Which statement describes membership in the TX Windstorm Insurance Association?

Which statement describes membership in the TX Windstorm Insurance Association?

• A. Membership is optional for insurers
• B. All insurers authorized to transact property insurance in TX must be members
• C. Only mutual insurers may join
• D. Membership is limited to coastal counties

Answer: (B)

TWIA operates as a compulsory mechanism to provide wind and hail coverage along the Texas Gulf Coast. Any insurer that is authorized to transact property insurance in Texas must be a member of TWIA. This mandatory membership creates a shared pool funded by premiums and assessments to pay claims when windstorm losses exceed market coverage. Because of this, the statement that all insurers authorized to write property insurance in Texas must be members is the correct description of TWIA membership. The other statements are not accurate: membership isn’t optional for these insurers, it isn’t limited to mutual companies, and being a member isn’t restricted to insurers in only certain counties—the program includes insurers operating across the coastal area.

TWIA operates as a compulsory mechanism to provide wind and hail coverage along the Texas Gulf Coast. Any insurer that is authorized to transact property insurance in Texas must be a member of TWIA. This mandatory membership creates a shared pool funded by premiums and assessments to pay claims when windstorm losses exceed market coverage. Because of this, the statement that all insurers authorized to write property insurance in Texas must be members is the correct description of TWIA membership. The other statements are not accurate: membership isn’t optional for these insurers, it isn’t limited to mutual companies, and being a member isn’t restricted to insurers in only certain counties—the program includes insurers operating across the coastal area.