NU Online News Service, July 21, 12:31 p.m.EDT

The Texas Department of Insurance (TDI) ended a claims disputewith the state's residual insurers, agreeing to settle claims withinterest payments for more than 700 customers.

The TDI settled its dispute over Hurricane Ike and Dolly claimsgoing back to 2008 with the Texas Windstorm Insurance Association(TWIA) and Texas FAIR Plan Association (TFPA).

Under the agreement, dated July 15, neither TWIA nor TFPA admitto violation of regulations that the claims for 707 individualswere not settled in a timely manner. In return, both residualmarkets will pay an additional sum of 18 percent interest to thepolicyholders after the date when the claim was suppose to bepaid.

The payment will be made in the form of credit on the currentpremium or renewal premium. A policyholder will receive a check ifthey cannot receive a credit.

Under the agreement, TWIA and TFPA will implement adjuster andexaminer training and issue clarifications in the claims manualconcerning prompt payment.

The insurers will also make technology upgrades andclaim-process changes to improve tracking, follow-up andcompliance.

First reported by The Houston Chronicle, the papersays an attorney for a group of policyholders says he is concernedabout some aspects of the settlement concerning lifted shingles andis hopeful there will be proper follow-through. He also says theTDI does not have the proper resources to do the follow-up neededand the issues were uncovered through private resources.

He also suggests the agreement could have an impact on privateinsurers who received similar complaints.