CONTACT: Beaman Floyd
512-731-9939
http://www.tcais.org/
FOR IMMEDIATE RELEASE
Tuesday, March 16, 2004

Texans need a healthy competitive insurance market and affordable policies, not rhetoric

Following statement can be attributed to Beaman Floyd, Executive Director of Texas Coalition for Affordable Insurance Solutions.

The goal of insurance reform in Texas is a healthy and competitive market where consumers get the best coverage for the best rate. Such a reform could turn to disaster if companies are forced into financial instability by shortsighted, ill-advised regulation.

The legislature included due process rights to all parties in the Senate Bill 14 rate reforms to avoid just such a disaster. Insurance companies are exercising their rights to maintain their financial stability and ability to pay their customers' claims.

The Texas Watch-AARP assertion that companies are "ignoring the law" -- when companies are, in fact, following the law -- is both inaccurate and irresponsible.

Texans are looking forward to December of this year with the transition to a file-and-use rating system that will give Texas consumers more power to determine the cost of insurance in a truly competitive marketplace.

Elected policymakers made significant progress in 2003 with the reforms established in Senate Bill 14. Those reforms should be allowed to work as intended.

During this critical period, all parties should be giving consumers the most accurate insurance information possible. Texans deserve the facts.

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