Texans respond to insurance crisis

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http://www.dallasnews.com

Mold claim 'looters'

As a Farmers agent I sat in helpless disbelief as people in my community,

like looters after a riot, rampaged with unrelenting mold claims - many

making themselves personally wealthy. Now the piper has come home to be

paid. The drunken spree is over. Appeals to the Texas Department of

Insurance and the attorney general went unheeded. The personal injury

attorneys, fattened on the loot, want more. It's pathetic. Pass what laws

you want. Sue and serve notice. Economic reality sooner or later comes to

rest, and it's on the backs of law-abiding normal people.

Bill Brann, Corpus Christi

Insurance is a cartel

My family is one of those being jerked around by Farmers Insurance regarding

homeowners insurance. Two years ago our old policy went from $750 to $1,400.

Our agent recruited us to change to Farmers because, if we did so, we could

get reductions because we had auto insurance with Farmers.

When our rates were doubled, we tried to go with Allstate, but it was not

taking new customers.

Now Farmers is leaving, which is more than fine with me. When applying with

other companies, the first question they ask is whether we have had any

claims in the last three years! What does that have to do with anything?

Though we do not have any, why is that their business and why can they

punish anyone who uses insurance? This reminds me of an employer I once had

who told me if I used any of the two weeks' sick time, I would be looking

for another job. What good is insurance if you can't use it? If a claim is

valid, people should be able to collect without future penalty or

discrimination.

I am a believer in as little government as is humanly possible; however,

this is a cartel, just like the oil industry, and regulation is absolutely

necessary. The state of Texas has been in an insurance crisis for several

years. The corporate greed is unbearable.

What is wrong with these people?

Jon , Carrollton

10/03/2002

Both candidates ignore solution: lawsuit reform

If someone gave you $1, and you handed them back $2.50, how long would it

take before you emptied your wallet? The homeowner insurance crisis in this

state isn't due to a lack of regulatory oversight or backroom politics. Look

beyond the political posturing and you'll see the root causes are runaway

jury awards and out-of-court settlements for water damage and mold claims.

Mold wasn't invented last year. It has been around forever. Sharp lawyers

have managed to convert it into a virtual courthouse slot machine. These

litigation risks make it untenable for insurance companies to operate in

Texas.

Rick and Tony just don't get it. Neither seems eager to tackle

lawsuit reform, preferring to shift blame to " big insurance companies. " The

Democratic Party is a wholly owned subsidiary of the trial lawyers' lobby,

so don't expect help from Mr. . And Gov. seems unwilling to

take any action beyond cheap political rhetoric. Outrageous settlements

fatten lawyers' wallets; the rest of us fork over our hard-earned coin in

higher insurance premiums, as these litigation costs are passed along.

Uninformed citizens, eager to believe the latest health-scare crisis,

perpetuate the problem by failing to demand accountability of the legal

system. They blindly follow their partisan voting habits instead of

researching individual candidates and demanding answers on how to rein in

out-of-control lawsuits. The only solution to Texas' insurance crisis is

lawsuit reform. Let's demand it!

Steve Thurman, Forney

Jurors punish insurers

Re: " Both candidates ignore solution: lawsuit reform, " by Steve Thurman,

Letters, Oct. 3.

Mr. Thurman blamed mold claims and so-called outrageous settlements and

lawsuits on trial lawyers. I am a trial lawyer and I am tired of hearing

insurance company-sponsored lies about mold claims and lawyers who represent

homeowners.

First, if insurance companies paid their claims, fairly and on time, nobody

would need a lawyer. Second, Texas gives insurance companies special

protection rights; in return we expect fair treatment. Like Enron, the

insurance companies have cheated the system. Insurance works when we all pay

a little and share the risk of individual loss. We all pay $1, and, yes,

some of us get $2.50 back when we have a catastrophic loss.

The system works when it is managed and regulated. Our problem is that the

governor is not regulating the insurance companies. The governor has been

bought off by the greedy insurance company executives who have admitted

they've been given bonuses. The governor's failure makes the courts, lawyers

and citizen juries the last place of insurance regulation. That system works

because lawyers present their clients' claims to citizen juries. Texas

juries are very good lie detectors and they punish those who need

punishment. Either Mr. Thurman doesn't trust his neighbors as jurors or he

works for Gov. Rick or the insurance industry.

I hope the same people who sit on the juries punish the wrongdoers when they

go to the polls.

Clint C. Blackman III, Dallas

State leaders failed us, should step down

Gov. Rick , our insurance commissioner and our state elected officials

should all step down! They have either hamstrung us with higher insurance

expenses or limited insurance options.

Texas has 700,000 homeowners who have to change policies as their insurance

expires and see if they can find replacement coverage in a system that

doesn't have the capacity to absorb their business. They may ultimately pay

even higher premiums!

With auto insurance, those who comply with the law are paying more than they

should because Texas law is behind the times. Arizona has reduced individual

auto insurance premiums! It requires insurance companies to advise the state

whenever an insured cancels his auto insurance. The state department of

transportation then notifies the individual to provide proof of insurance

within 30 days or surrender his automobile license plate. Failure to notify

the state results in notification of local authorities who can go out and

remove the plates. If an uninsured motorist is stopped while driving, the

plates are taken, the auto towed, and a ticket is issued with a stiff fine.

Result: almost no uninsured drivers and a reduction in premiums in that

area. We need new elected officials.

Bob Whistler, Bedford

10/03/2002

Insurance higher in Texas because claims are higher

In light of the decision by Farmers Insurance Group to stop writing

homeowners insurance in Texas, many are wondering how we ended up with an

insurance market that has companies leaving the state and others unwilling

to write more policies. Unfortunately, the quick fixes being suggested by

some - particularly those calling for more rate regulation - can actually

make the situation even worse.

Regardless of whether insurance rates are regulated or unregulated, they are

still driven by claims costs. Rates are higher in Texas because insurers pay

out more in claims for bad weather, mold and water damage than in any other

state. When you add a restrictive regulatory environment, fraud and

frivolous lawsuits to the mix, the result is an insurance market in Texas

unlike any other in the country.

Good public policy should protect consumers and promote choice and

competition in the marketplace. The Texas Coalition for Affordable Insurance

Solutions continues to work with lawmakers and regulators to develop

solutions that will benefit both consumers and insurers so we can address

the real problems in the Texas insurance market.

Beaman Floyd,

Texas Coalition for Affordable Insurance Solutions, Austin, Texas

'Mess with the bull, get the horns'

Farmers Insurance should be banned from doing any business in Texas if it

can't do all business in Texas. I have changed my auto, life and homeowners

insurance policies the day I wrote this. How dare Farmers insult me. May the

company rest in peace with Enron. We do not do business like that in Texas.

Mess with the bull, get the horns!

Steve Noack, , Texas