January 26, 2005

Austin American-Statesman

Lapham: Credit scoring isn't fair and doesn't work – so let's ban it

"Regardless of whether credit scoring is proven to predict losses, it should be banned because of what the insurance department's report did find. It determined that insurance credit scoring disproportionately affects minorities and moderate income Texans." Full editorial.

January 4, 2005

Fort Worth Star Telegram

"The study, which looked at the insurance industry's use of personal credit history in rate making, indicates that customers with poor credit are more likely to file claims.

But black, Hispanic, young and low- and moderate-income policyholders tend to have worse credit scores than white, Asian, older and high-income policyholders, according to a department summary of the report." Full article.

Dallas Morning News

A sweeping state study has found that Texans with bad credit histories tend to file more insurance claims. But it also shows that blacks and Hispanics are disproportionately more likely to be hit with higher premiums because of low credit scores. Full article.

TDI

"Preliminary findings indicate a strong relationship between credit scores and claims experience. Poor credit scores are associated with increased claims activity. Furthermore, the study found that Black, Hispanic, young, and low-to-moderate income policyholders tend to have worse credit scores than White, Asian, older, and high income policyholders." Full article.

August 8, 2004

CEJ

Consumer Group Supports Ban on Insurance Credit Scoring at Grand Rapids Public Hearing - CEJ Testifies That Lower Rates, Greater Fairness Will Result. Full report

June 15, 2004

FTC

"Request for public comments: The Commission is seeking public comment to aid staff in preparing a study on the effects of credit scores and credit-based insurance scores on the price and availability of mortgages, auto loans, credit cards, insurance, and other financial products. The Fair and Accurate Credit Transactions Act (FACTA), which was enacted in December 2003, directs the FTC and the Federal Reserve Board, in cooperation with the Office of Fair Housing at the Department of Housing and Urban Development, to conduct the credit score study and also to examine whether the use of any of these tools has discriminatory impacts. The FTC is required to seek public input on the “prescribed methodology and research design” of the study. In a Federal Register notice published today, the FTC lists specific methodological questions to which commentors should respond." Complete information.

May 31, 2004

Dallas Morning News

Leading a charge on credit scoring
State regulators weigh how to restrict insurers' rate-setting method

"Homeowners and drivers – even those with good claims records – are shelling out bigger payments for insurance if they have mediocre or worse credit histories." Full article.

May 7, 2004

Michigan

Detroit News

Insurers endorse bill in Michigan House allowing credit scores in setting rates

"Woodward questioned how insurers could offer discounts to some customers while avoiding increases in base rates for all customers.

“It’s like a retailer who offers a 50 percent discount after doubling the price,” he said." Full article.

April 28, 2004

Detroit News

Credit score ban could cut insurance bills
Granholm: Practice unfairly targets minorities, poor

"But Granholm — echoing consumer advocates across the nation — said credit scores are notoriously inaccurate and discriminatory.

People with no credit history and a spotless driving record would pay a penalty, for instance. She said there’s no rational connection between credit history and insurance risk." Full article.

Governor Granholm's Press Release

March 17, 2004

Dallas Morning News

Insurance companies criticized for lack of rate cuts

"The state's own numbers show almost half of Texas homeowners have received almost no rate relief, and the average premium has dropped just four percent since lawmakers began working on insurance reform a year ago." Full story.

Insurance rates still excessive despite reform bill, groups say
AARP, others seek more regulation; industry says premiums are fair

"Texas homeowners have overpaid as much as $287 million because of excessively high insurance rates since last August, two consumer groups said Tuesday." Full story.

Home insurers' reports show rebound

"Year-end reports from leading Texas insurers showed that the homeowners insurance market rebounded in 2003 as property losses dropped significantly after two straight years of record losses caused by a massive increase in mold and water damage claims.

Released Monday by the Texas Department of Insurance, the reports showed a loss ratio of 58 percent, meaning that 58 percent of premiums collected by insurers last year were used to settle homeowner claims. That figure follows loss ratios of 108.6 percent in 2002 and 118 percent in 2001." Full story.

Homeowners' woes remain
Mold claims down, but many are still waiting for rate relief

"The billions of dollars in mold-damage claims are nearly gone, but Texas' homeowners insurance market is still struggling to pull itself out of a hole that underscored its reputation as the most expensive in the nation." Full story.

March 6, 2004

Dallas Morning News

Homeowners' woes remain
Mold claims down, but many are still waiting for rate relief

"Nine months after state lawmakers passed insurance reforms aimed at reducing rates and making it easier to obtain coverage, many homeowners are still waiting for significant rate relief while others have been forced to buy coverage through a state plan that offers minimal protection."      Full story

Two new websites launched:

www.TexasWatch.org

www.LouisianaWatch.com

January 12, 2004

Texas Department of Insurance

The Texas Department of Insurance has published a list of companies who use credit scoring in Texas. That list may be accessed through the TDI website here.

January 8, 2004

Houston Chronicle

Few like credit scoring proposal for insurance

"Previously, most companies had free reign in using credit scoring. Information submitted by insurance companies to Montemayor last year showed that some Texans have been charged up to 113 percent higher premiums because of credit scoring.". Full article.

January 1, 2004

The Daily News, Galveston

Insurers face new laws today

"From the way they use credit scores to how they decide what homes and automobiles to cover, starting today Texas insurers will have to abide by new laws meant to protect consumers." Full article.

December 22, 2003

Houston Chronicle

Broken promises
So far, homeowner insurance rate reform is a bust

"According to analysis of Texas insurance figures by a consumer watchdog group, homeowners in Harris County are paying 17 percent more for insurance than they were before the start of the Legislature. The survey by Texas Watch found similar hikes in average rates in other metropolitan areas across the state." Full article.

November 11, 2003

Dallas Morning News

Insurance chief sets 'credit scoring' rules

"New rules regulating insurance companies' use of their customers' credit histories were approved Monday by the insurance commissioner. But he stopped short of setting a limit on how much extra those with poor credit can be charged." Full story.

Houston Chronicle

Poor credit can still raise insurance rates -- for now

"Consumers' bad credit histories can still be used against them in the form of significantly higher rates charged by insurance companies under rules adopted Monday by Texas Insurance Commissioner Jose Montemayor." Full story.

October 23, 2003

WFAA.com

Law aims to protect consumers against 'credit scoring'

"Stories like Lapham's are the reason many lawmakers tried to make it illegal for insurance companies to increase rates because of credit histories. That effort failed, but lawmakers passed a compromise that limits the way credit histories can be used." Full story 

Dallas Morning News

Insurance chief urged to limit companies' use of credit scoring

"Although the Texas House initially voted to ban credit scoring by insurers during the legislative session, industry lobbyists managed to get that prohibition pulled out of the insurance reform measure before it was finally passed by the House and Senate." Full story.

San Antonio Express News

Credit scoring bashed, defended

"State Rep. Charlie Geren, R-Fort Worth, said that although he voted against the bill regulating auto and homeowner insurance rates, the proposed rules didn't live up to the intent of the legislation that did pass." Full story.

October 15, 2003

Texas Department of Insurance

TDI Examines Credit Scoring

"AUSTIN - The controversial issue of insurance credit scoring will be under the Texas Department of Insurance microscope as the agency begins a comprehensive review process to determine the accuracy of and need for this pricing practice." Full release.

October 10, 2003

Public Hearing

The Texas Department of Insurance will hold a public hearing on Oct. 22, 2003 to address issues related to homeowners and auto insurance, and the use of credit information in certain personal lines insurance. The hearing begins at 9:30 a.m. More info.

September 23, 2003

Bankrate.com

How credit scores affect insurance rates

"An opposing view comes from Sara Lapham, who heads www.InsuranceScored.com, which claims, "There has really been no independent study of the issue. All the studies and the numbers come from insurers or the vendors of the scores. Its hard to trust them because all of these companies have a vested interest in seeing (insurance scoring) continue." Full article.

Dallas Morning News

State Farm appeals rate cut to district court

"State Farm said it would raise the same objections in state court that it used in its appeal to Mr. Montemayor, contending it cannot afford to lower its rates because of its "precarious" financial situation. The company has cited $1.4 billion in property losses in Texas over the last 2 ½ years, mostly resulting from mold and weather-related damage.

Attorneys for the Texas Department of Insurance have argued that the proposed rate cuts would leave State Farm with enough revenue to pay expenses and still earn a profit." Full story.

September 14, 2003

Dallas Morning News

Steven Wolens: Insurance commissioner threatens lawmakers' meager reforms

"The commissioner recently proposed a rule that effectively repeals an agreement made with Senate Democrats that would have set a cap on the amount that rates could differ due to credit scores. Under the commissioner's proposal, a homeowner who lived next to a fire station but had bad credit could pay higher rates than someone who lived miles away from a fire hydrant but had good credit." Full editorial.

September 13, 2003

Austin American-Statesman

Insurers must cut rates, official says
Insurance commissioner affirms ordered reductions for Farmers, State Farm

"Rejecting arguments the companies made at appeals hearings two weeks ago that the cuts would harm them financially, Montemayor refused to reduce the size of a 17.5 percent cut that the Texas Department of Insurance ordered for Farmers Insurance Group and a 12 percent cut ordered for State Farm Insurance Cos." Full article.

September 10, 2003

Consumer Group Uncovers False Rebate Claims By Insurance Department

"Austin, TX -- The Center for Economic Justice (CEJ) today criticized the Insurance Department for capitulating to insurance companies and cutting the already low rate rollbacks for homeowners in half. "The promised refunds in August 2004 are illusory," said CEJ’s President D.J. Powers. "It is a virtual certainty that consumers will never see the rebates promised by the Department" Full press release.

September 6, 2003

Dallas Morning News

Allstate to cut home rates 10.1% and issue refunds

"The people won't see the full amount of the rate reduction immediately, and the company will get to hang on to that money in the meantime," said Rob Schneider of Consumers Union." Full story.

Austin American-Statesman

Allstate relents, rolls back rates
The state's No. 2 also will send refunds to customers next summer

"For Allstate's 600,000 customers in Texas, average rates will drop about $116 a year, starting with policies that come up for renewal Sunday. That amount includes the 1.5 percent cut the company implemented in July." Full story.

Allstate pares rates 8.7% now, may trim more
Sixth insurer to settle with state

"Robert Black, a spokesman for the Texas Department of Insurance, said Allstate consented to allow the department to review its rates in August 2004 and possibly refund or credit policyholders another 8.75 percent.

Depending on the company's financial condition at that time, further cuts could be ordered, Black said." Full story.

September 4, 2003

Austin American-Statesman

Allstate may settle with state on rates
If 2nd-largest home insurer and regulators can agree to a deal, customers will see lower prices

"Twelve insurers filed appeals of state-ordered rate cuts, but four already have abandoned their fight only two days into a schedule of appeal hearings before Insurance Commissioner José Montemayor. They include Nationwide Lloyds, one of the state's 10 largest insurers." Full story.

Ft. Worth Star-Telegram

4 insurance companies agree to rollbacks

"The four companies are among a dozen that appealed rollbacks ordered last month by the department. In all, companies representing three-fourths of the Texas homeowners' market have appealed rollback orders." Full article.

September 3, 2003

Dallas Morning News

State Farm says it can't afford rate decrease
Insurance chief hears appeal of state order to cut prices by 12%

"Representing the Texas Department of Insurance, Catherine Reyer dismissed the company's objections, saying the proposed rate cuts would leave State Farm with enough revenue to pay expenses and earn a profit." Full story.

Houston Chronicle

Rate cuts defended by Perry
Insurance firms cite revenue needs

"Gov. Rick Perry said Tuesday that he hopes insurance companies fail in their appeal of homeowners premium rate rollbacks ordered by the Texas Department of Insurance." Full story.

Austin American-Statesman 

State Farm first to defend its rates
Company, making case to Insurance Department, cites financial problems

"The Texas Department of Insurance has ordered the rate cuts, exercising its authority under a new state law that is designed to curb the nation's highest home insurance rates." Full story.

August 30, 2003

 NationalUnderwriter.com 

"U.S. Panel Okays Insurance Credit Scoring Study: Language calling for a study of credit-based insurance scoring by the Federal Trade Commission was tacked onto legislation reauthorizing the Fair Credit Reporting Act, which was approved by a Congressional panel". Link.

Houston Chronicle

Rep. Joe Nixon should be tithing

"Nixon and Farmers both say the payment had nothing to do with the fact that Nixon, chairman of the House Civil Practices Committee, was in a position to champion several bills and a constitutional amendment that will make life easier for insurance companies." Full story.

Austin American-Statesman

Insurance commissioner should stand his ground

For the past three years, homeowners' rates have gone up, often by stunning amounts, even for those who had no claims. Policyholders were infuriated, and some of them were legislators who saw their own coverage go up in price or get canceled altogether. Full editorial.

DenverPost.com

Credit report's use rankles many.

His reward: The company jacked up his rates. It had nothing to do with his insurance history but everything to do with his credit score. Full story.

August 19, 2003

Dallas Morning News

Insurers wrangle with state over rate rollbacks
Companies say they can't afford to cut homeowners premiums

"Besides the "big three" (Allstate, State Farm, Farmers) companies, others filing appeals Monday were Columbia, Consolidated, Continental, Kemper, Metropolitan, National, Nationwide and Trinity.

One company that did not appeal – USAA, the fourth largest in the state – said it will reluctantly follow the commissioner's order to trim its rates 7 percent." Full article.

Austin American-Statesman

Top insurers fight cuts in home rates
More than 70 percent of Texas homeowners will have to wait for mandated rollbacks

"We knew that there would be some companies who would be unwilling to make these cuts and provide fair rates for their policyholders without a fight," Black said. "We stand by these numbers and will wait for the hearings process to run its course." Full article.

Fort Worth Star Telegram

Home insurers appeal rollbacks

""These are more delays and games being played by the greedy insurance industry -- and the more these insurance companies stall, the longer Texas homeowners are going to have to wait before they see any reductions in their insurance premiums," said Lambe, of Texas Watch." Full article.

Houston Chronicle

Insurance against election-year outrage

"The company's continuing political success in Texas is not by accident. While public officials were rolling their eyes and pretending to distance themselves from Farmers' bad publicity last fall, they also were quietly accepting generous doses of money from the insurer." Full editorial.

August 14, 2003

Houston Chronicle

Why didn't Perry call special session on insurance?

"Texas homeowners should be leery of recent proclamations by the governor and statewide leaders that real relief from skyrocketing homeowners insurance rates is on the way." Full editorial.

August 13, 2003

Dallas Morning News

Rate Rollback: Insurers must justify their figures - or else

"State Insurance Commissioner Jose Montemayor recently ordered many insurers to roll back their premiums, and, predictably, the insurance industry has responded with tiresome warnings of dire consequences.

Indeed, few can spin a gloom-and-doom tale as creatively as a homeowners insurance company whose rates are questioned." Full editorial.

Houston Chronicle

Closed doors shroud Farmers victory
Conferees got PAC funds after last-minute change

"Fingerprints are hard to find, since the ultimate decision to side with Farmers was made behind closed doors. But several members of a House-Senate conference committee that stripped a key provision from an insurance regulatory bill -- over the objections of the bill's sponsor -- soon collected at least $10,000 from Farmers' political action committee." Full article.

August 10, 2003

Austin American-Statesman

Mold hypocrisy leaves many homeowners smoldering

"In 2001, while hearings were under way and legislation was being crafted to address mold claims, Nixon received more than $300,000 for his mold claim. Like many mold victims, his life was disrupted while his family spent a year in a crowded apartment during his mold remediation. But unlike many victims, he kept silent about the dangers of toxic mold, the cost of remediation, the stress upon his family and the urgent need to address mold contamination." Full editorial.

August 10, 2003

Houston Chronicle

Just a friendly little Texas mold claim?

"Warming up for his new leadership role in the tort war last February, Nixon offered his opinion of how the homeowners' insurance crisis had been "primarily driven by a barrage of increasingly expensive mold claims."... "Between the mid-'90s and 2001 the average mold claim cost increased from $4,000 to $22,000; and by 2001, 70 percent of all mold claims filed nationally were filed in Texas," complained the $300,000 claimant." Full article.

August 9, 2003

Houston Chronicle

Texas tells insurers to shave rates
Appeal by industry may stall homeowner savings

"But don't count on the rollbacks coming any time soon. The insurance industry already is balking and appeals could take some time." Full story.

Austin American-Statesman

Insurers ordered to slash rates

"Consumer advocate D.J. Powers said the cuts are "woefully inadequate," considering that homeowners' insurers have raised rates by $1.9 billion during the past two years even as they curtailed coverage. Powers said Texans should be getting an average decrease of 35 percent." Full story.

Putting the 'e' in e-mail

"Noting the e-mails were strong enough to warrant a good look by prosecutors, Travis County District Attorney Ronnie Earle commented: "You know what the 'e' in e-mail stands for, don't you? Evidence." Full article.

Dallas Morning News

Rollbacks ordered in homeowners' insurance
Cuts would be up to 31%; companies can appeal Texas mandate

"Representatives of consumer groups said any reduction is welcome in Texas, which has the highest insurance rates in the country, but questioned how much relief policyholders actually will see." Full story.

San Antonio Express-News

Insurance cuts are coming home

"And Texas Watch Executive Director Dan Lambe said consumers need to ensure that the cuts reflect the loss of coverage that went along with the rate increases of the past two years." Full story.

August 8, 2003

News Release - For Immediate Release Friday, August 8, 2003

For More Information Contact: 
D.J. Powers, 444-1641, cell 659-5237
Dan Lambe, 381-1111
George Kelemen, 480-2427

Consumer Advocates Respond to Department of Insurance Rate Recommendations

"Over the past two years, Texans have seen deep cuts in their homeowner's insurance coverage.  Homeowners should see deep reductions in their premiums to reflect that loss in coverage and these rate reductions do not measure up," said Dan Lambe, Executive Director of Texas Watch.  "If Texans do not see their premiums drop considerably they should be asking why.  They should be asking their legislators, the Governor and the Department of Insurance why greedy insurance companies are being allowed to keep their money." Full press release.

Texas Department of Insurance

TDI orders Texas insurers to lower rates. More.

Dallas Morning News

Editorial: Moldy Decision: Insurance payment to legislator is smelly

"And if the claim should have been paid in the normal course of business, why would three high-ranking company executives ask that it be paid and want Mr. Nixon to "be a friend of Farmers in the Legislative session"? Was it because Mr. Nixon served on a conference committee that hammered out homeowners insurance reform?" Full editorial.

Farmers officers testify about legislator's claim
2 had questioned payout; firm denies preferential treatment

"In a June 4 response to Ms. Arnold's e-mail, Jim Daues, vice president for property claims, said Mr. Hageman, lobbyist Mark Toohey and Farmers division manager Kevin Kelso "all called me about this claim and wanted Mr. Nixon to be a friend of Farmers in the legislative session." Full story.

Austin American-Statesman

Insurers testify on mold checks to Rep. Nixon

"In a February question-and-answer interview on his law firm's Web site, Nixon addressed the homeowners insurance crisis, saying it has been "primarily driven by a barrage of increasingly expensive mold claims.

"Between the mid-90s and 2001, the average mold claim cost increased from $4,000 to $22,000," Nixon said. "While some claims are legitimate, a cottage industry of mold remediators and `experts' has arisen who are unregulated and unlicensed." Full story.

August 7, 2003

Houston Chronicle

Ex-official: Favoritism at Farmers
Fired mold manager alleges secret meetings

"Farmers Insurance Group executives often gave preferential treatment to mold claims filed in Texas by friends and influential people during the homeowners insurance crisis of 2002, a former manager of the company said Wednesday." Full story.

August 6, 2003

Houston Chronicle

Consumer groups seek strict guidelines for credit scoring

"A coalition of consumer groups filed a petition Tuesday with the Texas Department of Insurance asking that strong rules be adopted to restrict the use of credit scoring in the sale of auto and homeowners insurance." Full story.

Austin American-Statesman

Mold checks to lawmaker scrutinized
Prosecutors investigate whether insurance execs approved extra payment

"Travis County District Attorney Ronnie Earle confirmed Tuesday that his office is investigating the circumstances behind insurance company e-mails about Rep. Joe Nixon's $300,000-plus claim for mold damage. The e-mails are an exchange between the national mold manager for Farmers Insurance and a company vice president for claims. One e-mail questions why Nixon, R-Houston, is to be paid an additional payment for a mold claim that the e-mail said is not covered by insurance and had been denied at lower levels of the insurance company." Full story.

Houston Chronicle

Of mold, e-mails and political hay

"Travis County District Attorney Ronnie Earle said his office is investigating Farmers' mold-related damage payments to state Rep. Joe Nixon, who earlier this year helped pass homeowners insurance regulations and major changes in civil justice law important to insurance companies." Full story.

July 26, 2003

California

"Credit scoring, Garamendi said, is a very powerful, insidious, and wrong tool to be using. "For those companies who want to use it, you will have a long fight ahead of you," he said. "I will do everything I can to prevent discrimination."" Full article.

SFGate- San Francisco Chronicle

EDITORIAL: LOST LEGISLATORS

Beyond the budget, they're AWOL on many major issues

"Do you think it's fair for an insurance company to refuse to renew your homeowners policy without cause, or to jack up your premiums on the basis of your credit score? Legislation attempting to deal with each of those issues also sank from Assembly nonvoting." Full editorial.

National

"Reauthorization of the Fair Credit Reporting Act advanced in a U.S. House subcommittee, but it picked up an amendment that calls for a study of insurers' use of credit information...

It also contains an amendment offered by Rep. Luis Gutierrez, D-Ill., that would commission a study by the Federal Trade Commission, in consultation with the Department of Housing and Urban Development, on the effects of credit scores and insurance scoring on the availability of consumer credit." Full article.

July 22, 2003

Massachusetts

The Boston Globe

Insurance chief pulls credit-scoring plan
Withdraws proposal on setting of rates

"The state insurance commissioner abruptly withdrew controversial regulations yesterday that would have allowed insurers to use customer credit scores in setting homeowner's and renter's insurance rates.

Commissioner Julianne M. Bowler also changed her position on whether current law allows insurers to charge customers with poor credit more and those with good credit less." Full article.

July 15, 2003

California

North County Times

Insurers need lesson in ethics

"In a wrongheaded move, the California Chamber of Commerce paid for a "study" to defend the insurers. The chamber paid the Berkeley-based Rosen Consulting Group to produce a July 8 report, "Potential Impact on California of a Contraction of the Residential Insurance Market." The chamber asked its consultants to presume a 10 percent contraction in the California insurance market, then used to report to lobby against the reform bills ---- though it never even tried to show that the bills actually would reduce the insurance market by 10 percent.

In other words, the chamber asked its consultants to assume what it wanted to prove, then claimed it had proved it." Full editorial.

Insurers push use of credit scoring

"Well, that data is not so hard to come by. And it does not show that disallowing an insurer to consider an applicant's credit rating will result in a decline in insurance binders being written. What it shows is that, in Maryland at least, the rates paid by insured homeowners become more uniform. They are leveled out" Full story

Garamendi acts in credit-score use

"We were very disappointed the bills were not passed," Garamendi's office said. "These were important protections for consumers. We have had a 71 percent increase in complaints by homeowners regarding insurance over the past year. There's a growing problem in the industry that needs to be addressed immediately." Full story.

July 10, 2003

California

LA Times

"A bill that would outlaw the use of consumer credit scores in deciding a customer's suitability for homeowner coverage was defeated Wednesday in the Assembly Insurance Committee at the urging of the insurance industry....several committee members disappeared before the votes, refused to vote when the roll was called or never showed up for the hearing" Full story.

July 7, 2003

Dallas Morning News

Where's the reform?
State must keep promise of lower insurance

Homeowners should be hopping mad. Just a few weeks ago, homeowners were promised that they would soon see savings of between 12 percent and 18 percent in annual homeowners insurance premiums, courtesy of the Legislature's insurance reform efforts. Insurers apparently didn't get the memo. In recent filings, many held the line on current rates, and some warned of pending rate hikes. Full story.

July 2, 2003

Dallas Morning News

Insurers say no to rate cuts

"Nine of the 10 largest homeowners insurance companies are standing pat on their current rates even though state leaders and Texas' insurance chief say that premiums of most companies are excessive and should come down." Full story.

Houston Chronicle

Farmers eases off new-policy ban
Insurer to add pool of homeowners

"This is the same strategy that Farmers used in litigation," said Rob Schneider, an Austin-based attorney for Consumers Union. "This is an implicit threat that if the department does something they don't like, Farmers will continue to make insurance availability a problem in Texas." Full article.

July 1, 2003

Dallas Morning News

Let the sun shine!

Re: "Let the Sun Shine – Stealth votes make for sneaky laws," Sunday Editorials.

The industry-backed "technical corrections" to the insurance credit-scoring regulations in Senate Bill 14 are just the latest disturbing event producing credit-scoring restrictions so riddled with loopholes they are meaningless.

Our lawmakers supported severe insurance credit-scoring restrictions in most public forums but it is what happened behind closed doors that led to restrictions that lack even the most basic of consumer protections.

Texans must have the tools necessary to confirm their interests are being served and voter review is the most basic of these, we must let the sun shine.

Sara C. Lapham, Garland

Insurers want same home rates
Largest 3 companies in Texas say premiums are justified

"Texas' three largest property insurance companies have filed proposed homeowners rates with state regulators that are identical or slightly less than the premiums they have been charging for several months." Full article.

Austin American-Statesman

"Based on preliminary information we obtained a few months ago and declining loss trends, a majority of Texas consumers will see rate decreases of between zero and 25 percent, regardless of what the insurance companies say today."

Black declined to elaborate: "I'm not gong to comment on their data or their spin at this time. I don't want to speculate until our analysis is complete." Full story.

Houston Chronicle

Insurers push limit on filings

"Allstate volunteered to adopt lower rates on all its homeowner policies by 1.5 percent, while Farmers Insurance took the same stance that State Farm did last week and said its rates should stay the same." Full article.

PERRY'S PROMISE
Up to a few state actuaries to lower homeowner rates

"Since state officials cannot lower a company's rates unless they mathematically prove the rates to be unreasonably high, Texans should not get their hopes up. Following a season in which rates doubled or tripled for many homeowners, however, if generous relief isn't forthcoming or Perry's promise will go unkept." Full editorial.

June 12, 2003

Austin American-Statesman

When it comes to insurance, Texas homeowners got taken

"With the passage of Senate Bill 14, the high -paid insurance lobbyists, lawyers and public relations firms have successfully turned a consumer crisis into an insurance welfare package." Full editorial.

June 10, 2003

Austin American-Statesman

Insurers face new scrutiny under law
Perry signs bills that target high rates, regulate mold cleanup

"In the eyes of several consumer groups, Senate Bill 14 falls short. They had pushed lawmakers to roll back rates to January 2001 levels, ban insurers from using people's credit history to help determine their insurance rates and make the insurance commissioner's rate-setting power permanent." Full story.

June 5, 2002

Texas

SB14 has been approved by both the House and Senate. The bill now goes to the Governor.

Many consumers have asked how the lawmakers managed to go from a complete ban to simply restricting the practice of insurance credit scoring. The "Story Not Told" will be available soon on the In Texas page.

A complete analysis of the credit scoring restrictions in the bill will be also available soon on the In Texas page.

**NEW!**To be notified when this site is updated, please email here. 

June 1, 2003

Austin American-Statesman

Deal would let insurers tap credit reports
Data could be used, although not solely, in setting homeowners rates

"The most controversial portion of the bill was a proposed ban on the use of credit data. House members said there was no connection between consumers' credit reports and their likelihood of filing claims.

But the Senate prevailed, allowing the use of credit information by insurers as long as it is not the only data used to set rates and it is not used to discriminate against any group." Full story.

May 30, 2003

US House of Representatives

H.R.1473 : To amend the Fair Credit Reporting Act to provide disclosures of credit-based insurance scoring information by insurers and credit reporting agencies, and for other purposes.
Sponsor: Rep Gutierrez, Luis V. [IL-4]
Committees: House Financial Services
Latest Major Action: 4/10/2003 Referred to House subcommittee. 

SEC. 2. FINDINGS AND PURPOSES.

     (a) FINDINGS- The Congress finds as follows:

(1) According to the Insurance Information Institute, 90 percent of property   insurers now use insurance credit scoring in some way in their underwriting decisions.

(2) According to Consumer Reports, 70 percent of consumer reports have some kind of error and 29 percent have at least 1 major error.

(3) Since insurance credit scores are based on credit bureau data, the accuracy of the data is essential to achieving accurate scores.

(4) No insurance credit scoring modeling company has been able to identify the exact relationship between credit characteristics and loss ratios.

(5) In January 2002, the Florida Task Force on the Use of Credit Reports in Underwriting Automobile and Homeowners Insurance concluded that the use of consumer reports has a negative impact on young people, minorities and people with low incomes.

(6) The Fair Credit Reporting Act requires that insurers disclose the specific credit criteria used to raise rates or to render a consumer ineligible for a discounted premium.

(7) Corporate research conducted by Fair, Isaac & Company found that residents of ZIP codes with high minority populations scored substantially lower than residents than residents of other ZIP codes.

May 29, 2003

Houston Chronicle

KEEPING SCORE
Stand firm on ban on credit scoring in insurance reform

"Fairness to insurance customers dictates that conferees hold fast on the credit scoring ban." Full editorial.

Austin American-Statesman

Much work still needed to fix home insurance rates

"On one point, the House bill stands out as pro-consumer: It would bar insurers from using a person's credit history in determining what premium to charge. Insurers have adopted "credit scoring" in setting individual premiums over the past decade or so and say that it leads to lower rates for many customers, not just higher rates for some." Full editorial.

May 28, 2003

Waco Tribune-Herald

"Now reforms to rein in the insurance industry are close to completion, for what they're worth. They will be worth much less if the industry manages to convince House-Senate conferees to allow insurers to continue to use credit scoring to set rates." Full editorial.

May 27, 2003

Austin

SB14 goes to Conference Committee

Alaska

Sent to Governor

SB 13, authored by Senator Kim Elton, bans the use of insurance scores for the renewal of existing policies unless the consumer grants a waiver and also requires insurers to submit their models to the Department of Insurance. SB 13 also restricts the inclusion of specific factors in a scoring model.

May 26, 2003

Austin-American Statesman

"House lawmakers last week voted to ban the use of credit information in deciding whether to cover prospective customers and how much to charge. On Saturday, they moved the ban to Feb. 1, 2004, to allow insurers time to adjust." Full article.

California

Calif. Senate Passes Ban on Use of Credit History by Insurers

"The legislation, which now moves to the Assembly would ensure that California provides the nation's strongest insurance consumer protections against the unfair practice of credit scoring insurance policyholders." Full story.

Allstate to End Use of Consumer Credit Scores in Homeowners' Insurance
Consumer Group Calls on Lawmakers to Ban Practice Throughout Insurance Industry

"Allstate Insurance Company will scrap its use of consumer credit scores in homeowners' insurance underwriting, according to an announcement by Insurance Commissioner Garamendi today." Full story.

Insurance rollback rejected by House
Another vote would ban credit history in selling policies, setting rates

"But in a surprise move, House members went against the wishes of the insurance industry by voting to ban the use of credit history in selling policies and setting premiums. Insurers have vigorously defended the practice of "credit scoring" in their business." Full story.

Austin American-Statesman

House bans using credit reports to set rates

"The Texas House on Thursday voted unanimously to ban use of credit data by insurance companies in setting rates for auto or homeowners policies.

If the ban survives negotiations with the Senate, Texas would be one of three states that outlaw the practice." Full story.

Houston Chronicle

House votes to stop use of credit histories

"Representatives cheered as they voted Thursday to ban insurance companies from using a person's credit history to make coverage decisions or set premiums." Full story.

San Antonio Express-News

Insurance credit scores targeted

"A ban on the practice of using Texans' credit records to determine their insurance rates was added Thursday to an insurance bill making its way through the Texas House." Full story.

Abilene Reporter-News

House votes to ban insurers from using credit scoring

"The Texas House, debating a bill that would overhaul how the state regulates homeowners and auto insurance rates, approved an amendment that would ban insurers from using credit history as a factor in setting insurance rates." Full story.

May 22, 2003

ANNOUNCEMENT

The Texas House of Representatives passed by unanimous vote an amendment to ban the practice of insurance credit scoring in the state of Texas for both homeowner and auto insurance

BRAVO Texas House of Representatives!!

May 22, 2003

A new home! www.InsuranceScored.com. Please update your bookmarks.

May 18, 2003

Not just credit anymore.....

"LIFT® data combines information from TeleCheck®, the world's leading check verification and guarantee company, and Teletrack®, the nation's only subprime consumer credit database. These data sources contain only information on consumer financial behavior similar to that of credit reporting companies and LIFT® data is compliant with the Fair Credit Reporting Act (FCRA). LIFT® can help protect insurers from obvious adverse risks and reduce losses through further segmentation and refinement of credit-based insurance score ranges. Convergence Data is the sole representative of this data to the insurance industry." Full press release.

"The greatest benefit of LIFT is providing additional underwriting information that is missing from the credit reporting agencies in the insurance scoring process. This is true not only when there is not enough information about an applicant to create an insurance score (no-hits and no-score thin files), but also when an individual is assigned a score and more information would change the insurance offer. In the latter instance, LIFT can provide additional information that can lead to underwriting action that will make a solid difference in how the book performs."

May 16, 2003

Abilene Reporter-News

Poll: Texans want insurance reform

"Sixty-eight percent of poll respondents want banned the practice of using a consumer’s credit history to set insurance rates. The bill lawmakers are considering only limits the use of credit scoring in setting rates." Full story.

May 1, 2003

**Updated: The Studies - University of Texas credit scoring study.

The University of Texas study that insurers say validates the use of insurance credit scoring:

The only problem with this is that the data in the study supports the argument that insurance credit scoring is redundant and unnecessary. This note:

"The insurers comprising the top 70 percent of the market (in descending order, starting with the largest companies) were then asked to provide a random sample of new or renewing automobile policies from the first quarter of 1998 (January 1, 1998 through March 31, 1998). This examination period was chosen chiefly for two reasons. First, most of the insurers from whom data were requested were not using credit scoring at that time in rate-making or underwriting decisions, which meant that premium data collected were not affected by credit history",

and these results:

"Chart 3 shows the distribution of scores for policies from the standard market insurers participating in the study. Credit scores for the standard market (mean=733.0) are significantly higher than the credit scores for the non-standard market (mean=657.7)."

Clearly demonstrate that prior to insurance credit scoring, traditional underwriting and rating factors achieved the desired results!

April 26, 2003

Louisiana

"By a vote of 27-7, the Senate passed a bill Wednesday that would outlaw the use of a person's credit history in determining a customer's auto or homeowner's insurance premiums." Full article.

April 10, 2003

Dallas Morning News

Broken Promise: Senate's insurance 'reform' a disappointment

"The first problem with the bill is that it doesn't ban credit scoring. Although the legislation does set some borders around the use of credit histories in determining premiums, those borders still are pretty porous and give insurers too much latitude." Full article.

April 4, 2003

Dallas Morning News

State Farm to stop covering current customers who move

"The decision comes as lawmakers are contemplating changes to how the state regulates homeowners insurance. The Senate approved a bill this week that would bring most homeowners and auto insurance companies under rate regulation, forcing them to seek permission from the state when they want to raise rates." Full story.

Alaska

Senator John Cowdery needs you, Alaska!

 SB 13, "An Act prohibiting discrimination in insurance rates based on credit rating or credit scoring."  The bill has been scheduled for its first hearing in the Senate.  That hearing is scheduled for:

Senate Labor & Commerce Committee, Chair Bunde
Tuesday, April 8th, 2003
1:30 PM

You may participate by going to your local Legislative Information Office, on April 8.

Anchorage - 716 West 4th Avenue
Mat-Su - 600 E Railroad Avenue
Fairbanks - 119 N. Cushman
Kenai - 145 Main Street

If you do intend to testify, and would like to contact Senator Cowdery's office beforehand, his toll free number is 1-888-269-3879.

April 3, 2003

Austin American-Statesman

Insurance bill heads to House
Senate supporters say bill, despite absence of rate rollback, will save homeowners money

"Two contentious issues emerged. The first was the absence of specific requirements in the legislation that insurers roll back rates. The second was restrictions, rather than an outright ban, on the use of credit data to set rates." Full story.

Dallas Morning News

Senate approves insurance bill
Lower costs sought; critics deride 'missed opportunity'

"Leading consumer groups ripped into the legislation as a "missed opportunity" to truly reform the market, while the insurance industry argued the new regulations will make it hard to do business in Texas." Full story.

Houston Chronicle

Senate OKs insurance reform
Bill would give state control of coverage for homeowners

"But the legislation made consumer groups unhappy because it did not roll homeowner insurance rates back to 2001 levels, and it also does not completely ban the controversial practice of credit scoring." Full story.

San Antonio Express-News

Texas Senate passes insurance reform legislation

"Shapleigh, Gallegos and Sen. Gonzalo Barrientos, D-Austin, voted against the bill. Barrientos said he was not happy that the amendments to ban credit scoring and require a rate rollback failed." Full story.

April 2, 2003

Insurance Regulation Legislation Passed by Senate

"One of the main topics of debate was the use of credit scoring. While the bill does not ban the practice outright, it does prohibit the unfair and discriminatory use of credit scoring. San Antonio Senator Leticia Van de Putte said that by mandating insurers to make their credit scoring criteria data public, it will add more sunshine on the practice." Full article.

March 31, 2003

Houston Chronicle

Betrayal
Senate should rewrite sham insurance reform bill

"The weak bill would allow unscrupulous insurers to use credit scoring to insure whom they wanted, when they wanted, at the price they wanted. Unless banned, credit scoring could result in practices little different from the outlawed red-lining based on race, income or neighborhood." Full story.

Austin American-Statesman

Debate could get heated on Senate insurance bill

"They include allowing the use of credit data to set rates as long as the information is available to consumers. Regulators would be required to decide on the maximum impact the data would have on rates. And it would be illegal for premiums to be set according to the consumer's ZIP code." Full story.

Dallas Morning News

Homeowner rates rise over new estimate

"The report from the Texas Department of Insurance indicated that premiums have jumped an average of 45 percent since 2000 – with at least some of those increases larger than necessary to offset insurance company losses and expenses" Full story.

March 26, 2003

Austin American-Statesman

11 threaten to block insurance bill
Senate Democrats say debate won't happen till issues are resolved

"The Democrats have complained about several issues, including the absence of a guarantee that rates will be rolled back. They also have pushed for limits to the use of credit data in setting insurance rates." Full story.

March 22, 2003

Dallas Morning News

Panel approves insurer changes
Bill would restore state regulation of homeowners rates

"The bill also would put restrictions on credit scoring – the practice by many companies of using a customer's credit history when selling a policy and setting rates. When weighing different factors such as a driver's history or age, the credit scoring could count no more than 50 percent in calculation of a premium." Full story.

Austin American-Statesman

Panel OKs bill to treat auto, homeowners insurers alike

"The debate over the use of credit data to set rates also was heated. Sen. Mike Jackson, R-La Porte, said that if the practice was banned, insurance companies would find some other way of using the data. The committee voted to restrict rather than ban its use." Full story.

March 14, 2003

Dallas Morning News

Homeowners rates up 38% since 2000
Some charges excessive, official says; insurers see numbers stabilizing

"The report, however, said the variations in rates can be massive because of the discounts. Just two of those discounts – credit scoring and the age of the home – produce premium differences within the same company that range from 70 percent below the base rate – for new homes and those with good credit – to 190 percent above that rate – for older homes and those with poor credit." Full story.

Austin American-Statesman

Insurers' data reveal gap in home rates
Average homeowner paid 38% more for 22% less coverage since 2000, Montemayor says.

"Likewise, while regulated companies cannot discount the premiums of homeowners with good credit, unregulated companies gave breaks of up to 40 percent to their better customers while charging those with credit problems up to 150 percent more.

"Within a single company, insureds with bad credit can pay up to nearly three times as much as an insured in the same company with excellent credit," the report states." Full story.

Houston Chronicle

Some save, others feel pinch
Insurance discounts force rate hikes on many homeowners

"AUSTIN -- Some homeowners have been slapped with insurance rate increases of up to 200 percent in recent years to make up for deep discounts given to owners of new homes and those with good credit." Full story.

San Antonio Express-News

Home policy rates up 38%

"The commissioner also told the Senate Business and Commerce Committee, which is considering bills to regulate the insurance industry, that some policyholders were handed 200 percent increases to make up for discounts given to other homeowners.

He said the age of the houses and the controversial practice of using credit scores were used to create what he called "the off-balance effect"." Full story.

Forth Worth Star-Telegram

Insurance customers pay more but get less

"The average rate increases for individual companies ranged from 22 percent to 67 percent, according to the report. But individuals may see changes of up to 200 percent because of credit scoring or other factors, the report said."

The Preliminary Report of SB 310, click here.

March 13, 2003

Kansas

Insurance Commissioner Praeger wants to hear from you. Take the insurance credit scoring poll.

March 12, 2003

San Antonio Express-News

Credit tie to insurance pondered

"But Birny Birnbaum, an economist with the Center for Economic Justice, told the committee that even if there is a correlation of credit scores to possible losses, it doesn't justify the practice.

"In aggregate, credit scoring raises premiums. So the idea that consumers benefit is just wrong," Birnbaum said. "And even if it were right, that is about the most un-American idea I've ever heard."" Full story.

Nevada

Las Vegas Sun

Vote to be called on credit reports bill

"Assembly Democrats said public outrage compelled them to suddenly pass a bill out of committee Monday that would prohibit auto insurers from using credit reports to determine insurance rates." Full story.

Use of credit reports in setting car insurance rates under scrutiny

And insurance lobbyists begrudgingly admitted Wednesday that the erroneous information on the Commerce and Labor Committee chairman's reports could make Goldwater, D-Las Vegas, pay more for car insurance. Full story.

March 10, 2003

Dallas Morning News

Poll: Texans oppose 'credit scoring'
67% want Legislature to prohibit practice by insurers, survey finds

"In the Texas Poll, released as lawmakers consider proposed restrictions on the use of credit history by insurers, about two-thirds of those surveyed – 67 percent – say they want the practice banned." Full article.

Houston Chronicle

Texans eye insurance regulation
Poll: Homeowners seeking `real reform'

"According to the poll, 67 percent of Texans also believe the state should ban insurance companies from using a homeowner's credit history to decide whether to insure that individual or adjust a premium." Full article.

March 6, 2003

Austin American-Statesman

Limits sought on auto insurers
But lawmakers don't need to fix what isn't broken, critics say

"In addition, because auto coverage is often paid by monthly installment, while homeowners pay their premiums in advance, auto insurers may also get more latitude in the use of credit data to set rates." Full story.

March 5, 2003

Dallas Morning News

Insurance deal would cut rates
Senate leaders agree on bill for 12-15% drop in home premiums

"Homeowners would see their insurance premiums drop an average of 12 to 15 percent and insurers would face new state regulation of their rates – now the highest in the nation – under a compromise proposed Tuesday by Senate leaders." Full story.

March 5, 2003

Dallas Morning News

Mold losses drop! Duh

Re: "Claims for mold tapering – Insurance officials, regulators cautiously signal easing of crisis," by Anuradha Raghunathan, Thursday Business.

Duh! I am stunned that officials with both the Texas Department of Insurance and the insurance industry make news of the fact that losses resulting from mold have subsided. Once this became an issue in 2001, insurers immediately began renewing all my customers' policies with exclusions that preclude any coverage for mold. By now, none of us have any coverage for mold and therefore there will no longer be any claims filed against them for mold. If they are filed, they are quickly denied. Problem solved.

Now I am going to hold my breath waiting for all the insurance companies I represent to announce a rate rollback, open up their companies to actually write a new policy once in a while (if clients can actually pass the credit score test) and competition (ha!) returns to the market place.

Peter S. Batjer, San Angelo

February 18, 2003

Austin American-Statesman

Senate panel scolds insurers
Lawmakers say reform bills will pass with or without cooperation from companies

"Fraser warned insurance representatives who packed the committee room that it was in their best interest to cooperate with lawmakers." Full story.

Dallas Morning News

Senators lash out at insurer
Panel tells State Farm to cooperate or face new regulations

"Key senators warned the state's largest insurer Tuesday that it better start giving truthful answers about its business practices or it will wind up with new regulations it may not like." Full story.

February 18, 2003

Dallas Morning News

House gives OK to insurance measure
Companies would have to detail, explain rates for homeowners policies

"Besides requesting current rates and projected rates for the next six months, the legislation would authorize the commissioner of insurance to obtain information from companies about use of credit in setting premiums – credit scoring – and all supporting data used by insurers to set their rates." Full story.

Austin American-Statesman

Insurance bill heads to Perry
Governor likely to sign measure on reporting homeowners' rate data

"The House gave a unanimous nod Monday to a bill that requires homeowners insurance companies to turn over massive amounts of data about their rates and rate-setting policies to state regulators." Full story.

February 13, 2003

Austin American-Statesman

Senate Democrats want rollback

"Eleven of the 12 Democrats in the state Senate are sponsoring a bill that would force homeowners insurers to roll their rates back to their Jan. 1, 2001, levels, to stop using credit information to set rates and to obtain prior approval of state regulators before setting rates.

"We're the Darth Vader of the insurance industry," said Leticia Van de Putte, D-San Antonio."  Full story.

Dallas Morning News

Residents lobby on insurance
Homeowners walk Capitol halls in support of tough regulation bills

"Consumers Union, Texas Watch and other groups touted companion bills filed in the House and Senate that would toughen state regulation of insurers, including a requirement that all rate increases be approved by the state before they can take effect." Full story.

February 12, 2003

Dallas Morning News

Insurance plan gains strength
Senate OKs measure giving an insider's look at rates on homes

"Besides requesting current rates and projected rates over the next six months, the legislation would authorize the commissioner of insurance to obtain information from companies about the use of credit in setting premiums – credit scoring – and all supporting data insurers use to set rates." Full story.

February 8, 2003

New page added: Consumer Feedback. Consumer's reactions and stories.

February 7, 2003

Dallas Morning News

Use of credit scores fraught with peril

"The industry that brought us skyrocketing insurance rates has another trick up its sleeve.

 

Insurers now claim that their using our credit histories to decide if we can get insurance is good for us.

 

Thankfully, state Rep. Steve Wolens, D-Dallas, has filed an insurance reform bill that, among other things, would ban the use of credit scoring. But the insurance industry lobby will fight it tooth and nail." Full article.

January 30, 2003

Austin American-Statesman

Two bills take aim at home insurers
Lawmakers say measures could cut home insurance costs

"Under Wolens' bill, all companies that insure autos and homes would have to get the prior approval of state regulators before raising or lowering rates. Credit data could not be used to set rates or write policies." Full article.

Houston Chronicle

Bill would lower insurance rates
Consumer groups back measure to help homeowners

"Wolens' proposal, House Bill 600, would require companies to roll their rates back to levels of Jan. 1, 2001. He said that would reduce rates by $1.9 billion, giving homeowners an average annual savings of $436." Full article.

Dallas Morning News

Lawmakers want insurance data
Bill would force companies to open their books on rates

"The measure was filed Wednesday after some companies refused to voluntarily furnish the information as the Legislature gets ready to tackle the state's long-running crisis in homeowners insurance.

"We want the insurance companies to open their books and verify that consumers are being treated fairly," said Sen. Troy Fraser, R-Horseshoe Bay, chairman of the Senate Business and Commerce Committee. "We need to know that the rates being charged for homeowners insurance are just, reasonable, adequate, not excessive and not unfairly discriminatory." Full article.

Forth Worth Star-Telegram

Bills aim to leash unruly insurance rates

"An Austin consumer group official said Wolens' proposal was the most aggressive of the various insurance overhaul proposals under consideration by lawmakers.

"This is going to put money back in consumers' pockets," said Rob Schneider, who works on insurance and financial services issues for Consumers Union." Full article.

January 27, 2003

First Credit Scoring Study Delivered to Legislature

OLYMPIA, Wash. — The Office of the Insurance Commissioner delivered a report on the impact of credit scoring on consumers to the Legislature this morning. While the results are too varied across different insurers’ situations for a clear pattern to emerge, the study found unequal effects were too common to be random events. Web Page: www.insurance.wa.gov

Study: Race, Age Have Credit Score Impact

"Insurers use of credit scores to evaluate auto insurance risks can have an unequal impact on persons who are younger, poorer and members of a racial minority group, a limited study by the Washington State Insurance Commissioner's Office has found." Full article.

January 26, 2003

Dallas Morning News

Promises to Keep
Legislators campaigned on insurance reform

"Lawmakers also must end or at least sharply restrict the use of credit scoring, an underwriting method that unfairly links insurance rates to a person's creditworthiness." Full editorial.

Forth Worth Star-Telegram

Insurance rates tough to budge

"I think most of the consumer groups ... will want to go a step farther than where we'll end up, with what I've envisioned," he said. "But what is the biggest obstacle is trying to get past the huge [insurance industry] lobby. The pitfall is that the insurance industry has never been defeated on an issue." Full article.

January 25, 2003

What insurance reform?

I, too, just received my homeowners insurance. You guessed it, another increase of $221. But now they will not renew the HO-B form (unspecified perils) but, will renew only as an HO-A (specified perils) form. In other words, less coverage for more money! What is wrong with this picture? Does this benefit the consumer? I think not! When is this going to end?

Our homeowners premiums have increased 58 percent since 2000. We were paying $1,377, and now it is $2,178 year. We built our home in 1998 and have never had a claim. Our policy increased $425 last year and now another $221 with a form that provides less coverage. Where is that insurance reform that Gov. Rick Perry and Insurance Commissioner Jose Montemayor are talking about? I have been giving Mr. Perry the benefit of the doubt because he inherited his staff from George W. Bush. You know that our insurance commissioner is appointed by the governor? So, I was hoping to see some changes in our insurance regulations, but I just read a few days ago Gov. Perry re-appointed Mr. Montemayor for his third two-year term. He's already had four years to correct these problems. How much longer does he need?

So, where and when is this insurance reform going to take place? Not only are the premiums sky high, but now the insurance companies are limiting coverage by replacing the form with an HO-A. All of this is approved by the insurance commissioner. I am sure the majority of the consumers do not understand the differences between an HO-B and an HO-A form! I have not had any notification from my insurance agent, and my insurance company tells me via a letter with my new HO-A renewal policy. I am a retired licensed insurance agent, and I barely understand this! Who is protecting and educating the average consumer? How are they suppo