By: Middleton S.B. No. 2556
A BILL TO BE ENTITLED
AN ACT
relating to the abolition of the Texas Windstorm Insurance
Association and coverage for windstorm by certain insurers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 10, Subtitle G, is amended by adding
Chapter 2210A, Insurance Code, to read as follows:
CHAPTER 2210A. TEXAS WINDSTORM INSURANCE
Sec. 2210A.001. WINDSTORM COVERAGE REQUIRED. (a) This
chapter applies to all property insurers authorized to engage in
the business of property and casualty insurance in this state.
(b) As a condition of the insurer's authority to engage in
the business of insurance in this state, each insurer, described by
Subsection (a), must include coverage for windstorm and hail in
each policy written for property located within:
(A) Aransas County;
(B) Brazoria County;
(C) Calhoun County;
(D) Cameron County;
(E) Chambers County;
(F) Galveston County;
(G) Jefferson County;
(H) Kenedy County;
(I) Kleberg County;
(J) Matagorda County;
(K) Nueces County;
(L) Refugio County;
(M) San Patricio County; or
(N) Willacy County.
(c) Coverage provided under Subsection (b) must be provided
at no additional cost to the insured. Costs incurred by insurers
under this section shall not be recouped through a premium
surcharge.
SECTION 2. Chapter 2210, Insurance Code, is repealed.
SECTION 3. (a) The Texas Windstorm Insurance Association
is abolished but continues in existence until September 1, 2024,
for purpose of satisfying or transferring obligations according to
Subsection (b).
(b) The Texas Windstorm Insurance Association shall, no
later than September 1, 2024, liquidate all assets and utilize the
funds to satisfy obligations.
(c) Any obligations not satisfied by Subsection (b) shall be
paid from pro rata member assessments. The proportion of each
member's assessment shall be determined in the manner used to
determine each insurer's participation in the association for the
year under Section 2210.052, Insurance Code, as that section
existed before the effective date of this Act.
SECTION 4. 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 on September 1, 2023.