| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | 86R11355 JES-D | |
| 2 | 2 | By: Herrero H.B. No. 3632 | |
| 3 | 3 | ||
| 4 | 4 | ||
| 5 | 5 | A BILL TO BE ENTITLED | |
| 6 | 6 | AN ACT | |
| 7 | 7 | relating to policyholder approval for certain windstorm and hail | |
| 8 | 8 | insurance rate changes. | |
| 9 | 9 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 10 | 10 | SECTION 1. Subchapter H, Chapter 2210, Insurance Code, is | |
| 11 | 11 | amended by adding Section 2210.3591 to read as follows: | |
| 12 | 12 | Sec. 2210.3591. POLICYHOLDER APPROVAL REQUIRED FOR CERTAIN | |
| 13 | 13 | RATE CHANGES. (a) The board of directors may not approve a rate | |
| 14 | 14 | that reflects an average rate change that is more than five percent | |
| 15 | 15 | higher than the rate in effect on the date the board proposes the | |
| 16 | 16 | rate unless the proposed rate change has been approved by a majority | |
| 17 | 17 | of the policyholders of the association. | |
| 18 | 18 | (b) The commissioner shall establish the procedure by which | |
| 19 | 19 | policyholders are notified of and vote on a proposed rate change | |
| 20 | 20 | under this section. | |
| 21 | 21 | SECTION 2. Not later than January 1, 2020, the commissioner | |
| 22 | 22 | of insurance shall adopt rules necessary to implement Section | |
| 23 | 23 | 2210.3591, Insurance Code, as added by this Act. | |
| 24 | 24 | SECTION 3. The change in law made by this Act applies only | |
| 25 | 25 | to a rate approved by the board of directors of the Texas Windstorm | |
| 26 | 26 | Insurance Association on or after January 1, 2020. | |
| 27 | 27 | SECTION 4. This Act takes effect September 1, 2019. |