Hearings Underway on TDI Mandated Homeowners Rate Cuts

Eleven of the state’s largest homeowners carriers have filed appeals with the Texas Department of Insurance, requesting hearings on recent state-ordered rate cuts. On Aug. 8, 2003, Texas Insurance Commissioner José Montemayor ordered most of the top 32 insurance company groups writing homeowners insurance in Texas to lower their rates by up to 31 percent. The department expects the mandated reductions will save Texas consumers over $510 million.

The rate cuts are the result of TDI’s review of rating methodologies filed with the department, a requirement of the insurance reforms contained Senate Bill 14. The carriers reviewed so far represent 95 percent of the homeowners market in Texas. The department has until Sept. 9 to review the filings for the remainder of the market.

Seattle-based Safeco originally filed an appeal but subsequently withdrew its request for a hearing, saying it would be better for the company to cut the rates and move forward. It is required to reduce homeowners rates by 15 percent.

Following is a schedule of the hearings which began Sept. 2 and will end Sept. 10. For more information on the hearings, visit the TDI Web site at www.tdi.state.tx.us/commish/agenda.html.

Topics Texas Homeowners