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No significant fiscal implication to the State is anticipated.
HB 4534 would make a number of adjustments to the Insurance Code related to the Texas Windstorm Insurance Association (TWIA).
This bill would prohibit TWIA from paying insured losses and operating expenses resulting from an occurrence or series of occurrences in a catastrophe year with premium and other revenue earned in a subsequent year.
The bill would require the board of directors to call an emergency meeting to notify members if the final estimate of losses for an occurrence or series of occurrences would result in member assessments.
The bill would place a moratorium on TWIA rate increases until September, 2021 and require TWIA to annually pay to the catastrophe reserve trust fund 20 percent of net earned premiums.
The bill would create a legislative funding and funding structure oversight board to study TWIA's structure and make a report to the legislature with recommendations for legislative action related to the funding, funding structure, and sustainability of the association. Presumably this report would provide the basis for the 87th Legislature to make necessary reforms to TWIA.