06.25.08
Another Texas GOP Shceme Backfires
It appears the only thing the 2003 Texas GOP insurance reform did was reform insurance corporations profits up. And now that Wendy Davis is putting serious heat on Sen. Kim Brimer (R-Fort Worth) he’s all of the sudden going all populist on the insurance corporations, don’t buy it Fort Worth/(SD-10). But his comments from this DMN article show the fundamental problem with the conservative way of thinking.
Sen. Kim Brimer, R-Fort Worth, said insurers have recorded five straight years of solid profits since lawmakers passed a major insurance reform law in 2003 that was supposed to stabilize the market and reverse a series of record rate hikes.
“These profits indicate to me that insurance companies are not sharing with their customers the cost savings they received” under the law, Mr. Brimer said, citing in particular the three biggest insurers – State Farm, Allstate and Farmers – for increasing their rates in recent months.
“This is a fat cat on the prowl that we need to rein in,” he told Mr. Geeslin. “We are going to give you the tools you need, and you can fix the wreck.”
Yep, who would have thought that if they gave corporations free reign they’d take it? As part of the deal we work out with corporations in this country they are allowed to operate and make money as long as they adhere to certain government regulations - play by the rules. We always have to keep in mind that a corporations main goal is to make money. Nothing wrong with that but there’s a constant back-and-forth between government and corporations. Or, at least, there should be.  Take away regulations that make them “share” their profits and they won’t do it. A corporation has no sense of moral duty or honor, it’s only goal is to make money for it’s shareholders. So yes Sen. Brimer you will have to regulate the insurance corporations into “sharing”, if you need to call them tools, fine. But it’s a “prowling fat cat” mess that you, your party, and the conservative ideology created.
Sen. Juan Hinojosa, D-McAllen, said that while Texas homeowners continue to pay the highest rates in the nation, insurance companies have paid out just 43 percent of premiums over the last five years to cover losses in the state – well under the national average of 60 percent and the break-even point of about 65 percent.
“Insurance companies are not responding to the market, and homeowners are being gouged,” he said. “Something is not right.”
The only hope electing more Democrats to the legislature.