87R8210 SMT-D
By: Hunter, Canales, Morrison, Lucio III, H.B. No. 3810
Middleton, et al.
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the Texas Windstorm Insurance
Association to raise premium rates on association policies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2210.351, Insurance Code, is amended by
amending Subsection (d) and adding Subsection (f) 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 [105 percent of] the
rate 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 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.
(f) The association may not file a rate under this section
that exceeds the rate in effect on the date on which the filing is
made unless two-thirds of the board of directors votes to approve
the rate.
SECTION 2. Section 2210.352, Insurance Code, is amended by
amending Subsection (a-1) and adding Subsection (a-3) 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; and
(2) the filed rate does not exceed [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 10 percent higher than the rate
in effect for that rating class on the date on which the filing is
made].
(a-3) The association may not file a rate under this section
that exceeds the rate in effect on the date on which the filing is
made unless two-thirds of the board of directors votes to approve
the rate.
SECTION 3. The change in law made by this Act applies 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 4. This Act takes effect September 1, 2021.