RIP, Mary Kay Merriman

Mary Kay Merriman, Democratic activist, League of Women Voters member, and wife of Progressive Populist Caucus chair emeritus Stan Merriman, passed away suddenly yesterday.

David Van Os posted these remarks:

The fact that we are going to have a wide open, democratic election for state party chair is in large part a result of Stan Merriman's labors over the past 4 years to re-democratize the Texas Democratic Party. The fact that the Progressive Populist Caucus meeting is going to draw huge interest and will have heavy impact is a direct result of Stan's labors over the past 4 years in building the Caucus. The fact that the State Party Platform of 2004 was one of the most progressive in the history of the Texas Democratic Party is a direct result of Stan's labors. The fact that the 2006 platform will no doubt continue the same spirit is likewise a result of Stan's work. The fact that the face of the Texas Democratic Party in Convention this week will reflect a much more grassroots oriented party than it did 4 years ago is likewise a direct result of Stan's ceaseless labors, much of which are unknown to most but are undeniable to those who know.

Stan Merriman has been one of the most committed progressives that I have ever known. My family's thoughts and prayers go to him now at a time of incalculable loss.

Texas property insurers want another big raise

My friend John Cobarruvias, the blog-prietor of Bay Area Houston and president of Homeowners Against Deficient Dwellings, submitted this editorial on State Farm's homeowners insurance rate increase:

It is beyond belief that the State Farm Mutual Insurance company has filed with the Texas Department of Insurance (TDI) to raise homeowner's rates as much as 39% across the state. This request will be the first challenge for the new TDI Commissioner Mike Geeslin and the leadership of Texas, and they need to stand up for the consumers and show State Farm the door.

In 2002 Texas had the highest homeowner's insurance rates in the nation. After the massive insurance reforms proposed during the 2003 legislative session, rates are now twice the national average and Texas again has among the highest rates in the nation, second only to Louisiana. If that isn't bad enough, deductibles are much higher and coverage such as foundation, water, sewer and mold is now optional, at an additional cost.

The promised reforms of the 2003 session were a complete and total failure of the leadership of the state. Then- insurance commissioner Jose Montemayor -- now CEO of an insurance investment outfit -- caved in to every request of the industry. After conducting hearings on toxic mold, he removed mold coverage without any reduction in rates or any worthwhile measures to prevent the cause of mold contamination. He allowed the use of credit scoring, giving the industry the right to increase rates based upon an owner's credit history. And he authorized the use of HO-A policies, which made foundation, water, and sewer damage insurable only as additional expensive policy riders. And yet not one single penny of rate reduction was realized by homeowners.

The Texas Legislature, led by Governor Rick Perry, wasn't much help either. They failed to protect homeowners by passing business-friendly legislation that provided absolutely no rate relief for consumers. The Texas Attorney General at the time, John Cornyn, filed lawsuits against the insurance companies questioning changes in their rates, but the suits were frivolous because Cornyn never intended to -- and never did -- follow through on the charges filed against the insurance industry. The present Attorney General, Greg Abbott, has also done nothing to defend Texas consumers.

The insurance industry, the TDI, the attorney general's office, and the state legislature has provided a steady stream of excuses to homeowners while rates have doubled and tripled and coverage has been slashed. And now State Farm wants to raise rates as much as 39%.

It is clear the current Texas political leadership has absolutely no interest in protecting consumers. The property tax relief passed in the recent special session will be offset by the out-of-control increases in property insurance, all while the insurers have enjoyed record profits. And the insurance industry has now found another excuse, "reinsurance"; the insurance purchased by insurance companies to protect themselves. Never over the last 4 years has reinsurance been used by Texas insurers. This is a sure sign that in the face of windfall profits, the industry is grasping for excuses to justify additional rate increases.

As in 2002, and as if on cue, insurance companies will file excessive rate increases right before the 2006 elections. Our elected officials will again have a chance to file frivolous lawsuits and make empty promises on the campaign trail, giving lip service to 'lower rates'.

Governor Perry, Attorney General Abbott, and Insurance Commissioner Geeslin should stand up for the consumers and show State Farm the door, or the voters in Texas should show them the door in November.

John will be hosting a consumer caucus on the Texas Residential Construction Commission -- what Chris Bell called "a case study in corruption" -- next Saturday at the Texas Democratic Party Convention in Fort Worth.