AUSTIN, Texas — The Texas Department of Insurance has proposed rules to implement provisions of House Bill 3 (82nd Texas Legislature, 1st Called Session) related to loss funding and premium surcharges for the Texas Windstorm Insurance Association.
TDI will hold three public hearings to allow for comment on the proposed rules. The hearings begin at 9 a.m. and are as follows:
1. February 26, 2014: Beaumont Civic Center - 701 Main Street, Beaumont, TX 77701
2. March 3, 2014: Hobby Building, Room 100 - 333 Guadalupe Street, Austin, TX 78701
3. March 5, 2014: Texas A&M-Corpus Christi, Ballrooms B&C - 6300 Ocean Drive, Corpus Christi, TX 78412
The proposed rules were published in the Texas Register on February 14, 2014, and are posted on the agency website at: http://www.tdi.texas.gov/rules/2014/parules.html.
TDI welcomes public comments. Individuals wishing to comment may provide oral testimony at the public hearings or written comments. Comments may be emailed to TDI’s Chief Clerk at email@example.com and Brian Ryder at firstname.lastname@example.org . Comments may also be mailed to: Texas Department of Insurance, P.O. Box 149104, Austin, TX 78714. All comments must be received by 5 p.m. CST on March 10, 2014.
HB 4409, which was passed in 2009, created the funding structure under which TWIA operates today. This funding structure, set forth in law, mandates who is responsible for paying the Class 1, 2, and 3 public securities that are used to pay TWIA policyholders’ claims in the event of a storm. HB 4409 required coastal residents’ policies to be surcharged in order to pay back a portion of the Class 2 public securities, which will be issued after an event and used to pay TWIA policyholders’ claims. HB 3, which was passed in 2011, removed some of the surcharges required under HB 4409. Accordingly, TDI must repeal the now-outdated rules implemented after 2009 to make way for the new ones required by legislation passed in 2011.