Independent Insurance Agents of Texas with winds discuss the

 

Friday, Mar 27,2009, 1:42:05 PM   Click:

AUSTIN, Texas - (BUSINESS WIRE) - March 26, 2009 - As the financing of the Insurance Association of Texas wind (TWIA) has become a top priority for the Texas legislature, the state legislators discussed several solutions that have an impact on policyholders in Texas, according to the Independent Insurance Agents of Texas (IITA).

"We have seen what happens when a big storm our shores," said David VanDelinder, IIAT executive director. "If we do not put in place adequate funding for the 2009 season, we could wreck our market insurance and the state budget with another hurricane Ike.

Happens when the hurricane season in June, TWIA will be financed largely by insurance company assessments and revenues. "Insurance companies should play a role in financing TWIA losses, but this role should be manageable and not so large that it scares companies writing business in the state," said VanDelinder.

The storms of 2008, the cost TWIA six times the premium received in the previous year. In a single year 2008, the exhaustion of 36-year storms, the excess reserves and scientific models to estimate the recent storm damage caused by another big storm in Texas as high as $ 8 billion.

"In other states, we looked insurers withdraw from the market after a series of major storms, leaving state taxpayers and the insured to pay the bill," said VanDelinder. "If you load a unlimited assessments on insurance companies or not to allow them to recoup their losses, they are insured to collect higher premiums or stop writing policies in Texas. However, c That is bad news for homeowners and businesses across Texas, not only on the coast. "


The search for the Perryman Group in 2006 after Hurricane Katrina, Texas has found economic success is directly related to Gulf Coast industries. Approximately 40 percent of employment and income in the coastal state are related to industries such as transportation of oil and gas.

"Our legislators recognize coastal insured can not pay themselves all losses, and it is really a state issue," said Lee LOFTIS, IIAT director of governmental affairs. "The best solution is one that maintains a healthy insurance market of the State."

Currently public securities such as bonds, have been proposed as an appropriate way of re-financing TWIA and the strengthening of its reserves to protect the State against the financial consequences of another major storm. It was also proposed that the state lends $ 1.5 billion in its Rainy Day Fund to help pay claims. Bills filed to date suggests a new way to include funding for TWIA HB 911 by Rep. John Smithee (R-Amarillo), HB 3853 by Rep. Craig Eiland (D-Galveston) and SB 14 by Senator Troy Fraser (R - Horseshoe Bay).

About IITA

The Independent Insurance Agents of Texas (IITA) is the largest state association of Trusted Choice ® agencies. IIAT represents about 1,800 branches and over 15,000 agents and insurance professionals.