The TWIA Board of Directors will meet at the Omni Hotel in Corpus Christi on Tuesday, December 10, 2024, at 9:00 a.m. The meeting agenda is available.

Among the items on the agenda for this meeting are:

• A vote by the Board on the Association’s 2025 budget.
• An update by TWIA’s actuarial staff on catastrophe funding.
• Determination of the 2025 internal audit plan.
• The annual performance evaluation of the General Manager in closed session.

The Board will not be considering changes in TWIA rates at this meeting.

All meetings of the TWIA Board of Directors and its committees are open to the public.

The public may attend and make public comment in person at the Omni Hotel in Corpus Christi or virtually via Zoom. Members of the Board and staff may participate in the meeting in person or virtually. The meeting will also be livestreamed on YouTube.

Public Participation and Comment

TWIA is providing three methods for stakeholders to provide public comment to the Board of Directors:

1) Written Public Comment

Members of the public are invited to submit written comments via email at PublicComment@TWIA.org. Interested parties are encouraged to submit comments by noon on Friday, December 6, so the Board can receive and review them before the December 10 meeting. TWIA staff will provide the Board with all written comments regardless of when they are received.

Written comments submitted to TWIA are subject to the Texas Public Information Act. TWIA will post public comments received, with personally identifiable information redacted, on TWIA's website.

2) Virtual Verbal Public Comment via Zoom

Individuals wishing to make verbal public comment remotely during the meeting must register and log into the meeting via Zoom on a computer, tablet, smartphone, or telephone. Please make sure you have the latest version of Zoom on your device before joining the meeting. Learn how to update to the latest version of Zoom here.

• You can register to attend the meeting via Zoom.
• After registering for the meeting, you will receive a confirmation email with details on how to join the meeting from your preferred device.
• This method of comment is audio only (no video).

3) In-Person Verbal Public Comment at the Omni Hotel in Corpus Christi

Individuals wishing to make in-person verbal public comment must attend the meeting at the Omni Hotel in Corpus Christi

. TWIA staff will facilitate the public comment process.

The full address of the meeting location is:
Omni Hotel Corpus Christi
900 N Shoreline Blvd.
Corpus Christi, TX 78401

The meeting materials and archived recording for the Board meeting will be added to our Meeting Library after the meeting.

DWC Releases Biennial Report to the 89th Legislature

The Division of Workers’ Compensation (DWC) has released its biennial report to the 89th Texas Legislature. The report provides an update on the Texas workers’ compensation system and includes legislative recommendations aimed at improving the state's ability to regulate the system effectively and efficiently.

Key Trends and Findings

• Over the past decade, Texas workers’ compensation insurance has remained profitable, with a projected combined ratio of 94% in 2023 and an average return on net worth of 9.5%.
• Workers’ compensation rates have decreased by 81% since 2003, and participation in the system has grown, with 76% of private employers now participating. Non-subscriber rates have fallen to their lowest levels in nearly a decade.
  
  
• Health care costs have declined by $338 million since 2012, and the number of designated doctors has increased by 38% since April 2023.

Legislative Recommendations

The report outlines two legislative recommendations for consideration during the upcoming session:

1. Allow contested case hearings (CCHs) by video conference

    

   • DWC handles approximately 4,500 CCHs annually. Allowing virtual CCHs, with the agreement of all parties, could improve access to legal representation for remote or out-of-state injured employees, expedite dispute resolution, and enhance access to medical treatment and return-to-work timelines.
     
     
   • Similar bills were proposed during the last legislative session but did not pass.
     
     
2. Remove references to the Approved Doctors List (ADL) from the Labor Code

    

   • The ADL expired on Sept. 1, 2007, but references to it remain in the Labor Code, causing confusion for system participants and health care practitioners. Removing these outdated references and making conforming changes would clarify the law.

The full report provides additional details on the state of the workers’ compensation system and opportunities for continued improvement.

DWC has adopted a rule to update and reorganize 28 Texas Administrative Code Chapter 134, Subchapter F, concerning pharmaceutical benefits.

The changes remove obsolete provisions and update references and language to be consistent with other rules. DWC also made nonsubstantive editorial and formatting updates for plain language and agency style.

Learn more on the TDI website (PDF).

The Insurance Council of Texas (ICT) staff attended the annual meeting of the National Council of Insurance Legislators (NCOIL), held Nov. 21–24 in San Antonio. The event drew approximately 380 attendees, including 77 legislators from 32 states. NCOIL serves as a forum for legislators on insurance-related committees nationwide to discuss issues across all lines of insurance and consider model laws addressing these topics.

Highlights of the Meeting

Attendees approved two model laws, both extensively debated over the past year:

• Transparency in Third-Party Litigation Funding (TPLF) Agreements:
  This model law enhances transparency in two types of litigation funding agreements:
  • Consumer funding: Provides funds to individual plaintiffs, often for vehicle accidents or other tort claims.
  • Commercial funding: Invests in more complex cases, either by funding a plaintiff’s contingent interest or acquiring a stake in litigation, often through law firms.

Key provisions of the model include:

• • Requiring disclosure of the existence of consumer funding agreements to other parties in a case.
  • Making consumer funding agreements discoverable and deeming them relevant to the proceedings.
  • Mandating disclosure of commercial funding agreements and deeming them admissible in court.
  • Prohibiting litigation funders from exercising control over a case.
  • Capping annual interest rates for consumer funding at 36%.
    
    
• “Strengthen Homes” Model Act:
  This act outlines a framework for state grant programs to fund Insurance Institute for Business & Home Safety (IBHS)-certified fortified roofs. Programs like this already exist in Alabama, Louisiana, Kentucky, and Oklahoma.
  • For states adopting grant programs, insurers would be required to offer premium discounts or rate reductions for fortified roofs, provided the discounts are actuarially justified.

Other Discussions
Three additional potential models were debated, with relevance to property and casualty (P/C) insurers:

• Use of aerial imagery by insurers.
• A “marketplace guarantee” program proposed by Airbnb for short-term rental platforms.
• Measures to address abuses in the auto glass repair market.

While none of these models were voted on, the latter two may proceed to votes at the next NCOIL meeting in April.

Texas Leadership and NCOIL Updates

The meeting marked the end of Texas Rep. and House Insurance Committee Chairman Dr. Tom Oliverson's term as NCOIL president. Additionally, Texas Rep. Dennis Paul of Houston was appointed to the NCOIL Executive Committee.

The meeting also served as the final event for Tom Considine as NCOIL CEO. He will be succeeded by NCOIL General Counsel Will Melofchik at the end of the year.

The Insurance Council of Texas (ICT) and State Farm have launched the Lock It Down! campaign to raise awareness and combat motor vehicle theft, burglary, and related crimes in Texas, particularly during the holiday season. With over 65,000 vehicle thefts and nearly 200,000 burglaries reported annually in the state, the campaign emphasizes simple, effective measures to prevent these crimes. Key preventive actions include locking doors, securing keys, and avoiding leaving valuables in vehicles. The campaign highlights the growing concern over the financial impact of vehicle theft, which saw a 10.13% increase in property crime value in Texas from 2021 to 2022.

Key Points:

1. High Vehicle Theft and Burglary Rates: In Texas, over 65,000 cars and trucks are stolen, and nearly 200,000 are burglarized annually, with unlocked doors and keys left inside being major contributors.
   
   

2. Increase in Property Crime Value: From 2021 to 2022, the value of property crime linked to motor vehicle theft in Texas rose by 10.13%, indicating a growing concern for vehicle theft and its financial impact.
   
   

3. Lock It Down! Campaign Launch: ICT and State Farm have partnered to launch the Lock It Down! campaign, providing public education and resources to help individuals protect their vehicles from theft and burglary.
   
   

4. Preventive Measures: Simple actions like locking doors, not leaving vehicles running unattended, keeping keys secure, and parking in well-lit areas can significantly reduce the risk of vehicle theft.
   
   

5. Risks of Leaving Valuables in Vehicles: Leaving valuables, especially firearms, in vehicles increases the likelihood of theft. Stolen firearms can contribute to further criminal activities, posing a serious safety threat to the community.