Bill Text: TX HB3011 | 2013-2014 | 83rd Legislature | Introduced


Bill Title: Relating to the use of assets of the Texas Windstorm Insurance Association.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-03-18 - Referred to Insurance [HB3011 Detail]

Download: Texas-2013-HB3011-Introduced.html
 
 
  By: Bonnen of Brazoria H.B. No. 3011
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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. 2210.452.  ESTABLISHMENT AND USE OF TRUST
  FUND. (a) The commissioner shall adopt rules under which the
  association makes payments to the catastrophe reserve trust fund.
  The trust fund may be used only to fund  the obligations of the
  trust fund under Subchapter B-1.
         (b)  All money, including investment income, deposited in
  the trust fund constitutes state funds until disbursed as provided
  by this chapter and commissioner rules. The comptroller shall hold
  the money outside the state treasury on behalf of, and with legal
  title in, the department. The department shall keep and maintain
  the trust fund in accordance with this chapter and commissioner
  rules. The comptroller, as custodian of the trust fund, shall
  administer the trust fund strictly and solely as provided by this
  chapter and commissioner rules.
         (c)  At the end of each calendar year or policy year, the
  association shall use the calendar year net gain from operations of
  the association, including all premium and other revenue of the
  association in excess of incurred losses, including loss adjustment
  expenses, operating expenses, public security obligations, and
  public security administrative expenses incurred in that calendar
  year, to make payments to the trust fund, to procure reinsurance, or
  to make payments to the trust fund and to procure reinsurance.
         (d)  The commissioner by rule shall establish the procedure
  relating to the disbursement of money from the trust fund to
  policyholders in the event of an occurrence or series of
  occurrences within a catastrophe area that results in a
  disbursement under Subchapter B-1.
         (e)  The trust fund may be terminated only by law.  On
  termination of the trust fund, all assets of the trust fund revert
  to the state to provide funding for the mitigation and preparedness
  plan established under Section 2210.454.
         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.
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