Consumer Watchdog | Insurance

Mercury General Using Guise Of Benevolence To Assault Prop. 103

Thu, 02 Jul 2009 09:17:00 PDT

...one should wonder why Mercury, which is already one of the leading insurers in the state, would spend heavily to make its home market more competitive. I'm inclined to think the company has something else on its mind, and I'd bet that giving customers a break isn't it. Forewarned is forearmed: Hang on to your wallets.

'Pay-As-You-Drive' Auto Policies Could Become Option By Year's End

Sat, 27 Jun 2009 10:53:00 PDT

Doug Heller, executive director of Consumer Watchdog, a Santa Monica advocacy group, complained that Poizner's proposal would give insurance companies too much leeway to decide whether or not to offer a pay-as-you-drive option to potential customers. He said he feared that the regulations would allow companies to offer smaller discounts than they should for people who cut their driving by only modest amounts.

Consumers Urge DC Council to Make Insurers Accountable In Court For Unfairly Delaying, Denying Insurance Claims

Fri, 26 Jun 2009 10:28:54 PDT

Washington, D.C. -- Insurance policyholders whose legitimate insurance claims were low-balled, delayed or denied by their insurance companies testified before the D.C. Council yesterday in support of legislation that would allow consumers to hold their insurer accountable in court. Consumer Watchdog joined policyholders, advocacy organizations and attorneys for insurance consumers to call on the committee on Public Services and Consumer Affairs to forward legislation swiftly to the full council.

My View: HB 1171 Is Simply A Gift To Insurers

Wed, 24 Jun 2009 17:37:30 PDT

This My View was co-signed by Birny Birnbaum, executive director of the Center for Economic Justice; Douglas Heller, executive director of Consumer Watchdog; and Amy Bach, executive director of United Policyholders.

In the strongest possible terms, we urge Gov. Charlie Crist to veto the home insurance deregulation bill, SB2036/HB1171. This bill is an invitation for insurers to game the Florida regulatory system and abuse consumers.

State Farm Florida: We Will Re-Examine Departure if 'Consumer Choice' Bill Signed

Mon, 22 Jun 2009 11:15:00 PDT

Consumer groups have sent letters to Crist urging him to veto the measure. In addition, Insurance Commissioner Kevin McCarty has warned of the bill's potential adverse effects in the state's property insurance market, specifically Florida's domestic insurers that do not qualify to charge deregulated rates as outlined in the bill. Most recently a joint letter was sent by the Consumer Federation of America, the Center for Economic Justice, Consumer Watchdog, and United Policyholders. The groups said the bill "is an invitation for insurers to game the Florida regulatory system and abuse consumers."

25 Cal Republican Lawmakers Urge Supreme Court to Help Safeco Insurance

Wed, 17 Jun 2009 13:33:00 PDT

In a stunning show of fealty to insurance giant Safeco, 25 Republican lawmakers have asked the California Supreme Court to overturn an appellate ruling that Safeco Insurance has to disclose the names of policyholders it may have cheated...

Veto The Anti-Consumer Property Insurance Bill

Wed, 03 Jun 2009 10:31:00 PDT

Gov. Crist has already indicated some reservations about signing this bill. We implore him to continue that smart thinking and to continue looking out for the best interests of Florida's insurance consumers. Consumer advocates across the state are expressing similar concerns, including the Florida Public Interest Research Group, the Consumer Federation of the Southeast, the Florida Consumer Action Network, Consumer Watchdog, the Center for Economic Justice, United Policyholders, Insured's Public Action Coalition, Floridians In Action as well as Florida's Insurance Consumer Advocate Sean Shaw.

Property Insurance Battle: Fight Heats Up Over Bill To Allow Property Insurers To Raise Rates On Their Own

Wed, 27 May 2009 16:53:35 PDT

Governor Urged To Veto Deregulation Bill

The fight is heating up against legislation that would essentially allow large property insurers to raise rates without state approval. Consumer groups opposed to the bill include Florida Consumer Action Network, Consumer Watchdog, Center for Economic Justice, United Policyholders, Insured's Public Action Coalition and Floridians In Action.

NYT editorializes against federalization of insurance regulation

Fri, 22 May 2009 16:55:00 PDT

We've been posting a lot about big insurers' plot to win deregulation as part of the federal financial overhaul. Now the New York Times has, quite succinctly, made the case against this play for federalization.

San Jose Assemblyman Reaps Campaign Cash As Insurance Committee Chair

Fri, 22 May 2009 12:10:00 PDT

"He hasn't done anything resembling oversight of the insurance industry," said Consumer Watchdog's executive director, Douglas Heller. "And the few times that he has taken tough positions, he's worked vigorously to advance the industry's interests against the interests of consumers."

Insurers, Including AIG, Spent Nearly $36 Million to Influence Congress

Sat, 16 May 2009 10:07:00 PDT

Insurance companies, including American International Group (AIG), spent nearly $36 million in recent years on political contributions to members of Congress, according to the Consumer Watchdog and the Center for Responsive Politics. Also among the big givers were Hartford Financial and Lincoln Financial, two companies that are in line to get billions in TARP funds from the U.S. Treasury. Consumer Watchdog says that insurers are hoping that Congress will support their effort to opt out of state regulation in favor of a federal regulator.

State Farm To Cut Auto Rates

Fri, 15 May 2009 10:04:09 PDT

State Farm had to be prodded into reducing premiums as much as it did, said Douglas Heller, executive director of Consumer Watchdog, a Santa Monica group that advocates on behalf of policyholders on regulatory matters before the state Department of Insurance. State Farm last year originally asked Poizner to lower rates by about $88 million, Heller said. Consumer Watchdog argued that a $350-million reduction would be justified, and Poizner approved a cut of $219 million. "Even with this rate decrease," Heller said, "State Farm customers will be paying more than they should be for the auto coverage they are getting."

Seeking An Insurance Policy - On Regulation

Fri, 15 May 2009 09:45:35 PDT

"The federal government should oversee insurance," U.S. Rep. Paul Kanjorski (D-PA) said yesterday as he convened another House hearing on how to regulate risk. But what if the new federal insurance watchdog set up rules and rates that were weaker than the protections some states now give consumers? That's what happened in the banking business, where credit card lenders used federal regulation to preempt consumer-protection laws in states such as Pennsylvania 30 years ago. Insurance activists like Douglas Heller of Consumer Watchdog worry that that'll happen in their industry, too. Kanjorski has attracted more campaign money from insurance people - a half-million dollars, by Heller's count - than any other House member in the last two election cycles.

State Farm To Cut Car Insurance Rates For Calif.

Thu, 14 May 2009 17:43:13 PDT

Doug Heller, the executive director of Consumer Watchdog, said State Farm proposed last year to lower auto insurance rates by 3.2 percent or about $88 million as required by state law. Heller said his Santa Monica-based group challenged the proposal, arguing the company was relying on one year's worth of data for determining its loss trends, which are used to predict future losses and to set the rate. Heller said insurance providers were previously required to consider three years' worth of data on losses, but Poizner loosened the rule last year.

Insurers Contributed $35.7 Million To Members of Congress Since 2005

Thu, 14 May 2009 07:46:00 PDT

Auto, home, business and life insurance companies contributed $35,743,017 million to members of Congress during the last two election cycles, according to an analysis released today by the nonprofit, nonpartisan Consumer Watchdog. About $5 million went to members of the House subcommittee holding a hearing Thursday entitled "How Should the Federal Government Oversee Insurance?"

California Court: Safeco Must Disclose Surcharges

Fri, 08 May 2009 15:28:08 PDT

LOS ANGELES, CA -- A group of California attorneys have won a battle with Safeco Insurance Co. over surcharges the company was charging customers. A state appellate court decision allows policyholders to have their day in court, said Harvey Rosenfield, the author of Proposition 103, which Safeco allegedly violated.

Consumer Advocates Ask Gov. Crist To Veto Home Insurance Deregulation

Wed, 06 May 2009 13:16:00 PDT

Four consumer advocacy groups implored Gov. Charlie Crist today to veto a bill that would allow large insurers to charge essentially unregulated rates. "This bill is an invitation for insurers to game the Florida regulatory system and abuse consumers," said officials from the Consumer Federation of America, Consumer Watchdog, Center for Economic Justice and United Policyholders in a letter to the governor. "No price can be too high, no discrimination can be found unfair if a policy is issued under these terms."

Florida Legislature sends home insurance deregulation bill to Gov. Crist

Wed, 06 May 2009 12:39:00 PDT

In recent years Floridians have seen the worst of the insurance industry. From lousy hurricane claims handling to price gouging, dumping customers and defiance of state orders. It got so bad with Allstate, that the company was barred from doing business...

Court: Class Members Must Be Disclosed

Tue, 05 May 2009 13:45:00 PDT

Sued Companies Must Disclose Class Members, Court Says

Now, lawyers suing Safeco can proceed with demands for a list of California residents who were "ripped off by the defendants," said Harvey Rosenfeld, counsel for Santa Monica-based Consumer Watchdog. "After 7 years of winning delays in the court Safeco is out of legal options. I think they are going to have to face the facts and issues refunds for consumers," said Rosenfeld.

Safeco Must Disclose Who It Surcharged for Auto Insurance, Court Rules

Fri, 01 May 2009 13:05:00 PDT

Lawsuit Seeking Refunds for Violations of Proposition 103 Will Proceed

Santa Monica, CA – Safeco Insurance Company will be required to disclose which customers it surcharged due to their lack of prior continuous automobile insurance coverage, the California Court of Appeal in Los Angeles has ruled. Plaintiffs allege that such unapproved and undisclosed surcharges violate Proposition 103, the landmark insurance regulation initiative approved by California voters in 1988.

Health insurers' insider power play in California

Wed, 29 Apr 2009 14:42:00 PDT

The shameful way a legislative committee vote went down in California yesterday tears the veil off how health insurance companies and HMOs will fight in Washington against tough, honest health care reforms. I thought I knew how Sacramento worked; I had trouble even believing this one. And you'll see below why you should go to Consumer Watchdog and tell us your stories about outrageous premium increases for health insurance.

Mercury Insurance, Asm Joe Coto protest their own hearing

Wed, 29 Apr 2009 12:13:00 PDT

In one of the weirder moves I've seen over the past decade-plus that I've been going to Sacramento, Assemblyman Joe Coto and Mercury Insurance did not show up for the Judiciary Committee hearing of their bill (AB 1054) yesterday.

Sacramento: Insurer refunds, HMO premium regulation, recission bills face test

Tue, 28 Apr 2009 04:15:00 PDT

Today, Consumer Watchdog will be in Sacramento to stop Mercury Insurance's latest assault on insurance reform Proposition 103 -- legislation that precludes California's insurance commissioner and judges from ordering refunds. Also on the table is legislation to regulate HMO premiums and prevent capricious HMO policy cancellations.

Keep Insurance Regulation In State Hands

Fri, 24 Apr 2009 12:34:00 PDT

"Allowing insurers to pick their regulator, just like AIG did, will negate hard-won consumer rights laws and destroy state-based oversight," Carmen Balber of Consumer Watchdog pointed out. "That web of state insurance laws, which the insurance industry has long decried as complicated and anti-competitive, withstood the test of fire by keeping insurance products and companies stable throughout this financial crisis."

Insurance And The Feds

Fri, 24 Apr 2009 11:57:00 PDT

RE: ''Regulate Me, Please,'' by Tom Wilson, the chairman of Allstate (Op-Ed, April 16).

What the insurance industry really wants is to escape tough state rules, like those that prohibit excessive profit, overhead and executive salaries in California, or mandate an affordable lifeline auto insurance program for low-income drivers. Our consumer group intervened before the California insurance commissioner to force Allstate to lower its homeowner's and auto insurance rates by $500 million last year because of strong state laws that Mr. Wilson hopes to evade.