87R8210 SMT-D
 
  By: Hunter, Canales, Morrison, Lucio III, H.B. No. 3810
      Middleton, et al.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of the Texas Windstorm Insurance
  Association to raise premium rates on association policies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2210.351, Insurance Code, is amended by
  amending Subsection (d) and adding Subsection (f) to read as
  follows:
         (d)  The association may use a rate filed by the association
  without prior commissioner approval if:
               (1)  the filing is made not later than the 30th day
  before the date of any use or delivery for use of the rate;
               (2)  the filed rate does not exceed [105 percent of] the
  rate in effect on the date on which the filing is made; and
               (3)  [the filed rate does not reflect a rate change for
  an individual rating class that is 10 percent higher than the rate
  in effect for that rating class on the date on which the filing is
  made; and
               [(4)]  the commissioner has not disapproved the filing
  in writing, advising of the reasons for the disapproval and the
  criteria the association is required to meet to obtain approval.
         (f)  The association may not file a rate under this section
  that exceeds the rate in effect on the date on which the filing is
  made unless two-thirds of the board of directors votes to approve
  the rate.
         SECTION 2.  Section 2210.352, Insurance Code, is amended by
  amending Subsection (a-1) and adding Subsection (a-3) to read as
  follows:
         (a-1)  The association may use a rate filed by the
  association under this section without prior commissioner approval
  if:
               (1)  the filing is made not later than the 30th day
  before the date of any use or delivery for use of the rate; and
               (2)  the filed rate does not exceed [105 percent of] the
  rate used by the association in effect on the date on which the
  filing is made[; and
               [(3)  the filed rate does not reflect a rate change for
  an individual rating class that is 10 percent higher than the rate
  in effect for that rating class on the date on which the filing is
  made].
         (a-3)  The association may not file a rate under this section
  that exceeds the rate in effect on the date on which the filing is
  made unless two-thirds of the board of directors votes to approve
  the rate.
         SECTION 3.  The change in law made by this Act applies only
  to a rate filed by the Texas Windstorm Insurance Association with
  the Texas Department of Insurance on or after the effective date of
  this Act. A rate filed with the Texas Department of Insurance
  before the effective date of this Act is governed by the law as it
  existed immediately before that date, and that law is continued in
  effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2021.