Rep. Larry Taylor has filed a bill that would, along a broad front, attack excessive legal fees and force greater transparency by the troubled Texas Windstorm Insurance Association.
House Bill 2818 is the latest in a months-long effort by the co-chair of the Joint Windstorm Insurance Legislative Oversight Board to reckon with what he said have been litigation abuses and management and administrative lapses by the quasi-state agency providing hurricane coverage for some Texas homeowners.
Taylor, R-Friendswood, has lately been joined in his scrutiny of the agency. The Travis County District Attorney’s Office recently began an investigation into allegations of fraud in the Hurricane Ike claims process. The Texas Department of Insurance assumed control of the agency, expressing a lack of faith in its commitment to its policyholders.
Texas Watchdog investigations into TWIA revealed that several state legislators had profited handsomely from the windstorm association settlements, and that two former top claims employees had received severance packages totaling $160,000 plus a pickup truck. Under fire, the TWIA board sacked its general manager, Jim Oliver, last month, pending a final vote in a couple weeks.
TAYLOR
Taylor’s own insurance company made hundreds of thousands of dollars selling policies from the insurer, which raised questions of a conflict of interest that Taylor has vigorously denied and labeled political. Taylor has said the fees, set by the state, are high because of inefficiencies at TWIA.
Taylor said his bill was necessary to restore credibility to the windstorm association and insure that its trust fund is solvent.
“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,” Taylor said in a statement announcing the filing of HB 2818.
House Bill 2818 is the latest in a months-long effort by the co-chair of the Joint Windstorm Insurance Legislative Oversight Board to reckon with what he said have been litigation abuses and management and administrative lapses by the quasi-state agency providing hurricane coverage for some Texas homeowners.
Taylor, R-Friendswood, has lately been joined in his scrutiny of the agency. The Travis County District Attorney’s Office recently began an investigation into allegations of fraud in the Hurricane Ike claims process. The Texas Department of Insurance assumed control of the agency, expressing a lack of faith in its commitment to its policyholders.
Texas Watchdog investigations into TWIA revealed that several state legislators had profited handsomely from the windstorm association settlements, and that two former top claims employees had received severance packages totaling $160,000 plus a pickup truck. Under fire, the TWIA board sacked its general manager, Jim Oliver, last month, pending a final vote in a couple weeks.
TAYLORTaylor’s own insurance company made hundreds of thousands of dollars selling policies from the insurer, which raised questions of a conflict of interest that Taylor has vigorously denied and labeled political. Taylor has said the fees, set by the state, are high because of inefficiencies at TWIA.
Taylor said his bill was necessary to restore credibility to the windstorm association and insure that its trust fund is solvent.
“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,” Taylor said in a statement announcing the filing of HB 2818.
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Contact Mark Lisheron at 512-299-2318 or mark@texaswatchdog.org.
Keep up with all the latest news from Texas Watchdog. Fan our page on Facebook, follow us on Twitter and Scribd, and fan us on YouTube. Join our network on de.licio.us, and put our RSS feed in your newsreader. We're also on MySpace, Digg, FriendFeed, NewsVine and tumblr.
Photo of money by flickr user athrasher, used via a Creative Commons license.
Contact Mark Lisheron at 512-299-2318 or mark@texaswatchdog.org.
Keep up with all the latest news from Texas Watchdog. Fan our page on Facebook, follow us on Twitter and Scribd, and fan us on YouTube. Join our network on de.licio.us, and put our RSS feed in your newsreader. We're also on MySpace, Digg, FriendFeed, NewsVine and tumblr.
Photo of money by flickr user athrasher, used via a Creative Commons license.
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