This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.

 
 
  S.B. No. 1702
 
 
 
 
AN ACT
  relating to residential property insured by the Texas Windstorm
  Insurance Association.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (f), Section 2210.251, Insurance
  Code, is amended to read as follows:
         (f)  Notwithstanding any other provision of this section,
  insurance coverage for a residential structure [insured by the
  association as of September 1, 2009,] may be issued or renewed
  [continue coverage] through the association subject to the
  inspection requirements imposed under Section 2210.258, if
  applicable. This subsection expires December 31, 2015.
         SECTION 2.  Section 2210.258, Insurance Code, is amended to
  read as follows:
         Sec. 2210.258.  [MANDATORY] COMPLIANCE WITH BUILDING CODES;
  ELIGIBILITY. (a)  Except as provided by Subsection (c) and Section
  2210.2581 and notwithstanding [Notwithstanding] any other
  provision of this chapter, to be eligible for insurance through the
  association, all construction, alteration, remodeling,
  enlargement, and repair of, or addition to, any structure located
  in the catastrophe area that is begun on or after the effective date
  of Sections 5 through 49, H.B. No. 4409, Acts of the 81st
  Legislature, Regular Session, 2009, must be performed in compliance
  with the applicable building code standards, as set forth in the
  plan of operation.
         (b)  Except as provided by Subsection (c), the [The]
  association may not insure a structure described by Subsection (a)
  until:
               (1)  the structure has been inspected for compliance
  with the plan of operation in accordance with Section 2210.251(a);
  and
               (2)  a certificate of compliance has been issued for
  the structure in accordance with Section 2210.251(g).
         (c)  The association may insure a residential structure
  constructed, altered, remodeled, enlarged, repaired, or added to on
  or after June 19, 2009, that is not in compliance with the
  applicable building code standards, as set forth in the plan of
  operation, provided that:
               (1)  the structure had been insured on or after June 19,
  2009, by an insurer in the private market that canceled or
  nonrenewed the insurance coverage of the structure before December
  31, 2015;
               (2)  the applicant provides to the association proof
  that insurance coverage that was issued to the applicant or the
  previous insured for the structure was canceled or nonrenewed in
  the private market as described by Subdivision (1); and
               (3)  no construction, alteration, remodeling,
  enlargement, or repair of, or addition to, the structure occurred
  after cancellation or nonrenewal of the coverage and before
  submission of an application for coverage through the association.
         SECTION 3.  Subchapter F, Chapter 2210, Insurance Code, is
  amended by adding Section 2210.2581 to read as follows:
         Sec. 2210.2581.  MANDATORY COMPLIANCE WITH BUILDING
  STANDARDS; CERTAIN STRUCTURES. Except as provided by Section
  2210.251(d) and (e), and notwithstanding Section 2210.258 or any
  other provision of this chapter, on and after December 31, 2015, the
  association may not issue or renew insurance coverage for a
  structure unless the structure complies with the applicable
  building code standards in effect on the date the construction,
  alteration, remodeling, enlargement, or repair of, or addition to,
  the structure begins, as set forth in the plan of operation.
         SECTION 4.  Section 2210.259, Insurance Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  Except as provided by Subsection (a-1), an insurance
  policy insuring a [A] noncompliant residential structure under
  Section 2210.251(f) [insured by the association as of September 1,
  2009, under Section 2210.251(f) that had been approved for
  insurability under the approval process regulations in effect on
  September 1, 2009,] is subject to an annual premium surcharge in an
  amount equal to 15 percent of the premium for insurance coverage
  obtained through the association. The surcharge under this
  subsection applies to each policy issued or renewed by the
  association on or after the effective date of Sections 5 through 49,
  H.B. No. 4409, Acts of the 81st Legislature, Regular Session, 2009,
  and is due on the issuance or renewal of the policy.
         (a-1)  For a policy insuring a noncompliant residential
  structure eligible for coverage under Section 2210.258(c), the
  association shall charge:
               (1)  a premium based on the rate charged in the
  voluntary market for the portion of the canceled or nonrenewed
  policy that provides windstorm and hail insurance coverage for the
  applicable risk; and
               (2)  an annual premium surcharge in an amount equal to
  10 percent of that premium.
         SECTION 5.  Section 2210.260, Insurance Code, is repealed.
         SECTION 6.  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, 2013.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1702 passed the Senate on
  April 11, 2013, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendments on May 25, 2013, by the
  following vote: Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1702 passed the House, with
  amendments, on May 22, 2013, by the following vote: Yeas 134,
  Nays 11, three present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor