Show State Farm the door.

It is beyond belief that State Farm has filed with the Department of Texas Insurance (TDI) to raise homeowner's rates as much as 39% across the state. (see STATE FARM'S HOME RATES MAY RISE 39% NEAR COAST, Houston Chronicle) This rate increase request will be the first challenge for the new TDI Commissioner, Mike Geeslin, and the leadership of Texas, and they need to stand up for the consumers and show State Farm the door.

In 2002 Texas had the highest insurance rates in the nation. After the massive insurance reforms of the 2003 Legislation session, rates are now twice the national average and Texas again has the highest rates in the nation second only to Louisiana by 25%. If that isn't bad enough, deductibles are much higher and significant coverage such as foundation, water, sewer and mold, is now optional, at an additional cost.

The promised reforms, of the 2003 session, were a complete and total failure of the leadership of the state. The Insurance Commissioner at the time, Jose Montemayor, who is now working for an insurance company, caved in to every request of the industry. After historic hearings on toxic mold, he removed mold coverage without any reduction in rates or any worthwhile measures to prevent the cause of mold contamination. He allowed the use of credit scoring giving the industry the right to increase rates based upon an owners credit history. And he authorized the use of HO-A policies, which made foundation, water, and sewer damage optional. And yet not one single penny of rate reduction was realized by the owners in the state.

The Legislature, led by Governor Rick Perry, wasn't much help either. They failed to protect the homeowners by passing insurance friendly legislation that provided absolutely no rate relief for consumers. The Texas Attorney General at the time, John Cornyn, filed frivolous lawsuits against the insurance companies questioning over charges in their rates. The suits were frivolous because Cornyn never intended to, and never did, follow through on the charges filed against the insurance industry. The present Attorney General, Greg Abbott, has also done nothing to defend the consumers of the state.

The insurance industry, the Texas Department of Insurance, the Attorney Generals office, and the leadership of the State has provided a steady stream of excuses to the homeowners of the state while rates have doubled, tripled, and coverage has been slashed. And now State Farm wants to raise rates as much as 39%.

It is clear the leadership of the State has absolutely no interest in protecting the consumers of the state. The property tax relief passed in the recent special session will be offset by the out of control increases in insurance all while the insurance industry has had windfall profits. And the insurance industry has now found another excuse, "re-insurance" the insurance purchased by the insurance companies to protect them. Never, over the last 4 years, has the excuse of "re-insurance" been used by the industry. This is a sure sign that in the face of windfall profits, the industry is grasping for last excuses to justify rate increases.

Just like in 2002 as if on cue, the insurance industry has excessively raised their rates, right before the 2006 elections. The elected officials and candidates will again have a chance to file frivolous lawsuits, and make empty promises on the campaign trail to lower insurance rates.

Governor Perry, Attorney General Abbott, and Insurance Commissioner Mike Geeslin should stand up for the consumers and show State Farm the door, or the voters in Texas should show the leadership the door in November.