Bill Text: TX SB1842 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the operation of the Texas Windstorm Insurance Association and to the resolution of certain disputes concerning claims made to that association.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-04-06 - Left pending in committee [SB1842 Detail]
Download: Texas-2011-SB1842-Introduced.html
By: Fraser | S.B. No. 1842 | |
|
||
|
||
relating to the operation of the Texas Windstorm Insurance | ||
Association and to the resolution of certain disputes concerning | ||
claims made to that association. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 83.002, Insurance Code, is amended by | ||
adding Subsection (c) to read as follows: | ||
(c) This chapter also applies to: | ||
(1) a person appointed as a qualified inspector under | ||
Section 2210.254 or 2210.255; and | ||
(2) a person acting as a qualified inspector under | ||
Section 2210.254 or 2210.255 without being appointed as a qualified | ||
inspector under either of those sections. | ||
SECTION 2. Section 541.152, Insurance Code, is amended by | ||
amending Subsection (b) and adding Subsection (c) to read as | ||
follows: | ||
(b) Except as provided by Subsection (c), on [ |
||
by the trier of fact that the defendant knowingly committed the act | ||
complained of, the trier of fact may award an amount not to exceed | ||
three times the amount of actual damages. | ||
(c) Subsection (b) does not apply to an action under this | ||
subchapter brought against the Texas Windstorm Insurance | ||
Association by a person who is insured under Chapter 2210. | ||
SECTION 3. Subchapter A, Chapter 2210, Insurance Code, is | ||
amended by adding Section 2210.010 to read as follows: | ||
Sec. 2210.010. EXPERT PANEL. (a) The commissioner shall | ||
appoint a panel of experts to advise the commissioner concerning | ||
the manner in which, following a storm, the association should | ||
evaluate the extent to which a loss to insurable property was | ||
incurred as a result of wind, waves, tidal surges, rising waters not | ||
caused by waves or surges, and wind-driven rain associated with the | ||
storm. The commissioner shall appoint one member of the panel to | ||
serve as the presiding officer of the panel. | ||
(b) To be a member of the panel, a person must have | ||
professional expertise in, and be knowledgeable concerning, the | ||
geography of the seacoast territory, the meteorological patterns | ||
common in the seacoast territory, the scientific basis for | ||
meteorological patterns in coastal areas, or the technology | ||
necessary to evaluate the geography of, or meteorological patterns | ||
common to, the seacoast territory. | ||
(c) The panel shall meet at the call of the commissioner or | ||
the call of the presiding officer of the panel. | ||
(d) The panel shall collect and evaluate the data necessary | ||
to perform the panel's general duties under Subsection (a). | ||
(e) Immediately following a storm, for geographic areas or | ||
regions designated by the commissioner, the panel shall recommend | ||
to the commissioner standardized data necessary to evaluate the | ||
extent to which a loss to insurable property was incurred as a | ||
result of wind, waves, tidal surges, rising waters not caused by | ||
waves or surges, and wind-driven rain associated with the storm, | ||
including wind speed, total rainfall, and the extent of wave action | ||
or tidal surges. | ||
(f) After consideration of the recommendations made by the | ||
panel under Subsection (e), the commissioner by rule shall adopt | ||
standardized data as part of the formula that the association will | ||
use to settle claims following the storm from which the | ||
standardized data recommendations were derived. | ||
SECTION 4. Section 2210.072(b), Insurance Code, is amended | ||
to read as follows: | ||
(b) Public securities described by Subsection (a) shall be | ||
issued as necessary in a principal amount not to exceed $1 billion | ||
per occurrence or series of occurrences in a calendar year that | ||
results in insured losses. | ||
SECTION 5. Section 2210.073(b), Insurance Code, is amended | ||
to read as follows: | ||
(b) Public securities described by Subsection (a) may be | ||
issued as necessary in a principal amount not to exceed $1 billion | ||
per occurrence or series of occurrences in a calendar year that | ||
results in insured losses. If the losses are paid with public | ||
securities described by this section, the public securities shall | ||
be repaid in the manner prescribed by Subchapter M. | ||
SECTION 6. Section 2210.074(b), Insurance Code, is amended | ||
to read as follows: | ||
(b) Public securities described by Subsection (a) may be | ||
issued as necessary in a principal amount not to exceed $500 million | ||
per occurrence or series of occurrences in a calendar year that | ||
results in insured losses. If the losses are paid with public | ||
securities described by this section, the public securities shall | ||
be repaid in the manner prescribed by Subchapter M through member | ||
assessments as provided by this section. The association shall | ||
notify each member of the association of the amount of the member's | ||
assessment under this section. The proportion of the losses | ||
allocable to each insurer under this section shall be determined in | ||
the manner used to determine each insurer's participation in the | ||
association for the year under Section 2210.052. A member of the | ||
association may not recoup an assessment paid under this subsection | ||
through a premium surcharge or tax credit. | ||
SECTION 7. Section 2210.105, Insurance Code, is amended by | ||
amending Subsection (b) and adding Subsections (b-1), (e), and (f) | ||
to read as follows: | ||
(b) Except for a closed meeting authorized by Subchapter D, | ||
Chapter 551, Government Code, a meeting of the board of directors or | ||
of the members of the association is open to[ |
||
[ |
||
|
||
[ |
||
(b-1) A meeting of the board of directors or the members of | ||
the association, including a closed meeting authorized by | ||
Subchapter D, Chapter 551, Government Code, is open to the | ||
commissioner or the commissioner's designated representative. | ||
(e) The association shall: | ||
(1) broadcast live on the association's Internet | ||
website all meetings of the board of directors, other than closed | ||
meetings; and | ||
(2) maintain on the association's Internet website an | ||
archive of meetings of the board of directors. | ||
(f) A recording of a meeting must be maintained in the | ||
archive required under Subsection (e) through and including the | ||
second anniversary of the meeting. | ||
SECTION 8. Subchapter C, Chapter 2210, Insurance Code, is | ||
amended by adding Section 2210.108 to read as follows: | ||
Sec. 2210.108. OPEN MEETINGS AND OPEN RECORDS. Except as | ||
specifically provided by this chapter or another law, the | ||
association is subject to Chapters 551 and 552, Government Code. | ||
SECTION 9. Section 2210.152, Insurance Code, is amended by | ||
adding Subsection (c) to read as follows: | ||
(c) The plan of operation shall require the association to | ||
use the standardized data recommendations adopted by the | ||
commissioner under Section 2210.010(f) in evaluating the extent to | ||
which a loss to insurable property is incurred as a result of wind, | ||
waves, tidal surges, rising waters not caused by waves or surges, or | ||
wind-driven rain associated with a storm. | ||
SECTION 10. Section 2210.203, Insurance Code, is amended by | ||
amending Subsection (a-1) and adding Subsection (a-2) to read as | ||
follows: | ||
(a-1) [ |
||
|
||
|
||
|
||
if all or any part of the property to which this subsection applies | ||
is located in Zone V or another similar zone with an additional | ||
hazard associated with storm waves, as defined by the National | ||
Flood Insurance Program, [ |
||
|
||
policy for initial or renewal coverage unless evidence is submitted | ||
to the association that the property to be covered under the policy | ||
is also covered by a flood insurance policy issued under the | ||
National Flood Insurance Program. This subsection does not apply | ||
to property for which flood insurance is not available under the | ||
National Flood Insurance Program [ |
||
(a-2) An agent offering or selling a Texas windstorm and | ||
hail insurance policy [ |
||
|
||
required under Subsection (a-1) to a [ |
||
that coverage is available. | ||
SECTION 11. Section 2210.204(e), Insurance Code, is amended | ||
to read as follows: | ||
(e) For cancellation of insurance coverage under this | ||
section, the minimum retained premium in the plan of operation must | ||
be for a period of not less than 90 [ |
||
specified in the plan of operation that reflect a significant | ||
change in the exposure or the policyholder concerning the insured | ||
property, including: | ||
(1) the purchase of similar coverage in the voluntary | ||
market; | ||
(2) sale of the property to an unrelated party; | ||
(3) death of the policyholder; or | ||
(4) total loss of the property. | ||
SECTION 12. Subchapter E, Chapter 2210, Insurance Code, is | ||
amended by adding Section 2210.205 to read as follows: | ||
Sec. 2210.205. REQUIRED POLICY PROVISION: DEADLINE FOR | ||
FILING CLAIM. A windstorm and hail insurance policy issued by the | ||
association must require an insured to file a claim under the policy | ||
not later than the first anniversary of the date on which the damage | ||
or loss that is the basis of the claim occurs. | ||
SECTION 13. Section 2210.254, Insurance Code, is amended by | ||
adding Subsection (e) to read as follows: | ||
(e) The department may establish an annual renewal period | ||
for persons appointed as qualified inspectors. | ||
SECTION 14. Subchapter F, Chapter 2210, Insurance Code, is | ||
amended by adding Section 2210.2551 to read as follows: | ||
Sec. 2210.2551. EXCLUSIVE ENFORCEMENT AUTHORITY; RULES. | ||
(a) The department has exclusive authority over all matters | ||
relating to the appointment and oversight of qualified inspectors | ||
for purposes of this chapter. | ||
(b) The commissioner by rule shall establish criteria to | ||
ensure that a person seeking appointment as a qualified inspector | ||
under this subchapter, including an engineer seeking appointment | ||
under Section 2210.255, possesses the knowledge, understanding, | ||
and professional competence to perform windstorm inspections under | ||
this chapter and to comply with other requirements of this chapter. | ||
SECTION 15. The heading to Section 2210.256, Insurance | ||
Code, is amended to read as follows: | ||
Sec. 2210.256. DISCIPLINARY PROCEEDINGS REGARDING | ||
APPOINTED INSPECTORS AND CERTAIN OTHER PERSONS. | ||
SECTION 16. Section 2210.256, Insurance Code, is amended by | ||
adding Subsection (a-2) to read as follows: | ||
(a-2) In addition to any other action authorized under this | ||
section, the commissioner ex parte may enter an emergency cease and | ||
desist order under Chapter 83 against a qualified inspector, or a | ||
person acting as a qualified inspector, if: | ||
(1) the commissioner believes that: | ||
(A) the qualified inspector has: | ||
(i) through submitting or failing to submit | ||
to the department sealed plans, designs, calculations, or other | ||
substantiating information, failed to demonstrate that a structure | ||
or a portion of a structure subject to inspection meets the | ||
requirements of this chapter and department rules; or | ||
(ii) refused to comply with requirements | ||
imposed under this chapter or department rules; or | ||
(B) the person acting as a qualified inspector is | ||
acting without appointment as a qualified inspector under Section | ||
2210.254 or 2210.255; and | ||
(2) the commissioner determines that the conduct | ||
described by Subdivision (1) is fraudulent or hazardous or creates | ||
an immediate danger to the public. | ||
SECTION 17. Section 2210.258(b), Insurance Code, is amended | ||
to read as follows: | ||
(b) The association may not insure a structure described by | ||
Subsection (a) until: | ||
(1) the structure has been inspected for compliance | ||
with the plan of operation in accordance with Section 2210.251(a); | ||
and | ||
(2) except as provided by Section 2210.260, a | ||
certificate of compliance has been issued for the structure in | ||
accordance with Section 2210.251(g). | ||
SECTION 18. Subchapter F, Chapter 2210, Insurance Code, is | ||
amended by adding Section 2210.260 to read as follows: | ||
Sec. 2210.260. ALTERNATIVE ELIGIBILITY FOR COVERAGE. (a) | ||
On and after September 1, 2011, a person who has an insurable | ||
interest in insurable property may obtain insurance coverage | ||
through the association for a residential structure without | ||
obtaining a certificate of compliance under Section 2210.251(g) if: | ||
(1) within the 12-month period preceding the date of | ||
the application for coverage by the association, the structure was | ||
insured on an annual basis under a residential property insurance | ||
policy that included windstorm and hail coverage; | ||
(2) the insurer that issued the coverage described by | ||
Subdivision (1) has ceased to: | ||
(A) provide windstorm and hail insurance under | ||
the policy; or | ||
(B) issue residential property insurance | ||
policies in the portion of the catastrophe area in which the | ||
structure is located; and | ||
(3) the applicant for coverage: | ||
(A) complies with: | ||
(i) the flood insurance requirement of | ||
Section 2210.203(a-1), if applicable; | ||
(ii) the mandatory building code | ||
requirement of Section 2210.258(a); and | ||
(iii) all other association underwriting | ||
requirements, including maintaining the structure in an insurable | ||
condition and paying premiums in the manner required by the | ||
association; and | ||
(B) provides evidence of declination as required | ||
by Section 2210.202(a). | ||
(b) Coverage issued under this section may be renewed by the | ||
association only once. | ||
SECTION 19. Section 2210.355, Insurance Code, is amended by | ||
amending Subsection (i) and adding Subsections (j), (k), and (l) to | ||
read as follows: | ||
(i) The association shall [ |
||
territories and shall [ |
||
accordance with Subsections (j) and (k) [ |
||
|
||
|
||
[ |
||
|
||
[ |
||
|
||
[ |
||
|
||
[ |
||
|
||
(j) Notwithstanding Section 2210.351, the association may | ||
use rate relativities for rating territories that subdivide a | ||
county without prior commissioner approval if the resulting rate | ||
for any subdivision in the county: | ||
(1) is not more than 15 percent greater than the | ||
resulting rate used in any other subdivision in that county for | ||
identical coverage for insureds having risk characteristics that | ||
are identical except for rating territory; and | ||
(2) is not unfairly discriminatory. | ||
(k) The association may use rate relativities for rating | ||
territories that subdivide a county only with prior commissioner | ||
approval if the resulting rate for any subdivision in the county is | ||
not described by Subsection (j)(1). | ||
(l) A rate relativity described by Subsection (k) must be | ||
based on sound actuarial principles supported by data filed with | ||
the department, including reasonable output from recognized | ||
catastrophe models, and must produce rates that comply with the | ||
statutory and regulatory requirements of this chapter. | ||
SECTION 20. The heading to Subchapter H, Chapter 2210, | ||
Insurance Code, is amended to read as follows: | ||
SUBCHAPTER H. RATES; DISCOUNTS AND CREDITS | ||
SECTION 21. Subchapter H, Chapter 2210, Insurance Code, is | ||
amended by adding Section 2210.363 to read as follows: | ||
Sec. 2210.363. PREMIUM DISCOUNTS; SURCHARGE CREDITS. (a) | ||
The association may offer a person insured under this chapter a | ||
premium discount on a policy issued by the association, or a credit | ||
against any surcharge assessed against the person, if: | ||
(1) the person elects a voluntary binding arbitration | ||
endorsement under Section 2210.555; or | ||
(2) the construction, alteration, remodeling, | ||
enlargement, or repair of, or an addition to, insurable property | ||
exceeds applicable building code standards set forth in the plan of | ||
operation. | ||
(b) The commissioner shall adopt rules necessary to | ||
implement and enforce this section. | ||
SECTION 22. Section 2210.502, Insurance Code, is amended by | ||
adding Subsection (e) to read as follows: | ||
(e) Notwithstanding Subsection (a), the maximum liability | ||
limit described by Section 2210.501(b)(1) may not exceed $500,000 | ||
if all or any part of the property on which the dwelling, including | ||
an individually owned townhouse, is located in a geographic area | ||
with a hazard associated with storm waves. | ||
SECTION 23. Section 2210.551, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 2210.551. APPEAL BY THE ASSOCIATION. [ |
||
|
||
|
||
|
||
|
||
[ |
||
|
||
|
||
|
||
[ |
||
commissioner with respect to a ruling, order, or determination of | ||
the commissioner, the association may, not later than the 30th day | ||
after the date of the action, make a written request to the | ||
commissioner for a hearing on the action. | ||
(b [ |
||
the hearing, the commissioner shall conduct a hearing on the | ||
association's request or the appeal from an act, ruling, or | ||
decision of the association, not later than the 30th day after the | ||
date of receipt of the request or appeal. | ||
[ |
||
|
||
|
||
|
||
|
||
(c [ |
||
hearing, the commissioner shall affirm, reverse, or modify the | ||
commissioner's previous action or the act, ruling, or decision | ||
appealed to the commissioner. Pending the hearing and decision, | ||
the commissioner may suspend or postpone the effective date of the | ||
previous action or of the act, ruling, or decision appealed to the | ||
commissioner. | ||
(d [ |
||
|
||
district court in the county in which the covered property is | ||
located or a district court in Travis County. | ||
(e [ |
||
the procedures established under Subchapter D, Chapter 36. | ||
SECTION 24. Section 2210.552, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 2210.552. DEFINITIONS. "Damages" means all claims | ||
under common law, statutory and equitable causes of action, for | ||
actual damages including economic and non-economic damages, and all | ||
forms of additional damages including without limitation | ||
additional damages, knowing damages, punitive damages, trebling of | ||
damages of any kind, penalties, prejudgment interest, post judgment | ||
interest, attorneys fees, litigation costs, costs of court, and all | ||
other damages of any kind or character. | ||
[ |
||
|
||
|
||
|
||
|
||
[ |
||
|
||
[ |
||
|
||
[ |
||
|
||
[ |
||
|
||
|
||
|
||
[ |
||
|
||
|
||
|
||
SECTION 25. Subchapter L, Chapter 2210, Insurance Code, is | ||
amended by adding Sections 2210.553, 2210.554, 2210.555, 2210.556, | ||
2210.557, 2210.558, 2210.559, 2210.560, 2210.561,and 2210.562 to | ||
read as follows: | ||
Sec. 2210.553. APPEALS TO BOARD OF DIRECTORS. A person | ||
aggrieved by a decision of the association relating to eligibility | ||
for or amount of benefits payable to the person, or for damages | ||
claimed by a person related to the eligibility for or amount of | ||
benefits payable to a person may appeal the decision to the | ||
Executive Director. An appeal to the Executive Director shall be | ||
filed no more than 30 days after the date of the decision is made for | ||
which review is sought. This subchapter provides the sole remedy | ||
for the aggrieved person. | ||
Sec. 2210.554. HEARING BY STATE OFFICE OF ADMINISTRATIVE | ||
HEARINGS. The executive director or a person designated by the | ||
executive director shall refer an appeal under this section to the | ||
State Office of Administrative Hearings to conduct a hearing as | ||
provided by Chapter 2001, Government Code. | ||
Sec. 2210.555. CONTESTED CASE. An appeal under this | ||
section is a contested case as defined by Chapter 2001, Government | ||
Code. An aggrieved person appealing a decision under this section | ||
has the burden of proof on all issues, including any affirmative | ||
defense. | ||
Sec. 2210.556. FINAL DECISION. A decision by the State | ||
Office of Administrative Hearings is final within the meaning of | ||
Sec. 2210.557 | ||
Sec. 2210.557. NEGOTIATED SETTLEMENT. (a) Notwithstanding | ||
this Section, the association and a person aggrieved by a decision | ||
of the association may at any time informally negotiate a | ||
settlement of a claim. | ||
(b) A negotiated settlement must be approved by the board of | ||
directors if the settlement amount is in excess of $25,000, or | ||
includes consideration for attorney fees. | ||
(c) A settlement negotiated under this section may not | ||
exceed the applicable maximum liability limit established under the | ||
policy. | ||
Sec. 2210.558. JUDICIAL REVIEW. (a) A person aggrieved by | ||
a final decision of the State Office of Administrative Hearings in | ||
a contested case under this section is entitled to judicial review | ||
in accordance with Chapter 2001, Government Code. | ||
(b) The venue for appeal from a final decision of the State | ||
Office of Administrative Hearings under this section is in | ||
district court in Travis County. | ||
(c) The review on appeal is governed by the substantial | ||
evidence rule as described by Section 2001.174, Government Code. | ||
Sec. 2210.559. PLAN OF OPERATION. The board of directors | ||
may submit proposed changes to the plan of operation to implement | ||
this subchapter. | ||
Sec. 2210.560. NOTICE; INSPECTION. (a) As a prerequisite | ||
to filing a an appeal under Sec. 2210.552 of this subchapter, a | ||
person covered by an association policy shall give written notice | ||
to the association at least 60 days before filing the appeal | ||
advising the association in reasonable detail of the person's | ||
specific complaint and the amount of damage and expenses, | ||
including attorneys' fees, if any, reasonably incurred to date by | ||
the person in asserting the claim against the association. During | ||
the 60-day period a written request to inspect, in a reasonable | ||
manner and at a reasonable time and place, the property that is the | ||
subject of the person's action or claim may be presented to the | ||
person. | ||
(b) If the giving of 60 days' written notice is rendered | ||
impracticable by reason of the necessity of filing a claim in order | ||
to prevent the expiration of the statute of limitations or if the | ||
person's claim is asserted by way of counterclaim, the notice | ||
provided for in Subsection (a) of this section is not required, but | ||
the tender provided for by this subchapter may be made within 60 | ||
days after filing the appeal or counterclaim. | ||
(c) If the association does not receive written notice, as | ||
required by Subsection (a), then the association may file a plea in | ||
abatement not later than the 30th day after the date the person | ||
files an original answer in the venue in which the appeal is | ||
pending. This subsection does not apply if Subsection (b) applies. | ||
(d) The State Office of Administrative Hearings shall abate | ||
the appeal if the administrative law judge, after a hearing, finds | ||
that the association is entitled to an abatement because notice was | ||
not provided as required by this section. An appeal is | ||
automatically abated without the order of the administrative law | ||
judge beginning on the 11th day after the date a plea in abatement | ||
is filed under Subsection (c) if the plea in abatement: | ||
(1) is verified and alleges that the association did | ||
not receive the written notice as required by Subsection (a); and | ||
(2) is not controverted by an affidavit filed by the | ||
person before the 11th day after the date on which the plea in | ||
abatement is filed. | ||
(e) An abatement under Subsection (d) continues until the | ||
60th day after the date that written notice is served in compliance | ||
with Subsection (a). | ||
Sec. 2210.561 (a) A person must file an appeal based in | ||
whole or in part on an association policy not later than two years | ||
after the day the cause of action accrues. The cause of action | ||
accrues on the date of the loss. | ||
(b) Civil Practices and Remedies Code Sec. 33.004 (e) does | ||
not apply to a claim, civil action or appeal against or involving | ||
the association, an officer agent or employee of the association, | ||
or anyone acting on behalf of the association. | ||
(c) A person is barred from filing an appeal or an original | ||
civil action against the association, an officer, agent or employee | ||
of the association, or anyone acting on behalf of association more | ||
than four years of the date of the loss. This subsection is | ||
intended as a statute of repose so that all claims of any type or | ||
description must be brought within four years or they are time | ||
barred. | ||
(d) An appeal must be filed with the association within one | ||
year of the date the right to file the appeal accrued. | ||
Sec. 2210.562. STATE OF DISASTER. (a) When the Governor | ||
issues a Declaration of State of Disaster pursuant to Gov. Code Sec. | ||
418.014 then the Commissioner of Insurance shall toll the | ||
application of Chapters 541 and 542 to the association. (b) The | ||
Commissioner's authority under this section is limited (1) to the | ||
geographical area identified in the Declaration and (2) for the | ||
duration of the Declaration. | ||
SECTION 26. Section 2210.604, Insurance Code, is amended by | ||
amending Subsection (b) and adding Subsection (d) to read as | ||
follows: | ||
(b) The association shall specify in the association's | ||
request to the board the maximum principal amount of the public | ||
securities and the maximum term of the public securities. The | ||
maximum principal requested under this subsection may not exceed | ||
the amount of public securities the association determines to be | ||
marketable. | ||
(d) If the amount of marketable Class 1 public securities is | ||
insufficient to pay the excess losses for which the securities are | ||
issued, marketable Class 2 public securities may be issued. If the | ||
amount of marketable Class 2 public securities is insufficient to | ||
pay the excess losses for which the securities are issued, | ||
marketable Class 3 public securities may be issued. | ||
SECTION 27. Sections 2210.613(b), (c), and (d), Insurance | ||
Code, are amended to read as follows: | ||
(b) Seventy percent of the cost of the public securities | ||
shall be paid by a [ |
||
under this section in an amount set by the commissioner. On | ||
approval by the commissioner, each insurer, the association, and | ||
the Texas FAIR Plan Association shall assess, as provided by this | ||
section, a premium surcharge to each policyholder of a policy that | ||
is in effect on or after the 180th day after the date the | ||
commissioner issues notice of the approval of the public securities | ||
[ |
||
surcharge must be set in an amount sufficient to pay, for the | ||
duration of the issued public securities, all debt service not | ||
already covered by available funds and all related expenses on the | ||
public securities. | ||
(c) The premium surcharge under Subsection (b) shall be | ||
assessed on all policyholders of policies that cover [ |
||
|
||
catastrophe area, including automobiles principally garaged in a | ||
catastrophe area. The premium surcharge shall be assessed on [ |
||
each Texas windstorm and hail insurance policy and each property | ||
and casualty insurance policy, including an automobile insurance | ||
policy, issued for automobiles and other property located in the | ||
catastrophe area. A premium surcharge under Subsection (b) applies | ||
to: | ||
(1) all policies written under the following lines of | ||
insurance: | ||
(A) fire and allied lines; | ||
(B) farm and ranch owners; | ||
(C) residential property insurance; | ||
(D) private passenger automobile liability and | ||
physical damage insurance; and | ||
(E) commercial passenger automobile liability | ||
and physical damage insurance; and | ||
(2) the property insurance portion of a commercial | ||
multiple peril insurance [ |
||
|
||
|
||
|
||
|
||
|
||
(d) A premium surcharge under Subsection (b) is a separate | ||
[ |
||
not subject to premium tax or commissions. Failure by a | ||
policyholder to pay the surcharge constitutes failure to pay | ||
premium for purposes of policy cancellation. | ||
SECTION 28. Section 2210.6135(a), Insurance Code, is | ||
amended to read as follows: | ||
(a) The association shall pay Class 3 public securities | ||
issued under Section 2210.074 as provided by this section through | ||
member assessments. The association, for the payment of the | ||
losses, shall assess the members of the association an amount not to | ||
exceed $500 million per occurrence or series of occurrences that | ||
results in insured losses in a calendar year [ |
||
|
||
association of the amount of the member's assessment under this | ||
section. | ||
SECTION 29. (a) The commissioner of insurance shall | ||
appoint an advisory committee to advise the Texas Department of | ||
Insurance and Texas Windstorm Insurance Association concerning | ||
appropriate building code standards to be used by the association | ||
in the performance of its duties under Chapter 2210, Insurance | ||
Code. The commissioner shall designate one member of the committee | ||
to serve as the presiding officer of the committee. | ||
(b) The commissioner of insurance shall ensure that the | ||
following groups or interests are represented on the advisory | ||
committee: | ||
(1) insurers that write windstorm insurance in the | ||
private windstorm insurance market in this state; | ||
(2) policyholders of windstorm insurance issued both | ||
by the association and by insurers in the private windstorm | ||
insurance market in this state; and | ||
(3) building and construction professionals, | ||
including qualified inspectors appointed under Sections 2210.254 | ||
and 2210.255, Insurance Code. | ||
(c) The advisory committee shall submit a report to the | ||
association, for inclusion in the association's biennial report to | ||
be submitted on or before December 31, 2012, under Section | ||
2210.0025, Insurance Code, containing recommendations concerning | ||
appropriate building code standards to be used by the association | ||
in the performance of its duties under Chapter 2210, Insurance | ||
Code. | ||
(d) Chapter 2110, Government Code, does not apply to the | ||
size, composition, or duration of the advisory committee or to the | ||
appointment of the committee's presiding officer. | ||
(e) The advisory committee shall meet at least once each | ||
year and may meet at other times at the call of the commissioner of | ||
insurance or the committee's presiding officer. | ||
(f) The advisory committee may meet by telephone conference | ||
call, video conference call, or other similar audiovisual | ||
telecommunication. | ||
(g) This section expires January 1, 2013. | ||
SECTION 30. (a) The change in law made by this Act applies | ||
only to an appeal from a decision of the Texas Windstorm Insurance | ||
Association made on or after January 1, 2012. An appeal from a | ||
decision of that association made before January 1, 2012, applies | ||
to the law as it existed immediately before the effective date of | ||
this Act, and that law is continued in effect for that purpose. | ||
(b) This Act, applies to all claims filed with the Texas | ||
Windstorm Insurance Association on or after the effective date of | ||
the Act. | ||
SECTION 31. The Texas Windstorm Insurance Association | ||
shall, not later than January 1, 2012, amend the association's plan | ||
of operation as necessary to conform to the changes in law made by | ||
this Act. | ||
SECTION 32. 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, 2011. |