Windstorm Coverage and Budgetary Impact, Interim - 79th R.S. (2005)

Committee Members


  • 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.


Created by the Speaker and the Lieutenant Governor under the authority granted by HCR 35, 79th R.S.

Kim Brimer and Craig Eiland appointed pursuant to Rule 1, Section 16 (House) and Rule 11.03 (Senate), 4/11/2006, (Proclamation, Tom Craddick and David Dewhurst, 4/11/2006.)

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