NU Online News Service, July 21, 12:31 p.m. EDT
The Texas Department of Insurance (TDI) ended a claims dispute with the state's residual insurers, agreeing to settle claims with interest payments for more than 700 customers.
The TDI settled its dispute over Hurricane Ike and Dolly claims going back to 2008 with the Texas Windstorm Insurance Association (TWIA) and Texas FAIR Plan Association (TFPA).
Under the agreement, dated July 15, neither TWIA nor TFPA admit to violation of regulations that the claims for 707 individuals were not settled in a timely manner. In return, both residual markets will pay an additional sum of 18 percent interest to the policyholders after the date when the claim was suppose to be paid.
The payment will be made in the form of credit on the current premium or renewal premium. A policyholder will receive a check if they cannot receive a credit.
Under the agreement, TWIA and TFPA will implement adjuster and examiner training and issue clarifications in the claims manual concerning prompt payment.
The insurers will also make technology upgrades and claim-process changes to improve tracking, follow-up and compliance.
First reported by The Houston Chronicle, the paper says an attorney for a group of policyholders says he is concerned about some aspects of the settlement concerning lifted shingles and is hopeful there will be proper follow-through. He also says the TDI does not have the proper resources to do the follow-up needed and the issues were uncovered through private resources.
He also suggests the agreement could have an impact on private insurers who received similar complaints.
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