| 1 | 1 | | 86R12431 SMT-D |
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| 2 | 2 | | By: Herrero H.B. No. 3629 |
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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 premium rates for policies issued by 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. Section 2210.204, Insurance Code, is amended by |
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| 11 | 11 | | adding Subsection (f) to read as follows: |
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| 12 | 12 | | (f) This section does not apply to a policy if a claim has |
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| 13 | 13 | | been filed for a loss covered by the policy or a preceding policy |
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| 14 | 14 | | that has not been paid or denied by the association. |
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| 15 | 15 | | SECTION 2. Section 2210.355, Insurance Code, is amended by |
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| 16 | 16 | | adding Subsection (c-1) to read as follows: |
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| 17 | 17 | | (c-1) Notwithstanding any other provision of this chapter, |
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| 18 | 18 | | rates for coverage under this chapter and the rate for an individual |
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| 19 | 19 | | risk insured under this chapter may not exceed 101 percent of the |
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| 20 | 20 | | rates for the preceding year. |
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| 21 | 21 | | SECTION 3. Subchapter H, Chapter 2210, Insurance Code, is |
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| 22 | 22 | | amended by adding Section 2210.364 to read as follows: |
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| 23 | 23 | | Sec. 2210.364. CERTAIN RATE INCREASES PROHIBITED. During |
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| 24 | 24 | | the three years following a declaration of disaster by the governor |
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| 25 | 25 | | under Chapter 418, Government Code, the association may not raise |
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| 26 | 26 | | the rates for policies issued in the area subject to the disaster |
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| 27 | 27 | | declaration. |
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| 28 | 28 | | SECTION 4. Subchapter L-1, Chapter 2210, Insurance Code, is |
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| 29 | 29 | | amended by adding Section 2210.5732 to read as follows: |
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| 30 | 30 | | Sec. 2210.5732. CERTAIN PREMIUM COLLECTIONS PROHIBITED. |
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| 31 | 31 | | The association may not collect a premium for an association policy |
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| 32 | 32 | | if a claim has been filed for a loss covered by the policy or a |
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| 33 | 33 | | preceding policy until the claim is paid or denied. |
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| 34 | 34 | | SECTION 5. Sections 2210.204(f) and 2210.5732, Insurance |
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| 35 | 35 | | Code, as added by this Act, apply only to a premium due under a |
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| 36 | 36 | | policy on or after the effective date of this Act. A premium due |
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| 37 | 37 | | under a policy filed before the effective date of this Act is |
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| 38 | 38 | | governed by the law applicable to the claim immediately before the |
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| 39 | 39 | | effective date of this Act, and that law is continued in effect for |
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| 40 | 40 | | that purpose. |
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| 41 | 41 | | SECTION 6. This Act takes effect September 1, 2019. |
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