New laws. Better service

Changes to How TWIA Provides Insurance

TWIA is governed by laws passed by the Texas Legislature. During the 2019 legislative session, several new laws passed which change how TWIA provides wind and hail insurance on the Texas coast. These changes enable TWIA to better serve policyholders by:

  • Accepting premium payments in more than one installment;
  • Accepting credit cards for premium payments; and
  • Reducing policy renewal requirements for a quicker, easier renewal.

These and other changes will go into effect by early 2021. Below are details about the changes and how they may affect you.

 

Timeline of legislative changes

Click on timeline to view larger image

 

Upcoming changes

Change Due DateChange SummaryChange TypeLink to Details
January 1, 2020
Replacement cost estimation. Requires TWIA to determine residential replacement cost value at time of policy issuance rather than time of loss.
Claims
Learn More
January 1, 2020
Automatic renewals process. Requires TWIA to establish an automatic renewals process.
Policy Renewals
Learn More
January 1, 2020
Board of Directors training. Outlines new training requirements for members of the TWIA Board of Directors.
Board of Directors
Learn More
March 31, 2020
Depopulation Eliminates any requirement for depopulation decisions to be made during hurricane season and reduces the policyholder opt out period.
Depopulation
Learn More
June 1, 2020
Windstorm certifications for completed improvements. Moves the responsibility of issuing Certificates of Compliance for completed improvements to the Texas Department of Insurance.
Windstorm Certifications
Learn More
July 1, 2020
Supplemental payment information in policy packets. Information about the supplemental payment process must be included in TWIA’s policy packets.
Claims
Learn More
November 15, 2020
Funding study. Requires a Legislative Oversight Board (the Legislative Funding and Funding Structure Oversight Board) to complete a report on findings regarding TWIA’s funding structure and ways to resolve issues with it and make it more sustainable.
Studies and Reports
Learn More
January 1, 2021
New premium payment options. This new law allows new payment options for our policyholders via credit card and installment payments.
Premium Payments
Learn More
January 1, 2021
TWIA and TFPA merger study. Requires the Legislative Oversight Board (created by House Bill 4409 in 2009) to evaluate a possible merger between Texas Windstorm Insurance Association and Texas FAIR Plan Association.
Studies and Reports
Learn More
2031
Sunset review. TWIA will be subject to review by the Texas Sunset Advisory Commission in 2031.
Studies and Reports
Learn More

Changes already in effect

Change Due DateChange SummaryChange TypeLink to Details
June 10, 2019
Public availability of rate adequacy analysis. Requires TWIA to make a rate adequacy analysis publicly available on www.twia.org 14 days before its Board of Directors votes on the submission of a rate filing to the Texas Department of Insurance and to accept public comment at a Board meeting prior to the Board's vote.
Rates
Learn More
June 10, 2019
Emergency meetings for member assessments. The TWIA Board of Directors must call an emergency meeting if it predicts an assessment on member insurers will be necessary.
Funding
Learn More
June 10, 2019
Member company purchase of reinsurance. Member insurers must pay for the cost of reinsurance exceeding TWIA’s minimum required funding level.
Funding
Learn More
June 10, 2019
Claims deadline extensions. Allows the Commissioner of Insurance to extend claim deadlines for TWIA policyholders at his discretion.
Claims
Learn More
June 10, 2019
Replacement cost coverage claims. Formalizes the handling of replacement cost coverage claims, allowing 545 days for a policyholder to provide proof of repairs and preserving the policyholder’s ability to request appraisal on the claim.
Claims
Learn More
June 10, 2019
When funding sources can be used to pay claims. Stipulates the ways in which TWIA’s premiums and other funding sources can be used to pay for excess losses.
Use of Premiums
Learn More
June 14, 2019
Surplus lines. Eligible surplus lines insurers may provide windstorm and hail insurance in TWIA's coverage area.
N/A
Learn More
September 1, 2019
Rules proposed to TDI. Authorizes TWIA to propose to the Texas Department of Insurance rules that govern TWIA’s core operations and requires for TDI to begin its review process within 30 days.
Rulemaking
Learn More
September 1, 2019
Maximum liability limits. A TWIA filing to change its maximum liability limits is considered approved unless expressly disapproved or modified by the Commissioner of Insurance within 30 days.
TDI Filings
Learn More
September 1, 2019
Board of Directors eligibility requirements. Creates new requirements for an individual to be considered eligible to be appointed to the TWIA Board of Directors.
Board of Directors
Learn More
September 1, 2019
Disclosures by the Board of Directors. TWIA Board and Actuarial & Underwriting Committee members must disclose possible conflicts of interest on an issue before a discussion or vote on the issue to be discussed at a meeting.
Board of Directors
Learn More
September 1, 2019
Declinations for policy renewals. Declinations will only be required every three years (instead of every year) as a part of the policy renewal process.
Policy Renewals
Learn More
September 1, 2019
Supplemental payment information in claims letters. Authorizes TWIA’s supplemental payment process and requires information about the supplemental payment process be included in TWIA’s Notice of Claim Acceptance and/or Denial letter.
Claims
Learn More
September 1, 2019
Contractors acting as public adjusters; public adjuster names. A contractor may not act as a public adjuster or advertise to act as a public adjuster for any claim for which the contractor is or may provide contracting services; additionally, public adjusters must not use a different name than the one on their adjuster license unless they have a valid assumed name certificate.
Claims
Learn More

 

Additional information about each change

In order of change due date

 

Public availability of rate adequacy analysis

Change due date: June 10, 2019
TWIA must make a rate adequacy analysis publicly available on www.twia.org 14 days before its Board of Directors votes on the submission of a proposed rate filing to the Texas Department of Insurance. TWIA also must accept public comment on the rate adequacy analysis at a public meeting of the TWIA Board of Directors prior to their vote on a proposed rate filing.

 
How will this affect policyholders?
This law ensures greater transparency over the TWIA rate-making process. It also makes it easier for the public to provide feedback on a proposed rate filing.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615 and House Bill 1900
August 5, 2019 Agent Bulletin: Q&A: Upcoming Legislative Changes & TWIA Board Meeting
September 17, 2019 Agent Bulletin: Latest Laws That Change TWIA
TWIA Rates

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Emergency meetings for member assessments

Change due date: June 10, 2019
If TWIA estimates its ultimate financial losses arising from a storm may require an assessment on its member insurers, the TWIA Board of Directors is required to call an emergency meeting for the purpose of notifying member insurers of the need for an assessment.

What is a member insurer? A member insurer is any company licensed to write property insurance in Texas. They are required by law to be a member of Texas Windstorm Insurance Association and share in TWIA’s financial losses; their percentage of participation is based on the company's statewide policy/participation and policy/participation within TWIA's coverage area.

 
How will this affect policyholders?
No impact to policyholders is expected.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
House Bill 1900
None
TWIA Member Insurers
TWIA Funding

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Member company purchase of reinsurance

Change due date: June 10, 2019
TWIA’s purchase of reinsurance above its minimum required funding level (1 in 100 probable maximum loss) must be paid for by an assessment on member insurers of the Association. Reinsurance is the last level of funding TWIA may access in the event of a catastrophic storm. Learn more about TWIA’s funding structure. The amount of a member insurer’s assessment is based on the company's statewide policy/participation and policy/participation within TWIA's coverage area.

TWIA must notify each member insurer of the amount of their assessment. A member may not recoup their assessment cost through premium surcharge or a tax credit.

What is a member insurer? A member insurer is any company licensed to write property insurance in Texas. They are required by law to be a member of Texas Windstorm Insurance Association and share in TWIA’s financial losses; their percentage of participation is based on the company's statewide policy/participation and policy/participation within TWIA's coverage area.

 
How will this affect policyholders?
No impact to policyholders is expected.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
House Bill 1900
None
TWIA Member Insurers
TWIA Funding

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Claims deadline extensions

Change due date: June 10, 2019
Provides the Commissioner of Insurance the authority to extend policyholder claim deadlines at his discretion and extend claim deadlines applicable to TWIA arising from a particular storm up to 120 days.

 
How will this affect policyholders?
In the event of a storm, policyholders may be provided additional time to meet the claim deadlines in place to request additional payment, dispute their claim, and complete repairs.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
House Bill 1900 and House Bill 1944
August 5, 2019 Agent Bulletin: Q&A: Upcoming Legislative Changes & TWIA Board Meeting
September 17, 2019 Agent Bulletin: Latest Laws That Change TWIA
TWIA Claims Center

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Replacement cost coverage claims

Change due date: June 10, 2019
Formalizes the handling of replacement cost coverage claims, allowing 545 days for a policyholder to provide proof of repairs and preserving the policyholder’s ability to request appraisal on the claim. Appraisal is the formal process for disputing the amount that TWIA paid on the accepted part of a claim.

If the policy provides replacement cost coverage, TWIA's notice of claim acceptance must notify the claimant of the deadline for completing repairs and submitting documentation and the deadline for demanding appraisal.

This law applies to policies issued or renewed on or after January 1, 2020.

 
How will this affect policyholders?
Policyholders with replacement cost coverage will have more time to complete their repairs and still be able to preserve their right to request appraisal on the claim.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
House Bill 1900
August 5, 2019 Agent Bulletin: Q&A: Upcoming Legislative Changes & TWIA Board Meeting
TWIA Claims Center
About the Appraisal Process

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When funding sources can be used to pay claims

Change due date: June 10, 2019
Policyholder premiums earned in subsequent years cannot be used to pay for excess losses and operating costs that occurred during a past storm season. Requires TWIA pay for excess losses from funding sources, including the Catastrophe Reserve Trust Fund (CRTF), available before or accrued during the catastrophe year in which the losses occurred.

TWIA cannot use the proceeds from public securities or member insurer assessments made in the past to pay for excess losses that occur in subsequent years.

 
How will this affect policyholders?
This does not affect policyholders’ experience with TWIA, but it does affect how their premium payments are used to pay for TWIA claims and operating costs.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
House Bill 1900
None
TWIA Funding

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Surplus lines

Change due date: June 14, 2019
As of June 14, 2019, eligible surplus lines insurers may provide windstorm and hail insurance in TWIA’s coverage areas. However, a policy declination from a surplus lines writer does not count toward TWIA’s declination requirement for coverage eligibility.

 
How will this affect policyholders?
This law authorizes additional insurers to provide windstorm and hail insurance in TWIA’s coverage area, providing property owners with more options to insure homes and businesses.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
House Bill 1940
September 17, 2019 Agent Bulletin: Latest Laws That Change TWIA
No TWIA operations are affected

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Rules proposed to TDI

Change due date: September 1, 2019
Any changes to the rules governing TWIA’s policies, claims procedures, or core operational structures must be approved by the Texas Department of Insurance before they can be adopted. While TWIA has proposed new rules to TDI in the past, they did not provide for any timeframe in which TDI would consider or take actions on them. This law formally authorizes TWIA to propose rules for adoption by TDI and requires TDI to begin its review process within 30 days of submission.

This law also enables TWIA to request for TDI to host public hearings on proposed rule changes to gather feedback from stakeholders.

 
How will this affect policyholders?
This law allows TWIA to propose and more quickly receive feedback on new rules for adoption by TDI that may increase TWIA efficiency and generally benefit its policyholders and other stakeholders.

It also allows TWIA to request for TDI to hold a public hearing on the proposed rules to gather feedback. Such hearings will provide stakeholders an opportunity to comment on how the proposed changes would affect them.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615
None
N/A

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Maximum liability limits

Change due date: September 1, 2019
A filing by the TWIA Board of Directors to change the maximum liability limit is considered approved unless the Commissioner of Insurance issues an order disapproving or modifying the liability limits. The Commissioner's decision must be issued within 30 days of when TWIA files its proposal.

If the Commissioner disapproves or modifies the filing, this triggers a notice and hearing on the decision. Within 30 days of the Commissioner’s disapproval/modification, and with any new insight from the notice and hearing, the Commissioner will approve, disapprove, or modify the proposed adjustment.

What is a maximum liability limit? A policy’s maximum liability limit refers to the maximum amount of coverage a TWIA policyholder can purchase on their property.

 
How will this affect policyholders?
No impact to policyholders is expected.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
House Bill 1902
None
N/A

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Board of Directors eligibility requirements

Change due date: September 1, 2019
The TWIA Board of Directors is appointed by the Texas Commissioner of Insurance and includes three members residing in the first tier coastal counties (TWIA coverage area), three residing more than 100 miles inland, and three insurance industry representatives.

This law creates new eligibility requirements for someone to be appointed as a public member of the TWIA Board of Directors, meaning they will be considered ineligible to represent coastal or inland communities if they or their spouse manages, is employed by, or owns more than 10% interest in a company that:

  • Operates in the property and casualty insurance industry in Texas;
  • Receives money from the Association other than claim payments; or
  • Receives money from Association policyholders with respect to the policyholders’ claims.

Furthermore, they may not be appointed to the TWIA Board of Directors if they or their spouse receives a substantial amount of tangible goods, services, or money from the Association (excluding claim payments or authorized Board compensation for travel).

 
How will this affect policyholders?
This law strengthens the ethical considerations with respect to the TWIA Board of Directors, which votes on topics that impact TWIA policyholders.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615
September 17, 2019 Agent Bulletin: Latest Laws That Change TWIA
TWIA Board of Directors

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Disclosures by the Board of Directors

Change due date: September 1, 2019
This law requires Board members and Actuarial and Underwriting Committee members to disclose potential conflicts of interest related to a vote or discussion prior to a vote. Potential conflicts that require public disclosure include:

  • Financial or personal interest in an entity that could financially benefit from the outcome of the discussion or vote; and
  • Holding a TWIA insurance policy that may be affected by the discussion or vote.

During open meetings, Board and Committee members must disclose any conflicts prior to a discussion or vote. For meetings that are not broadcast, a publicly available agenda must disclose any conflicts for the Board or Committee members.

 
How will this affect policyholders?
This new law increases transparency about the affiliations of the Board of Directors and Committee members.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615
September 17, 2019 Agent Bulletin: Latest Laws That Change TWIA
TWIA Board of Directors

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Declinations for policy renewals

Change due date: September 1, 2019
This law streamlines the policy renewal process, allowing for automatic renewals as long as the property remains in an insurable condition.

Effective September 1, 2019, TWIA will only require policyholders to submit paperwork showing that they were declined wind and hail coverage from a qualified private insurance company (i.e. a declination) once every three years. Previously, TWIA required a declination every year as part of the renewal process.

This law also allows TWIA to automatically renew a policy as long as the property remain in an insurable condition. Per other requirements in this law, automatic renewals will go into effect on January 1, 2020.

 
How will this affect policyholders?
Reduced requirements will simplify the policy renewal process for policyholders and their agents.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615
None
TWIA Eligibility

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Supplemental payment information in claims letters

Change due date: September 1, 2019
This law formally authorizes TWIA’s supplemental payment process. Supplemental payments are additional claim payments made to the policyholder when the initial claim payment isn’t enough to pay for covered repairs.

It also requires TWIA to include information about supplemental payments in the Notice of Claim Acceptance and/or Denial letter, starting on July 1, 2020. This is the letter outlining TWIA’s claim decision after a policyholder reports damage on their property.

 
How will this affect policyholders?
Policyholders will have more information about how they can request additional money they may be owed for repairs during the claim process as well as the deadlines to request it.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615
None
TWIA Claims Center
Supplemental Payments

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Contractors acting as public adjusters; public adjuster names

Change due date: September 1, 2019
A contractor may not act as a public adjuster or advertise to act as a public adjuster for any claim for which the contractor is or may provide contracting services (HB 2103); additionally, public adjusters must not use a different name than the one on their adjuster license unless they have a valid assumed name certificate (HB 2659).

 
How will this affect policyholders?
This law is intended to reduce any conflicts of interest for contractors acting as public adjusters on a claim, mitigating opportunities for insurance fraud.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
House Bill 2103 and House Bill 2659
September 17, 2019 Agent Bulletin: Latest Laws That Change TWIA
October 21, 2019 Agent Bulletin: Changes to Insurance Code
TWIA Claims Center

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Replacement cost estimation

Change due date: January 1, 2020
Current law says the type of loss settlement—replacement cost value (RCV) vs. actual cash value (ACV)—is determined at the time a claim is made. This new law says the type of loss settlement, RCV or ACV, is determined at the time a policy is issued. This will apply to all new and renewal policies issued on or after January 1, 2020.

Replacement cost value is the amount of money needed to replace the structure or damaged personal property with a similar new product (i.e. depreciation is not deducted). Actual cash value is the amount of money needed to replace the structure or damaged personal property at its current market value (i.e. depreciation is deducted).

The current and new laws both require TWIA policies to be insured at 80% or more of the replacement cost value of the property to qualify for replacement cost coverage. Thankfully, most policyholders already meet this threshold. However, sometimes a policy is insured right at the 80% threshold when it is first issued, and over time, dips below for a variety of reasons. Unfortunately, in the past this meant after a claim, the loss was settled for the actual cash value which was a significantly lower claim payment than the replacement cost. The new law prevents this scenario from happening.

 
How will this affect policyholders?
This new law is great news for policyholders. It will help them know if their property is adequately insured. There can be a big difference between the replacement cost and the actual cash value of a property. Determining if insurance to value requirements are met at the time of policy issuance ensures that going into a claim, all parties are aware of whether or not their claim will be settled at replacement cost.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615 and House Bill 1900
August 5, 2019 Agent Bulletin: Q&A: Upcoming Legislative Changes & TWIA Board Meeting
September 24, 2019 Agent Bulletin: Policy Conditions - Loss Settlement Changes Are Coming!
Insurance to Value

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Automatic renewals process

Change due date: January 1, 2020
This law streamlines the policy renewal process, allowing for automatic renewals as long as the property remains in an insurable condition.

The new process must provide policyholders with an opportunity to cancel their TWIA policy before it automatically renews.

 
How will this affect policyholders?
Establishing an automatic renewal process will reduce the work policyholders and their agents must undertake to maintain continuous coverage, and we anticipate this will significantly improve their experience with TWIA.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615
August 5, 2019 Agent Bulletin: Q&A: Upcoming Legislative Changes & TWIA Board Meeting
N/A

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Board of Directors training

Change due date: January 1, 2020
All members of the TWIA Board of Directors must complete training on Texas governmental and Association ethics and administrative policies and procedures, including:

  • Enabling statute;
  • Association programs, functions, rules, and budget;
  • Rule-making authority;
  • Most recent audit results;
  • Open meetings and open records;
  • Administrative procedure;
  • Conflict of interest disclosure;
  • Other laws applicable to the Board members in performing their duties;
  • Applicable ethics policies adopted by the Association or the Texas Ethics Commission.

To facilitate this training, TWIA must create a training manual for Board members to review and acknowledge each year. Effective January 1, 2020, Board members cannot vote, deliberate, or be counted as a member in attendance at meetings until they have completed their annual required training.

This new law does not affect the privileges of Board members serving before the effective date of the act or their ability to serve on the Board through to the end of their term. Board members serve three-year staggered terms.

 
How will this affect policyholders?
Members of the Board of Directors vote on topics which impact TWIA policyholders; additional training ensures the Board of Directors make decisions in the best interest of policyholders and the Association.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615
None
TWIA Board of Directors

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Depopulation

Change due date: March 31, 2020
Requires the Texas Department of Insurance to change depopulation rules to eliminate any requirement for agents or policyholders to make depopulation decisions during hurricane season (June 1 to November 30). Reduces the policyholder opt out period to no more than 60 days.

TDI has until March 31, 2020 to adopt the rules to implement this change; it is expected to apply to the fifth round of TWIA’s Assumption Reinsurance Depopulation Program starting in January 2021.

 
How will this affect policyholders?
Streamlines the depopulation process for policyholders and their agents.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615
August 5, 2019 Agent Bulletin: Q&A: Upcoming Legislative Changes & TWIA Board Meeting
TWIA Assumption Reinsurance Depopulation Program

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Windstorm certifications for completed improvements

Change due date: June 1, 2020
Effective June 1, 2020, the Texas Department of Insurance will begin issuing Certificates of Compliance for completed improvements in addition to the Certificates of Compliance it already issues for ongoing improvements. The last day TWIA will accept applications for Certificates of Compliance for completed improvements is May 31, 2020.

TDI will have additional oversight of the certification process for completed improvements such as engineers being required to affirm that a completed improvement is constructed in accordance with its design (i.e. the construction will be evaluated, not just its design). TDI will also be allowed to:

  • Deny an application if an engineer's evaluation is not fully documented; and
  • File complaints to the Texas Board of Professional Engineers and Land Surveyors related to the engineering work of a professional engineer.

Certificates of Compliance issued by TWIA will remain valid. Property owners will not have to re-certify their structures in order to remain eligible for TWIA insurance.

TWIA’s process of issuing Certificates of Compliance will remain unchanged for the lifespan of the program.

 
How will this affect policyholders?
This law consolidates the windstorm certification processes under the Texas Department of Insurance. TDI will issue all Certificates of Compliance regardless of the construction status of the improvement/structure to be certified.

This law also adds additional oversight authority to TDI with respect to the certification process for completed improvements, helping ensure property owners’ homes and businesses are in compliance with local windstorm building codes.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615 and House Bill 1900
August 5, 2019 Agent Bulletin: Q&A: Upcoming Legislative Changes & TWIA Board Meeting
TWIA Windstorm Certification Program
TDI Windstorm Inspection Program

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Supplemental payment information in policy packets

Change due date: July 1, 2020
This law requires TWIA policy packets for policies issued or renewed on or after July 1, 2020 to prominently feature information about the availability of supplemental payments, the supplemental payment process, and associated deadlines.

 
How will this affect policyholders?
Policyholders will have more information about how they can request additional money they may be owed for repairs during the claim process as well as the deadlines to request it.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615
August 5, 2019 Agent Bulletin: Q&A: Upcoming Legislative Changes & TWIA Board Meeting
TWIA Claims Center
Supplemental Payments

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Funding study

Change due date: November 15, 2020
Creates the Legislative Funding and Funding Structure Oversight Board, composed of members of the Texas House and Senate, providing Board members with a mission to study TWIA’s funding structure and recommend legislative changes to resolve issues with it and to make it more sustainable. This report must be delivered to the Governor, Lt. Governor, and Speaker no later than November 15, 2020.

 
How will this affect policyholders?
The Legislative Oversight Board’s recommendations may be turned into legislation that has the potential to make TWIA’s funding structure more efficient and sustainable, so the Association can fulfill its duty to be there when our policyholders need us most.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
House Bill 1900
None
TWIA Funding

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New premium payment options

Change due date: January 1, 2021
Starting on January 1, 2021, TWIA will be allowed to accept payment for annual premiums by credit card as well as in more than one installment.

Currently, TWIA is only legally allowed to accept payment from a policyholder’s agent by check or a premium financing service and the entire annual premium must be paid at the time the policy is issued.

 
How will this affect policyholders?
Not only will policyholders be able to make a payment to TWIA directly, but they will have additional options both in their method (credit card) and frequency (more than once a year) of payment. TWIA looks forward to offering this service; paying the annual policy premium all at one time has been a complaint of policyholders.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615
None
N/A

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TWIA and TFPA merger study

Change due date: January 1, 2021
Requires the Windstorm Insurance Legislative Oversight Board (created by House Bill 4409 in 2009) to evaluate a merger between Texas Windstorm Insurance Association and Texas FAIR Plan Association. The evaluation must consider:

  • The affordability and availability of windstorm and hail insurance and residential property insurance throughout Texas;
  • The advisability of merging the two Associations;
  • Any efficiencies or inefficiencies from a merger;
  • The funding necessary to ensure windstorm and hail insurance and residential property insurance are available after the merger; and
  • Other items determined relevant by the Oversight Board.

The Legislative Oversight Board will submit a report to the Governor, Lt. Governor, Speaker, and the Texas Department of Insurance by January 1, 2021.

 
How will this affect policyholders?
No impact to policyholders is expected.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
House Bill 1900
None
About Texas FAIR Plan Association

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Sunset review

Change due date: 2031
With the passage of this law, TWIA will be subject to another review by the Texas Sunset Advisory Commission in the year 2031.

Although TWIA is not a state agency, it was made subject to Sunset review through legislation passed in 2011; however, it is not subject to abolishment through the Sunset process. In advance of the 86th Legislative Session in 2019, TWIA was reviewed by the Sunset Advisory Commission; the resulting Sunset report recommended legislative action on six issues, many of which were included in Senate Bill 615 (TWIA’s Sunset Bill).

What is the Sunset Advisory Commission? The Texas Sunset Advisory Commission regularly studies the effectiveness of state agencies and programs and reports to the Legislature with recommendations to make these agencies and programs more efficient and effective.

 
How will this affect policyholders?
Each Sunset review provides an opportunity to improve the effectiveness of the organization under examination. New laws that impact TWIA and its policyholders may arise from Legislative recommendations identified during the 2031 Sunset review process.
 

Statute(s)TWIA CommunicationsLearn More About Affected Operations
Senate Bill 615
December 6, 2018 webpost: Sunset Commission Report on TWIA
July 16, 2018 webpost: TWIA and Sunset Review
N/A

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