By: Middleton, et al. (Senate Sponsor - Taylor) H.B. No. 769
(In the Senate - Received from the House May 3, 2021;
May 13, 2021, read first time and referred to Committee on Natural
Resources & Economic Development; May 19, 2021, rereferred to
Committee on Jurisprudence; May 22, 2021, reported adversely, with
favorable Committee Substitute by the following vote: Yeas 5,
Nays 0; May 22, 2021, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 769 By: Hinojosa
A BILL TO BE ENTITLED
AN ACT
relating to the administration of the Texas Windstorm Insurance
Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 2210, Insurance Code, is
amended by adding Section 2210.3512 to read as follows:
Sec. 2210.3512. REQUIREMENT FOR VOTE ON RATE FILING. The
board of directors may not vote on a proposed rate filing if there
is a vacancy on the board.
SECTION 2. The heading to Section 2210.453, Insurance Code,
is amended to read as follows:
Sec. 2210.453. FUNDING LEVELS; REINSURANCE AND ALTERNATIVE
RISK FINANCING MECHANISMS; REINSURANCE FROM CERTAIN INSURER OR
BROKER PROHIBITED.
SECTION 3. Section 2210.453, Insurance Code, is amended by
adding Subsection (f) to read as follows:
(f) The association may not purchase reinsurance under this
section from an insurer or broker involved in the execution of a
catastrophe model on which the association relies in:
(1) determining the probable maximum loss applicable
for the period covered by the reinsurance; or
(2) adopting rates under Section 2210.355.
SECTION 4. The Texas Department of Insurance shall amend
the Texas Windstorm Insurance Association's plan of operation to
conform to the changes in law made by this Act not later than the
60th day after the effective date of this Act.
SECTION 5. This Act takes effect September 1, 2021.
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