Bill Text: TX HB3632 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to policyholder approval for certain windstorm and hail insurance rate changes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-04-09 - Left pending in committee [HB3632 Detail]
Download: Texas-2019-HB3632-Introduced.html
| 86R11355 JES-D | ||
| By: Herrero | H.B. No. 3632 | |
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| relating to policyholder approval for certain windstorm and hail | ||
| insurance rate changes. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter H, Chapter 2210, Insurance Code, is | ||
| amended by adding Section 2210.3591 to read as follows: | ||
| Sec. 2210.3591. POLICYHOLDER APPROVAL REQUIRED FOR CERTAIN | ||
| RATE CHANGES. (a) The board of directors may not approve a rate | ||
| that reflects an average rate change that is more than five percent | ||
| higher than the rate in effect on the date the board proposes the | ||
| rate unless the proposed rate change has been approved by a majority | ||
| of the policyholders of the association. | ||
| (b) The commissioner shall establish the procedure by which | ||
| policyholders are notified of and vote on a proposed rate change | ||
| under this section. | ||
| SECTION 2. Not later than January 1, 2020, the commissioner | ||
| of insurance shall adopt rules necessary to implement Section | ||
| 2210.3591, Insurance Code, as added by this Act. | ||
| SECTION 3. The change in law made by this Act applies only | ||
| to a rate approved by the board of directors of the Texas Windstorm | ||
| Insurance Association on or after January 1, 2020. | ||
| SECTION 4. This Act takes effect September 1, 2019. | ||
