Relating to the operation and funding of the Texas Windstorm Insurance Association, including funding of coverage for certain catastrophic events through the issuance of public securities.
Impact
The bill proposes amendments to existing sections of the Insurance Code, stipulating the terms under which the TWIA can issue public securities for raising necessary funds. These changes would allow the association to access financial mechanisms like catastrophe area public securities to mitigate risks associated with catastrophic weather events. The intent is to ensure the association can fulfill its obligations to policyholders during times of high claims, enhancing the financial stability of TWIA.
Summary
House Bill 4733 focuses on the operation and funding of the Texas Windstorm Insurance Association (TWIA), specifically addressing the necessity of funding coverage for catastrophic events through the issuance of public securities. The bill recognizes the ongoing challenges of providing adequate windstorm and hail insurance in the seacoast territory, emphasizing that without such provisions, economic welfare and orderly growth in the state could be severely impeded. This emphasizes the role of TWIA as a residual insurer of last resort, crucial for property owners unable to obtain insurance through the private market.
Contention
One area of notable contention revolves around the financial mechanisms proposed within the bill, particularly the issuance and management of public securities. Critics may raise concerns about the implications of relying on public securities to fund insurance obligations, particularly in terms of accountability, transparency in the issuance process, and the potential long-term financial impact on both policyholders and the state. Moreover, opposition may come from stakeholders who prefer direct state involvement and oversight or fear that leveraged funding through public securities could lead to financial strain on the association in future catastrophic events.
Relating to funding of excess losses and operating expenses of the Texas Windstorm Insurance Association; authorizing an assessment; authorizing a surcharge.
Relating to funding of excess losses and operating expenses of the Texas Windstorm Insurance Association; authorizing an assessment, a surcharge, and an infrastructure grant.
Relating to the operation of the Texas Windstorm Insurance Association, to the resolution of certain disputes concerning claims made to that association, and to the issuance of windstorm and hail insurance policies in the private insurance market by certain insurers; providing penalties.
Relating to the operation of the Texas Windstorm Insurance Association and to the resolution of certain disputes concerning claims made to that association; providing penalties.
Relating to the operation and name of the Texas Windstorm Insurance Association and to the resolution of certain disputes concerning claims made to that association; providing penalties.
Relating to the operation of the Texas Windstorm Insurance Association and to catastrophe preparedness in the seacoast territories of this state; authorizing assessments, surcharges, and fees.