86R12431 SMT-D
By: Herrero H.B. No. 3629
A BILL TO BE ENTITLED
AN ACT
relating to premium rates for policies issued by the Texas
Windstorm Insurance Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2210.204, Insurance Code, is amended by
adding Subsection (f) to read as follows:
(f) This section does not apply to a policy if a claim has
been filed for a loss covered by the policy or a preceding policy
that has not been paid or denied by the association.
SECTION 2. Section 2210.355, Insurance Code, is amended by
adding Subsection (c-1) to read as follows:
(c-1) Notwithstanding any other provision of this chapter,
rates for coverage under this chapter and the rate for an individual
risk insured under this chapter may not exceed 101 percent of the
rates for the preceding year.
SECTION 3. Subchapter H, Chapter 2210, Insurance Code, is
amended by adding Section 2210.364 to read as follows:
Sec. 2210.364. CERTAIN RATE INCREASES PROHIBITED. During
the three years following a declaration of disaster by the governor
under Chapter 418, Government Code, the association may not raise
the rates for policies issued in the area subject to the disaster
declaration.
SECTION 4. Subchapter L-1, Chapter 2210, Insurance Code, is
amended by adding Section 2210.5732 to read as follows:
Sec. 2210.5732. CERTAIN PREMIUM COLLECTIONS PROHIBITED.
The association may not collect a premium for an association policy
if a claim has been filed for a loss covered by the policy or a
preceding policy until the claim is paid or denied.
SECTION 5. Sections 2210.204(f) and 2210.5732, Insurance
Code, as added by this Act, apply only to a premium due under a
policy on or after the effective date of this Act. A premium due
under a policy filed before the effective date of this Act is
governed by the law applicable to the claim immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 6. This Act takes effect September 1, 2019.