The Texas Department of Insurance reported recently that it received numerous inquiries and complaints after Hurricane Ike relating to the failure of agents to forward applications and premium to the Texas Windstorm Insurance Association (TWIA) in a timely manner.
As such, the department reminds agents that it is their duty and responsibility to promptly, timely and properly submit a new or renewal application, including premium, to TWIA.
The process for submitting insurance applications and renewals is governed by Chapter 2210 of the Texas Insurance Code and the TWIA Plan of Operation, Title 28, Texas Administrative Code (TAC) §5.4001.
Understanding the difference in procedures for effecting coverage through TWIA and voluntary market insurers is essential for an agent to ensure that applicants have proper coverage in place. The application submission process can be especially critical during hurricane season, the department said.
TWIA will provide coverage only after the application, all required documentation, and the full premium is received by TWIA or forwarded to TWIA in accordance with the procedures as outlined in its Plan of Operation.
Information will be provided in the near future concerning additional required documentation under House Bill 4409 recently enacted by the 81st Texas Legislature.
It is the duty and responsibility of each agent to understand and follow the TWIA application process set forth in Title 28, TAC §5.4001 in order for the desired coverage to be effective. Subsection 5.4001 (d)(E)(ii) provides specific criteria and methods for mailing applications to TWIA prior to a hurricane forming in or entering the Gulf of Mexico.
More information is available from TWIA at 512-899-4900 or via the TWIA Web site at www.twia.org/.
Agents who do not promptly and properly submit TWIA applications and premiums received may be subject to a civil lawsuit for damages by aggrieved parties or to disciplinary action by the department.
Source: Texas Department of Insurance, www.tdi.state.tx.us
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