Recent law changes required TWIA to amend the Assumption Reinsurance Depopulation Program process. The new program, approved by the Texas Department of Insurance (TDI), will have no major milestones during hurricane season from June 1 to November 30. The policyholders’ period to review offers is now limited to no more than 60 days. Additionally, the Quota Share Reinsurance Contract and reinsurance period of the program have been removed. Apart from the timeline and reinsurance changes, the new program’s sequence and milestones closely mirror those from previous years’ programs.
Here are the next steps to participate in the program. The following outlines the information member companies must provide to TWIA and TDI to participate in the program. All documents must be submitted electronically. The document index below outlines all submission requirements.
(Click the following to access the 2021-2022 Document Index)
(Click the following to access the 2019-2020 Document Index)
An overview of the annual process may be viewed below.
Step 1: Non-Disclosure Agreement (NDA)
The first document required to participate in the Assumption Reinsurance Depopulation Program is the Non-Disclosure Agreement (NDA), which applies to both the Voluntary Market and the Assumption Reinsurance programs. In order to participate in the Assumption Reinsurance program, all member companies, including those that executed agreements for the prior Voluntary Coastal Windstorm Insurance Portal, the existing Voluntary Market program, or the Assumption Reinsurance Depopulation Program, must sign and return the new NDA. This agreement describes the terms and limitations of participating insurers’ use of the TWIA policy data used under the program. As with the Voluntary Market program, only insurers authorized to engage in the business of insurance in Texas and to write property insurance may participate. Authorized corporate officers must sign the NDA and any documents requiring signatures. If your company utilizes a Managing General Agent, signatures from an officer of the MGA cannot be accepted. Return this signed document as soon as possible, as well as the Participation Agreement outlined in Step 2, to gain access to the TWIA policy data being provided as part of the depopulation programs.
Step 2: Participation Agreement
The second document required to participate in the program is the Assumption Reinsurance Depopulation Program Participation Agreement. (There is a separate Participation Agreement insurers must complete to participate in the Voluntary Market program.) In order to participate in the Assumption Reinsurance program, all member companies, including those that executed agreements for the prior Voluntary Coastal Windstorm Insurance Portal, the existing Voluntary Market program, or the Assumption Reinsurance Depopulation Program, must sign and return the new Participation Agreement. This agreement describes the terms of insurers’ participation in the program. Return this signed document as soon as possible, as well as the Non-Disclosure Agreement outlined in Step 1, to gain access to the TWIA policy data being provided as part of the depopulation programs.
Step 3: TWIA Comparable Coverage Analysis
Member companies also need to submit certain proof of comparable coverage and premiums by October 1 to participate in the Assumption Reinsurance program.
Please submit the following to TWIA:
- Completed Comparable Coverage & Premium Certification Form; a summary of TWIA coverages is included with the form to assist in your evaluation
- Side by Side Comparison
- Copies of Member Company Policy Forms and Endorsements
Step 4: Submission Requirements to TDI
The Carrier Checklist for Submission to TDI outlines the documents to be sent directly to TDI at TWIADepopulation@tdi.texas.gov. The checklist includes UCAA Form 13P. Include the checklist form, the items on the form, and the spreadsheet, and submit by October 1.
Step 5: TWIA Submission Requirements for Credit Risk Analysis
Member companies also need to submit certain financial information by October 1 in order for the Association to perform a credit risk analysis for quota share reinsurance.
Step 6: Submission of Policies Identified for Offers
A list of policy offers must be received by March 1, 2021. All offers need to be in an Excel, .txt, .csv or similar format and able to be imported into our system (i.e., not a scanned document). The list should contain the TWIA policy number.
Step 7: Additional Company Information
TWIA will provide a link on its website to a web page designated by each participating company containing additional information for agents and policyholders. Any information provided by participating companies may vary, but we suggest it include details about company financials, agent appointments, products and coverages offered, claims processes, contact information, and any other relevant marketing information.
Questions
For any questions regarding depopulation, email us at depop@twia.org or direct inquiries to the Texas Department of Insurance at TWIADepopulation@tdi.texas.gov.
