Relating to the establishment, funding, and operation of the Texas natural disaster catastrophe fund and the disaster preparedness and mitigation grant council.
Impact
The implementation of SB1379 is expected to amend the state's existing legislative framework surrounding disaster response and insurance. The Act introduces a reimbursement program whereby insurers can receive financial back-up from the state in the event of catastrophic losses stemming from disasters like hurricanes or tornadoes. This will also include the establishment of a Disaster Preparedness and Mitigation Grant Council to oversee appropriate allocation of funds for enhancing disaster readiness. The endorsement of these measures indicates the Texas legislature's intention to bolster disaster recovery efforts and minimize the economic impact on communities affected by such events.
Summary
SB1379, the Texas Natural Disaster Catastrophe Fund Act, aims to address the financial challenges posed by natural disasters on the insurance market in Texas. The bill establishes a catastrophe fund to provide reimbursement to insurers for catastrophic losses while aiming to maintain a viable property insurance market. Legislators recognized the increasing frequency and severity of natural disasters leading to significant insured losses, which has pressured insurers to reduce their exposure. Establishing this fund is an attempt to stabilize the insurance market and ensure residents have access to reliable property insurance, thereby supporting the economy and public welfare.
Contention
While many lawmakers support the bill for its potential to fortify the insurance market and enhance disaster preparedness, some reservations have been expressed regarding the implementation and funding mechanisms. Critics might argue that reliance on state funding poses long-term financial risks, especially in the context of repeated natural disasters. Furthermore, there may be concerns about the equitable distribution of funds and how efficiently the newly established council will operate. As such, discussions around SB1379 could bring forth debates about the balance between state intervention and the responsibilities of private insurers.
Identical
Relating to the establishment, funding, and operation of the Texas natural disaster catastrophe fund and the disaster preparedness and mitigation grant council.
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 funding of excess losses and operating expenses of the Texas Windstorm Insurance Association; authorizing an assessment; authorizing a surcharge.
Relating to state and local government responses to a pandemic disaster, including the establishment of the Pandemic Disaster Legislative Oversight Committee.
Relating to the establishment of the Texas Energy Insurance Program and other funding mechanisms to support the construction and operation of electric generating facilities.
Relating to the establishment, funding, and operation of the Texas natural disaster catastrophe fund and the disaster preparedness and mitigation grant council.
To Require Fair And Transparent Reimbursement Rates; To Ensure Parity Of Healthcare Services; To Amend The Billing In The Best Interest Of Patients Act; And To Declare An Emergency.
Relating to the licensing and regulation of identity recovery service contract providers and the inclusion of identity recovery service agreements in certain service contracts, retail installment contracts, and vehicle protection products; providing penalties.