TX SB2571

Creates a new funding framework (Subchapter B-2) for Texas Windstorm Insurance Association (TWIA) excess losses and operating expenses incurred after December 31, 2025, while maintaining existing rules (Subchapter B-1) for losses incurred before January 1, 2026

Authorizes member assessments capped at 33% of TWIA's probable maximum loss per catastrophe year to cover losses not paid from reserves or trust funds, with members prohibited from recouping assessments through premium surcharges or tax credits

Allows issuance of Class 1 public securities up to 33% of probable maximum loss per catastrophe year, with repayment required within 14 years and securities to be paid through net premium revenue or catastrophe area premium surcharges

Eliminates Class 2 and Class 3 public securities as funding mechanisms effective January 1, 2026, consolidating the funding structure to rely on Class 1 public securities only

Permits association members to purchase reinsurance to cover their potential assessment liability and requires the Commissioner of Insurance to adopt implementing rules by December 1, 2025