Texas House Committee Hearing on Windstorm Insurance Legislation Set for Jan. 15

The insurance committee in the Texas House of Representatives will hold a hearing on Jan. 15 to consider the state of rulemaking and other governmental actions with regard to legislation passed in 2019 affecting Texas’ property insurer of last resort for wind and hail along the state’s coastline.

The committee, headed by State Rep. Eddie Lucio III, will hear invited and public testimony on topics associated with the Texas Windstorm Insurance Association.

According to information on the House of Representative’s website, the hearing’s purpose is to:

“Monitor the agencies and programs under the Committee’s jurisdiction and oversee the implementation of relevant legislation passed by the 86th Legislature. Conduct active oversight of all associated rulemaking and other governmental actions taken to ensure intended legislative outcome of all legislation, including the following:

“HB 1900, which amends the Texas Windstorm Insurance Association (TWIA) operations and funding practices. Review the rulemaking process by the Texas Department of Insurance (TDI) and the adoption of an updated plan of operation by TWIA. Monitor whether the purchase of reinsurance has increased or declined and determine whether this provision of the legislation has had any impact on premium rates. Monitor the appointment and work of the Legislative Funding and Funding Structure Oversight board.”

The hearing will take place at the Saltwater Pavilion located at 210 Seabreeze Dr. in Rockport, Texas.

TWIA’s board of directors on Dec. 10 voted to assess member insurance companies $90 million based on losses from Hurricane Harvey and voted to defer further consideration of action regarding TWIA insurance rates on residential and commercial policies until its next rate filing in August 2020.

TWIA is required annually to submit a rate filing in August to the Texas Department of Insurance. Its August 2019 filing proposed a 0% rate increase, but at its meeting in early August, TWIA’s board left open the possibility of a future rate increase and instructed the actuarial committee to come up with a rate recommen­dation.

Prior to the Dec. 10 board meeting, the organization’s actuarial and underwriting committee recommended a 5% rate increase.

Topics Catastrophe Natural Disasters Texas Legislation Windstorm