The board of directors for the Texas Windstorm Insurance Association this morning hired an actuarial firm to help the board decide on a rate increase for its policyholders.
With an actuarial staff already in-house, TWIA board members called on Merlinos & Associates, a Georgia company, to act as “another set of eyes,” as it considers what, if any, rate increase is necessary.
Windstorm Insurance Association officials Thursday afternoon were trying to provide Texas Watchdog with the estimated cost of retaining the services of Merlinos. The cost of the additional study is not included in the request for proposal issued by the board in December.
The troubled quasi-state agency has already gotten advice from its own actuary calling for rate increases, objected to by Rep.Larry Taylor. Taylor, R-Friendswood, was in the forefront of a move to make major reforms in the way the Windstorm Insurance Association does business.
In a letter to Association Chairman Mike Gerik, Taylor said hiring Merlinos was redundant.
“Rather than spending policy holder monies on services the association seems already inclined to act upon, I suggest the board focus on real matters that have become the largest drain on the association's budget, that of outrageous and questionable legal bills,” Taylor wrote.
“Let me be clear, I find it unreasonable for a board to continuously seek rate increases while failing to halt out-of-control spending on defense attorneys and plaintiffs’ firms for damages on policies that should have been paid fairly and promptly from day one of the claim being filed. I believe it is incumbent upon the Board to get TWIA’s own house in order before you seek additional rate increases.”
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Contact Mark Lisheron at 512-299-2318 or mark@texaswatchdog.org or on Twitter at @marktxwatchdog.
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 feeds in your newsreader. We're also on MySpace, Digg, FriendFeed, and tumblr.
Map by NOAA.
Windstorm Insurance Association officials Thursday afternoon were trying to provide Texas Watchdog with the estimated cost of retaining the services of Merlinos. The cost of the additional study is not included in the request for proposal issued by the board in December.
The troubled quasi-state agency has already gotten advice from its own actuary calling for rate increases, objected to by Rep.Larry Taylor. Taylor, R-Friendswood, was in the forefront of a move to make major reforms in the way the Windstorm Insurance Association does business.
In a letter to Association Chairman Mike Gerik, Taylor said hiring Merlinos was redundant.
“Rather than spending policy holder monies on services the association seems already inclined to act upon, I suggest the board focus on real matters that have become the largest drain on the association's budget, that of outrageous and questionable legal bills,” Taylor wrote.
“Let me be clear, I find it unreasonable for a board to continuously seek rate increases while failing to halt out-of-control spending on defense attorneys and plaintiffs’ firms for damages on policies that should have been paid fairly and promptly from day one of the claim being filed. I believe it is incumbent upon the Board to get TWIA’s own house in order before you seek additional rate increases.”
***
Contact Mark Lisheron at 512-299-2318 or mark@texaswatchdog.org or on Twitter at @marktxwatchdog.
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 feeds in your newsreader. We're also on MySpace, Digg, FriendFeed, and tumblr.
Map by NOAA.
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