88R9611 JES-D
By: Herrero H.B. No. 1992
A BILL TO BE ENTITLED
AN ACT
relating to policyholder approval for certain windstorm and hail
insurance rate changes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 2210, Insurance Code, is
amended by adding Section 2210.3591 to read as follows:
Sec. 2210.3591. POLICYHOLDER APPROVAL REQUIRED FOR CERTAIN
RATE CHANGES. (a) The board of directors may not approve a rate
that reflects an average rate change that is more than five percent
higher than the rate in effect on the date the board proposes the
rate unless the proposed rate change has been approved by a majority
of the policyholders of the association.
(b) The commissioner shall establish the procedure by which
policyholders are notified of and vote on a proposed rate change
under this section.
SECTION 2. Not later than January 1, 2024, the commissioner
of insurance shall adopt rules necessary to implement Section
2210.3591, Insurance Code, as added by this Act.
SECTION 3. The change in law made by this Act applies only
to a rate approved by the board of directors of the Texas Windstorm
Insurance Association on or after January 1, 2024.
SECTION 4. This Act takes effect September 1, 2023.