86R17067 SCL-D
By: Herrero H.B. No. 3633
A BILL TO BE ENTITLED
AN ACT
relating to the board of directors of the Texas Windstorm Insurance
Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2210.102(a), (c), (c-1), and (f),
Insurance Code, are amended to read as follows:
(a) The board of directors is composed of 11 [nine] members
appointed by the governor [commissioner] in accordance with this
section.
(c) Five [Three] members must, as of the date of the
appointment, reside in the first tier coastal counties. Each of the
following regions must be represented by a member residing in the
region and appointed under this subsection:
(1) the region consisting of Cameron, Kenedy, Kleberg,
and Willacy Counties;
(2) the region consisting of Aransas, Calhoun, Nueces,
Refugio, and San Patricio Counties; and
(3) the region consisting of Brazoria, Chambers,
Galveston, Jefferson, and Matagorda Counties and any part of Harris
County designated as a catastrophe area under Section 2210.005.
(c-1) One of the members appointed under Subsection (c) must
be a property and casualty agent who is licensed under this code and
is not a captive agent. Other members appointed under that
subsection:
(1) must be association policyholders nominated by the
office of public insurance counsel; and
(2) may not be property and casualty agents.
(f) Insurers who are members of the association shall
nominate, from among those members, persons to fill any vacancy in
the three board of director seats reserved for representatives of
the insurance industry. The board of directors shall solicit
nominations from the members and submit the nominations to the
governor [commissioner]. The nominee slate submitted to the
governor [commissioner] under this subsection must include at least
three more names than the number of vacancies. The governor
[commissioner] may appoint replacement insurance industry
representatives from the nominee slate.
SECTION 2. Section 2210.103, Insurance Code, is amended to
read as follows:
Sec. 2210.103. TERMS. (a) Members of the board of
directors serve two-year [three-year staggered] terms[, with the
terms of three members expiring on the third Tuesday of March of
each year].
(b) A person may serve on the board of directors for not more
than three consecutive full terms, not to exceed six [nine] years.
(c) A member of the board of directors may be removed by the
governor [commissioner] with cause stated in writing and posted on
the association's website. The governor [commissioner] shall
appoint a replacement in accordance with Section 2210.102 for a
member who leaves or is removed from the board of directors.
SECTION 3. (a) The board of directors of the Texas
Windstorm Insurance Association established under Section
2210.102, Insurance Code, as that section existed before amendment
by this Act, is abolished effective December 1, 2019.
(b) The governor shall appoint the members of the board of
directors of the Texas Windstorm Insurance Association under
Section 2210.102, Insurance Code, as amended by this Act, not later
than December 1, 2019.
(c) The term of a person who is serving as a member of the
board of directors of the Texas Windstorm Insurance Association
immediately before the abolition of that board under Subsection (a)
of this section expires on December 1, 2019. Such a person is
eligible for appointment by the governor to the new board of
directors of the Texas Windstorm Insurance Association, subject to
the requirements of Section 2210.102, Insurance Code, as amended by
this Act.
SECTION 4. This Act takes effect September 1, 2019.