The board of the insurer of last resort for property along the Texas coast has selected John Polak as the association’s interim general manager.
Polak succeeds Randy Wipf, who was named acting general manager of the Texas Windstorm Insurance Association (TWIA) in March after former General Manager Jim Oliver was ousted following a takeover of the organization by the Texas Department of Insurance.
Polak has more than 39 years of industry experience, including management positions in financial, actuarial, underwriting and claims handling. He has worked in both the public and private sectors, and has served as the head of a state agency.
As CEO of a major insurance company, he dealt directly with regulators in all 50 states. In addition, he has managed claims organizations that handled a daily claims volume in catastrophe-prone areas, and was directly involved in responses to loss events due to hurricanes Rita, Katrina, Charlie, Ivan, Jeanne and others.
TWIA was placed under TDI Administrative Oversight in late February after regulators decided that the association’s management could no longer effectively operate the state-backed insurer.
The association has been under intense scrutiny from regulators, lawmakers and even law enforcement officials, mostly due to its claims and management practices after Hurricane Ike hit the Texas coast in 2008. The insurer was hit with nearly $2 billion in claims from Hurricanes Ike and Dolly in 2008.
TDI said it will release TWIA from Administrative Oversight when it determines that such oversight is no longer necessary. Administrative oversight does not does not affect the terms of coverage and insurance policies remain in effect. Policyholders and agents should expect normal business operations, TDI said.
Legislation aimed at reforming TWIA operations has been filed in the Texas House of Representatives.
Jerry Johns, president of the insurer trade group Southwestern Insurance Information Service, said Polak appears “well qualified to lead TWIA into the future. Insurers are confident he will provide stability, leadership and a sense of mission to TWIA. We welcome him as the general manager, wish him every success and pledge our cooperation.”
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