Texas Gov. Rick Perry recently sent a message to State Farm and Farmers insurance companies, who have successfully fought state-ordered rate rollbacks for homeowners policies.
“I’m not happy at all when companies come into the state of Texas and take advantage of our homeowners, don’t follow legislative intent and play games at the courthouse,” Perry told reporters after speaking at a Veterans Day ceremony. “Our message to them is ‘We’ll see you in January.”‘
Perry said that lawmakers will be “incensed” at the companies’ refusal to provide relief to homeowners and will take up the issue when they convene in Austin for their next session in January.
A judge on Monday ruled the rate rollbacks unconstitutional.
In 2003, the Texas Department of Insurance ordered Farmers to reduce its rates by 17.5 percent and State Farm by 12 percent. The cuts came under a law passed by the Legislature and signed by Perry in 2003 designed to stop skyrocketing homeowners insurance rates.
The companies, two of the state’s largest insurers, claimed the procedures used by the state to order the rollbacks denied the companies due process. And the judge agreed.
“Our goal has always been to try to cooperate with the state but, again, it has to be a fair system for everyone involved,” State Farm spokeswoman Sophie Harbert said Thursday, responding to the governor’s comments.
Perry said Thursday that the court’s ruling was based on a technicality.
Harbert disputed that, saying “It’s not just the way that the statute was applied. It is actually the law itself.”
Farmers spokeswoman Michelle Levy reiterated earlier comments that the company reviews its rates regularly and believes they’re fair and reasonable and do not warrant rollbacks.
“Farmers has and will continue to work with the Texas Department of Insurance to address this matter in the best interest of all parties,” Levy has said.
Texas Department of Insurance spokesman Jim Hurley has said the ruling did not address whether the rollbacks were appropriate and did not harm the agency’s authority to regulate rates. He said the state could appeal.
Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Topics Carriers Texas Legislation Homeowners
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