July 19, 2010

Texas AG: Travelers Must Stop Airing Deceptive TV AdTravelers Insurance said it will comply with Texas Attorney General Greg Abbott’s order to stop airing a television advertisement that the AG says is deceptive. According to the AG’s cease and desist letter, the ad improperly asserted that Texas homeowners need to purchase additional motor vehicle insurance or risk losing their homes if they have inadequate insurance after a vehicle accident.

Abbott demanded that the ad be removed from all Texas television media markets, as well as any print, multimedia, radio or computer-generated ads that appear in the state.

The consumer advocacy group Texas Watch brought the ad to the attention of the AG’s office and Insurance Commissioner Mike Geeslin and requested an investigation.

“Texans are protected by robust homestead laws that insulate homeowners from the losses depicted in Travelers’ advertisements,” Abbott said. “Because the state already protects homeowners, it is improper for Travelers to scare Texans into buying insurance they may not need.”
a July 8 letter to James Wenzel in the Office of the Attorney General, Travelers Executive Vice President and General Counsel Kenneth F. Spence III said the company had removed all of the referenced advertisements from the Texas market.

Topics Texas

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Insurance Journal Magazine July 19, 2010
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