Election Chatter or Solutions’

Tell them what they want to hear or offer true solutions?
That is the question facing the candidates who are running for offices in California and Texas this Nov. 5. Two of the races—the race for insurance commissioner in California and the race for governor in Texas—will have a major impact on agents and brokers in both states.

Currently, the homeowners market in Texas is in a state of disarray, as Farmers announced recently that it would leave the market and issue non-renewal notices to policyholders. In California, the workers’ comp system is in a state of meltdown and companies have abandoned the market or indicated they may do so in the near future. Throw in the issue of mold in both states, and you have some serious problems to look at.

In California, both John Garamendi and Gary Mendoza, the two frontrunners among five candidates for insurance commissioner, have said that addressing workers’ comp would be among their priorities. In the Lone Star State, present Gov. Rick Perry and challenger Tony Sanchez have noted that common sense and forceful action need to be taken to address the homeowners crisis. Question is, do they all mean it or are they just saying what they’re expected to say?

Agents and brokers in both states have lots of questions for these gentlemen. During a recent interview (See page 34) Mendoza said that making more products available for agents and brokers would be of major importance to him if elected. To date in both states, it seems customers have been chasing companies instead of the other way around.

With Farmers wanting to depart the homeowners market in Texas, who will step in to pick up this business? As a result of alleged deceptive trade and discriminatory practices in Texas, officials in Austin filed a lawsuit against Farmers. Farmers countersued, the insurance department ordered the company to stop raising rates, and the company got fed up and decided to pull out of the market altogether, leaving its nearly 700,000 homeowners scrambling for coverage.

In conversations with both Garamendi and Mendoza more than 1,000 miles to the west, both candidates said that cracking down on those who commit deceptive trade acts or fraud in the Golden State will be among their priorities.

Every election year, politicians say they will do this and they will do that. We want to believe them, but we also have to hold them accountable and measure their rate of success when they finish their term in office.

What do you as agents and brokers expect from your next governor or commissioner? Write us and let us know.

Topics California Texas Agencies Homeowners