PRESS ROOM

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• Press releases
• Perception studies
• Press kit

STARTING
AN AGENCY

• What to do first
• About IIAT
• Join IIAT
• IIAT Services
• Appointment guide
• Licensing materials
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GOVERNMENT

• Texas Legislature
• Wind Pool (TWIA)
• Federal issues
• IMPACT/InsurPac
• Resources

1. TWIA Funding Solution

Providing adequate funding for the Texas Windstorm Insurance Association (TWIA) continues to be IIAT’s top legislative issue for 2009 with a continued focus on the six Principles of Windstorm Loss Funding set out in 2006 and reaffirmed by the Windstorm Task Force in 2008. IIAT’s position states that:

• Changes should encourage writing in Tier 1 coastal counties by the voluntary market.
• Bonds are an appropriate means of funding windstorm losses.
• All insurance companies writing in Texas should share in the cost of TWIA claims.
• These companies should be able to recoup excess TWIA losses over a period of time.
• All Texans have a stake in the coastal economy and should bear some costs.
• Strict enforcement of building codes is critical.

Correcting the TWIA funding issue has even greater importance after the 2008 storm season. With TWIA reserves exhausted, re-capitalization of the Catastrophe Reserve Trust Fund (CRTF), along with other recommendations, is critical to a healthy insurance marketplace.

2. Business Margins Tax

IIAT believes there should be meaningful reduction in the business margins tax which has produced substantial increases to IIAT’s larger members. Action is required to reduce the tax burden on IIAT members and the businesses they insure. The National Federation of Independent Business (NFIB) has proposed several changes to the margins tax. IIAT supports these proposed changes:

• Raise the small-business exemption from $300,000 to a minimum of $1 million;
• Require a super-majority vote of the Legislature before the margins tax rate can be increased;
• Lower the margins tax rate by 50 percent for businesses with under $20 million in gross receipts;
• Allow deductions in their cost of employment for all contract labor used by Texas firms; and
• Limit the tax increase under the margins tax for small businesses to no more than 100 percent increase over their normal historic high under the state’s old franchise tax.

IIAT will work to assure its members and their customers are taxed fairly and proportionately with other businesses in Texas.

3. TDI Sunset