HomeMy WebLinkAbout032312 RES - 12/22/2020Resolution Opposing Texas Windstorm Insurance Association Rate Increase
WHEREAS, the City of Corpus Christi strives to encourage economic development and improve
the quality of life for residents and businesses in the City;
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. Hurricane Harvey was the first major hurricane to make landfall along the Middle Texas
Coast since Hurricane Celia in 1970;
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;
WHEREAS, more than three years after the storm, many of the Hurricane Harvey disaster
declared communities are struggling to rebuild;
WHEREAS, Hurricane Hanna made landfall on the south Texas Coast on Saturday July 25,
2020;
WHEREAS, the City of Corpus Christi faces an economic crisis driven by the COVID-19
pandemic along with the downturn of the oil and gas industry. Our small businesses have been
greatly impacted by the recession and we have seen a loss of jobs in our communities;
WHEREAS, the 86th Texas Legislature did act by passing HB1900, which creates a Legislative
Funding Oversight Committee to study TWIA's rate adequacy;
WHEREAS, the Legislative Oversight Committee was appointed but unable to complete its
oversight work due to the COVID-19 pandemic restrictions. This committee must be given time
to act before TWIA activates a new rate increase;
WHEREAS, TWIA continues to not follow the process set in law for setting windstorm insurance
rates. By law, TWIA is required to consider new rates at the August board meeting. For the
second year in a row, TWIA was unable to finalize rates at that Board meeting. As TWIA began
to set rates for 2021, they convened the actuarial committee to review the rate adequacy study
before the study was complete;
WHEREAS, the TWIA Board of Directors voted for no rate increase at its August 2020 meeting;
until the full rate adequacy study could be completed;
WHEREAS, TWIA continues to operate in a non -transparent manor and does not comply
with open meetings rules. At the most recent meeting of the actuarial committee, public
comment was due on Sunday, November 29th and the updated rate adequacy study was not
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released by TWIA until the afternoon of November 30th which prevented the public from filing
substantive comment on the report before the committee for consideration. The actuarial
committee then requested Willis Towers Watson to gather additional information before the
board meeting on December 8th The written public comment period for the Board meeting
closed before the updated information presented to the board was released to the public for
review;
WHEREAS, the published agenda for the December 8, 2020 Board meeting included no
action item on a rate increase;
WHEREAS, there are sufficient premiums, assessments, and reinsurance to cover potential
TWIA liabilities for 2021;
NOW THEREFORE BE IT RESOLVED, THAT THE CITY OF CORPUS CHRISTI continues its
opposition to unnecessary increases in windstorm insurance rates and encourages the Governor
of Texas and the 87th Session of the Texas Legislature to take action to stop the Texas Windstorm
Insurance Association from implementing the 5% rate increase that was voted on with no public
notice and comment process from the public. A TWIA rate increase on top of the economic
recession caused by the COVID-19 pandemic would be devastating to our regional economy and
the entire Texas Coast. fli1
PASSED AND APPROVED on the otic day of M , 2020:
Joe McComb P
Roland Barrera � •
Rudy Garza -4
Paulette M. Guajardo
Gil Hernandez Q��a-wk,
Michael Hunter
Ben Molina Q
r
Everett Roy 1 � q
rs
Greg Smith }�
ATTEST: CITY OF CORPUS CHRISTI
F VY1
Rebecca Huerta Joe NOcComb
City Secretary Ma r
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