88R4165 JES-F
By: Hinojosa S.B. No. 841
A BILL TO BE ENTITLED
AN ACT
relating to funding of excess losses and operating expenses of the
Texas Windstorm Insurance Association; authorizing an assessment,
a surcharge, and an infrastructure grant.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. FUNDING OF INSURED LOSSES AND OPERATING EXPENSES OF
TEXAS WINDSTORM INSURANCE ASSOCIATION
SECTION 1.01. (a) In this section, "association" means the
Texas Windstorm Insurance Association.
(b) The legislature finds that the use of public securities
is not an efficient or viable long-term method to fund losses of the
association in order for the association to continue to provide
windstorm and hail insurance after a catastrophic event. Subchapter
B-2, Chapter 2210, Insurance Code, as added by this Act, is intended
to replace Subchapter B-1, Insurance Code, to provide for funding
of excess losses and operating expenses of the association incurred
after December 31, 2023.
(c) The legislature finds that:
(1) previous experience has shown that the expense of
issuing public securities is significant and can impose
significant long-term expense obligations on coastal property and
casualty risks that may be avoided if the legislature provides for
an infrastructure grant to the association as a more efficient way
to provide either pre-event or post-event funding for the
association; and
(2) a grant to the association of not more than $1
billion would:
(A) replace the funding levels currently
provided by issuing public securities;
(B) be more consistent with sound insurance
solvency standards than the issuance of public securities; and
(C) provide a more viable method for the
association to have catastrophe reserve funds for a catastrophic
event than the issuance of public securities.
(d) The legislature finds that authorizing contingent
surcharges is a more viable method to raise money to replenish the
catastrophe reserve trust fund after a hurricane and to ensure that
the association can continue to provide windstorm and hail
insurance in the coastal areas of this state after a catastrophic
event to maintain the association's viability for the benefit of
the public and in furtherance of a public purpose.
SECTION 1.02. The heading to Subchapter B-1, Chapter 2210,
Insurance Code, is amended to read as follows:
SUBCHAPTER B-1. PAYMENT OF LOSSES INCURRED BEFORE JANUARY 1, 2024
SECTION 1.03. Subchapter B-1, Chapter 2210, Insurance Code,
is amended by adding Section 2210.070 to read as follows:
Sec. 2210.070. APPLICABILITY OF SUBCHAPTER. (a) This
subchapter applies only to the payment of losses and operating
expenses of the association for a catastrophe year that occurs
before January 1, 2024, and results in excess losses and operating
expenses incurred by the association before January 1, 2024.
(b) Payment of excess losses and operating expenses of the
association incurred after December 31, 2023, shall be paid as
provided by Subchapter B-2.
SECTION 1.04. Section 2210.071(a), Insurance Code, is
amended to read as follows:
(a) If, in a catastrophe year before January 1, 2024, an
occurrence or series of occurrences in a catastrophe area results
in insured losses and operating expenses of the association in
excess of premium and other revenue of the association, the excess
losses and operating expenses shall be paid as provided by this
subchapter.
SECTION 1.05. Section 2210.0715(b), Insurance Code, is
amended to read as follows:
(b) Proceeds of public securities issued or assessments
made before January 1, 2024, or as a result of any occurrence or
series of occurrences in a catastrophe year that occurs before
January 1, 2024, and results in insured losses before that date may
not be included in reserves available for a subsequent catastrophe
year for purposes of this section or Section 2210.082 unless
approved by the commissioner.
SECTION 1.06. The heading to Section 2210.075, Insurance
Code, is amended to read as follows:
Sec. 2210.075. REINSURANCE BY MEMBERS.
SECTION 1.07. Chapter 2210, Insurance Code, is amended by
adding Subchapter B-2 to read as follows:
SUBCHAPTER B-2. PAYMENT OF EXCESS LOSSES AND OPERATING EXPENSES
Sec. 2210.080. APPLICABILITY OF SUBCHAPTER. (a) This
subchapter applies only to payment of losses and operating expenses
of the association for a catastrophe year that occurs after
December 31, 2023, and results in excess losses and operating
expenses incurred by the association after December 31, 2023.
(b) This section expires September 1, 2025.
Sec. 2210.081. PAYMENT OF EXCESS LOSSES. (a) If, in a
catastrophe year, an occurrence or series of occurrences in a
catastrophe area results in insured losses and operating expenses
of the association in excess of premium and other revenue of the
association, the excess losses and operating expenses shall be paid
as provided by this subchapter.
(b) The association may not pay insured losses and operating
expenses resulting from an occurrence or series of occurrences in a
catastrophe year with premium and other revenue earned in a
subsequent year.
Sec. 2210.082. PAYMENT FROM RESERVES AND TRUST FUND. The
association shall pay insured losses and operating expenses
resulting from an occurrence or series of occurrences in a
catastrophe year in excess of premium and other revenue of the
association for that catastrophe year from reserves of the
association available before or accrued during that catastrophe
year and amounts in the catastrophe reserve trust fund available
before or accrued during that catastrophe year.
Sec. 2210.083. PAYMENT FROM MEMBER ASSESSMENTS. (a)
Insured losses and operating expenses for a catastrophe year not
paid under Section 2210.082 shall be paid as provided by this
section from member assessments not to exceed $1 billion for that
catastrophe year.
(b) The board of directors shall notify each association
member of the amount of the member's assessment under this section.
The proportion of the insured losses and operating expenses
allocable to each insurer under this section shall be determined in
the manner used to determine each insurer's participation in the
association for the year under Section 2210.052.
(c) An association member may not recoup an assessment paid
under this section through a premium surcharge or tax credit.
Sec. 2210.084. REINSURANCE BY MEMBERS FOR MEMBER
ASSESSMENTS. (a) Before any occurrence or series of occurrences,
an association member may purchase reinsurance to cover an
assessment for which the member would otherwise be liable under
this subchapter.
(b) An association member must notify the board of
directors, in the manner prescribed by the association, whether the
member will be purchasing reinsurance. If the member does not
purchase reinsurance under this section, the member remains liable
for any assessment imposed under this subchapter.
SECTION 1.08. Section 2210.452(b), Insurance Code, is
amended to read as follows:
(b) All money, including investment income, deposited in
the trust fund constitutes state funds until disbursed as provided
by this chapter and commissioner rules. The comptroller shall hold
the money outside the state treasury on behalf of, and with legal
title in, the department on behalf of the association. The
department shall keep and maintain the trust fund in accordance
with this chapter and commissioner rules. The comptroller, as
custodian of the trust fund, shall administer the trust fund
strictly and solely as provided by this chapter and commissioner
rules. The association may include the amounts held in the
catastrophe reserve trust fund as an admitted asset in the
financial statements of the association.
SECTION 1.09. Section 2210.4521(a), Insurance Code, is
amended to read as follows:
(a) The comptroller shall invest in accordance with the
investment standard described by Section 404.024(j), Government
Code, the portion of the trust fund balance that exceeds the amount
of the sufficient balance determined under Subsection (b). The
comptroller's investment of that portion of the balance is not
subject to any other limitation or other requirement provided by
Section 404.024, Government Code. The Texas Treasury Safekeeping
Trust Company and board of directors may recommend investments to
protect the trust fund and create investment income.
SECTION 1.10. Sections 2210.453(d) and (e), Insurance Code,
are amended to read as follows:
(d) The association shall obtain reinsurance at any level
including excess of loss, quota share, and other forms of
reinsurance to protect the solvency of the association. In
determining the amount of required reinsurance, the association
shall consider maintaining or protecting a minimum balance of $250
million in the catastrophe reserve trust fund. The commissioner
may consult with the board of directors regarding methods to
protect the solvency and continued viability of the association,
including by protecting the minimum balance, acquiring
reinsurance, or by other means [The cost of the reinsurance
purchased or alternative financing mechanisms used under this
section in excess of the minimum funding level required by
Subsection (b) shall be paid by assessments as provided by this
subsection. The association, with the approval of the
commissioner, shall notify each member of the association of the
amount of the member's assessment under this subsection. The
proportion of the cost to each insurer under this subsection shall
be determined in the manner used to determine each insurer's
participation in the association for the year under Section
2210.052].
(e) The commissioner may adopt a method or approve the
association's method of determining the probability of one in 100
for association risks. The commissioner shall provide any adopted
or approved method to the association on or before February 1 of
each year [A member of the association may not recoup an assessment
paid under Subsection (d) through a premium surcharge or tax
credit].
SECTION 1.11. Section 2210.601, Insurance Code, is amended
to read as follows:
Sec. 2210.601. FINDINGS [PURPOSE]. The legislature finds
that for losses incurred before January 1, 2024, the authorization
of [authorizing] the continued issuance of public securities to
provide a method to raise funds to provide windstorm and hail
insurance through the association in certain designated portions of
the state is for the benefit of the public and in furtherance of a
public purpose.
SECTION 1.12. Subchapter M, Chapter 2210, Insurance Code,
is amended by adding Section 2210.6015 to read as follows:
Sec. 2210.6015. APPLICABILITY OF SUBCHAPTER. To provide
for a reasonable transition, the association may issue public
securities under this subchapter if the association needs to
provide funds for excess losses and operating expenses incurred by
the association before January 1, 2024, for a catastrophe year
occurring before January 1, 2024. After December 31, 2023, the
association may not issue public securities under this subchapter
except to fund excess losses and operating expenses incurred before
January 1, 2024.
SECTION 1.13. Chapter 2210, Insurance Code, is amended by
adding Subchapters M-1 and M-2 to read as follows:
SUBCHAPTER M-1. CATASTROPHE INFRASTRUCTURE GRANT
Sec. 2210.631. CATASTROPHE INFRASTRUCTURE GRANT. (a) The
legislature has determined that providing an infrastructure grant
to the association to capitalize the catastrophe reserve trust fund
in an amount not more than $1 billion would provide the necessary
infrastructure for insuring catastrophic risks.
(b) The governor, in consultation with the commissioner,
lieutenant governor, and speaker of the house of representatives,
may authorize an infrastructure grant to the association consistent
with this subchapter under any act appropriating or authorizing the
grant of money for infrastructure improvements.
Sec. 2210.632. CATASTROPHE INFRASTRUCTURE GRANT PROCEEDS.
The proceeds of a catastrophe infrastructure grant authorized under
this subchapter shall be deposited in the catastrophe reserve trust
fund.
SUBCHAPTER M-2. CONTINGENT HURRICANE SURCHARGE
Sec. 2210.641. DEFINITION. In this subchapter,
"catastrophic event" means an occurrence or a series of occurrences
that:
(1) occurs in a catastrophe area during a calendar
year; and
(2) results in insured losses and operating expenses
of the association in excess of premium and other revenue of the
association.
Sec. 2210.642. APPLICABILITY OF SUBCHAPTER. (a)
Notwithstanding Section 2210.006, this subchapter applies to an
insurer that is:
(1) an insurer authorized to engage in the business of
insurance in this state that is required to be a member of the
association, including a farm mutual insurance company that is a
fronting insurer as defined by Section 221.001(c);
(2) a farm mutual insurance company that is not a
fronting insurer as defined by Section 221.001(c) only for purposes
of the collection of surcharges authorized by this subchapter;
(3) an unaffiliated eligible surplus lines insurer
writing the lines of business subject to a premium surcharge under
this subchapter;
(4) the association; and
(5) the FAIR Plan Association.
(b) A premium surcharge under this subchapter applies to:
(1) a policy written under the following lines of
insurance:
(A) fire and allied lines;
(B) farm and ranch owners; and
(C) residential property insurance; and
(2) the property insurance portion of a commercial
multiple peril insurance policy.
Sec. 2210.6425. CONSTRUCTION OF SUBCHAPTER. (a) This
subchapter may not be construed to require an insurer to be an
association member if the insurer is not otherwise required to be a
member under Section 2210.052.
(b) A farm mutual insurance company that is not a fronting
insurer as defined by Section 221.001(c) is not a member of the
association as a result of the company's collection of surcharges
authorized by this subchapter or for any other reason.
Sec. 2210.643. ANNUAL FINANCIAL REPORT BY COMMISSIONER.
The commissioner shall determine the amount available in the
catastrophe reserve trust fund as of December 31 of each year and
provide a written report to the governor, lieutenant governor, and
speaker of the house of representatives that includes:
(1) the amount available in the catastrophe reserve
trust fund; and
(2) information regarding the current financial
condition of the association.
Sec. 2210.6435. CONTINGENT HURRICANE SURCHARGES. (a) The
commissioner, in consultation with the board of directors, may
order a contingent hurricane surcharge as provided by this
subchapter only if the commissioner determines after a catastrophic
event that:
(1) the association has depleted its reserves, other
funds, and the catastrophe reserve trust fund; and
(2) the association has no other source of funding
reasonably available to provide adequate funding for the next
catastrophe year.
(b) The commissioner, in consultation with the board of
directors, shall set the contingent hurricane surcharge as a
percentage of premium to be collected by each insurer to which this
subchapter applies.
(c) The total amount authorized to be collected under this
section for any contingent hurricane surcharge may not exceed the
lesser of:
(1) the amount needed to recapitalize the catastrophe
reserve trust fund to $1 billion; or
(2) $1 billion.
(d) The contingent hurricane surcharge percentage must be
set in an amount sufficient to replenish the catastrophe reserve
trust fund to an aggregate amount of not more than $1 billion. The
commissioner may set the surcharge as a percentage of premium to
collect the needed aggregate amount over a period of time not to
exceed three years.
(e) The commissioner shall determine the period of time and
percentage to be applied subject to Subsection (d).
(f) A contingent hurricane surcharge authorized under this
section shall be assessed by insurers on all policyholders of
policies that are subject to this subchapter.
(g) A contingent hurricane surcharge under this subchapter
is a separate charge in addition to the premiums collected and is
not subject to premium tax or commissions.
(h) Failure by a policyholder to pay a contingent hurricane
surcharge constitutes failure to pay premium for purposes of policy
cancellation.
(i) A contingent hurricane surcharge is not refundable if
the policy is canceled or terminated.
Sec. 2210.644. CONTINGENT HURRICANE SURCHARGE PROCEEDS.
The proceeds of a contingent hurricane surcharge authorized under
this subchapter shall be deposited into the catastrophe reserve
trust fund.
Sec. 2210.6445. DISCLOSURE OF SURCHARGE. Each policy that
is assessed a surcharge under this subchapter shall contain the
following prominent disclosure in the documents attached to the
policy:
"A HURRICANE SURCHARGE HAS BEEN INCLUDED ON YOUR POLICY.
THIS SURCHARGE WILL BE USED TO PROVIDE FUNDS FOR THE TEXAS WINDSTORM
INSURANCE ASSOCIATION TO PAY FOR LOSSES AFTER A CATASTROPHIC EVENT,
INCLUDING A HURRICANE. THE SURCHARGE IS NOT REFUNDABLE IF YOU
CANCEL OR TERMINATE THIS POLICY."
Sec. 2210.645. EXEMPTION FROM TAXATION. A surcharge
collected under this subchapter is exempt from taxation by this
state or a municipality or other political subdivision of this
state.
Sec. 2210.6455. LIMITATION OF PERSONAL LIABILITY. The
association members, the insurers required to collect a surcharge
under this subchapter, members of the board of directors,
association employees, the commissioner, and department employees
are not personally liable as a result of exercising the rights and
responsibilities granted under this subchapter.
Sec. 2210.646. EXEMPTION FROM SURCHARGE. An insurer may
not collect a surcharge authorized under this subchapter on any
policy issued to this state, an agency of this state, or a political
subdivision of this state.
SECTION 1.14. Effective September 1, 2025, the following
provisions of the Insurance Code are repealed:
(1) Subchapter B-1, Chapter 2210; and
(2) Subchapter M, Chapter 2210.
SECTION 1.15. As soon as practicable after the effective
date of this Act and not later than December 1, 2023, the
commissioner of insurance shall adopt rules necessary to implement
Subchapters B-2 and M-2, Insurance Code, as added by this Act.
ARTICLE 2. CONFORMING AMENDMENTS
SECTION 2.01. Effective September 1, 2025, Section
2210.0081, Insurance Code, is amended to read as follows:
Sec. 2210.0081. CERTAIN ACTIONS BROUGHT AGAINST
ASSOCIATION BY COMMISSIONER. In an action brought by the
commissioner against the association under Chapter 441,[:
[(1) the association's inability to satisfy
obligations under Subchapter M related to the issuance of public
securities under this chapter constitutes a condition that makes
the association's continuation in business hazardous to the public
or to the association's policyholders for the purposes of Section
441.052;
[(2)] the time for the association to comply with the
requirements of supervision or for the conservator to complete the
conservator's duties, as applicable, is limited to three years from
the date the commissioner commences the action against the
association[; and
[(3) unless the commissioner takes further action
against the association under Chapter 441, as a condition of
release from supervision, the association must demonstrate to the
satisfaction of the commissioner that the association is able to
satisfy obligations under Subchapter M related to the issuance of
public securities under this chapter].
SECTION 2.02. (a) Section 2210.056(b), Insurance Code, is
amended to read as follows:
(b) The association's assets may not be used for or diverted
to any purpose other than to:
(1) satisfy, in whole or in part, the liability of the
association on claims made on policies written by the association;
(2) make investments authorized under applicable law;
(3) pay reasonable and necessary administrative
expenses incurred in connection with the operation of the
association and the processing of claims against the association;
(4) satisfy, in whole or in part, the obligations of
the association incurred in connection with Subchapters B-1, B-2,
J, [and] M, and M-2, including reinsurance, public securities, and
financial instruments; or
(5) make remittance under the laws of this state to be
used by this state to:
(A) pay claims made on policies written by the
association;
(B) purchase reinsurance covering losses under
those policies; or
(C) prepare for or mitigate the effects of
catastrophic natural events.
(b) Effective September 1, 2025, Sections 2210.056(b) and
(c), Insurance Code, are amended to read as follows:
(b) The association's assets may not be used for or diverted
to any purpose other than to:
(1) satisfy, in whole or in part, the liability of the
association on claims made on policies written by the association;
(2) make investments authorized under applicable law;
(3) pay reasonable and necessary administrative
expenses incurred in connection with the operation of the
association and the processing of claims against the association;
(4) satisfy, in whole or in part, the obligations of
the association incurred in connection with Subchapters B-2 [B-1],
J, and M-2 [M], including reinsurance[, public securities,] and
financial instruments; or
(5) make remittance under the laws of this state to be
used by this state to:
(A) pay claims made on policies written by the
association;
(B) purchase reinsurance covering losses under
those policies; or
(C) prepare for or mitigate the effects of
catastrophic natural events.
(c) On dissolution of the association, all assets of the
association[, other than assets pledged for the repayment of public
securities issued under this chapter,] revert to this state.
SECTION 2.03. (a) Section 2210.1052, Insurance Code, is
amended to read as follows:
Sec. 2210.1052. EMERGENCY MEETING. If the ultimate loss
estimate for an occurrence or series of occurrences made by the
chief financial officer or chief actuary of the association
indicates member insurers may be subject to an assessment under
Subchapter B-1 or B-2, the board of directors shall call an
emergency meeting to notify the member insurers about the
assessment.
(b) Effective September 1, 2025, Section 2210.1052,
Insurance Code, is amended to read as follows:
Sec. 2210.1052. EMERGENCY MEETING. If the ultimate loss
estimate for an occurrence or series of occurrences made by the
chief financial officer or chief actuary of the association
indicates member insurers may be subject to an assessment under
Subchapter B-2 [B-1], the board of directors shall call an
emergency meeting to notify the member insurers about the
assessment.
SECTION 2.04. Effective September 1, 2025, Section
2210.355(b), Insurance Code, is amended to read as follows:
(b) In adopting rates under this chapter, the following must
be considered:
(1) the past and prospective loss experience within
and outside this state of hazards for which insurance is made
available through the plan of operation, if any;
(2) expenses of operation, including acquisition
costs;
(3) a reasonable margin for profit and contingencies;
and
(4) [payment of public security obligations issued
under this chapter, including the additional amount of any debt
service coverage determined by the association to be required for
the issuance of marketable public securities; and
[(5)] all other relevant factors, within and outside
this state.
SECTION 2.05. (a) Section 2210.363(a), Insurance Code, is
amended to read as follows:
(a) The association may offer a person insured under this
chapter an actuarially justified premium discount on a policy
issued by the association, or an actuarially justified credit
against a surcharge assessed against the person, other than a
surcharge assessed under Subchapter M or M-2, if:
(1) the construction, alteration, remodeling,
enlargement, or repair of, or an addition to, insurable property
exceeds applicable building code standards set forth in the plan of
operation; or
(2) the person elects to purchase a binding
arbitration endorsement under Section 2210.554.
(b) Effective September 1, 2025, Section 2210.363(a),
Insurance Code, is amended to read as follows:
(a) The association may offer a person insured under this
chapter an actuarially justified premium discount on a policy
issued by the association, or an actuarially justified credit
against a surcharge assessed against the person, other than a
surcharge assessed under Subchapter M-2 [M], if:
(1) the construction, alteration, remodeling,
enlargement, or repair of, or an addition to, insurable property
exceeds applicable building code standards set forth in the plan of
operation; or
(2) the person elects to purchase a binding
arbitration endorsement under Section 2210.554.
SECTION 2.06. (a) Sections 2210.452(a) and (d), Insurance
Code, are amended to read as follows:
(a) The commissioner shall adopt rules under which the
association makes payments to the catastrophe reserve trust fund.
Except as otherwise specifically provided by this section, the
trust fund may be used only for purposes directly related to funding
the payment of insured losses, including:
(1) funding the obligations of the trust fund under
Subchapters [Subchapter] B-1 and B-2; and
(2) purchasing reinsurance or using alternative risk
financing mechanisms under Section 2210.453.
(d) The commissioner by rule shall establish the procedure
relating to the disbursement of money from the trust fund to
policyholders and for association administrative expenses directly
related to funding the payment of insured losses in the event of an
occurrence or series of occurrences within a catastrophe area that
results in a disbursement under Subchapter B-1 or B-2.
(b) Effective September 1, 2025, Sections 2210.452(a), (c),
and (d), Insurance Code, are amended to read as follows:
(a) The commissioner shall adopt rules under which the
association makes payments to the catastrophe reserve trust fund.
Except as otherwise specifically provided by this section, the
trust fund may be used only for purposes directly related to funding
the payment of insured losses, including:
(1) funding the obligations of the trust fund under
Subchapter B-2 [B-1]; and
(2) purchasing reinsurance or using alternative risk
financing mechanisms under Section 2210.453.
(c) At the end of each calendar year or policy year, the
association shall use the net gain from operations of the
association, including all premium and other revenue of the
association in excess of incurred losses and[,] operating expenses,
[public security obligations, and public security administrative
expenses,] to make payments to the trust fund, procure reinsurance,
or use alternative risk financing mechanisms, or to make payments
to the trust fund and procure reinsurance or use alternative risk
financing mechanisms.
(d) The commissioner by rule shall establish the procedure
relating to the disbursement of money from the trust fund to
policyholders and for association administrative expenses directly
related to funding the payment of insured losses in the event of an
occurrence or series of occurrences within a catastrophe area that
results in a disbursement under Subchapter B-2 [B-1].
SECTION 2.07. (a) Section 2210.453(c), Insurance Code, is
amended to read as follows:
(c) The attachment point for reinsurance purchased under
this section may not be less than the aggregate amount of all
funding available to the association under Subchapters
[Subchapter] B-1 and B-2.
(b) Effective September 1, 2025, Sections 2210.453(b) and
(c), Insurance Code, are amended to read as follows:
(b) The association shall maintain total available loss
funding in an amount not less than the probable maximum loss for the
association for a catastrophe year with a probability of one in 100.
If necessary, the required funding level shall be achieved through
the purchase of reinsurance or the use of alternative financing
mechanisms, or both, to operate in addition to or in concert with
the trust fund, [public securities,] financial instruments, and
assessments authorized by this chapter.
(c) The attachment point for reinsurance purchased under
this section may not be less than the aggregate amount of all
funding available to the association under Subchapter B-2 [B-1].
ARTICLE 3. TRANSITION AND SAVINGS PROVISIONS
SECTION 3.01. Notwithstanding the repeal by this Act of
Subchapters B-1 and M, Chapter 2210, Insurance Code, and other
changes in law made by this Act effective September 1, 2025:
(1) the payment of excess losses and operating
expenses of the Texas Windstorm Insurance Association incurred
before January 1, 2024, is governed by the law as it existed on the
effective date of this Act, and that law is continued in effect for
that purpose;
(2) the issuance of public securities to pay excess
losses and operating expenses of the Texas Windstorm Insurance
Association incurred before January 1, 2024, the use of the
proceeds of those securities, the repayment or refinancing of those
securities, and any other rights, obligations, or limitations with
respect to those securities and proceeds of those securities are
governed by the law as it existed on the effective date of this Act,
and that law is continued in effect for that purpose; and
(3) proceeds of any assessments made under Subchapter
B-1, Chapter 2210, Insurance Code, may not be included in reserves
available for a catastrophe year for purposes of Section 2210.082,
Insurance Code, as added by this Act, unless approved by the
commissioner of insurance.
ARTICLE 4. EFFECTIVE DATE
SECTION 4.01. Except as otherwise provided by this Act,
this Act takes effect September 1, 2023.