| 1 | 1 | | 88R17240 SCL-F |
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| 2 | 2 | | By: Paul H.B. No. 3333 |
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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 eligibility for coverage by the Fair Access to |
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| 8 | 8 | | Insurance Requirements Plan in certain areas. |
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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. Section 2211.151, Insurance Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | Sec. 2211.151. MANDATORY COVERAGE PROVIDED TO CERTAIN |
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| 13 | 13 | | INSUREDS. (a) The association shall make residential property |
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| 14 | 14 | | insurance available to each applicant in an underserved area whose |
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| 15 | 15 | | property is insurable in accordance with reasonable underwriting |
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| 16 | 16 | | standards but who, after diligent efforts, is unable to obtain |
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| 17 | 17 | | residential property insurance through the voluntary market, as |
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| 18 | 18 | | evidenced by two declinations from insurers authorized to engage in |
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| 19 | 19 | | the business of, and writing, residential property insurance in |
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| 20 | 20 | | this state. |
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| 21 | 21 | | (b) For an applicant owning residential property located |
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| 22 | 22 | | not more than four miles beyond the Texas Windstorm Insurance |
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| 23 | 23 | | Association catastrophe area designated under Section 2210.005, an |
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| 24 | 24 | | offer of coverage for the property through the voluntary market at a |
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| 25 | 25 | | cost that exceeds 110 percent of the cost for an association policy |
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| 26 | 26 | | providing equivalent coverage of residential property with similar |
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| 27 | 27 | | rating characteristics, including size, elevation, age, and |
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| 28 | 28 | | construction standards, is considered a declination for purposes of |
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| 29 | 29 | | establishing eligibility for coverage under Subsection (a). |
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| 30 | 30 | | SECTION 2. This Act takes effect immediately if it receives |
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| 31 | 31 | | a vote of two-thirds of all the members elected to each house, as |
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| 32 | 32 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 33 | 33 | | Act does not receive the vote necessary for immediate effect, this |
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| 34 | 34 | | Act takes effect September 1, 2023. |
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