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.
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