86R28201 PMO-F
By: Hunter, Lozano, Herrero, Middleton H.B. No. 3960
Substitute the following for H.B. No. 3960:
By: Lucio III C.S.H.B. No. 3960
A BILL TO BE ENTITLED
AN ACT
relating to rate filings by the Texas Windstorm Insurance
Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2210.351(d), Insurance Code, is amended
to read as follows:
(d) The association may use a rate filed by the association
without prior commissioner approval if:
(1) the filing is made not later than the 30th day
before the date of any use or delivery for use of the rate;
(2) the filed rate does not exceed 102.5 [105] percent
of the rate in effect on the date on which the filing is made;
(3) the filed rate does not reflect a rate change for
an individual rating class that is more than 2.5 [10] percent higher
than the rate in effect for that rating class on the date on which
the filing is made; and
(4) the commissioner has not disapproved the filing in
writing, advising of the reasons for the disapproval and the
criteria the association is required to meet to obtain approval.
SECTION 2. Section 2210.352(a-1), Insurance Code, is
amended to read as follows:
(a-1) The association may use a rate filed by the
association under this section without prior commissioner approval
if:
(1) the filing is made not later than the 30th day
before the date of any use or delivery for use of the rate;
(2) the filed rate does not exceed 102.5 [105] percent
of the rate used by the association in effect on the date on which
the filing is made; and
(3) the filed rate does not reflect a rate change for
an individual rating class that is more than 2.5 [10] percent higher
than the rate in effect for that rating class on the date on which
the filing is made.
SECTION 3. Chapter 2210, Insurance Code, is amended by
adding Subchapter N-1 to read as follows:
SUBCHAPTER N-1. LEGISLATIVE FUNDING AND FINANCIAL STRUCTURE
OVERSIGHT BOARD
Sec. 2210.661. DEFINITION. In this subchapter, "board"
means the windstorm insurance legislative funding and financial
structure oversight board.
Sec. 2210.662. COMPOSITION OF BOARD. The board is composed
of eight members as follows:
(1) four members of the senate appointed by the
lieutenant governor; and
(2) four members of the house of representatives
appointed by the speaker of the house of representatives.
Sec. 2210.663. POWERS AND DUTIES OF BOARD. (a) The board
shall:
(1) gather information regarding:
(A) how the association's current funding and
financial structure operate;
(B) how the catastrophic risk pools of other
states operate; and
(C) other information that the board considers
necessary to prepare the report required by Section 2210.664; and
(2) hold public meetings to hear testimony from
experts, stakeholders, and other interested parties regarding
recommendations and proposals for establishing and implementing a
sustainable funding and financial structure for the association.
(b) The board may request reports and other information as
necessary to implement this subchapter from:
(1) the department;
(2) the association; and
(3) experts, stakeholders, and other interested
parties described by Subsection (a)(2).
Sec. 2210.664. REPORT. (a) The board shall prepare a
report of the board's findings regarding the current funding and
financial structure of the association, problems with the funding
and financial structure, and recommendations for legislative
action related to the funding and financial structure and
sustainability of the association. The report must include:
(1) an analysis of the current funding and financial
structure and sustainability of the association, including the
association's reliance on debt and reinsurance; and
(2) recommendations for legislative action necessary
to:
(A) address problems with the current funding and
financial structure of the association; and
(B) foster the stability and sustainability of
the association.
(b) Not later November 15, 2020, the board shall deliver the
report prepared under Subsection (a) to:
(1) the governor;
(2) the lieutenant governor; and
(3) the speaker of the house of representatives.
Sec. 2210.665. EXPIRATION. This subchapter expires
September 1, 2021.
SECTION 4. Sections 2210.351(d) and 2210.352(a-1),
Insurance Code, as amended by this Act, apply only to a rate filed
by the Texas Windstorm Insurance Association with the Texas
Department of Insurance on or after the effective date of this Act.
A rate filed with the Texas Department of Insurance before the
effective date of this Act is governed by the law as it existed
immediately before that date, and that law is continued in effect
for that purpose.
SECTION 5. This Act takes effect December 1, 2019.