Bill Text: TX HB3038 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to reinsurance for catastrophic losses provided to the Texas Windstorm Insurance Association by member insurers.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-04-09 - Left pending in committee [HB3038 Detail]
Download: Texas-2019-HB3038-Introduced.html
| 86R12953 SMT-D | ||
| By: Middleton | H.B. No. 3038 | |
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| relating to reinsurance for catastrophic losses provided to the | ||
| Texas Windstorm Insurance Association by member insurers. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter J, Chapter 2210, Insurance Code, is | ||
| amended by adding Section 2210.4522 to read as follows: | ||
| Sec. 2210.4522. REINSURANCE REQUIRED. (a) Notwithstanding | ||
| any other provision of this chapter, a member insurer shall provide | ||
| to the association reinsurance in lieu of reinsurance purchased | ||
| under Section 2210.453 at no cost to the association. The | ||
| proportion of the losses that exceed the attachment point for the | ||
| provided reinsurance is calculated in the manner used to determine | ||
| each insurer's participation in the association for the year under | ||
| Section 2210.052. | ||
| (b) A member insurer may purchase reinsurance to cover the | ||
| proportion of losses for which the insurer is responsible under | ||
| Subsection (a). | ||
| SECTION 2. The Texas Windstorm Insurance Association shall | ||
| amend the association's plan of operation to conform to the changes | ||
| in law made by this Act not later than the 60th day after the | ||
| effective date of this Act. | ||
| SECTION 3. This Act takes effect September 1, 2019. | ||
