NOTICE OF PUBLIC HEARING
COMMITTEE: Business & Commerce
TIME & DATE: 10:00 AM, Tuesday, September 09, 2014
PLACE: E1.016 (Hearing Room)
The Senate Committee on Business & Commerce will meet at 10:00 AM on Tuesday, September 9, 2014 in Room E1.016 of the Texas Capitol Extension. The Committee will:
Take invited testimony on the following:
· Interim Charge 1: Review the administrative and financial state of the Texas Windstorm Insurance Association (TWIA). Specifically, review management's business practices that result in continued administrative oversight by the Texas Department of Insurance, and determine alternative financial methods to fund a probable maximum loss of a 1 in 75 or 1 in 100 year event. Monitor litigation developments. Develop and evaluate plans to reduce TWIA's total insured exposure. Monitor and make recommendations regarding an exposure reduction clearinghouse under development at TWIA, which aims to assist the transfer of TWIA policies to the free market. Study and make recommendations regarding the qualifications for building inspectors conducting inspections for the TWIA and other building inspectors statewide. Consider expanding the types of professionals qualified to conduct inspections and the appropriate entity to oversee inspectors.
· Interim Charge 2: Review the Texas FAIR Plan's organizational and financial structure as the state's insurer of last resort for residential homeowner's insurance coverage. In particular, study the structural relationship to TWIA, cause of its current debt, and available coverages and rates compared to the private market. Evaluate proposals to reduce the total insured exposure of the FAIR Plan.
Receive updates from the Public Utility Commission of Texas, the Office of Public Utility Counsel, and the Electric Reliability Council of Texas.
Invited witnesses are asked to provide written testimony and exhibits in electronic format no later than Tuesday, September 2, 2014.