Texas 2019 - 86th Regular

Texas House Bill HB3960 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R28201 PMO-F
2		-	By: Hunter, Lozano, Herrero, Middleton H.B. No. 3960
3		-	Substitute the following for H.B. No. 3960:
4		-	By: Lucio III C.S.H.B. No. 3960
	1	+	86R3033 PMO-F
	2	+	By: Hunter H.B. No. 3960
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to rate filings by the Texas Windstorm Insurance
10	8		Association.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		SECTION 1. Section 2210.351(d), Insurance Code, is amended
13	11		to read as follows:
14	12		(d) The association may use a rate filed by the association
15	13		without prior commissioner approval if:
16	14		(1) the filing is made not later than the 30th day
17	15		before the date of any use or delivery for use of the rate;
18		-	(2) the filed rate does not exceed ~~102.5~~ [105] ~~percent~~
19		-	~~of the~~ rate in effect on the date on which the filing is made;
20		-	(3) the filed rate does not reflect a rate change for
21		-	an individual rating class that is ~~more~~ than ~~2.5 [10] percent higher~~
22		-	~~than the rate~~ in effect for that rating class on the date on which
23		-	~~the filing is~~ made; and
	16	+	(2) the filed rate does not exceed [105 percent of] the
	17	+	rate in effect on the date on which the filing is made;
	18	+	(3) the filed rate does not reflect a rate [change] for
	19	+	an individual rating class that is [10 percent] higher than the rate
	20	+	in effect for that rating class on the date on which the filing is
	21	+	made; and
24	22		(4) the commissioner has not disapproved the filing in
25	23		writing, advising of the reasons for the disapproval and the
26	24		criteria the association is required to meet to obtain approval.
27	25		SECTION 2. Section 2210.352(a-1), Insurance Code, is
28	26		amended to read as follows:
29	27		(a-1) The association may use a rate filed by the
30	28		association under this section without prior commissioner approval
31	29		if:
32	30		(1) the filing is made not later than the 30th day
33	31		before the date of any use or delivery for use of the rate;
34		-	(2) the filed rate does not exceed 102.5 [105] percent
35		-	of the rate used by the association in effect on the date on which
36		-	the filing is made; and
37		-	(3) the filed rate does not reflect a rate change for
38		-	an individual rating class that is more than 2.5 [10] percent higher
39		-	than the rate in effect for that rating class on the date on which
40		-	the filing is made.
41		-	SECTION 3. Chapter 2210, Insurance Code, is amended by
42		-	adding Subchapter N-1 to read as follows:
43		-	SUBCHAPTER N-1. LEGISLATIVE FUNDING AND FINANCIAL STRUCTURE
44		-	OVERSIGHT BOARD
45		-	Sec. 2210.661. DEFINITION. In this subchapter, "board"
46		-	means the windstorm insurance legislative funding and financial
47		-	structure oversight board.
48		-	Sec. 2210.662. COMPOSITION OF BOARD. The board is composed
49		-	of eight members as follows:
50		-	(1) four members of the senate appointed by the
51		-	lieutenant governor; and
52		-	(2) four members of the house of representatives
53		-	appointed by the speaker of the house of representatives.
54		-	Sec. 2210.663. POWERS AND DUTIES OF BOARD. (a) The board
55		-	shall:
56		-	(1) gather information regarding:
57		-	(A) how the association's current funding and
58		-	financial structure operate;
59		-	(B) how the catastrophic risk pools of other
60		-	states operate; and
61		-	(C) other information that the board considers
62		-	necessary to prepare the report required by Section 2210.664; and
63		-	(2) hold public meetings to hear testimony from
64		-	experts, stakeholders, and other interested parties regarding
65		-	recommendations and proposals for establishing and implementing a
66		-	sustainable funding and financial structure for the association.
67		-	(b) The board may request reports and other information as
68		-	necessary to implement this subchapter from:
69		-	(1) the department;
70		-	(2) the association; and
71		-	(3) experts, stakeholders, and other interested
72		-	parties described by Subsection (a)(2).
73		-	Sec. 2210.664. REPORT. (a) The board shall prepare a
74		-	report of the board's findings regarding the current funding and
75		-	financial structure of the association, problems with the funding
76		-	and financial structure, and recommendations for legislative
77		-	action related to the funding and financial structure and
78		-	sustainability of the association. The report must include:
79		-	(1) an analysis of the current funding and financial
80		-	structure and sustainability of the association, including the
81		-	association's reliance on debt and reinsurance; and
82		-	(2) recommendations for legislative action necessary
83		-	to:
84		-	(A) address problems with the current funding and
85		-	financial structure of the association; and
86		-	(B) foster the stability and sustainability of
87		-	the association.
88		-	(b) Not later November 15, 2020, the board shall deliver the
89		-	report prepared under Subsection (a) to:
90		-	(1) the governor;
91		-	(2) the lieutenant governor; and
92		-	(3) the speaker of the house of representatives.
93		-	Sec. 2210.665. EXPIRATION. This subchapter expires
94		-	September 1, 2021.
95		-	SECTION 4. Sections 2210.351(d) and 2210.352(a-1),
96		-	Insurance Code, as amended by this Act, apply only to a rate filed
97		-	by the Texas Windstorm Insurance Association with the Texas
98		-	Department of Insurance on or after the effective date of this Act.
99		-	A rate filed with the Texas Department of Insurance before the
100		-	effective date of this Act is governed by the law as it existed
101		-	immediately before that date, and that law is continued in effect
102		-	for that purpose.
103		-	SECTION 5. This Act takes effect December 1, 2019.
	32	+	(2) the filed rate does not exceed [105 percent of] the
	33	+	rate used by the association in effect on the date on which the
	34	+	filing is made; and
	35	+	(3) the filed rate does not reflect a rate [change] for
	36	+	an individual rating class that is [10 percent] higher than the rate
	37	+	in effect for that rating class on the date on which the filing is
	38	+	made.
	39	+	SECTION 3. The change in law made by this Act applies only
	40	+	to a rate filed by the Texas Windstorm Insurance Association with
	41	+	the Texas Department of Insurance on or after the effective date of
	42	+	this Act. A rate filed with the Texas Department of Insurance
	43	+	before the effective date of this Act is governed by the law as it
	44	+	existed immediately before that date, and that law is continued in
	45	+	effect for that purpose.
	46	+	SECTION 4. This Act takes effect December 1, 2019.