Texas Windstorm Insurance Agency (TWIA) Now Under Administrative Oversight

Just recently, the Texas Department of Insurance has placed TWIA under administrative oversight. In a February 28, 2011 letter to TWIA, Texas Insurance Commissioner Mike Geeslin laid out a multitude of reasons why regulators believe that TWIA management is not capable of operating the organization “in a safe and sound manner.”

According to Geeslin, TWIA will remain under administrative oversight until “the Commissioner determines that TWIA has satisfied the specific requirements.” Specifically, TWIA must:

Submit all senior or executive level personnel decisions to the commissioner’s representative for prior review and approval;

Submit expenditures for prior review and approval as requested; and

Develop a plan to ensure complete, accurate and timely communications with its board of directors so that the board can meet its primary objectives.

Since Hurricane Ike struck the Texas coast in 2008, TWIA has been under intense scrutiny by regulators, legislators, and the media – mostly due to the mishandling of its claims and the problems with the claims process.