Texas Governor Rick Perry announced this evening that he would immediately call the Texas legislature back into special session. The only item placed on the agenda at this time, however, is legislative districting. Thus, the 83rd Legislature has now closed with essentially nothing being done to reform the thinly capitalized insurer of 62% of the property on the Texas coast. The Governor could add windstorm insurance to the agenda (along with other items) at a later time.
As we will discuss in greater length this week, the failure of Governor Perry, at least for now, to call the legislature back into special session on this issue, means that insureds of the Texas Windstorm Insurance Association are at serious risk of not having claims paid fully in the event of a significant storm. And, with potentially vigorous hurricane season upon us, such a risk could materialize sooner rather than later.
The end of the legislative session also apparently means that Eleanor Kitzman is no longer Texas Insurance Commissioner. We will need to see what the Governor does with that post and how the new appointee will tackle the persistent problems of TWIA and the issue of whether to place it in receivership.