88R9605 JES-D
 
  By: Herrero H.B. No. 1991
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the board of directors of the Texas Windstorm Insurance
  Association.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 2210.102(a), (c), (c-1), (f), and (g),
  Insurance Code, are amended to read as follows:
         (a)  The board of directors is composed of 11 [nine] members
  appointed by the governor [commissioner] in accordance with this
  section.
         (c)  Five [Three] members must, as of the date of the
  appointment, reside in the first tier coastal counties. Each of the
  following regions must be represented by a member residing in the
  region and appointed under this subsection:
               (1)  the region consisting of Cameron, Kenedy, Kleberg,
  and Willacy Counties;
               (2)  the region consisting of Aransas, Calhoun, Nueces,
  Refugio, and San Patricio Counties; and
               (3)  the region consisting of Brazoria, Chambers,
  Galveston, Jefferson, and Matagorda Counties and any part of Harris
  County designated as a catastrophe area under Section 2210.005.
         (c-1)  One of the members appointed under Subsection (c) must
  be a property and casualty agent who is licensed under this code and
  is not a captive agent. Other members appointed under that
  subsection:
               (1)  must be association policyholders nominated by the
  office of public insurance counsel; and
               (2)  may not be property and casualty agents.
         (f)  Insurers who are members of the association shall
  nominate, from among those members, persons to fill any vacancy in
  the three board of director seats reserved for representatives of
  the insurance industry. The board of directors shall solicit
  nominations from the members and submit the nominations to the
  governor [commissioner]. The nominee slate submitted to the
  governor [commissioner] under this subsection must include at least
  three more names than the number of vacancies. The governor
  [commissioner] may appoint replacement insurance industry
  representatives from the nominee slate.
         (g)  Members appointed to the board of directors under
  Subsections (c) and (d), other than the property and casualty agent
  [member] appointed under Subsection (c-1), must represent the
  general public in the regions described by those subsections. A
  person may not be appointed to represent the general public under
  Subsection (c) or (d) if the person or the person's spouse:
               (1)  is employed by or participates in the management
  of a business entity or other organization:
                     (A)  operating in the property and casualty
  insurance industry in this state;
                     (B)  receiving money from the association, other
  than insurance claim payments; or
                     (C)  receiving money from association
  policyholders with respect to the policyholders' claims;
               (2)  owns or controls, directly or indirectly, more
  than a 10 percent interest in a business entity or other
  organization:
                     (A)  operating in the property and casualty
  insurance industry in this state;
                     (B)  receiving money from the association, other
  than insurance claim payments; or
                     (C)  receiving money from association
  policyholders with respect to the policyholders' claims; or
               (3)  uses or receives a substantial amount of tangible
  goods, services, or money from the association, other than:
                     (A)  insurance claim payments; or
                     (B)  compensation or reimbursement authorized by
  law for the board members' membership, attendance, or expenses.
         SECTION 2.  Section 2210.103, Insurance Code, is amended to
  read as follows:
         Sec. 2210.103.  TERMS.  (a)  Members of the board of
  directors serve two-year [three-year staggered] terms[, with the
  terms of three members expiring on the third Tuesday of March of
  each year].
         (b)  A person may serve on the board of directors for not more
  than three consecutive full terms, not to exceed six [nine] years.
         (c)  A member of the board of directors may be removed by the
  governor [commissioner] with cause stated in writing and posted on
  the association's website.  The governor [commissioner] shall
  appoint a replacement in accordance with Section 2210.102 for a
  member who leaves or is removed from the board of directors.
         SECTION 3.  (a) The board of directors of the Texas
  Windstorm Insurance Association established under Section
  2210.102, Insurance Code, as that section existed before amendment
  by this Act, is abolished effective December 1, 2023.
         (b)  The governor shall appoint the members of the board of
  directors of the Texas Windstorm Insurance Association under
  Section 2210.102, Insurance Code, as amended by this Act, not later
  than December 1, 2023.
         (c)  The term of a person who is serving as a member of the
  board of directors of the Texas Windstorm Insurance Association
  immediately before the abolition of that board under Subsection (a)
  of this section expires on December 1, 2023. Such a person is
  eligible for appointment by the governor to the new board of
  directors of the Texas Windstorm Insurance Association, subject to
  the requirements of Section 2210.102, Insurance Code, as amended by
  this Act.
         SECTION 4.  This Act takes effect September 1, 2023.