Insurance

Price-gouging on insurance alleged;

May 25, 2006  ·  Consumer Watchdog

<h3>State chief will hold hearings this summer</h3><p class="source">The San Diego Union-Tribune</p> <p>In 2005, the top five insurers took in roughly $3.5 billion in premiums and estimated that they would pay out $1.5 billion in claims, with an average estimated payout of 46 cents per dollar. Half of the top 20 homeowners insurers last year paid out 45 cents or less per dollar of premium. "It used to be that insurers would pay out close to a dollar in claims for every dollar they take in premiums, since they make most of their money through investments anyway," said Harvey Rosenfield, a longtime critic of the insurance industry who heads the Foundation for Taxpayer and Consumer Rights in Santa Monica.</p>

Bustamante sowing conflict-of-interest seeds

May 19, 2006  ·  Consumer Watchdog

<p class="source">San Gabriel Valley Tribune (California)</p> <p>Consumer advocate Doug Heller, executive director of the Foundation for Taxpayer and Consumer Rights, insists that "There are no exceptions, there are no excuses, because contributions and gifts come with expectations."</p>

Florida Orders Mercury General Units To Return More Than $2 Million To Policyholders

May 17, 2006  ·  Consumer Watchdog

<p> TALLAHASSEE, FL -- Two Mercury General Corp. subsidiaries have been ordered to pay more than $2 million in refunds to policyholders for engaging in improper claims settlements and charging rates not approved by the Florida Office of Insurance Regulation, the OIR said. </p>

Races to Put a New Face on Capitol;

May 15, 2006  ·  Consumer Watchdog

<h3>With term limits, the Assembly will see an influx of newcomers, while a band of moderates seeks Senate seats held by liberals.</h3><p class="source">The Los Angeles Times</p> <p>"Historically the consumer groups and environmental groups have looked at the Senate as the house that will stand in the way of aggressively anti-consumer and anti-environmental bills even if the Assembly moved them through," said Doug Heller, Executive Director of FTCR in Santa Monica. "I think it's possible the new Senate won't be quite the goalie that the Senate in recent years has been," he said, "in terms of fending off these big business shots."</p>

Health bill caught in lobbying game

May 14, 2006  ·  Consumer Watchdog

<p class="source">St. Louis Post-Dispatch (Missouri)</p> <p>For starters, Blue Cross's decision to sit this round out helped clear the path for Thursday's Senate vote; in previous years, the bill never made it out of committee, let alone to a full Senate vote. "Their (past) opposition to it has kept the bill from ever moving in the Senate," said Jerry Flanagan, of the Foundation for Taxpayer and Consumer Rights, a California-based consumer advocacy organization.</p>

Junk health insurance bill would put big burden on families

May 11, 2006  ·  Judy Dugan

<p class="source">The Baltimore Sun</p> <p>May 11, 2006 A measure that is nearing a final vote in Congress would greatly expand the reach of insurers offering bare-bones plans that saddle policyholders with no cap on their payments once their paltry coverage limits are reached. Maryland, like New York and a few other states with strong consumer insurance protections, has so far been spared the misery inflicted by such junk insurance.</p>

INSURERS’ CONSOLIDATION FUELS DEBATE OVER RISING U.S. HEALTH COSTS

May 11, 2006  ·  Consumer Watchdog

<p class="source">BestWire</p> <p>Despite health plans' historically high profit margins, premiums for patients keep rising without an expansion of benefits, Rohack said in his statement. The Foundation for Taxpayer and Consumer Rights, a California-based group, contends that health insurers spend 20% of premiums on "overhead," including profit and administration.</p>

Junk health insurance bill would put big burden on families

May 11, 2006  ·  Judy Dugan

<p class="source">The Baltimore Sun</p> <p>A measure that is nearing a final vote in Congress would greatly expand the reach of insurers offering bare-bones plans that saddle policyholders with no cap on their payments once their paltry coverage limits are reached. Maryland, like New York and a few other states with strong consumer insurance protections, has so far been spared the misery inflicted by such junk insurance.</p>

KATRINA AFTERMATH; Homeowners tell State Farm that one size doesn’t fit all;

May 10, 2006  ·  Consumer Watchdog

<h3>Lawsuit accuses insurer of using a single report to deny many claims</h3><p class="source">The Houston Chronicle</p> <p>A lawsuit filed Tuesday by nearly 700 Gulf Coast homeowners accuses State Farm Insurance Co. of using a "one-size-fits-all" engineering report as the basis for refusing to cover homes destroyed by Hurricane Katrina. </p>

The Insurance Showdown

May 10, 2006  ·  Harvey Rosenfield

<h3>Politicians are blocking a plan to base premiums on motorists' driving records rather than on where they live.</h3><p class="source">The Los Angeles Times</p> <p>By exposing the disease at the heart of our political system, Garamendi's announcement is likely to generate support for the cure: a voter initiative headed for the November ballot that would slash the influence of special interest money. It would cap corporate campaign contributions, including to initiative campaigns, and set up publicly funded elections. If that passes, the insurers' arrogant domination of California politics will be over. </p>

Insurance chief claims ‘blackmail’;

May 9, 2006  ·  Consumer Watchdog

<h3>He wants probe, says industry leveled ad threat over auto plan.</h3><p class="source">Sacramento Bee (California)</p> <p>The Santa Monica-based Foundation for Taxpayer and Consumer Rights, which supports Garamendi's auto insurance overhaul, said what the insurance commissioner described in his statement looks like blackmail and extortion -- a felony -- to it. "The industry has threatened the regulator," said spokesman Doug Heller. "The question here is: Who runs California? Elected officials or the Sopranos?"</p>

Top Dems contend for No. 2 post;

May 9, 2006  ·  Jamie Court

<h3>Insurance chief, two senators look to boost lieutenant governor's role</h3><p class="source">Contra Costa Times (California)</p> <p>California consumer activist Jamie Court is a seasoned observer of state government and politics. But this year's primary for lieutenant governor has him shaking his head. "It's kind of a disappointment that all three are running," said Court, who runs the Foundation for Taxpayer and Consumer Rights. Although he doesn't endorse candidates, Court half-joked: "They're all too good for that lame office."</p>