HB2473 - Relating to emergency insurance premium relief programs for certain residential property insurance policies.

  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.