HomeMy WebLinkAbout031528 RES - 08/28/2018 RESOLUTION
Requesting the Commissioner of Insurance to reject the proposed premium rate increase
proposed by the Texas Windstorm Insurance Association.
WHEREAS, Hurricane Harvey made landfall as a Category 4 hurricane on the Texas coast on
Friday, August 25, 2017, and battered and drenched Texas for days before finally moving out of
the state. The heavy rains from Harvey caused catastrophic flooding throughout the Coastal Bend
Region, the Houston area and Southeast Texas and was the first major hurricane to make landfall
along the Middle Texas Coast since Hurricane Celia in 1970; and,
WHEREAS, Governor Greg Abbott first issued a disaster declaration on Aug. 23, 2017, for
Aransas, Austin, Bee, Brazoria, Calhoun, Chambers, Colorado, DeWitt, Fayette, Fort Bend,
Galveston, Goliad, Gonzales, Harris, Jackson, Jefferson,Jim Wells, Karnes, Kleberg, Lavaca,
Liberty, Live Oak, Matagorda,Nueces, Refugio, San Patricio, Victoria, Waller, Wharton, and
Wilson counties; and,
WHEREAS, almost one year after the storm many of the Hurricane Harvey disaster declared
communities are struggling to rebuild,have TWIA and other insurance claims unresolved, are
still waiting for assistance from FEMA, HUD, SBA or other federal agencies. Others are unable
to find and hire a qualified and trusted contractor to provide bids, or to start or complete repairs
and re-construction, and are financially burdened by higher deductibles and unforeseen overall
increases in labor or material costs, resulting in claimants being unable to begin or complete
repairs and reconstruction that was started. In addition,home and business owners are frustrated
by delays caused by lack of familiarity with claim dispute procedures and deadlines on the part
of the claimant's public adjuster or attorney; and,
WHEREAS, the Texas Windstorm Insurance Association Board of Directors voted 5-4 to
increase rates for 2019 by 10% at the July 31, 2018, quarterly Board meeting and will file the
proposed rate increase with the Texas Department of Insurance (TDI) by August 15, 2018, as
required by law; and consumers also face an additional four percent cost-of-living increase
approved by TWIA; and,
WHEREAS, the Texas Insurance Code(Chapter 2210) requires TWIA rates be"reasonable,
adequate, not unfairly discriminatory, and nonconfiscatory as to any class of insurer." Rates must
also be based upon sound actuarial principles and sufficient to sustain projected Association
losses and expenses; and,
WHEREAS, the proposed rate increase must be approved by the Commissioner of Insurance,
and if approved, it will go into effect January 1, 2019 and apply to all TWIA residential and
commercial properties. New business and renewal policies issued in 2018 will not be affected by
the rate increase until the policies renew in 2019;
NOW THEREFORE BE IT RESOLVED,THAT THE CITY OF CORPUS CHRISTI
request that the Commissioner of Insurance reject the proposed premium rate increase proposed
by the Texas Department of Insurance.
031528
INDEXED
PASSED AND APPROVED this 'i e day ofaL4.LA4, 2018.
ATTEST:
BClOk-a& 1+Lk____12/1 - • 144 Y—.4P—w",/--
Rebecca Huerta Jo- icComb
City Secretary I. it
Corpus Christi, Texas
On the 2' 8 day of , 2018, the above resolution was passed
by the following vote:
Joe McComb __10ef__
Rudy Garza --alt—
Paulette Guajardo
Michael Hunter _A
i
Of,1
Debbie Lindsey-Opel
Ben Molina --(4—
Everett Roy Okib62)
Lucy Rubio _____04
Greg Smith ----CiAU,
Approved As To Form:
I/ 't, A / - /
Miles Risley
City Attorney
031528