Texas House bill by Rep. Hunter establishes new funding for Texas Windstorm Insurance Association

Passed bill authored by State Rep. Todd Hunter aims to create a financially viable solution for the Texas Windstorm Insurance Association to manage catastrophic events and maintain insurance availability in coastal areas, according to the Texas Legislature website.

In the House, 54 Democrats and 60 Republicans voted in favor of the bill, while 20 Republicans opposed it.

Meanwhile, in the Senate, 11 Democrats and 18 Republicans voted in favor, while two Republicans voted against it.

Todd Hunter introduced the bill in the Texas House on Tuesday, March 4, during the 89th regular legislative session.

Hunter graduated from the University of Kansas in 1975 with a BA and again in 1978 from Southern Methodist University with a JD.

Hunter, a Republican, was elected to the Texas State House in 2009 to represent the state’s 32nd House district, replacing previous state representative Juan M. Garcia III.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to funding of excess losses and operating expenses of the Texas Windstorm Insurance Association; authorizing an assessment; authorizing a surcharge’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill establishes new funding mechanisms for the Texas Windstorm Insurance Association (TWIA), replacing the existing method of using public securities to cover excess losses and operating expenses incurred after Dec. 31, 2025. It authorizes TWIA to utilize financing or investments from available state funds, with loans capped at $500 million pre-event and $1 billion post-event, supported by a catastrophe surcharge on certain insurance policies to ensure repayment. The bill aims to create a more financially viable solution for TWIA to manage catastrophic events, improve the association’s solvency, and maintain windstorm and hail insurance availability in coastal areas. It also mandates that post-Dec. 31, 2025, excess losses be paid from set reserves, trust funds, state-funded financing, and member assessments, with a provision for reinsurance by association members. An effective date for the bill is provided as Sept. 1, 2025, with certain provisions repealed by Sept. 1, 2027.

The bill was co-authored by Rep. J.M. Lozano (Republican – District 43), Rep. Oscar Longoria (Democrat – District 35), and Rep. Mary Ann Perez (Democrat – District 144), along with 19 other authors.

The bill received its final legislative approval on Wednesday, May 28, and was filed without the Governor’s signature on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.