BILL ANALYSIS H.B. 3810 By: Hunter Insurance Committee Report (Unamended) BACKGROUND AND PURPOSE The board of directors of the Texas Windstorm Insurance Association (TWIA) sets the premium rates for TWIA policies, subject to review by the Texas Department of Insurance. Currently, only a majority vote is required to approve a rate increase. H.B. 3810 seeks to prohibit TWIA from filing an increased rate unless two-thirds of its board of directors votes to approve the rate. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 3810 amends the Insurance Code to prohibit the Texas Windstorm Insurance Association (TWIA) from filing an increased rate unless two-thirds of its board of directors votes to approve the rate. The bill removes the authorization for TWIA to use a filed rate that provides for an increase of five percent or less without prior approval of the commissioner of insurance under certain conditions. EFFECTIVE DATE September 1, 2021.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 3810
By: Hunter
Insurance
Committee Report (Unamended)
H.B. 3810
By: Hunter
Insurance
Committee Report (Unamended)
BACKGROUND AND PURPOSE The board of directors of the Texas Windstorm Insurance Association (TWIA) sets the premium rates for TWIA policies, subject to review by the Texas Department of Insurance. Currently, only a majority vote is required to approve a rate increase. H.B. 3810 seeks to prohibit TWIA from filing an increased rate unless two-thirds of its board of directors votes to approve the rate.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 3810 amends the Insurance Code to prohibit the Texas Windstorm Insurance Association (TWIA) from filing an increased rate unless two-thirds of its board of directors votes to approve the rate. The bill removes the authorization for TWIA to use a filed rate that provides for an increase of five percent or less without prior approval of the commissioner of insurance under certain conditions.
EFFECTIVE DATE September 1, 2021.
BACKGROUND AND PURPOSE
The board of directors of the Texas Windstorm Insurance Association (TWIA) sets the premium rates for TWIA policies, subject to review by the Texas Department of Insurance. Currently, only a majority vote is required to approve a rate increase. H.B. 3810 seeks to prohibit TWIA from filing an increased rate unless two-thirds of its board of directors votes to approve the rate.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 3810 amends the Insurance Code to prohibit the Texas Windstorm Insurance Association (TWIA) from filing an increased rate unless two-thirds of its board of directors votes to approve the rate. The bill removes the authorization for TWIA to use a filed rate that provides for an increase of five percent or less without prior approval of the commissioner of insurance under certain conditions.
EFFECTIVE DATE
September 1, 2021.