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AN ACT
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relating to the powers and duties of the Texas Windstorm Insurance |
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Association and the windstorm insurance legislative oversight |
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board and to certain studies by the board relating to the |
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association and the Fair Access to Insurance Requirements Plan. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2210.351, Insurance Code, is amended by |
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amending Subsection (d) and adding Subsection (f) to read as |
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follows: |
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(d) The association may use a rate filed by the association |
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without prior commissioner approval if: |
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(1) the filing is made not later than the 30th day |
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before the date of any use or delivery for use of the rate; |
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(2) the filed rate does not exceed [105 percent of] the |
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rate in effect on the date on which the filing is made; and |
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(3) [the filed rate does not reflect a rate change for |
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an individual rating class that is 10 percent higher than the rate |
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in effect for that rating class on the date on which the filing is |
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made; and |
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[(4)] the commissioner has not disapproved the filing |
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in writing, advising of the reasons for the disapproval and the |
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criteria the association is required to meet to obtain approval. |
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(f) The association may not file a rate under this section |
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that exceeds the rate in effect on the date on which the filing is |
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made unless two-thirds of the board of directors votes to approve |
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the rate. |
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SECTION 2. Section 2210.352, Insurance Code, is amended by |
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amending Subsection (a-1) and adding Subsection (a-3) to read as |
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follows: |
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(a-1) The association may use a rate filed by the |
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association under this section without prior commissioner approval |
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if: |
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(1) the filing is made not later than the 30th day |
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before the date of any use or delivery for use of the rate; and |
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(2) the filed rate does not exceed [105 percent of] the |
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rate used by the association in effect on the date on which the |
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filing is made[; and |
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[(3) the filed rate does not reflect a rate change for |
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an individual rating class that is 10 percent higher than the rate |
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in effect for that rating class on the date on which the filing is |
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made]. |
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(a-3) The association may not file a rate under this section |
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that exceeds the rate in effect on the date on which the filing is |
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made unless two-thirds of the board of directors votes to approve |
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the rate. |
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SECTION 3. Subchapter N, Chapter 2210, Insurance Code, is |
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amended by adding Section 2210.655 to read as follows: |
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Sec. 2210.655. TEMPORARY POWERS AND DUTIES OF BOARD; STUDY |
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OF FUNDING AND FUNDING STRUCTURE. (a) The board shall: |
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(1) gather information regarding: |
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(A) how the association's current funding and |
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funding structure operate; |
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(B) how the catastrophic risk pools of other |
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states operate; and |
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(C) other information that the board considers |
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necessary to prepare the information required by Subsection (c); |
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and |
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(2) hold public meetings to hear testimony from |
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experts, stakeholders, and other interested parties regarding |
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recommendations and proposals for establishing and implementing |
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sustainable funding and a sustainable funding structure for the |
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association. |
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(b) The board may request reports and other information as |
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necessary to implement this section from: |
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(1) the department; |
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(2) the association; and |
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(3) experts, stakeholders, and other interested |
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parties described by Subsection (a)(2). |
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(c) The board shall include in the report described by |
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Section 2210.654 the board's findings regarding the current funding |
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and funding structure of the association, problems with the funding |
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and funding structure, and recommendations for legislative action |
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related to the funding, funding structure, and sustainability of |
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the association. The report must include: |
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(1) an analysis of the current funding, funding |
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structure, and sustainability of the association, including the |
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association's reliance on debt and reinsurance; and |
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(2) recommendations for legislative action necessary |
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to: |
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(A) address problems with the current funding and |
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funding structure of the association; and |
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(B) foster the stability and sustainability of |
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the association. |
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(d) This section expires September 1, 2023. |
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SECTION 4. Sections 14(c) and (d), Chapter 790 (H.B. 1900), |
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Acts of the 86th Legislature, Regular Session, 2019, are amended to |
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read as follows: |
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(c) Not later than January 1, 2023 [2021], the windstorm |
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insurance legislative oversight board shall submit to the governor, |
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the lieutenant governor, the speaker of the house of |
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representatives, and the Texas Department of Insurance a written |
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report of a [the] study conducted under this section. The report |
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must include the findings and legislative recommendations of the |
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board. |
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(d) This section expires January 1, 2024 [2022]. |
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SECTION 5. Sections 2210.351 and 2210.352, Insurance Code, |
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as amended by this Act, apply only to a rate filed by the Texas |
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Windstorm Insurance Association with the Texas Department of |
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Insurance on or after the effective date of this Act. A rate filed |
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with the Texas Department of Insurance before the effective date of |
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this Act is governed by the law as it existed immediately before |
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that date, and that law is continued in effect for that purpose. |
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SECTION 6. This Act takes effect September 1, 2021. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1448 passed the Senate on |
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April 14, 2021, by the following vote: Yeas 31, Nays 0; and that |
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the Senate concurred in House amendment on May 13, 2021, by the |
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following vote: Yeas 25, Nays 5. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1448 passed the House, with |
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amendment, on April 30, 2021, by the following vote: Yeas 138, |
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Nays 3, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |