Texas 2023 - 88th Regular

Texas House Bill HB1991 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1	88R9605 JES-D
2	2	By: Herrero H.B. No. 1991
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the board of directors of the Texas Windstorm Insurance
8	8	Association.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 2210.102(a), (c), (c-1), (f), and (g),
11	11	Insurance Code, are amended to read as follows:
12	12	(a) The board of directors is composed of 11 [nine] members
13	13	appointed by the governor [commissioner] in accordance with this
14	14	section.
15	15	(c) Five [Three] members must, as of the date of the
16	16	appointment, reside in the first tier coastal counties. Each of the
17	17	following regions must be represented by a member residing in the
18	18	region and appointed under this subsection:
19	19	(1) the region consisting of Cameron, Kenedy, Kleberg,
20	20	and Willacy Counties;
21	21	(2) the region consisting of Aransas, Calhoun, Nueces,
22	22	Refugio, and San Patricio Counties; and
23	23	(3) the region consisting of Brazoria, Chambers,
24	24	Galveston, Jefferson, and Matagorda Counties and any part of Harris
25	25	County designated as a catastrophe area under Section 2210.005.
26	26	(c-1) One of the members appointed under Subsection (c) must
27	27	be a property and casualty agent who is licensed under this code and
28	28	is not a captive agent. Other members appointed under that
29	29	subsection:
30	30	(1) must be association policyholders nominated by the
31	31	office of public insurance counsel; and
32	32	(2) may not be property and casualty agents.
33	33	(f) Insurers who are members of the association shall
34	34	nominate, from among those members, persons to fill any vacancy in
35	35	the three board of director seats reserved for representatives of
36	36	the insurance industry. The board of directors shall solicit
37	37	nominations from the members and submit the nominations to the
38	38	governor [commissioner]. The nominee slate submitted to the
39	39	governor [commissioner] under this subsection must include at least
40	40	three more names than the number of vacancies. The governor
41	41	[commissioner] may appoint replacement insurance industry
42	42	representatives from the nominee slate.
43	43	(g) Members appointed to the board of directors under
44	44	Subsections (c) and (d), other than the property and casualty agent
45	45	[member] appointed under Subsection (c-1), must represent the
46	46	general public in the regions described by those subsections. A
47	47	person may not be appointed to represent the general public under
48	48	Subsection (c) or (d) if the person or the person's spouse:
49	49	(1) is employed by or participates in the management
50	50	of a business entity or other organization:
51	51	(A) operating in the property and casualty
52	52	insurance industry in this state;
53	53	(B) receiving money from the association, other
54	54	than insurance claim payments; or
55	55	(C) receiving money from association
56	56	policyholders with respect to the policyholders' claims;
57	57	(2) owns or controls, directly or indirectly, more
58	58	than a 10 percent interest in a business entity or other
59	59	organization:
60	60	(A) operating in the property and casualty
61	61	insurance industry in this state;
62	62	(B) receiving money from the association, other
63	63	than insurance claim payments; or
64	64	(C) receiving money from association
65	65	policyholders with respect to the policyholders' claims; or
66	66	(3) uses or receives a substantial amount of tangible
67	67	goods, services, or money from the association, other than:
68	68	(A) insurance claim payments; or
69	69	(B) compensation or reimbursement authorized by
70	70	law for the board members' membership, attendance, or expenses.
71	71	SECTION 2. Section 2210.103, Insurance Code, is amended to
72	72	read as follows:
73	73	Sec. 2210.103. TERMS. (a) Members of the board of
74	74	directors serve two-year [three-year staggered] terms[, with the
75	75	terms of three members expiring on the third Tuesday of March of
76	76	each year].
77	77	(b) A person may serve on the board of directors for not more
78	78	than three consecutive full terms, not to exceed six [nine] years.
79	79	(c) A member of the board of directors may be removed by the
80	80	governor [commissioner] with cause stated in writing and posted on
81	81	the association's website. The governor [commissioner] shall
82	82	appoint a replacement in accordance with Section 2210.102 for a
83	83	member who leaves or is removed from the board of directors.
84	84	SECTION 3. (a) The board of directors of the Texas
85	85	Windstorm Insurance Association established under Section
86	86	2210.102, Insurance Code, as that section existed before amendment
87	87	by this Act, is abolished effective December 1, 2023.
88	88	(b) The governor shall appoint the members of the board of
89	89	directors of the Texas Windstorm Insurance Association under
90	90	Section 2210.102, Insurance Code, as amended by this Act, not later
91	91	than December 1, 2023.
92	92	(c) The term of a person who is serving as a member of the
93	93	board of directors of the Texas Windstorm Insurance Association
94	94	immediately before the abolition of that board under Subsection (a)
95	95	of this section expires on December 1, 2023. Such a person is
96	96	eligible for appointment by the governor to the new board of
97	97	directors of the Texas Windstorm Insurance Association, subject to
98	98	the requirements of Section 2210.102, Insurance Code, as amended by
99	99	this Act.
100	100	SECTION 4. This Act takes effect September 1, 2023.