The Texas Department of Insurance said that allowing the Texas Windstorm Insurance Association to continue operating would be hazardous to the public and the last resort insurer’s policyholders.

The Texas Department (TDI) has placed TWIA under administrative oversight, a decision TDI said is based on information provided to it that suggests an outside claims adjuster was paid for work that was never done. TWIA paid claims based on this adjuster’s recommendations and failed to report the suspected fraud to TDI when it became aware of the situation, Insurance Commissioner Mike Geeslin noted in a letter to Jim Oliver, general manager of TWIA.

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