On June 1, 2009, Texas legislators unanimously passed HB 4409, An Act Relating to Emergency Preparation and Management (the “Act”). The Act represents a compromise between the House and Senate to improve the funding structure for the Texas Windstorm Insurance Association (“TWIA”), a state-chartered organization that provides wind and hail insurance coverage to 229,000 homeowners and businesses on the Texas Gulf Coast when insurance companies exclude it from their homeowners and other property policies. The current funding structure relies heavily on assessments on insurance companies. The new structure provides funding for a $2.5 billion storm and will rely less on assessments and more on bonds, short term state loans and TWIA policyholders.

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