AUSTIN, Texas - - The board of the Texas Windstorm Insurance Association decided to delay making a decision on whether the agency that provides coverage to homeowners along the coast should go into receivership.
The association, better known as TWIA has been in serious financial trouble for years. The board decided on Monday to start talks to settle pending lawsuits.
The association provides insurance to 266,000 homeowners and businesses who cannot find commercial insurance because of the risk of hurricanes or severe storms. TWIA relies on Texas insurance companies to help finance it.
But following major hurricanes and mismanagement, many question whether TWIA can provide coverage if another hurricane strikes. The Legislature overhauled the association in 2011, but the problems persist. The board has been searching for a way to become more solvent.