reglab/statecodes huggingface dataset:
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter F. Property Inspections for Windstorm and Hail Insurance › Section 2210.254. Qualified Inspectors

Sec. 2210.254.  QUALIFIED INSPECTORS.  (a)  For purposes of this chapter, a "qualified inspector" includes:
(1)  a person determined by the department to be qualified because of training or experience to perform building inspections;
(2)  a licensed professional engineer; and
(3)  an inspector who:
(A)  is certified by the International Code Council, the Building Officials and Code Administrators International, Inc., the International Conference of Building Officials, or the Southern Building Code Congress International, Inc.;
(B)  has certifications as a buildings inspector and coastal construction inspector; and
(C)  complies with other requirements specified by commissioner rule.
(b)  A windstorm inspection may be performed only by a qualified inspector.
(c)  Before performing building inspections, a qualified inspector must be approved and appointed or employed by the department.
(d)  The department may charge a reasonable fee for the filing of applications by and determining the qualifications of persons for appointment as qualified inspectors.
(e)  The department may establish an annual renewal period for persons appointed as qualified inspectors.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 25, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 1073 (H.B. 2439), Sec. 4, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter F. Property Inspections for Windstorm and Hail Insurance › Section 2210.2551. Enforcement Authority; Rules

Sec. 2210.2551.  ENFORCEMENT AUTHORITY; RULES.  (a)  The department has exclusive authority over all matters relating to the appointment and oversight of qualified inspectors for purposes of this chapter and to the physical inspection of structures for the purposes of determining whether to issue a certificate of compliance under Section 2210.2515(d), including the submission of documents to the department or association regarding the physical inspection of structures.
(b)  The commissioner by rule shall establish criteria to ensure that a person seeking appointment as a qualified inspector under this subchapter possesses the knowledge, understanding, and professional competence to perform windstorm inspections for the issuance of a certificate of compliance under Section 2210.2515(d) and to comply with other requirements of this chapter.
(c)  Subsection (b) applies only to a determination concerning the appointment of a qualified inspector under this chapter.  The exclusive jurisdiction of the department under this section does not apply to the practice of engineering as defined by Section 1001.003, Occupations Code, or to a license issued, qualification required, determination made, order issued, judgment rendered, or other action of a board operating under Chapter 1001, Occupations Code. In the event of conflict, the authority of that board prevails with regard to the practice of engineering.
(d)  Repealed by Acts 2015, 84th Leg., R.S., Ch. 1073 , Sec. 9(3), eff. September 1, 2015.
(e)  Repealed by Acts 2015, 84th Leg., R.S., Ch. 1073 , Sec. 9(3), eff. September 1, 2015.
(f)  The commissioner may not adopt or enforce a rule that requires an engineer to affix the engineer's seal to an inspection form submitted under this subchapter.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 27, eff. September 28, 2011.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1073 (H.B. 2439), Sec. 5, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 1073 (H.B. 2439), Sec. 9(3), eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter F. Property Inspections for Windstorm and Hail Insurance › Section 2210.257. Deposit of Fees

Sec. 2210.257.  DEPOSIT OF FEES.  All fees collected by the department under this subchapter shall be deposited to the credit of the Texas Department of Insurance operating account.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter F. Property Inspections for Windstorm and Hail Insurance › Section 2210.258. Compliance With Building Codes; Eligibility

Sec. 2210.258.  COMPLIANCE WITH BUILDING CODES; ELIGIBILITY.  (a)  Except as provided by Subsections (c) and (d) and notwithstanding any other 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. 4409, 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 Subsections (c) and (d), the association may not insure a structure described by Subsection (a) until a certificate of compliance has been issued for the structure in accordance with Section 2210.2515.
(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;
(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.
(d)  The association may insure a structure described by Subsection (a) for a policy term not to exceed 30 days if an inspection verification form or other inspection form adopted by the department has been issued for the structure for purposes of providing temporary coverage while an applicant seeks to secure a certificate of compliance for the structure if the structure is otherwise insurable property.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 31, eff. June 19, 2009.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1228 (S.B. 1702), Sec. 2, eff. June 14, 2013.
Acts 2015, 84th Leg., R.S., Ch. 188 (S.B. 498), Sec. 2, eff. May 28, 2015.
Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 14, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 1073 (H.B. 2439), Sec. 7, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter F. Property Inspections for Windstorm and Hail Insurance › Section 2210.259. Surcharge for Certain Noncompliant Structures

Sec. 2210.259.  SURCHARGE FOR CERTAIN NONCOMPLIANT STRUCTURES.  (a)  Except as provided by Subsection (a-1), an insurance policy insuring a noncompliant residential structure under Section 2210.251(f) is subject to an annual premium surcharge in an 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.
(b)  A premium surcharge collected under this section shall be deposited in the catastrophe reserve trust fund.  A premium surcharge under this section is a separate nonrefundable charge in addition to the premiums collected and is not subject to premium tax or commissions.  Failure to pay the surcharge by a policyholder constitutes failure to pay premium for purposes of policy cancellation.
(c)  The commissioner by rule may provide for a discount of, or a credit against, a surcharge assessed under Subsection (a) in instances in which a policyholder demonstrates that the noncompliant structure was constructed with at least one structural building component that complies with the building code standards set forth in the plan of operation.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 31, eff. June 19, 2009.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 30, eff. September 28, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1228 (S.B. 1702), Sec. 4, eff. June 14, 2013.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter H. Rates; Discounts and Credits › Section 2210.351. Association Filings

Sec. 2210.351.  ASSOCIATION FILINGS.  (a)  The association must file with the department each manual of classifications, rules, rates, including condition charges, and each rating plan, and each modification of those items that the association proposes to use.
(b)  A filing under this section must indicate the character and the extent of the coverage contemplated and must be accompanied by the policy and endorsement forms proposed to be used.  The forms may be designed specifically for use by the association without regard to other forms filed with, approved by, or prescribed by the department for use in this state.
(c)  Except as provided by Subsection (d), as soon as reasonably possible after the filing has been made, the commissioner in writing shall approve or disapprove the filing.  A filing is considered approved unless disapproved on or before the 30th day after the date of the filing.  If the commissioner disapproves a filing, the commissioner shall state in writing the reasons for the disapproval and the criteria the association is required to meet to obtain approval.
(d)  The association may use a rate filed by the association without prior commissioner approval if:
(1)  the filing is made not later than the 30th day before the date of any use or delivery for use of the rate;
(2)  the filed rate does not exceed the rate in effect on the date on which the filing is made; and
(3)   the commissioner has not disapproved the filing in writing, advising of the reasons for the disapproval and the criteria the association is required to meet to obtain approval.
(e)  The department shall value the loss and loss adjustment expense data to be used for a filing not earlier than March 31 of the year before the year in which the filing is to be made.
(f)  The association may not file a rate under this section that exceeds the rate in effect on the date on which the filing is made unless two-thirds of the board of directors votes to approve the rate.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 32, eff. June 19, 2009.
Acts 2021, 87th Leg., R.S., Ch. 147 (S.B. 1448), Sec. 1, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter H. Rates; Discounts and Credits › Section 2210.3511. Public Access to Rate Adequacy Analysis

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.
Added by Acts 2019, 86th Leg., R.S., Ch. 525 (S.B. 615), Sec. 13, eff. September 1, 2019.
Added by Acts 2019, 86th Leg., R.S., Ch. 790 (H.B. 1900), Sec. 7, eff. June 10, 2019.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter H. Rates; Discounts and Credits › Section 2210.3512. Requirement for Vote on Rate Filing

Sec. 2210.3512.  REQUIREMENT FOR VOTE ON RATE FILING.  The board of directors may not vote on a proposed rate increase if:
(1)  there is a vacancy on the board; and
(2)  the vacancy has existed for at least 60 days at the time the vote is to be taken.
Added by Acts 2021, 87th Leg., R.S., Ch. 639 (H.B. 769), Sec. 1, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter H. Rates; Discounts and Credits › Section 2210.354. Manual Rate Filings: Additional Supporting Information

Sec. 2210.354.  MANUAL RATE FILINGS:  ADDITIONAL SUPPORTING INFORMATION.  (a)  In conjunction with the review of a filing under Section 2210.352, other than a filing made under Subsection (a-1) of that section:
(1)  the commissioner may request the association to provide additional supporting information relating to the filing; and
(2)  any interested person may file a written request with the commissioner, during a period specified by the commissioner by rule, for additional supporting information relating to the filing.
(b)  A request under this section must be reasonable and must be directly related to the filing.
(c)  The commissioner shall submit to the association all requests for additional supporting information made under this section for the commissioner's use and the use of any interested person not later than the 21st day after the date of receipt of the filing.
(d)  Unless a different period is requested by the association and approved by the commissioner, the association shall provide the information to the commissioner not later than the fifth day after the date the written request for additional supporting information is delivered to the association.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 35, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter H. Rates; Discounts and Credits › Section 2210.357. Rate Classifications

Sec. 2210.357.  RATE CLASSIFICATIONS.  All premiums written and losses paid under this chapter, as appropriate, must be included in applicable classifications for general ratemaking purposes.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter H. Rates; Discounts and Credits › Section 2210.358. Experience Data

Sec. 2210.358.  EXPERIENCE DATA.  (a)  Not later than June 1 of each year, the department shall provide to the association and other interested persons the experience data to be used in establishing the rates under this subchapter in that year.
(b)  On request from the department, an insurer shall provide the data to the department or the department may obtain the data from a designated statistical agent, as defined by Section 38.201.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter H. Rates; Discounts and Credits › Section 2210.359. Limitation on Certain Rate Changes

Sec. 2210.359.  LIMITATION ON CERTAIN RATE CHANGES.  (a)  Except as otherwise provided by this subsection, a rate approved by the commissioner under this subchapter may not reflect an average rate change that is more than 10 percent higher or lower than the rate for commercial windstorm and hail insurance or 10 percent higher or lower than the rate for noncommercial windstorm and hail insurance in effect on the date the filing is made.  The rate may not reflect a rate change for an individual rating class that is 15 percent higher or lower than the rate for that individual rating class in effect on the date the filing is made.  This subsection does not apply to a rate filed under Sections 2210.351(a)-(d).
(b)  The commissioner may, after notice and hearing, suspend this section on a finding that a catastrophe loss or series of occurrences resulting in losses in the catastrophe area justify a need to ensure:
(1)  rate adequacy in the catastrophe area; and
(2)  availability of insurance outside the catastrophe area.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.0631, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.0631, eff. September 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter H. Rates; Discounts and Credits › Section 2210.361. Association Recommendations Regarding Reductions in Coverages or Increases in Deductibles

Sec. 2210.361.  ASSOCIATION RECOMMENDATIONS REGARDING REDUCTIONS IN COVERAGES OR INCREASES IN DEDUCTIBLES.  (a)  The association may make recommendations to the commissioner that would result in a reduction of coverages or an increase in an applicable deductible if the resultant reduction in coverages or increase in deductibles is accompanied by proposed rate credits.
(b)  After notice and hearing, the commissioner may accept or reject a recommendation made by the association under this section.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 37, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter H. Rates; Discounts and Credits › Section 2210.362. Implied Consent by Applicant for Insurance Coverage

Sec. 2210.362.  IMPLIED CONSENT BY APPLICANT FOR INSURANCE COVERAGE.  For purposes of this chapter, an applicant for insurance coverage is considered to have consented to the appropriate rates and classifications authorized by this chapter regardless of any other rates or classifications.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter H. Rates; Discounts and Credits › Section 2210.363. Premium Discounts; Surcharge Credits

Sec. 2210.363.  PREMIUM DISCOUNTS; SURCHARGE CREDITS.  (a)  The association may offer a person insured under this chapter an actuarially justified premium discount on a policy issued by the association, or an actuarially justified credit against a surcharge assessed against the person, other than a surcharge assessed under Subchapter M, if:
(1)  the construction, alteration, remodeling, enlargement, or repair of, or an addition to, insurable property exceeds applicable building code standards set forth in the plan of operation; or
(2)  the person elects to purchase a binding arbitration endorsement under Section 2210.554.
(b)  A premium discount or a credit against a surcharge under Subsection (a)(2) may not exceed 10 percent of the premium for the policy, before the application of the discount.
(c)  The commissioner shall adopt rules necessary to implement and enforce this section, including rules defining "actuarially justified" for the purposes of this section.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 34, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter J. Catastrophe Reserve Trust Fund; Reinsurance and Alternative Risk Financing › Section 2210.451. Definition

Sec. 2210.451.  DEFINITION.  In this subchapter, "trust fund" means the catastrophe reserve trust fund.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter J. Catastrophe Reserve Trust Fund; Reinsurance and Alternative Risk Financing › Section 2210.452. Establishment and Use of Trust Fund

Sec. 2210.452.  ESTABLISHMENT AND USE OF TRUST FUND.  (a)  The commissioner shall adopt rules under which the association makes payments to the catastrophe reserve trust fund.  Except as otherwise specifically provided by this section, the trust fund may be used only for purposes directly related to funding the payment of insured losses, including:
(1)  funding the obligations of the trust fund under Subchapter B-1; and
(2)  purchasing reinsurance or using alternative risk financing mechanisms under Section 2210.453.
(b)  All money, including investment income, deposited in the trust fund constitutes state funds until disbursed as provided by this chapter and commissioner rules.  The comptroller shall hold the money outside the state treasury on behalf of, and with legal title in, the department.  The department shall keep and maintain the trust fund in accordance with this chapter and commissioner rules.  The comptroller, as custodian of the trust fund, shall administer the trust fund strictly and solely as provided by this chapter and commissioner rules.
(c)  At the end of each calendar year or policy year, the association shall use the net gain from operations of the association, including all premium and other revenue of the association in excess of incurred losses, operating expenses, public security obligations, and public security administrative expenses, to make payments to the trust fund, procure reinsurance, or use alternative risk financing mechanisms, or to make payments to the trust fund and procure reinsurance or use alternative risk financing mechanisms.
(d)  The commissioner by rule shall establish the procedure relating to the disbursement of money from the trust fund to policyholders and for association administrative expenses directly related to funding the payment of insured losses in the event of an occurrence or series of occurrences within a catastrophe area that results in a disbursement under Subchapter B-1.
(e)  The trust fund may be terminated only by law.  On termination of the trust fund, all assets of the trust fund revert to the state to provide funding for the mitigation and preparedness plan established under Section 2210.454.
(f)  The commissioner by rule shall establish the procedure relating to the disbursement of money from the trust fund to pay for operating expenses, including reinsurance or alternative risk financing mechanisms under Section 2210.453, if the association does not have sufficient premium and other revenue.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 38, eff. June 19, 2009.
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 35, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 18, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter J. Catastrophe Reserve Trust Fund; Reinsurance and Alternative Risk Financing › Section 2210.4521. Investment of Trust Fund Balances

Sec. 2210.4521.  INVESTMENT OF TRUST FUND BALANCES.  (a)  The comptroller shall invest in accordance with the investment standard described by Section 404.024(j), Government Code, the portion of the trust fund balance that exceeds the amount of the sufficient balance determined under Subsection (b).  The comptroller's investment of that portion of the balance is not subject to any other limitation or other requirement provided by Section 404.024, Government Code.
(b)  At least once each 12-month period, the board of directors shall determine a balance for the trust fund that the board considers to be sufficient to meet the cash flow requirements of the fund in funding the payment of insured losses as provided by Section 2210.452(a).  After determining that sufficient balance, the board shall provide notice of the sufficient balance to the comptroller.
(c)  Not later than the 30th day after the date the board of directors provides notice of the sufficient balance determined under Subsection (b), the comptroller shall adjust the investment portfolio of trust fund money to ensure that only the portion of the fund that exceeds the sufficient balance is invested as required by Subsection (a).
(d)  The comptroller shall include the fair market value of the investment portfolio of the trust fund in calculating the amount in the fund for purposes of this chapter.
Added by Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 19, eff. September 1, 2015.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter J. Catastrophe Reserve Trust Fund; Reinsurance and Alternative Risk Financing › Section 2210.453. Funding Levels; Reinsurance and Alternative Risk Financing Mechanisms; Reinsurance From Certain Insurer or Broker Prohibited

Sec. 2210.453.  FUNDING LEVELS; REINSURANCE AND ALTERNATIVE RISK FINANCING MECHANISMS; REINSURANCE FROM CERTAIN INSURER OR BROKER PROHIBITED.  (a)  The association may purchase reinsurance or use alternative risk financing mechanisms or both as necessary.
(b)  The association shall maintain total available loss funding in an amount not less than the probable maximum loss for the association for a catastrophe year with a probability of one in 100.  If necessary, the required funding level shall be achieved through the purchase of reinsurance or the use of alternative financing mechanisms, or both, to operate in addition to or in concert with the trust fund, public securities, financial instruments, and assessments authorized by this chapter.
(c)  The attachment point for reinsurance purchased under this section may not be less than the aggregate amount of all funding available to the association under Subchapter B-1.
(d)  The cost of the reinsurance purchased or alternative financing mechanisms used under this section in excess of the minimum funding level required by Subsection (b) shall be paid by assessments as provided by this subsection. The association, with the approval of the commissioner, shall notify each member of the association of the amount of the member's assessment under this subsection. The proportion of the cost to each insurer under this subsection shall be determined in the manner used to determine each insurer's participation in the association for the year under Section 2210.052.
(e)  A member of the association may not recoup an assessment paid under Subsection (d) through a premium surcharge or tax credit.
(f)  The association may not purchase reinsurance under this section from an insurer or broker involved in the execution of a catastrophe model on which the association relies in:
(1)  determining the probable maximum loss applicable for the period covered by the reinsurance; or
(2)  adopting rates under Section 2210.355.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 39, eff. June 19, 2009.
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 36, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 20, eff. September 1, 2015.
Acts 2019, 86th Leg., R.S., Ch. 790 (H.B. 1900), Sec. 8, eff. June 10, 2019.
Acts 2021, 87th Leg., R.S., Ch. 639 (H.B. 769), Sec. 2, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 639 (H.B. 769), Sec. 3, eff. September 1, 2021.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter J. Catastrophe Reserve Trust Fund; Reinsurance and Alternative Risk Financing › Section 2210.454. Mitigation and Preparedness Plan

Sec. 2210.454.  MITIGATION AND PREPAREDNESS PLAN.  (a)  The commissioner shall annually develop and implement a mitigation and preparedness plan.
(b)  Each state fiscal year, the department may fund the mitigation and preparedness plan using available funds.
(c)  The mitigation and preparedness plan must provide for actions to be taken in the seacoast territory by the commissioner, or by a local government, state agency, educational institution, or nonprofit organization designated by the commissioner in the plan, to implement programs to:
(1)  improve preparedness for windstorm and hail catastrophes;
(2)  reduce potential losses in the event of such a catastrophe; and
(3)  provide research into the means to:
(A)  reduce those losses;
(B)  educate or inform the public in determining the appropriateness of particular upgrades to structures; or
(C)  protect infrastructure from potential damage from those catastrophes.
(d)  Money in excess of $1 million may not be used under this section if the commissioner determines that an expenditure of investment income from the trust fund would jeopardize the actuarial soundness of the fund or materially impair the ability of the fund to serve the state purposes for which the fund was established.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 40, eff. June 19, 2009.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter J. Catastrophe Reserve Trust Fund; Reinsurance and Alternative Risk Financing › Section 2210.455. Catastrophe Plan

Sec. 2210.455.  CATASTROPHE PLAN.  (a)  Not later than June 1 of each year, the board shall submit to the commissioner, the legislative oversight board established under Subchapter N, the governor, the lieutenant governor, and the speaker of the house of representatives a catastrophe plan covering the period beginning on the date the plan is submitted and ending on the following May 31.
(b)  The catastrophe plan must:
(1)  describe the manner in which the association will, during the period covered by the plan, evaluate losses and process claims after the following windstorms affecting an area of maximum exposure to the association:
(A)  a windstorm with a four percent chance of occurring during the period covered by the plan;
(B)  a windstorm with a two percent chance of occurring during the period covered by the plan; and
(C)  a windstorm with a one percent chance of occurring during the period covered by the plan; and
(2)  include, if the association does not purchase reinsurance under Section 2210.453 for the period covered by the plan, an actuarial plan for paying losses in the event of a catastrophe with estimated damages of $2.5 billion or more.
(c)  The catastrophe plan must include a description of how losses under association policies will be paid, and how claims under association policies will be administered and adjusted, during the period covered by the plan.
(d)  The catastrophe plan submitted under this section is for informational purposes only and does not bind the association to a particular course of action.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 37, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter K. Liability Limits › Section 2210.501. Maximum Liability Limits

Sec. 2210.501.  MAXIMUM LIABILITY LIMITS.  (a)  The  board of directors shall propose the maximum liability limits under a windstorm and hail insurance policy issued by the association under this chapter.  The maximum liability limits are considered approved by the commissioner unless the commissioner disapproves or modifies the liability limits by order issued not later than the 30th day after the date of receipt of a filing under Section 2210.503.
(b)  Subject to Section 2210.502, the maximum liability limits for coverage on a single insurable property may not be less than:
(1)  $350,000 for:
(A)  a dwelling, including an individually owned townhouse unit; and
(B)  the corporeal movable property located in or about the dwelling and, as an extension of coverage, away from those premises, as provided under the policy;
(2)  $2,192,000 for a building, and the corporeal movable property located in the building, if the building is:
(A)  owned by, and at least 75 percent of which is occupied by, a governmental entity; or
(B)  not owned by, but is wholly and exclusively occupied by, a governmental entity;
(3)  $125,000 for individually owned corporeal movable property located in an apartment unit, residential condominium unit, or townhouse unit that is occupied by the owner of that property and, as an extension of coverage, away from those premises, as provided under the policy; and
(4)  $1,500,000 for:
(A)  a structure other than a dwelling or a public building; and
(B)  the corporeal movable property located in that structure and, as an extension of coverage, away from those premises, as provided under the policy.
(c)  Maximum liability limits for insurable property not described by Subsection (b) are established by the plan of operation.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 307 (H.B. 1902), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter K. Liability Limits › Section 2210.502. Adjustments to Maximum Liability Limits

Sec. 2210.502.  ADJUSTMENTS TO MAXIMUM LIABILITY LIMITS.  (a)  Not later than September 30 of each year, the board of directors shall propose inflation adjustments to the maximum liability limits imposed under Section 2210.501 in increments of $1,000, rounded to the nearest $1,000, considering the limits imposed by Section 2210.501(b), at a rate that reflects any change in the BOECKH Index.  If the BOECKH Index ceases to exist, the board of directors shall propose the adjustments in the same manner based on another index that the board of directors determines accurately reflects changes in the cost of construction or residential values in the catastrophe area.
(b)  An adjustment to the maximum liability limits that is approved by the commissioner applies to each windstorm and hail insurance policy delivered, issued for delivery, or renewed on or after January 1 of the year following the date of the approval.  The indexing of the limits shall adjust for changes occurring on and after January 1, 1997.
(c)  The board of directors may propose additional increases in the maximum liability limits as the board determines necessary to implement the purposes of this chapter.
(d)  Notwithstanding Section 2210.501(b), the maximum liability limit imposed under Section 2210.501(b)(2) is frozen, and the indexing and adjustments provided by this section do not apply to that limit, until the limit imposed on a structure subject to Section 2210.501(b)(4) and the corporeal property located in that structure reaches or exceeds $2,192,000, at which time the limit imposed under Section 2210.501(b)(2) shall be indexed and adjusted as provided for a risk under Section 2210.501(b)(4).
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter K. Liability Limits › Section 2210.503. Filing of Proposed Adjustments With Commissioner

Sec. 2210.503.  FILING OF PROPOSED ADJUSTMENTS WITH COMMISSIONER.  Not later than the 10th day after the date a proposed adjustment to the maximum liability limits is determined under Section 2210.501(a) or (b) or Section 2210.502, the association shall file the proposed adjustments with the commissioner in writing.  The filing must include:
(1)  a statement of the proposed adjusted limits;
(2)  a statement of the limits in effect immediately preceding the effective date of the proposed adjustment;
(3)  a brief summary of the changes to the BOECKH Index or other index on which the proposed adjustments are based; and
(4)  a brief summary of the computations used in determining the proposed adjustments.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter K. Liability Limits › Section 2210.504. Commissioner Action on Proposed Adjustments

Sec. 2210.504.  COMMISSIONER ACTION ON PROPOSED ADJUSTMENTS.  (a)  Not later than the 30th day after the date the commissioner disapproves or modifies a filing under Section 2210.503, and after notice and hearing, the commissioner by order shall approve, disapprove, or modify the proposed adjustment to the maximum liability limits.
(b)  Notwithstanding Subsection (a) and Sections 2210.501(c), 2210.502(a)-(c), and 2210.503, the commissioner may not approve adjustments of maximum liability limits to amounts lower than the amounts prescribed under Section 2210.501(b).
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 307 (H.B. 1902), Sec. 2, eff. September 1, 2019.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter K. Liability Limits › Section 2210.505. Reinsured Excess Limits

Sec. 2210.505.  REINSURED EXCESS LIMITS.  (a)  Notwithstanding any other law, the association may issue a windstorm and hail insurance policy that includes coverage for an amount in excess of a maximum liability limit established under Sections 2210.501-2210.504 if the association first obtains from a reinsurer approved by the commissioner reinsurance for the full amount of policy exposure above that limit.
(b)  The premium charged by the association for the excess coverage must equal the amount of the reinsurance premium charged to the association by the reinsurer, plus any payment to the association that is approved by the commissioner.
(c)  The commissioner shall adopt rules as necessary to implement this section.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter K. Liability Limits › Section 2210.506. Exception From Certain Administrative Procedures

Sec. 2210.506.  EXCEPTION FROM CERTAIN ADMINISTRATIVE PROCEDURES.  Chapter 40 does not apply to an action taken under this subchapter.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter L. Certain Appeals and Other Actions › Section 2210.551. Appeals

Sec. 2210.551.  APPEALS.  (a)  This section:
(1)  does not apply to:
(A)  a person who is required to resolve a dispute under Subchapter L-1; or
(B)  a person insured under this chapter who has elected to purchase a binding arbitration endorsement offered by the association under Section 2210.554; and
(2)  applies only to:
(A)  a person not described by Subdivision (1) who is insured under this chapter or an authorized representative of the person; or
(B)  an affected insurer.
(b)  A person or entity described by Subsection (a)(2) who is aggrieved by an act, ruling, or decision of the association may appeal to the commissioner not later than the 30th day after the date of that act, ruling, or decision.
(c)  If the association is aggrieved by the action of the commissioner with respect to a ruling, order, or determination of the commissioner, the association may, not later than the 30th day after the date of the action, make a written request to the commissioner for a hearing on the action.
(d)  On 10 days' written notice of the time and place of the hearing, the commissioner shall conduct a hearing on the association's request or the appeal from an act, ruling, or decision of the association, not later than the 30th day after the date of receipt of the request or appeal.
(e)  Repealed by Acts 2011, 82nd Leg., 1st C.S., Ch. 2, Sec. 57, eff. September 28, 2011.
(f)  Not later than the 30th day after the date of the hearing, the commissioner shall affirm, reverse, or modify the commissioner's previous action or the act, ruling, or decision appealed to the commissioner.  Pending the hearing and decision, the commissioner may suspend or postpone the effective date of the previous action or of the act, ruling, or decision appealed to the commissioner.
(g)  The association, or the person or entity aggrieved by the order or decision of the commissioner, may appeal to a district court in the county in which the covered property is located or a district court in Travis County.
(h)  An action brought under this section is subject to the procedures established under Subchapter D, Chapter 36.
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 39, eff. September 28, 2011.
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 57, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter L. Certain Appeals and Other Actions › Section 2210.554. Voluntary Arbitration of Certain Coverage and Claim Disputes

Sec. 2210.554.  VOLUNTARY ARBITRATION OF CERTAIN COVERAGE AND CLAIM DISPUTES.  (a)  A person insured under this chapter may elect to purchase a binding arbitration endorsement in a form prescribed by the commissioner.  A person who elects to purchase an endorsement under this section must arbitrate a dispute involving an act, ruling, or decision of the association relating to the payment of, the amount of, or the denial of the claim.
(b)  An arbitration under this section shall be conducted in the manner and under rules and deadlines prescribed by the commissioner by rule.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 40, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter L. -1. Claims: Settlement and Dispute Resolution › Section 2210.571. Definitions

Sec. 2210.571.  DEFINITIONS.  In this subchapter:
(1)  "Association policy" means a windstorm and hail insurance policy issued by the association.
(2)  "Claim" means a request for payment under an association policy.  The term also includes any other claim against the association, or an agent or representative of the association, relating to an insured loss, under any theory or cause of action of any kind, regardless of the theory under which the claim is asserted, the cause of action brought, or the type of damages sought.
(3)  "Claimant" means a person who makes a claim.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 41, eff. September 28, 2011.
2023 Texas Statutes › Insurance Code › Title 10 - Property and Casualty Insurance › Subtitle G - Pools, Groups, Plans, and Self-Insurance › Chapter 2210 - Texas Windstorm Insurance Association › Subchapter L. -1. Claims: Settlement and Dispute Resolution › Section 2210.572. Exclusive Remedies and Limitation on Award

Sec. 2210.572.  EXCLUSIVE REMEDIES AND LIMITATION ON AWARD.  (a)  This subchapter provides the exclusive remedies for a claim against the association, including an agent or representative of the association.
(b)  Subject to Section 2210.576, the association may not be held liable for any amount other than covered losses payable under the terms of the association policy.
(c)  The association, and an agent or representative of the association, may not be held liable for damages under Chapter 17, Business & Commerce Code, or, except as otherwise specifically provided by this chapter, under any provision of any law providing for additional damages, punitive damages, or a penalty.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 41, eff. September 28, 2011.