INSURERS ASKED TO JUSTIFY RATES

The Texas Department of Insurance (TDI) sent letters in December to the top 10 companies writing homeowners insurance in Texas asking them to voluntarily file their rates by January 2, 2003. TDI also requested that the companies include supporting information to justify their current rates or any planned rate changes. The information gathered will be in addition to information already obtained in ongoing market conduct examinations. “We are asking insurance companies to voluntary provide their rating information so that TDI can give the legislature a clear, up-to-date picture of the current Texas homeowners market,” said Commissioner Jose Montemayor. “In addition to the rate filing, we are also asking the companies to provide supporting documentation to justify their current rates and any planned future rate changes.” At the request of Governor Perry, TDI began market conduct examinations in February into the homeowners insurance pricing practices of Farmers, State Farm and Allstate. The information requested will be in addition to information already received and will include any changes since early 2002.