Bill > SB2530

This bill makes several significant changes to the Texas Windstorm Insurance Association (TWIA), a state-run insurance provider that covers windstorm and hail damage in coastal areas. Key provisions include prohibiting TWIA employees and board members from using association funds to lobby for or against legislative measures, with violations resulting in immediate termination and a $10,000 administrative penalty. The bill requires the association's headquarters to be located in a coastal county and mandates that certain board meetings, including those setting probable maximum loss and annual rates, be held in person in a first tier coastal county. The legislation also modifies board membership requirements, adjusts the process for setting and approving the association's probable maximum loss, and changes how member assessments and public securities are handled during catastrophe years. Additionally, the bill requires board approval for adjusting premiums for inflation, extends the timeline for rate filings and approvals, and changes the probability calculation for maximum loss from one in 100 to one in 50 years. These changes aim to improve the governance, financial management, and operational transparency of the Texas Windstorm Insurance Association, with most provisions taking effect on January 1, 2026.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2530