On the Texas Insurance Commissioner's resignation: Good Riddance

[johncoby2]

Good Riddance

This week Jose Montemayor, announced we would not seek a forth term as Commissioner of the Texas Department of Insurance. During his tenure at TDI homeowner insurance rates have doubled, sometimes tripled, and policy coverage has been reduced. Given his record on consumer protection and fairness for all citizens of Texas, Montemayor doesn't deserve a fourth term, but the citizens of Texas deserve an explanation.

The Commissioner has done little if anything to represent and protect the consumers of Texas. In 2001 after hearing from hundreds of homeowners on mold contamination, he allowed the industry to remove it from their policies without one single penny of rate deduction in our policies.

Promising rate reductions he allowed the use of "pick and choose" HO-A policies with foundation, water, and sewer damage as optional coverage. Instead of a rate reduction for less coverage, our rates were increased to buy back the coverage lost through the use of these policies.

He supported massive insurance reform during the 2003 Legislation session while our rates continued to rise. The reforms did not include a mandatory reduction in rates or any regulation of the industry. Instead the reforms did little to reduce rates or hold the industry accountable. All while our rates continued to rise.

After the session Montemayor continued his service to the industry allowing the use of credit scoring over the objections of consumer organizations. Insurance companies can now raise rates based upon a consumer's bad credit, but had no plan to reduce rates based upon good credit.

He supported massive tort reform for the insurance industry limiting or eliminating our rights to the justice system and hold corporations accountable for defective products. He supported limits on medical malpractice awards, modifying our Constitution with promises of lower medical malpracticei nsurance which would be passed on to consumers and yet not one single cent of rate relief was realized by consumers.

This week the Bush Administration has halted the search for weapons in Iraq. With this, Texans have learned two clear undeniable facts: there are no weapons of mass destruction in Iraq, and Texas insurance rates have continued to rise with less policy coverage during the Commissioners tenure.

No matter how the insurance industry or Governor Perry spins the Commissioners accomplishments, the fact remains our rates have doubled, tripled, and our policy coverage has been reduced.

In Texas we have a saying "Don't let the door hit you on the way out." Unfortunately it applies today. We wish the Commission luck in the future.

--
John R. Cobarruvias
Homeowners Against Deficient Dwellings
[e-mail]
14646 Cardinal Creek Ct
Houston, TX 77062
281-486-5203

Cobarruvias, President of Homeowners Against Deficient Dwellings Texas, is a consumer advocate for homeowners and has testified on insurance, homebuilding, and tort reform bills at the Texas Legislature.

[sonias]

1. Actually we do want the door to hit him on the way out

Because he deserves to get spanked for the horrible job he did for Texans. Montemayor was the insurance industry patsy. He did nothing to help average Texans on insurance issues. We got screwed, rates never came down, and businesses made off like bandits. They got everything they wanted.

I expect that his next job will be lobbying the Texas Legislature for some of these same insurance industries if he doesn't go work for Texans for Lawsuit Rform or some other sham front for business. That's another reason I want the door to hit his fat ass on the way out. He's just going for that revolving door, coming back to the capital with a new hat on.

Sonia