“Fragile” Wind Insurance Compromise Reported
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Sen. Troy Fraser reports a “fragile” compromise on his TWIA (Texas Wind Insurance Association) bill is currently being reviewed by senators and he hopes to have the measure on the floor tomorrow. A version that contains agreements forged during three days of meetings with coastal senators is now “being read by everybody to make sure it does what we think it does,” he added. “There’s no resistance at this point.” Sen. Mike Jackson says the new version avoids painful surcharges on coastal residents, though rates will probably rise in order to be actuarially sound. The association will also be authorized to issue bonds, and will forego reinsurance in order to build up its fund. Though the plan involves some risk, he said it’s a better plan than “kicking everyone on the coast (with huge surchages) who have just had all their belongings washed away.”