13	Windstorm Insurance Association is the provision of an adequate
14	14	market for windstorm and hail insurance in the seacoast territory
15	15	of this state and tornado insurance and wildfire insurance
16	16	statewide. The legislature finds that the provision of adequate
17	17	windstorm and hail insurance, tornado insurance, and wildfire
18	18	insurance is necessary to the economic welfare of this state, and
19	19	without that insurance, the orderly growth and development of this
20	20	state would be severely impeded. This chapter provides a method by
21	21	which adequate windstorm and hail insurance may be obtained in
22	22	certain designated portions of the seacoast territory of this state
23	23	and tornado insurance and wildfire insurance may be obtained
24	24	statewide. The association is intended to serve as a residual
25	25	insurer of last resort for windstorm and hail insurance in the
26	26	seacoast territory and tornado insurance and wildfire insurance
27	27	statewide. The association shall:
28	28	(1) function in such a manner as to not be a direct
29	29	competitor in the private market; and
30	30	(2) provide windstorm and hail insurance coverage,
31	31	tornado insurance coverage, and wildfire insurance coverage to
32	32	those who are unable to obtain [that] coverage in the private
33	33	market.
34	34	SECTION 2. Section 2210.003, Insurance Code, is amended by
35	35	amending Subdivision (6) and adding Subdivisions (14), (15), and
36	36	(16) to read as follows:
37	37	(6) "Insurance" means:
38	38	(A) Texas windstorm and hail insurance;
39	39	(B) tornado insurance; and
40	40	(C) wildfire insurance.
41	41	(14) "Tornado insurance" means insurance against:
42	42	(A) direct loss to insurable property incurred as
43	43	a result of a tornado, as those terms are defined and limited in
44	44	policies and forms approved by the department; and
45	45	(B) indirect losses resulting from the direct
46	46	loss.
47	47	(15) "Wildfire" means an uncontrolled blaze fueled by
48	48	weather, wind, and dry underbrush, trees, grasses, and other
49	49	flammable material.
50	50	(16) "Wildfire insurance" means insurance against:
51	51	(A) direct loss to insurable property incurred as
52	52	a result of wildfire, as those terms are defined and limited in
53	53	policies and forms approved by the department; and
54	54	(B) indirect losses resulting from the direct
55	55	loss.
56	56	SECTION 3. Sections 2210.004(a), (b), (c), and (d),
57	57	Insurance Code, are amended to read as follows:
58	58	(a) Except as provided by Subsection (h), for purposes of
59	59	this chapter and subject to this section, "insurable property"
60	60	means immovable property at a fixed location in a catastrophe area
61	61	or corporeal movable property located in that immovable property,
62	62	as designated in the plan of operation, that is determined by the
63	63	association according to the criteria specified in the plan of
64	64	operation to be in an insurable condition against windstorm and
65	65	hail, tornado, and wildfire, as determined by normal underwriting
66	66	standards. The term includes property described by Section
67	67	2210.209.
68	68	(b) A structure located in a catastrophe area, construction
69	69	of which began on or after the 30th day after the date of
70	70	publication of the plan of operation, that is not built in
71	71	compliance with building specifications set forth in the plan of
72	72	operation or continued in compliance with those specifications,
73	73	does not constitute an insurable risk for purposes of windstorm and
74	74	hail insurance, tornado insurance, or wildfire insurance except as
75	75	otherwise provided by this chapter.
76	76	(c) A structure, or an addition to a structure, that is
77	77	constructed in conformity with plans and specifications that comply
78	78	with the specifications set forth in the plan of operation at the
79	79	time construction begins may not be declared ineligible for
80	80	windstorm and hail insurance, tornado insurance, or wildfire
81	81	insurance as a result of subsequent changes in the building
82	82	specifications set forth in the plan of operation.
83	83	(d) Except as otherwise provided by this section, if repair
84	84	of damage to a structure involves replacement of items covered in
85	85	the building specifications set forth in the plan of operation, the
86	86	repairs must be completed in a manner that complies with those
87	87	specifications for the structure to continue to be insurable
88	88	property for windstorm and hail insurance, tornado insurance, and
89	89	wildfire insurance.
90	90	SECTION 4. Sections 2210.005(a) and (c), Insurance Code,
91	91	are amended to read as follows:
92	92	(a) After at least 10 days' notice and a hearing, the
93	93	commissioner may designate, with respect to windstorm and hail
94	94	insurance, an area of the seacoast territory of this state as a
95	95	catastrophe area or, with respect to tornado insurance and wildfire
96	96	insurance, any area of this state as a catastrophe area if the
97	97	commissioner determines, unless such a determination results in an
98	98	adverse impact to the exposure of the association, that windstorm
99	99	and hail insurance, tornado insurance, or wildfire insurance is not
100	100	reasonably available to a substantial number of the owners of
101	101	insurable property located in the area [that territory] because the
102	102	area [territory] is subject to unusually frequent and severe damage
103	103	resulting from windstorms, [or] hailstorms, tornadoes, or
104	104	wildfires.
105	105	(c) If the association determines that windstorm and hail
106	106	insurance, tornado insurance, or wildfire insurance is no longer
107	107	reasonably unavailable to a substantial number of owners of
108	108	insurable property in a territory designated as a catastrophe area,
109	109	the association may request in writing that the commissioner revoke
110	110	the designation. After at least 10 days' notice and a hearing, but
111	111	not later than the 30th day after the date of the hearing, the
112	112	commissioner shall:
113	113	(1) approve the request and revoke the designation; or
114	114	(2) reject the request.
115	115	SECTION 5. Section 2210.015(a), Insurance Code, is amended
116	116	to read as follows:
117	117	(a) Each biennium, the department shall conduct a study of
118	118	market incentives to promote participation in the voluntary
119	119	windstorm and hail insurance, tornado insurance, and wildfire
120	120	insurance markets [market] in [the seacoast territory of] this
121	121	state. The study must address as possible incentives the mandatory
122	122	or voluntary issuance of windstorm and hail insurance, tornado
123	123	insurance, and wildfire insurance in conjunction with the issuance
124	124	of a homeowners policy [in the seacoast territory].
125	125	SECTION 6. Section 2210.053(b), Insurance Code, is amended
126	126	to read as follows:
127	127	(b) The department may develop programs to improve the
128	128	efficient operation of the association, including a program for
129	129	approving policy forms under Section 2301.010 and a program
130	130	designed to create incentives for insurers to write windstorm and
131	131	hail insurance, tornado insurance, and wildfire insurance
132	132	voluntarily to cover property located in a catastrophe area,
133	133	especially property located on the barrier islands of this state.
134	134	SECTION 7. Section 2210.102(b), Insurance Code, is amended
135	135	to read as follows:
136	136	(b) Three members must be representatives of the insurance
137	137	industry who actively write and renew tornado insurance or wildfire
138	138	insurance or write and renew windstorm and hail insurance in the
139	139	first tier coastal counties.
140	140	SECTION 8. Section 2210.151, Insurance Code, is amended to
141	141	read as follows:
142	142	Sec. 2210.151. ADOPTION OF PLAN OF OPERATION. With the
143	143	advice of the board of directors, the commissioner by rule shall
144	144	adopt the plan of operation to provide Texas windstorm and hail
145	145	insurance, tornado insurance, and wildfire insurance in a
146	146	catastrophe area.
147	147	SECTION 9. Section 2210.152(a), Insurance Code, is amended
148	148	to read as follows:
149	149	(a) The plan of operation must:
150	150	(1) provide for the efficient, economical, fair, and
151	151	nondiscriminatory administration of the association; and
152	152	(2) include:
153	153	(A) a plan for the equitable assessment of the
154	154	members of the association to defray losses and expenses;
155	155	(B) underwriting standards;
156	156	(C) procedures for accepting and ceding
157	157	reinsurance;
158	158	(D) procedures for obtaining and repaying
159	159	amounts under any financial instruments authorized under this
160	160	chapter;
161	161	(E) procedures for determining the amount of
162	162	insurance to be provided to specific risks;
163	163	(F) time limits and procedures for processing
164	164	applications for insurance;
165	165	(G) a requirement that a nonresident agent
166	166	licensed under Section 4056.052 may not offer or sell a Texas
167	167	windstorm and hail insurance policy, tornado insurance policy, or
168	168	wildfire insurance policy under this chapter unless the nonresident
169	169	agent's state of residence authorizes a resident agent licensed in
170	170	this state to act in the nonresident agent's state as an agent for
171	171	that state's residual insurer of last resort for windstorm and hail
172	172	insurance, tornado insurance, or wildfire insurance; and
173	173	(H) other provisions as considered necessary by
174	174	the department to implement the purposes of this chapter.
175	175	SECTION 10. Sections 2210.202(a) and (b), Insurance Code,
176	176	are amended to read as follows:
177	177	(a) A person who has an insurable interest in insurable
178	178	property may apply to the association for insurance coverage
179	179	provided under the plan of operation and an inspection of the
180	180	property, subject to any rules established by the board of
181	181	directors and approved by the commissioner. The association shall
182	182	make insurance available to each applicant in the catastrophe area
183	183	whose property is insurable property but who, after diligent
184	184	efforts, is unable to obtain property insurance through the
185	185	voluntary market, as evidenced by one declination from an insurer
186	186	authorized to engage in the business of, and writing, property
187	187	insurance providing windstorm and hail coverage in the first tier
188	188	coastal counties or tornado insurance or wildfire insurance in this
189	189	state. For purposes of this section, "declination" has the meaning
190	190	assigned by the plan of operation and shall include a refusal to
191	191	offer coverage for the perils of windstorm and hail, tornado, or
192	192	wildfire and the inability to obtain substantially equivalent
193	193	insurance coverage for the perils of windstorm and hail, tornado,
194	194	or wildfire. Notwithstanding Section 2210.203(c), evidence of one
195	195	declination every three calendar years is also required with an
196	196	application for renewal of an association policy.
197	197	(b) A property and casualty agent must submit an application
198	198	for initial insurance coverage on behalf of the applicant on forms
199	199	prescribed by the association. The association shall develop a
200	200	simplified renewal process that allows for the acceptance of an
201	201	application for renewal coverage, and payment of premiums, from a
202	202	property and casualty agent or a person insured under this chapter.
203	203	An application for initial or renewal coverage must contain:
204	204	(1) a statement as to whether the applicant has
205	205	submitted or will submit the premium in full from personal funds or,
206	206	if not, to whom a balance is or will be due; and
207	207	(2) a statement that the agent acting on behalf of the
208	208	applicant possesses proof of the declination described by
209	209	Subsection (a) and, with respect to windstorm and hail insurance,
210	210	proof of flood insurance coverage or unavailability of that
211	211	coverage as described by Section 2210.203(a-1).
212	212	SECTION 11. Section 2210.203(a-1), Insurance Code, is
213	213	amended to read as follows:
214	214	(a-1) This subsection applies only to windstorm and hail
215	215	insurance and a structure constructed, altered, remodeled, or
216	216	enlarged on or after September 1, 2009, and only for insurable
217	217	property located in areas designated by the commissioner.
218	218	Notwithstanding Subsection (a), if all or any part of the property
219	219	to which this subsection applies is located in Zone V or another
220	220	similar zone with an additional hazard associated with storm waves,
221	221	as defined by the National Flood Insurance Program, and if flood
222	222	insurance under that federal program is available, the association
223	223	may not issue an insurance policy for initial or renewal coverage
224	224	unless evidence that the property is covered by a flood insurance
225	225	policy is submitted to the association. An agent offering or
226	226	selling a Texas windstorm and hail insurance policy in any area
227	227	designated by the commissioner under this subsection shall offer
228	228	flood insurance coverage to the prospective insured, if that
229	229	coverage is available.
230	230	SECTION 12. Section 2210.205(a), Insurance Code, is amended
231	231	to read as follows:
232	232	(a) A windstorm and hail insurance policy, tornado
233	233	insurance policy, or wildfire insurance policy issued by the
234	234	association must:
235	235	(1) require an insured to file a claim under the policy
236	236	not later than the first anniversary of the date on which the damage
237	237	to property that is the basis of the claim occurs; and
238	238	(2) contain, in boldface type, a conspicuous notice
239	239	concerning the resolution of disputes under the policy, including:
240	240	(A) the processes and deadlines for appraisal
241	241	under Section 2210.574 and alternative dispute resolution under
242	242	Section 2210.575;
243	243	(B) the binding effect of appraisal under Section
244	244	2210.574; and
245	245	(C) the necessity of complying with the
246	246	requirements of Subchapter L-1 to seek relief, including judicial
247	247	relief.
248	248	SECTION 13. The heading to Section 2210.207, Insurance
249	249	Code, is amended to read as follows:
250	250	Sec. 2210.207. WINDSTORM AND HAIL INSURANCE, TORNADO
251	251	INSURANCE, AND WILDFIRE INSURANCE: REPLACEMENT COST COVERAGE.
252	252	SECTION 14. Sections 2210.207(b) and (e), Insurance Code,
253	253	are amended to read as follows:
254	254	(b) Subject to any applicable deductibles and the limits for
255	255	the coverage purchased by the insured, a windstorm and hail
256	256	insurance policy, tornado insurance policy, or wildfire insurance
257	257	policy issued by the association may include replacement cost
258	258	coverage for one- and two-family dwellings, including
259	259	outbuildings, as provided under the dwelling extension coverage in
260	260	the policy.
261	261	(e) Notwithstanding this chapter or any other law, the
262	262	commissioner, after notice and hearing, may adopt rules to:
263	263	(1) authorize the association to provide actual cash
264	264	value coverage instead of replacement cost coverage on the roof
265	265	covering of a building insured by the association; and
266	266	(2) establish:
267	267	(A) the conditions under which the association
268	268	may provide that actual cash value coverage;
269	269	(B) the appropriate premium reductions when
270	270	coverage for the roof covering is provided on an actual cash value
271	271	basis; and
272	272	(C) the disclosure that must be provided to the
273	273	policyholder, prominently displayed on the face of the windstorm
274	274	and hail insurance policy, tornado insurance policy, or wildfire
275	275	insurance policy.
276	276	SECTION 15. The heading to Section 2210.208, Insurance
277	277	Code, is amended to read as follows:
278	278	Sec. 2210.208. WINDSTORM AND HAIL INSURANCE, TORNADO
279	279	INSURANCE, AND WILDFIRE INSURANCE: COVERAGE FOR CERTAIN INDIRECT
280	280	LOSSES.
281	281	SECTION 16. Sections 2210.208(a) and (b), Insurance Code,
282	282	are amended to read as follows:
283	283	(a) Except as provided by Subsections (e) and (f), a
284	284	windstorm and hail insurance policy, tornado insurance policy, or
285	285	wildfire insurance policy issued by the association for a dwelling,
286	286	as that term is defined by the department or a successor to the
287	287	department, must include coverage for:
288	288	(1) with respect to a windstorm and hail insurance
289	289	policy, wind-driven rain damage, regardless of whether an opening
290	290	is made by the wind;
291	291	(2) loss of use; and
292	292	(3) consequential losses.
293	293	(b) A windstorm and hail insurance policy, tornado
294	294	insurance policy, or wildfire insurance policy issued by the
295	295	association for tenant contents of a dwelling or other residential
296	296	building must include coverage for loss of use and consequential
297	297	losses.
298	298	SECTION 17. The heading to Subchapter F, Chapter 2210,
299	299	Insurance Code, is amended to read as follows:
300	300	SUBCHAPTER F. PROPERTY INSPECTIONS [FOR WINDSTORM AND HAIL
301	301	INSURANCE]
302	302	SECTION 18. Section 2210.253, Insurance Code, is amended to
303	303	read as follows:
304	304	Sec. 2210.253. INITIAL INSURER ASSESSMENT[: FIRST TIER
305	305	COASTAL COUNTY]. (a) In this section, "property insurance" means a
306	306	commercial or residential insurance policy prescribed or approved
307	307	by the department that provides coverage for windstorm and hail
308	308	damage, including a Texas windstorm and hail insurance policy, or
309	309	loss from tornado or wildfire.
310	310	(b) The department shall assess each insurer that provides
311	311	property insurance in [a first tier coastal county in] accordance
312	312	with this section.
313	313	(c) The total assessment under this section in a state
314	314	fiscal year must be in the amount estimated by the department as
315	315	necessary to cover the administrative costs of the [windstorm]
316	316	inspection program under Section 2210.251 to be incurred in [the
317	317	first tier coastal counties in] that fiscal year.
318	318	(d) The assessment must be based on each insurer's
319	319	proportionate share of the total extended coverage and other allied
320	320	lines premium received by all insurers for property insurance in
321	321	the state [first tier coastal counties] in the calendar year
322	322	preceding the year in which the assessment is made.
323	323	(e) The commissioner shall adopt rules to implement the
324	324	assessment of insurers under this section.
325	325	SECTION 19. Section 2210.2551(b), Insurance Code, is
326	326	amended to read as follows:
327	327	(b) The commissioner by rule shall establish criteria to
328	328	ensure that a person seeking appointment as a qualified inspector
329	329	under this subchapter possesses the knowledge, understanding, and
330	330	professional competence to perform [windstorm] inspections for the
331	331	issuance of a certificate of compliance under Section 2210.2515(d)
332	332	and to comply with other requirements of this chapter.
333	333	SECTION 20. Section 2210.258, Insurance Code, is amended by
334	334	adding Subsection (a-1) to read as follows:
335	335	(a-1) This section applies only to windstorm and hail
336	336	insurance.
337	337	SECTION 21. Section 2210.355(g), Insurance Code, is amended
338	338	to read as follows:
339	339	(g) A commission paid to an agent for a windstorm and hail
340	340	insurance policy, tornado insurance policy, or wildfire insurance
341	341	policy issued by the association must comply with the commission
342	342	structure approved by the commissioner under Section 2210.203(d)
343	343	and be reasonable, adequate, not unfairly discriminatory, and
344	344	nonconfiscatory.
345	345	SECTION 22. Section 2210.359(a), Insurance Code, is amended
346	346	to read as follows:
347	347	(a) Except as otherwise provided by this subsection, a rate
348	348	approved by the commissioner under this subchapter may not reflect
349	349	an average rate change that is more than 10 percent higher or lower
350	350	than the rate for commercial windstorm and hail insurance,
351	351	commercial tornado insurance, or commercial wildfire insurance or
352	352	10 percent higher or lower than the rate for noncommercial
353	353	windstorm and hail insurance, noncommercial tornado insurance, or
354	354	noncommercial wildfire insurance in effect on the date the filing
355	355	is made. The rate may not reflect a rate change for an individual
356	356	rating class that is 15 percent higher or lower than the rate for
357	357	that individual rating class in effect on the date the filing is
358	358	made. This subsection does not apply to a rate filed under Sections
359	359	2210.351(a)-(d).
360	360	SECTION 23. Section 2210.455(b), Insurance Code, is amended
361	361	to read as follows:
362	362	(b) The catastrophe plan must:
363	363	(1) describe the manner in which the association will,
364	364	during the period covered by the plan, evaluate losses and process
365	365	claims after the following windstorms affecting an area of maximum
366	366	exposure to the association:
367	367	(A) a windstorm with a four percent chance of
368	368	occurring during the period covered by the plan;
369	369	(B) a windstorm with a two percent chance of
370	370	occurring during the period covered by the plan; and
371	371	(C) a windstorm with a one percent chance of
372	372	occurring during the period covered by the plan; [and]
373	373	(2) include, if the association does not purchase
374	374	reinsurance under Section 2210.453 for the period covered by the
375	375	plan, an actuarial plan for paying losses in the event of a
376	376	catastrophe with estimated damages of $2.5 billion or more; and
377	377	(3) describe the manner in which the association will,
378	378	during the period covered by the plan, evaluate losses and process
379	379	claims after tornadoes or wildfires affecting an area of maximum
380	380	exposure to the association.
381	381	SECTION 24. Section 2210.501(a), Insurance Code, is amended
382	382	to read as follows:
383	383	(a) The board of directors shall propose the maximum
384	384	liability limits under a windstorm and hail insurance policy,
385	385	tornado insurance policy, and wildfire insurance policy issued by
386	386	the association under this chapter. The maximum liability limits
387	387	must be approved by the commissioner.
388	388	SECTION 25. Section 2210.502(b), Insurance Code, is amended
389	389	to read as follows:
390	390	(b) An adjustment to the maximum liability limits that is
391	391	approved by the commissioner applies to each windstorm and hail
392	392	insurance policy, tornado insurance policy, and wildfire insurance
393	393	policy delivered, issued for delivery, or renewed on or after
394	394	January 1 of the year following the date of the approval. The
395	395	indexing of the limits shall adjust for changes occurring on and
396	396	after January 1, 1997.
397	397	SECTION 26. Section 2210.505(a), Insurance Code, is amended
398	398	to read as follows:
399	399	(a) Notwithstanding any other law, the association may
400	400	issue a windstorm and hail insurance policy, tornado insurance
401	401	policy, or wildfire insurance policy that includes coverage for an
402	402	amount in excess of a maximum liability limit established under
403	403	Sections 2210.501-2210.504 if the association first obtains from a
404	404	reinsurer approved by the commissioner reinsurance for the full
405	405	amount of policy exposure above that limit.
406	406	SECTION 27. Section 2210.571(1), Insurance Code, is amended
407	407	to read as follows:
408	408	(1) "Association policy" means a windstorm and hail
409	409	insurance policy, tornado insurance policy, or wildfire insurance
410	410	policy issued by the association.
411	411	SECTION 28. Section 2210.601, Insurance Code, is amended to
412	412	read as follows:
413	413	Sec. 2210.601. PURPOSE. The legislature finds that
414	414	authorizing the issuance of public securities to provide a method
415	415	to raise funds to provide [windstorm and hail insurance] through
416	416	the association windstorm and hail insurance in certain designated
417	417	portions of the state and tornado insurance and wildfire insurance
418	418	statewide is for the benefit of the public and in furtherance of a
419	419	public purpose.
420	420	SECTION 29. Section 2210.6132(c), Insurance Code, is
421	421	amended to read as follows:
422	422	(c) The premium surcharge under this section shall be
423	423	assessed on all policyholders of policies that cover insured
424	424	property that is located in a catastrophe area, including
425	425	automobiles principally garaged in a catastrophe area. The premium
426	426	surcharge shall be assessed on each Texas windstorm and hail
427	427	insurance policy, each tornado insurance policy, and each wildfire
428	428	insurance policy issued by the association and each property and
429	429	casualty policy, including an automobile insurance policy, issued
430	430	for automobiles and other property located in the catastrophe area.
431	431	A premium surcharge under Subsection (b) applies to:
432	432	(1) all policies written under the following lines of
433	433	insurance:
434	434	(A) fire and allied lines;
435	435	(B) farm and ranch owners;
436	436	(C) residential property insurance;
437	437	(D) private passenger automobile liability and
438	438	physical damage insurance; and
439	439	(E) commercial automobile liability and physical
440	440	damage insurance; and
441	441	(2) the property insurance portion of a commercial
442	442	multiple peril insurance policy.
443	443	SECTION 30. Section 2210.652, Insurance Code, is amended to
444	444	read as follows:
445	445	Sec. 2210.652. COMPOSITION OF BOARD. The [windstorm
446	446	insurance legislative oversight] board is composed of eight members
447	447	as follows:
448	448	(1) four members of the senate appointed by the
449	449	lieutenant governor, including the chairperson of the Senate
450	450	Business and Commerce Committee, who shall serve as co-chairperson
451	451	of the board; and
452	452	(2) four members of the house of representatives
453	453	appointed by the speaker of the house of representatives.
454	454	SECTION 31. Section 2210.653(a), Insurance Code, is amended
455	455	to read as follows:
456	456	(a) The board shall:
457	457	(1) receive information about rules proposed by the
458	458	department relating to windstorm and hail insurance, tornado
459	459	insurance, and wildfire insurance, and may submit comments to the
460	460	commissioner on the proposed rules;
461	461	(2) monitor windstorm and hail insurance, tornado
462	462	insurance, and wildfire insurance in this state, including:
463	463	(A) the adequacy of rates;
464	464	(B) the operation of the association; and
465	465	(C) the availability of coverage; and
466	466	(3) review recommendations for legislation proposed
467	467	by the department or the association.
468	468	SECTION 32. Section 2210.654(b), Insurance Code, is amended
469	469	to read as follows:
470	470	(b) The report must include:
471	471	(1) an analysis of any problems identified; and
472	472	(2) recommendations for any legislative action
473	473	necessary to address those problems and to foster stability,
474	474	availability, and competition within the windstorm and hail
475	475	insurance, tornado insurance, and wildfire insurance industries
476	476	[industry].
477	477	SECTION 33. (a) The plan of operation adopted under
478	478	Chapter 2210, Insurance Code, as amended by this Act, must provide
479	479	that the Texas Windstorm Insurance Association issue tornado
480	480	insurance policies and wildfire insurance policies under that
481	481	chapter not later than January 1, 2020.
482	482	(b) The commissioner of insurance shall adopt rules
483	483	necessary to ensure that the Texas Windstorm Insurance Association
484	484	issue insurance policies under Chapter 2210, Insurance Code, as
485	485	amended by this Act, not later than January 1, 2020.
486	486	SECTION 34. This Act takes effect September 1, 2019.