Insurance issue stokes fire in Texas governor's race

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http://www.lubbockonline.com/stories/072502/loc_0725020028.shtml

Thursday, July 25, 2002

© 2002 - The Lubbock Avalanche-Journal

Photo: Texas Governor Rick addresses a news conference in a cotton

compress warhouse in Lubbock, Texas, 7/24/02 , after a coalition of 16

agriculture groups endorsed him in his bid for re-election against Tony

in November.

JIM WATKINS AVALANCHE-JOURNAL

Insurance issue stokes fire in governor's race

By BRIAN WILLIAMS

AVALANCHE-JOURNAL

Republican Gov. Rick and gubernatorial challenger Tony , a

Democrat, continued to spar Wednesday over concerns about homeowners

insurance. Both have promised re forms, but San chez wants faster action -

he wants to call a special session of the Legislature to deal with the

issue.

has said more information is needed before legislators tackle it.

Some premiums have risen as high as 200 percent. Home owners are trying to

get new policies, but some restrict coverage.

Insurance companies say the problem comes from rapidly escalating losses for

mold and water damage, according to The Associated Press. Losses in Texas

last year totaled nearly $1.2 billion, more than double the $512 million in

similar losses in 2000.

They also say the unregulated market currently under attack helped keep

costs down, The Associated Press reported.

told The Avalanche-Journal editorial board Wednesday that 's

request is politically motivated and that more information is needed before

the Texas Legislature deals with the insurance issue.

" We've got too much going on. This is too complex an issue to throw

everybody into Austin, Texas, during the middle of a governor's race and

races that these other folks have and try to fix when we yet don't know all

the information that is coming back, " told the board.

" I know we need a special session, legislators know we need a special

session, homeowners know we need a special session, " said in a news

release Wednesday. " The only person who does not get it is and the

insurance companies that are financing his campaign. "

Ray Sullivan, a campaign spokesman, told the AP that the governor has

supporters on all sides of every issue and makes decisions in what he deems

to be Texans' best interests.

The Texas Department of Insurance and the Attorney General's Office are

looking into insurance activities. The investigation is ongoing. Lawmakers

also are looking into the issue.

said anecdotal information shows problems with tactics the insurance

industry is using.

He said he believes in the free market but that changes are needed in the

homeowners insurance industry. Ninety-five percent of Texas policies are

exempt from rate regulation.

" We're going to regulate it. It is that clear, " said. " We're going to

regulate it. We're going to regulate it tough, " he told the board.

" I'm going to make it an emergency issue when the Legislature comes into

town, " he said.

A possible plan could be rate freezes, which would take legislative action,

said.

He said he is not surprised by the tone of the campaign, especially in light

of the deep pockets of , a multimillionaire, and 's spirited

primary campaign.

Recent expenditure reports indicate San chez has spent $31 million in his

race against and his primary race against Dan Morales.

, who did not have an opponent in the Republican primary, has spent

about $4.78 million since the first half of the year.

said he couldn't outspend and has had to respond in kind to

's ads that are false and misleading. 's camp have called

their ads " educational. "

Both have complained about negative campaigning against each other.

Discussing education, told the board he wants to provide a curriculum

preparation for children in programs before pre-kindergarten, a dropout

prevention plan, more investment in technology in schools (especially

increased training for teachers and administrators), more mentoring for

teachers early in their careers and a master science teacher program,

encouraging teachers to become experts in the fields they teach.

bwilliams@... 766-8719