Dear Agent,
Today, May 24, 2019, the TWIA Board of Directors met to consider Association rate filings and possible action regarding the refinancing of Class 1 public securities issued in 2014.
At the meeting, the Board voted unanimously to withdraw the Association’s annual rate filing made in August 2018, which is currently pending with the Texas Department of Insurance. Last year, Governor Abbott suspended the Insurance Commissioner’s consideration of this filing until June 16, 2019, giving the Legislature an opportunity to consider concerns about TWIA’s actuarial soundness and to facilitate continued coastal recovery from the effects of Hurricane Harvey.
The Board's decision today means TWIA policyholders will not be impacted by a premium rate increase in 2019. Please remind your client's that their TWIA premium amount could still change based on changes in their coverage.
At today's meeting, the Board also authorized TWIA staff to work with the Texas Public Finance Authority and the Texas Department of Insurance to effect the refinancing of the outstanding balance of the $500 M in Class 1 public securities issued pre-event in 2014. TWIA used the proceeds of the issued Class 1 bonds to pay policyholders’ Hurricane Harvey claims. The outstanding balance may be refinanced early without penalty beginning July 1, 2019.
More information about today's Board meeting is available on TWIA’s website. If you are interested in listening to an archived recording of the May 24, 2019 TWIA Board meeting, it will be available on TWIA’s website by early next week at https://www.twia.org/about-us/board-of-directors/archived-meetings/.
Sincerely,
Texas Windstorm Insurance Association |
