The Texas Legislature recently passed several new laws that impact the Texas FAIR Plan Association (TFPA). We want to keep you informed about how these changes may affect your work with TFPA and your clients.
Over the coming months, TFPA will update our systems, processes, and resources to support the implementation of these new laws. Below is a summary of the key changes.
| Topic | What Is This Bill? | What Will This Change? |
| Exempting TWIA/TFPA from Premium and Maintenance Taxes (House Bill 2517) |
This bill exempts Texas Windstorm Insurance Association (TWIA) and TFPA from state premium and maintenance taxes. | No effect on agents or policyholders. |
| Requiring Carriers to Provide Written Reasons for Declinations, Cancellations, and Nonrenewals (House Bill 2067) |
This bill requires insurers to give written explanations when denying, cancelling, or non-renewing insurance policies. | TWIA and TFPA already provide written explanations related to these types of policy coverage decisions. However, updated Texas Department of Insurance (TDI) rules to implement this bill may require the Association to modify our current processes. |
| Requiring Appraisal Process (Senate Bill 458) |
This bill requires automobile and residential property policies, including TFPA policies, to contain an appraisal provision. | While there is an appraisal process available for TFPA claims, it may require modification due to rules developed by TDI to implement this law. |
We will keep you informed about changes to our processes to comply with the new laws and provide additional resources to help you transition.