Relating to payment of excess losses and operating expenses incurred by the Texas Windstorm Insurance Association, including funding for certain catastrophic events through the issuance of public securities.
Impact
The new provisions outlined in HB3015 are expected to significantly enhance the resources available to TWIA, particularly in times of severe weather events that lead to extensive insured losses. By creating a structure for raising capital through public securities, the bill aims to ensure that Texas residents have the necessary insurance coverage against windstorm and hail damage. This can potentially stabilize the insurance market in vulnerable coastal regions of Texas, where such catastrophic events are more frequent. Moreover, this measure introduces a framework for financial planning and sustainability for the association.
Summary
House Bill 3015 focuses on addressing the financial challenges faced by the Texas Windstorm Insurance Association (TWIA) by establishing a system for issuing public securities to fund excess losses and operational expenses due to catastrophic events. The bill amends Section 2210.058 of the Insurance Code to allow for the issuance of pre-event and post-event public securities, thereby enabling TWIA to better manage its financial liabilities during times of severe natural disasters. It also stipulates that the revenue collected through premium surcharges can be utilized to cover public security obligations and related administrative costs.
Contention
Although HB3015 has been championed as a necessary step for strengthening disaster risk management, it has also sparked discussions about the implications for policyholders. Critics are concerned about the potential burden of premium surcharges on property owners, especially those in high-risk areas. The legislation allows for these surcharges to apply broadly across property and casualty policies, raising questions about the affordability of insurance in disaster-prone zones. Thus, while the bill aims to provide a safety net for Texan residents, there are valid concerns related to the economics of insurance coverage and the overall impact on vulnerable communities.
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 funding of excess losses and operating expenses of the Texas Windstorm Insurance Association; authorizing an assessment; authorizing a surcharge.
Relating to the operation of the Texas Windstorm Insurance Association and the renaming of the Texas Windstorm Insurance Association as the Texas Coastal Insurance Association.
Relating to funding of excess losses and operating expenses of the Texas Windstorm Insurance Association; authorizing an assessment; authorizing a surcharge.
Relating to the operation of the Texas Windstorm Insurance Association and the FAIR Plan Association and the renaming of the Texas Windstorm Insurance Association as the Texas Residual Insurance Plan.