Proposed Catastrophe Fund in Texas - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Proposed Catastrophe Fund in Texas

Some Texas legislators are seeking to require insurance companies to pay into a catastrophe fund.

The companies could then tap into the fund if they sustain big losses from a natural disaster.

The Texas Windstorm Insurance Association also would have to pay into the reinsurance fund, which is a backup policy for insurance companies.

Officials say the savings would be passed along to consumers.

Companies such as USAA and Liberty Mutual are opposed to the proposal and would prefer to keep buying reinsurance on the open market.

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