This has been one of those weeks insurance companies would love to forget. Since November 2007, Washington State voters overwhelmingly passed R-67, the Insurance Fair Conduct Act, Florida is trying to bar Allstate from doing business there, two executives at insurance giant Marsh and McLennan have been found guilty of price fixing, five executives at AIG and General Re were found guilty of fraud, Allstate was fined the $250,000 maximum in Louisiana for bait and switch policy cancellations and the GAO has exposed massive flaws and conflicts of interest in NFIP.
This week the pace has picked up with California finding Allstate has been overcharging for auto insurance there, Michigan’s legislature is moving to stop the use of credit scores in auto insurance underwriting, Senators Cochran and Wicker join Senators Landrieu and Vitter in placing holds on industry backed S. 2284, and Florida is moving to suspend American General Life Insurance’s license for violating Florida’s “Freedom to Travel Act”. All in all this is not shaping up to be a good week for big insurance.
In other news AM called me and asked for help in publicizing Gene Taylor’s campaign website, especially the insurance reform page. Gene was fighting for us on insurance issues long before it became fashionable in certain GOP circles but he still needs our help to have multi peril insurance enacted for us. Please visit Gene’s website and click on the “Click here Become a Partner in Insurance Reform” hyperlink on the right side. Lobbying the Senate is the key; Gene and coastal people in this country need your help to make that promise a reality.