TX GOP in League with Insurers’

Texas Democrats, claiming Republicans are more sympathetic to insurance companies than to consumers, plan to pursue regulatory reforms to curb the rise of insurance premiums. According to the Fort Worth Star-Telegram, Texas House Rep. Lon Burnham, D-Fort Worth, expects Republicans in the Legislature to resist efforts to enact insurance rate regulation proposals in the upcoming session, as they have in the past. Along with Texas House candidate Nancy Stevens, state Senate candidate Hal Ray, and U.S. congressional candidate Felix Alvarado, Burnham called for a 10 percent insurance rate rollback, as well as a reformation of the Texas Department of Insurance so that the commissioner would be elected rather than appointed by the governor. The group also decried loopholes which they contended have allowed insurers to raise rates without public hearings. Texas GOP spokesman Ted Royer countered that Democrats’ unwillingness to stop what he called frivolous lawsuits by trial lawyers is the primary reason for increasing insurance rates. He also contended that Insurance Commissioner Jose Montemayor, appointed by Gov. George Bush and then reappointed by Gov. Rick Perry, has levied millions of dollars in fines to insurers on behalf of Texas consumers. Both political parties acknowledged that rate increases should be reigned in, however; Rep. John Smithee, R-Amarillo, chairman of the House insurance committee, believes Gov. Perry should call a special session to address the crisis.