NU Online News Service, March 14, 1:35 p.m. EST
Texas State Rep. Larry Taylor has filed a bill meant to reform the Texas Windstorm Insurance Association (TWIA).
The Republican House member from Friendswood, Texas said the bill is in response to "management deficiencies, litigation abuses and the recent administrative oversight of TWIA."
The Texas Department of Insurance (TDI) this month placed TWIA under administrative oversight. TDI said its decision was based in part on information provided to it that suggests an outside claims adjuster was paid for work that was never done.
Mr. Taylor's bill, HB 2818, will require TWIA to be more transparent and provide discounts for buildings that meet certain building codes. Provisions in the bill also require an arbitration process for harder to settle claims.
"In light of the budgetary crisis that confronts the Texas Legislature, all aspects surrounding the payout of hundreds of millions of dollars in insurance losses must be scrutinized if Texas policymakers are to make sound fiscal decisions going forward," Mr. Taylor said.
Mr. Taylor caused a stir in the state last year when he asked TWIA for financial documents related to a settlement of slab claims.
A plaintiffs' attorney attempted to block the request with a temporary injunction, which was lifted by a state judge.
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