FOR IMMEDIATE RELEASE
May 29, 2015
(512) 463-0120 office
AUSTIN, TX — Yesterday, the Texas Legislature passed SB 900, authored by Senator Larry Taylor from Friendswood and co-authored by Senator Juan "Chuy" Hinojosa that relates to the operation of the Texas Windstorm Insurance Association (TWIA). The bill creates an increased level of transparency and accountability, greater representation within the organization, and a restructured funding mechanism.
Senator Hinojosa issued the following statement:
"I am pleased with the legislation that my Senate colleague, Senator Larry Taylor, and I worked on to ensure that our Coastal Bend communities have access to affordable and available windstorm insurance coverage. Our goal with this legislation is to create windstorm coverage at an accessible and affordable rate for our Texas families."
Other significant highlights include:
- Stabilizes TWIA's financial structure by meeting a 1 in 100 year Probable Maximum Loss, which is the industry standard in the voluntarymarket.
- Restructures TWIA's board of directors to ensure equal representation
- Authorizes the Insurance Commissioner to contract with a licensed TPA or MGA and adopt rules to administer and manage the Association, if necessary
- Requires TWIA to study private market incentives to provide wind and hail coverage along the coast
SB 900 will now be sent to the Governor's desk for his signature.