Consumer Watchdog

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Consumer Watchdog

Insurance

Insurance news, investigations, and reform — auto, home, and health insurance rates, claims denials, and industry accountability.
Provider of home coverage probed

Provider of home coverage probed

<p class="source">Contra Costa Times (Walnut Creek, CA)</p> <p>On top of administrative penalties, the Foundation for Taxpayer and Consumer Rights argues Farmers Insurance should pay refunds to any customer who was improperly charged. "This company thinks it can break the law without being held accountable," said Harvey Rosenfield, founder of the Santa Monica-based consumer watchdog group, which petitioned the Department of Insurance to participate in the proceedings. "It's an arrogant, outrageous practice by an arrogant, outrageous company."</p>
Louisiana Insurance Chief’s Huge Task;

Louisiana Insurance Chief’s Huge Task;

<h3>Commissioner Aims to Restore Trust of State's Battered Citizens;<br>Glad Only 'a Tree Fell on Your Roof'</h3><p class="source">THE WALL STREET JOURNAL</p> <p>Mr. Wooley accepted $577,000 in campaign contributions from insurers in 2003 and 2004, according to the Foundation for Taxpayer and Consumer rights. Soon after he was elected, he successfully championed a measure letting insurers raise or cut rates by up to 10% without regulatory approval. He deemed it necessary to draw more insurers to the state, and the number was rising before Katrina. Opponents dubbed the measure "the Wooley tax," predicting, accurately, that rate hikes would outpace declines.</p>
Governor signs insurance package;

Governor signs insurance package;

<h3>Three of state Sen. Martha Escutia's bills dealing with insurance coverage have been signed into law</h3> <p class="source"> Whittier Daily News (California) </p> <p> Doug Heller, executive director of the Foundation for Taxpayer and Consumer Rights, said that by encouraging more people to purchase insurance, the program already is saving consumers money. "It's less likely that we'll be hit by uninsured drivers,' Heller said. "It means the cost of insurance will go down as more people get insured." </p>
National focus on election unlikely;

National focus on election unlikely;

<h3>Eight initiatives on special vote ballot</h3><p class="source">Ventura County Star (California)</p> <p>"As a Californian, I think our legislative and regulatory decisions should be made in the interests of businesses and residents here in California," Doug Heller with FTCR said. Noting that the special election has been driven by Schwarzenegger and is being conducted only at the governor's insistence, he said, "Californians are being driven to the polls in part by out-of-state interests and their influence on the process."</p>
Wind or water? Big difference for insurers

Wind or water? Big difference for insurers

<p class="source">Pioneer Press (St. Paul, MN)</p> <p>The Foundation for Taxpayer and Consumer Rights, based in Santa Monica, Calif., argues it shouldn't matter whether wind or water did the damage, since Hurricane Katrina was the initial cause of all of the damage. Foundation spokesman Doug Heller says the problem is complicated by the fact that many Gulf state residents are reporting difficulty obtaining copies of their insurance policies, which could delay the claims process.</p>
The Tipping Point for Health Care Reform

The Tipping Point for Health Care Reform

<p class="source">The Press-Enterprise (Riverside, CA)</p> <p>The fact that the cost of providing a year's worth of health insurance for a family is now more than the entire annual income of a minimum wage worker could signal the tipping point for health care reform.</p>
Insurer discount tossed by court

Insurer discount tossed by court

<p class="source">Sacramento Bee</p> <p>SB 841 was written by Sen. Don Perata, D-Oakland, and signed by then-Gov. Gray Davis. Doug Heller of the Foundation for Taxpayer and Consumer Rights said both Davis and Perata - now the Senate leader - benefited heavily that year in donations from Mercury Insurance, a sponsor of the bill.</p>
Auto Policy Discount Rejected;

Auto Policy Discount Rejected;

<h3>An appeals court says Mercury Insurance can't charge previously uninsured drivers more and others less.</h3><p class="source">Los Angeles Times</p> <p>"This is going to get uninsured motorists off the road," said Harvey Rosenfield, the author of Proposition 103 and an attorney with Santa Monica-based Foundation for Taxpayer and Consumer Rights, which brought the original complaint against Mercury, a subsidiary of Mercury General Corp. of Los Angeles. Tuesday's decision by the three-judge panel upheld a 2004 finding by Los Angeles County Superior Court Judge Dzintra Janavs.</p>
Valley residents adding flood insurance;

Valley residents adding flood insurance;

<h3>New Orleans situation prompts many to inquire about coverage</h3><p class="source">Sacramento Bee</p> <p>Policies can differ greatly from company to company, so people should shop carefully and read every inch of fine print before buying insurance, said Doug Heller, executive director of the Foundation for Taxpayer and Consumer Rights.</p>
Council moves to thwart Measure B

Council moves to thwart Measure B

<p class="source">Pasadena Star-News (Pasadena, CA)</p> <p>The Santa Monica-based FTCR wrote Measure B and successfully defended it in court. Carmen Balber of FTCR, said her group has no plans to challenge the task force on legal grounds, but will campaign to make sure the voters know what she believes is the real motive behind the council's action.</p>
SUSPICION FUELLED;

SUSPICION FUELLED;

<h3>DO REFINERS KEEP CAPACITY LOW IN ORDER TO DRIVE PRICES HIGHER?</h3><p class="source">Calgary Sun (Alberta)</p> <p>The U.S.-based Foundation for Taxpayer and Consumer Rights (FTCR) has unearthed internal documents from major industry players from the mid-to-late 1990s expressing the desire to limit refining capacity to pad their bottom lines. Stated one Chevron memo: "A senior energy analyst at a recent American Petroleum Institute convention warned if the U.S. petroleum industry doesn't reduce refining capacity, it will never see any substantial increase in refinery margins."</p>
Insuring a Fair Recovery

Insuring a Fair Recovery

<p class="source">The New York Times</p> <p>The Foundation for Taxpayer and Consumer Rights calculates that the current Louisiana Insurance Commissioner, Robert Wooley, received more than half a million dollars in campaign contributions from insurance companies in 2003 and 2004, which leaves him wide open to criticism from taxpayers who feel shorted by insurance companies. In the end, everyone will benefit from the most open process possible.</p>