A formal complaint filed by the Texas Department of Insurance (TDI) accuses the Texas Windstorm Insurance Association (TWIA) of "unfair or deceptive" practices in its handling of claims arising from Hurricane Ike. A certified letter to TWIA director Jim Oliver dated August 27, 2009, orders him to respond within 20 days and sets a hearing before an administrative law judge on December 1, 2009.

In an Examiner photo from March of this year, TWIA chief Jim Oliver (at left) confronts policy holders from Bolivar protesting the way their claims were handled.

According to the TDI letter, the TWIA assertion that they only pay claims for "direct, physical loss from windstorm" places the burden on the policyholder to prove that roof damage including loose or unattached shingles were caused by the storm in question.

According to TDI numbers provided to The Examiner, as of August 31, 2009, the agency received more complaints on Hurricane Ike claims with TWIA than all other insurers combined. Of 3,297 Ike complaints filed with TDI, 1,940 were against TWIA. Of that number, nearly 62 percent have already been sustained and more than $12 million returned to consumers.

TWIA's Oliver has denied the misconduct charges and continues to express his desire to settle all claims in a prompt and equitable manner.

This is a developing story and more information will be provided as available on www.theexaminer.com and in September 11 edition of The Examiner.

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