The Insurance Record - June 16, 2011

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AUSTIN—On June 03, 2011, Gov. Rick Perry announced the addition of legislation relating to the operation of the Texas Windstorm Insurance Association to the special session call.

“It is imperative for coastal Texans that
lawmakers address the operation of
TWIA during the special session, es-
pecially now that we are in the midst
of a hurricane season that’s expected to
be above average,” Gov. Perry said. “I
expect lawmakers to take quick action
on this issue to ensure that Texas trial
lawyers do not continue to put their
personal enrichment ahead of coastal
homeowners and Texas taxpayers.”
As the end of the regular session ap-
proached, Gov. Perry published this
statement: “The death of the wind-
storm insurance bill is bad for Texas tax-
payers, insurance customers and coastal
residents. By undermining negotiations
on important legislation to fix TWIA,
the Texas trial lawyers, Steve Mostyn,
and their allies in the Capitol have put
personal enrichment ahead of coast-
al homeowners and Texas taxpayers.”

Other Special Session Items The governor previously asked the Legislature to consider these additional items during the special session.

;; ;;;;;;;;;;; ;;;;;;;; ;; ;;;;;; ;;;- ters necessary for the implementation of House Bill No. 1 as passed by the 82nd Legislature, Regular Session, including measures that will allow school districts to oper- continued on page 5

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In This Issue

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WASHINGTON—David Snyder, vice president and associate general counsel of the American Insurance Association (AIA), made the following statement on the Texas Supreme Court’s Ojo decision which was issued on May 27.

The decision is in response to a certified question from the Ninth Circuit to the Texas Supreme Court. The Court concluded that Texas law does not prohibit an insurer from using race-neutral factors in credit-scoring to price insurance.

“The Texas Supreme Court made it
clear [that] Texas law requires that fac-
tors used in credit scoring to price in-
surance be race neutral, or not based
on race.

“Texas comprehensively regulates insurance rates both to assure persons with similar risks are treated similarly and to prohibit intentional discrimination based on an individual’s race. Moreover, the Legislature has set clear standards, strong enforcement mechanisms, and significant penalties for violating these standards.