FOR IMMEDIATE RELEASE
January 14, 2015
(512) 463-0120 office
AUSTIN, TX — This morning, Senator Juan "Chuy" Hinojosa filed SB 302 -- windstorm insurance reform legislation. Senator Hinojosa has been working many months with community and business leaders from the 14 coastal counties, as well as with his legislative colleagues to develop the framework for this legislation.
Senator Hinojosa issued the following statement:
"Windstorm insurance reform is a statewide issue. This legislation is crucial for our coastal communities and the State of Texas. It creates an increased level of transparency and accountability, greater representation within the organization, as well as a restructured funding mechanism.
SB 302 would require the Texas Department of Insurance to conduct a study of incentives to promote participation in the voluntary market and report the result to the legislature. It utilizes a single adjuster program to allow professional insurance companies that write the underlying coverage for property and fire coverage to adjust claims on behalf of Texas Windstorm Insurance Association (TWIA). Our goal with SB 302 is to create windstorm coverage at an accessible and affordable rate for our Texas families."
For over thirty years, the 14 Texas counties that are on the Gulf of Mexico have had to rely on TWIA for insurance protection against hurricane and wind damage. Because the shared risk and shared premium is only in the 14 counties, TWIA has had a serious financial struggle particularly after losses incurred from Hurricane Ike. As a result, TWIA is continually considering large rate increases to coastal residents.