| TO: | Honorable John Carona, Chair, Senate Committee on Business & Commerce |
| FROM: | Ursula Parks, Director, Legislative Budget Board |
| IN RE: | SB1701 by Taylor (Relating to the payment of insured losses of the Texas Windstorm Insurance Association and funding of the catastrophe reserve trust fund.), As Introduced |
The bill would amend the Insurance Code relating to the payment of insured losses of the Texas Windstorm Insurance Association (TWIA) and funding of the catastrophe reserve trust fund. The bill would require TWIA to make payments each year to the catastrophe reserve trust fund in amounts not less than $200 million. The bill would also stipulate that the amounts in the catastrophe reserve trust fund could only be used to pay for insured losses incurred on or after the earlier of the effective date of the bill or June 1, 2013.
Based on information provided by the Department of Insurance, it is assumed that all duties and responsibilities associated with implementing the provisions of the bill could be accomplished using existing resources. In addition, this analysis does not consider fiscal impacts to TWIA and the catastrophe reserve trust fund since those entities are located outside the Treasury.
| Source Agencies: | 304 Comptroller of Public Accounts, 454 Department of Insurance
|
| LBB Staff: | UP, RB, MW, ER
|