New Laws Changing TWIA Processes Going into Effect Soon

Published on: August 30, 2023

Attention agents: The Texas Legislature passed several new laws related to the Texas Windstorm Insurance Association (TWIA). Here is some information about these laws and how they will impact how agents do business with TWIA. The Association will be working over the coming weeks and months to update our processes and provide training and information to implement these laws.

TWIA-Specific Changes

TWIA will end automatic renewals for commercial policies. Senate Bill 2233 requires TWIA’s automatic renewal process to include residential renewals only. We will provide agents with a timeline for when this change will be implemented and how this will affect the agents role in commercial policy renewals.

TWIA will retain the entire year’s premium on TWIA policies cancelled by the policyholder in some cases. House Bill 3208 requires the Association to deem the full annual premium as fully earned and non-refundable on policyholder-cancelled policies UNLESS the cancellation is due to:

  • the purchase of similar coverage in the private market,
  • the sale of the insured property,
  • the total loss of the property,
  • death of the policyholder, or
  • a determination by TWIA that the policy is no longer insurable.

Proof that the cancellation meets these scenarios will be required.

TWIA will establish agent standards and performance requirements. Senate Bill 2232 authorizes the Association to establish standards agents must comply with to offer or sell a TWIA policy. We will solicit feedback from TWIA’s Agent Advisory Group and other key agent stakeholders to develop these standards and performance requirements.

TDI will set appraisal deadlines for TWIA claims. House Bill 3310 allows the Insurance Commissioner, with the Association’s advice, to set deadlines for the appraisal process. The new deadlines will apply to appraisals demanded on or after January 1, 2024.

Other Changes You Should Know About

Policy nonrenewal notice requirements will change from 30 days to 60 days. House Bill 1900 applies to all property and casualty policies, not just TWIA policies. The new rule will apply to policies issued or renewed on or after January 1, 2024.

The Insurance Commissioner will be authorized to designate areas within 10 miles of TWIA’s coverage area where property owners’ associations would be eligible for FAIR Plan coverage. Under House Bill 998, TFPA must begin offering these policies by September 1, 2024 in areas designated by the Commissioner.

We will keep agents informed about when and how our processes will change to comply with the new laws and provide additional resources and training to help agents transition.