The Texas Windstorm Insurance Association said it has initiated its catastrophe plan and that it is ready for Tropical Storm Harvey.
Tropical Storm Harvey has crossed the boundaries of 80 degrees west longitude and 20 degrees north latitude, but as of 10 am CDT it had not yet been declared a hurricane by the United States Weather Bureau.
Should that happen, TWIA will place a moratorium on accepting applications for new and increased coverage and notify agents immediately. Up until that time any policy that has been properly submitted to TWIA with payment will be eligible for coverage based on all underwriting guidelines.
This moratorium would remain in effect until the TWIA general manager determines that the storm no longer threatens property within the designated catastrophe area of the Texas Windstorm Insurance Association.
TWIA’s CAT plan includes:
- Continuously reviewing new information as it becomes available from the National Weather Service (NWS) and other public and private weather tracking entities
- Reviewing plans to ensure necessary actions are taken prior to landfall
- Communicating with vendors to ensure resources are in place, should they be required
- Coordinating with coastal Offices of Emergency Management (OEMs)
At the beginning of the 2017 hurricane season, TWIA reported that it is financially sound and ready for the 2017 hurricane season, and that it has secured $4.9 billion in total funding. TWIA’s 2017 season funding includes a contribution of $147 million to the Catastrophe Reserve Trust Fund (CRTF) as a result of 2016 operations, bringing the CRTF balance to almost $740 million — the highest in the Association’s history.
TWIA’s 2017 reinsurance program, effective June 1, 2017 to May 31, 2018, provides $4.9 billion in total aggregate funding, sufficient to cover a 125-year storm season, or more than 99 percent of all possible storm seasons and in excess of the statutory minimum funding to a 100-year storm.
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