Craig Eiland: TWIA can still assess for Ike

According to ABC-13, State Representative Craig Eiland of Galveston also thinks I’m wrong about whether TWIA can still assess insurers for damages caused by Hurricane Ike in 2008.  I’ve stated here and here in this blog that the repeal of section 2210.058 of the Texas Insurance Code in 2009 certainly seems to have ended that authority.  But Rep. Eiland states: “The board can reassess the companies now — today, tomorrow, next week — for the money and premiums they paid out in claims since Hurricane Ike.” TV stations don’t usually include footnotes, so I’m genuinely curious about what Rep. Eiland’s legal authority is for his assertion.

I’m also curious to see what would happen if TWIA followed Representative Eiland’s assertion and actually tried to reassess insurers around the state to pay for persistent Ike claims.  My guess is that it would not provide cash in time for the 2013 hurricane season. I suspect that many Texas insurers would file a lawsuit before they wrote a check.

2 thoughts on “Craig Eiland: TWIA can still assess for Ike

  1. Seth – No one can say we didn’t warn leadership about TWIA. You, Dave Norman and I have been way out in front of the TWIA solvency problem.

    It is actually unfolding worst than I envisioned in December 2011 when I started my concerted effort to warn leadership and the media. My original estimate was that TWIA was vulnerable to a $3 billion claims shortfall from a major hurricane strike. In November 2012, when the Class 1 bonds were ruled unmarketable (something Dave Norman foresaw) and TWIA cash was gone, my estimate changed to a $5 billion shortfall. More recently, I have come to doubt the viability of the Class 2 bonds which would mean a mere $680 million to grapple with whatever storms could strike the TWIA service area — a big Thunderstorm could put TWIA down.

    Are we looking at complete collapse of TWIA and no funding for claims for the 2013 hurricane season? It really depends on what tricks the legislature can pull out of the hat in the next couple of weeks. My “Crump logical, hopeful” self believes that the political leadership simply can’t be so irresponsible to let Texas be naked to hurricanes for 2013. My “Crump Gloomy” self says that we are toast.

    Our climate situation is a transition between La Nina and El Nino. We will not have high pressure dome sitting over Texas this summer pushing the cyclones away from the Texas coast like the last couple of years. This opens the front door of Texas for a hurricane strike (it also means some drought relieve). The pre-season Atlantic hurricane forecasts are modestly above average for the number of cyclones including 3 major hurricanes. This combination puts us at a high percentage risk for at least one hurricane strike to Texas. With TWIA down, all we have to protect us is luck.

  2. Pingback: H.B. 3622: the hearing yesterday. And is it getting worse?

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