1 Windstorm Legislative Activity

[Lee Zapp Jr.]

The 82nd Legislature ended May 30, 2011.  One windstorm insurance bill passed the House and a very different bill passed the Senate; they were never reconciled, so NO bill passed.

 

Governor Perry called a 30 day special session starting May 31, 2011.  When the Governor opened the call for the special session to windstorm insurance matters, Chairman John Smithee (R) Amarillo, filed HB 3, nearly identical to the version of CSHB 272 passed by the House in the General Session.  HB 3 was quickly heard and passed out by Chairman Smithee's House Insurance Committee, and passed the House on second reading today, June 15, 2011, by a vote of 99 to 41, following party lines.

 

SB 3, a different windstorm insurance bill, was filed by Chairman John Corona (R), Dallas, very similar to the version of CSHB 272 passed by the Senate.  Opposing views of SB 3 were expressed by witnesses and Senate Committee Members at the hearing convened by Chairman Corona's Senate Business and Commerce committee June 14, 2011.  SB 3 is left pending in the B & C Committee, and may be brought back to the committee at any time for consideration of amendments, committee acceptance or rejection.

 

HB 3 is expected to pass the House on 3rd and final reading June 16, after which it will be sent to the Senate, where it will be addressed along with SB 3.

 

Concerns for the Coastal Economy and policyholder concerns include:

1.) the repeal of policyholder legal rights to dispute claims in local courts;

2.) inadequate funding to pay claims after a major hurricane;

3.) timing and manner of payment of securities intended to provide claims funding;

4.) authorization to place the Texas Windstorm Insurance Association [TWIA] under 'supervision' or 'conservatorship' status.  Such status would be grounds for lenders to reject TWIA policies.  Since there are no other insurers available to provide windstorm coverage, loans would be in default, and lenders could foreclose.  New loans would become unavailable in coastal areas dependent on TWIA. [it was testified 6/14/11 that 56% of all 14 coastal county windstorm policies are TWIA policies].

 

If TWIA problems could COST YOU or your employees, your customers, your relatives or friends MONEY, please join with the Chambers of Commerce of Corpus Christi and Galveston and the 25 year Galveston Windstorm Action Committee, Inc. to learn more about legislative action taking place, and what action YOU can take to make a difference.

Go to www.DontKilltheTexasCoast.com .  On the right side, click on 'Join this group'.  Follow the directions and look for periodic bulletins.