Vote Smart's Synopsis:

Vote to pass a bill that amends the Texas Windstorm Insurance Association, effective September 1, 2015.

Highlights:

• Amends the membership of the association’s board of directors, including the following changes (Sec. 14):
• 3 insurance industry representatives who are not seacoast residents, whereas the existing board includes 4;
• 3 individuals who reside in and represent “first tier coastal counties”, whereas the existing board includes 4;
• 1 individual who resides in and represents a “second tier coastal county”; and
• 2 individuals who reside in and represent an area located more than 100 miles from the Texas coastline.
• Authorizes the Texas Department of Insurance Commissioner to enter into a contract with a qualified administrator to manage and operate the association should the commissioner determine it is in the best interest of the policyholders and the public (Sec. 7). 
• Requires the association to use alternative risk financing mechanisms in an amount equal to the probable maximum loss for the association for a “catastrophe year” with a probability of 1 in 100 (Sec. 19).
• Rep. Myra Crownover is listed in our vote breakdown as voting “Nay”; she intended to vote “Yea”.
• Rep. Patricia Fincher Harless is listed in our vote breakdown as not voting; she intended to vote “Yea”.
• Rep. James E. White is listed in our vote breakdown has voting “Nay”; he intended to vote “Yea”.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends the Texas Windstorm Insurance Association, effective September 1, 2015.

Highlights:

• Amends the name of the Texas Windstorm Insurance Association to the Texas Coastal Insurance Association (Secs. 1-4).
• Amends the membership of the association’s board of directors, including the following changes (Sec. 14):
• 3 insurance industry representatives who are not seacoast residents, whereas the existing board includes 4;
• 3 individuals who reside in and represent “first tier coastal counties”, whereas the existing board includes 4;
• 1 individual who resides in and represents a “second tier coastal county”; and
• 2 individuals who reside in and represent an area located more than 100 miles from the Texas coastline.
• Authorizes the Texas Department of Insurance Commissioner to enter into a contract with a qualified administrator to manage and operate the association should the commissioner determine it is in the best interest of the policyholders and the public (Sec. 7). 
• Requires the association to use alternative risk financing mechanisms in an amount equal to the probable maximum loss for the association for a “catastrophe year” with a probability of 1 in 100 (Sec. 19).

Full Bill Text