Posted on 26 Mar 2013 by Neilson
Board members of the Texas Windstorm Insurance Association have delayed a vote on whether to propose receivership for the troubled state insurance provider.
Meeting in Austin on Monday, board members decided to table the decision until May 21.
Faced with $2.4 billion in wind-related damage from Hurricane Ike and subsequent lawsuits against TWIA, board members suggested receivership, a process similar to bankruptcy, as a possible next step in saving the agency. Dozens of business and government leaders from along the Gulf Coast pleaded with the board on Monday to avoid the receivership process and let state legislators devise a solution.
Three bills are currently under consideration in Austin.
Concerns about the agency’s solvency and handling of claims after hurricanes Ike and Dolly led to TWIA being placed under administrative oversight by the Texas Department of Insurance and the passage of the first restructuring bill, HB 3, in 2011.
The state insurance commissioner says the Texas Windstorm Insurance Association isn't currently sustainable.
TWIA is the insurance provider of last resort for 266,000 residents along the Gulf. The association is a nonprofit, state-supervised insurer for people who can't get private property insurance in coastal areas where private insurers won’t write policies because of high risk.