Texas Senate Passes Windstorm Bill

The Texas Senate has passed a bill intended to improve the state’s coastal windstorm insurance agency, clarifying the claims process and increasing transparency at the agency.

The measure to reform the Texas Windstorm Insurance Association is nearly identical to the version approved by the Senate during the regular legislative session, according to information posted on the Senate Web site.

The previous bill failed to make it out of a House committee before the regular session adjourned in late May.

The only major change from the version passed during the regular session is the removal of a provision that would have assessed an 18 percent penalty against TWIA for delay in damage reimbursement.

As in the version passed in May, the bill would increase transparency, requiring the agency follow the Open Meetings Act. It creates a timeline for the claims process, giving policy holders a year to file a claim and permits claimants to sue for double damages under certain scenarios.

The bill also intends to fix solvency issues at the agency, authorizing TWIA to purchase pre-event bonds and requiring officials to submit a plan on how to pay for damage claims exceeding $2.5 billion if the agency does not purchase reinsurance.

Bill author Senator John Carona of Dallas pledged to protect the Senate version of the bill if it heads to a conference committee. Though the Senate passed its bill in the regular session unanimously, disagreements with the House led to the issue dying before the end of the session on May 30.

If a compromise bill doesn’t go to the Gov. Rick Perry’s desk before the first special session ends on June 28, Perry could call another one to deal with this issue before the hurricane season gets into full swing.

Source: Texas Senate

Topics Catastrophe Natural Disasters Texas Windstorm