| 1 | 1 | | By: Middleton S.B. No. 2556 |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | A BILL TO BE ENTITLED |
|---|
| 5 | 5 | | AN ACT |
|---|
| 6 | 6 | | relating to the abolition of the Texas Windstorm Insurance |
|---|
| 7 | 7 | | Association and coverage for windstorm by certain insurers. |
|---|
| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 9 | 9 | | SECTION 1. Title 10, Subtitle G, is amended by adding |
|---|
| 10 | 10 | | Chapter 2210A, Insurance Code, to read as follows: |
|---|
| 11 | 11 | | CHAPTER 2210A. TEXAS WINDSTORM INSURANCE |
|---|
| 12 | 12 | | Sec. 2210A.001. WINDSTORM COVERAGE REQUIRED. (a) This |
|---|
| 13 | 13 | | chapter applies to all property insurers authorized to engage in |
|---|
| 14 | 14 | | the business of property and casualty insurance in this state. |
|---|
| 15 | 15 | | (b) As a condition of the insurer's authority to engage in |
|---|
| 16 | 16 | | the business of insurance in this state, each insurer, described by |
|---|
| 17 | 17 | | Subsection (a), must include coverage for windstorm and hail in |
|---|
| 18 | 18 | | each policy written for property located within: |
|---|
| 19 | 19 | | (A) Aransas County; |
|---|
| 20 | 20 | | (B) Brazoria County; |
|---|
| 21 | 21 | | (C) Calhoun County; |
|---|
| 22 | 22 | | (D) Cameron County; |
|---|
| 23 | 23 | | (E) Chambers County; |
|---|
| 24 | 24 | | (F) Galveston County; |
|---|
| 25 | 25 | | (G) Jefferson County; |
|---|
| 26 | 26 | | (H) Kenedy County; |
|---|
| 27 | 27 | | (I) Kleberg County; |
|---|
| 28 | 28 | | (J) Matagorda County; |
|---|
| 29 | 29 | | (K) Nueces County; |
|---|
| 30 | 30 | | (L) Refugio County; |
|---|
| 31 | 31 | | (M) San Patricio County; or |
|---|
| 32 | 32 | | (N) Willacy County. |
|---|
| 33 | 33 | | (c) Coverage provided under Subsection (b) must be provided |
|---|
| 34 | 34 | | at no additional cost to the insured. Costs incurred by insurers |
|---|
| 35 | 35 | | under this section shall not be recouped through a premium |
|---|
| 36 | 36 | | surcharge. |
|---|
| 37 | 37 | | SECTION 2. Chapter 2210, Insurance Code, is repealed. |
|---|
| 38 | 38 | | SECTION 3. (a) The Texas Windstorm Insurance Association |
|---|
| 39 | 39 | | is abolished but continues in existence until September 1, 2024, |
|---|
| 40 | 40 | | for purpose of satisfying or transferring obligations according to |
|---|
| 41 | 41 | | Subsection (b). |
|---|
| 42 | 42 | | (b) The Texas Windstorm Insurance Association shall, no |
|---|
| 43 | 43 | | later than September 1, 2024, liquidate all assets and utilize the |
|---|
| 44 | 44 | | funds to satisfy obligations. |
|---|
| 45 | 45 | | (c) Any obligations not satisfied by Subsection (b) shall be |
|---|
| 46 | 46 | | paid from pro rata member assessments. The proportion of each |
|---|
| 47 | 47 | | member's assessment shall be determined in the manner used to |
|---|
| 48 | 48 | | determine each insurer's participation in the association for the |
|---|
| 49 | 49 | | year under Section 2210.052, Insurance Code, as that section |
|---|
| 50 | 50 | | existed before the effective date of this Act. |
|---|
| 51 | 51 | | SECTION 4. This Act takes effect immediately if it receives |
|---|
| 52 | 52 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 53 | 53 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 54 | 54 | | Act does not receive the vote necessary for immediate effect, this |
|---|
| 55 | 55 | | Act takes effect on September 1, 2023. |
|---|