Insurance Lawsuits Loom Large in HD-23 Faceoff
The race in the state's House District 23 isn’t just another political fight; what’s going on between Rep. Craig Eiland, D-Galveston, and Wayne Faircloth, a Republican from Dickinson, is a proxy for the differences between insurance companies and trial lawyers, between Republicans and Democrats, between newcomers and establishment candidates.
As recently as two years ago, Faircloth was among Eiland's contributors. Two major changes have taken place since 2010. That was a huge election for Republicans in Texas (and elsewhere), sending a Republican supermajority to the Texas House and Senate that was able to draw new political ...
Comments (1)
Rudy Gonzales
Craig Eiland was right to sue for his constituents in the IKE hurricane fiasco that followed. TWIA(Texas Windstorm Insurance Association) is a state pseudo-insurance consortium, has not addressed the Texas insurance situation when it comes to windstorm protection. Lawyers stepped into the fray when unscrupulous insurance investigators were found untrustworthy in their assessments of damages.
TWIA making news again, but not the kind we want to see them doing. "The Texas Windstorm Insurance Association could be raising premium rates soon" - This is not the way this agency should be run. Premiums should go down or stabilize at the current rates, as there hasn't been a major storm hit since Ike. Next: "and for the time first, adjusting policyholder premiums depending on the likelihood of severe storms or hurricane damage in specific areas." Who is going to make this determination? i certainly hope Larry Taylor of Friendswood has no say what-so-ever in this. Larry Taylor is notorious for seeking no fraud or hanky-panky by the top management of TWIA and the agencies hired to do their inspections for the agency.
"This morning, a TWIA actuarial committee passed a recommendation to the TWIA board to increase rates by 4.7 percent overall, and adjust rates territorially to help the semi-state run insurance company cover all its liabilities." has there ever been an audit, by an outside agency" of TWIA funding and their uses from day of inception? If not - get one done!
TWIA is the insurer of last resort for Texas coastal residents who otherwise can't find insurance in the private market to cover severe storm and hurricane damage. This points out how incompetent the current TEA-Republican governor and legislation are in adequately providing their fiduciary function for the state.
Lawmakers reorganized the financial structure of TWIA in the 2011 special legislative session to prevent future troubles. - This means the One-party Legislature has effected constraints to keep insured's from seeking redress in the courts. The real question is who is Merlinos and Associates; and how are they connected in any way with anyone in the Texas Legislature or the governors office? Who provided the actuarial data and information to TWIA and who and how was data analyzed?
"TWIA would not be able to cover all liabilities as the entity is currently structured." - Points to effecting the changes so that the insured are adequately covered with the most minimum of premiums and administrative costs are reduced to none.
"Under the committee’s recommendation, policyholders in less storm-prone areas could see their rates drop, but the majority of them would have a premium rate increase." Rates drop and premium rate increases should not be in the same sentence.
We know we cannot trust Rick Perry or the state Legislature to perform their fiduciary functions to the benefit of the people as has been adequately disseminated since Bush was governor.
Then I read this: If the TWIA board approves the recommendation, it must also be approved by the Texas Department of Insurance." This agency should not be the end, and in fact anything to do with TWIA should be put to a vote by those directly effected by rates, coverage and regulations in a referendum and/or statewide vote. The old adage, "you can't trust a politician" holds truer than ever before in Texas!
If Texans had enough cahunas they would not allow any insurance agency to say they would not write any insurance in Texas. The Governor doesn't have the cahunas and neither does the Attorney General.
I recommend paying close attention to who is involved, how much are they involved, projected costs, actuarial data used and who provided that data and verification with outside hands and eyes on goings-on. With the amount of money being thrown around, I further recommend using the federal government as over-seer and control of funds at all levels.
This is a money grab for the elite few of Texas. This is what you get in a one party state! The limitation what lawyers can collect when suing over mishandled and inadequate claim settlements is not tort reform, it's pulling teeth out of any real reason legislation. The only losers will be the policy holders. Capital requirements should be one hundred percent (100%) and totally secured with the paychecks of each and every Senator and representative in Austin! There will be no reason to get insurers to fix or replace homes, roofs and other structures if a Texas state sanctioned Insurance inspector decides to fudge the cost of repairs back to pre-destruction condition. An example is when I had to fight and send letters and four estimates to get a new roof on my house. A roof cannot be repaired after a hurricane like "Ike"! Any attempt to repair a roof will void the pre-existing warranty on the current roof. Insurers have the option of not insuring if the home does meet code. The only way to fix many roofs is to re-roof the entire house. It cannot be piece mealed to pre-storm condition. The fact is there were and still are corrupt state inspectors around who will low-ball an estimate to keep funds from being spent. Every cent sent in to this pseudo-state insurance association must be kept in a federally over-sighted corporation and out of the hands of any Texas Legislator! This brings to mind "Corruption", "Under-the-table" and "kickback" as was alleged post IKE! Every legislator in Austin is subject to corrupt charges resulting for failure to install safe guards protecting the public's funds. Additionally inhibitory restrictions on legal ramifications should not be considered since that would limit the correction of gross errors on behalf of TWIA, administrators or Repair contractors. Larry Taylor of Friendswood, Texas had the audacity to say no heads should roll over TWIA and the corruption and collusion in TWIA. He was wrong! He happens to be one of the representatives from Galveston County. If he was derelict in containing the misdeeds of TWIA and or the administrators or the Inspectors, or in-placing controls to keep from paying out bribes, then he also is culpable. This pseudo-state insurance association was created for the protection of the citizens of the Texas coast, and not for the lining of Texas legislators in Austin. The Legislature has been derelict in passing the budget, school funding and jobs while passing Sonogram legislation intruding into Texans bedrooms.
State leaders in Austin over the past ten to fifteen years have grossly failed the people of Texas by allowing insurance companies to dictate terms for doing business in Texas! The inaction of those in charge and the fiduciary failures coming out of state agencies charged with protecting the people have enhanced the pockets of the insurance companies. Their failures have now progressed to the point where Texans may have to foot the bill for windstorm damages, while management and administrators of this state agency make off with full bank accounts. Since inception of this program, there have been people making decisions for and towards protecting insurance companies rather than insured's of Texas. Since inception, there has been gross failures by those charged with implementing this program. How many time has this agency been audited, by whom, what was found, what was disclosed, who was managing the funds and how were funds protected, invested and enhanced for the benefit of the people of Texas? None of this has been totally disclosed or disseminated. Facts prove the Legislature itself is at fault for failure to provide adequate and outside oversight of the administration and funds involved. The Texas Legislature has been under the charge of TEA-Republican's and thus willing to allow the people to go under and at their expense. The Texas Legislature failed in their fiduciary responsibility for the people and catered to the industry lobby. Here are some facts about Insurance companies:
Insurance companies, like every other business, is in business to make money. You are not covered. The insurance companies are the one covered with small print full of exceptions, limitations and other liability curbs for the insurance companies themselves. It just like going to the local casino. It doesn't matter what you are insuring, the company is the one protected.
Insurance companies do not pay fully or promptly. The insurance companies are the one covered with small print full of exceptions, limitations and other liability curbs for the insurance companies themselves. There are pre-requisites and small print which controls who, how much and under what conditions money will be provided.
Texas needs more Democrats who will change the mentality in Austin for the insured's instead of the insurance companies. More insurance companies will only spread the money around thinner and not every company who wants to come into Texas will gain from the regulators who have their hand out for bribes and kick-backs.
The biggest myth is Insurance loyalty to their long term customers. Insurance companies, like every other business, is in business to make money. just like Romney and his Bain Capital, who were in business to extract as much money as they could while limiting tax liability with the Tax code.
Bad weather should not mean increased rates if management, actuaries and accrual economist are diligent and accurate in assessing probability formulations for both the insurance companies and the insured. Privatizing profits while socializing risk costs is insurance jargon for maximizing profits while limiting outflow of money. Insurance companies, like every other business, is in business to make money.
The biggest deception is Mandatory Arbitration, as this is buried deep in the small print and protects insurance companies at the expense of the insured's with binding agreements to not proceed or bring about legal proceeding to attain what should be paid for. unfairly denying , not paying or delaying monies for covered items.
Protecting Policyholders Rights is yet another term for insurance company details going against Constitutional rights which abridges insurance companies from customer rights protected by the Constitution.
To fix TWIA, we must fix the mix in the Legislature to those who would work for the people and not special interests.