TITLE: Relating to the issuance of windstorm and hail insurance policies by the Texas Windstorm Insurance Association for property located in certain flood zones.

SUMMARY: Relating to the issuance of windstorm and hail insurance policies by the Texas Windstorm Insurance Association for property located in certain flood zones.

FULL TEXT:
AN ACT relating to the issuance of windstorm and hail insurance policies by the Texas Windstorm Insurance Association for property located in certain flood zones. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2210.203, Insurance Code, is amended by amending Subsection (a-1) and adding Subsection (a-2) to read as follows: (a-1) This subsection applies [only] to any [a] structure that, on or after September 1, 2011, is constructed or is [] altered, remodeled, or enlarged at a cost that is 50 percent or more of the appraised fair market value of the structure [on or after September 1, 2009, and only for insurable property located in areas designated by the commissioner].Notwithstanding Subsection (a), if all or any part of the property to be insured by the association [which this subsection applies] is located in Zone Vor another similar zone with an additional hazard associated with storm waves, as defined by the National Flood Insurance Program, [and if flood insurance under that federal program is available] the association may not issue an insurance policy for initial or renewal coverage unless evidence is submitted to the association that the property to be covered under the policy is also covered by a flood insurance policy issued under the National Flood Insurance Program. This subsection does not apply to property for which flood insurance is not available under the National Flood Insurance Program [is submitted to the association].(a-2) An agent offering or selling a Texas windstorm and hail insurance policy [in any area designated by the commissioner under this subsection] shall offer flood insurance coverage required under Subsection (a-1) to a [the] prospective insured, if that coverage is available. SECTION 2. Section 2210.203(a-1), Insurance Code, as amended by this Act, and Section 2210.203(a-2), Insurance Code, as added by this Act, apply only to a Texas windstorm and hail insurance policy delivered, issued for delivery, or renewed by the Texas Windstorm Insurance Association on or after October 1, 2011. A Texas windstorm and hail insurance policy delivered, issued for delivery, or renewed by the Texas Windstorm Insurance Association before October 1, 2011, is governed by the law in effect on the date the policy was delivered, issued for delivery, or renewed, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2011.