Insurance

California Wildfires; Insurance Controversy; Home Protection

October 27, 2007  ·  Consumer Watchdog

<p class="source">CNN-TV - Open House Program</p> <p>DOUGLAS HELLER, FOUNDATION FOR TAXPAYER & CONSUMER RIGHTS: The insurance industry is looking at American consumers sort of like they look at a casino. We just hit three blackjacks in a row, let's take our chips off the table and leave.</p>

Competing health insurance plans equally flawed

October 25, 2007  ·  Consumer Watchdog

<p> San Jose Mercury News (California) </p> <p> Why does Massachusetts matter? Because both the latest Schwarzenegger proposal, and the alternative favored by Assembly Speaker Fabian Núñez and some of his allies, repeat the mistakes of the Massachusetts law. Massachusetts officials admit 18 percent of the uninsured cannot afford insurance, notes a report by the Santa Monica-based Foundation for Taxpayer and Consumer Rights. As Ben Day, director of Mass-Care, a vocal critic of the law, points out, "many of those who supported it are now saying the law will never work." </p>

Insurance in a risky state: Coverage changed after Oakland blaze

October 25, 2007  ·  Consumer Watchdog

<p class="source">San Jose Mercury News (California)</p> <p>Consumer-rights advocate Carmen Balber warned that homeowners should be vigilant when it comes to properly insuring themselves against fire and other disasters. "The big concern is that consumers who've lost their homes this week don't get adequate payment to rebuild," she said. "That certainly became an issue after the '03 fires when a lot of homeowners thought they were insured for full replacement value of their home, only to find their policies had been whittled down over the years without them knowing it."</p>

IS YOUR HOME COVERED? – HOW TO KEEP CURRENT

October 25, 2007  ·  Consumer Watchdog

<p class="source">THE SAN FRANCISCO CHRONICLE (California)</p> <p>Poizner said he does not anticipate there will be requests for rate increases as a result of the fires and claims. Consumer watchdogs don't either, but only because they're high already. "Insurance companies have been jacking up rates for the last five years, not just in California but all over the country, in anticipation of this natural disaster," said Harvey Rosenfield, founder of Foundation for Taxpayer and Consumer Rights in Santa Monica. "It's the nature of their industry in collecting as much in premiums as they can and hold on to it to recoup the investment profit. The industry wants to pay out as little as possible and the policyholders want as much as possible. That's two competing tensions that always make for problems," said Rosenfield.</p>

SOUTHLAND BLAZES: HELP FOR HOMEOWNERS — Before smoke has cleared, insurers roll in;

October 25, 2007  ·  Consumer Watchdog

<h3>Mobile units set up in affected areas. A top state official predicts 'hundreds of millions of dollars' in damage.</h3><p class="source">Los Angeles Times</p> <p>The latest fires are just the sort of catastrophe that prompted third-ranked Allstate Corp. in May to stop writing new policies for homeowners. The insurer also is seeking a major rate increase for current policyholders, citing danger from fires. That could spell trouble for California homeowners "if other insurance companies choose to look at it like that," warned Douglas Heller of the Foundation for Taxpayer and Consumer Rights in Santa Monica.</p>

When health insurance dumps you;

October 25, 2007  ·  Consumer Watchdog

<h3>State works to protect consumers from having health coverage pulled</h3><p class="source">THE SAN FRANCISCO CHRONICLE (California)</p> <p>At least one consumer group is concerned the new regulations still leave too much power in the hands of insurers. "They leave it up to the plans to investigate, and the insurance company has a financial incentive to deny as many people as possible," said Jerry Flanagan, health advocate for the Foundation for Taxpayer and Consumer Rights in Santa Monica. He said he would like regulators to play a more active role in mediating rescission disputes.</p>

The Next Battle for Wildfire Victims: Insurance

October 23, 2007  ·  Consumer Watchdog

<h3>Consumers could get stiffed on reimbursement for razed homes, and even get dropped by their insurance companies, consumer advocates warn.</h3><p class="source">CNNMoney.com</p> <p>Experts like Doug Heller, executive director for Foundation for Taxpayer and Consumer Rights, worry about is how much money will be available when it comes time for customers to rebuild their homes. "That's the real concern for me at least," said Heller. "Will they actually fulfill their advertisements?" One of the biggest controversies erupted in 2003, when fires ravaged San Diego and San Bernardino counties. Consumers found themselves under-insured because their policy limits were not raised to reflect their home values, said Heller. That meant homeowners had to pay the difference. "I think there is a question as to whether insurance companies learned from 2003 and have made sure that policyholders have enough coverage," said Heller.</p>

What if the UC system lost state funding?

October 22, 2007  ·  Consumer Watchdog

<p class="source">San Jose Mercury News (California)</p> <p>"I see privatization happening right now," said John M. Simpson, consumer advocate for the Foundation for Taxpayer and Consumer Rights in Santa Monica. "It is wrong to have this fundamental shift in what the people in California have believed all these years without a public debate."</p>

34 percent of area gas stations fail pump tests in last three years

October 21, 2007  ·  Consumer Watchdog

<p class="source">South Florida Sun-Sentinel (Fort Lauderdale)</p> <p>Devices that shortchange customers are taken out of service until they are fixed and reinspected. Pumps that err in consumers' favor are not shut down. "It is difficult to tell when a pump is cheating you," said Judy Dugan, founder and research director for Oilwatchdog.org, a nonprofit consumer advocacy group based in Santa Monica, Calif. "But the key issue here is does anybody [gas station owners] ever pay a price for cheating?"</p>

Auto insurance reforms set to equalize rates face a deadline

October 21, 2007  ·  Consumer Watchdog

<p class="source">Inside Bay Area (California)</p> <p>Prop. 103 is "all about giving drivers a fair shake," said Doug Heller, executive director of the Foundation for Taxpayers and Consumer Rights. Under the old system, urban drivers can end up paying for insurance that is hundreds of dollar higher than drivers in other areas.</p>

Insurance providers want your attention

October 15, 2007  ·  Consumer Watchdog

<p class="source">The San Diego Union-Tribune</p> <p>Proposition 103 created an elected state insurance commissioner, an office now held by Steve Poizner, and requires that auto insurers get the approval of the state Department of Insurance before adjusting their rates. The insurance industry, which backed three unsuccessful alternative initiatives to Proposition 103 in a campaign that set spending records, has continued the fight in the courts, the Legislature and the regulatory process.</p>

Home Insurers’ Secret Tactics Cheat Victims, Hike Profits

October 14, 2007  ·  Consumer Watchdog

<h3>Companies pay out less, make $73 billion more</h3><p class="source">The Biloxi Sun Herald (Mississippi)</p> <p>Insurance companies are no longer following their mandate to take care of policyholders' money and then pay it out when needed, says Douglas Heller, executive director of the nonprofit Foundation for Taxpayer and Consumer Rights in Santa Monica, California. "The whole purpose of insurance is evaporating before our eyes as we continue to send checks to the companies," Heller says. "Insurers are looking to shed their purpose as a risk bearer and become financial institutions."</p>