Relating to Texas Windstorm Insurance Association underwriting standards for structures that meet certain construction standards.

89(R) HB 2841 - House Committee Report version - Bill Text

89R22768 DNC-F

By: Smithee, Paul, et al.

H.B. No. 2841

Substitute the following for H.B. No. 2841:

By: Dean

C.S.H.B. No. 2841

A BILL TO BE ENTITLED

AN ACT

relating to Texas Windstorm Insurance Association underwriting

standards for structures that meet certain construction standards.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2210.152, Insurance Code, is amended by

adding Subsection (d) to read as follows:

(d)

The plan of operation must provide that certification

that a structure meets the fortified home, multifamily, or

commercial construction standards published by the Insurance

Institute for Business and Home Safety or its successor entity is an

alternative to a certificate of compliance issued under Section

2210.2515 for purposes of Section 2210.258.

SECTION 2. Section 2210.258, Insurance Code, is amended by

amending Subsections (a) and (b) and adding Subsection (e) to read

as follows:

(a) Except as provided by Subsections (c)
,
[
and
] (d)
, and

(e)
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)
, and

(e)
, 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.

(e)

The association may insure a structure constructed,

altered, remodeled, enlarged, repaired, or added to on or after

June 19, 2009, for which a certificate of compliance has not been

issued in accordance with Section 2210.2515, provided that the

department and the association have received a certification that

the structure was constructed in accordance with or retrofitted to

meet the fortified home, multifamily, or commercial construction

standards published by the Insurance Institute for Business and

Home Safety or its successor entity.

SECTION 3. Section 2210.259, Insurance Code, is amended by

adding Subsection (d) to read as follows:

(d)

This section does not apply to an insurance policy

insuring a structure eligible for coverage under Section

2210.258(e).

SECTION 4. (a) The changes in law made by this Act apply

only to a structure constructed, altered, remodeled, enlarged,

repaired, or added to on or after the effective date of this Act.

(b) As soon as practicable after the effective date of this

Act, the Texas Windstorm Insurance Association shall propose to the

commissioner of insurance amendments to the association's plan of

operation to conform to the changes in law made by this Act.

SECTION 5. This Act takes effect September 1, 2025.