Oct 02
A Texan Tackles Insurance Profiteering
Many decades ago children, Texas did have a history of electing populist types to office, even if it was only for a term or two. Today it’s the State of Tom Delay and Ken Lay, light years removed from the notion of ‘by the people and for the people.’
A refreshing ray of light coming from this reddest of red states is the Insurance Commissioner’s recent smack-down of Allstate – Homeowner’s Division. Texans wrestling with skyrocketing homeowner insurance rates got some welcome relief as Department of Insurance officials rejected State Farm Insurance’s attempt to raise rates. TDI Commissioner Mike Geeslin went even further and ordered the company to get prior approval from the agency before raising its rates.
State Farm had planned to raise homeowner rates more than 21 percent statewide and more than 50 percent in Harris and Galveston counties. The Commissioner looked on this proposal as unjust profiteering.
Geeslin also challenged Allstate’s denial of living expense claims for Hurricane Rita evacuees last fall. He secured a temporary restraining order against the company; however, a court ruled in Allstate’s favor. Consumer advocates argue that the outcome should be a stimulus for new legislation to make the industry serve its customers better and be more accountable.
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