Bill Text: TX SB2556 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the abolition of the Texas Windstorm Insurance Association and coverage for windstorm by certain insurers.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-23 - Referred to Business & Commerce [SB2556 Detail]
Download: Texas-2023-SB2556-Introduced.html
| By: Middleton | S.B. No. 2556 | |
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| relating to the abolition of the Texas Windstorm Insurance | ||
| Association and coverage for windstorm by certain insurers. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Title 10, Subtitle G, is amended by adding | ||
| Chapter 2210A, Insurance Code, to read as follows: | ||
| CHAPTER 2210A. TEXAS WINDSTORM INSURANCE | ||
| Sec. 2210A.001. WINDSTORM COVERAGE REQUIRED. (a) This | ||
| chapter applies to all property insurers authorized to engage in | ||
| the business of property and casualty insurance in this state. | ||
| (b) As a condition of the insurer's authority to engage in | ||
| the business of insurance in this state, each insurer, described by | ||
| Subsection (a), must include coverage for windstorm and hail in | ||
| each policy written for property located within: | ||
| (A) Aransas County; | ||
| (B) Brazoria County; | ||
| (C) Calhoun County; | ||
| (D) Cameron County; | ||
| (E) Chambers County; | ||
| (F) Galveston County; | ||
| (G) Jefferson County; | ||
| (H) Kenedy County; | ||
| (I) Kleberg County; | ||
| (J) Matagorda County; | ||
| (K) Nueces County; | ||
| (L) Refugio County; | ||
| (M) San Patricio County; or | ||
| (N) Willacy County. | ||
| (c) Coverage provided under Subsection (b) must be provided | ||
| at no additional cost to the insured. Costs incurred by insurers | ||
| under this section shall not be recouped through a premium | ||
| surcharge. | ||
| SECTION 2. Chapter 2210, Insurance Code, is repealed. | ||
| SECTION 3. (a) The Texas Windstorm Insurance Association | ||
| is abolished but continues in existence until September 1, 2024, | ||
| for purpose of satisfying or transferring obligations according to | ||
| Subsection (b). | ||
| (b) The Texas Windstorm Insurance Association shall, no | ||
| later than September 1, 2024, liquidate all assets and utilize the | ||
| funds to satisfy obligations. | ||
| (c) Any obligations not satisfied by Subsection (b) shall be | ||
| paid from pro rata member assessments. The proportion of each | ||
| member's assessment shall be determined in the manner used to | ||
| determine each insurer's participation in the association for the | ||
| year under Section 2210.052, Insurance Code, as that section | ||
| existed before the effective date of this Act. | ||
| SECTION 4. 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 on September 1, 2023. | ||
