TDI directs FAIR Plan to assess member companies
Earlier today, the Texas Department of Insurance announced that the Commissioner of Insurance concurred with the request from the Texas FAIR Plan Association to assess participating insurers for FAIR Plan’s 2016 deficit of $15.2 million. The Commissioner will consider whether to direct FAIR Plan to assess for its 2017 deficit after FAIR Plan files its year-end financials with TDI.
In a bulletin issued by TDI (Commissioner's Bulletin # B-0002-18), the department lays out multiple questions and answers regarding the assessment and possible recoupment. ICT is reviewing the bulletin and may provide feedback, comments, or additional questions to TDI.
As a reminder, during the December 2017 FAIR Plan Governing Committee meeting, the committee approved a member assessment of $64,632,000. This amount includes the existing December 31st deficit ($15,203,132), and the losses incurred in 2017 from Hurricane Harvey ($49,428,637). The assessment for each member company will be based on 2016 member participation percentages for the deficit that existed at 12/31/16, and the assessment for the year to date 2017 net loss after Hurricane Harvey will use 2017 member participation percentages.