INSURANCE:

Reforms target life insurance
San Antonio Express-News 02/12/03

The Texas Department of Insurance has recommended an overhaul of small life insurance that practically would wipe out insurance policies under $2,000 and create penalties for insurance companies that don't adequately try to track down beneficiaries.

Sen. Rodney Ellis, D-Houston - the head of the Senate Finance Committee, which instigated the investigations - is expected to introduce legislation this week pushing the recommendations.
His bill also likely would go further and require insurance companies to raise the payout values of policies once a consumer meets premium caps.

Advocate Rob Schneider of the Consumers Union argues that most Texans will be willing to pay a bit more today for cheaper total coverage.

"It's difficult to justify to people that they should pay more than the face value of coverage," Schneider said.

Bill to overhaul insurance backed
The Dallas Morning News 01/31/03

AUSTIN - Moving quickly to lay the groundwork for an overhaul of insurance regulation in Texas, a Senate panel on Thursday approved a measure that would compel insurers to open their books on rates they charge and reveal how they arrived at them.

The measure by Sen. Troy Fraser, R-Horseshoe Bay, is aimed at giving lawmakers a better idea of how much homeowner premiums have jumped across the state and whether the increases have been justified.

After approving the rate-disclosure bill, the committee heard testimony on a measure by Sen. Mike Jackson, R-La Porte, that would establish a new system for regulation of auto and homeowners insurance rates.

Under the Senate proposal, all insurers would have to file rate changes with the Texas Department of Insurance, which would have up to 60 days to review the premiums and make sure they are not excessive.

Among those testifying was Rob Schneider of Consumers Union, who argued that Mr. Jackson's "file-and-use" system would not give consumers enough protection. Consumers Union is supporting a measure by Rep. Steve Wolens, D-Dallas, that would require prior approval of all rate increases.

Lawmakers to take up insurance reform
The Associated Press State & Local Wire 01/30/02

A key state lawmaker has taken what he says will be the first step in reforming the Texas homeowners insurance market, which has seen large rate increases and companies stop writing new policies since lawmakers met last in 2001.

State Sen. Troy Fraser, R-Horseshoe Bay, said the Senate Business and Commerce Committee that he chairs will take up a bill Thursday that will require insurance companies to immediately file with the state regulators their current rates and their projected rates for the next six months.

The bill also allows the department to seek all data the companies use to determine premiums. Fraser filed the legislation Wednesday. He said all nine members of the committee have signed onto it, all but assuring the bill's passage to the full Senate.

"This is an aggressive, consumer oriented bill," said Rob Schneider, a senior attorney with Consumers Union. "It is the kind of tough approach that Texans need so they know they will be treated fairly by insurance companies and they will see the rates they pay go down."

Homeowners insurance bills filed
The Associated Press State & Local Wire 01/29/03

The move to reform the homeowners insurance market, which has seen large rate increases and companies stop writing new policies, kicked into high gear at the Capitol on Wednesday.

State Sen. Troy Fraser, R-Horseshoe Bay, filed legislation that would require insurance companies to immediately file with the Texas Department of Insurance their current and projected homeowners rates for the next six months. It also allows the department to seek all data the companies use to determine premiums.

Meanwhile, state Rep. Steve Wolens, D-Dallas, filed a bill he said will save Texans buying homeowners insurance an average of $436 a year.
The bill would roll back rates to 2001 levels, force companies to get approval before they increase their rates, make insurance information public, prohibit credit scoring and "assure that companies don't just stick with us in good times," Wolens said.

Consumer advocates applauded Wolens' legislation.

Private donors fund inaugural
The Houston Chronicle 01/21/03

AUSTIN - Under a huge canopy streamed in red, white and blue over the southern steps of the Texas Capitol, Gov. Rick Perry and Lt. Gov.-elect David Dewhurst will be sworn into office today.

The 10,000 tickets for tonight's inaugural ball are all sold. But plenty of tickets remain for the $ 5 barbecue lunch after Perry and Dewhurst swear on Sam Houston's Bible.

In all, the daylong event will cost $ 1.5 million...

Sixteen companies and individuals made $ 25,000 "Silver"-level contributions, including Houston-based Reliant Energy; TXU, a Dallas-based electrical provider; and the Houston-based law firms of Fulbright & Jaworski and Vinson & Elkins. Forty-one others gave $ 10,000 each.

"It's the people who have their dog in the fight, and they're going to be (in the Legislature) trying to get their special piece of the pie," said Reggie James, director of Consumers Union's southwest regional office in Austin.

"These people are doing this to buy influence, and I think if some of us on the public side had been a little clever we could've gotten all of the hundreds of kids who won't get health care to kick up a few dollars," he said.

Consumer group knocks proposals on homeowners insurance reform
The Houston Chronicle 01/18/03

AUSTIN - Lawmakers should reinstate the homeowners insurance rate regulatory system that has been undermined by the industry, a leading consumer group said Friday.

Rob Schneider, a policy analyst with Consumers Union Southwest Regional Office, said the "file and use" system proposed by some key lawmakers would provide insufficient oversight of rates. One legislative proposal calls for companies to file their rates with the insurance commissioner, who could freeze the rates if he thinks they are out of line. Schneider said he is concerned that the commissioner would not have the resources to determine in a timely manner whether the rates were set fairly. He cited the fact that the commissioner has taken more than one year to investigate the rates set by several major carriers.

Consumer group knocks proposals on homeowners insurance reform
The Houston Chronicle 01/18/03

AUSTIN - Lawmakers should reinstate the homeowners insurance rate regulatory system that has been undermined by the industry, a leading consumer group said Friday.

Rob Schneider, a policy analyst with Consumers Union Southwest Regional Office, said the "file and use" system proposed by some key lawmakers would provide insufficient oversight of rates. One legislative proposal calls for companies to file their rates with the insurance commissioner, who could freeze the rates if he thinks they are out of line. Schneider said he is concerned that the commissioner would not have the resources to determine in a timely manner whether the rates were set fairly. He cited the fact that the commissioner has taken more than one year to investigate the rates set by several major carriers.

Lisa McGiffert, a Consumers Union health care analyst, said that the public should have more access to information about doctors who have been the subject of complaints and lawsuits.

Reggie James, director of Consumers Union, was critical of a proposal by some lawmakers to require low-income families to reapply for health benefits every month and to reduce the number of pregnant women eligible for Medicaid.

"They're taking us back to the dark ages," said James.

Consumers Union skeptical about insurance reforms
The Associated Press State & Local Wire 01/17/03

A leading consumer group on Friday cast a skeptical eye on promises to reform the homeowner's insurance market in Texas.

"I think there's a real question about whether we're going to see real reform that's in the interest of consumers this session," said Rob Schneider, staff attorney for Consumers Union.

The state Senate passed its first bill of the legislative session Tuesday, putting companies that write homeowners insurance on notice to tell regulators what they charge and how they set their rates.

Although the bill initially required lawmakers to sign a confidentiality agreement before the data would be released to them, an amendment weakened that provision. The insurance commissioner may, but will not be required to, ask for that pledge. Consumer groups succeeded in pushing for another amendment that protects information that previously was open. Only the new, more extensive data will be kept private.

In addition, despite the confidentiality, insurers that are found to have violated state law would not be immune from prosecution.

"We're comfortable with the bill," said Rob Schneider, senior staff attorney with Consumers Union. "The insurance crisis is not only about rates. It is also a crisis of confidence. The way to restore trust is to ensure the information agencies have is transparent."