An agenda posted recently by the Texas Windstorm Insurance Association for its meeting on March 25, 2013, in Austin, Texas shows that the state-chartered insurer will at least be considering options consistent with those of insurers who are insolvent or whose solvency is threatened. Item 2A of the agenda reads: “Review options for addressing the current financial condition of the Association and alternatives including supervision, conservation and rehabilitation in receivership”
Several points worth noting before I head off to a meeting:
1. This does not mean that TWIA is insolvent. It does suggest, however, that its board is taking seriously the financial straits in which the insurer now lies.
2. One has to assume this mention of conservation and rehabilitation in receivership was not done casually. Its authors must understand that, however responsible it may be to consider these very options, just saying it in a public document has significant repercussions.
[Update: 3/21/2013. The Corpus Christi Caller, which seems to be the only Texas newspaper not asleep at the switch on this issue, has a story today discussing this matter and reaction among some on the coast.]