Bill Text: TX HB2408 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to the composition of the board of directors of the Texas Windstorm Insurance Association.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-04-22 - Left pending in committee [HB2408 Detail]

Download: Texas-2015-HB2408-Introduced.html

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84R7154 SCL-D
By: Herrero H.B. No. 2408

A BILL TO BE ENTITLED
AN ACT
relating to the composition of the board of directors of the Texas
Windstorm Insurance Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2210.102(a), (c), (f), and (g),
Insurance Code, are amended to read as follows:
(a) The board of directors is composed of 11 [nine] members
appointed by the governor [commissioner] in accordance with this
section.
(c) Six [Four] members must, as of the date of the
appointment, reside in the first tier coastal counties. One [At
least one] of the members appointed under this subsection must be a
property and casualty agent who is licensed under this code and is
not a captive agent. Other members appointed under this subsection:
(1) must be association policyholders nominated by the
office of public insurance counsel; and
(2) may not be property and casualty agents.
(f) Insurers who are members of the association shall
nominate, from among those members, persons to fill any vacancy in
the four board of director seats reserved for representatives of
the insurance industry. The board of directors shall solicit
nominations from the members and submit the nominations to the
governor [commissioner]. The nominee slate submitted to the
governor [commissioner] under this subsection must include at least
three more names than the number of vacancies. The governor
[commissioner] shall appoint replacement insurance industry
representatives from the nominee slate.
(g) The governor [commissioner] shall appoint one person to
serve as a nonvoting member of the board to advise the board
regarding issues relating to the inspection process. The governor
[commissioner] may give preference in an appointment under this
subsection to a person who is a qualified inspector under Section
2210.254. The nonvoting member appointed under this subsection
[section] must:
(1) be an engineer licensed by, and in good standing
with, the Texas Board of Professional Engineers;
(2) reside in a first tier coastal county; and
(3) be knowledgeable of, and have professional
expertise in, wind-related design and construction practices in
coastal areas that are subject to high winds and hurricanes.
SECTION 2. Sections 2210.103(a) and (c), Insurance Code,
are amended to read as follows:
(a) Members of the board of directors serve two-year
[three-year staggered] terms[, with the terms of three members
expiring on the third Tuesday of March of each year].
(c) A member of the board of directors may be removed by the
governor [commissioner] with cause stated in writing and posted on
the association's website. The governor [commissioner] shall
appoint a replacement in the manner provided by Section 2210.102
for a member who leaves or is removed from the board of directors.
SECTION 3. (a) The board of directors of the Texas
Windstorm Insurance Association established under Section
2210.102, Insurance Code, as that section existed before amendment
by this Act, is abolished effective December 1, 2015.
(b) The governor shall appoint the members of the board of
directors of the Texas Windstorm Insurance Association under
Section 2210.102, Insurance Code, as amended by this Act, not later
than December 1, 2015.
(c) The term of a person who is serving as a member of the
board of directors of the Texas Windstorm Insurance Association
immediately before the abolition of that board under Subsection (a)
of this section expires on December 1, 2015. Such a person is
eligible for appointment by the governor to the new board of
directors of the Texas Windstorm Insurance Association, subject to
the requirements of Section 2210.102, Insurance Code, as amended by
this Act.
SECTION 4. This Act takes effect September 1, 2015.