TWIA

Staff Sgt. James L. Harper Jr., U.S. Air Force via flickr.com/chucksimmins

A refusal to pay losses caused by Hurricane Ike has again thrust the bedraggled Texas Windstorm Insurance Association (TWIA) into the courthouse, while raising doubts over the agency’s process for resolving claims.

The city of Galveston sued TWIA Friday. It claims the agency is refusing to pay almost $14 million for damage caused by the storm, even after agency and city appraisers agreed on the cost.

League City is also suing TWIA over $3.4 million in unpaid damages it says the agency agreed it would pay.

TWIA declined to comment on the lawsuits. State Rep. Craig Eiland, D-Galveston, is representing the city of Galveston. Houston trial lawyer Steve Mostyn, who has secured millions for TWIA policyholders, is representing League City.

Photo by Bob Daemmrich, Texas Tribune

State legislators say they've reached a compromise on reform of the Texas Windstorm Insurance Association, potentially averting a second special session this summer.

Absent a deal, Gov. Rick Perry said last week that he would call lawmakers back into session to work out their differences on TWIA, which acts as an insurer of last resort on hurricane and other windstorm claims.

TWIA has become a battlefield for tort reformers and trial lawyers, after it botched hurricane claims and found itself paying hefty fees to lawyers who sued on behalf of people whose initial claims didn't cover what their policies promised.

Photo courtesy of the Texas Tribune.

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