Bill Text: TX SR113 | 2011 | 82nd Legislature 1st Special | Enrolled

Texas Senate Resolution 113 (Prior Session Legislation)

Bill Title: Suspending limitations on conference committee jurisdiction, H.B. No. 3.

Sponsorship: Partisan Bill (Republican 1)

Status: (Passed) 2011-06-28 - Reported enrolled [SR113 Detail]

Download: Texas-2011-SR113-Enrolled.html



	By: Carona	S.R. No. 113


	SENATE RESOLUTION
	BE IT RESOLVED by the Senate of the State of Texas, 82nd
	Legislature, 1st Called Session, 2011, That Senate Rule 12.03 be
	suspended in part as provided by Senate Rule 12.08 to enable the
	conference committee appointed to resolve the differences on
	House Bill 3 (the operation of the Texas Windstorm Insurance
	Association, the resolution of certain disputes concerning
	claims made to that association, and the issuance of windstorm
	and hail insurance policies in the private insurance market by
	certain insurers; providing penalties) to consider and take
	action on the following matters:
	(1) Senate Rules 12.03(1) and (3) are suspended to permit
	the committee to change and add text on a matter which is not in
	disagreement in added Section 2210.260(d), Insurance Code, to
	read as follows:
	(d) Except as provided by Sections 2210.251(d), (e), and
	(f), a person who has an insurable interest in a residential
	structure that is insured by the association as of August 31,
	2012, but for which the person has not obtained a certificate of
	compliance under Section 2210.251(g), must obtain an alternative
	certification under this section before the association, on or
	after August 31, 2013, may renew coverage for the structure.
	Explanation: The change and addition of text are
	necessary to clarify the structures to which Section
	2210.260(d), Insurance Code, does not apply and to change the
	date on which compliance with that section becomes mandatory
	before the Texas Windstorm Insurance Association may renew
	coverage for an insured structure.
	(2) Senate Rule 12.03(2) is suspended to permit the
	committee to omit text adding Section 2210.502(e), Insurance
	Code, by striking the section of the bill that added that
	subsection.
	Explanation: The omission of the text is necessary to
	avoid statutorily establishing a maximum liability limit for
	windstorm and hail insurance policies issued by the Texas
	Windstorm Insurance Association.
	(3) Senate Rule 12.03(4) is suspended to permit the
	committee to add text on a matter that is not included in either
	the house or senate version of the bill in added Section
	2210.573(d), Insurance Code, to read as follows:
	(d) Unless the applicable 60-day period described by this
	subsection is extended by the commissioner under Section
	2210.581, not later than the later of the 60th day after the date
	the association receives a claim or the 60th day after the date
	the association receives information requested under Subsection
	(b), the association shall provide the claimant, in writing,
	notification that:
	(1) the association has accepted coverage for the
	claim in full;
	(2) the association has accepted coverage for the
	claim in part and has denied coverage for the claim in part; or
	(3) the association has denied coverage for the
	claim in full.
	Explanation: The addition of the text is necessary to
	ensure that any commissioner extension of the 60-day period
	described by Section 2210.573(d) is included in the 120-day
	aggregated total of commissioner extensions under Section
	2210.581, Insurance Code, as proposed in the bill.
	(4) Senate Rule 12.03(4) is suspended to permit the
	committee to add text on a matter that is not included in either
	the house or senate version of the bill in added Section
	2210.575(d), Insurance Code, to read as follows:
	(d) Alternative dispute resolution under this section
	must be completed not later than the 60th day after the date a
	request for alternative dispute resolution is made under
	Subsection (c). The 60-day period described by this subsection
	may be extended by the commissioner by rule in accordance with
	Section 2210.581 or by the association and a claimant by mutual
	consent.
	Explanation: The addition of the text is necessary to
	ensure that any commissioner extension of the 60-day period
	described by Section 2210.575(d) is included in the 120-day
	aggregated total of commissioner extensions under Section
	2210.581, Insurance Code, as proposed in the bill.
	(5) Senate Rule 12.03(4) is suspended to permit the
	committee to add text on a matter that is not included in either
	the house or senate version of the bill by adding Sections
	2210.581 and 2210.582, Insurance Code, to read as follows:
	Sec. 2210.581. COMMISSIONER EXTENSION OF DEADLINES.
	(a) Subject to Subsection (b), the commissioner, on a showing of
	good cause, may by rule extend any deadline established under
	this subchapter.
	(b) With reference to claims filed during a particular
	catastrophe year, the extension of deadlines under Subsection
	(a) may not exceed 120 days in the aggregate.
	(c) For the purposes of Subsection (a), "good cause"
	includes military deployment.
	Sec. 2210.582. OMBUDSMAN PROGRAM. (a) The department
	shall establish an ombudsman program to provide information and
	educational programs to assist persons insured under this
	chapter with the claim processes under this subchapter.
	(b) Not later than March 1 of each year, the department
	shall prepare and submit to the commissioner a budget for the
	ombudsman program, including approval of all expenditures
	incurred in administering and operating the program. The
	commissioner shall adopt or modify and adopt the budget not later
	than April 1 of the year in which the budget is submitted.
	(c) Not later than May 1 of each year, the association
	shall transfer to the ombudsman program money in an amount equal
	to the amount of the budget adopted under Subsection (b). The
	ombudsman program, not later than April 30 of each year, shall
	return to the association any unexpended funds that the program
	received from the association in the previous year.
	(d) The department shall, not later than 60 days after
	the date of a catastrophic event, prepare and submit an amended
	budget to the commissioner for approval and report to the
	commissioner the approximate number of claimants eligible for
	ombudsman services. The commissioner shall adopt rules as
	necessary to implement an amended budget submitted under this
	section, including rules regarding the transfer of additional
	money from the association to the program.
	(e) The ombudsman program may provide to persons insured
	under this chapter information and educational programs through:
	(1) informational materials;
	(2) toll-free telephone numbers;
	(3) public meetings;
	(4) outreach centers;
	(5) the Internet; and
	(6) other reasonable means.
	(f) The ombudsman program is administratively attached
	to the department. The department shall provide the staff,
	services, and facilities necessary for the ombudsman program to
	operate, including:
	(1) administrative assistance and service,
	including budget planning and purchasing;
	(2) personnel services;
	(3) office space; and
	(4) computer equipment and support.
	(g) The ombudsman program shall prepare and make
	available to each person insured under this chapter information
	describing the functions of the ombudsman program.
	(h) The association, in the manner prescribed by the
	commissioner by rule, shall notify each person insured under this
	chapter concerning the operation of the ombudsman program.
	(i) The commissioner may adopt rules as necessary to
	implement this section.
	Explanation: The addition of Section 2210.581, Insurance
	Code, is necessary to grant the commissioner of insurance limited
	authority to extend by rule any deadline under Subchapter L-1,
	Chapter 2210, Insurance Code, as proposed in the bill. The
	addition of Section 2210.582, Insurance Code, is necessary to
	establish an ombudsman program to provide information and
	educational programs to persons insured under Chapter 2210,
	Insurance Code, to assist those persons with the claims processes
	established under Subchapter L-1, Chapter 2210, Insurance Code,
	as proposed in the bill.
	(6) Senate Rule 12.03(2) is suspended to permit the
	committee to omit text that is not in disagreement in amended
	Section 2210.613(c)(1)(E), Insurance Code, so that Subsection
	(c) reads as follows:
	(c) The premium surcharge under Subsection (b) shall be
	assessed on all policyholders of policies that cover [~~who reside~~
	~~or have operations in, or whose~~] insured property that is located
	in a catastrophe area, including automobiles principally garaged
	in a catastrophe area. The premium surcharge shall be assessed
	on [~~for~~] each Texas windstorm and hail insurance policy and each
	property and casualty insurance policy, including an automobile
	insurance policy, issued for automobiles and other property
	located in the catastrophe area. A premium surcharge under
	Subsection (b) applies to:
	(1) all policies written under the following lines
	of insurance:
	(A) fire and allied lines;
	(B) farm and ranch owners;
	(C) residential property insurance;
	(D) private passenger automobile liability
	and physical damage insurance; and
	(E) commercial automobile liability and
	physical damage insurance; and
	(2) the property insurance portion of a commercial
	multiple peril insurance policy [~~that provide coverage on any~~
	~~premises, locations, operations, or property located in the area~~
	~~described by this subsection for all property and casualty lines~~
	~~of insurance, other than federal flood insurance, workers'~~
	~~compensation insurance, accident and health insurance, and~~
	~~medical malpractice insurance~~].
	Explanation: The omission of the text is necessary to
	clarify the lines of commercial automobile insurance to which a
	premium surcharge under Section 2210.613, Insurance Code,
	applies.
	(7) Senate Rule 12.03(1) is suspended to permit the
	committee to change text on a matter which is not in disagreement
	in proposed SECTION 60(a) of the bill to read as follows:
	(a) A legislative interim study committee shall conduct a
	study of alternative ways to provide insurance to the seacoast
	territory of this state, including through a quasi-governmental
	entity.
	Explanation: The addition of the text is necessary to
	allow the legislative interim study committee established under
	SECTION 60 of the bill to study a broader range of alternative
	ways in which windstorm and hail insurance may be provided in the
	seacoast territory of this state.
	(8) Senate Rule 12.03(1) is suspended to permit the
	committee to change text on a matter which is not in disagreement
	in proposed SECTION 60(d)(1) of the bill so that Subsection (d)
	reads as follows:
	(d) The committee shall:
	(1) examine alternative ways to provide insurance
	to the seacoast territory of this state, including through a
	quasi-governmental entity or by providing insurance coverage
	through a system or program in which insurers in this state
	provide insurance in the seacoast territory of this state in
	proportion to the percentage of insurance coverage provided in
	geographic areas of this state other than the seacoast territory;
	(2) study the residual markets for windstorm and
	hail insurance in other states to determine if those markets
	operate more efficiently and effectively than the residual
	market for windstorm and hail insurance coverage in this state;
	(3) study windstorm-related building codes and
	mitigation strategies to determine which codes or strategies are
	most effective;
	(4) recommend:
	(A) the appropriate scope of authority and
	responsibility for the entity to provide insurance to the
	seacoast territory of this state;
	(B) an organizational structure to exercise
	authority and responsibility over the provision of insurance to
	the seacoast territory of this state;
	(C) a timetable for implementation; and
	(D) specific amendments to state laws and
	rules that are necessary to implement the committee's
	recommendations under this subdivision; and
	(5) estimate funding requirements to implement the
	recommendations.
	Explanation: The addition of the text is necessary to
	allow the legislative interim study committee established under
	SECTION 60 of the bill to study a broader range of alternative
	ways in which windstorm and hail insurance may be provided in the
	seacoast territory of this state.




		_______________________________
		President of the Senate

		I hereby certify that the
		above Resolution was adopted by
		the Senate on June 28, 2011, by
		the




		_______________________________
		Secretary of the Senate