Texas General Lines — Property and CasualtyTexas Laws and RegulationsMedium
A coastal homeowner in Texas is unable to obtain property insurance for windstorm and hail coverage from the voluntary market. Which organization serves as the insurer of last resort for windstorm and hail coverage in designated catastrophe areas of Texas?
- ATexas Windstorm Insurance Association (TWIA)
- BTexas Automobile Insurance Plan Association (TAIPA)
- CTexas Property and Casualty Insurance Guaranty Association (TPCIGA)
- DTexas FAIR Plan Association
Show answer & explanationAnswer & explanation
Correct answer: A. Texas Windstorm Insurance Association (TWIA)
The Texas Windstorm Insurance Association (TWIA) provides windstorm and hail coverage in designated catastrophe areas to property owners who cannot obtain coverage in the voluntary market, acting as the insurer of last resort for these specific perils.
Why the other options are wrong
- B. TAIPA provides auto insurance for drivers unable to obtain coverage in the voluntary market.
- C. TPCIGA protects policyholders against the insolvency of property and casualty insurers, it does not provide direct coverage.
- D. The Texas FAIR Plan Association provides basic property insurance for other perils in underserved areas, not specifically windstorm and hail in coastal regions.
Texas Windstorm Insurance Association (TWIA)
A residual market insurer that provides windstorm and hail coverage to property owners in designated catastrophe areas along the Texas Gulf Coast who are unable to obtain coverage from the voluntary insurance market.
- Insurer of last resort for windstorm/hail.
- Operates in specific coastal counties.
- Coverage is subject to specific building code requirements.
Memory trick: TWIA for wind, FAIR for fire, TAIPA for auto – Texas' last resort.