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The Texas Department of Insurance is seeking public comment on drafts of rules for implementing legislation that alters funding mechanisms for the state’s property insurer of last resort for wind and hail along the Texas coast.

TDI has posted on its website drafts of rules implementing SB 900, 84th Legislature, Regular Session (2015), which among other things makes changes to the Texas Windstorm Insurance Association’s sources of catastrophic loss funding.

The posting includes drafts of amended versions of 28 TAC §§5.4101, 5.4102, 5.4121, 5.4123 – 5.4125, 5.4134 – 5.4136, 5.4141, 5.4144, 5.4161, 5.4171 – 5.4173, 5.4181, 5.4182, and 5.4184 – 5.4190; replacement versions of §§5.4126, 5.4127, 5.4142, 5.4143, and 5.4145; and new §5.49112.

These amended versions also contemplate the repeal of 28 TAC §5.4128 and §§5.4146 – 5.4149.

SB 900 allows for an assessment on property insurers operating in the state of up to $1 billion (in different stages) in the event that TWIA runs out of funds from other sources to pay bills. Insurers would be prohibited from recouping those assessments through a premium surcharge or tax credit.

TDI said the draft rules do not have a direct impact on TWIA’s rates. The draft rules may be accessed via TDI’s website at .

Comments may be submitted to Brian Ryder at Brian.Ryder@tdi.texas.gov.

The deadline to submit comments is Aug. 14, 2015.

Related:

• Windstorm Insurance Bill Stirs Lively Debate in Texas House
• Texas Seeking Applications for Windstorm Insurance Assoc. Board

Topics Catastrophe Texas Carriers Natural Disasters Windstorm