Bill Text: TX HB1992 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to policyholder approval for certain windstorm and hail insurance rate changes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-08 - Referred to Insurance [HB1992 Detail]
Download: Texas-2023-HB1992-Introduced.html
88R9611 JES-D | ||
By: Herrero | H.B. No. 1992 |
|
||
|
||
relating to policyholder approval for certain windstorm and hail | ||
insurance rate changes. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter H, Chapter 2210, Insurance Code, is | ||
amended by adding Section 2210.3591 to read as follows: | ||
Sec. 2210.3591. POLICYHOLDER APPROVAL REQUIRED FOR CERTAIN | ||
RATE CHANGES. (a) The board of directors may not approve a rate | ||
that reflects an average rate change that is more than five percent | ||
higher than the rate in effect on the date the board proposes the | ||
rate unless the proposed rate change has been approved by a majority | ||
of the policyholders of the association. | ||
(b) The commissioner shall establish the procedure by which | ||
policyholders are notified of and vote on a proposed rate change | ||
under this section. | ||
SECTION 2. Not later than January 1, 2024, the commissioner | ||
of insurance shall adopt rules necessary to implement Section | ||
2210.3591, Insurance Code, as added by this Act. | ||
SECTION 3. The change in law made by this Act applies only | ||
to a rate approved by the board of directors of the Texas Windstorm | ||
Insurance Association on or after January 1, 2024. | ||
SECTION 4. This Act takes effect September 1, 2023. |