Bill Text: TX SB2556 | 2023-2024 | 88th Legislature | Introduced


Bill Title: Relating to the abolition of the Texas Windstorm Insurance Association and coverage for windstorm by certain insurers.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-03-23 - Referred to Business & Commerce [SB2556 Detail]

Download: Texas-2023-SB2556-Introduced.html
 
 
  By: Middleton S.B. No. 2556
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the abolition of the Texas Windstorm Insurance
  Association and coverage for windstorm by certain insurers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 10, Subtitle G, is amended by adding
  Chapter 2210A, Insurance Code, to read as follows:
  CHAPTER 2210A. TEXAS WINDSTORM INSURANCE
         Sec. 2210A.001.  WINDSTORM COVERAGE REQUIRED. (a) This
  chapter applies to all property insurers authorized to engage in
  the business of property and casualty insurance in this state.
         (b)  As a condition of the insurer's authority to engage in
  the business of insurance in this state, each insurer, described by
  Subsection (a), must include coverage for windstorm and hail in
  each policy written for property located within:
                     (A)  Aransas County;
                     (B)  Brazoria County;
                     (C)  Calhoun County;
                     (D)  Cameron County;
                     (E)  Chambers County;
                     (F)  Galveston County;
                     (G)  Jefferson County;
                     (H)  Kenedy County;
                     (I)  Kleberg County;
                     (J)  Matagorda County;
                     (K)  Nueces County;
                     (L)  Refugio County;
                     (M)  San Patricio County; or
                     (N)  Willacy County.
         (c)  Coverage provided under Subsection (b) must be provided
  at no additional cost to the insured. Costs incurred by insurers
  under this section shall not be recouped through a premium
  surcharge. 
         SECTION 2.  Chapter 2210, Insurance Code, is repealed.
         SECTION 3.  (a)  The Texas Windstorm Insurance Association
  is abolished but continues in existence until September 1, 2024,
  for purpose of satisfying or transferring obligations according to
  Subsection (b).
         (b)  The Texas Windstorm Insurance Association shall, no
  later than September 1, 2024, liquidate all assets and utilize the
  funds to satisfy obligations.
         (c)  Any obligations not satisfied by Subsection (b) shall be
  paid from pro rata member assessments. The proportion of each
  member's assessment shall be determined in the manner used to
  determine each insurer's participation in the association for the
  year under Section 2210.052, Insurance Code, as that section
  existed before the effective date of this Act.
         SECTION 4.  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 on September 1, 2023.
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