Port Aransas Chamber of Commerce Response
Published on: Mar 4, 2016
Transcripts - Port Aransas Chamber of Commerce Response
October 25, 2013
Texas Department of Insurance
333 Guadalupe, 113-1C
P. O. Box 149104
Austin, TX 78714-9104
Attention: Brian Ryder – Brian.Ryder@tdi.texas.gov
The Port Aransas Chamber of Commerce wishes to submit the comments contained in this letter regarding the
Texas Department of Insurance’s (“TDI”) informal draft of TWIA premium surcharge provisions as mandated by
Texas Insurance Code §2210.613.
Although we recognize that TDI must develop proposed rules based on statutory requirements imposed from the
passage of House Bill 3, 82nd Legislature, First Called Special Session, we want to emphasize the adverse
impact these proposed rules will have on Texans within the catastrophe area. Coastal TWIA policy holders have
been assessed a 5% increase each year over the last several years. Along with TWIA increases, coastal
residents may also soon be impacted from rate increases under the National Flood Insurance Program. Many
coastal residents are already struggling to afford insurance for their homes and small businesses and the result
of these increases will further exacerbate this. Should a devastating hurricane make landfall, coastal policy
holders will be assessed additional costs to repay the issuance of bonds over several years, perhaps decades.
These proposed rules will hit at a time coastal residents face enormous expenses in recovering after a hurricane
and may or may not have property of the same or equal value left to insure.
The Texas coast acts as the economic generator for the entire state, but we do not believe this area should be
discriminated against. We believe alternative funding sources should be explored or the additional costs from
assessments should be passed across the entire state. We will continue to work with our legislative delegation to
amend the law and look for alternatives to the current funding mechanism. The 84th Legislative Session in 2015
is quickly approaching, and we hope legislation will be enacted which will make the need for these rules
When developing final rules for loss funding, it is important for TDI to keep in mind that TWIA is still resolving
pending litigation from the 2008 hurricanes and other events and paying for related losses and loss adjustment
expenses which occurred before the passage of House Bill 3. We are hopeful that the TWIA Board of Directors
may still decide to assess members of TWIA for these losses pursuant to Section 2210.052, Texas Insurance
Code, as these rules would then allow for the assessment of member companies.
We look forward to working with you and TDI on this issue.
Ann Bracher Vaughan, President/CEO
On behalf of the Board of Directors
CHAMBER OF COMMERCE AND TOURIST BUREAU
403 W. Cotter | Port Aransas, Texas 78373 | 361-749-5919 | 800-45-COAST | Fax 361-749-4672
email@example.com | www.portaransas.org