Fort Worth Star-Telegram, Texas, Watchdog column [Fort Worth Star-Telegram, Texas]
By Dave Lieber, Fort Worth Star-Telegram, Texas | |
McClatchy-Tribune Information Services |
Previously, I heard success stories: Aggrieved customers filed complaints against insurers, the department contacted the insurers, and often enough, Texans got their money.
Lately, consumers tell me the opposite: Their complaints against insurance companies are declared without merit and dismissed.
I checked. The dollar amount that the department says it worked to restore to Texans after their claims were denied or low-balled has dropped in one year from
Add to that a decision -- apparently by Insurance Commissioner
After The Watchdog complained, the names were put back online.
Is the department becoming less consumer-friendly?
Fair question, and one that is getting attention with recent homeowners insurance rate hikes, such as
Kitzman also didn't object this year to a
The issue also came up recently after Kitzman, at the insurance industry's request, created two fraud prosecutor positions in
Will they go after customers who cheat companies, companies that cheat customers or both?
Keeping consumers and businesses on an equal footing is the job of the state commissioner,
He remembers going to work each morning and seeing a line of insurance company representatives waiting to see staffers who were "bombarded by the industry presence."
Any similar bombardment from consumers? "Nothing," said Hunter, now director of insurance for the
"There's not much pressure from the public," he said. "You really have to be an advocate if you want to balance the scales. Most insurance commissioners just go along with whatever the pressure is, and the pressure is all from the industry."
Yet "the first responsibility of an insurance commissioner should be to protect the public. The industry can pretty much take care of itself."
"Since taking office last year,
I sent Winslow's statement to the department. It did not respond, but officials sent me records showing insurance companies' requests for homeowners rate increases.
Since Kitzman took office, companies announced 91 rate increases, including 27, 29 and 44 percent. Kitzman rejected three, records show.
Winslow and other critics point out that
That's not what
In many cases now, companies need only inform the department of plans to raise rates. After the increase, the commissioner can rule whether the rates meet legal requirements. (Many other states employ that "file-and-use" system, although in some a commissioner must approve rates before increases take effect.)
The department cited in a strategic plan last year that it must "ensure rates are not excessive, inadequate or unfairly discriminatory, while assuring companies are financially sound." Spokesman
While Kitzman has been mostly hands-off with the rate increases, she shifted the budget to make room for fraud units that go after consumers who file false claims, agents who break the law and, sometimes, insurance companies that rip off consumers.
Since the first
In a big case announced this month,
"It's not trying to protect companies," he said. "It's dealing with crimes that have been under the radar for a long time. A lot of district attorneys don't have the time or expertise. In many of these cases, these are high-dollar crimes where consumers are getting ripped off."
Yes, that's true. But the industry has the
On their own, consumers can't take on insurance companies that cheat.
State Rep.
Because of that, Smith said, "There is a reason to be concerned about the possibility of individuals being appointed who are beholden to or biased in favor of insurance or anti-consumer interests."
Smith said he was not specifically talking about Perry and Kitzman but about the general appointment process.
Sunday: The
Twitter @DaveLieber
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