Bill Text: TX HB2785 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to an insurance policyholders' bill of rights in connection with policies issued by the Texas Windstorm Insurance Association.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2013-04-09 - Left pending in committee [HB2785 Detail]
Download: Texas-2013-HB2785-Introduced.html
| 83R10496 PMO-D | ||
| By: Smithee | H.B. No. 2785 | |
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| relating to an insurance policyholders' bill of rights in | ||
| connection with policies issued by the Texas Windstorm Insurance | ||
| Association. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter E, Chapter 2210, Insurance Code, is | ||
| amended by adding Section 2210.2051 to read as follows: | ||
| Sec. 2210.2051. REQUIRED POLICY PROVISIONS: POLICYHOLDER | ||
| BILL OF RIGHTS. (a) The association must include in each windstorm | ||
| and hail insurance policy issued by the association a | ||
| policyholders' bill of rights. The bill of rights must be printed on | ||
| the declarations page of the policy and must include a statement | ||
| disclosing as of the date of issuance of the policy: | ||
| (1) the sources of funds, including cash reserves, the | ||
| catastrophe reserve trust fund balance, and public securities | ||
| proceeds, immediately available to pay claims during the policy | ||
| period; | ||
| (2) the estimated total exposure of the association | ||
| during the policy period; | ||
| (3) the amount of reinsurance purchased or that the | ||
| association intends to purchase to cover losses occurring during | ||
| the policy period; | ||
| (4) a projection by the Texas Public Finance Authority | ||
| regarding the marketability of public securities issued or that may | ||
| be issued under this chapter to fund payment of claims during the | ||
| policy period; | ||
| (5) any outstanding risk that may financially impact | ||
| the association's ability to pay claims; | ||
| (6) an estimate of probable maximum loss exposure for | ||
| the association in the event of a 100-year storm occurring during | ||
| the policy period; and | ||
| (7) an explanation of the claims payment process if | ||
| financial resources available to the association are insufficient | ||
| to pay claims during the policy period. | ||
| (b) The association must disclose on the declarations page | ||
| of each windstorm and hail insurance policy issued by the | ||
| association that in the event financial resources available to the | ||
| association are insufficient to pay claims under policies issued by | ||
| the association during the policy period: | ||
| (1) the state is not legally obligated to pay the | ||
| claims; and | ||
| (2) the payment of the claims is not guaranteed by the | ||
| state. | ||
| SECTION 2. This Act applies only to an insurance policy that | ||
| is delivered, issued for delivery, or renewed on or after January 1, | ||
| 2014. A policy delivered, issued for delivery, or renewed before | ||
| January 1, 2014, is governed by the law as it existed immediately | ||
| before the effective date of this Act, and that law is continued in | ||
| effect for that purpose. | ||
| SECTION 3. This Act takes effect September 1, 2013. | ||
