Texas 2021 - 87th Regular

Texas Senate Bill SB1448 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1448
	1	+	By: Taylor, et al. S.B. No. 1448
	2	+	(Bonnen)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5		-	relating to the powers and duties of the ~~Texas~~ Windstorm Insurance
6		-	~~Association and the windstorm insurance~~ legislative oversight
7		-	~~board and to certain studies by the board~~ relating to the
8		-	~~association and the Fair~~ Access to Insurance Requirements Plan.
	7	+	relating to the powers and duties of the windstorm insurance
	8	+	legislative oversight board and to certain studies by the board
	9	+	relating to the Texas Windstorm Insurance Association and the Fair
	10	+	Access to Insurance Requirements Plan.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10		-	SECTION 1. Section 2210.351, Insurance Code, is amended by
11		-	amending Subsection (d) and adding Subsection (f) to read as
12		-	follows:
13		-	(d) The association may use a rate filed by the association
14		-	without prior commissioner approval if:
15		-	(1) the filing is made not later than the 30th day
16		-	before the date of any use or delivery for use of the rate;
17		-	(2) the filed rate does not exceed [105 percent of] the
18		-	rate in effect on the date on which the filing is made; and
19		-	(3) [the filed rate does not reflect a rate change for
20		-	an individual rating class that is 10 percent higher than the rate
21		-	in effect for that rating class on the date on which the filing is
22		-	made; and
23		-	[(4)] the commissioner has not disapproved the filing
24		-	in writing, advising of the reasons for the disapproval and the
25		-	criteria the association is required to meet to obtain approval.
26		-	(f) The association may not file a rate under this section
27		-	that exceeds the rate in effect on the date on which the filing is
28		-	made unless two-thirds of the board of directors votes to approve
29		-	the rate.
30		-	SECTION 2. Section 2210.352, Insurance Code, is amended by
31		-	amending Subsection (a-1) and adding Subsection (a-3) to read as
32		-	follows:
33		-	(a-1) The association may use a rate filed by the
34		-	association under this section without prior commissioner approval
35		-	if:
36		-	(1) the filing is made not later than the 30th day
37		-	before the date of any use or delivery for use of the rate; and
38		-	(2) the filed rate does not exceed [105 percent of] the
39		-	rate used by the association in effect on the date on which the
40		-	filing is made[; and
41		-	[(3) the filed rate does not reflect a rate change for
42		-	an individual rating class that is 10 percent higher than the rate
43		-	in effect for that rating class on the date on which the filing is
44		-	made].
45		-	(a-3) The association may not file a rate under this section
46		-	that exceeds the rate in effect on the date on which the filing is
47		-	made unless two-thirds of the board of directors votes to approve
48		-	the rate.
49		-	SECTION 3. Subchapter N, Chapter 2210, Insurance Code, is
	12	+	SECTION 1. Subchapter N, Chapter 2210, Insurance Code, is
50	13		amended by adding Section 2210.655 to read as follows:
51	14		Sec. 2210.655. TEMPORARY POWERS AND DUTIES OF BOARD; STUDY
52	15		OF FUNDING AND FUNDING STRUCTURE. (a) The board shall:
53	16		(1) gather information regarding:
54	17		(A) how the association's current funding and
55	18		funding structure operate;
56	19		(B) how the catastrophic risk pools of other
57	20		states operate; and
58	21		(C) other information that the board considers
59	22		necessary to prepare the information required by Subsection (c);
60	23		and
61	24		(2) hold public meetings to hear testimony from
62	25		experts, stakeholders, and other interested parties regarding
63	26		recommendations and proposals for establishing and implementing
64	27		sustainable funding and a sustainable funding structure for the
65	28		association.
66	29		(b) The board may request reports and other information as
67	30		necessary to implement this section from:
68	31		(1) the department;
69	32		(2) the association; and
70	33		(3) experts, stakeholders, and other interested
71	34		parties described by Subsection (a)(2).
72	35		(c) The board shall include in the report described by
73	36		Section 2210.654 the board's findings regarding the current funding
74	37		and funding structure of the association, problems with the funding
75	38		and funding structure, and recommendations for legislative action
76	39		related to the funding, funding structure, and sustainability of
77	40		the association. The report must include:
78	41		(1) an analysis of the current funding, funding
79	42		structure, and sustainability of the association, including the
80	43		association's reliance on debt and reinsurance; and
81	44		(2) recommendations for legislative action necessary
82	45		to:
83	46		(A) address problems with the current funding and
84	47		funding structure of the association; and
85	48		(B) foster the stability and sustainability of
86	49		the association.
87	50		(d) This section expires September 1, 2023.
88		-	SECTION 4. Sections 14(c) and (d), Chapter 790 (H.B. 1900),
	51	+	SECTION 2. Sections 14(c) and (d), Chapter 790 (H.B. 1900),
89	52		Acts of the 86th Legislature, Regular Session, 2019, are amended to
90	53		read as follows:
91	54		(c) Not later than January 1, 2023 [2021], the windstorm
92	55		insurance legislative oversight board shall submit to the governor,
93	56		the lieutenant governor, the speaker of the house of
94	57		representatives, and the Texas Department of Insurance a written
95	58		report of a [the] study conducted under this section. The report
96	59		must include the findings and legislative recommendations of the
97	60		board.
98	61		(d) This section expires January 1, 2024 [2022].
99		-	SECTION 5. Sections 2210.351 and 2210.352, Insurance Code,
100		-	as amended by this Act, apply only to a rate filed by the Texas
101		-	Windstorm Insurance Association with the Texas Department of
102		-	Insurance on or after the effective date of this Act. A rate filed
103		-	with the Texas Department of Insurance before the effective date of
104		-	this Act is governed by the law as it existed immediately before
105		-	that date, and that law is continued in effect for that purpose.
106		-	SECTION 6. This Act takes effect September 1, 2021.
107		-	______________________________ ______________________________
108		-	President of the Senate Speaker of the House
109		-	I hereby certify that S.B. No. 1448 passed the Senate on
110		-	April 14, 2021, by the following vote: Yeas 31, Nays 0; and that
111		-	the Senate concurred in House amendment on May 13, 2021, by the
112		-	following vote: Yeas 25, Nays 5.
113		-	______________________________
114		-	Secretary of the Senate
115		-	I hereby certify that S.B. No. 1448 passed the House, with
116		-	amendment, on April 30, 2021, by the following vote: Yeas 138,
117		-	Nays 3, two present not voting.
118		-	______________________________
119		-	Chief Clerk of the House
120		-	Approved:
121		-	______________________________
122		-	Date
123		-	______________________________
124		-	Governor
	62	+	SECTION 3. This Act takes effect September 1, 2021.