Dear Agent,

In addition to changes that affect only TWIA (recent TWIA Agent Bulletin), several laws passed during the 86th Legislative Session authorize changes to the insurance industry as a whole. We have outlined below changes that also apply to the Texas Windstorm Insurance Association and the Texas FAIR Plan Association, effective September 1, 2019.

Updates to the
Texas Insurance Code: 
  • Adjuster changes - A contractor may not act as a public adjuster for any property for which they are already providing or may provide contracting services. In addition, adjusters must not use a different name than the one on their adjuster license. 
  • Deductibles
    • Payment requirements – Code was amended to explicitly require property insurance claimants to pay deductibles required under the terms of their policy.
    • Consumer education – The Texas Department of Insurance, in coordination with applicable state agencies and stakeholders, must develop and implement a consumer education program about property insurance deductibles which include information on prohibited conduct.
    • Proof of payment - An insurer may require proof of payment by a policyholder of any deductible applicable to their claim on a policy with replacement cost coverage before releasing withheld recoverable depreciation or a replacement cost holdback.
    • Update to the Business & Commerce Code - Code now stipulates contract language requirements related to deductible payments for claims of $1000 or more and outlines the offenses related to the payment of deductibles by a person other than a policyholder.
Should you wish to review the bills at the heart of these changes, the following links take you to a PDF of House Bill 2659, House Bill 2103, and House Bill 2102
To help us effectively communicate the many changes happening at TWIA, we are launching a webpage dedicated to recent legislation on by the end of the month. In the meantime, we are here to answer your questions. Simply give us a call at (800) 788-8247 or email us at   
Texas Windstorm Insurance Association
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