October 25, 2013
Texas Department of Insurance
333 Guadalupe, 113-1C
P. O. Box 149104
Austin, TX 78714-9104
Attention: Bri...
of 1

Port Aransas Chamber of Commerce Response

Published on: Mar 4, 2016
Published in: News & Politics      
Source: www.slideshare.net

Transcripts - Port Aransas Chamber of Commerce Response

  • 1. 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 unnecessary. 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. Respectfully submitted, Ann Bracher Vaughan, President/CEO On behalf of the Board of Directors /abv CHAMBER OF COMMERCE AND TOURIST BUREAU 403 W. Cotter | Port Aransas, Texas 78373 | 361-749-5919 | 800-45-COAST | Fax 361-749-4672 info@portaransas.org | www.portaransas.org

Related Documents