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Consumer Watchdog

Insurance

Insurance news, investigations, and reform — auto, home, and health insurance rates, claims denials, and industry accountability.
Stem-cell agency denies 10 grants, cites conflicts of interest

Stem-cell agency denies 10 grants, cites conflicts of interest

<h3>CONFLICTS OF INTEREST CITED FOR 10 APPLICATIONS</h3><p class="source">San Jose Mercury News</p> <p>But John Simpson of the consumer group that complained about Reed said the agency should name the institutions and individuals involved in the rejected grant applications. "People have a right to know which board members still don't understand conflict-of-interest rules," he said. "Perhaps a few of these deans need to enroll in Ethics 101."</p>
Consumers Knock Cell Service

Consumers Knock Cell Service

<p> Consumer Reports' survey found that cellular phone providers' often onerous contract terms and early termination penalties are being revised under the pressure of class-action lawsuits. "In the past five years, consumer advocates such as the Foundation for Taxpayer and Consumer Rights, in Santa Monica, Calif., and class action lawyers have filed more than 100 lawsuits coast to coast, according to an analysis by Thomson West, a legal-information-services firm," the magazine says. </p>
Ruling on recisions is blow to insurers;

Ruling on recisions is blow to insurers;

<h3> Patients dropped by Blue Shield may sue as a class, a panel says.</h3><p class="source">Los Angeles Times</p> <p>Jamie Court, a spokesman for the Santa Monica-based Foundation for Taxpayer & Consumer Rights, said regulators should determine how many policies have been canceled improperly under the standards set out in the decision and move to reinstate them so that patients in need of treatment won't have to wait for the legal process to play out. "If Blue Shield can't offer at least the due process of a staple and a photocopy, then it shouldn't be allowed to ruin people's lives by taking away their healthcare coverage and refusing to pay their big medical bills," Court said.</p>
Employment law ruling may impact wireless operators;

Employment law ruling may impact wireless operators;

<h3>Case calls into question legality of arbitration clauses</h3><p class="source">RCR Wireless News</p> <p>"What's fascinating is that the wireless companies have lost a slew of arbitration decisions in California and across the country but have not asked the Supreme Court to review those,'' said Harvey Rosenfield, founder of the San Francisco-based Foundation for Taxpayer and Consumer Rights. "Rather they are jumping into an employment contract case with a screed against the California courts in the hopes that the Supreme Court will issue a decision that kills state law protections and shoves one-sided kangaroo court arbitration down the throats of cellular consumers everywhere."</p>
Audit Ordered for California Stem Cell Agency;

Audit Ordered for California Stem Cell Agency;

<h3>California State Controller John Chiang has ordered an audit of the California Institute for Regenerative Medicine, citing accusations of conflict of interest.</h3><p class="source">Wired Magazine</p> <p>John M. Simpson, stem cell project director of the nonprofit Foundation for Taxpayer and Consumer Rights, a group that has closely watched the institute since its inception, has called for the resignation of both Klein and Reed, a call echoed by The Sacramento Bee, the leading newspaper in the California state capital. Simpson said the only way to clear the air and restore confidence in the agency's grant awards process is for both men to leave.</p>
UC Signs BP Contract, Research Already Underway

UC Signs BP Contract, Research Already Underway

<p class="source">Berkeley Daily Planet (California)</p> <p>John Simpson of the Foundation for Taxpayer and Consumer Rights (FTCR) said he was particularly concerned because the contract gives BP more control of the EBI and research than envisioned in the original proposal. "BP can thwart any action they wish," said Simpson. "And given the despicable record of BP, which killed 15 of its workers in Texas and spilled oil all over Alaska because of unreasonable cost cutting, why should we believe the oil giant would act in good faith? They have demonstrated time and again that they act only in their own narrow interest."</p>
Insurance chief hires top legal enforcer – and gets some static

Insurance chief hires top legal enforcer – and gets some static

<p class="source">Sacramento Bee (California)</p> <p>Cole's selection, however, was questioned by one consumer group. It also follows a call by the Foundation for Taxpayer and Consumer Rights for Poizner to fire his special counsel, William Gausewitz, a former industry lobbyist accused of trying to help insurance avoid paying thousands in court fees during a legal fight over insurance rates.</p>
Donations influence admissions at UCLA’s elite orthodontics program

Donations influence admissions at UCLA’s elite orthodontics program

<p class="source">The Daily Bruin (UCLA)</p> <p>Many worry such grants surrender undue influence to private interests, compromising the integrity of university research. "The university is digging everywhere it can to find new sources of revenue," said John Simpson, a consumer advocate at the Foundation for Taxpayer and Consumer Rights. "In that process, they're selling the soul of higher education to the highest bidder."</p>
Berkeley’s Pact With BP for Research Institute Gives Company Favorable Terms on Intellectual Property

Berkeley’s Pact With BP for Research Institute Gives Company Favorable Terms on Intellectual Property

<p class="source">The Chronicle of Higher Education</p> <p>One of those groups, the Foundation for Taxpayer and Consumer Rights, reiterated that criticism on Wednesday in a blistering news release that called the deal a sellout of the university's values and an insult to the California Board of Regents and the public. Because four of the eight seats on the governing board will be controlled by BP, the company can block proposed research from going forward, the foundation said in its release.</p>
Split views on Poizner pick;

Split views on Poizner pick;

<h3>A lawyer whose firm has represented foes of Proposition 103 is named the insurance commission's counsel.</h3><p class="source">Los Angeles Times</p> <p>Harvey Rosenfield, who endorsed Poizner when he ran for insurance commissioner last year, said he was particularly troubled that Cole's appointment followed the naming earlier this year of former insurance industry lobbyist Bill Gausewitz as the commissioner's special legal counsel for policy issues. Rosenfield this month called on Poizner to fire Gausewitz. He contended that Gausewitz "covertly" helped insurers in a lawsuit they brought against the commissioner.</p>
Insurance chief picks new counsel

Insurance chief picks new counsel

<p class="source">San Jose Mercury News (California)</p> <p>Harvey Rosenfield, a leading consumer rights advocate and author of Proposition 103, said he's far from convinced that Cole's hiring settles the bias concerns. He said Poizner, a multimillionaire who refused insurance-industry donations during his campaign, has broken his promise to have a true consumer advocate among his senior staff. Noting that Cole represented businesses in claims against insurers, Rosenfield called Cole a "corporate lawyer" and said, "He's not a consumer advocate."</p>
After Fires, Homeowners Feel an Insurance Pinch

After Fires, Homeowners Feel an Insurance Pinch

<p class="source">The New York Times</p> <p>After past disasters, California state officials tried to raise homeowners' awareness of their coverage limits by requiring policies to be written clearly and with disclaimers about what is not covered. But several national studies suggest that many homeowners tend to underestimate risk and do not understand that their policies do not guarantee replacement of their homes. "Most Americans still think that full coverage means full coverage, but insurance companies know otherwise,'' said Douglas Heller, executive director of the Foundation for Taxpayer and Consumer Rights, an advocacy organization.</p>