Dear Agent,
We hope this email finds you, your loved ones, and your clients healthy and well.
In support of our policyholders, TWIA is responding to the COVID-19 crisis by:
- temporarily reducing the amount of premium due in order to issue a policy, and
- providing 75 days to pay the remaining premium.
These changes are effective immediately and will remain in place for all new business and renewals until we determine it is no longer necessary. We are committed to keeping agents updated on any changes and we will notify you before we discontinue this temporary payment option.
Any TWIA policyholder who is experiencing financial challenges due to the COVID-19 crisis can use this option. You do not have to notify TWIA that your client is using this option.
How this Temporary Payment Option Works
- Pay at least 25% of the full premium prior to the effective date to have a policy issued.
- The 25% premium down payment cannot be paid by EFT or ACH, at this time. It must be paid by check or money order and mailed to TWIA using approved methods.
- No later than 75 days from the policy effective date, the remaining balance is due.
- If the policyholder’s balance is not paid within the 75-day period, TWIA will issue a Notice of Cancellation (NOC) that states the policy will cancel if the delinquent balance is not paid by the end of the 15-day NOC period.
Important Points to Consider First
- At this time, the 25% premium down payment cannot be paid by EFT or ACH. It must be paid by check or money order. We are evaluating system changes that could enable this payment by EFT or ACH.
- The policyholder’s invoice will still show the due date as being 30 days from the effective date; however, payment will be due as described in “2.” above.
- If a policy is cancelled for non-payment (of either the initial 25% minimum or the remaining balance) and the property owner wishes to reinstate their policy, it will be considered new business.
- If a policyholder is considering the use of premium financing, they may want to discuss their options with those companies before taking any action.
Our Agent Services team is here to help. If you have any questions or would like to discuss a specific issue, please contact us at agentservices@twia.org or at (800) 788-8247.
Sincerely,
Texas Windstorm Insurance Association |
