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Consumer Watchdog

Insurance

Insurance news, investigations, and reform — auto, home, and health insurance rates, claims denials, and industry accountability.
DMV giving notice to motorists with lapsed policies

DMV giving notice to motorists with lapsed policies

<p class="source"> Inside Bay Area (California) </p> <p> "Now people are going to be getting reminded by the DMV that they've got a problem with their registration because of an insurance lapse. I think that will spur people to get it," said Doug Heller, executive director of the Foundation for Taxpayer and Consumer Rights. Heller and Speier would like to see the DMV include information about the low-cost auto insurance program in the notices that are sent out. </p>
Phone firms can get statewide franchise for TV;

Phone firms can get statewide franchise for TV;

<h3>Cable competition opens as governor signs legislation</h3><p class="source">THE SAN FRANCISCO CHRONICLE</p> <p>However, critics continued to voice objections. They said the new state franchise scheme is long on promises to provide better service and prices but short on regulations to ensure that they deliver on those promises. "Consumers just lost all the leverage that they had, which was the power of city and county officials to make sure companies provide good and equitable service," said Jamie Court, president of the Foundation for Taxpayer and Consumer Rights. "You can't remove 500 carefully crafted franchise agreements without doing damage."</p>
Taking Aim at California Election Funding

Taking Aim at California Election Funding

<h3>Among other changes, Prop. 89 would limit corporate spending -- but not that of tribes and trial lawyers -- on ballot measures.</h3><p class="source">The Los Angeles Times</p> <p>A November initiative could dramatically transform California politics, raising taxes to pay for publicly financed campaigns, strictly limiting private giving and taking particular aim at ballot measure spending.</p>
Greasing the Wheels of Government

Greasing the Wheels of Government

<font face="verdana,sans-serif" size="2">Just after being busted last week by the state for ripping off consumers by doing unnecessary work on their cars, EZ Lube gave the maximum allowed -- $22,300 -- to Arnold. The 76 shops in Los...</font>
Insurers Liking the Coverage of Schwarzenegger’s Policies

Insurers Liking the Coverage of Schwarzenegger’s Policies

<p class="source">The Los Angeles Times</p> <p>"People expected of Arnold Schwarzenegger independent advisors who would bring a fresh perspective," said Doug Heller, executive director of the Foundation for Taxpayer and Consumer Rights. "Instead, the governor has brought in State Farm and its cronies."</p>
State fines Blue Cross $200,000

State fines Blue Cross $200,000

<p class="source">THE SAN FRANCISCO CHRONICLE</p> <p>Some consumer advocacy groups were underwhelmed by the state's actions. "A single fine of $200,000 to a company that made $185 million in profit in just one quarter this year is chump change and not enough to bring about the type of systemic reform we need," said Jerry Flanagan of the Foundation for Taxpayer and Consumer Rights.</p>
State fines Blue Cross $200,000;

State fines Blue Cross $200,000;

<h3>Plan canceled a policy.</h3><p class="source">Sacramento Bee (California)</p> <p>A consumers group said the penalty was too small to stop the practice. "One $200,000 fine is not a deterrent. It's a very profitable business practice," said Jerry Flanagan of the Foundation for Taxpayer and Consumer Rights. "The number (of consumers affected) could easily get into the thousands."</p>
Secret plan alleged on campaign financing;

Secret plan alleged on campaign financing;

<h3>Measure's foes say nurses group is trying to limit opposition to its future health care strategy.</h3><p class="source">Sacramento Bee (California)</p> <p>"Proposition 89 isn't about Trojan horses, it isn't about any particular issue, it's about the opportunity to have a fair debate in Sacramento -- and you don't get that now because of the special interests," said Doug Heller, executive director of the Foundation for Taxpayer and Consumer Rights.</p>
Blue Cross Moves To Quell Furor

Blue Cross Moves To Quell Furor

<h3>The health insurer, accused of dumping sick policyholders, says it will alter procedures.</h3> <p> Jerry Flanagan, a patient advocate with the Foundation for Taxpayer and Consumer Rights, said the announced changes looked like an attempt by Blue Cross to avoid regulatory or legislative intervention and patch up its reputation. "Blue Cross is in a world of hurt, and they are attempting to wiggle their way out of hot water by putting in some weak rules they can live with. They are making concessions in an attempt to wiggle out of more comprehensive reform." </p>
Take a stand on health care

Take a stand on health care

<p class="source">Visalia Times-Delta (California)</p> <p>Gov. Schwarzenegger says he favors health insurance for the people of California, but one has to wonder what he has in mind. This is to be expected: He chooses his affiliations and draws his political lines clearly. According to the Foundation for Taxpayers and Consumer Rights (FTCR), the "health industry boosted [him] to nearly $100 million in campaign donations, with a $125,000 burst of contributions in August alone. The industry has given him $4 million overall."</p>
Home, auto insurance rates to decline;

Home, auto insurance rates to decline;

<h3>Safeco Corp., 21st Century Co. announce plan to slash premiums; other firms expected to follow</h3><p class="source">Contra Costa Times (California)</p> <p>Harvey Rosenfield with FTCR believes skyrocketing gasoline prices have prompted motorists to drive less, which should have reduced the number of accidents and claims that auto insurers have had to pay out. Plus, he suggested that homeowners' insurance carriers pay in claims about 30 cents for every $1 in premiums they harvest.</p>