TWIA board considers settlement on Ike claims, tables receivership issue

The board of the Texas Windstorm Association decided Monday to put off a decision about going into receivership until at least May, and will attempt to resolve millions in outstanding claims stemming from Hurricane Ike in the meantime.

At its meeting Monday, the board decided not to voluntarily enter receivership, a course resembling bankruptcy that would allow it to put a stay on lawsuits, and allow Texas Insurance Commissioner Eleanor Kitzman to come up with a plan for making the association solvent.

Several people from the coast —many from the district of Rep. Todd Hunter, R-Corpus Christi — told the board receivership would hurt homeowners and businesses in the area.

“We think it’s a bonehead idea, quite frankly,” said Foster Edwards, president and CEO of the Corpus Christi Chamber of Commerce.

More at http://www.statesman.com/news/news/twia-board-considers-lawsuit-settlement-on-ike-cla/nW4LG/ .

[font color=green]It looks that they may have scared the trial lawyers since one of the lead attorneys says they will attempt to resolve the remaining claims from Hurricane Ike. There was mention of a special assessment to insurance companies and reinsurance companies of $420 million--now it looks like the settlement value of claims is less than half of the $330 million that has been set aside in reserves. Something doesn't smell right.[/font]