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Essential Info
- FedNat Insurance (Maison) was ordered into receivership and is ending its operations
- FedNat (Maison) policies are cancelled effective 10/27
- FedNat (Maison) sent this notice to its policyholders in Texas on 9/28
- FedNat (Maison) policyholders can get coverage with TWIA using the same exceptions that TDI created for former Weston policyholders – see below for details
- This information only affects your constituents with FedNat or Maison policies
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Greetings:
FedNat Insurance (also known as Maison in Texas), was ordered into receivership by a Florida court. FedNat policies are cancelled, including Maison policies in Texas, effective October 27, 2022.
TDI has provided data indicating approximately 526 FedNat (Maison) policyholders are located in TWIA’s designated coverage area. This is out of about 1,000 FedNat (Maison) policyholders total that are estimated to be in TWIA’s designated catastrophe area or Harris County.
FedNat (Maison) policyholders can get coverage with TWIA using the same exceptions that TDI created for former Weston policyholders. You may share the following application guidance and summary of the exceptions with your constituents impacted by FedNat.
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Information for FedNat (Maison) Policyholders
FedNat (Maison) policyholders have until 12/26 to get coverage with TWIA through their insurance agent under the following exceptions in TDI’s emergency rule.
- More time to apply: Coastal property owners cancelled by FedNat have until 12/26 to apply for a TWIA policy that gives them coverage starting 10/27. In the declination section of the policy application, insurance agents should type in “FedNat” when prompted to provide the declining carrier.
- Coverage even if a storm is on its way: Even if a storm is in the Gulf of Mexico, affected policyholders can still buy a policy and be covered for wind and hail damage. The policy must be purchased by 12/26.
- No payment to start coverage: If impacted policyholders want the special payment plan, insurance agents should enter “FedNat” as the declining carrier and select the “Weston or FedNat Receivership Payment Plan.” Policyholders will not need to make a payment for the first three months of coverage. After that, the premium will be due in equal monthly amounts. Policyholders also have the option to choose regular TWIA payment plans.
- FedNat (Maison) policyholders who use the special payment plan must apply by 12/26.
- If coverage begins before 10/27, the first payment will be due 90 days after coverage begins. Policyholders will get a bill before that with the amount due. Example: If coverage begins on October 1, payment will be due December 30.
- If coverage begins on 10/27, the first payment will be due 1/25/2023. Policyholders will get a bill before that with the amount due.
Additional Resources
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Your constituents with questions or concerns about this matter should contact TWIA Policy Services at agentservices@twia.org or (800) 231-5360. Our normal business hours are Monday-Friday, 8:00 a.m.-5:00 p.m.
Weston Insolvency Update
TWIA continues to process applications for property owners impacted by Weston’s insolvency. As of September 29, we have issued nearly 11,500 applications for which we know Weston previously insured the property owner. We continue to believe this is an undercount of the true number of applications received from former Weston policyholders due to variations between data formatting across Weston’s policy list and TWIA’s system. More information is available in this report.
Should you have any questions, please contact me at DDurden@twia.org or (512) 505-2255.
Sincerely,
David Durden
General Manager
Texas Windstorm Insurance Association
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