Texas Windstorm Insurance Association Proposes New Rules
[font color=green]The following are excerpts (with minor editing) from an article in the Brownsville Herald.[/font]
Proposed new rules for the Texas Windstorm Insurance Association could impose surcharges on automobile and property insurance policies in coastal counties in the event of catastrophic storms.
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The surcharges would be placed on policies of coastal residents only as opposed to spreading the cost around the state to all residents.
According to DOI spokesman Jerry Hagins, the surcharge provision — created by House Bill 4409 in 2009 and amended in 2011 by House Bill 3 — would kick in only if claims from a catastrophic storm-damage exhausted TWIA’s available funds, including the first level of “post-event” bonds: public securities issued to cover excess claims.
Money from the surcharges would be used only to repay the second level of post-event bonds, he said. In some cases, policy holders could be reimbursed for a portion of the surcharge, according to the Department of Insurance.
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Elected officials from the coast argue that the burden of covering hurricane damage claims shouldn’t be borne by coastal residents alone, since economic development generated by the coast benefits the state as a whole and not just the coast.
The complete article is at http://www.brownsvilleherald.com/news/local/article_45b882b4-c449-11e3-9105-001a4bcf6878.html .
Affected areas:
Aransas County
Brazoria County
Calhoun County
Cameron County
Chambers County
Galveston County
Harris* (partial)
Jefferson County
Kenedy County
Kleberg County
Matagorda County
Nueces County
Refugio County
San Patricio County
Willacy County
*When located inside city limits and east of Highway 146, the following portions of Harris County are also included:
LaPorte
Morgan's Point
Pasadena
Seabrook
Shore Acres
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