Bill Text: TX HB3960 | 2019-2020 | 86th Legislature | Comm Sub
Bill Title: Relating to rate filings by the Texas Windstorm Insurance Association.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2019-04-29 - Committee report sent to Calendars [HB3960 Detail]
Download: Texas-2019-HB3960-Comm_Sub.html
86R28201 PMO-F | |||
By: Hunter, Lozano, Herrero, Middleton | H.B. No. 3960 | ||
Substitute the following for H.B. No. 3960: | |||
By: Lucio III | C.S.H.B. No. 3960 |
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relating to rate filings by the Texas Windstorm Insurance | ||
Association. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2210.351(d), Insurance Code, is amended | ||
to read as follows: | ||
(d) The association may use a rate filed by the association | ||
without prior commissioner approval if: | ||
(1) the filing is made not later than the 30th day | ||
before the date of any use or delivery for use of the rate; | ||
(2) the filed rate does not exceed 102.5 [ |
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of the rate in effect on the date on which the filing is made; | ||
(3) the filed rate does not reflect a rate change for | ||
an individual rating class that is more than 2.5 [ |
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than the rate in effect for that rating class on the date on which | ||
the filing is made; and | ||
(4) the commissioner has not disapproved the filing in | ||
writing, advising of the reasons for the disapproval and the | ||
criteria the association is required to meet to obtain approval. | ||
SECTION 2. Section 2210.352(a-1), Insurance Code, is | ||
amended to read as follows: | ||
(a-1) The association may use a rate filed by the | ||
association under this section without prior commissioner approval | ||
if: | ||
(1) the filing is made not later than the 30th day | ||
before the date of any use or delivery for use of the rate; | ||
(2) the filed rate does not exceed 102.5 [ |
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of the rate used by the association in effect on the date on which | ||
the filing is made; and | ||
(3) the filed rate does not reflect a rate change for | ||
an individual rating class that is more than 2.5 [ |
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than the rate in effect for that rating class on the date on which | ||
the filing is made. | ||
SECTION 3. Chapter 2210, Insurance Code, is amended by | ||
adding Subchapter N-1 to read as follows: | ||
SUBCHAPTER N-1. LEGISLATIVE FUNDING AND FINANCIAL STRUCTURE | ||
OVERSIGHT BOARD | ||
Sec. 2210.661. DEFINITION. In this subchapter, "board" | ||
means the windstorm insurance legislative funding and financial | ||
structure oversight board. | ||
Sec. 2210.662. COMPOSITION OF BOARD. The board is composed | ||
of eight members as follows: | ||
(1) four members of the senate appointed by the | ||
lieutenant governor; and | ||
(2) four members of the house of representatives | ||
appointed by the speaker of the house of representatives. | ||
Sec. 2210.663. POWERS AND DUTIES OF BOARD. (a) The board | ||
shall: | ||
(1) gather information regarding: | ||
(A) how the association's current funding and | ||
financial structure operate; | ||
(B) how the catastrophic risk pools of other | ||
states operate; and | ||
(C) other information that the board considers | ||
necessary to prepare the report required by Section 2210.664; and | ||
(2) hold public meetings to hear testimony from | ||
experts, stakeholders, and other interested parties regarding | ||
recommendations and proposals for establishing and implementing a | ||
sustainable funding and financial structure for the association. | ||
(b) The board may request reports and other information as | ||
necessary to implement this subchapter from: | ||
(1) the department; | ||
(2) the association; and | ||
(3) experts, stakeholders, and other interested | ||
parties described by Subsection (a)(2). | ||
Sec. 2210.664. REPORT. (a) The board shall prepare a | ||
report of the board's findings regarding the current funding and | ||
financial structure of the association, problems with the funding | ||
and financial structure, and recommendations for legislative | ||
action related to the funding and financial structure and | ||
sustainability of the association. The report must include: | ||
(1) an analysis of the current funding and financial | ||
structure and sustainability of the association, including the | ||
association's reliance on debt and reinsurance; and | ||
(2) recommendations for legislative action necessary | ||
to: | ||
(A) address problems with the current funding and | ||
financial structure of the association; and | ||
(B) foster the stability and sustainability of | ||
the association. | ||
(b) Not later November 15, 2020, the board shall deliver the | ||
report prepared under Subsection (a) to: | ||
(1) the governor; | ||
(2) the lieutenant governor; and | ||
(3) the speaker of the house of representatives. | ||
Sec. 2210.665. EXPIRATION. This subchapter expires | ||
September 1, 2021. | ||
SECTION 4. Sections 2210.351(d) and 2210.352(a-1), | ||
Insurance Code, as amended by this Act, apply only to a rate filed | ||
by the Texas Windstorm Insurance Association with the Texas | ||
Department of Insurance on or after the effective date of this Act. | ||
A rate filed with the Texas Department of Insurance before the | ||
effective date of this Act is governed by the law as it existed | ||
immediately before that date, and that law is continued in effect | ||
for that purpose. | ||
SECTION 5. This Act takes effect December 1, 2019. |