By: Paul H.B. No. 3333
A BILL TO BE ENTITLED
AN ACT
relating to eligibility for coverage under the FAIR Plan
Association in certain areas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2211.151, Insurance Code, is amended to
read as follows:
Sec. 2211.151. MANDATORY COVERAGE PROVIDED TO CERTAIN
INSUREDS. (a) The association shall make residential property
insurance available to each applicant in an underserved area whose
property is insurable in accordance with reasonable underwriting
standards but who, after diligent efforts, is unable to obtain
residential property insurance through the voluntary market, as
evidenced by two declinations from insurers authorized to engage in
the business of, and writing, residential property insurance in
this state.
(b) For residential properties located not more than four
miles beyond the Texas Windstorm Insurance Association catastrophe
area designated under Section 2210.005, an offer of coverage for a
residential property through the voluntary market whose cost
exceeds 10 percent of a Texas FAIR Plan Association policy offering
equivalent coverage of a residential property with similar rating
characteristics, including size, elevation, age, and construction
standard shall constitute a declination for purposes of
establishing eligibility for coverage under Subsection (a).
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.