Windstorm and hail coverage may not be provided by the Association for risks eligible under which act?

Windstorm and hail coverage may not be provided by the Association for risks eligible under which act?

• A. Catastrophe Property Insurance Pool Act
• B. Texas Windstorm Insurance Act
• C. National Flood Insurance Act
• D. Disaster Insurance Act

Answer: (A)

Windstorm and hail coverage in Texas are handled by a specific statutory framework separate from general catastrophe pools. The Catastrophe Property Insurance Pool Act creates a pool for certain catastrophe risks, but it does not authorize windstorm and hail coverage to be provided through that pool. In other words, if a risk is eligible under the Catastrophe Property Insurance Pool Act, the association for windstorm and hail coverage does not furnish that coverage for it. The windstorm/hail protection in coastal Texas is governed by the Texas Windstorm Insurance Act, not the Catastrophe Property Insurance Pool Act. The National Flood Insurance Act concerns flood insurance, and a different act handles disaster insurance in a way that isn’t about windstorm coverage.

Windstorm and hail coverage in Texas are handled by a specific statutory framework separate from general catastrophe pools. The Catastrophe Property Insurance Pool Act creates a pool for certain catastrophe risks, but it does not authorize windstorm and hail coverage to be provided through that pool. In other words, if a risk is eligible under the Catastrophe Property Insurance Pool Act, the association for windstorm and hail coverage does not furnish that coverage for it. The windstorm/hail protection in coastal Texas is governed by the Texas Windstorm Insurance Act, not the Catastrophe Property Insurance Pool Act. The National Flood Insurance Act concerns flood insurance, and a different act handles disaster insurance in a way that isn’t about windstorm coverage.