“The governor stated to me this morning that if we were unable to reach agreement, he most assuredly would call a special session on this issue July 15,” said Sen. John Carona, R-Dallas. “It’s quite possible based on that statement that we’ll be in special session this summer.”
TWIA, the insurer of last resort for people seeking coverage for damage from hurricanes and other storms in 14 Texas counties, is running out of money. Hurricane Ike hit the pool particularly hard, and the lawsuits that followed the first round of settlements have further drained it; TWIA is still paying claims from that storm. The money is replenished by insurance companies, which then take credits against their state taxes until they’re repaid. In other words, the shortages in the fund are ultimately paid by taxpayers.
The fight over the bill, Carona said, boils down to an argument between to wealthy and powerful men: trial lawyer Steve Mostyn and Gov. Rick Perry. Mostyn has made millions from lawsuits over windstorm insurance claims. And he’s spent hundreds of thousands of those dollars on Democratic candidates opposing Perry.
“There’s no denying this is becoming a very personal matter between two very powerful individuals,” Carona said.
Lawmakers are arguing over legislation that would limit claims on the fund and damages awarded in lawsuits, and the House and Senate have been unable to find middle ground. Carona said the Senate agreed to a bill that would limit penalties in windstorm insurance claims against TWIA to 18 percent, the current limit. Perry and House legislators want the penalty limit scaled to zero. The other sticking point, Carona said, is a measure that would increase the burden of proof for ratepayers who sue TWIA, making it more difficult for homeowners who feel the insurer wronged them to collect damages.
Carona said both sides have strong arguments, but the fight has become intractable. “It’s a disappointment, but this kind of breakdown happens in the political process,” he said.
I don’t know anything about the details of this, but given recent legislative history I’m leery of any attempt to limit people’s ability to file for and collect on claims. If a special session is called for this, I would not be surprised if the call is limited to just this, much as the special session from 2009 was limited to unfinished sunset bills. Note that as with 2003, that session wasn’t called till the end of June, so don’t draw any conclusions if nothing happens in the first few days after sine die. The Chron and Trail Blazers have more.