GALVESTON, Texas — Putting Texas Windstorm Insurance Association into receivership would not place current policies in peril, according to a fact sheet released by the Texas Department of Insurance.
The department released a four-page statement Thursday, a day after the revelation that the windstorm association’s board scheduled an emergency meeting to discuss its financial situation and to discuss the possibility of putting the association into receivership, a process that is similar to bankruptcy.
The document — which refers to the receivership as “rehabilitation” — answers questions about the process and effects the move would have and about the association’s current financial situation. Ordering rehabilitation would strip power away from the association’s board of directors and give it to the state’s insurance commissioner, Eleanor Kitzman, in order to resolve outstanding claims.
For more on this story, visit The Galveston County Daily News.