Bill Proposes Tornado, Wildfire Insurer of Last Resort

HB 3076, filed by Rep. Ken King, proposes the establishment of the Texas Tornado and Wildfire Insurance Association, which would serve as a residual insurer of last resort for tornado and wildfire insurance in Texas.

Under the bill, admitted insurers would be incentivized to write tornado and wildfire insurance on a voluntary basis, minimizing the burden on the association. All property insurers authorized to write property insurance in Texas would be subject to membership in the association and would remain a member throughout the duration of the association.

The organization would be overseen by a nine-member board of directors, with directors serving staggered six-year terms. Under the bill, the Texas Tornado and Wildfire Insurance Association would issue insurance policies no later than January 1, 2020. The bill takes effect immediately if it receives a two-thirds vote in the Texas House and Senate. Otherwise, it would take effect September 1, 2019.