| 4 | 3 | | |
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| 5 | 4 | | |
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| 6 | 5 | | A BILL TO BE ENTITLED |
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| 7 | 6 | | AN ACT |
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| 8 | 7 | | relating to the authority of the Texas Windstorm Insurance |
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| 9 | 8 | | Association to raise premium rates on association policies. |
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| 10 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 10 | | SECTION 1. Section 2210.351, Insurance Code, is amended by |
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| 12 | 11 | | amending Subsection (d) and adding Subsection (f) to read as |
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| 13 | 12 | | follows: |
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| 14 | 13 | | (d) The association may use a rate filed by the association |
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| 15 | 14 | | without prior commissioner approval if: |
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| 16 | 15 | | (1) the filing is made not later than the 30th day |
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| 17 | 16 | | before the date of any use or delivery for use of the rate; |
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| 18 | 17 | | (2) the filed rate does not exceed [105 percent of] the |
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| 19 | 18 | | rate in effect on the date on which the filing is made; and |
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| 20 | 19 | | (3) [the filed rate does not reflect a rate change for |
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| 21 | 20 | | an individual rating class that is 10 percent higher than the rate |
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| 22 | 21 | | in effect for that rating class on the date on which the filing is |
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| 23 | 22 | | made; and |
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| 24 | 23 | | [(4)] the commissioner has not disapproved the filing |
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| 25 | 24 | | in writing, advising of the reasons for the disapproval and the |
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| 26 | 25 | | criteria the association is required to meet to obtain approval. |
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| 27 | 26 | | (f) The association may not file a rate under this section |
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| 28 | 27 | | that exceeds the rate in effect on the date on which the filing is |
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| 29 | 28 | | made unless two-thirds of the board of directors votes to approve |
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| 30 | 29 | | the rate. |
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| 31 | 30 | | SECTION 2. Section 2210.352, Insurance Code, is amended by |
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| 32 | 31 | | amending Subsection (a-1) and adding Subsection (a-3) to read as |
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| 33 | 32 | | follows: |
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| 34 | 33 | | (a-1) The association may use a rate filed by the |
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| 35 | 34 | | association under this section without prior commissioner approval |
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| 36 | 35 | | if: |
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| 37 | 36 | | (1) the filing is made not later than the 30th day |
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| 38 | 37 | | before the date of any use or delivery for use of the rate; and |
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| 39 | 38 | | (2) the filed rate does not exceed [105 percent of] the |
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| 40 | 39 | | rate used by the association in effect on the date on which the |
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| 41 | 40 | | filing is made[; and |
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| 42 | 41 | | [(3) the filed rate does not reflect a rate change for |
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| 43 | 42 | | an individual rating class that is 10 percent higher than the rate |
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| 44 | 43 | | in effect for that rating class on the date on which the filing is |
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| 45 | 44 | | made]. |
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| 46 | 45 | | (a-3) The association may not file a rate under this section |
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| 47 | 46 | | that exceeds the rate in effect on the date on which the filing is |
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| 48 | 47 | | made unless two-thirds of the board of directors votes to approve |
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| 49 | 48 | | the rate. |
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| 50 | 49 | | SECTION 3. The change in law made by this Act applies only |
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| 51 | 50 | | to a rate filed by the Texas Windstorm Insurance Association with |
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| 52 | 51 | | the Texas Department of Insurance on or after the effective date of |
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| 53 | 52 | | this Act. A rate filed with the Texas Department of Insurance |
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| 54 | 53 | | before the effective date of this Act is governed by the law as it |
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| 55 | 54 | | existed immediately before that date, and that law is continued in |
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| 56 | 55 | | effect for that purpose. |
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| 57 | 56 | | SECTION 4. This Act takes effect September 1, 2021. |
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