Texas Senate Democrats block key insurance

 

Thursday, Apr 09,2009, 1:53:27 PM   Click:

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AUSTIN, Texas_Texas Senate Democrats moved Wednesday to block insurance legislation as a key to their push for more consumer protection and reduce the rate of owners.

Using the obstruction rules, the Democrats have refused to allow debate on a bill that authorizes the Texas Department of Insurance to continue operations. They are pushing amendments that would give more rate monitoring regulators.

"Democrats are fighting to ensure that Texans are no longer required to pay the highest rates in the nation, and insist that the legislation reflects a department of insurance that protects consumers," said Senator Leticia Van de Putte, San Antonio, leading Democrats in the Senate.

Texans pay the highest rates of ownership of the nation. According to the National Association of Insurance Commissioners, the most common policy owner cost Texans $ 1409 per year on average, compared to a national average of $ 804.

The sponsor of the bill, Senator Glenn Hegar, R-Katy, said he was working on a compromise _ may be unveiled Tuesday _ but he has vowed to resist proposals that give the state regulators before the approval of insurance rates.

He said that the current regulatory structure, which allows companies to raise rates immediately after informing the State Department of Insurance, would be to promote competition and should have a chance to work.

"We need to create a stable market in Texas," Hegar said. "There is no magic cure to the fixing of rates."


The maneuver is aimed at Democrats in the insurance "sunset" bill _ legislation that allows the department to continue operations after an overview of its policies and procedures. Without the approval of the Legislature, the Department will cease to exist after September 2010.

Hegar said he expected the legislation of his department to the maintenance of life would be approved, probably next week. The legislative session ends June 1st.

In another vote impact Texas insurance policy, the Senate unanimously approved legislation Wednesday that would be enhanced by eye-popping often commissions paid to insurance agents who sell questionable or outright false financial products for elderly Texans.

The industry, including representatives of the maligned insurance giant American International Group, Inc. has been struggling against increased regulation. In some cases, the committees of the value of tens of thousands of dollars are paid to agents who sell annuities which are often defraud the people over their retirement nest eggs, officials say.

The bill by Sen. Rodney Ellis, D-Houston, for the first time in Texas to allow insurance regulators to limit commissions on annuity sales when companies have demonstrated a pattern of allegations ill-treatment and after the officials to hold public hearings on the issue.

The law also set limits on the rents to the fixed maturity dates. Under current law, policies can be drafted so that the benefits are paid until a person reaches up to 115 years. To exit the contract, the elderly face huge contract then redemption.