Bill Summary – FastDemocracy

      
		By: Lozano
            H.B. No. 2880
         
               A BILL TO BE ENTITLED
            
               AN ACT
            
            relating to the administration of the Texas Windstorm Insurance 
         
            Association.
         
                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         
                   SECTION 1.  Subchapter A, Chapter 2210, Insurance Code, is 
         
            amended by adding Section 2210.016 to read as follows:
         
                   Sec. 2210.016.  LEGISLATIVE LOBBYING.  (a)  The association 
         
            may not use any money under its control to attempt to influence the 
         
            passage or defeat of a legislative measure.
         
                   (b)  An employee or board member that violates Subsection (a) 
         
            is subject to immediate termination and a fine of $10,000 to be 
         
            deposited in the catastrophe reserve trust fund.
         
                   (c)  This section does not prohibit a member of the board of 
         
            directors or an employee from using money under its control to 
         
            provide public information or to provide information responsive to 
         
            a request.
         
                   SECTION 2.  Subchapter B, Chapter 2210, Insurance Code, is 
         
            amended by adding Section 2210.063 to read as follows:
         
                   Sec. 2210.063.  LOCATION OF ASSOCIATION HEADQUARTERS.  The 
         
            headquarters of the association shall be located in a first tier 
         
            coastal county or second tier coastal county.
         
                   SECTION 3.  Subchapter B, Chapter 2210, Insurance Code, is 
         
            amended by adding Section 2210.064 to read as follows:
         
                   Sec. 2210.064.  ASSOCIATION GENERAL MANAGER.  (a)  The 
         
            general manager of the association is responsible and accountable  
         
            to the commissioner and the board of directors.
         
                   (b)  The general manager is appointed by the commissioner in 
         
            accordance with this section.
         
                   (c)  The commissioner may remove an existing general manager 
         
            and appoint a new general manager at any time.
         
                   (d)  The general manager must have demonstrated knowledge of 
         
            windstorm insurance, general business, or actuarial principles  
         
            sufficient to make the success of the association probable.
         
                   (e)  A person may not serve as general manager of the  
         
            association if the person or the person's spouse:
         
                         (1)  is employed by or participates in the management 
         
            of a business entity or other organization:
         
                               (A)  operating in the property and casualty 
         
            insurance industry in this state;
         
                               (B)  receiving money from the association, other  
         
            than insurance claim payments; or
         
                               (C)  receiving money from association 
         
            policyholders  with respect to the policyholders' claims;
         
                         (2)  owns or controls, directly or indirectly, more 
         
            than a 10 percent interest in a business entity or other 
         
            organization:
         
                               (A)  operating in the property and casualty 
         
            insurance industry in this state;
         
                               (B)  receiving money from the association, other  
         
            than insurance claim payments; or
         
                               (C)  receiving money from association 
         
            policyholders  with respect to the policyholders' claims;
         
                         (3)  uses or receives a substantial amount of tangible  
         
            goods, services, or money from the association, other than:
         
                               (A)  insurance claim payments; or
         
                               (B)  compensation or reimbursement authorized by 
         
            law for the general manager's membership, attendance, or expenses.
         
                   SECTION 4.  Section 2210.0725(a), Insurance Code, is amended 
         
            to read as follows:
         
                   Sec. 2210.0725.  PAYMENT FROM CLASS 1 ASSESSMENTS.  (a)  
         
            Losses in a catastrophe year not paid under Sections 2210.0715 and 
         
            2210.072 shall be paid as provided by this section from Class 1 
         
            member assessments not to exceed $500 million plus an adjustment 
         
            equal to the Consumer Price Index for that catastrophe year.
         
                   SECTION 5.  Section 2210.074(a), Insurance Code, is amended 
         
            to read as follows:
         
                   Sec. 2210.074.  PAYMENT THROUGH CLASS 2 ASSESSMENTS.  (a)  
         
            Losses in a catastrophe year not paid under Sections 2210.0715, 
         
            2210.072, 2210.0725, and 2210.073 shall be paid as provided by this 
         
            Statutes affected: 
Introduced: Insurance Code 2210.0725, Insurance Code 2210.074, Insurance Code 2210.0742, Insurance Code 2210.102, Insurance Code 2210.103, Insurance Code 2210.105, Insurance Code 2210.352, Insurance Code 2210.453, Insurance Code 2210.618 (Insurance Code 2210)



	A BILL TO BE ENTITLED
	AN ACT
	relating to the administration of the Texas Windstorm Insurance
	Association.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter A, Chapter 2210, Insurance Code, is
	amended by adding Section 2210.016 to read as follows:
	Sec. 2210.016. LEGISLATIVE LOBBYING. (a) The association
	may not use any money under its control to attempt to influence the
	passage or defeat of a legislative measure.
	(b) An employee or board member that violates Subsection (a)
	is subject to immediate termination and a fine of $10,000 to be
	deposited in the catastrophe reserve trust fund.
	(c) This section does not prohibit a member of the board of
	directors or an employee from using money under its control to
	provide public information or to provide information responsive to
	a request.
	SECTION 2. Subchapter B, Chapter 2210, Insurance Code, is
	amended by adding Section 2210.063 to read as follows:
	Sec. 2210.063. LOCATION OF ASSOCIATION HEADQUARTERS. The
	headquarters of the association shall be located in a first tier
	coastal county or second tier coastal county.
	SECTION 3. Subchapter B, Chapter 2210, Insurance Code, is
	amended by adding Section 2210.064 to read as follows:
	Sec. 2210.064. ASSOCIATION GENERAL MANAGER. (a) The
	general manager of the association is responsible and accountable
	to the commissioner and the board of directors.
	(b) The general manager is appointed by the commissioner in
	accordance with this section.
	(c) The commissioner may remove an existing general manager
	and appoint a new general manager at any time.
	(d) The general manager must have demonstrated knowledge of
	windstorm insurance, general business, or actuarial principles
	sufficient to make the success of the association probable.
	(e) A person may not serve as general manager of the
	association if the person or the person's spouse:
	(1) is employed by or participates in the management
	of a business entity or other organization:
	(A) operating in the property and casualty
	insurance industry in this state;
	(B) receiving money from the association, other
	than insurance claim payments; or
	(C) receiving money from association
	policyholders with respect to the policyholders' claims;
	(2) owns or controls, directly or indirectly, more
	than a 10 percent interest in a business entity or other
	organization:
	(A) operating in the property and casualty
	insurance industry in this state;
	(B) receiving money from the association, other
	than insurance claim payments; or
	(C) receiving money from association
	policyholders with respect to the policyholders' claims;
	(3) uses or receives a substantial amount of tangible
	goods, services, or money from the association, other than:
	(A) insurance claim payments; or
	(B) compensation or reimbursement authorized by
	law for the general manager's membership, attendance, or expenses.
	SECTION 4. Section 2210.0725(a), Insurance Code, is amended
	to read as follows:
	Sec. 2210.0725. PAYMENT FROM CLASS 1 ASSESSMENTS. (a)
	Losses in a catastrophe year not paid under Sections 2210.0715 and
	2210.072 shall be paid as provided by this section from Class 1
	member assessments not to exceed $500 million plus an adjustment
	equal to the Consumer Price Index for that catastrophe year.
	SECTION 5. Section 2210.074(a), Insurance Code, is amended
	to read as follows:
	Sec. 2210.074. PAYMENT THROUGH CLASS 2 ASSESSMENTS. (a)
	Losses in a catastrophe year not paid under Sections 2210.0715,
	2210.072, 2210.0725, and 2210.073 shall be paid as provided by this
	Statutes affected: Introduced: Insurance Code 2210.0725, Insurance Code 2210.074, Insurance Code 2210.0742, Insurance Code 2210.102, Insurance Code 2210.103, Insurance Code 2210.105, Insurance Code 2210.352, Insurance Code 2210.453, Insurance Code 2210.618 (Insurance Code 2210)