The Texas Windstorm Insurance Association (TWIA) Board of Directors voted to increase rates for 2019 by 10% at the July 31st Board Meeting.1 TWIA then reported the proposed rate increase to the Texas Department of Insurance and the Commissioner of Insurance must approve the rate. The rate increase would go into effect for all policies issued or renewed in 2019.
If no decision to approve or disapprove this proposed rate increase was made by October 15, 2018, then the rate would be approved without further action.2 As this date was fast approaching without a formal decision, property owners still dealing with the effects of Hurricane Harvey neared paying even higher premiums for next year’s coverage.
However, on October 11, 2018, Governor Greg Abbott wrote a letter to the Commissioner of the Texas Department of Insurance suspending Section 2210.352 of the Texas Insurance Code. The suspension will remain in effect until June 16, 2019, to allow the 2019 Texas Legislature to address the statutes that control TWIA.3
While a rate increase for TWIA policyholders looks to be possible in the future, in the short term the Governor has blocked the attempt and metaphorically waived his finger saying no, no, no.
2 Texas Insurance Code section 2210.352(c).