Texas Senate Bill SB734

Texas 2009 - 81st Regular

Caption

Relating to the board of directors of the Texas Windstorm Insurance Association.

Impact

The bill aims to enhance representation and accountability within the TWIA by establishing eligibility criteria that prioritize individuals with firsthand experience in affected areas. By doing so, SB734 seeks to improve decision-making processes related to insurance policies and claims in regions prone to windstorms, which have historically faced challenges regarding insurance coverage and response. Additionally, the inclusion of a commissioner or their appointee as an ex officio member reinforces state oversight in TWIA operations, potentially leading to increased scrutiny of board activities.

Summary

SB734 proposes amendments to the governance structure of the Texas Windstorm Insurance Association (TWIA). The bill specifically restructures the board of directors by modifying the number of members and the qualifications required for their appointment. It stipulates that the board will consist of 11 members, including representatives from the insurance industry, public members, and property and casualty agents. Importantly, it mandates that board members must be residents of catastrophe areas and policyholders of the association, ensuring their interests align with those most affected by windstorm insurance policies.

Contention

While the bill is largely viewed as a positive step towards reforming the insurance landscape in Texas, there may be concerns about the centralization of power within the board. Critics could argue that limiting board membership to specific stakeholders may inhibit broader industry representation and marginalize voices from other sectors that play a role in windstorm insurance issues. Furthermore, the effectiveness of requiring members to reside in catastrophe areas could be debated, as the diversity of experiences and perspectives might become limited if the board heavily comprises local residents over broader industry experts.