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.

Texas GOP's Festival of Hate

The anger and hatred spewing out of the mouths of the Texas Republicans, gathered in San Antonio this weekend for their biannual state convention, once again manages to reach astounding proportions.

Just when we thought we couldn't be appalled any more ...

Party chair Tina Benkiser kicked off the convention by telling delegates that immigrants should learn English and embrace American values and that "amnesty" for illegal immigrants "is simply another word for surrender."

Houston Chronicle

"Unfortunately, that (undocumented immigration) has given way to multi-culturalism and hyphenated Americans and people whose loyalty is to a different flag," (Benkiser) said.

San Antonio Express

(Gov. Rick) Perry's director of homeland security, Steve McCraw, described the influx of illegal immigrants as a "tsunami" that could include "an army of jihadists."

More from some of the GOP delegates, concerned about the rage:

"I don't like the rhetoric," said Reggie Gonzales, of Houston, state chairman of the Republican National Hispanic Assembly. "Being a proud American of Mexican descent, I don't like the overtones."

"I was a strong supporter of Perry until this last (legislative) session. I felt like he stabbed conservatives in the back," (delegate Andy) Pittman said. "I don't think he realizes right now that he's got the grass-roots upset."

Previous three quotations from here. I salute Rick Perry and the Texas Republicans for their cluelessness in continuing to pave the way for their vainglorious defeat in November.

As we move toward the Texas Democratic Party convention weekend in Fort Worth on June 8-10, posting here will be even lighter than usual. In my capacity as statewide coordinator for the Van Os campaign and in addition to serving as a delegate and being requested to run for the platform committee from my Senate district (a post I'm likely to decline based on my workload as political hack/blogmeister), I'll probably have some live-blogging from the floor and the various caucii, as well as some of the social/political events.

Our biggest news ought to be a rather interesting contest shaping up for state party Chair between Boyd Richie, Glen Maxey, Charlie Urbina-Jones and Lakesha Rogers. I can promise you that we'll be much more positive and upbeat than our counterparts in spite of the current Republican-induced state of our state.

Update (6/6/06): I've been wanting to type 666 for about a week now ... Vince Leibowitz applies more smackdown, as does Stace Medellin and John Coby and Trey McBlogger . And John Cornyn's Box Turtle at In the Pink Texas.

"He lived on the solution side of life"

(From the memorial service for Lloyd Bentsen in Houston yesterday, courtesy Houston Chronicle. Clockwise from about 7 o'clock: John Kerry, Chris Bell, Bill Clinton, Hillary Clinton, John Cornyn.)

"At the tender age of 71, a time when he could have with honor and grace and total good faith, walked into a richly deserved private life, he agreed to become Treasury secretary at one of the most challenging times for our country economically in modern history ... He was instrumental in passing our plan to expand our trade relations with Mexico -- still a controversial issue, but I ask you to think how much more complex and difficult this immigration debate would be today if we had failed then to be a good neighbor."

-- former President Clinton

"For I believe history will judge this man as a man of solutions. He lived life differently than most of us. It's been said many times that life is 10 percent what happens and 90 percent how you react to it. From my chair, I've seen far too many people who react by moaning about problems, looking down, decrying the world and the situation we have. Not Lloyd Bentsen. He lived on what I call the solution side of life, always looking for an answer, always looking for some hope."

-- Pastor William Vanderbloemen of First Presbyterian Church, which the Bentsens attended

"Fold him in his country's stars."

Hermann Park, Houston, yesterday.

Barbara Radnofsky:


I want to express my sincere thanks to our service members and their families for their patriotic military service to our great Country. I ask that we keep our thoughts and prayers for the families of our fallen service members in all wars and the service members that died during peace time service. We must continue to remember this sacrifice on Memorial Day and throughout the year.


Chris Bell's blog (Jason Stanford):

Memorial Day is one holiday we all wish we didn't have to celebrate, and our hearts go out to everyone who has lost a friend or loved on in combat. There is not much more to say about that.

But there is a lot more to do. Texas has approximately 4,000 members of the National Guard currently on active duty in combat zones, and they are eligible for $250,000 life insurance policies with really low, $16.25 a month, premiums. On Veterans' Day, Chris said that as Governor, he would have the state pay these premiums to provide a little financial security.

When Chris' idea came out, Rick Perry's campaign called it "interesting," but not so interesting, it seems, to do anything about this. On Memorial Day, perhaps moreso than on any other day, we realize that this is an important priority and pray that no one would ever need to cash in any of these policies.

David Van Os:


My father and mother named me in memory of an uncle I never knew, my father’s older brother David, a naval fighter pilot in the Pacific theatre who did not return from his last mission and of whom it is said no trace was ever found. On the occasion of Memorial Day it is impossible for me not to think of this and of the similar sacrifices that have been made by so many Americans and their families in defense of the dream.

Over the approximately 231 years since the day the embattled colonists fired the shots heard ‘round the world at Lexington and Concord, a long line of courageous Americans and their families have offered themselves willingly to sacrifice everything they had in order to defend the dream of a place where tyranny is unknown and the people govern themselves. All of us living today owe more than words can ever express to every one of them for what they did.

On this occasion of Memorial Day 2006, something else must be said, grim though it is to have to say it. For the last 5 ½ years the chief executive of the United States of America and his entourage of sycophants have brazenly declared themselves by word and deed to be contemptuous of the Constitution and above the rule of law. In so doing they have continually shown themselves to be unworthy of every American who has sacrificed himself to defend the dream in every conflict since the courageous defenders of Lexington Green stood firm against Imperial Redcoat regiments.

The uncle I never knew did not pay the ultimate price in order for the likes of George W. Bush, Dick Cheney, Donald Rumsfeld, and Alberto Gonzales to trample all over the American dream that he perished to defend. Every one of the honored dead who has made the ultimate sacrifice down through the years of our nation’s history deserves better than for the dream they defended to be dishonored by an American regime that scorns the very Constitution they were sworn to defend. My fellow Americans and Texans, we owe it to ourselves, our legacy, and our posterity to flood our polling places this November and bring this dishonor to an end.