S.B. No. 1448
AN ACT
relating to the powers and duties of the Texas Windstorm Insurance
Association and the windstorm insurance legislative oversight
board and to certain studies by the board relating to the
association and the Fair Access to Insurance Requirements Plan.
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. Subchapter N, Chapter 2210, Insurance Code, is
amended by adding Section 2210.655 to read as follows:
Sec. 2210.655. TEMPORARY POWERS AND DUTIES OF BOARD; STUDY
OF FUNDING AND FUNDING STRUCTURE. (a) The board shall:
(1) gather information regarding:
(A) how the association's current funding and
funding structure operate;
(B) how the catastrophic risk pools of other
states operate; and
(C) other information that the board considers
necessary to prepare the information required by Subsection (c);
and
(2) hold public meetings to hear testimony from
experts, stakeholders, and other interested parties regarding
recommendations and proposals for establishing and implementing
sustainable funding and a sustainable funding structure for the
association.
(b) The board may request reports and other information as
necessary to implement this section from:
(1) the department;
(2) the association; and
(3) experts, stakeholders, and other interested
parties described by Subsection (a)(2).
(c) The board shall include in the report described by
Section 2210.654 the board's findings regarding the current funding
and funding structure of the association, problems with the funding
and funding structure, and recommendations for legislative action
related to the funding, funding structure, and sustainability of
the association. The report must include:
(1) an analysis of the current funding, funding
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
funding structure of the association; and
(B) foster the stability and sustainability of
the association.
(d) This section expires September 1, 2023.
SECTION 4. Sections 14(c) and (d), Chapter 790 (H.B. 1900),
Acts of the 86th Legislature, Regular Session, 2019, are amended to
read as follows:
(c) Not later than January 1, 2023 [2021], the windstorm
insurance legislative oversight board shall submit to the governor,
the lieutenant governor, the speaker of the house of
representatives, and the Texas Department of Insurance a written
report of a [the] study conducted under this section. The report
must include the findings and legislative recommendations of the
board.
(d) This section expires January 1, 2024 [2022].
SECTION 5. Sections 2210.351 and 2210.352, 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 6. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1448 passed the Senate on
April 14, 2021, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendment on May 13, 2021, by the
following vote: Yeas 25, Nays 5.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1448 passed the House, with
amendment, on April 30, 2021, by the following vote: Yeas 138,
Nays 3, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor