Texas Department of Insurancewww.tdi.state.tx.us - Consumer Helpline 1-800-252-3439
Texas Department of InsuranceSummaries of the News Releases for 1997 follow. News Release Date:12/22/1997 Texans who can´t get health insurance because of their medical history will have a source of coverage when the Texas Health Insurance Risk Pool opens for business after the first of the year. "This is a milestone for Texans who have gone without health insurance because poor health made them uninsurable," said Commissioner Elton Bomer. "We owe the pool´s board of directors a big debt of gratitude for working hard to get the pool up and running by the Legislature´s January 1 deadline." The 75th Legislature in 1997 passed House Bill 710 by Rep. Kip Averitt and Sen. David Sibley, both of Waco, activating the pool. Bomer appointed the pool´s board and approved its plan of operation and rates. People who want to request information or apply for coverage can call the pool´s administrator toll-free at 1-888-398-3927, starting Monday, January 5, 1998. They also can seek coverage through licensed insurance agents. Before then, people can call the Texas Department of Insurance´s toll-free Consumer Helpline (1-800-252-3439) to get on a list to receive the pool´s application forms and brochures. The pool will sell two major medical plans that differ only in their deductible amounts and out-of-pocket maximums. Both are "preferred provider" plans. Such plans offer financial incentives to use doctors and other medical providers on the pool´s provider network. Patients are free ContinueNews Release Date:12/19/1997 Banks in Texas cities of any size may obtain insurance agents' licenses to sell annuities under interim guidelines that Insurance Commissioner Elton Bomer approved late Thursday. Ann Continue News Release Date:12/18/1997 Texas Insurance Commissioner Elton Bomer today lowered auto liability insurance rates for "high risk" drivers in the Texas Automobile Insurance Plan Association (TAIPA) by an average of 3.9 percent. The rate reduction is similar to that recommended by administrative law judges who heard testimony on setting the new rate. TAIPA requested a 22 percent increase. When TAIPA's optional coverages that include personal injury protection and uninsured/underinsured motorist coverage are included, the overall change is a 3.9 percent increase. TAIPA had requested an overall rate increase of 29.9 percent. The new rates take affect March 1, 1998. Approximately three-fourths of drivers assigned to TAIPA carry only mandatory liability coverage. The number of drivers in TAIPA has been declining since 1995, with less than 2 percent of the state's drivers remaining in the Plan. For many drivers who have been turned down for coverage in the standard market, TAIPA is a last resort for obtaining the liability insurance required by Texas law. TAIPA assigns drivers to various insurance companies, which may charge only the rates set annually by the Commissioner. A majority of drivers assigned to TAIPA are considered "high risk" because of poor driving records or no prior insurance coverage. Bomer has been instrumental in reducing the number of drivers in TAIPA through a mandatory take-out plan that r Continue News Release Date:11/26/1997 LOCAL ANGLE FOR AUSTIN MEDIA The Texas Department of Insurance (TDI) is taking an innovative approach to informing Austin consumers about a state program to help people who can't find insurance for their homes. Billboards advertising TDI's residential property insurance Market Assistance Program (MAP) will go up Monday (December 1) at three Austin locations: Cesar Chavez and Chalmers, Airport and Kirk, and 3402 East 7th. The message: "CAN'T BUY HOME INSURANCE? CALL NOW! 1-888-799-MAPP. TEXAS DEPARTMENT OF INSURANCE." Similar billboards also will go up in Houston on Monday and are scheduled for the Lower Rio Grande Valley starting January 15. The billboards, costing about $2,000 each, will stay up for three months. Additional outreach will include paid advertising in neighborhood and/or minority newspapers and TDI participation in community events. The success of the Austin, Houston and Valley campaigns will determine whether TDI orders billboards in other cities. A 1995 bill sponsored by Senator Rodney Ellis and Representative Harold Dutton, both of Houston, directed TDI to establish the MAP. "The MAP is an important program that the Legislature created to combat insurance availability problems in the inner city," said Commissioner Elton Bomer. But the response has been low, particularly in Austin, and we want to make sure we're doing everything we can to spread the Continue News Release Date:11/26/1997 LOCAL ANGLE FOR HOUSTON MEDIA The Texas Department of Insurance (TDI) is taking an innovative approach to informing Houston consumers about a state program to help people who can't find insurance for their homes. Billboards advertising TDI's residential property insurance Market Assistance Program (MAP) will go up Monday (December 1) at three Houston locations: East Freeway at West Oates, East Freeway at Stonewall and the Intersection of Cullen and Calhoun. The message: "CAN'T BUY HOME INSURANCE? CALL NOW! 1-888-799-MAPP. TEXAS DEPARTMENT OF INSURANCE." Similar billboards also will go up in Austin on Monday and are scheduled for the Lower Rio Grande Valley starting January 15. The billboards, costing about $2,000 each, will stay up for three months. Additional outreach will include paid advertising in neighborhood and/or minority newspapers and TDI participation in community events. The success of the Houston, Austin and Valley campaigns will determine whether TDI orders billboards in other cities. A 1995 bill sponsored by Senator Rodney Ellis and Representative Harold Dutton, both of Houston, directed TDI to establish the MAP. "The MAP is an important program that the Legislature created to combat insurance availability problems in the inner city," said Commissioner Elton Bomer. But the response has been low, particularly in Houston, and we want to make sure we're Continue News Release Date:11/19/1997 With El Niño predicted to give the entire state significantly above-normal rainfall through April of next year, Insurance Commissioner Elton Bomer is urging Texans to consider whether they need federal flood insurance. Dr. H.M. van del Dool, chief of the prediction branch of the Climate Prediction Center for the National Weather Service in Camp Springs, Maryland, told the Texas Department of Insurance (TDI) that Texas can expect an 80 percent chance of above average rainfall amounts. Bomer said if the heavy rainfalls do come, homeowners should be "If there is the slightest chance of your home being flooded by rising waters, don't count on your homeowner's policy to bail you out," Bomer said. "The only insurance that covers your home and its contents from flood waters is flood insurance offered through the National Flood Insurance Program." Bomer warns flood waters can be unpredictable. "You don't have to live near a creek or river or in a low-lying area to become a flood victim," Bomer said. "At least a third of all flood claims come from homeowners who live outside high-risk flood areas." Deluges like the 29 inch rainfall that fell on Albany, Texas, on August 4, 1978, caused flooding in places that had never flooded before. El Niño, which refers to a massive warming of coastal waters in the eastern Pacific which contributes to significant weather changes around the world, also was active in 1978 Continue News Release Date:11/14/1997 State District Court Judge Jeanne Meurer of Austin today issued a temporary restraining order requiring the Mission Cooperative Group of Kingwood and other defendants to stop selling car insurance policies in violation of Texas licensing and consumer protection laws. Judge Meurer scheduled a temporary injunction hearing for November 20, 1997, at 2 p.m. The temporary restraining order, obtained by Attorney General Dan Morales' Office on behalf of the Texas Department of Insurance (TDI), will remain in effect until then. Named in the restraining order are Mission Cooperative Group; its founder and chief administrator, Dr. John C. Detloff of Kingwood, a licensed chiropractor; United Exchange Group of Fort Worth, the marketing arm of Mission Cooperative; David Lee Swank of Humble, a trustee of United Exchange Group; Jerry Glynn Smith of Corsicana, a licensed life insurance agent who allegedly recruits "distributors" (agents) for Mission Cooperative; and Thomas Sutton of Conroe, an alleged associate of Detloff in Mission Cooperative. Mission Cooperative Group is not related to Mission American Insurance Co., Mission American Life Insurance Co., Mission Insurance Company of Texas Inc., Mission Life Insurance Co., Mission National Life Insurance Co. or Mission Premium Finance Co., which are licensed entities in Texas. TDI's Insurance Fraud Unit began investigating Mission Cooperative in August. Continue News Release Date:11/13/1997 Recent news reports about insurers seeking higher auto liability rates for sport utility vehicles (SUVs) and pickup trucks have stirred up calls to the Texas Department of Insurance (TDI) from motorists wondering when their insurance rates are going up. The answer: It's not going to happen anytime soon for most drivers. Actuaries for Farmers Insurance Group and Progressive Corporation say the heavier SUVs and pick-up trucks inflict more damage and injuries in accidents, resulting in unusually expensive claims. Thus, they say, the heavier vehicles' drivers should pay higher liability premiums. TDI actuaries note that according to news reports, while SUVs inflict greater damage on smaller vehicles, there are fewer injuries to occupants of the larger vehicles. This suggests that there could be off-setting credits in coverages such as uninsured motorists, personal injury and collision. Conversely, if there are surcharges levied on larger vehicles, there should be off-setting credits for smaller vehicles. "Safety is a big reason why Texans spend as much money as they do on SUVs and pickup trucks," Texas Insurance Commissioner Elton Bomer said. "There won't be any increase in liability rates until I see hard proof that the increased risk can be demonstrated." Under Texas law, rate-regulated auto insurance companies must follow TDI's uniform classification system, which allows only t Continue News Release Date:11/13/1997 Special interest for West Texas, Dallas STEPHENVILLE -- Richard Sommers Moreland Jr., a former Dallas insurance agent convicted of theft last August in Yoakum County, faces four more prison terms and restitution to three elderly victims totaling $490,000 under terms of a plea agreement in an Erath County district court. Moreland pled guilty Wednesday (November 12) to three third-degree felony counts of securing the execution of a document by deception and one second-degree felony count of theft of property of the value of $20,000 or more but less than $100,000. Under terms of a plea agreement with the Erath County District Attorney's Office, District Judge Donald Jones sentenced Moreland to three 10-year prison sentences for the third-degree counts and a 20-year sentence for the second-degree felony. These sentences, the maximums possible, will run concurrently with a 10-year term imposed by a Yoakum County jury that found Moreland guilty last August of theft by deception and securing execution of a document by deception. Moreland also was ordered to pay a $1,000 fine on each count, plus restitutions of $85,000 to an Erath County woman and a total of $405,000 to two elderly victims in Yoakum County. The Texas Department of Insurance Fraud Unit initiated an investigation of Moreland in March 1996 after receiving reports that he had approached widows of former insurance clients and convin Continue News Release Date:11/10/1997 Commissioner Elton Bomer has fined the Texas Workers' Compensation Insurance Fund, the state's largest workers' comp insurer, $175,000 for claim data reporting errors involving about 18,000 employers statewide. Bomer signed the order late Friday. The reporting errors involved only "experience rated" employers with annual workers' compensation premium of $5,000 or more. The errors overstated the losses of some employers and understated the losses of others. Inaccurate loss information could have resulted in inaccurate premiums for the affected employers. Businesses that paid too much in 1995, 1996 and 1997 because of the mistakes will receive premium refunds from the workers' comp insurers that wrote their policies for each of those years. Under Texas Department of Insurance rules, insurers must reimburse the employers without any action required of the employers. Amounts to be refunded are not known at this time and will vary by employer. The 18,000 employers affected by the reporting mistakes include about 6,000 that are still insured by the Fund and 12,000 that changed to other carriers. The $175,000 fine is one of the largest in Texas history against an insurer for a statistical reporting violation. Bomer imposed the fine because of the harm caused by the reporting errors and because of the Fund's failure to install internal controls that might have caught the problem. Bome Continue News Release Date:11/6/1997 Commissioner Elton Bomer has approved rules carrying out a new law that gives patients the right to binding, independent medical review of HMO and insurance company treatment denial decisions. Bomer signed the rules late Wednesday afternoon and immediately qualified the Texas Medical Foundation of Austin as the first independent review organization (IRO). The Texas Department of Insurance expects to refer the first case for review before the end of this week. "Independent review is a major breakthrough in fair play for patients," Bomer said. "It gives patients a quick and unbiased way to resolve medical treatment disputes without going to court or struggling with a corporate bureaucracy." The new rules provide for certification of IROs consisting of physicians and other providers to conduct expert reviews of the HMO and insurer decisions upon request. "I appeal to physician groups and other providers to join this needed reform by applying immediately for certification as IROs," Bomer said. "Only with a good strong list of IROs will independent review do the job envisioned by the Legislature." Senate Bill 386 of the 75th Legislature mandated creation of the IRO system. The same bill allows medical malpractice suits against HMOs and health insurance companies. With certain exceptions, patients must obtain independent review before filing such malpractice suits. HMOs and insurers Continue News Release Date:11/6/1997 Local Angle for Wichita Falls Law enforcement officers with the Wichita County Criminal District Attorney's office and the Texas Department of Insurance have arrested a Wichita Falls insurance agent on a first degree felony theft charge. Rupert William Franklin, 63, was arrested at his residence Wednesday morning. As of Thursday morning, Franklin was behind bars in the Wichita County Jail. Wichita County Justice of the Peace Michael L. Little set Franklin's bond at $500,000. Franklin, a licensed insurance agent, is accused of misappropriating $446,000 from seven elderly North Texas residents through the sale of bogus annuities. Following Franklin's arrest, officers executed a search warrant at the Franklin O'Dell Insurance Agency, 4309 Jacksboro Highway. "Licensed agents who prey upon the elderly must understand that such conduct will not be tolerated in Texas and will be vigorously prosecuted," said Associate Commissioner Linda Bayless, director of TDI's Fraud Unit. TDI has initiated action to revoke Franklin's license to sell insurance. TDI's Fraud Unit is assisting the Wichita County Criminal District Attorney's Office in the criminal prosecution of the case. Continue News Release Date:11/5/1997 Local angle for Arlington, Dallas and Fort Worth Glen Mark Barling, a former Arlington insurance agent who fled Texas after his indictment for car insurance premium theft five months ago, has been arrested by the Las Vegas, Nevada, police department's Fugitive Unit. A Travis County grand jury indicted Barling, his son and his daughter-in-law in May on organized crime charges. The indictment alleges misapplication of $12,986.73 in premiums between June 1994 and April 1997, causing "substantial risk" for 24 people who thought they were buying car insurance. The Texas Department of Insurance (TDI) received about 120 complaints against the Barlings. The allegedly stolen premiums averaged about $400 to $500 per person. Arlington police also received numerous complaints that the Barlings pocketed consumers' premiums. Barling, 44; Michael Jason Barling, 24; and Patricia Barling, 24, all of Arlington, were named in a first-degree felony indictment charging them with organized criminal activity. Glen Barling also was charged with unauthorized (unlicensed) insurance and falsifying his agent license application by failing to disclose an indictment for possession of cocaine with intent to deliver. Arrest warrants based on the indictments were issued May 28. Travis County grand juries have statewide venue over insurance fraud cases. At the time of Barling's arrest, he had five outstanding Continue News Release Date:11/3/1997 What has happened in the benchmark rate process?
Who are the major participants in the benchmark auto rate case?
What are recommended changes in the benchmark auto rates?
Continue News Release Date:11/3/1997
News Release Date:10/31/1997 Houston Local Interest Houston police officers have arrested a former Houston insurance agent who faces five felony indictments, including four for unauthorized insurance that are the first ever issued in Harris County. Mandy Udoh, 42, is suspected of pocketing auto insurance premiums. Don Samuels, an investigator with the Texas Department of Insurance Fraud unit, says Udoh may have many victims. "Right now, we've confirmed more than a dozen Houston motorists who have been victimized by Udoh," Samuels said. "There may be many, many more." The Nigerian-born agent had his insurance license revoked by Insurance Commissioner Elton Bomer in April 1996. Samuels said Udoh has set up several offices since then, staying just ahead of authorities. Udoh's last known business address was 6633 Hilcroft in Houston. He has used the names of Continental Insurance Agency and Paramount Insurance Agency when selling auto insurance in Houston. A Harris County Grand Jury returned indictments of unauthorized insurance and theft against Udoh on October 28. Udoh was arrested Thursday and his bond set at $10,000. Anyone who may have been victimized by Udoh is urged to contact Don Samuels in TDI's Fraud unit at 512-463-6492. Continue News Release Date:10/27/1997 Commissioner Elton Bomer signed an agreed order today requiring Government Employees Insurance Co. (GEICO) to refund about $9.6 million to an estimated 170,000 Texas customers for alleged overcharges on auto liability insurance over a period of more than two years. The Texas Department of Insurance staff alleged that GEICO's rates for 1995, 1996 and 1997 improperly included a subsidy for certain high-risk policies and failed to grant the full rate reductions Bomer ordered as a result of tort reform. A 1995 law passed by the Texas Legislature and signed by Governor George Bush in 1995 directed Bomer to see that Texas consumers receive the full benefit of tort reform laws designed to reduce excessive judgments and needless lawsuits. "Insurance companies and the public should know that I am determined to pass through to policyholders the full benefits of tort reform, as mandated by law," Bomer said. "I have ordered TDI actuaries to monitor subsequent rate filings carefully to make sure consumers receive the full benefits they deserve." Refunds from GEICO, will average $56, with a range from a few dollars to more than $100, depending on the premium paid and the duration of coverage. New business customers with effective dates on or after June 30, 1995, up to and including June 16, 1997, are entitled to refunds. Renewal customers with effective dates on or after August 14, 1995, up to and including Ju Continue News Release Date:10/27/1997 The state's new Health Insurance Risk Pool took a major step Tuesday toward meeting its January 1 start-up date to offer coverage to previously uninsurable Texans and their families. Insurance Commissioner Elton Bomer approved the Plan of Operation submitted by the pool's nine-member board of directors. "The board members aren't wasting any time, and this is good because there's a real need for these policies," Bomer said. "I'm confident the pool will make the January 1 deadline set by the Legislature." Texans wanting notice when the pool starts selling policies can call the Texas Department of Insurance at 1-800-252-3439. In the past five months, 1,260 people have called to have their names placed on the notification list. The pool board issued invitations on Monday for bids on the pool's management services contract. The board soon will seek proposals for an administrator to do such things as review insurance applications, collect premiums and pay claims. In addition, the board has contracted with an actuarial firm to help it price the individual health insurance benefit plans it will offer to eligible Texans. Premiums the first year may be up to 150 percent of a "standard risk rate" based on what other insurance companies charge for individual health policies. Rates in subsequent years may be up to twice the standard risk rate. The Legislature last spring passed House Bill Continue News Release Date:10/23/1997 East Texas businesses and consumers will save millions of dollars on liability insurance next year -- including about $17.5 million on auto policies -- thanks to statewide tort reform rate cuts ordered this week by Insurance Commissioner Elton Bomer. Bomer and Governor George W. Bush delivered that message today at a news conference held at Good´s Pharmacy in Tyler. On Tuesday, Bomer ordered an estimated $610.2 million in 1998 liability insurance rate cuts statewide to assure that tort reform directly saves money for consumers and businesses. Added to amounts Bomer ordered over the previous two years, tort reform rate reductions total about $1.5 billion. Almost half of the 1998 savings -- $268.4 million -- will go to Texas drivers. As a result of the order, benchmark rates for private passenger automobile bodily injury (BI) liability insurance will be 9.2 percent lower in 1998 than they would be without tort reform. The three-year total for BI is $624.8 million. The Texas Department of Insurance estimates auto liability savings at Rates for businesses´ general liability insurance will be 14 percent below what they otherwise would be, for a projected statewide saving of $143. News Release Date:10/20/1997 Commissioner Elton Bomer today ordered an estimated $610.2 million in 1998 liability insurance rate cuts -- with almost half going to individual drivers -- to assure that tort reform directly saves money for consumers and businesses. Bomer announced his decision at a Houston news conference with Governor George W. Bush. As a result of the order, benchmark rates for private passenger automobile bodily injury (BI) liability insurance will be 9.2 percent lower in 1998 than they would be without tort reform. "This rate reduction due to tort reform will put more than a quarter of a billion dollars in the hands of Texas motorists," Bomer said.
" The rate cuts I am ordering today guarantee that the money saved from fewer lawsuits and more reasonable settlements go where the Legislature and Governor Bush intended: to the insurance policyholders of Texas," Bomer said. Bomer´s order sets tort reform rate reduction factors that will apply to new policies and policy renewals effective on and after January 20, 1998. The factors affect only liability insurance, which is the kind of insurance that pays when a policyholder is sued in a tort action for negligently injuring somebody else. Tort reform savings for ind News Release Date:10/17/1997 Commissioner Elton Bomer today reduced Texas Windstorm Insurance Association ("Windpool") rates for wind and hail coverage on commercial buildings by 3 percent, a saving of $300,000 per year for coastal businesses. The rate reduction takes effect January 1, 1998. The Windpool (formerly called the Texas Catastrophe Property Insurance Association or "Catpool") provides wind and hail coverage for coastal buildings that insurance companies will not insure voluntarily. The Windpool is available for buildings in the 14 coastal counties and part of Harris County on Galveston Bay. Bomer's rate reduction is smaller than the 7.6 percent recommended by the Windpool itself. TDI staff analysis indicated that the Windpool came up with a deeper rate cut largely by using a proprietary computer model for predicting hurricane losses. TDI staff believe the results produced by the model, when compared with those derived from traditional actuarial methods, understate the losses that might result from hurricanes on the Texas coast. Undue reliance on use of the model, as the Windpool filing proposed, would be contrary to statutory requirements because state law requires the Commissioner to consider 30 years' actual storm loss experience in setting Windpool rates. The Commissioner said it was important to have rates that are sufficient to build the Windpool's reserves against future storm losses. The rates he approved w Continue News Release Date:10/13/1997 Texas Supreme Court Justice Greg Abbott will be the keynote speaker in Houston Friday, October 24, at a free "Consumer Help Day" for Texans with disabilities, caregivers of children with special needs and their advocates. Technical experts from four state agencies will provide individual assistance with: Health insurance and HMO issues, complaints and information. Accessing state services when conventional health coverages are unavailable, including program referrals and assistance with specific problems. Self-advocacy and ideas for locating assistance. The Houston Mayor's Committee on the Employment of People with Disabilities is sponsoring the event from 9 a.m. to 12:30 p.m. October 24 in the first-floor auditorium at the OneCare Health Industries Building (formerly Houston Lighting and Power Energy Center), 6700 West Loop South (Loop 610 and Bellaire). The facility and parking are accessible for persons with special needs. Justice Abbott's comments are scheduled for 9:15 a.m., followed at 10:15 a.m. by one-on-one assistance from staff experts with the Texas Department of Insurance, Texas Rehabilitation Commission, Texas Department of Human Services and Texas Department of Health. Space for the event is limited. To register, please call Kathleen DeSilva, Houston Mayor's Committee, at 713-797-5243, or send registration information by fax to 713-797-5289. To register by mail, send your reque Continue News Release Date:10/3/1997 Commissioner Elton Bomer has ordered a halt to a Dallas-area insurance lead card operation whose "National Processing Center" mailings looked like they came from Social Security and specifically targeted senior citizens. Bomer's cease-and-desist order to Thomas K. Lawless of Forney and his employees became final on September 26. Lawless failed to appear at an enforcement hearing and did not contest Bomer's order. Lawless was in the business of generating leads that were sold to insurance companies and insurance agents. His customers included companies selling funeral-related life insurance policies. The leads were generated by mailings, including a postage-paid business reply card, that appeared to come from Social Security. Bomer determined that Lawless was doing an unlicensed and illegal insurance business. "As far as I'm concerned, if you're soliciting customers for insurance companies, you're in the business of insurance and should be licensed," Bomer said. "Unlicensed insurance businesses are illegal, and I'm going to do everything I can to shut them down." The Commissioner also determined that Lawless was guilty of deceptive acts and practices. Among other things, his order found that Lawless' mailings were disguised as federal government correspondence in violation of Texas Department of Insurance rules. Social Security already had asked Lawless to delete refe Continue News Release Date:9/29/1997 A Texas Department of Insurance investigation has paid off with prison time for a New Jersey man convicted of white-collar crimes that included the attempted use of fake securities to buy a Texas insurance company. U. S. District Court Judge Jerome B. Simandle of the District of New Jersey sentenced Patrick Gawrysiak, alias Patrick Gray, on Friday to 48 months in prison, five years' probation after release and $50,000 restitution. Gawrysiak pled guilty in May to 17 counts of mail, wire, insurance fraud and bank fraud. "Fighting insurance fraud of all kinds is our top priority at the Texas Department of Insurance, and I'm proud that alert members of our Financial staff and Insurance Fraud Unit played a key role in halting Mr. Gawrysiak's criminal activities," said Commissioner Elton Bomer. Gawrysiak, 36, of Hackensack, N.J., allegedly specialized in charging business people large amounts of money for access to various kinds of funding, which in reality were non-existent. In 1995, he provided $5.5 million in fictitious "Penske Group" corporate bonds to a group of investors who wanted to buy a 49 percent interest in Texas-based Gulf Atlantic Life Insurance Co. The investors apparently were unaware the bonds were fake. In an exchange of assets, Gulf Atlantic would be out $2 million in cash and T-bills and would be the new owner of a worthless asset, the "Penske Group" bonds. A TDI Continue News Release Date:9/29/1997 Insurance Commissioner Elton Bomer is considering mandatory discounts for hail-resistant roofs that could save some Texans as much as 35 percent on their homeowners insurance and 46 percent on dwelling/extended coverage insurance, depending on where they live. The proposal would classify roof coverings on a 1 through 4 scale, with a Class 4 roof covering offering the best hail protection and the highest discounts. The discounts would vary in eight different regions across the state for homeowners coverage and six regions for dwelling/extended coverage. Areas with the worst history of hail storms would be offered the highest discounts. Bomer will hold a public hearing on the matter at 10 a.m. December 3, at the Texas Department of Insurance in Austin. Bomer said the discounts would offer a unique opportunity for consumers. "If this rule is adopted, it would be the first time homeowners anywhere will have the opportunity to shop for impact- resistant roofs and save money on their property insurance rates," Bomer said. "Homeowners who have seen their property rates go up because of hail storms could see their rates go down if they purchase roofs that can withstand hail storms." According to TDI staff and the Residential Property Insurance Loss Mitigation Advisory Committee, the proposed discounts or credits would apply to the basic premium for homeowners policies and to the exte News Release Date:9/25/1997 Consumers with home insurance problems -- including inner-city residents having difficulty finding homeowners coverage -- can get help by visiting the Texas Department of Insurance booth at the Austin Home and Garden Show this weekend. The home show will be in the Austin Convention Center from 2 p.m. to 9 p.m. on Friday, 10 a.m. to 9 p.m. on Saturday and 11 a.m. to 6 p.m. on Sunday. The admission charge is $6. Staff from the Department's Consumer Protection Division and its residential property insurance Market Assistance Program (MAP) will be on hand to answer questions and distribute consumer publications, including homeowners insurance price comparison guides. The MAP was created last year to help Texans who live in underserved areas find insurance for their homes. To qualify for assistance, a home must be in one of 427 listed ZIP codes and have been turned down for coverage by at least two licensed insurance companies. The MAP has a toll-free number, 1-888-799-MAPP, that people can call for help in finding home insurance. Travis County ZIP Codes eligible for the MAP are 78701, 78702 and 78703. For further information call the Texas Department of Insurance Public Information Office at (512) 463-6425 or send a note to PIO@tdi.state.tx.us Continue News Release Date:9/11/1997 Local Angle for Bryan-College Station Joyce Marie Martin, 52, of Bryan has entered a plea of no-contest to felony charges accusing her of filing fraudulent insurance claims supported by statements of a non-existent doctor. Martin's agreement to a plea bargain interrupted the second day of her jury trial, on Wednesday. She entered the plea after the state had made its opening argument and presented its first witness. State District Judge John Delaney of Bryan scheduled sentencing for October 1. At that time he will decide whether to accept the plea bargain agreement, which calls for Martin to serve two concurrent five-year prison sentences. Martin pleaded no-contest to two third-degree felony charges of securing the execution of a document -- in this case, a claim check -- by deception. She was charged with filing fake credit disability insurance claims worth about $8,500 with Universal Underwriters Life Insurance Co. and a $5,000 personal injury protection (PIP) auto insurance claim with the Millers Insurance Group of Fort Worth. Credit disability insurance pays a debt that the policyholder is unable to pay because of sickness or injury. PIP is a no-fault auto coverage that pays medical bills and replaces wages lost because of an accident. Martin purchased the credit insurance when she bought an automobile. Universal Underwriters became suspicious about Mar Continue News Release Date:9/5/1997 Local angle for Houston, Dallas, Austin, Arlington, Corpus Christi and Harlingen The Texas Department of Insurance will be at seven home shows and neighborhood events in September and October to help people who are having trouble finding insurance for their homes. " Our Market Assistance Program is starting to show results," said Commissioner Elton Bomer. "I hope people who've run into problems finding home insurance will drop by our booths at these shows and learn how we can help." The events are: Houston House Beautiful Show, September 4-7 Neighborhood Connections Conference, Houston, September 6 Houston Home Show, September 12-14 Dallas Home and Garden Show, September 12-14 Austin Home and Garden Show, September 26-28 South Texas Realtor Convention XIV, Corpus Christ, October 3 Jackson Street Jubilee, Harlingen, October 18 In addition, the City of Arlington has agreed to insert MAP flyers in October utility bills sent to 75,000 households. Twenty insurance companies and more than 400 local agents participate voluntarily in the MAP, which the 1995 Legislature created to address home insurance availability problems. The MAP is available to people in 427 ZIP Codes identified by TDI as underserved areas for residential property insurance. A home denied coverage by at least two insurance companies is eligible for the MAP. One turndown may be a Continue News Release Date:9/3/1997 A 44-year-old man has been arrested in Lubbock County on seven indictments alleging that he not only continued to sell life insurance after his license expired but also pocketed most of the money he collected from unsuspecting clients. Domingo Thompson Davila Jr. specialized in selling policies to Hispanics in the Lubbock area, but his license from the Texas Department of Insurance (TDI) expired on August 9, 1995. In cases where he kept the money, the purchasers were left without life insurance coverage. The Lubbock Police Department received the original complaint about Davila's alleged activities and requested assistance from the Texas Department of Insurance in Austin. Don Samuels of TDI's Fraud Unit went to Lubbock, investigated the case along with local police and turned the evidence over to the office of Lubbock County District Attorney William C. (Bill) Sowder for presentation to the Grand Jury. Lubbock police arrested Davila on Monday based on seven indictments that the Grand Jury issued on August 27, including five for unauthorized insurance sales, one for tampering with a governmental record and one for aggravated perjury. The Grand Jury enhanced all seven indictments to second degree felonies because of a prior felony conviction in Lamb County for possession of a controlled substance. Davila's bail was set at a total of $35,000. Continue News Release Date:9/3/1997 Complaint Form Texans who believe they've been mistreated by an insurance company can now file a complaint over the Internet. Insurance Commissioner Elton Bomer announced today that the Texas Department of Insurance offers a new on-line complaint process via the agency's Internet home page at www.tdi.state.tx.us. Each year TDI's Consumer Protection Program assists consumers with more than 16,000 complaints, ranging from an insurer's failure to pay a claim to refusal to cover a costly medical procedure. As a result, Texans received $14.8 million in additional claim payments in 1996 and $1.2 million in refunds. " This new on-line complaint system is one more way we are making state government more responsive and speeding up a process that at times must deal with life-and-death situations," Bomer said. For those who have copies of insurance policies, letters, claim information or other supporting documents to send, it's best to print out the complaint form and mail or fax all of the material together to: Consumer Protection (111-1A) P.O. Box 149091 Austin, Texas 78714-9091 Fax - (512) 475-1771 In addition, supporting documents may be scanned and sent as e-mail attachments to: ConsumerProtection@tdi.state.tx.us. TDI's web site offers a wide-range of Continue News Release Date:8/29/1997 Commissioner Elton Bomer today signed an agreed order that requires three Allstate companies to refund $42.7 million to an estimated 750,000 consumers who allegedly were overcharged for auto liability insurance. The refund, negotiated with Allstate by Texas Department of Insurance staff attorneys and the state's Office of Public Insurance Counsel, is the largest ever ordered against an automobile insurer by a Texas insurance commissioner. Refunds will range from approximately $5 to $100 per customer. Amounts will vary according to the premium paid and the duration of the coverage. " I'm pleased that Allstate agreed to end this controversy by reducing its rates and refunding the amounts its policyholders were overcharged," Bomer said. "This case should underline the need for companies to exercise great care in calculating the rates they charge consumers. I want the industry to understand clearly that the Texas Department of Insurance will be challenging rate filings which are not accurate or in compliance with the law." " I also want to commend the Office of Public Insurance Counsel for diligently representing consumer interests by petitioning for and pressing for premium refunds." The order signed by Bomer, Public Insurance Counsel Rod Bordelon and Allstate's attorney ended a case that began when TDI actuaries found discrepancies in auto liability insurance rates filed by Allstate on Jun Continue News Release Date:8/29/1997 PLAINS -- A Yoakum County jury today assessed Richard Sommers Moreland Jr., a former insurance agent from Dallas, 10 years in prison for stealing $92,000 from one elderly West Texas woman. Two other elderly woman testified he also took money from them, making a total of about half a million dollars. Yesterday, the jury found Moreland guilty of theft by deception and securing execution of a document by deception. Today's punishment decision ended a five-day trial prosecuted by Yoakum County Criminal District Attorney Richard Clark along with Special Prosecutors Dale Barron and Gregg Cantrell, attorneys with the Texas Department of Insurance's Fraud Unit. Clark appointed Barron and Cantrell as special prosecutors in one of the first uses of a new TDI policy by Commissioner Elton Bomer designed to offer specialized help to local district attorneys who want to intensify prosecution of insurance fraud in their counties. The case was tried before Judge Kelly Moore in 121st District Court in Plains. Cynthia Kellough, then with TDI's Fraud Unit and now with Early Warning, initiated an investigation of Moreland in March 1996 after receiving reports that he had approached widows of former insurance clients and convinced them to withdraw funds from annuities. The investigation showed Moreland persuaded them to "invest" in companies he allegedly owned and then converted the funds to his personal use. The thr Continue News Release Date:8/28/1997 Commissioner Elton Bomer today approved a new rule designed to improve low-income Texans' access to affordable car insurance by requiring insurance companies to offer more favorable premium installment plans. The rule will take effect January 1, 1998. On a $600, six-month policy, for example, the rule would lower the maximum down payment from $240 to $200 and allow equal installment payments throughout the term of a consumer's car insurance policy. The purpose of the rule is to make the installment plans of standard and preferred insurers more competitive with those of premium finance companies, which are used by agents who specialize in covering high-risk drivers at unregulated -- and usually much higher -- rates. " Working people who live from paycheck to paycheck often must spread their car insurance premiums to fit them into their budgets," Bomer said. "I suspect that many good drivers buy their coverage from high-risk agents because of the smaller down payments and longer payout periods offered by premium finance companies. This rule will broaden their choices to include insurance companies that offer lower rates. Another effect, I hope, will be fewer uninsured drivers." The new rule allows insurance companies to require down payments no greater than 16-2/3 percent on 12-month policies and 33-1/3 percent on six-month policies. That compares with the current maximums of 25 percent on 12-month Continue News Release Date:8/26/1997 The five Enterprise Rent-A-Car companies operating in Texas will refund about $1.7 million to about 150,000 consumers who bought supplemental auto and truck liability insurance from them in Texas between January 1, 1995, and July 10, 1997, Insurance Commissioner Elton Bomer announced today. The refunds are part of a consent order between the Texas Department of Insurance and Enterprise Leasing of Houston; Enterprise Leasing Co. of DFW, based in Irving; Enterprise Rent-A-Car Co. of Texas, based in San Antonio; Enterprise Leasing Co., based in Edmond, Okla.; and Enterprise Leasing Co. - West, based in Mesa, Ariz. The order settles TDI enforcement actions against the firms over the sale of supplemental liability insurance in Texas without a license. In recent weeks, Bomer announced similar consent orders with Hertz, Avis, Alamo, Thrifty, Dollar, National and Budget rental car firms that will bring about $11.3 million in restitution to about 870,000 customers of those companies. Today's action brings the totals to $13 million for 1,020,000 customers. Like the seven firms that previously agreed to consent orders, the Enterprise firms denied all TDI allegations and maintained they have done nothing wrong. According to the order, the dispute with the Enterprise firms centers on the sale of supplemental liability protection, a product that provides third party liability protection to the renter to a combined singl Continue News Release Date:8/21/1997 Typical Rates for Major Texas Cities - Brick | Frame | Rental Percentage Changes by Rating Territory Percentage Changes by Line of Coverage Residential Property Rate Case Fact Sheets Insurance Commissioner Elton Bomer today adopted in large part administrative law judges´ recommendations that will allow homeowners insurance benchmark rates to climb a statewide average of 14.2 percent, effective February 1, 1998. The recommendations, without adjustments, would have resulted in a 14.8 percent increase.
News Release Date:8/21/1997 Commissioner Elton Bomer has taken the first step toward making Texas' Health Insurance Risk Pool a reality by appointing a nine-member board of directors that includes medical people, insurer representatives and individuals who might buy insurance from the pool. Bomer signed orders appointing the board members late Wednesday afternoon. A bill passed by the 75th Legislature activated the pool as insurer of last resort for people having difficulty finding individual health insurance because of their preexisting medical conditions. The bill requires the pool to open for business by January 1, 1998. " We at the Texas Department of Insurance hear almost daily from self-employed people and others who are desperately seeking individual health coverage," Bomer said. "The new pool offers these individuals hope of enjoying the security of health insurance that most of us take for granted." Bomer appointed the following as the pool's board of directors: Phyllis A. Gordon, San Antonio, a clinical nurse specialist at the University Health System. Former State Representative John J. Gavin, Wichita Falls, a retired insurance agent who served as chairman of the House Insurance Committee from January 1985 until January 1991. Robert Harold Emmick Jr., M. D., of College Station, an employee of Third Coast Emergency Physicians of Austin. Kristel Crumpler of Bowie, a special education teache Continue News Release Date:8/21/1997 Zone Territory Homeowners Renters Territory Seacoast 1 5.1% -7.5% 1 8 4.7% -20.1% 8 9 13.9% -12.6% 9 10 6.0% -23.6% 10 11 3.5% -8.8% 11 _____ _____ 5.5% -9.4% Central-S 5 10.1% -6.6% 5 6 8.0% -4.0% 6 7 6.1% -4.0% 7 12 11.0% -5.9% 12 13 12.0% -13.7% 13 14 11.0% -3.2% 14 15C 9.9% -8.3% 15C _____ _____ 10.1% -6.3% Central-N 2 22.8% -6.7% 2 3 25.0% -4.0% 3 4 21.3% -16.6% 4 16C 19.3% -6.9% 16C 17 23.9% Continue News Release Date:8/21/1997 What has happened in the benchmark rate process so far? The benchmark rate case was heard by administrative law judges (ALJs) with the State Office of Administrative Hearings during three days of hearings that began Tuesday November 19, 1996. The ALJs (Gary W. Elkins/Earl A. Corbitt) sent their recommendation to Commissioner Elton Bomer on May 14, 1997. On July 2, Bomer held a public meeting to hear final arguments from the parties. On August 21, Bomer announced new benchmark rates to go into effect with coverage purchased or renewed on or after February 1, 1998. Companies have up to 90 days after February 1, 1998, to implement new rates. Who are the parties in the rate case? _____________________________________________________________________________ Parties Contact Phone Number The Office of Public Insurance CounselOPIC) Rod Bordelon 322-4143 Texas Insurance Organization (TIO) Jay Thompson 472-8800 State Farm Companies Susan Conway 495-8400 Farmers Companies Jess M. Irwin III 472-8355 _____________________________________________________________________________ New benchmark rates and average rate increase recommendations Continue News Release Date:8/21/1997 Central- Central- North/ Coverage Seacoast South North NW Statewide Homeowners 5.5% 10.1% 23.1% 21.9% 14.2% Tenant Homeowners -9.4% -6.3% -7.4% 10.6% -7.0% Fire-Dwellings n/a n/a n/a n/a -5.6% Extended Coverage- Dwellings -12.8% -18.2% +18.3% -11.1% -5.5% Additional Extended 22.9% -21.0% 25.0% -9.6% 7.9% Coverage Physical Loss Form 19.8% -3.5% 5.0% -9.9% 7.0% All Coverages Combined 11.8% Continue News Release Date:8/21/1997
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News Release Date:8/19/1997 Texas Insurance Commissioner Elton Bomer today announced his approval of the sale of the Texas Workers' Compensation Facility to Swiss Re. Beginning today, Swiss Re will assume the workers' compensation claims of approximately 10,000 Texans who have been injured on job sites dating back to the 1950s. Swiss Re is the second largest reinsurer in the world with a stock market value of over $25 billion. Commissioner Bomer said privatizing the Facility is a good move for Texas. "By selecting Swiss Re, we have taken one more step in reducing state government and a reliance on tax dollars," Bomer said. The Facility was created by the Texas Legislature in 1953 as the Texas Workers' Compensation Assigned Risk Pool. During a 1989 special session of the Texas Legislature, lawmakers enacted significant changes to the workers' compensation system including changing the name of the Pool to the Facility. In 1991, lawmakers passed legislation creating the Texas Workers' Compensation Fund and ordered the Facility to stop writing workers' compensation policies at the end of 1993. The 75th Texas Legislature mandated that the Facility be privatized by the end of August 1997 or transfer its assets and liabilities to the Texas Property and Casualty Insurance Guaranty Association. The Facility's Governing Committee selected Swiss Re as the buyer because of the company's financial strength and strong commitment to the i Continue News Release Date:7/31/1997 Five rental car firms will refund about $5.3 million to about 385,000 consumers who bought auto liability insurance from them in Texas in recent years, Insurance Commissioner Elton Bomer announced today. The refunds are part of separate consent orders between the Texas Department of Insurance and Alamo, Thrifty, Dollar, National and Budget rental car firms, plus their insurers. The insurers are: National Union Fire Insurance Co. for Alamo, Empire Fire & Marine Insurance Co. for some of the Dollar licensees and Philadelphia Indemnity Insurance Co. for the remaining companies. The orders resolve TDI allegations against the firms over the sale of liability insurance in Texas without a license. On June 20, Bomer announced similar settlements with Hertz and Avis, which will bring more than $6 million in restitution to almost half-a-million customers of those companies. Like Hertz and Avis, the five car rental firms and the insurers agreed to resolve the matter while maintaining they had done nothing wrong. A new law passed by the Texas Legislature and effective on September 1, 1997, will settle the dispute by setting up a method for rental car companies or their franchisees to be licensed to sell insurance related to their rentals. Refunds will vary, depending on the company and the type, price and amount of insurance purchased, ranging from a low of $2.05 to a high of $7.85 for each day a customer pa Continue News Release Date:7/11/1997 If your business could use a boost, plan to attend the August 14 "Business Opportunities Fair" sponsored by the Texas Department of Insurance (TDI). TDI is looking for printing and information services vendors, especially historically underutilized businesses (HUBs), as well as firms providing various professional services from accountants to attorneys. The two-hour program will include information on the state's bid process, HUB purchasing goals and TDI's purchasing needs. In addition, staff will announce bid invitations and help register qualified participants as certified HUB vendors. Qualified HUB vendors include businesses owned by minorities and women. The Business Opportunities Fair begins at 9:30 a.m. Thursday, August 14, in Room 100 of the William P. Hobby State Office Building, 333 Guadalupe, in Austin. Seating is limited, so please register by August 8. Mail, fax or e-mail your name, company, mailing address, daytime phone, fax number and/or e-mail address to: Victoria Cavazos Consumer Protection MC 111-1A P.O. Box 149104 Austin, TX 78714-9104 Fax - 512-305-7463 E-mail - ConsumerProtection@tdi.state.tx.us You also may register on-line at: www.tdi.state.tx.us/consumer/hub.html. For more information, contact Regina Durden, TDI Purchasing Manager, at 512-463-6174. Continue News Release Date:7/11/1997 Texas Insurance Commissioner Elton Bomer today approved rules that order insurance companies to refund an estimated $272 million in workers' compensation premiums to Texas employers. The refunds will go to businesses that purchased retrospectively rated ("retro-rated") workers' compensation insurance policies between May 1, 1991, and December 31, 1993. Retrospectively rated policies offer employers substantial premium savings as an incentive for workplace safety. In the late 1980s and early 1990s the Texas Workers Compensation Insurance Facility ran large deficits as claims greatly exceeded premiums. Insurance companies were required to pay for the deficits. Starting in 1991, insurers were allowed to pass through the operating results of the Facility to retro-rated policyholders. Rules in place at the time only addressed how to pass through deficits, because a surplus was not expected. In August 1991, the law was amended to require insurance companies to pass through portions of both surpluses and deficits to all retro-rated policyholders. The rules adopted today implement the pass-through for years when a surplus occurred. Although the Facility stopped writing insurance on December 31, 1993, its surpluses and deficits continue to be updated based on new information on dollars paid to on-the-job accident victims with long-term disabilities and medical needs. Testimony during a public he Continue News Release Date:7/10/1997 The Texas Department of Insurance today scheduled a hearing on possible restitution for an estimated 3,000 to 4,000 Farmers Insurance Group customers who allegedly were overcharged for car insurance because they did not meet the group's prior insurance requirements. Staff attorneys said restitution should average about $100 apiece, for a total of $300,000 to $400,000. The hearing will be before an administrative law judge for the State Office of Administrative Hearings (SOAH) at 9 a.m., November 12, 1997, in the Stephen F. Austin State Office Building, 17th and Congress, Austin. In their hearing notice, the staff attorneys allege Farmers violated TDI rules that prohibit insurers from considering an applicant's lack of prior insurance in determining his or her auto liability premium unless the applicant has driven without insurance in Texas for more than 30 days out of the preceding 12 months. Like many insurance groups, Farmers assigns policyholders to one of several companies based on their perceived risk of having accidents and claims. In Texas, Farmers assigns "preferred" customers to Mid-Century Insurance Co. of Texas, "standard" customers to Texas Farmers Insurance Co. and "high risk" customers to Farmers Texas County Mutual Insurance Co. Starting July 24, 1996, Farmers began requiring three consecutive years of prior insurance to qualify for coverage at its lowest rates in Mid-Cen Continue News Release Date:7/3/1997 Commissioner Elton Bomer today adopted rules that, for the first time in Texas, prohibit insurance companies from refusing to insure homes just because they are old or have low values. The rules take effect September 1, 1997. As explained in comments published with the rule, companies also will be prohibited from canceling or non-renewing existing policies because of a home's age or because it falls below a certain minimum value. " We know that many insurers use underwriting guidelines that exclude homes over a certain age or below a certain value, regardless of their condition," Bomer said. "I hope these rules make it easier for people in older communities, rural areas and low-income neighborhoods to find the insurance they need. Insurers should consider each house individually and not assume it is a poor risk just because it is old or has a value below some arbitrary standard." The rules apply to all forms of residential property insurance, including homeowners, renters and dwelling policies. They do not apply to farm and ranch or farm and ranch owners policies, which the 1997 Legislature reclassified as commercial property insurance. Under the new rules, an insurance company may continue to deny coverage because of a home's physical condition, including its wiring, plumbing, roof, heating and air conditioning or such factors as major structural problems. The Texas Department of Insur Continue News Release Date:7/1/1997 Starting today, Texans living in 427 "underserved" ZIP Codes can call the Texas Department of Insurance directly on a toll-free telephone line to get help in finding home insurance. The Department is changing its residential property insurance Market Assistance Program (MAP) to reduce costs, make it easier for consumers to use and encourage more agents to get involved. " Since we started the MAP last October, traffic has been much lighter than the complaints about availability problems led us to expect," said Insurance Commissioner Elton Bomer. "We hope the changes we're making will enable the MAP to serve more consumers." The MAP serves consumers in 427 ZIP Codes identified as having potential home insurance availability problems. It attempts to match applicants with at least one of the 20 insurance companies and groups that have agreed to participate voluntarily. To qualify, a home must be insurable, located in an "underserved" ZIP Code and denied coverage by at least two licensed companies. The MAP has relied exclusively on agents to originate applications and submit them to TDI. Information from eligible applications went on a computer bulletin board accessible to the participating companies. The computer bulletin board will be discontinued on June 30. TDI will deal directly with consumers through a toll-free MAP hotline, 1-888-799-MAPP (6277), beginning today. Three staff members w Continue News Release Date:7/1/1997 Local angle for Corsicana and Tyler Former insurance agent Clay Gordon Plaisance of Tyler has been convicted on charges that he stole Medicare supplement and long-term care insurance premiums from senior citizens in East Texas. Plaisance pled guilty to theft, a third-degree felony. State District Judge Diane DeVasto of Tyler sentenced him to a 10-year probated prison sentence on June 26, 1997. Judge DeVasto made payment of $128,729 in restitution a condition of Plaisance's probation. Assistant District Attorney Sonny McAfee prosecuted the case, which was referred to the Smith County DA's office by the Insurance Fraud Unit of the Texas Department of Insurance. " The Smith County District Attorney's office deserves praise for its successful prosecution of Clay Plaisance for this unconscionable breach of the trust that exists every time consumers hand over their hard-earned money to insurance agents," said Insurance Commissioner Elton Bomer. Plaisance, 36, was a licensed insurance agent until his license expired in 1994. He allegedly sold Medicare supplement and long-term care insurance policies in 1994 to elderly women in Navarro and Smith Counties. According to investigators, Plaisance accepted the women's monthly premiums but never sent the money on to insurance companies to buy coverage. Instead, Plaisance pocketed the premiums for his own use. Case records list 15 victims, i Continue News Release Date:6/30/1997
Insurance Commissioner Elton Bomer today adopted a new coastal building code designed to reduce potential hurricane losses by strengthening construction standards. The new code applies only to construction -- including bui News Release Date:6/30/1997 New state and federal laws making health insurance more accessible to Texans take effect Tuesday, July 1. Additional measures, primarily a Health Insurance Risk Pool for "uninsurable" people and their families, should be in place by the end of 1997. The catalyst for the changes was the federal Health Insurance Portability and Accountability Act of 1996 -- usually called the Kassebaum-Kennedy Act -- which takes effect Tuesday. The 75th Legislature passed HB 710 and HB 1212, both by Rep. Kip Averitt of McGregor and Sen. David Sibley of Waco, to bring Texas into full compliance with Kassebaum-Kennedy. Although these bills and Kassebaum-Kennedy take effect on July 1, their effect on particular health plans may come later. They apply immediately to new health plans started on or after July 1. For existing health plans, they take effect on a plan's first renewal date on or after July 1. The July 1 health insurance laws do the following: Give workers with pre-existing medical conditions credit for their time in a previous health plan. This is known as health insurance "portability." Make virtually all individual hospital, medical and surgical policies -- including major medical plans -- guaranteed renewable. This means an insurance company or HMO cannot refuse to renew coverage except for such things as fraud, nonpayment of premiums or violation of health plan terms. Enable businesse Continue News Release Date:6/23/1997 Hertz and Avis will refund about $6 million to almost one-half million consumers who bought auto liability insurance from the car rental companies in Texas in recent years, Insurance Commissioner Elton Bomer announced today. The refunds are part of a consent order between the Texas Department of Insurance and Hertz and its insurer, Reliance Insurance Co., and another consent order between TDI and Avis and its insurer, Continental Casualty Co. The orders settle TDI enforcement actions against Hertz and Avis over the sale of liability insurance. While agreeing to the orders, the companies maintained they had done nothing wrong. The orders cover liability insurance sales by Hertz between July 1, 1992, and August 31, 1997, and by Avis between September 1, 1993, and August 31, 1997. A new law passed by the Texas Legislature and effective on September 1, 1997, sets up a method for rental car companies or their franchisees to be licensed to sell insurance related to their rentals. Refunds to more than 312,000 Hertz customers will range from $1.42 to $3.42 for each day they paid for liability insurance, depending on the price of the insurance at the time of sale. The total Hertz refund is expected to be more than $4.2 million. Refunds to about 150,000 Avis customers will range from $3.05 to $4.05 per day and TDI estimates will exceed $1.7 million. Bomer said the reimbursements from Avis are hig Continue News Release Date:6/6/1997 Commissioner Elton Bomer has fined a Bermuda-based medical malpractice insurance operation $235,000 for violating a previous order to stop doing business in Texas without a license. The fine is the largest ever levied by a Texas Insurance Commissioner for unauthorized insurance. Bomer fined Professional Liability Insurance Co. Ltd. (PLIC) $210,000; its agent, Physicians Malpractice Analysts (PMA) of Atlanta, Ga., $22,500; and Dorothy Fuqua of Atlanta, an independent contractor working for PMA, $2,500. An administrative law judge recommended the fines after reviewing the evidence from a three-day hearing in January. The Texas Department of Insurance's Insurance Fraud Unit complained that the malpractice insurer had violated a cease-and-desist order issued by Bomer two years ago. "Unauthorized insurance is an insidious brand of insurance fraud, and unauthorized insurers are not welcome in Texas," Bomer said. "We thought we had an honest agreement that this group would stop writing insurance. They reneged and now must pay a high price for breaking their word." Bomer signed the original cease-and-desist order on February 3, 1995. The order also revoked Fuqua's Texas license as a nonresident insurance agent. PLIC, PMA and Fuqua all consented to the order, in writing. Despite the agreement, PLIC failed to cancel all of its Texas policies and refund the doctors' premiums. In addition, PLIC con Continue News Release Date:5/30/1997 State Insurance Commissioner Elton Bomer said today the Texas Department of Insurance (TDI) will operate a consumer-help line throughout the weekend to answer questions and provide assistance to policyholders who suffered losses in Tuesday's tornado activity in Central Texas. Consumers may call the Department at 463-6515 locally or toll-free long-distance at 1-800-252-3439. Insurance specialists will take calls from 8 a.m. to 5 p.m. Saturday and noon to 5 p.m. Sunday. The Consumer Hotline normally operates weekdays 8 a.m. to 5 p.m. to respond to all types of questions and complaints involving insurance. In addition, TDI insurance claims specialists are working directly with victims in the three areas most affected by the tornado activity. They are available at Jarrell High School, at the emergency services tent at Sycamore and Firefly in Cedar Park and at the Pedernales Emergency Services Station at 801 Bee Creek Road in the Hazy Hills area near Spicewood. Other TDI specialists are contacting residents in the affected areas to offer help. "The specialists can answer questions for policyholders and try to help work out any disputes between policyholders and insurance companies," Bomer said. In most cases, the companies perform well in disasters such as this. But disagreements do arise. Consumers who are unhappy with their insurance company's response in this emergency can contact a specialist in the area f Continue News Release Date:5/29/1997 A Livingston woman has been convicted of defrauding her insurance company out of more than $6,300 by taking the blame for a one-car accident -- even though she was miles away at the time. Judge Robert Trapp of the 411th Judicial District Court sentenced Teresa Burch, 26, on Wednesday to two years in a state jail, probated for five years, plus a $250 fine, $6,371 in restitution to the insurer, a $50 payment to Crime Stoppers and 120 hours of community service. A jury in Livingston found Burch guilty of securing execution of a document by deception. The case was investigated and referred for prosecution by the Insurance Fraud Unit of the Texas Department of Insurance. Burch had a car insurance policy through Lone Star General Agency Inc. The policy specifically excluded Burch's common-law husband, Marlon Livingston, from coverage. Exclusion meant the policy would not pay for an accident if Burch let Livingston drive her car. Despite the exclusion, Livingston was driving Burch's car when it ran off Highway 59 in Polk County and hit a tree at about 10:45 p.m., November 12, 1994. A Department of Public Safety trooper's accident report said Livingston was alone in the car. Other witnesses confirmed that Livingston was the driver. Burch subsequently filed a claim with Lone Star General Agency, saying that she was driving at the time of the accident. Lone Star issued checks totaling $6,371 for Continue News Release Date:5/29/1997 State Insurance Commissioner Elton Bomer today assigned Texas Department of Insurance (TDI) claims experts to three Central Texas areas hit by tornadoes on Tuesday. The two-member teams are stationed at: Jarrell High School. Faubion Elementary School at 1209 Cypress Creek Road in Cedar Park. (If the Red Cross center at the school closes, the TDI team will move to the Cedar Park Police Station at 1400 Whitestone Blvd.) Pedernales Voluntary Fire Department Station on Bee Creek Road right off Pace Bend Road. One member of the team will work in each center while the other contacts people in damaged neighborhoods. Both will offer advice and help in filing claims on damaged property. At Jarrell, both team members will work at the high school until one is able to have direct access to the damaged area. " We want to make sure those people with insurance claims are able to file them and collect on them as soon as possible," Bomer said. "I appreciate the fact that many insurance companies already have claims people assigned to the tornado-hit areas. The first thing people should do is to contact their insurance agent or company." Continue News Release Date:5/29/1997 State Insurance Commissioner Elton Bomer today assigned Texas Department of Insurance (TDI) claims experts to three Central Texas areas hit by tornadoes on Tuesday. The two-member teams are stationed at: Jarrell High School. Faubion Elementary School at 1209 Cypress Creek Road in Cedar Park. (If the Red Cross center at the school closes, the TDI team will move to the Cedar Park Police Station at 1400 Whitestone Blvd.) Pedernales Voluntary Fire Department Station on Bee Creek Road right off Pace Bend Road. One member of the team will work in each center while the other contacts people in damaged neighborhoods. Both will offer advice and help in filing claims on damaged property. At Jarrell, both team members will work at the high school until one is able to have direct access to the damaged area. " We want to make sure those people with insurance claims are able to file them and collect on them as soon as possible," Bomer said. "I appreciate the fact that many insurance companies already have claims people assigned to the tornado-hit areas. The first thing people should do is to contact their insurance agent or company." Continue News Release Date:5/27/1997 Auto Rate Guides | Homeowner Rate Guides Handy new rate guides that can help Texans save money on both automobile and homeowners insurance are now available from the Texas Department of Insurance (TDI). To order either or both guides free of charge, call TDI´s automated toll-free order line at 1-800-599-SHOP (7467). For Austin residents, the number is 305-7211. Be prepared to give your address and the name of your county. The guides also are available on the Department´s Internet home page at www.tdi.state.tx.us. For the first time the rate guides also include complaint measures, financial strength ratings and market share for the insurance companies. "A lot of people think insurance rates are all about the same. This can be a costly misconception," said Insurance Commissioner Elton Bomer. "Rates for both auto and homeowners insurance can vary widely. Shopping around can save money."
News Release Date:5/27/1997 English Version
" Un gran número de personas piensan, que los precios de seguros son todos casi iguales. Esta es una idea equivocada que puede costarles mucho dinero", indicó el Sr News Release Date:5/22/1997
The rule would, for example, drop the maximum down payment on a $600 six-month policy from $240 to $150 and allow five months instead of three to pay the balance. Bomer said the rule would make installment plans of standard and preferred companies competitive with those of premium finance companies used by some high-risk companies, whose unregulated rates are usually much higher. " I´m concerned about recent data suggesting that a disproportionately high percentage of inner-city residents buy their car insurance from high-priced companies that exist mainly to serve high-risk drivers," Bomer said. "I think this has less to do with race or ZIP Code than it does with simple economic reality for working people who live from paycheck to paycheck. This rule is a substantive, serious effort to open the door to less expensive car insurance for Texans whose driving records qualify them for it. I hope this rule also will reduce the number of uninsured drivers on Texas roadways." Under the proposed rule, down payments could be no greater than 12.5 percent on 12-month policies and 25 percent on six-month policies. That compares with the current maxi ContinueNews Release Date:5/16/1997 Go to Hurricane Link Special Interest: Texas Gulf Coast Hurricane preparedness information provided each year by the Texas Department of Insurance to news media along the Texas Gulf Coast is available for the first time on the Internet. This year TDI used the preparedness material and additional information, graphics and brochures to create a new "HurricaneLink" on the department's web site. The web site, which went on-line in January, can be reached at www.tdi.state.tx.us. " Effective hurricane preparation requires that TDI do all it can to inform Texans about preventing property damage, as well as how they can make claims filing easier after a major storm," Insurance Commissioner Elton Bomer said. "Our new HurricaneLink helps us do that. It pulls together in one Internet site the kind of practical information the public will need if our luck runs out and a hurricane hits Texas this year." Experts predict seven hurricanes this year, three of them major. None of the nine named hurricanes of 1996 reached the Texas coastline. The state has gone seven years without a hurricane. It's been almost 14 years since Hurricane Alicia, the last major storm. HurricaneLink also includes interesting facts about past Texas hurricanes and Internet links to other hurricane-related web sites such as the Stat Continue News Release Date:5/15/1997 Commissioner Elton Bomer will hold a May 22 public hearing on proposed rules designed to strengthen construction standards and reduce potential hurricane insurance losses in coastal areas within 25 miles of the Gulf of Mexico. The hearing will be at 9 a.m. in Room 100 of the William P. Hobby Jr. State Office Building, 333 Guadalupe, Austin. It will wrap up a public comment process that included 16 hearings in major coastal communities. If adopted, the proposed standards would take effect June 1, 1998, unless otherwise directed by the Legislature. The standards would govern Texas Department of Insurance (TDI) inspections of construction in 14 coastal counties and portions of Harris County eligible for coverage by the Texas Catastrophe Property Insurance Association, also known as the "Catpool." The TCPIA provides wind and hail coverage for homes and businesses that insurance companies won't cover voluntarily. To qualify for TCPIA coverage, structures built or modified after January 1, 1988, must be inspected by a TDI inspector or a registered professional engineer and certified by the Department. The proposed rules would use the following three-tiered approach for applying the new code. The most stringent "prescriptive requirements" of the proposed new code -- including shutters or other protections against flying debris -- would apply in areas seaward of the Intracoastal Canal. The Continue News Release Date:5/15/1997 Beginning May 16, Texas will become the first state to implement a homeowners insurance discount for permanently marking personal property. Homeowners can receive up to a 5 percent reduction on their property insurance. Texas Insurance Commissioner Elton Bomer believes the optional discount gives homeowners an incentive for protecting their property. "Here we have a proven crime prevention program, and now we have a financial incentive for homeowners to put it to use. I hope many property insurers will make the discount available to their customers," Bomer said. Police departments all over the country have been assisting homeowners in marking their property for years, and law enforcement officers say it's about time insurance companies notice that the program is saving them money. " We have seen dramatic cuts in the burglary rates of neighborhoods that have taken advantage of Operation ID," said Officer Chuck Upton, president of the Texas Crime Prevention Association and a crime prevention specialist with the Mesquite Police Department. "Having signs outside a residence indicating all valuable property inside has been marked tells a would-be burglar he'll have a problem trying to sell anything taken from this house." Local law enforcement officers can assist homeowners with marking devices or engravers that etch the letters TX and either the owner's Texas driver's license number followed by DL or Continue News Release Date:5/15/1997 Local Angle for Dallas Media Texas Department of Insurance fraud investigators arrested a former insurance agent and her son Wednesday on charges that they participated in a scheme to defraud insurers by filing claims for auto accidents that never happened. Glenda Jane Hill Williams, 47, and Jason Dee Hill, 23, were arrested. Three other persons also have been charged in connection with the alleged fake accident ring. Affidavits supporting the arrest warrants allege that multiple claims were submitted for the same auto body damage. The attempted fraud amounted to at least $18,000 in automobile property damage and bodily injury liability insurance claims. All five participants in the alleged claim fraud operation were charged with insurance fraud, a state jail felony, and engaging in organized criminal activity, a third-degree felony punishable by two to 10 years in prison and/or a fine of up to $10,000. The Dallas County District Attorney's Office reviewed the affidavits used to obtain arrest warrants for the five persons and will prosecute the cases. Williams is a former insurance agent whose license was revoked by Commissioner Elton Bomer in January for her involvement with an unauthorized insurer. While still licensed, she allegedly obtained auto liability insurance for some of the claimants in the faked accidents. The arrests climaxed an investigation conducted by TDI's In Continue News Release Date:5/13/1997 Local Angle for El Paso, Laredo and Lower Rio Grande Valley Media Commissioner Elton Bomer acted today to halt an unlicensed insurance operation that sold auto liability coverage to Mexican drivers for trips into Texas and stuck at least one Texan with an unpaid accident claim. Bomer issued a cease-and-desist order against U. S. Fire & Casualty Co. Inc., John Reynolds and Mike Reynolds. The operation's purported address was 8530 Wilshire Blvd., Suite 404, Beverly Hills, Calif. This address appears to be only a mail drop. U.S. Fire & Casualty, John Reynolds and Mike Reynolds failed to appear at an April 18, 1997, public hearing before a Texas administrative law judge. Texas Department of Insurance rules authorize the Commissioner to enter a default order finding all allegations true when a respondent in an enforcement action fails to appear in person or through an attorney. TDI's Insurance Fraud Unit has contacted California insurance authorities about U.S. Fire & Casualty, which also is unlicensed in California. " Unauthorized insurance is a crime in Texas, and for good reason," Bomer said. "People who buy it are deceived into thinking it's the real thing. Accident victims almost never collect for their medical and car repair bills. An unauthorized company has passed none of the financial and consumer protection tests that legitimate companies must undergo." People who want to Continue News Release Date:5/7/1997 The operator of an auto glass shop in Farmersville (Collin County) has been indicted on charges he triple-billed an insurance company for replacing the same windshield -- and collected twice before the company noticed the problem. A grand jury in Brenham indicted Mark Eugene Vincent, doing business as Master Auto Glass in Farmersville, on insurance fraud charges. The offense is a state jail felony, punishable by 180 days to two years in a state jail and a fine of up to $10,000. The case was investigated by the Insurance Fraud Unit of the Texas Department of Insurance, which referred it to the Washington County District Attorney's Office in Brenham, the home office of the allegedly defrauded carrier, Germania Fire & Casualty Co. Vincent allegedly replaced the automobile windshield of a Wolfe City (Hunt County) couple in September 1995, installing an ordinary $200 windshield but billing Germania $1,132 for a much more expensive specialty windshield. In May 1996, Vincent allegedly sent in another bill for $1,132, claiming the windshield had been broken a second time. Germania paid both claims but turned Vincent in to the Fraud Unit after receiving a third claim for the same windshield in September 1996 and learning from the policyholder that the windshield had been replaced only once. Continue News Release Date:5/6/1997
Texas averages 132 tornadoes every year and twice as many occur during the month of May than any other month. On May 11, 1953, a tornado touched down on the northern outskirts of San Angelo at 2:30 p.m. Eleven people were killed, 159 injured and damage was estimated at $3 million. Dozens of homes along with a theater and high school were demolished. Two hours later, two hundred miles due east of San Angelo, another tornado plowed through the heart of downtown Waco. In thirty minutes the storm had claimed 114 lives, injured 597 and caused $41 million in damages. Two thousand automobiles, 196 businesses and 150 homes were destroyed. Five hundred downtown businesses required repairs. The Waco tornado and the Goliad tornado of 1902, which also claimed 114 lives, rank as the 10th and 11th deadliest tornadoes in U.S. history. On the evening of May 11, 1970, a tornado with winds in excess of 260 mph hit Lubbock, killing 26 people, injuring 1,500 people and causing damage estimated at $250 million. The funnel carved out a mile-and-a-half-wide path of destruction running ContinueNews Release Date:4/28/1997 Note: Special interest for Corpus Christi Former Corpus Christi insurance agent Grace Alvarado has been sentenced to four years deferred adjudication for continuing to sell insurance after her local recording agent's license was revoked in 1995. Her license was revoked on June 13, 1995, after Insurance Commissioner Elton Bomer found that Alvarado, doing business as Alvarado Insurance Agency, had: Failed on numerous occasions to forward auto insurance premiums to insurers. Illegally withheld money that should have been returned to drivers. Instead, the drivers were misled to believe they had coverage. A joint investigation by the Insurance Fraud Unit of the Texas Department of Insurance and the Travis County District Attorney's Office led to Alvarado's December 18 indictment by a Travis County grand jury for unauthorized insurance. The joint investigation found that Alvarado had continued to accept applications for insurance even after her license was revoked. Investigators found 17 insurance applications signed by the former agent. All but two of the applicants were provided coverage. Alvarado was sentenced in a Travis County district court on April 11 to four years deferred adjudication and ordered to pay a $1,000 fine and $1,608 in restitution. Alavardo also was ordered not to engage in the business of insurance. Continue News Release Date:4/25/1997 Local Angle for Lower Rio Grande Valley Media A Raymondville woman who allegedly sold more than 300 car insurance policies after her agent's license was revoked for stealing premiums has been arrested on felony charges. Ofelia Hernandez, who also is in the bail bond business, was arrested while at the Willacy County courthouse to bail out a client. She was released on $10,000 bond. The arrest warrant was based on a third-degree felony indictment returned by a Travis County grand jury that has statewide jurisdiction over insurance fraud cases. Hernandez' case was investigated by the Insurance Fraud Unit of the Texas Department of Insurance (TDI). The indictment accuses Hernandez, 51, of selling insurance without a license (unauthorized insurance) and lying on applications for agent's, adjuster's, risk manager's and life insurance counselor's licenses. The crimes are third-degree felonies, which carry a maximum penalty of 10 years in prison and a $10,000 fine upon conviction. Hernandez' license to sell auto, homeowners and other property and casualty insurance was revoked on November 29, 1994, based on findings that she had knowingly deceived policyholders and had taken customers' premiums but did not forward them to an insurance company to buy coverage. Since losing her license, Hernandez has collected more than $245,000 in premiums from consumers in the Valley. The F Continue News Release Date:4/25/1997 Local Angle for Dallas, San Antonio and Austin An undercover investigation of fraudulent proof-of-insurance cards in Dallas and San Antonio has climaxed with Travis County grand jury indictments of two insurance agents and a former agent whose license was revoked in 1991. Named in the indictments are: Herbert Shaw, 53, a licensed agent in Dallas, who was charged with tampering with a government record, a state jail felony. Richard Alan Smith, 60, a San Antonio agent also charged with tampering with a government record. Genero B. Toscano Jr., 50, of San Antonio, a former agent. Toscano's license to sell insurance was revoked by the Texas Department of Insurance (TDI) in 1991. He is charged with tampering with a government record and with unauthorized (unlicensed) insurance, a third-degree felony. The joint investigation was conducted by TDI's Insurance Fraud Unit and Department of Public Safety Counterfeit Task Forces in Dallas and San Antonio. Undercover officers bought either cards based on non-existent insurance or cards based on actual policies backdated to show coverage at the time a person received a ticket for driving without the liability insurance required by Texas law. Similar joint sting operations are planned for other Texas cities. People who engage in this kind of criminal activity should be aware that the next time they sell a fake insurance card, Continue News Release Date:4/24/1997 Insurance companies could not legally refuse to insure a home just because of its age or value under new anti-discrimination rules proposed by Commissioner Elton Bomer. The proposal will be published in the May 6, 1997, Texas Register, and could be adopted as early as 30 days after publication. "These rules should go a long way toward eliminating unfair discrimination and promoting the availability of home insurance in older communities and low-income neighborhoods," Bomer said. "A house is not necessarily a poor insurance risk just because it is old or has a value below some arbitrary standard. Insurers should look at each home individually and apply fair guidelines related to the likelihood of fire, water damage and other claims." The proposed rules would allow insurers to deny coverage based on a home's physical condition, including its wiring, plumbing, roof, heating and air conditioning. The Texas Department of Insurance has started a new Voluntary Inspection Program that consumers can use to get a Certificate of Insurability for homes that pass an inspection covering maintenance, roof condition, wiring and other factors related to the risk of claims. A review of company underwriting guidelines on file with the Texas Department of Insurance indicates that most insurers consider a home's age and value when deciding whether to issue a property insurance policy. Allstate, Na Continue News Release Date:4/18/1997 Kaiser Foundation Health Plan of Texas agreed today to drop its lawsuit against the Texas Department of Insurance, pay a $1 million fine and take specific steps to assure high-quality patient care for its 124,000 enrollees. Insurance Commissioner Elton Bomer and Dr. Bill Gillespie, president and medical director of Kaiser Permanente's Texas health care organization, jointly signed an order in which Kaiser consented to the fine and to several quality assurance and financial solvency conditions. By accepting the order, Kaiser Permanente did not admit any wrongdoing or violation of Texas insurance laws. The order probates $250,000 of the fine. Bomer may waive all or part of the $250,000 depending on Kaiser's compliance with the terms of the order. Bomer and Gillespie reached the accord after two days of negotiations at Kaiser's southwestern headquarters in Dallas and in Bomer's office in Austin. " From the beginning, TDI's objective -- and, I believe, Kaiser's as well -- has been to make sure that every Kaiser patient receives topnotch care from a medically and financially sound HMO," Bomer said. Once Dr. Gillespie and I could sit down together away from the superheated rhetoric of the courtroom, it didn't take long to see that we both were on the same page. I've always believed that reasonable people of good will can work out their differences without the need for adversarial proceedings. Today' News Release Date:4/11/1997 A state program that uses a computer bulletin board to help Texans find home insurance enters its third and final phase April 15 with the addition of 75 ZIP Codes, including parts of Waco and dozens of small towns and rural communities. ZIP Codes to be added to the residential property insurance Market Assistance Program (MAP) are in Brown, Callahan, Camp, Coleman, Dimmit, Eastland, Fannin, Frio, Hamilton, Hunt, Lamar, Lampasas, Llano, Limestone, Mason, McCulloch, McLennan, Menard, Mills, Palo Pinto, Red River, Robertson, Runnels, San Saba, Shackelford, Stephens, Taylor, Titus and Zavala Counties. The MAP is mandated by House Bill 1367, the 1995 anti-discrimination measure sponsored by Senator Rodney Ellis and Representative Harold Dutton, both of Houston. " Home owners in rural areas and small towns tell us that finding insurance for their property can be a real chore," said Texas Insurance Commissioner Elton Bomer. "The MAP gives owners of insurable properties a chance to have their homes considered by some of the biggest insurance companies in Texas." Insurance companies representing about 80 percent of the residential property insurance market are participating voluntarily in the MAP by checking the computer bulletin board for homes they might wish to cover. When the phase-in concludes on April 15, the MAP will be available to residential property owners in 427 ZIP Codes that Bom News Release Date:4/11/1997 Insurance Commissioner Elton Bomer today offered the following tips to Texas residents filing insurance claims for damage from storms that caused damage in parts of the Panhandle and West Texas Thursday night:
Be aware that an insurance company cannot discontinue your homeowners or auto policy because of wea News Release Date:4/11/1997 Insurance Commissioner Elton Bomer today offered the following tips to Texas residents filing insurance claims for damage from storms that caused damage in parts of the Panhandle and West Texas Thursday night: Contact your insurance company or agent as soon as possible. To speed claims handling, provide the policy number from the first page of your policy. If your policy was lost in the storm, your agent can look up the information you need. Make temporary repairs if necessary to protect your property from further damage. Do NOT make permanent repairs until an adjuster has inspected the damage. Your policy covers the cost of necessary temporary repairs, so save your receipts for materials and labor. If you can't remain in your home because of damage, your homeowners or renters policy will pay for staying in a hotel, motel or other temporary shelter. If the damage does force you to move, be sure to tell your insurer where you are and how to reach you by phone. Also, leave a note at your damaged residence telling the insurance adjuster how to find you. You probably do NOT need the services of a "public adjuster." If you hire a public adjuster to help with your claim, be sure you understand his or her fee arrangements. Public adjusters usually charge a percentage of your total claim payment. Be aware that an insurance company cannot discontinue your homeowners or auto policy because of weather-re News Release Date:4/9/1997 Residents of seven inner-city ZIP Codes in Fort Worth have until 8 p.m. tomorrow (Thursday) to participate in a special survey on insurance sponsored by the Texas Department of Insurance (TDI). State Insura nce Commissioner Elton Bomer set up the toll-free telephone number -- 1-800-852-5246 -- for a two-week period beginning March 28 especially to gather information on whether residents of high-minority areas in Fort Worth pay more for insurance than other consumers in the city. The survey resulted from a study by the Fort Worth Star-Telegram indicating that residents of those areas are more likely than others to buy costly "high-risk" policies. The survey initially focused on car insurance but was expanded to cover homeowners insurance after many callers showed an interest in this type of policy. So far, more than 150 policyholders have participated in the survey. TDI staff will make a report to Bomer after analyzing the contributed information. Callers to the temporary number should live in Fort Worth ZIP Codes 76102, 76104, 76105, 76106, 76110, 76115 or 76119. Although the special Fort Worth hotline is ending, the Department maintains other permanent toll-free lines for consumers across the state. Consumer brochures -- including rate guides for auto and homeowners and general information about the Market Assistance Program -- can be ordered 24-hours a day by calling 1-800-599-SHOP (7467) and recor News Release Date:4/9/1997 The Texas Department of Insurance issued on Wednesday a list of disciplinary actions taken by Insurance Commissioner Elton Bomer that became final during March. Included are nine agent license revocations and fines totaling $2,054,500.
TEXAS DEPARTMENT OF INSURANCE ORDER DATE Continue News Release Date:4/4/1997 A Dallas insurance agent already under indictment in Yoakum County for defrauding senior citizens has been arrested for taking $82,500 under false pretexts from an 84-year-old woman in Erath County. Richard Sommers Moreland Jr., 37, was arrested in Stephenville on Monday. Bail was set at $100,000. Arrest warrants were issued after a grand jury in Stephenville returned four felony indictments accusing Moreland of theft by deception and securing the execution of documents by deception. Moreland is accused of defrauding an 84-year-old woman by inducing her to write three checks totaling $82,500 to his company, Moreland Financial Insurance Services, in the belief that she was buying insurance. The indictments allege that Moreland used the money for personal expenses instead of obtaining insurance. The checks were written between October 1992 and November 1993. Erath County District Attorney John Terrill obtained the indictment based on evidence developed by investigators for the Insurance Fraud Unit of the Texas Department of Insurance. A joint investigation by the Fraud Unit and the Texas State Securities Board led to the Yoakum County indictments against Moreland in December. He is charged with defrauding two elderly women out of $259,500 by persuading them to invest in Moreland Educational Services Inc. and Moreland Financial Insurance Services Inc. Trial is scheduled to begin on August 25, 1997. Yoakum News Release Date:4/4/1997 About half the calls to a special Fort Worth insurance hotline either come from residents outside the targeted inner-city areas or involve issues unrelated to the survey, the Texas Department of Insurance (TDI) reported today. "That's not necessarily bad," State Insurance Commissioner Elton Bomer said. "We at TDI are always ready to help consumers with insurance problems or provide them with information. But there are other ways they can contact the agency for help." Bomer set up a temporary toll-free telephone number -- 1-800-852-5246 -- a week ago especially to gather information on whether residents of high-minority areas in Fort Worth pay more for car insurance than other consumers in the city. The action corresponded with an article in the Fort Worth Star-Telegram indicating that residents of those areas are more likely than others to buy costly "high-risk" policies. Callers to the temporary number should have a costly "high-risk" auto policy and live in Fort Worth ZIP Codes 76102, 76104, 76105, 76106, 76110, 76115 or 76119. Many of the more than 300 callers to date either live outside the targeted areas or wanted information on lowering insurance rates or getting help on insurance problems. TDI maintains other permanent toll-free lines for these types of calls. Consumer brochures -- including rate guides for auto, homeowners, Medicare supplement and workers News Release Date:4/3/1997 Doing business with the State of Texas, especially the Texas Department of Insurance (TDI), doesn't have to be frustrating for historically underutilized businesses (HUBs). In many cases, HUBs -- businesses owned by minorities and women -- just need more information. To help, TDI plans to hold a "Business Opportunities Forum" on Friday, April 18, in Room 100 of the William P. Hobby State Office Building, 333 Guadalupe, in Austin. The portion of the Forum designed for printing firms is scheduled for 10 a.m. to noon. Other "information services" businesses are invited to attend from 1 p.m. to 3 p.m. The two-hour program will include information on how to become a state certified HUB vendor, the state's bid process, HUB purchasing goals and the printing and information services needs of the Texas Department of Insurance. Seating is limited, so please register by Friday, April 11. For more information, call TDI Purchasing Manager Regina Durden at 512-463-6174. Registration information -- name, company, address and daytime phone number -- also may be faxed to Victoria Cavazos at 512-305-7463. Indicate which session you will attend -- printing or information services. A registration form that can be submitted on-line is available on this web site. Continue News Release Date:4/2/1997 Donald Delton Dobbs, a Bastrop life insurance agent since 1987, has been sentenced to six years' felony probation and fined $2,000 for lying to the Texas Departme nt of Insurance about his criminal record. Travis County Criminal Magistrate Jim Coronado passed sentence after Dobbs, 56, pled guilty to making a false statement on his agent license renewal application, a third-degree felony. TDI's Insurance Fraud Unit referred the case to the Travis County District Attorney's Insurance Fraud Unit for criminal prosecution. A Travis County grand jury indicted Dobbs for making the false statement and securing the execution of a document (a life insurance application) by deception. Although pleading guilty only to a false statement, Dobbs agreed, as a condition of his probation, to repay $912 in commissions he received from Southwestern Life Insurance Co. of Dallas on life insurance policies with falsified applications. Insurance Commissioner Elton Bomer revoked Dobbs' license on March 5, 1997, for lying on his renewal application and for falsifying applications for life insurance on two dying patients in Bastrop nursing homes. Bomer's order said Dobbs denied on his renewal application that he had a criminal record when, in fact, he had convictions for theft by check and second-offense DWI. He also stated falsely that he owed no money to insurance companies for commission refunds or premiums collected. At the ti News Release Date:4/2/1997 A Travis County grand jury has indicted former Dallas insurance agent Randall Brackin Jones on charges he misapplied some of his customers' car insurance premiums and issued them phony proof of insurance cards. The nine-count indictment alleges misapplication of fiduciary property between $1,500 to $20,000 and tamperin g with government records -- the proof of insurance cards. It specifically accuses Jones of misapplying more than $10,200 in premiums paid by 25 customers and issuing fraudulent proof-of-insurance cards to seven people. The alleged crimes are state jail felonies, carrying a maximum possible punishment of a $10,000 fine and two years in a state jail. Jones surrendered to Travis County authorities on Friday. Jones' case was investigated by the Insurance Fraud Unit of the Texas Department of Insurance, which referred the matter to the Travis County District Attorney for criminal prosecution. Texas law gives the Travis County District Attorney venue to prosecute insurance fraud cases even though the offense may take place in other parts of the state. The indictment alleges that Jones collected premiums from his auto insurance customers but failed to send the money on to insurance companies to buy coverage. The largest such premium mentioned in the indictment was $1,541.72. Jones was an agent from 1983 to 1996 and at various times represented about 50 insurance companies. He was licensed News Release Date:4/2/1997 Texas Department of Insurance employees are more satisfied with their agency than two years ago and said so in record numbers, according to the results of the 1996 Survey of Organizational Excellence. Sixty-four percent of the agency's 950 employees participated in the survey in August 1996, according to results printed today (Wednesday) in Bulletin Board, TDI's employee newsletter. This was the highest participation reported among agencies with a comparable number of employees an d compares with 25 percent participation by TDI's employees in 1994. The survey, which was begun in 1979 as a way to improve the workplace environment and customer services of state agencies, is conducted every two years by the University of Texas Center for Social Work. The Center reported that TDI employees in the survey indicated an "upswing" in how they perceive themselves, the agency and service to its customers. The Center plans on "showcasing" TDI as a "best practices" agency because of the survey efforts and positive survey results. Survey questions dealt with 20 broad themes or subject areas, ranging from job satisfaction to whether quality is an important value to the agency and whether employees feel they have the resources needed to deliver quality. " I am proud of TDI employees for participating in the survey to such a high degree," State Insurance Commissioner Elton Bomer sa News Release Date:3/28/1997 Two more insurance rate guides -- one for older and disabled Texans needing Medicare supplement coverage and one for businesses looking for workers' compensation insurance -- are now available on the Internet. The two new rate guides are in addition to auto and homeowner rate guides added earlier this month to the Texas Department of Insurance Internet home page at www.tdi.state.tx.us. " We want Texans to know we have the rate guides and other information they need to help make smart buys when it comes to insurance," said Insurance Commissioner Elton Bomer. "We've tried to make the information convenient and accessible by putting all of it on-line, but we're also happy to mail our rate guides and brochures to anyone who calls our toll-free number at 1-800-599-SHOP." The on-line Medicare supplement guide can help older Texans and those under age 65 who receive Medicare because of disabilities. Under new rules, Texans under age 65 who enroll in Medicare B after January 1, 1997, have six months from the date of enrollment during which insurers cannot deny them basic Medicare supplement insurance. Those who enrolled between March 1, 1992, and January 1, 1997, have until July 1, 1997. The on-line workers' comp rate guide gives businesses a way to comparison shop for coverage. "It's more important than ever before for employers to shop around for the most affordable coverage," Bomer sa News Release Date:3/27/1997 Insurance Commissioner Elton Bomer is setting up a special toll-free telephone number to try to determine whether residents of high-minority areas in Fort Worth pay more for car insurance than other consumers in the city. " This is not a new issue, but we're trying a new approach for dealing with it," Bomer said in announcing the temporary 800 number. " Our staff will answer the special line for the next two weeks to take information that will help us analyze the types of insurance the residents of these areas are buying and whether there are cheaper alternatives available to them," he added. The phone number is 1-800-852-5246. Texas Department of Insurance operators, including some who speak Spanish, will answer the line from 8 a.m. to 8 p.m. Monday through Friday and 8 a.m. to 5 p.m. on Saturday. Callers should be prepared to answer some questions about what types of insurance they have and the cost. The targeted ZIP Codes are 76102, 76104, 76105, 76119, 76106, 76110 and 76115. They were identified in a story that ran today (March 27)) in the Fort Worth Star-Telegram based on a computer analysis of the types of insurance purchased by residents of various parts of the city. Car insurance generally costs more when bought through the Texas Automobile Insurance Plan Association (TAIPA) and county mutual insurance companies. TAIPA provides basic liability insurance for drivers whom comp News Release Date:3/26/1997 Commissioner Elton Bomer has issued a consent cease-and-desist order fining an unlicensed California group $10,000 and ordering it to stop selling medical malpractice insurance illegally to Texas podiatrists. Bomer's order concluded an investigation by the Texas Department of Insurance's Insurance Fraud Unit. Insurance policies issued to Texas podiatrists will be canceled on April 21, 1997. Policyholders will be offered premium refunds. TDI will control the language of the notices and monitor the refunds to assure they are paid. About 10 Texas podiatrists are known believed to have bought insurance through the group. They are in Houston, Friendswood, Lake Jackson, Dallas, Duncanville, El Paso and Big Spring. The cease-and-desist order names the following organizations and individuals, all of San Rafael, Calif.: IAC Inc.; Health Professionals Coalition Inc. aka International Association's Coalition Inc.; Kay's Bookkeeping Services Inc. and Kathryn T urnham. None is licensed or otherwise eligible to sell insurance in Texas. All agreed to the order and acknowledged that their conduct violated the Texas Insurance Code, which prohibits unauthorized insurance. According to the order, IAC Inc., the Coalition's management company, administered a malpractice insurance program marketed by Pacific Rim Insurance Co. Ltd. of the Marshall Islands. Bomer ordered Pacific Rim last year to stop selling insurance in Texas News Release Date:3/25/1997 Former insurance agent Robert C. Bray Jr. of Dallas has been sentenced to a 10-year probated prison sentence for defrauding consumers who paid him for car insurance policies that never were issued. State District Court Judge Karen Green of Dallas made restitution of $20,000 to 59 victims a condition of Bray's probation. Failure to make restitution could result in revocation of his probation. Bray pled guilty to misapplication of fiduciary property over $20,000, a third-degree felony. Insurance Commissioner Elton Bomer revoked Bray's license on January 5, 1996, based on evidence that Bray had pocketed customers' auto premium payments instead of sending the money to insurance companies to buy their coverage. The Insurance Fraud Unit of the Texas Department of Insurance investigated Bray's activities and referred his case to the Dallas County District Attorney for criminal prosecution. Fraud Unit investigators testified at the punishment phase of Bray's trial in Dallas last week. After hearing testimony from the investigators and Bray's victims, Judge Green rejected Bray's request for deferred adjudicat ion, which would have wiped his record clean after his probation ended. The judge's decision means the conviction will stay on his record. Continue News Release Date:3/20/1997 Texas' new initiatives to improve home insurance availability in underserved areas depend on local agents to make them work. Property insurance experts from the Texas Department of Insurance (TDI) will be in Houston, San Antonio, Corpus Christi and McAllen during the next two weeks for agent seminars on the Market Assistance Program, Property Protection Program and Voluntary Insurance Program. " Agent participation is essential for the success of Texas' efforts to make home insurance available at a reasonable price in inner cities and other areas where people complain it's hard to find coverage," said Commissioner Elton Bomer. "These seminars will equip agents to be of greater service to clients in underserved areas." The seminar schedule follows: McAllen -- March 26, Holiday Inn Civic Center, 200 West Expressway 83, 9 a.m. to noon. Houston -- March 27, two seminars, 9 a.m. to noon and 1:30 p.m. to 4:30 p.m., Norris Conference Center, 9990 Richmond Avenue No. 102. Corpus Christi -- April 1, Omni Marina, 707 North Shoreline, 9 a.m. to noon. San Antonio -- April 2, Doubletree Hotel (formerly the Red Lion), 37 N. E. Loop 410, 9 a.m. to noon. The seminars, cosponsored by TDI and the Texas Association of Insurance Agents, will give the agents three hours of continuing education credit. Agents must earn 30 hours of credit every two years as a condition for license renewal News Release Date:3/19/1997 People attending the 1997 Austin Auto Show might recoup the price of admission and save even more money by picking up new auto insurance rate guides at the Texas Department of Insurance booth. The free rate guides list prices that major insurance companies charge for liability insurance in particular localities, including Travis County. Listed companies represent 80 percent or more of the auto insurance market in each territory. In Travis County, for example, companies list liability rates ranging from $222 to $1,032 for an adult male age 25-64 or female age 21-64 with no at-fault accidents or major traffic convictions who drives to and from work. "Many people don't know that auto insurance rates can vary tremendously among insurance companies," said State Insurance Commissioner Elton Bomer. "The rate guides allow good drivers to shop around for the best insurance buys, just as they would for other big-ticket items." Bomer said several other insurance consumer brochures will be available at the auto show and TDI personnel at the booth will be happy to answer questions. Free rate guides and other brochures also can be obtained by calling 1-800-599-SHOP (7467) (in Austin call 305-7211) or by visiting the new TDI Internet home page at: www.tdi.state.tx.us. The auto show runs from Thursday, March 20, through Sunday, March 23, at the Austin Convention Center, 505 E. Cesar Chavez. Continue News Releas e Date:3/14/1997 A Texas Department of Insurance fraud investigation has led to the arrest of a 61- year-old Mexican national for selling unauthorized non-resident auto insurance policies. The arrest culminated a cooperative investigation involving the Hidalgo Police Department. Hector Rios Anda of Reynosa, Mexico was detained by U.S. Customs agents on January 2, 1997, when officers discovered 200 blank auto insurance application forms in his car. That kicked off a TDI investigation that resulted in Anda being charged with tampering with a government record, a second degree felony. He was arrested Wednesday by TDI Fraud Unit Investigator Don Samuels and released from custody on $2,500 bond. Samuels says Anda has sold hundreds if not thousands of auto insurance policies for non-resident Mexican nationals for travel in the U.S. "These policies are unauthorized in Texas and the rest of the country," Samuels said. Samuels said the policies are written under U.S. Fire and Casualty Co. Inc. with a California address. "This insurance company is not incorporated or licensed in Texas, California or any other state that we've talked with," Samuels said. Samuels says the sale of unauthorized non-resident auto insurance policies in Mexico to nationals wanting to travel in the U.S. is a huge problem. Most if not all of the people who bought these policies assume they've purchased legitimate insurance that will pr News Release Date:3/12/1997 People attending the Houston Auto Show might recoup the price of admission and save even more money by picking up new auto insurance rate guides at the Texas Department of Insurance booth. The free rate guides list prices that major insurance companies charge for liability insurance in particular localities, including Harris County. Listed companies represent 80 percent or more of the auto insurance market in each territory. In Harris County, for example, companies list liability rates ranging from $302 to $1,764 for an adult male age 25-64 or female age 21-64 with no at-fault accidents or major traffic convictions who drives to and from work. " Many people don't know that auto insurance rates can vary tremendously among insurance companies," said State Insurance Commissioner Elton Bomer. "The rate guides allow good drivers to shop around for the best insurance buys, just as they would for other big-ticket items." Bomer said several other insurance consumer brochures will be available at the auto show and TDI personnel at the booth will be happy to answer questions. Free rate guides and other brochures also can be obtained by mail by calling 1-800-599-SHOP or by visiting the new TDI Internet home page at: www.tdi.state.tx.us. The auto show runs from Saturday, March 15, through Sunday, March 23, at the Houston Astrohall, 8400 Kirby. Continue News Release Date:3/7/1997 Texans under 65 who receive Medicare because of their disabilities often have had difficulty finding insurance to fill the gaps in Medicare. In the past, only a few companies sold Medicare supplement insurance policies to people under 65. Companies that offered such coverage could reject people whose medical histories made them more likely than others to file claims. Now, however, many Texans under 65 who receive Medicare because of their disabilities have a special window of opportunity called an "open enrollment period." During this period, insurance companies may not deny them the basic Medicare supplement policy because of their medical histories or health problems. An insurance company cannot charge a disabled person under 65 more than its normal rate for a policy solely because it was bought during the person's open enrollment period. " Open enrollment is a requirement with the force of law. I expect all Medicare supplement insurance writers to provide basic coverage to all eligible Texans who apply for it," said Insurance Commissioner Elton Bomer. Texas Department of Insurance rules that took effect January 1 created two distinct open enrollment periods: People under 65 who enroll in Medicare Part B after January 1, 1997, have six months from the date of enrollment during which insurers cannot deny them the basic Medicare supplement policy. (Medicare Part B pays for medi News Release Date:3/7/1997 The Texas Department of Insurance issued on Friday a list of disciplinary actions taken by Insurance Commissioner Elton Bomer that became final during February. Included were fines totaling $42,773. Copies of Bomer´s orders may be obtained by calling the Public Information Office (512-46 3-6425). An indexed summary of Bomer´s orders may be obtained from this website. Cases in which the victims were senior citizens are marked by an asterisk next to the summary description of the violation for which an agent or company was disciplined. Only final orders are listed. An order imposing disciplinary measures becomes final 20 days after the agent or insurance company has received notice of the order unless a motion for rehearing is filed within that period. A motion for rehearing stays the finality of an order until the Commissioner acts upon the motion or upon the operation of law. Commissioner´s orders are subject to appeal to state district court. Summaries of the orders are as follows: Texas Department of Insurance Final Disciplinary Orders, February 1997 ORDER DATE NAME AND CITY ACTION TAKEN VIOLATION 96 Continue News Release Date:3/5/1997 Texas Insurance Commissioner Elton Bomer today approved an optional 5 percent discount for homeowners who permanently mark their personal property. " Burglars will think twice before breaking into a home where they know all of the valuable property has been marked," said Bomer. "If a house is burglarized, homeowners who participate in this program will have a much greater chance of recovering their property." Bomer approved the optional discount at a public hearing where he heard that burglaries and thefts have dropped in areas where homeowners permanently marked their valuables. The optional homeowners discount takes effect May 16, 1997. The Property Identification Theft Reduction Program was recommended by the Residential Property Insurance Loss Mitigation Advisory Committee, which is charged with identifying state actions that can reduce insurance losses. To qualify for the discount, homeowners must permanently mark their valuables or photograph hard-to-mark items such as jewelry. Participating insurers and local police and sheriff's departments offer etching devices, permanent labels or other permanent identification markings along with qualified inspectors. Homeowners can obtain an Inspector's Report to show they complied with the Property Identification Theft Reduction Program by permanently marking or photographing commonly stolen items. After inspections, homeowners wil News Release Date:3/3/1997 For the first time ever, Texans can use the Internet to obtain the latest money-saving auto and homeowner rate guide information. "Our new on-line rate guides make it easier than ever before for you to compare, shop around and maybe save money on your home and auto coverage," Insurance Commissioner Elton Bomer said in announcing the new service. The guides -- including for the first time complaint measures, financial strength ratings and market share for the insurance companies listed -- can be found at the new Internet home page for the Texas Department of Insurance: www.tdi.state.tx.us. Also available on TDI´s home page are consumer brochures, news releases, complaint forms, summaries of disciplinary actions against agents and companies, new rules, bulletins and other insurance data. Anyone without easy Internet access may want to check the nearest public library. Many now provide limited, but free, Internet access. You also can order the new rate guides and other brochures by calling 1-800-599-SHOP (7467). The paper versions will be mailed as soon as they are ready later in March. "Texans should shop as carefully for home and auto insurance as they do for any big-ticket item because rates can vary widely from one company to another," Bomer said. For a Dallas driver, the premiums listed in the auto rate guide for the minimum liabilit News Release Date:3/3/1997 The Texas Senate voted 30-0 today to confirm State Insurance Commissioner Elton Bomer for a second two-year term. On February 11, Governor George W. Bush announced Bomer's reappointment to a term expiring February 1, 1999. The Senate Nominations Committee voted on February 25 to recommend the reappointment to the full Senate. Bush first named Bomer to the post after becoming Governor two years ago. Bomer, 61, formerly served four two-year terms in the Texas House of Representatives: 1981 to 1985 and 1991 to 1995. In 1996, Bush appointed him as Chairman of the Governor's Citizens Committee on Property Tax Relief, which held hearings on property tax reforms across the state. Continue News Release Date:3/3/1997 Insurance Commissioner Elton Bomer today offered the following tips to East Texas residents filing insurance claims for damage from Sunday's wind storm: Contact your insurance company or agent as soon as possible. To speed claims handling, provide the policy number from the first page of your policy. If your policy was lost in the storm, your agent can look up the information you need. Make temporary repairs if necessary to protect your property from further damage. Do NOTmake permanent repairs until an adjuster has inspected the damage. Your policy covers the cost of necessary temporary repairs, so save your receipts for materials and labor. If you can't remain in your home because of damage, your homeowners or renters policy will pay for staying in a hotel, motel or other temporary shelter. I f the damage does force you to move, be sure to tell your insurer where you are and how to reach you by phone. Also, leave a note at your damaged residence telling the insurance adjuster how to find you. You probably do NOT need the services of a "public adjuster." If you hire a public adjuster to help with your claim, be sure you understand his or her fee arrangements. Public adjusters usually charge a percentage of your total claim payment. Be aware that an insurance company cannot discontinue your homeowners or auto policy because of weather-related claims. If you feel an insurance company is tr News Release Date:2/27/1997 Homeowners may soon qualify for a 5 percent discount on their property insurance by permanently marking valuable personal property items. Texas Insurance Commissioner Elton Bomer will consider the optional homeowners discount at a March 5 public hearing. Police report that most commonly stolen property items in residences have no identifiable markings that can be used in the recovery process. Without markings, owners usually must produce sales receipts and serial numbers. Insurance companies have reported a significant decrease in burglaries and thefts since 1992 when a property identification program began growing in popularity across the state. The Residential Property Insurance Loss Mitigation Advisory Committee, charged with identifying state actions that can reduce insurance losses, recommended that Bomer adopt an insurance discount for homeowners who participate in the Property Identification Theft Reduction Program. To qualify for the disc ount, homeowners must mark their personal property and have it inspected by a Texas Commission on Law Enforcement Officer Standards and Education inspector. Both etching devices use to mark personal property and qualified inspectors can be found at the local police or sheriff's department. Homeowners would need an Inspector's Report for compliance with the Property Identification Theft Reduction Program to establish that they had permanently marked or photographed com News Release Date:2/20/1997 Insurance Commissioner Elton Bomer announced on Thursday that Prudential Insurance Company of America has agreed to pay a record $2 million fine and improve its restitution offer to victims of "churning" and other alleged deceptive sales practices. " Prudential will pay the largest fine in Texas Department of Insurance history and will inject a much-needed element of fairness that was missing from its previous arrangements with class-action attorneys and the insurance departments of 45 states," Bomer said. "Because of our agreement, victims who claim they were misled won't have one hand tied behind them in fighting for their rights." Prudential entered into the agreement in principle without admitting wrongdoing or violations of Texas consumer protection laws. Bomer later will sign an order requiring Prudential to abide by the agreement. " Prudential has learned an expensive lesson that Texas just won't allow deception in the sale of life insurance," Bomer said. The primary allegation against Prudential was "churning," which occurs when an agent persuade s a consumer to borrow against an existing life insurance policy to pay the premium on a new one. In some cases, consumers were promised that at some point, interest earnings on a policy's cash value would completely pay all future premiums. Some agents also misrepresented ordinary life insurance products as in News Release Date:2/20/1997 The drought-like conditions of 1996 resulted in fewer thunderstorms, but weather patterns are returning to normal and Texans should be prepared for spring storms that often bring damaging winds, hail and flash floods. Violent thunderstorms spawning tornadoes have been reported in every month of the year in Texas, but beginning in March the number of twisters begins to increase. The month of May ranks as the worst time for violent thunderstorms in Texas. On May 5, 1995, violent weather moved through Dallas-Fort Worth resulting in the nation's costliest thunderstorm. One person was killed, 109 injured and damages amounted to $1.1 billion. To prepare for the worst, Texans should be adequately insured. A typical homeowners insurance policy pays for damage caused by hail or high winds, but not flood waters. Homeowners seeking flood insurance should ask their insurance agents about coverage from the National Flood Insurance Program. To be eligible, homeowners must live in a qualifying community. Coverage usually begins 30 days after purchase. Coastal residents often must purchase windstorm and hail insurance separate from their homeowners policy. This coverage is available through licensed agents from the Texas Catastrophe Property Insurance Association, or "Catpool ." An auto insurance policy with comprehensive coverage ("other than collision") will provide coverage for autos damaged News Release Date:2/7/1997 Texas Insurance Commissioner Elton Bomer today urged auto insurers to offer a recently approved academic achievement discount for students who make good grades. Bomer implemented the optional 10 percent discount effective February 1, 1997, and so far only five insurance companies have notified the Texas Department of Insurance that they are offering the discount or have plans to offer it. " I believe that the discount provides another incentive for students to make or continue making good grades," Bomer said in a special bulletin to all auto insurers, "and it gives insurers a statistically justified marketing tool to attract and reward better, lower risk drivers." To be eligible for the discount, a student must have a "B" average or better or a 3.0 grade-point average or better on a 4.0 scale and be legally classified as a "youthful driver." Companies offering the discount must make that fact known to eligible policyholders and applicants. The optional discount was created through legislation sponsored by Rep. Tony Goolsby of Dallas and Sen. Jane Nelson of Flower Mound and signed by Governor George W. Bush. As of today (February 7) groups and individual companies offering or planning to offer the academic achievement discount are: American States Insurance Group News Release Date:2/7/1997 The Texas Department of Insurance issued on Friday a list of disciplinary actions taken by Insurance Commissioner Elton Bomer that became final during January. Included were fines totaling $32,250 and three license revocations. Copies of Bomer´s orders may be obtained by calling the Public Information Office (512-463-6425). An indexed summary of Bomer´s orders may be obtained from this website. Cases in which the victims were senior citizens are marked by an asterisk next to the summary description of the violation for which an agent or company was disciplined. Only final orders are listed. An order imposing disciplinary measures becomes final 20 days after the agent or insurance company has received notice of the order unless a motion for rehearing is filed within that period. A motion for rehearing stays the finality of an order until the Commissioner acts upon the motion or upon the operation of law. Commissioner´s orders are subject to appeal to state district court. Summaries of the orders are as follows: TEXAS DEPARTMENT OF INSURANCE FINAL DISCIPLINARY ORDERS, JANUARY 1997 ORDER DATE NAME AND CITY ACTION TAKEN VIOLATION Agents 96-1250 10/28/96 Ignacio Inocencio Jr., $1,750 Fine Conve Continue News Release Date:2/5/1997 The public is invited to a free workshop at Lamar University on Tuesday (February 11) to learn about three new state programs designed to help consumers find affordable homeowners insurance. The workshop, sponsored by the Texas Department of Insurance (TDI), is being offered from 9:30 a.m. to 11 a.m. and again at 1:30 p.m. to 3 p.m. at John Gray Institute on the Lamar University campus. TDI staff will be on hand to provide information and answer questions about finding residential property insurance at an affordable rate. " We urge those concerned about homeowners insurance to join us for plain talk about real solutions for everyday people," said Audrey Selden, Associate Commissioner of Insurance-Consumer Protection. "We promise it will be time well spent." The workshop will focus on three new programs the Texas Legislature created in 1995 and Insurance Commissioner Elton Bomer put into effect last year. Sen. Rodney Ellis and Rep. Harold Dutton, both of Houston, sponsored legislation creating the three new programs. The programs, designed to help consumers in areas designated as underserved for homeowners and other residential property insurance coverage, are: The Market Assistance Program (MAP), which uses a computer bulletin board to match customers in underserved areas with companies that might want to write their policies. Homeowners must have been turned down by at least two ins News Release Date:1/24/1997 Two new Texas Department of Insurance (TDI) programs designed to help consumers find affordable homeowners insurance will be explained at a free public seminar in Arlington on Saturday (Jan. 25). The seminar will be from 9 a.m. to noon in the City of Arlington Council Chambers at Center and Abram streets. It is sponsored in connection with the Texas Neighborhoods Together Community Education Program by the Texas Department of Insurance, Texas Neighborhoods Together, the City of Arlington and the Arlington Neighborhood Council. Audrey Selden, Associate Commissioner of Insurance-Consumer Protection, and other TDI staff will be available to offer information and answer questions about how to find residential property insurance at affordable rates. " We urge consumers to join us for some plain talk about real solutions for everyday people," Selden said. "We promise it will be worth their time." The seminar will focus on two new programs created by the 1995 Texas Legislature and put into effect by Insurance Commissioner Elton Bomer last year. The programs, which are designed to help consumers in areas designated as underserved for homeowners and other residential property insurance coverage, are: The Market Assistance Program (MAP), which uses a computer bulletin board to match customers in underserved areas who have been turned down by two insurers with other insurance companies that mig News Release Date:1/22/1997 Texas Insurance Commissioner Elton Bomer today established an optional credit of up to 10 percent for homeowners who have an acceptable dry hydrant within 1,000 feet of their residence. Dry hydrants consist of a hydrant connected to a hose or pipe that leads to a nearby body of water allowing a pumper truck to draft water directly from the water supply to fight a residential fire. Bomer said the discount will be beneficial to rural areas. "Farm and ranchowners can use every incentive they can get to protect their property," Bomer said. "A dry hydrant could be the difference between a house still standing or charred ruins." Dry hydrants must meet certain standards. Each body of water must be able to provide 30,000 gallons of water during a drought, the hydrant must be located within 1,000 feet of a residence, the residence must be within five miles of a fire station and the fire dept. must annually verify that the dry hydrant is operational, maintained and accessible to fire apparatus at all times. The dry hydrant credit was recommended by the Residential Property Insurance Loss Mitigation Advisory Committee. The group, consisting of representatives from the insurance industry, consumer organizations and the Texas Department of Insurance, was created to find ways to encourage homeowners to safeguard their property by taking protective measures. The optional credit takes effect April 1 News Release Date:1/15/1997 (Local angle for Amarillo, Austin , Beaumont, Corpus Christi, El Paso, Galveston and Port Arthur) A state program that uses a computer bulletin board to help consumers find home insurance expanded today by 147 ZIP Codes, including nearly all of Galveston and Nueces counties and portions of 29 other counties. This is Phase 2 of the three-step phase-in of the residential property insurance Market Assistance Program (MAP) mandated by House Bill 1367, the 1995 anti-discrimination measure sponsored by Senator Rodney Ellis and Representative Harold Dutton, both of Houston. " Finding insurance for homes and rental property has become a terrific chore for some Texans, particularly in counties with chronic severe weather," said Commissioner Elton Bomer. "The MAP is a great opportunity for property owners who have experienced multiple turndowns to match up with companies willing to cover insurable properties in underserved areas." Insurance companies representing about 80 percent of the residential property insurance market are participating voluntarily in the MAP by checking the computer bulletin board for homes they might wish to cover. When the phase-in concludes on April 15, 1997, the MAP will be available to residential property owners in 427 ZIP Codes that Bomer has designated as underserved for home insurance. Phase 1 began October 15, 1996, in parts of Harris, Dallas, Bexar and News Release Date:1/15/1997 (Local angle for Lubbock and Wichita Falls) A state program that uses a computer bulletin board to help consumers find home insuranc e expanded today to portions of Lubbock, Wichita and 23 other West Texas counties. This is part of Phase 2 of the three-stage phase-in of the residential property insurance Market Assistance Program (MAP) mandated by House Bill 1367, the 1995 anti-discrimination measure sponsored by Senator Rodney Ellis and Representative Harold Dutton, both of Houston. Phase 2 totals 147 ZIP Codes in 31 counties. West Texas ZIP Codes to be phased in Wednesday are in Armstrong, Briscoe, Childress, Collingsworth, Cottle, Dickens, Donley, El Paso, Fisher, Foard, Gray, Hall, Hardeman, Haskell, Jones, Kent, King Knox, Lamb, Lubbock, Motley, Stonewall, Wheeler, Wichita and Wilbarger counties. The newly added MAP area includes Collingsworth, Briscoe, Hall, Childress, Motley, Cottle, Hardeman, Foard, Wilbarger, Dickens and King Counties in their entirety. The Texas Department of Insurance will conduct a three-hour workshop in Lubbock next week to bring agents up to date on the MAP and other programs to assist property owners in underserved urban and rural areas. The workshop, which will give agents three hours of continuing education credit, will be Wednesday, January 22, from 9 a.m. to noon, at the Lubbock Memorial Civic Center, 1501 Sixth Street. Agents can get registration information by c News Release Date:1/9/1997 The Texas Department of Insurance issued on Thursday a list of disciplinary actions taken by Insurance Commissioner Elton Bomer that became final during December. The actions included two license revocations and fines totaling $6,000. A summary of Bomer's orders may be obtained from this website or by calling the Public Information Office (512-463-6425). Only final orders are listed. An order imposing disciplinary measures becomes final 20 days after the agent or insurance company has received notice of the order unless a motion for rehearing is filed within that period. A motion for rehearing stays the finality of an order until the Commissioner acts upon the motion or upon the operation of law. Commissioner's orders are subject to appeal to state district court. Continue News Release Date:1/7/1997 Icy weather this week undoubtedly will put thousands of Texas in the position of coping with an automobile accident. "Law enforcement authorities report that the number of wrecks almost always goes up when ice, sleet and/or snow blanket the roads," Texas Insurance Commissioner Elton Bomer said today. "We can reduce accidents by staying off the roadways as much as possible. When you do have to drive, slow down and take extra care. For anyone who unfortunately has an accident, a little knowledge of what to do can be important." A Texas Department of Insurance booklet entitled "Automobile Insurance Made Easy" includes the following post-accident recommendations: Move your car, if possible, to avoid blocking traffic and to protect it. Call the police if: somebody is killed or injured; a vehicle can't be moved; or the accident involved a hit-and-run driver. Your uninsured motorist coverage pays for hit-and-run accidents only if reported to the police. Get the other driver's name, address, telephone number, license plate number, driver's license number and insurance information. Give the other driver the same information about you. Record the insurance company name and the policy number exactly as shown on the other driver's proof-of-insurance card. Similar company names can cause confusion. If you have the name of the other driver's company, call the Texas Department ContinueFor more information contact: PIO@tdi.state.tx.us Last updated: 05/31/2006 |
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