Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 5 - PROPERTY AND CASUALTY INSURANCE
Subchapter E - TEXAS WINDSTORM INSURANCE ASSOCIATION
Division 3 - LOSS FUNDING, INCLUDING CATASTROPHE RESERVE TRUST FUND, FINANCING ARRANGEMENTS, AND PUBLIC SECURITIES
Section 5.4162 - Amount of Assessment
Current through Reg. 50, No. 13; March 28, 2025
(a) The association must determine which members of the association must participate in any assessment under § 5.4160 and § 5.4161 of this title (relating to Member Assessments to Pay for Reinsurance In Excess of the Association's Statutory Minimum Funding Level and Member Assessments Other than Assessments for Reinsurance in Excess of the Association's Statutory Minimum Funding Level).
(b) Each member company's percentage of participation must be computed on a calendar year basis for the year in which the assessment is made. The percentage of participation is not based on the year in which the catastrophic event occurred, except for an assessment made during that year. Net direct premiums must be determined as provided under § 5.4001(a)(2)(N) of this title (relating to Plan of Operation).
(c) The participating members of the association must participate in insured losses and operating expenses of the association, in excess of premium and other revenue, in the proportions required by Insurance Code § 2210.052 and as depicted in subsection (e) of this section. A participating member is entitled to receive credit for insurance voluntarily written in the catastrophe area, as provided in Insurance Code § 2210.052.
(d) If at the time of an assessment the department has not furnished to the association information necessary to compute a member's participation during the preceding calendar year, then each member's participation must be based upon information furnished to the association from the last calendar year for which such information is available. When the association receives the necessary information from the department, the association must reassess or refund to each participating member the amounts necessary to properly reflect the member's participation.
(e) The Figure: 28 TAC § 5.4162(e) graphically depicts the Texas Windstorm Insurance Association Procedure For Calculating Member Assessment Percentages Including Credit For Voluntary Writings. All premiums are for the most recent preceding calendar year ending December 31, as furnished by the department.
(f) The department will furnish to the association the amount of net direct premiums of each member company written on property in this state and the aggregate net direct premiums written on property in this state by all member companies during the preceding calendar year as reported by member companies to the department.
(g) Within a reasonable time after receiving the information described in subsection (f) of this section from the department, the association must notify each member company, in writing, by certified mail, of the following:
(h) Within a reasonable period of time after sending the notice described in subsection (g) of this section, the association must determine the percentage of participation for each member company in the manner provided in this section and must notify each member company of its percentage of participation, in writing, by certified mail. The notice must state that the notice and contents are an act, ruling, or decision of the association insofar as the mathematical determination of the percentage of participation is concerned and that the member company to whom the notice is given is entitled to appeal not later than the 30th day after the date shown on the notice in accordance with Insurance Code § 2210.551.
(i) In the notices required under subsections (g) and (h) of this section, the association must disclose to its members that the resulting participation percentages will be used for any assessments for reinsurance in excess of the association's statutory minimum funding level for the calendar year that may be required under Insurance Code § 2210.453(d).