Political Clash Hangs Over Windstorm Insurance Hearing
As state lawmakers prepare for a joint hearing Wednesday morning on reforming the Texas Windstorm Insurance Association, a long-standing political battle between state Rep. Larry Taylor of Friendswood and Houston trial lawyer Steve Mostyn continues to hang over the debate.
Taylor, who is running to replace Republican Mike Jackson in Senate District 11, on Monday emphasized the $1.2 billion in money from TWIA — the insurer of last resort for many of the state's coastal residents — that has gone to claims and litigation related to Hurricane Ike, which struck the coast in 2008. That figure includes $768.3 million ...
Comments (3)
Hannah Katz
I have to side with Representative Taylor. Far too much of the premium dollars paid by hard working Texans ends up in the hands of trial lawyers. Reform is needed.
Rudy Gonzales
There he goes again! Larry Taylor of Friendswood is now crying about 1.2 Billion going into litigation, when he and all the other TEA-Republicans in Austin failed their fiduciary function for and to the people of Texas! Had the Leaders of out state provided competent oversight with due diligence there would not be this great impasse. Larry Taylor of Friendswood went bat for the incompetents overseeing inspectors who failed the insured's of Texas. An insurance owner/player charged with governing the very people who would were to help and assist families in their time of disaster, worked to defend administration rather than apply thde full brunt of the laws currently on the books.
(Re-posting) - TWIA(Texas Windstorm Insurance Association) is back in the news again! TWIA, a state pseudo-insurance consortium, has not addressed the Texas insurance situation when it comes to windstorm protection. 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.
Passing legislation to limit litigation cost is not proper, as that is the true finger on the trigger to keep insurance companies honest. I re-interate my call for a full audit of all expenses retro-actively to inception of this pseudo-state insurance consortium, management, administrators, employees, internal and out-side consultants. The Texas Department of Insurance is ultimately responsible for adequate and full review of the inadequately functioning divisions.
Insurance companies, like every other business, are in business to make money. You are not covered. That includes the state of Texas. The insurance companies are the one covered with small print full of exceptions, limitations and other liability curbs for the insurance companies themselves. That includes the state of Texas. It just like going to the local casino. It doesn't matter what you are insuring, the company, the state of Texas is the one protected.
Insurance companies do not pay fully or promptly. The insurance companies, the state of Texas, 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. Hence, the state of Texas' Legislators went about filing and passing laws to curb lawyers and insured's rather than fly-by-night inspectors and under-the-table paid administrators.
Texas needs more Democrats who will change the mentality in Austin for the insured's instead of the insurance companies. The current crop of legislators have failed the people of Texas too many times under the current system. 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, including Texas, 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, and Texas, like every other business, is in business to make money. That money is then passed around to cronies and special interests.
The biggest deception is Mandatory Arbitration, as this is buried deep in the small print and protects insurance companies, and the state of Texas, 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. Hey! This happened!
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.
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.
Steve Mostyn was right to sue to protect Texas' insured's in the IKE hurricane fiasco that followed.
Passing legislation to limit litigation cost is not proper, as that is the true finger on the trigger to keep insurance companies honest.
The alleged exorbitant cost may have been atrocious, but Texas' Legislators in Austin and the administrators, management and overseers should have had in place adequate and proper modes for immediate corrections. Insurance companies who came in and bought into coverage's made money at the expense of Texans. Steve Mostyn was right to clean house at the Texas Department of Insurance and all overseer divisions.
And then there is "Claims Fraud!" Had the Texas Legislators not had their heads up theirs, and adequately investigated implementation of this state pseudo-insurance; and passed legislation regulating the big insurance companies to the advantage of Texas and insured's rather than their CEO and CFO pocketbooks.
Courtney Hayden said it right, that TWIA does “not have a logical or fiscally responsible business model” because it only insures high-risk property owners. Insurance companies and their expertise still made money in Texas while the Legislature slept. Larry Taylor was on the board and knew inside information and profited from it.
The sad part of this is the Texas Legislature grossly failed Texas and Texans over money.
Rudy Gonzales
Texans should not have to jumped through hoops and fight for coverage.