Bill Text: TX HB3038 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to reinsurance for catastrophic losses provided to the Texas Windstorm Insurance Association by member insurers.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-04-09 - Left pending in committee [HB3038 Detail]

Download: Texas-2019-HB3038-Introduced.html
  86R12953 SMT-D
 
  By: Middleton H.B. No. 3038
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to reinsurance for catastrophic losses provided to the
  Texas Windstorm Insurance Association by member insurers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter J, Chapter 2210, Insurance Code, is
  amended by adding Section 2210.4522 to read as follows:
         Sec. 2210.4522.  REINSURANCE REQUIRED. (a)  Notwithstanding
  any other provision of this chapter, a member insurer shall provide
  to the association reinsurance in lieu of reinsurance purchased
  under Section 2210.453 at no cost to the association. The
  proportion of the losses that exceed the attachment point for the
  provided reinsurance is calculated in the manner used to determine
  each insurer's participation in the association for the year under
  Section 2210.052.
         (b)  A member insurer may purchase reinsurance to cover the
  proportion of losses for which the insurer is responsible under
  Subsection (a).
         SECTION 2.  The Texas Windstorm Insurance Association shall
  amend the association's plan of operation to conform to the changes
  in law made by this Act not later than the 60th day after the
  effective date of this Act.
         SECTION 3.  This Act takes effect September 1, 2019.
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