10.27.08

HD-52: Maldonado makes insurance reform an issue

Posted in Around The State, Bad Government Republicans, Election 2008, HD-52, Uncategorized, Williamson County at 1:04 pm by wcnews

As evidenced by Diana Maldonado’s latest direct mail, (view here), Diana Maldonado is running hard on insurance reform, homeowners insurance reform in particular.  While the Texas GOP makes so much out of how high property taxes are, they never say a word about the fact that Texans pay the highest homeowners insurance rates in the country.  Via fixTexasinsurance.com:

At nearly twice the national average, Texans continue to pay the highest homeowners insurance premiums in the nation – higher than Florida, Louisiana, California, and every other state in the union. Five years after lawmakers enacted so-called insurance “reform” (SB 14), premiums remain inflated and insurance industry losses have plummeted resulting in skyrocketing industry profits.

The Republican false panacea of deregulation, this time in insurance, has again cost Texas consumers millions of dollars.  Recently the an insurance corporation was finally forced to repay the Texas consumers they overcharged, Allstate Insurance to refund Texas customers $51.6 million.

While state insurance officials insisted the settlement is fair for Allstate customers, consumer advocates accused the insurance department of “playing politics” with the “hard-earned money of Texas homeowners.”

“The agreement is a positive step for the Texas market and provides rate reductions and refunds for a substantial number of Allstate policyholders in Texas,” said state Insurance Commissioner Mike Geeslin, who signed an order affirming the settlement on Monday.

Alex Winslow of Texas Watch, a consumer group, strongly disagreed with the commissioner’s decision.

“Texans are sick and tired of half-baked settlements that allow insurance companies to pad their bottom lines without meaningful rate reductions,” Mr. Winslow said.

The all GOP Texas Supreme Court is notorious for voting in favor of inurance corporations at the expense of the consumer.  (To see how to bring balance back to the Texas Supreme Court go to www.fairandbalancedcourt.com). While outrageous insurance premiums are little discussed by Republicans, they have serious consequences on Texas homeowners. That’s likely why we never hear much on this subject from Republicans, especially from Republicans in executive positions in insurance companies that are running for elected office – (See Bryan Daniel).

Democratic candidate in HD-52 Diana Maldonado has a three-step plan to reform insurance in Texas.

1. Make the Insurance Commissioner and elected position, accountable to the people.
2. Require insurance companies to justify their rates and obtain approval before charging customers.
3. Penalize insurance companies that fail to refund identified overcharges.

Those all seem simple enough. Making insurance companies stop gouging Texans is not only the fair thing to do, but the right thing. Another example of the kind of leadership Diana Maldonado will bring to the Texas House when she represents District 52. And another reason to vote for Diana Maldonado.

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