Bill Text: TX HB3006 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to the use of assets of the Texas Windstorm Insurance Association.
Spectrum: Partisan Bill (Republican 63-0)
Status: (Introduced - Dead) 2013-04-09 - Left pending in committee [HB3006 Detail]
Download: Texas-2013-HB3006-Introduced.html
By: Bonnen of Brazoria | H.B. No. 3006 |
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relating to the use of assets of the Texas Windstorm Insurance | ||
Association. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sec. 2210.056. USE OF ASSOCIATION ASSETS. (a) | ||
The association's net earnings may not insure, in whole or in part, | ||
to the benefit of a private shareholder or individual. | ||
(b) The increase in the association's assets in any calendar | ||
year 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 incurred in that calendar year 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 incurred in that calendar | ||
year against the association; | ||
(4) satisfy, in whole or in part, the obligations of | ||
the association incurred in connection with Subchapters B-1, J, and | ||
M, including reinsurance, public securities, and financial | ||
instruments; or | ||
(5) make required 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. 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. |