Simmons Premium Relief Bill Creates Two Empty Funds

The text as introduced · 1,230 words

89R5280 RDS-D

By: Simmons
H.B. No. 2473

A BILL TO BE ENTITLED

AN ACT

relating to emergency insurance premium relief programs for certain

residential property insurance policies.

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

SECTION 1. Subtitle D, Title 10, Insurance Code, is amended

by adding Chapter 2009 to read as follows:

CHAPTER 2009. EMERGENCY RESIDENTIAL PROPERTY INSURANCE PREMIUM

RELIEF PROGRAM

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2009.001. DEFINITIONS. In this chapter:

(1) "Fund" means the emergency residential property

insurance premium relief fund established under this chapter.

(2) "Program" means the emergency residential

property insurance premium relief program established under this

chapter.

(3) "Tax year" has the meaning assigned by Section

1.04, Tax Code.

Sec. 2009.002. APPLICABILITY OF CHAPTER. This chapter

applies only to a residential property insurance policy that

provides coverage for a property:

(1) that is the policyholder's residence homestead

under Section 11.13, Tax Code; and

(2) for which the appraised value under Chapter 23,

Tax Code, during the tax year beginning on January 1 of the year

preceding the year in which the policyholder submits an application

for a relief payment under this chapter is not more than $2 million.

SUBCHAPTER B. ESTABLISHMENT AND OPERATION OF FUND

Sec. 2009.051. ESTABLISHMENT OF FUND. (a) The emergency

residential property insurance premium relief fund is created as a

fund in the state treasury outside the general revenue fund.

(b) The fund consists of:

(1) money appropriated, credited, or transferred to

the fund by the legislature;

(2) gifts or grants contributed to the fund; and

(3) interest earned on deposits and investments of the

fund.

(c) The fund may be used only to implement the program,

including the costs of program administration and operation.

Sec. 2009.052. EMERGENCY RESIDENTIAL PROPERTY INSURANCE

PREMIUM RELIEF PROGRAM. The department shall establish and

administer the emergency residential property insurance premium

relief program for the public purpose of protecting housing of

residents of this state.

Sec. 2009.053. APPLICATION; ELIGIBILITY. (a) An eligible

policyholder may apply to the department for a program payment in

the form and manner prescribed by the commissioner. The

application must include information necessary to demonstrate

eligibility.

(b) A policyholder is eligible for a program payment if:

(1) the policyholder has experienced an economic

hardship;

(2) the policyholder owes at least one delinquent

payment toward the premium for a policy to which this chapter

applies; and

(3) the fund has an amount of money necessary to

satisfy all delinquent payments toward the premium for the

policyholder's policy.

(c) A policyholder is ineligible for a program payment if

the policyholder has received another program payment.

Sec. 2009.054. DETERMINATION; PAYMENT. (a) Not later than

the 30th day after the date the department receives an application

under Section 2009.053, the commissioner shall determine whether

the policyholder is eligible for a program payment under this

chapter.

(b) If the commissioner determines that the policyholder is

eligible for a program payment, the department shall issue the

payment to the policyholder's insurer as soon as practicable in an

amount necessary to satisfy all delinquent payments toward the

policyholder's premium for the policy for which the payment was

awarded.

Sec. 2009.055. RESTRICTION ON USE OF PAYMENT. A recipient

of a program payment may use the money only to pay the premium for

the policy for which the payment was awarded.

Sec. 2009.056. RULEMAKING. The commissioner shall adopt

rules necessary to implement this chapter, including rules that

establish:

(1) a standardized application process, including the

form to be used to apply for a program payment and the manner of

submitting the form;

(2) deadlines for:

(A) applying for a program payment; and

(B) disbursement of a program payment; and

(3) procedures for:

(A) monitoring the disbursement of a program

payment to ensure compliance with Section 2009.055; and

(B) the return of a program payment that was not

used for a purpose described by Section 2009.055.

SECTION 2. Chapter 2210, Insurance Code, is amended by

adding Subchapter P to read as follows:

SUBCHAPTER P. EMERGENCY ASSOCIATION PREMIUM RELIEF PROGRAM

Sec. 2210.721. DEFINITIONS. In this subchapter:

(1) "Fund" means the emergency association premium

relief fund established under this subchapter.

(2) "Program" means the emergency association premium

relief program established under this subchapter.

(3) "Tax year" has the meaning assigned by Section

1.04, Tax Code.

Sec. 2210.722. APPLICABILITY OF SUBCHAPTER. This

subchapter applies only to an association policy that provides

coverage for a property:

(1) that is the policyholder's residence homestead

under Section 11.13, Tax Code; and

(2) for which the appraised value under Chapter 23,

Tax Code, during the tax year beginning on January 1 of the year

preceding the year in which the policyholder submits an application

for a relief payment under this chapter is not more than $2 million.

Sec. 2210.723. EMERGENCY ASSOCIATION PREMIUM RELIEF FUND.

(a) The emergency association premium relief fund is created as a

fund in the state treasury outside the general revenue fund.

(b) The fund consists of:

(1) money appropriated, credited, or transferred to

the fund by the legislature;

(2) gifts or grants contributed to the fund; and

(3) interest earned on deposits and investments of the

fund.

(c) The fund may be used only to implement the program,

including the costs of program administration and operation.

Sec. 2210.724. EMERGENCY ASSOCIATION PREMIUM RELIEF

PROGRAM. The department shall establish and administer the

emergency association premium relief program for the public purpose

of protecting the housing of residents of this state.

Sec. 2210.725. APPLICATION; ELIGIBILITY. (a) An eligible

policyholder may apply to the department to receive a relief

payment under the program in the form and manner prescribed by the

commissioner. The application must include information necessary

to demonstrate eligibility.

(b) A policyholder is eligible for a program payment if:

(1) the policyholder has experienced an economic

hardship;

(2) the policyholder owes at least one delinquent

payment toward the premium for an association policy; and

(3) the fund has an amount of money sufficient to

satisfy all delinquent payments toward the premium for the

policyholder's association policy.

(c) A policyholder is ineligible for a program payment if

the policyholder has received another program payment.

Sec. 2210.726. DETERMINATION; PAYMENT. (a) Not later than

the 30th day after the date the department receives an application

under Section 2210.725, the commissioner shall determine whether

the policyholder is eligible for a program payment.

(b) If the commissioner determines that a policyholder is

eligible for a program payment, the department shall issue the

payment to the association in an amount necessary to satisfy the

premiums for the policyholder's association policy for which the

payment was awarded.

Sec. 2210.727. RESTRICTION ON USE OF PAYMENT. The

association may use the money from a program payment only to pay the

premium for the association policy for which the payment was

awarded.

Sec. 2210.728. RULEMAKING. The commissioner shall adopt

rules necessary to implement this subchapter, including rules that

establish:

(1) a standardized application process, including the

form to be used to apply for a program payment and the manner of

submitting the form;

(2) deadlines for:

(A) applying for a program payment; and

(B) disbursement of a program payment; and

(3) procedures for:

(A) monitoring the disbursement of a program

payment to ensure compliance with Section 2210.727; and

(B) the return of a program payment that was not

used for a purpose described by Section 2210.727.

SECTION 3. This Act takes effect September 1, 2025.