HB 4534

86(R) - 2019
House Insurance
House Insurance

Vote Recommendation

  • Negative
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Eddie Lucio III

Bill Caption

Relating to the rates and other funding of the Texas Windstorm Insurance Association.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

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.

Vote Recommendation Notes

HB 4534 defers for another two years the opportunity for TWIA to make rate increases while continuing to make inland Texans subsidize the cost of insurance for coastal Texans. We understand this is a difficult issue, particularly following Hurricane Harvey, however we recommend legislators oppose HB 4534 and allow TWIA to set necessary rates without government interference.