To be the insurer of last resort
for wind and hail insurance along the Texas coast, without state support and reliant on premium dollars and debt financing for funding, or to be a true insurance company that derives funding primarily from premium dollars?
The governor, speaking to reporters at an event highlighting the state's emergency response capabilities, was asked if he would consider adding to the agenda a fix for the troubled Texas Windstorm Insurance Association, or TWIA, the state's insurer of last resort
for coastal residents.
Frakes also said that while TMIC that is a workers'-compensation insurer of last resort
, it has no market advantages over the private market except that it is exempt from federal income taxes, as are all of the more than 20 state funds that still exist in the U.S.
The New Jersey Commercial Automobile Insurance Plan, the state's insurer of last resort
for commercial vehicles, received approval for a 9.8% rate increase.
TWIA, the state's insurer of last resort
for Texas' coastal regions, has been bedeviled for years by legal challenges over the cost of damage caused by Hurricane Ike.
Instead, they note, the federal government has chosen to be the insurer of last resort
for NFIP flood claims.
Florida's hurricane insurer of last resort
is offering incentives to coastal homeowners that will help them save on their hurricane coverage premiums through various home improvements.
TWIA is the insurer of last resort
for wind and hail for counties along the state's Gulf Coast.
Approved "take-out companies" in Florida have been given the go-ahead to remove another 65,990 policies from the state's bloated insurer of last resort
At a joint legislative oversight committee hearing Thursday, lawmakers harangued officials over the Texas Windstorm Insurance Association, the insurer of last resort
along Texas' coast, over the high price of litigation and consulting fees the association has racked up since Hurricane Ike ravaged the Texas coast in 2008.
The government would initially act as insurer of last resort
to guard against an extreme flood that overwhelmed the fund, but taxpayer support would be withdrawn once the fund had accumulated enough cash to handle any likely flood on its own.
In 2010, lawmakers passed major reforms to the association - the semi-state run windstorm insurer of last resort
- giving TWIA the ability to adjust policyholder's premium rates in different regions of the state depending on the risk of damages.