Sunday, June 01, 2014

Texas new law requires coastal residents to bailout TWIA

This is almost funny.

After a decade of "reforms" of the insurance industry, the Texas Windstorm Insurance Association is on the brink of financial ruin. Prior to 2003 TWIA covered only 6% of the coastal areas, a truly last resort insurance option. Today they cover over 70% becoming the only resort for most home owners. And now after massive failure, the Texas Legislature passed a bill that allows TWIA to pass a surcharge to those in the coastal areas to bail out TWIA. From the Brownsville Herald:

The updated rules provide for a surcharge on auto and property insurance policies to help pay for claims if TWIA reserves are exhausted and if the first level of “post-event” bonds issued aren’t sufficient to cover claims.

So after a decade of promises of lower rates, better coverage, and lower premiums, the people along the coast, who voted for the people who made these promises, are now going to be the people who pay for it. The only thing they have left is to laugh at themselves for being such incredible, gullible, fools and for doing nothing about it.

So if you want to blame someone, blame yourself. If you want to complain, contact your State Representative, John Davis. He will be retiring and paying his insurance bill with your tax dollars. Your State Senator, Larry Taylor, owns an insurance agency and sells TWIA policies. You will be bailing him out also.

It's almost funny.


Matt Bramanti said...

"So if you want to blame someone, blame yourself."

Yeah, pretty much. After all, who should bear the losses of an overextended insurance company, if not its policyholders?

This is how insurance works, John. Premiums have to exceed losses.

Bay Area Houston said...

Leave it to matt to stick his ass up in the air and surrender.

Bay Area Houston said...

I crack myself up.

Bay Area Houston said...

Surrender monkey.

With his ass in the air.