Agent Standards Among Texas Windstorm Insurer’s Legislative Proposals

In its recently published report to the legislature, the windstorm insurer of last resort for properties along the Texas coast has proposed several operational changes, including one that would allow it to develop requirements and standards for agents.

The Texas Windstorm Insurance Association’s Biennial Report to the 87^th Legislature lays out information regarding the operations of the association and recommendations of the TWIA board of directors for legislative consideration during the session that begins today.

The report includes analysis of several issues related to TWIA ratemaking and funding for consideration by lawmakers.

It also conveys the following specific proposals from the board regarding TWIA operations:

• Authorize Agent Requirements & Performance Standards: Revise TWIA’s statute to authorize TWIA to develop agent requirements and performance standards similar to the authority granted to the Texas FAIR Plan Association.
• Authorize Premium Payment Grace Period: Revise TWIA’s statute to authorize TWIA to have a grace period to accept premium payments rather than requiring full or partial payment before the effective date.
• Eliminate Expert Panel: Modify statute and regulations to eliminate TIC Section 2210.578 and associated rules requiring the use of claim settlement guidelines developed by an Expert Panel after the Association’s contract to implement the guidelines ends in April 2022.
• Exclude Commercial Risks from Automatic Renewal Process: Revise TWIA’s statute to exclude commercial risks from the automatic renewal process.
• Consider FORTIFIED Home Construction: The TWIA Board recommends that the Legislature consider FORTIFIED home construction effectiveness in other states, whether TWIA should pursue such a program, and whether the state could provide funding support.

Source: TWIA

Topics Catastrophe Carriers Natural Disasters Texas Agencies Windstorm