Texas House Bill HB3640

Texas 2009 - 81st Regular

Caption

Relating to the operation and alternative funding sources for the Texas Windstorm Insurance Association.

Impact

If enacted, HB3640 could have significant implications for how the Texas Windstorm Insurance Association operates, particularly during disaster relief efforts. By diversifying its funding sources, TWIA might reduce its reliance on premium income and improve its capacity to respond to insurance claims resulting from catastrophic weather events. This bill could thus lead to a more stable financial footing for TWIA, allowing it to effectively fulfill its role in offering windstorm insurance coverage to residents in coastal areas of Texas.

Summary

House Bill 3640 seeks to amend the Texas Insurance Code notably by adding provisions regarding the operation and alternative funding sources for the Texas Windstorm Insurance Association (TWIA). The bill allows TWIA to accept funds from a variety of alternative sources to bolster its trust fund. These funding sources include federal disaster recovery funds, state economic stabilization funds, public securities issuance, and legislative appropriations. It is designed to enhance the financial resilience of TWIA, which is critical in the context of natural disasters common in the state of Texas.

Contention

Discussion surrounding HB3640 may evoke debates around the accountability and regulatory oversight of the alternative funding sources utilized by TWIA. Critics might raise concerns regarding transparency, particularly regarding how funds from various sources are managed and disbursed. Furthermore, there could be apprehensions about how the changes might affect insurance premiums for consumers, as greater access to funds could influence the overall pricing structure of windstorm insurance in Texas. Stakeholders will likely emphasize the balance between ensuring sufficient funding for insurance claims while maintaining fair and affordable premiums for policyholders.