Mike Jackson, Co-Chair
John Smithee, Co-Chair
Kyle L. Janek
Eddie Lucio, Jr.
|• Study the Texas Windstorm Insurance Association (TWIA) and make recommendations regarding the structure for funding catastrophic weather-related losses along the Texas coast under TWIA's authority.|
|• Study the extent to which public securities may be issued as a supplemental or alternative method to raise funds to cover such losses; whether public securities should be issued on a pre-catastrophic basis, post-catastrophic basis, or both; whether caps should be placed on such public securities, and the amount of such caps; the level of loss necessary before public securities are utilized; whether public securities and all debt services on public securities may be paid by premium surcharges; examine the amount of premium surcharges, the policyholder base that may be surcharged; and the types of policies to which a premium surcharge may apply.|
|• Study the use of modeling and other rating methodologies in determining windstorm rate adequacy in Tier I and Tier II coastal counties.|
|• Study whether insurers assessed for funds to cover losses may recover such assessment by way of a premium surcharge; consider the amount of premium surcharge; the policyholder base that may be surcharged, and the types of policies to which a premium surcharge may apply; examine alternative methods of recoupment such as premium tax credits.|
|• Study the extent to which reinsurance may be used to cover losses; consider the creation of a Texas Windstorm Reinsurance Facility and Trust Fund.|
|• Study the extent to which the Catastrophic Trust Fund (CRTF) may be used to cover losses; examine ways to increase funds in the CRTF.|
|• Study combining the Texas Windstorm Insurance Association with the Fair Access to Insurance Association (FAIR) and the need to clarify TWIA's federal taxation exempt status.|
|• Study catastrophic history, population growth, and storm exposure along the Texas coast; examine other coastal state's methods for windstorm loss funding; and examine ways of increasing or encouraging loss mitigation by individuals, insurers and government entities.|
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