Better times could be on the horizon the Texas Windstorm Insurance Association. The Texas Windstorm Insurance Association, or TWIA, has been in a precarious position since Hurricane Ike, but $500 million in bonds could help the organization’s balances. Lawmakers recently held a hearing to better ascertain the financial stability of the TWIA, but reactions were mixed. Though aspects of the TWIA are gaining stability, some are still worried that the organization is too reliant on debt for funding.
Some, like Lt. Gov. David Dewhurst, believe that the TWIA should possibly be dissolved. Sen. Wendy Davis, the Democratic candidate for governor, stated that, “One option would be to require private insurers to carry coastal windstorm coverage as a condition of doing business in Texas.” Representative Todd Hunter maintains that the Texas Department of insurance should be allowed to collect $400 million from insurance companies that were neglected in the aftermath of Hurricane Ike. Hunter went on to say that numerous parties throughout the Coastal Bend are putting together new legislation for the funding of the TWIA.
Read more here: Lawmakers work toward windstorm insurance funding solutions