Stand Up For The Consumer; Show State Farm The Door

[Guest guest]

Stand Up For The Consumer; Show State Farm The Door

FortBendNow - Richmond,TX,

http://www.fortbendnow.com/opinion/1308/stand-up-for-the-consumer-

show-state-farm-the-door

It is beyond belief that State Farm has filed with the Department of

Texas Insurance (TDI) to raise homeowner's rates as much as 39%

across the state. This rate increase request will be the first

challenge for the new TDI Commissioner, Mike Geeslin, and the

leadership of Texas, and they need to stand up for the consumers and

show State Farm the door.

In 2002 Texas had the highest insurance rates in the nation. After

the massive insurance reforms of the 2003 Legislation session, rates

are now twice the national average and Texas again has the highest

rates in the nation second only to Louisiana by 25%. If that isn't

bad enough, deductibles are much higher and significant coverage

such as foundation, water, sewer and mold, is now optional, at an

additional cost.

The promised reforms, of the 2003 session, were a complete and total

failure of the leadership of the state. The Insurance Commissioner

at the time, Montemayor, who is now working for an insurance

company, caved in to every request of the industry. After historic

hearings on toxic mold, he removed mold coverage without any

reduction in rates or any worthwhile measures to prevent the cause

of mold contamination. He allowed the use of credit scoring giving

the industry the right to increase rates based upon an owners credit

history. And he authorized the use of HO-A policies, which made

foundation, water, and sewer damage optional. And yet not one single

penny of rate reduction was realized by the owners in the state.

The Legislature, led by Governor Rick , wasn't much help

either. They failed to protect the homeowners by passing insurance

friendly legislation that provided absolutely no rate relief for

consumers. The Texas Attorney General at the time, Cornyn,

filed frivolous lawsuits against the insurance companies questioning

over charges in their rates. The suits were frivolous because Cornyn

never intended to, and never did, follow through on the charges

filed against the insurance industry. The present Attorney General,

Greg Abbott, has also done nothing to defend the consumers of the

state.

The insurance industry, the Texas Department of Insurance, the

Attorney Generals office, and the leadership of the State has

provided a steady stream of excuses to the homeowners of the state

while rates have doubled, tripled, and coverage has been slashed.

And now State Farm wants to raise rates as much as 39%.

It is clear the leadership of the State has absolutely no interest

in protecting the consumers of the state. The property tax relief

passed in the recent special session will be offset by the out of

control increases in insurance all while the insurance industry has

had windfall profits. And the insurance industry has now found

another excuse, " re-insurance " the insurance purchased by the

insurance companies to protect them. Never, over the last 4 years,

has the excuse of " re-insurance " been used by the industry. This is

a sure sign that in the face of windfall profits, the industry is

grasping for last excuses to justify rate increases.

Just like in 2002 as if on cue, the insurance industry has

excessively raised their rates, right before the 2006 elections. The

elected officials and candidates will again have a chance to file

frivolous lawsuits, and make empty promises on the campaign trail to

lower insurance rates.

Governor , Attorney General Abbott, and Insurance Commissioner

Mike Geeslin should stand up for the consumers and show State Farm

the door, or the voters in Texas should show the leadership the door

in November.

Cobarruvias

Houston

President, Homeowners Against Deficient Dwellings, Texas Chapter