The Insurance Journal reports State Farm could owe $0 to $1billion to Texax Consumers.
Read the story and you’ll discover State Farm attorneys said the insurer is still paying off a $1 billion loan that it had to take out from its parent company to stave off bankruptcy six years ago, when mold claims were at their peak.
What business couldn’t use a parent with a billion to loan? None that I can think of, that’s for certain.
What I’m less certain about is the entity mentioned in the article, the Office of Public Insurance Counsel – the most interesting government agency I’d never heard about (until I read the IJ article and checked it out):
The statutory authority for the Office of Public Insurance Counsel (OPIC) is found in the Texas Insurance Code Title 5. Subtitle A. Chapter 501. Authority for the collection of funds on behalf of OPIC is found in sections 501.202-501.205. OPIC acts as an advocate for insurance consumers primarily before the Texas Department of Insurance (TDI).
OPIC represents consumers as a class on matters involving rates, rules, and forms affecting various personal lines such as property and casualty, title, and credit insurance, and on matters involving rules and forms for life, accident, and health insurance.
On the OPIC website, I discovered another interesting arm of Texas government, the Sunset Review Commission established by the Sunset Act:
The Act provides that the Sunset Commission, composed of legislators and public members, periodically evaluate a state agency to determine if the agency is still needed, and what improvements are needed to ensure that state funds are well spent. Based on the recommendations of the Sunset Commission, the Texas Legislature ultimately decides whether an agency continues to operate into the future.
While not a big-government advocate, I’m all for effective government. The Mississippi’ windpool, in my opinion, is government at its worst . More would likely share my opinion had John Corlew’s excellent case not been lost on a loophole – convenietly discovered at the 11th hour by an attorney for the company with the loan-a-billion parent.
Property owners on the Coast know all about loophole losses and none are better suited to provide leadership for meaningful change.
SLABBED can investigate the possibilities of an Office of Public Insurance Counsel or a Sunset Commission; but, working together we can close loopholes; cut losses; lead change and build back better than ever.