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 L. -1. Claims: Settlement and Dispute Resolution › Section 2210.5731. Payment of Claim

Sec. 2210.5731.  PAYMENT OF CLAIM.  (a)  Except as provided by Subsection (b), if the association notifies a claimant under Section 2210.573(d)(1) or (2) that the association has accepted coverage for a claim in full or has accepted coverage for a claim in part, the association shall pay the accepted claim or accepted portion of the claim not later than the 10th day after the date notice is made.
(b)  If payment of the accepted claim or accepted portion of the claim is conditioned on the performance of an act by the claimant, the association shall pay the claim not later than the 10th day after the date the act is performed.
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 2210.5732. Supplemental Payments

Sec. 2210.5732.  SUPPLEMENTAL PAYMENTS.  (a)  The association is authorized to provide for supplemental payments under a windstorm and hail insurance policy issued by the association.
(b)  The commissioner shall adopt rules clarifying the deadlines related to supplemental payments.  The commissioner shall solicit and consider comments from the association, association members, and policyholders in adopting rules under this section.
(c)  The rules adopted under this section must ensure that a request for supplemental payment will not impair a policyholder's right to appraisal under Section 2210.574.
Added by Acts 2019, 86th Leg., R.S., Ch. 525 (S.B. 615), Sec. 15, 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 L. -1. Claims: Settlement and Dispute Resolution › Section 2210.5741. Replacement Cost Coverage Claim Processing

Sec. 2210.5741.  REPLACEMENT COST COVERAGE CLAIM PROCESSING.  (a)  After the association accepts coverage for a claim in full or in part, a claimant whose association policy includes replacement cost coverage for the claim may request the replacement cost payment by submitting to the association documentation of the cost and completion of the repairs related to the claim not later than the 545th day after the date the claimant receives a notification under Section 2210.573(d)(1) or (2).
(b)  Not later than the 30th day after the date the association receives documentation under Subsection (a), the association shall provide the claimant, in writing, notification of:
(1)  the amount of the replacement cost payment the association will make; and
(2)  the deadline to request appraisal under this section.
(c)  The association shall pay the amount described by Subsection (b)(1) not later than the 10th day after the date notification is provided under Subsection (b).
(d)  If a claimant has not demanded appraisal with respect to a claim under Section 2210.574 and the claimant disputes the replacement cost amount the association will pay with respect to the claim, the claimant may demand appraisal of the replacement cost amount not later than the 30th day after the date the claimant receives the notification under Subsection (b).  A claimant may demand appraisal under this section without regard to whether all repairs related to the claim are complete.
(e)  Except with respect to the deadlines applicable to an appraisal under this section, the appraisal under this section shall be conducted in the same manner as an appraisal demanded under Section 2210.574.
(f)  If a claimant's association policy includes replacement cost coverage, the written notification provided to the claimant under Section 2210.573(d)(1) or (2) must notify the claimant of the deadlines under this section for:
(1)  completing repairs and submitting documentation under Subsection (a); and
(2)  demanding appraisal under this section.
Added by Acts 2019, 86th Leg., R.S., Ch. 790 (H.B. 1900), Sec. 9, 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 L. -1. Claims: Settlement and Dispute Resolution › Section 2210.577. Limitations Period

Sec. 2210.577.  LIMITATIONS PERIOD.  (a)  Notwithstanding any other law, a claimant who brings an action against the association under Section 2210.575 must bring the action not later than the second anniversary of the date on which the person receives a notice described by Section 2210.573(d)(2) or (3).
(b)  This section is a statute of repose and controls over any other applicable limitations period.
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 2210.578. Expert Panel

Sec. 2210.578.  EXPERT PANEL.  (a)  The commissioner shall appoint a panel of experts to advise the association concerning the extent to which a loss to insurable property was incurred as a result of wind, waves, tidal surges, or rising waters not caused by waves or surges.  The panel shall consist of a number of experts to be decided by the commissioner.  The commissioner shall appoint one member of the panel to serve as the presiding officer of the panel.
(b)  Members of the panel must have professional expertise in, and be knowledgeable concerning, the geography and meteorology of the Texas seacoast territory, as well as the scientific basis for determining the extent to which damage to property is caused by wind, waves, tidal surges, or rising waters not caused by waves or surges.
(c)  The panel shall meet at the request of the commissioner or the call of the presiding officer of the panel.
(d)  The panel shall investigate, collect, and evaluate the information necessary to provide recommendations under Subsection (e).  The cost and expense incurred by the panel associated with the work of the panel under this section shall be paid or reimbursed by the association.
(e)  At the request of the commissioner, the panel shall recommend to the commissioner methods or models for determining the extent to which a loss to insurable property may be or was incurred as a result of wind, waves, tidal surges, or rising waters not caused by waves or surges for geographic areas or regions designated by the commissioner.
(f)  After consideration of the recommendations made by the panel under Subsection (e), the commissioner shall publish guidelines that the association will use to settle claims.
(g)  A member of the panel is not individually liable for an act or failure to act in the performance of the official duties in connection with the individual's work on the panel.
(h)  In any review of a claim under this subchapter, and in any action brought against the association under Section 2210.575, the guidelines published by the commissioner under Subsection (f) govern the claim and are presumed to be accurate and correct, unless clear and convincing evidence supports a deviation from the guidelines.
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 2210.579. Construction With Other Law

Sec. 2210.579.  CONSTRUCTION WITH OTHER LAW.  (a)  To the extent of any conflict between a provision of this subchapter and any other law, the provision of this subchapter prevails.
(b)  Notwithstanding any other law, the association may not bring an action against a claimant, for declaratory or other relief, before the 180th day after the date an appraisal under Section 2210.574, or alternate dispute resolution under Section 2210.575, is completed.
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 2210.580. Rulemaking

Sec. 2210.580.  RULEMAKING.  (a)  The commissioner shall adopt rules regarding the provisions of this subchapter, including rules concerning:
(1)  qualifications and selection of appraisers for the appraisal procedure, mediators for the mediation process, and members of the expert panel;
(2)  procedures and deadlines for the payment and handling of claims by the association as well as the procedures and deadlines for a review of a claim by the association;
(3)  notice of expert panel meetings and the transparency of deliberations of the panel; and
(4)  any other matters regarding the handling of claims that are not inconsistent with this subchapter.
(b)  All rules adopted by the commissioner under this section shall promote the fairness of the process, protect the rights of aggrieved policyholders, and ensure that policyholders may participate in the claims review process without the necessity of engaging legal counsel.
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 2210.581. Commissioner Extension of Deadlines

Sec. 2210.581.  COMMISSIONER EXTENSION OF DEADLINES.  (a)  Subject to Subsection (b), the commissioner, on a showing of good cause, may by rule:
(1)  extend any deadline established under this subchapter; and
(2)  set the length of the extension.
(b)  With reference to deadlines applicable to the association only, all deadline extensions related to claims arising from an occurrence may not exceed 120 days in the aggregate. This subsection does not affect the extension of a deadline applicable to a claimant or to both the association and a claimant.
(c)  For the purposes of Subsection (a), "good cause" includes military deployment.
(d)  The commissioner shall adopt rules as necessary to implement this section. Section 2001.0045, Government Code, does not apply to rules adopted under this section.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 41, eff. September 28, 2011.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 140 (H.B. 1944), Sec. 1, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 790 (H.B. 1900), Sec. 10, eff. June 10, 2019.
Acts 2021, 87th Leg., R.S., Ch. 915 (H.B. 3607), Sec. 12.002, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 915 (H.B. 3607), Sec. 12.003, 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 L. -1. Claims: Settlement and Dispute Resolution › Section 2210.582. Ombudsman Program

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.
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 M. Public Securities Program › Section 2210.601. Purpose

Sec. 2210.601.  PURPOSE.  The legislature finds that authorizing the issuance of public securities to provide a method to raise funds to provide windstorm and hail insurance through the association in certain designated portions of the state is for the benefit of the public and in furtherance of a public purpose.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 M. Public Securities Program › Section 2210.603. Applicability of Other Laws

Sec. 2210.603.  APPLICABILITY OF OTHER LAWS.  (a)  The board shall issue the public securities as described by Section 2210.604 in accordance with and subject to the requirements of Chapter 1232, Government Code, other than Section 1232.108 of that chapter, and in accordance with and subject to other provisions of Title 9, Government Code, that apply to issuance of a public security by a state agency.  In the event of a conflict, this subchapter controls.
(b)  A purpose for which public securities are issued under this chapter constitutes an eligible project for purposes of Chapter 1371, Government Code.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 M. Public Securities Program › Section 2210.604. Issuance of Public Securities Authorized

Sec. 2210.604.  ISSUANCE OF PUBLIC SECURITIES AUTHORIZED.  (a)  At the request of the association and with the approval of the commissioner, the Texas Public Finance Authority shall issue Class 1, Class 2, or Class 3 public securities.  The association shall submit to the commissioner a cost-benefit analysis of various financing methods and funding structures when requesting the issuance of public securities under this subsection.
(a-1)  The association and the commissioner must approve each tranche of commercial paper issued under a commercial paper program established under this chapter.
(b)  The association shall specify in the association's request to the board the maximum principal amount of the public securities and the maximum term of the public securities.
(c)  The principal amount determined by the association under Subsection (b) may be increased to include an amount sufficient to:
(1)  pay the costs related to issuance of the public securities;
(2)  provide a public security reserve fund;
(3)  capitalize interest for the period determined necessary by the association, not to exceed two years; and
(4)  provide the amount of debt service coverage for public securities determined by the association, in consultation with the authority, to be required for the issuance of marketable public securities.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, eff. June 19, 2009.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 43, 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 M. Public Securities Program › Section 2210.605. Terms of Issuance

Sec. 2210.605.  TERMS OF ISSUANCE.  (a)  The board shall determine the method of sale, type and form of public security, maximum interest rates, and other terms of the public securities that, in the board's judgment, best achieve the goals of the association and effect the borrowing at the lowest practicable cost.  The board may enter into a credit agreement in connection with the public securities.
(b)  Public securities must be issued by the board on behalf of the association.
(c)  Repealed by Acts 2015, 84th Leg., R.S., Ch. 615 , Sec. 31(3), eff. September 1, 2015.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, eff. June 19, 2009.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 44, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 31(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 M. Public Securities Program › Section 2210.606. Additional Covenants

Sec. 2210.606.  ADDITIONAL COVENANTS.  The board may make additional covenants with respect to the public securities and the designated income and receipts of the association pledged to their payment, and provide for the flow of funds and the establishment, maintenance, and investment of funds and accounts with respect to the public securities, and the administration of those funds and accounts, as provided in the proceedings authorizing the public securities.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 M. Public Securities Program › Section 2210.607. Public Security Proceeds

Sec. 2210.607.  PUBLIC SECURITY PROCEEDS.  The proceeds of public securities issued by the board under this subchapter may be deposited with the Texas Treasury Safekeeping Trust Company.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 M. Public Securities Program › Section 2210.608. Use of Public Security Proceeds

Sec. 2210.608.  USE OF PUBLIC SECURITY PROCEEDS.  (a)  Public security proceeds, including investment income, shall be held in trust for the exclusive use and benefit of the association.  The association may use the proceeds to:
(1)  pay incurred claims and operating expenses of the association;
(2)  purchase reinsurance for the association;
(3)  pay the costs of issuing the public securities, and public security administrative expenses, if any;
(4)  provide a public security reserve;
(5)  pay capitalized interest and principal on the public securities for the period determined necessary by the association;
(6)  pay private financial agreements entered into by the association as temporary sources of payment of losses and operating expenses of the association; and
(7)  reimburse the association for any cost described by Subdivisions (1)-(6) paid by the association before issuance of the public securities.
(b)  Any excess public security proceeds remaining after the purposes for which the public securities were issued are satisfied may be used to purchase or redeem outstanding public securities.  If there are no outstanding public security obligations or public security administrative expenses, the excess proceeds shall be transferred to the catastrophe reserve trust fund.
(c)  Notwithstanding Subsection (a)(2), the proceeds from public securities issued under Section 2210.072 before an occurrence or series of occurrences that results in incurred losses, including investment income, may not be used to purchase reinsurance for the association.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, eff. June 19, 2009.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 45, 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 M. Public Securities Program › Section 2210.610. Public Security Payments

Sec. 2210.610.  PUBLIC SECURITY PAYMENTS.  (a)  Revenues received from the premium surcharges under Sections 2210.612, 2210.613, and 2210.6131 may be applied only as provided by this subchapter.
(b)  The association may pay public security obligations with other legally available funds.
(c)  Public security obligations are payable only from sources provided for payment in this subchapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, eff. June 19, 2009.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 47, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 23, 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 M. Public Securities Program › Section 2210.611. Excess Revenue Collections and Investment Earnings

Sec. 2210.611.  EXCESS REVENUE COLLECTIONS AND INVESTMENT EARNINGS.  Revenue collected in any calendar year from a premium surcharge under Sections 2210.612, 2210.613, and 2210.6131 that exceeds the amount of the public security obligations and public security administrative expenses payable in that calendar year and interest earned on the funds may, in the discretion of the association, be:
(1)  used to pay public security obligations payable in the subsequent calendar year, offsetting the amount of the premium surcharge that would otherwise be required to be levied for the year under this subchapter;
(2)  used to redeem or purchase outstanding public securities; or
(3)  deposited in the catastrophe reserve trust fund.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, eff. June 19, 2009.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 48, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 24, 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 M. Public Securities Program › Section 2210.612. Payment of Class 1 Public Securities

Sec. 2210.612.  PAYMENT OF CLASS 1 PUBLIC SECURITIES.  (a)  The association shall pay Class 1 public securities issued under Section 2210.072 from:
(1)  net premium and other revenue; and
(2)  if net premium and other revenue are not sufficient to pay the securities, a catastrophe area premium surcharge collected in accordance with this section.
(b)  On approval by the commissioner, the association shall assess, as provided by this section, a premium surcharge to each policyholder of a policy described by Subsection (c).  The premium surcharge must be set in an amount sufficient to pay, for the duration of the issued public securities, all debt service not already covered by available funds and all related expenses on the public securities.
(c)  The premium surcharge under this section shall be assessed on all policyholders of association policies issued under this chapter.
(d)  A premium surcharge under this section is a separate charge in addition to the premiums collected and is not subject to premium tax or commissions.  Failure by a policyholder to pay the surcharge constitutes failure to pay premium for purposes of policy cancellation.
(e)  The association may enter financing arrangements as described by Section 2210.072(d) as necessary to obtain public securities issued under Section 2210.072.  Nothing in this subsection shall prevent the authorization and creation of one or more programs for the issuance of commercial paper before the date of an occurrence or series of occurrences that results in insured losses under Section 2210.072(a).
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, eff. June 19, 2009.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 49, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 25, 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 M. Public Securities Program › Section 2210.613. Payment of Class 2 Public Securities

Sec. 2210.613.  PAYMENT OF CLASS 2 PUBLIC SECURITIES.  (a)  The association shall pay Class 2 public securities issued under Section 2210.073 from:
(1)  net premium and other revenue; and
(2)  if net premium and other revenue are not sufficient to pay the securities, a catastrophe area premium surcharge collected in accordance with this section.
(b)  On approval by the commissioner, the association shall assess, as provided by this section, a premium surcharge to each policyholder of a policy described by Subsection (c).  The premium surcharge must be set in an amount sufficient to pay, for the duration of the issued public securities, all debt service not already covered by available funds and all related expenses on the public securities.
(c)  The premium surcharge under this section shall be assessed on all policyholders of association policies issued under this chapter.
(d)  A premium surcharge under this section is a separate charge in addition to the premiums collected and is not subject to premium tax or commissions.  Failure by a policyholder to pay the surcharge constitutes failure to pay premium for purposes of policy cancellation.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, eff. June 19, 2009.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 50, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 26, 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 M. Public Securities Program › Section 2210.6131. Payment of Class 3 Public Securities

Sec. 2210.6131.  PAYMENT OF CLASS 3 PUBLIC SECURITIES.  (a)  The association shall pay Class 3 public securities issued under Section 2210.0741 from:
(1)  net premium and other revenue; and
(2)  if net premium and other revenue are not sufficient to pay the securities, a catastrophe area premium surcharge collected in accordance with this section.
(b)  On approval by the commissioner, the association shall assess, as provided by this section, a premium surcharge to each policyholder of a policy described by Subsection (c).  The premium surcharge must be set in an amount sufficient to pay, for the duration of the issued public securities, all debt service not already covered by available funds and all related expenses on the public securities.
(c)  The premium surcharge under this section shall be assessed on all policyholders of association policies issued under this chapter.
(d)  A premium surcharge under this section is a separate charge in addition to the premiums collected and is not subject to premium tax or commissions.  Failure by a policyholder to pay the surcharge constitutes failure to pay premium for purposes of policy cancellation.
Added by Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 27, 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 M. Public Securities Program › Section 2210.6132. Contingent Source of Payment for Class 2 and Class 3 Public Securities

Sec. 2210.6132.  CONTINGENT SOURCE OF PAYMENT FOR CLASS 2 AND CLASS 3 PUBLIC SECURITIES.  (a)  The commissioner may determine, in consultation with the board and the authority, that:
(1)  the authority is unable to issue Class 2 or Class 3 public securities to be payable under Section 2210.613 or 2210.6131, as applicable; or
(2)  the issuance of Class 2 or Class 3 public securities to be payable under Section 2210.613 or 2210.6131, as applicable, is financially unreasonable for the association.
(b)  If the commissioner makes a determination under Subsection (a), the commissioner shall order the Class 2 or Class 3 public securities, as applicable, to be paid by a premium surcharge assessed by each insurer, the association, and the Texas FAIR Plan Association on all policyholders of policies that are in effect on or after the 180th day after the date the commissioner issues the order.  The premium surcharge must be set in an amount sufficient to pay all debt service not already covered by available funds and all related expenses on the public securities.
(c)  The premium surcharge under this section shall be assessed on all policyholders of policies that cover insured property that is located in a catastrophe area, including automobiles principally garaged in a catastrophe area.  The premium surcharge shall be assessed on each Texas windstorm and hail insurance policy and each property and casualty 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.
Added by Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 27, 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 M. Public Securities Program › Section 2210.614. Refinancing Public Securities

Sec. 2210.614.  REFINANCING PUBLIC SECURITIES.  The association may request the board to refinance any public securities issued in accordance with Subchapter B-1, whether Class 1, Class 2, or Class 3 public securities, with public securities payable from the same sources as the original public securities.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 M. Public Securities Program › Section 2210.615. Source of Payment; State Debt Not Created

Sec. 2210.615.  SOURCE OF PAYMENT; STATE DEBT NOT CREATED.  (a)  A public security or credit agreement is payable solely from revenue as provided by this subchapter.
(b)  A public security issued under this subchapter, and any related credit agreement, is not a debt of this state or any state agency or political subdivision of this state, and does not constitute a pledge of the faith and credit of this state or any state agency or political subdivision of this state.
(c)  Each public security, and any related credit agreement, issued under this subchapter must state on the security's face that:
(1)  neither the state nor a state agency, political corporation, or political subdivision of the state is obligated to pay the principal of or interest on the public security except as provided by this subchapter; and
(2)  neither the faith and credit nor the taxing power of the state or any state agency, political corporation, or political subdivision of the state is pledged to the payment of the principal of or interest on the public security.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 M. Public Securities Program › Section 2210.616. State Not to Impair Public Security Obligations

Sec. 2210.616.  STATE NOT TO IMPAIR PUBLIC SECURITY OBLIGATIONS.  (a)  The state pledges for the benefit and protection of financing parties, the board, and the association that the state will not take or permit any action that would:
(1)  impair the collection of premium surcharges or the deposit of those funds into the applicable trust fund;
(2)  reduce, alter, or impair the premium surcharges to be imposed, collected, and remitted to financing parties until the principal, interest, and premium, and any other charges incurred and contracts to be performed in connection with the related public securities, have been paid and performed in full; or
(3)  in any way impair the rights and remedies of the public security owners until the public securities are fully discharged.
(b)  A party issuing public securities under this subchapter may include the pledge described by Subsection (a) in any documentation relating to those securities.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, eff. June 19, 2009.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 53, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 28, 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 M. Public Securities Program › Section 2210.6165. Property Rights

Sec. 2210.6165.  PROPERTY RIGHTS.  If public securities issued under this subchapter are outstanding, the rights and interests of the association, a successor to the association, any member of the association, or any member of the Texas FAIR Plan Association, including the right to impose, collect, and receive a premium surcharge authorized under this subchapter, are only contract rights until those revenues are first pledged for the repayment of the association's public security obligations as provided by Section 2210.609.
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 2 (H.B. 3), Sec. 54, eff. September 28, 2011.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 29, 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 M. Public Securities Program › Section 2210.617. Enforcement by Mandamus

Sec. 2210.617.  ENFORCEMENT BY MANDAMUS.  A writ of mandamus and any other legal and equitable remedies are available to a party at interest to require the association or another party to fulfill an agreement and to perform functions and duties under:
(1)  this subchapter;
(2)  the Texas Constitution; or
(3)  a relevant public security resolution.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 M. Public Securities Program › Section 2210.618. Exemption From Taxation

Sec. 2210.618.  EXEMPTION FROM TAXATION.  A public security issued under this subchapter, any transaction relating to the public security, and profits made from the sale of the public security are exempt from taxation by this state or by a municipality or other political subdivision of this state.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 M. Public Securities Program › Section 2210.619. No Personal Liability

Sec. 2210.619.  NO PERSONAL LIABILITY.  The members of the association, members of the association board of directors, association employees, the board, the employees of the Texas Public Finance Authority, the commissioner, and department employees are not personally liable as a result of exercising the rights and responsibilities granted under this subchapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 M. Public Securities Program › Section 2210.620. Authorized Investments

Sec. 2210.620.  AUTHORIZED INVESTMENTS.  Public securities issued under this subchapter are authorized investments under:
(1)  Subchapter B, Chapter 424;
(2)  Subchapter C, Chapter 425; and
(3)  Sections 425.203-425.213.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 N. Legislative Oversight Board › Section 2210.651. Definition

Sec. 2210.651.  DEFINITION.  In this subchapter, "board" means the windstorm insurance legislative oversight board.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 N. Legislative Oversight Board › Section 2210.652. Composition of Board

Sec. 2210.652.  COMPOSITION OF BOARD.  The windstorm insurance legislative oversight board is composed of eight members as follows:
(1)  four members of the senate appointed by the lieutenant governor, including the chairperson of the Senate Business and Commerce Committee, who shall serve as co-chairperson of the board; and
(2)  four members of the house of representatives appointed by the speaker of the house of representatives.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 N. Legislative Oversight Board › Section 2210.653. Powers and Duties of Board

Sec. 2210.653.  POWERS AND DUTIES OF BOARD.  (a)  The board shall:
(1)  receive information about rules proposed by the department relating to windstorm insurance and may submit comments to the commissioner on the proposed rules;
(2)  monitor windstorm insurance in this state, including:
(A)  the adequacy of rates;
(B)  the operation of the association; and
(C)  the availability of coverage; and
(3)  review recommendations for legislation proposed by the department or the association.
(b)  The board may request reports and other information from the department and the association as necessary to implement this subchapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 N. Legislative Oversight Board › Section 2210.654. Report

Sec. 2210.654.  REPORT.  (a)  Not later than November 15 of each even-numbered year, the board shall report on the board's activities under Section 2210.653 to:
(1)  the governor;
(2)  the lieutenant governor; and
(3)  the speaker of the house of representatives.
(b)  The report must include:
(1)  an analysis of any problems identified; and
(2)  recommendations for any legislative action necessary to address those problems and to foster stability, availability, and competition within the windstorm insurance industry.
Added by Acts 2009, 81st Leg., R.S., Ch. 1408 (H.B. 4409), Sec. 41, 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 O. Depopulation Program › Section 2210.701. Depopulation Program

Sec. 2210.701.  DEPOPULATION PROGRAM.  (a)  The association shall administer, subject to commissioner approval, a depopulation program that encourages the transfer of association policies to insurers through the voluntary market or assumption reinsurance.
(b)  An insurer engaged in the business of property and casualty insurance in this state may elect to participate in the depopulation program.
Added by Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 30, 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 O. Depopulation Program › Section 2210.702. Assumption Reinsurance Depopulation

Sec. 2210.702.  ASSUMPTION REINSURANCE DEPOPULATION.  (a)  The association shall make available to insurers who elect to participate in the depopulation program association policy information necessary for the insurers to determine whether to reinsure a policy ceded to the insurer by the association.  The commissioner shall by rule establish the information that is necessary to provide to an insurer under this subsection.
(b)  If an insurer elects to reinsure a policy under this section, the reinsurance must be provided as assumption reinsurance by novation and the insurer is legally and contractually responsible for the association policy ceded to the insurer on the effective date of the reinsurance agreement regardless of whether the association continues to provide some services on the policy.  The association is not liable under the policy on and after the effective date of the assumption reinsurance agreement.  Except as specifically provided in an agreement between the association and the insurer, the insurer shall administer the policy and process, adjust, and pay claims in accordance with the policy.
(c)  If an insurer elects to provide reinsurance under this section, the insurer shall comply with the applicable provisions of Chapters 202 and 493.
Added by Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 30, 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 O. Depopulation Program › Section 2210.703. Renewal of Reinsured Policies; Comparable Coverage

Sec. 2210.703.  RENEWAL OF REINSURED POLICIES; COMPARABLE COVERAGE.  (a)  An insurer electing to offer a policy under Section 2210.702 shall offer a renewal of that policy to the association policyholder for each of the next three years subject to the insurer's rate and underwriting guidelines as filed under this code.
(b)  An insurer may not offer a policy to an association policyholder under this section unless the policy contains generally comparable coverage and premiums to the association policy as determined by commissioner rule.  The premiums for a policy of generally comparable coverage may not exceed 115 percent of the premiums for the association policy.
(c)  Subchapter L-1 does not apply to a policy renewed under this section.
Added by Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 30, 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 O. Depopulation Program › Section 2210.704. Confidentiality of Information; Use of Policyholder's Agent

Sec. 2210.704.  CONFIDENTIALITY OF INFORMATION; USE OF POLICYHOLDER'S AGENT.  (a)  An insurer may use information concerning a specific policy or insured provided by the association under Section 2210.702(a) only for the purposes of this subchapter and may not use or disclose the information for any other purpose.
(b)  If an insurer elects to renew a policy for an association policyholder identified from information provided to the insurer under Section 2210.702, the insurer must offer the policy through the insurance agent of record for the association policyholder under the prevailing terms, conditions, and commissions of the agent.
(c)  An insurer that offers to renew a policy under Section 2210.703 shall allow the policyholder's agent to enter into a limited service agreement with the insurer for the agent to continue to provide services to the policyholder.
Added by Acts 2015, 84th Leg., R.S., Ch. 615 (S.B. 900), Sec. 30, eff. September 1, 2015.