Bill Text: TX SB2305 | 2019-2020 | 86th Legislature | Comm Sub
Bill Title: Relating to certain functions of the Texas Windstorm Insurance Association and a study regarding a merger of the Texas Windstorm Insurance Association and the Fair Access to Insurance Requirements Plan; authorizing a penalty.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2019-05-21 - Placed on General State Calendar [SB2305 Detail]
Download: Texas-2019-SB2305-Comm_Sub.html
86R30838 JES-F | ||
By: Taylor | S.B. No. 2305 | |
(Bonnen of Galveston) | ||
Substitute the following for S.B. No. 2305: No. |
|
||
|
||
relating to certain functions of the Texas Windstorm Insurance | ||
Association and a study regarding a merger of the Texas Windstorm | ||
Insurance Association and the Fair Access to Insurance Requirements | ||
Plan; authorizing a penalty. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2210.251(g), Insurance Code, is amended | ||
to read as follows: | ||
(g) A certificate of compliance issued by the department [ |
||
|
||
the applicable building code under the plan of operation. The | ||
certificate is evidence of insurability of the structure by the | ||
association. | ||
SECTION 2. Section 2210.2515, Insurance Code, is amended by | ||
amending Subsections (c) and (e) and adding Subsections (i) and (j) | ||
to read as follows: | ||
(c) A person may apply to the department [ |
||
form prescribed by the department for a certificate of compliance | ||
for a completed improvement. Except as provided by Subsection (e), | ||
the department [ |
||
compliance for a completed improvement if a professional engineer | ||
licensed by the Texas Board of Professional Engineers inspects the | ||
completed improvement in accordance with commissioner rule and | ||
affirms the improvement complies [ |
||
[ |
||
|
||
|
||
with the applicable building code under the plan of operation and, | ||
if a design of the completed improvement affixed with the seal of a | ||
licensed professional engineer was submitted, that the improvement | ||
conforms to the design[ |
||
[ |
||
|
||
|
||
(e) Except as otherwise provided by this subchapter, the | ||
department may not issue a certificate of compliance under | ||
Subsection (c) or (d) if within six months after the date of the | ||
final inspection of the structure that is the subject of the | ||
application, the department has not received: | ||
(1) fully completed forms prescribed by the department | ||
demonstrating that the improvement satisfies the requirements | ||
under Subsection (c) or Subsection (d)(1) or (2), as applicable; | ||
and | ||
(2) payment in full of all inspection fees, including | ||
fees for prior department inspections, owed to the department. | ||
(i) The department may rescind a certificate of compliance | ||
issued under this section if the department finds that the | ||
certificate was improperly issued. | ||
(j) If the department finds that a professional engineer has | ||
failed to provide complete and accurate information in connection | ||
with an application for a certificate of compliance under this | ||
section, the department may submit a formal complaint to the Texas | ||
Board of Professional Engineers recommending license revocation. | ||
If the Texas Board of Professional Engineers finds that the | ||
engineer provided complete and accurate information in connection | ||
with the application for a certificate of compliance, the | ||
department may not refuse to issue the certificate of compliance | ||
solely on the basis of that engineer's conduct. | ||
SECTION 3. Subchapter H, Chapter 2210, Insurance Code, is | ||
amended by adding Section 2210.3511 to read as follows: | ||
Sec. 2210.3511. PUBLIC ACCESS TO RATE ADEQUACY ANALYSIS. | ||
(a) The association shall make the association's rate adequacy | ||
analysis publicly available on its Internet website for at least 14 | ||
days before the date the board of directors votes on the submission | ||
of a proposed rate filing based on the analysis to the department. | ||
The rate adequacy analysis must include: | ||
(1) all user selected hurricane model input | ||
assumptions; and | ||
(2) output data: | ||
(A) with the same content and in the same format | ||
that is customarily provided to: | ||
(i) the association by hurricane modelers; | ||
and | ||
(ii) the department by the association; and | ||
(B) in a searchable electronic format that allows | ||
for efficient analysis and is sufficiently detailed to allow the | ||
historical experience in this state to be compared to results | ||
produced by the model. | ||
(b) The association shall accept public comment with | ||
respect to the association's rate adequacy analysis at a public | ||
meeting of the board of directors before the board of directors | ||
votes on the submission of a proposed rate filing to the department. | ||
SECTION 4. (a) The windstorm insurance legislative | ||
oversight board established under Subchapter N, Chapter 2210, | ||
Insurance Code, shall conduct a study to evaluate a merger of the | ||
Texas Windstorm Insurance Association established under Chapter | ||
2210, Insurance Code, and the Fair Access to Insurance Requirements | ||
Plan established under Chapter 2211, Insurance Code. | ||
(b) The evaluation must consider: | ||
(1) the affordability and availability of windstorm | ||
and hail insurance throughout this state and, in particular, in the | ||
seacoast territory as defined by Section 2210.003, Insurance Code; | ||
(2) the affordability and availability of residential | ||
property insurance throughout this state and, in particular, in | ||
underserved areas as defined by Section 2211.001, Insurance Code; | ||
(3) the advisability of merging the Texas Windstorm | ||
Insurance Association and the Fair Access to Insurance Requirements | ||
Plan to provide windstorm and hail and residential property | ||
insurance in this state; | ||
(4) any efficiencies or inefficiencies from a merger | ||
of the Texas Windstorm Insurance Association and the Fair Access to | ||
Insurance Requirements Plan; | ||
(5) the funding necessary to ensure that windstorm and | ||
hail and residential property insurance are available after the | ||
merger of the Texas Windstorm Insurance Association and the Fair | ||
Access to Insurance Requirements Plan; and | ||
(6) any other items the windstorm insurance | ||
legislative oversight board determines are relevant to a merger of | ||
the Texas Windstorm Insurance Association and the Fair Access to | ||
Insurance Requirements Plan. | ||
(c) Not later than January 1, 2021, the windstorm insurance | ||
legislative oversight board shall submit to the governor, the | ||
lieutenant governor, the speaker of the house of representatives, | ||
and the Texas Department of Insurance a written report of the study | ||
conducted under this section. The report must include the findings | ||
and legislative recommendations of the board. | ||
(d) This section expires January 1, 2022. | ||
SECTION 5. Section 2210.2515(f), Insurance Code, is | ||
repealed. | ||
SECTION 6. (a) Section 2210.251(g), Insurance Code, as | ||
amended by this Act, does not affect the status of a certificate of | ||
compliance issued by the Texas Windstorm Insurance Association | ||
before January 1, 2019, or after January 1, 2019, in response to an | ||
application made before that date for purposes of establishing | ||
evidence of insurability. | ||
(b) Section 2210.2515, Insurance Code, as amended by this | ||
Act, applies only to an application for a certificate of compliance | ||
made on or after January 1, 2020. An application for a certificate | ||
of compliance made before January 1, 2020, 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. | ||
(c) Section 2210.3511, Insurance Code, as added by this Act, | ||
applies only to a rate adequacy analysis made in relation to a rate | ||
filing made on or after the effective date of this Act. | ||
SECTION 7. This Act takes effect September 1, 2019. |