S.B. No. 1393
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.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1393 passed the Senate on
May 8, 2023, by the following vote: Yeas 29, Nays 2.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1393 passed the House on
May 19, 2023, by the following vote: Yeas 141, Nays 2,
two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor