| 1 | 1 | | S.B. No. 1393 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | AN ACT |
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| 5 | 5 | | relating to eligibility for coverage by the Fair Access to |
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| 6 | 6 | | Insurance Requirements Plan in certain areas. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 2211.151, Insurance Code, is amended to |
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| 9 | 9 | | read as follows: |
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| 10 | 10 | | Sec. 2211.151. MANDATORY COVERAGE PROVIDED TO CERTAIN |
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| 11 | 11 | | INSUREDS. (a) The association shall make residential property |
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| 12 | 12 | | insurance available to each applicant in an underserved area whose |
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| 13 | 13 | | property is insurable in accordance with reasonable underwriting |
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| 14 | 14 | | standards but who, after diligent efforts, is unable to obtain |
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| 15 | 15 | | residential property insurance through the voluntary market, as |
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| 16 | 16 | | evidenced by two declinations from insurers authorized to engage in |
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| 17 | 17 | | the business of, and writing, residential property insurance in |
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| 18 | 18 | | this state. |
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| 19 | 19 | | (b) For residential properties in the area surrounding, but |
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| 20 | 20 | | not located more than four miles beyond, the Texas Windstorm |
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| 21 | 21 | | Insurance Association catastrophe area designated under Section |
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| 22 | 22 | | 2210.005, an offer of coverage for the property through the |
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| 23 | 23 | | voluntary market at a cost that exceeds 110 percent of the cost for |
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| 24 | 24 | | an association policy providing substantially equivalent coverage |
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| 25 | 25 | | of residential property with similar rating characteristics, |
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| 26 | 26 | | including size, elevation, age, and construction standards, is |
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| 27 | 27 | | considered a declination for purposes of establishing eligibility |
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| 28 | 28 | | for coverage under Subsection (a). |
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| 29 | 29 | | SECTION 2. This Act takes effect immediately if it receives |
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| 30 | 30 | | a vote of two-thirds of all the members elected to each house, as |
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| 31 | 31 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 32 | 32 | | Act does not receive the vote necessary for immediate effect, this |
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| 33 | 33 | | Act takes effect September 1, 2023. |
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| 34 | 34 | | ______________________________ ______________________________ |
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| 35 | 35 | | President of the Senate Speaker of the House |
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| 36 | 36 | | I hereby certify that S.B. No. 1393 passed the Senate on |
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| 37 | 37 | | May 8, 2023, by the following vote: Yeas 29, Nays 2. |
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| 38 | 38 | | ______________________________ |
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| 39 | 39 | | Secretary of the Senate |
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| 40 | 40 | | I hereby certify that S.B. No. 1393 passed the House on |
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| 41 | 41 | | May 19, 2023, by the following vote: Yeas 141, Nays 2, |
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| 42 | 42 | | two present not voting. |
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| 43 | 43 | | ______________________________ |
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| 44 | 44 | | Chief Clerk of the House |
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| 45 | 45 | | Approved: |
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| 46 | 46 | | ______________________________ |
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| 47 | 47 | | Date |
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| 48 | 48 | | ______________________________ |
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| 49 | 49 | | Governor |
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