By: Middleton S.B. No. 1393
(In the Senate - Filed March 1, 2023; March 16, 2023, read
first time and referred to Committee on Business & Commerce;
April 28, 2023, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 11, Nays 0; April 28, 2023,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1393 By: Middleton
A BILL TO BE ENTITLED
AN ACT
relating to eligibility for coverage by the Fair Access to
Insurance Requirements Plan 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 in the area surrounding, but
not located more than four miles beyond, the Texas Windstorm
Insurance Association catastrophe area designated under Section
2210.005, an offer of coverage for the property through the
voluntary market at a cost that exceeds 110 percent of the cost for
an association policy providing substantially equivalent coverage
of residential property with similar rating characteristics,
including size, elevation, age, and construction standards, is
considered 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.
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