Bill Text: TX SB1702 | 2013-2014 | 83rd Legislature | Enrolled
Bill Title: Relating to residential property insured by the Texas Windstorm Insurance Association.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2013-06-14 - Effective immediately [SB1702 Detail]
Download: Texas-2013-SB1702-Enrolled.html
S.B. No. 1702 |
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relating to residential property insured by the Texas Windstorm | ||
Insurance Association. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subsection (f), Section 2210.251, Insurance | ||
Code, is amended to read as follows: | ||
(f) Notwithstanding any other provision of this section, | ||
insurance coverage for a residential structure [ |
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inspection requirements imposed under Section 2210.258, if | ||
applicable. This subsection expires December 31, 2015. | ||
SECTION 2. Section 2210.258, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 2210.258. [ |
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ELIGIBILITY. (a) Except as provided by Subsection (c) and Section | ||
2210.2581 and notwithstanding [ |
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provision of this chapter, to be eligible for insurance through the | ||
association, all construction, alteration, remodeling, | ||
enlargement, and repair of, or addition to, any structure located | ||
in the catastrophe area that is begun on or after the effective date | ||
of Sections 5 through 49, H.B. No. 4409, Acts of the 81st | ||
Legislature, Regular Session, 2009, must be performed in compliance | ||
with the applicable building code standards, as set forth in the | ||
plan of operation. | ||
(b) Except as provided by Subsection (c), the [ |
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association may not insure a structure described by Subsection (a) | ||
until: | ||
(1) the structure has been inspected for compliance | ||
with the plan of operation in accordance with Section 2210.251(a); | ||
and | ||
(2) a certificate of compliance has been issued for | ||
the structure in accordance with Section 2210.251(g). | ||
(c) The association may insure a residential structure | ||
constructed, altered, remodeled, enlarged, repaired, or added to on | ||
or after June 19, 2009, that is not in compliance with the | ||
applicable building code standards, as set forth in the plan of | ||
operation, provided that: | ||
(1) the structure had been insured on or after June 19, | ||
2009, by an insurer in the private market that canceled or | ||
nonrenewed the insurance coverage of the structure before December | ||
31, 2015; | ||
(2) the applicant provides to the association proof | ||
that insurance coverage that was issued to the applicant or the | ||
previous insured for the structure was canceled or nonrenewed in | ||
the private market as described by Subdivision (1); and | ||
(3) no construction, alteration, remodeling, | ||
enlargement, or repair of, or addition to, the structure occurred | ||
after cancellation or nonrenewal of the coverage and before | ||
submission of an application for coverage through the association. | ||
SECTION 3. Subchapter F, Chapter 2210, Insurance Code, is | ||
amended by adding Section 2210.2581 to read as follows: | ||
Sec. 2210.2581. MANDATORY COMPLIANCE WITH BUILDING | ||
STANDARDS; CERTAIN STRUCTURES. Except as provided by Section | ||
2210.251(d) and (e), and notwithstanding Section 2210.258 or any | ||
other provision of this chapter, on and after December 31, 2015, the | ||
association may not issue or renew insurance coverage for a | ||
structure unless the structure complies with the applicable | ||
building code standards in effect on the date the construction, | ||
alteration, remodeling, enlargement, or repair of, or addition to, | ||
the structure begins, as set forth in the plan of operation. | ||
SECTION 4. Section 2210.259, Insurance Code, is amended by | ||
amending Subsection (a) and adding Subsection (a-1) to read as | ||
follows: | ||
(a) Except as provided by Subsection (a-1), an insurance | ||
policy insuring a [ |
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Section 2210.251(f) [ |
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amount equal to 15 percent of the premium for insurance coverage | ||
obtained through the association. The surcharge under this | ||
subsection applies to each policy issued or renewed by the | ||
association on or after the effective date of Sections 5 through 49, | ||
H.B. No. 4409, Acts of the 81st Legislature, Regular Session, 2009, | ||
and is due on the issuance or renewal of the policy. | ||
(a-1) For a policy insuring a noncompliant residential | ||
structure eligible for coverage under Section 2210.258(c), the | ||
association shall charge: | ||
(1) a premium based on the rate charged in the | ||
voluntary market for the portion of the canceled or nonrenewed | ||
policy that provides windstorm and hail insurance coverage for the | ||
applicable risk; and | ||
(2) an annual premium surcharge in an amount equal to | ||
10 percent of that premium. | ||
SECTION 5. Section 2210.260, Insurance Code, is repealed. | ||
SECTION 6. 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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1702 passed the Senate on | ||
April 11, 2013, by the following vote: Yeas 31, Nays 0; and that | ||
the Senate concurred in House amendments on May 25, 2013, by the | ||
following vote: Yeas 30, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1702 passed the House, with | ||
amendments, on May 22, 2013, by the following vote: Yeas 134, | ||
Nays 11, three present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |