| 1 | 1 | | 88R9611 JES-D |
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| 2 | 2 | | By: Herrero H.B. No. 1992 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to policyholder approval for certain windstorm and hail |
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| 8 | 8 | | insurance rate changes. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter H, Chapter 2210, Insurance Code, is |
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| 11 | 11 | | amended by adding Section 2210.3591 to read as follows: |
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| 12 | 12 | | Sec. 2210.3591. POLICYHOLDER APPROVAL REQUIRED FOR CERTAIN |
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| 13 | 13 | | RATE CHANGES. (a) The board of directors may not approve a rate |
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| 14 | 14 | | that reflects an average rate change that is more than five percent |
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| 15 | 15 | | higher than the rate in effect on the date the board proposes the |
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| 16 | 16 | | rate unless the proposed rate change has been approved by a majority |
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| 17 | 17 | | of the policyholders of the association. |
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| 18 | 18 | | (b) The commissioner shall establish the procedure by which |
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| 19 | 19 | | policyholders are notified of and vote on a proposed rate change |
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| 20 | 20 | | under this section. |
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| 21 | 21 | | SECTION 2. Not later than January 1, 2024, the commissioner |
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| 22 | 22 | | of insurance shall adopt rules necessary to implement Section |
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| 23 | 23 | | 2210.3591, Insurance Code, as added by this Act. |
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| 24 | 24 | | SECTION 3. The change in law made by this Act applies only |
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| 25 | 25 | | to a rate approved by the board of directors of the Texas Windstorm |
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| 26 | 26 | | Insurance Association on or after January 1, 2024. |
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| 27 | 27 | | SECTION 4. This Act takes effect September 1, 2023. |
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