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TWIA
The Texas Windstorm Insurance Association shared information and statements about the Texas legislature’s passage of two bills with impacts to consumers of the windstorm coverage.
The Texas Senate passed House Bill (HB) 2920 the week of May 2o, which will authorize TWIA to provide a grace period for policyholders to make premium payments. The bill was authored by Rep. JM Lozano of San Patricio County and sponsored in the Senate by Sen. Kelly Hancock of Tarrant County and was recommended by the TWIA Board of Directors in its 2020 Biennial Report to the Legislature.
The bill addresses a potential concern arising from TWIA’s implementation of a new automatic renewal process because of legislation enacted in 2019. As renewal offers are now mailed directly to policyholders and mortgagees for the first time, policyholders’ lack of familiarity with the new processes and unforeseen and unavoidable mail delivery delays (such as those seen during the pandemic) may result in lapses in coverage. HB 2920 requires the Insurance Commissioner, in consultation with TWIA, to establish a grace period of not more than 10 days for the payment of premiums for policy renewals – a measure which should help to mitigate coverage lapses. The bill now goes to Governor Greg Abbott.
Also, the week prior, the Legislature passed Senate Bill 1448, sending it to Governor Abbott. The bill consolidates under one legislative oversight board and extends the deadline to complete legislative studies of the TWIA funding and structure. These studies were intended to be conducted last year but were delayed due to the coronavirus pandemic. The bill also provides for a 2/3 vote of the TWIA Board of Directors for an increase in rates.
TWIA thanks the Senate and House sponsors who carried the legislation, Sen. Larry Taylor and Rep. Greg Bonnen, both of Galveston County.
“We agree with Representative Bonnen and Senator Taylor that TWIA’s current funding structure needs thorough legislative review. TWIA coverage is a lifeline for the economy of the Texas coast, and that has ripple effects throughout the state. While there is some consensus on the challenges we face, there are many different and conflicting opinions on solutions,” Jennifer Armstrong, TWIA Vice President of Communications & Legislative affairs, said. “TWIA is ready to work with Legislative Oversight Board members as soon as they are able to begin their deliberations. We thank Sen. Taylor and Rep. Bonnen for demonstrating the leadership that will be required to tackle these complex issues.”