New Declarations Page and Policy Language Added in Compliance with TDI Rules

No post-event surcharge is being imposed at this time. No post-event surcharges would be necessary unless TWIA losses exceed $1.2 billion. The only change taking place right now is the addition of policy language and a new declarations page.

In order to comply with Texas Department of Insurance rules, TWIA system updates will be made tonight that implement a new declarations page and add policy language notifying policyholders about the possibility of premium post-event surcharges. The changes will affect all new and renewing commercial and residential TWIA policies. The law requires TWIA to surcharge, post-event, all TWIA policies if the Texas Insurance Commissioner determines those funds are needed to pay for public securities if issued after a catastrophe or series of storms that exhaust TWIA’s first levels of funding. For more information on TWIA’s funding, visit our website.

The new declarations page and policy language implements loss funding rules adopted by the Texas Department of Insurance in February. Policyholder post-event surcharges have always been a source of funding for repaying a portion of the public securities issued on behalf of TWIA. This now adds that language to the policies and declarations page. The new language being added is as follows:

Premium Surcharge:

The Texas Insurance Commissioner has the authority to determine that a premium surcharge is necessary to pay public securities issued on behalf of TWIA policyholders and to require you to pay this surcharge. This policy will immediately be subject to any non-refundable premium surcharge determined by the Commissioner and implemented by us.

If a surcharge is implemented, we will notify you in writing and include in the notice the amount you must pay. Payment of the surcharge will then be due 120 days after you receive the notice from us. Failure to pay the surcharge by the deadline will result in cancellation of the policy.

As part of the update, all TWIA systems will be unavailable this evening from 6-9pm. If you have specific questions about the new language, please contact Agent Services at agentservices@twia.org or (800) 788-8247, option 7, M-F 8am to 5pm.