Which organization is established to provide windstorm and hail insurance in designated coastal areas?

Which organization is established to provide windstorm and hail insurance in designated coastal areas?

• A. FAIR Plan Association
• B. TWIA
• C. Assigned Risk
• D. Residual Market

Answer: (B)

This item tests who provides windstorm and hail coverage where private insurers pull back in Texas’ coastal areas. The organization designated for this purpose is the Texas Windstorm Insurance Association. Created by state law, TWIA serves as a residual market to ensure windstorm and hail insurance is available for properties located in the designated Gulf Coast counties, pooling risk and spreading costs through premiums and assessments shared by participating insurers. The other programs aren’t the same mechanism: the FAIR Plan Association offers basic property insurance in high‑risk markets but isn’t specific to windstorm coverage; the Assigned Risk plan is the auto insurance pool for drivers who can’t obtain coverage in the voluntary market; and while the residual market is the broader concept of last‑resort coverage, TWIA is the specific organization established to handle wind and hail in these coastal areas.

This item tests who provides windstorm and hail coverage where private insurers pull back in Texas’ coastal areas. The organization designated for this purpose is the Texas Windstorm Insurance Association. Created by state law, TWIA serves as a residual market to ensure windstorm and hail insurance is available for properties located in the designated Gulf Coast counties, pooling risk and spreading costs through premiums and assessments shared by participating insurers.

The other programs aren’t the same mechanism: the FAIR Plan Association offers basic property insurance in high‑risk markets but isn’t specific to windstorm coverage; the Assigned Risk plan is the auto insurance pool for drivers who can’t obtain coverage in the voluntary market; and while the residual market is the broader concept of last‑resort coverage, TWIA is the specific organization established to handle wind and hail in these coastal areas.