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Quote of the Day - All power corrupts, but we need the electricity. - Unknown

Use It And Lose It. Just Don't Blame The Insurance Commissioner.

You may have heard of the insurance industry's practice of use it and lose it. You know: make a claim and we won't renew your insurance policy, and we may even cancel you mid-stream.

What good is that kind of insurance?

The Insurance Commissioner tried to do something about it. In fact, he claims he's still going to try.

Despite today's court decision preventing him from doing so. The court ruled that the legislature didn't grant that extent of power to the Commissioner. Last year, he issued a regulation preventing the insurance companies in California from relying on "use it and lose it" underwriting practices to not issue policies. Insurers were using a databased called CLUE to find out if you or I had submitted a claim, and if so, we were blacklisted.

The insurance industry launched an attack against the Commissioner's regulation, and today, they appear to have won this round. Now, if you want to do something about it, contact your legislator.

Last year, the legislature had a chance to do something about it, but the bills died.

With all the rain we've had, it's going to be a problem for a lot of people in this state. Just what we need. We're going from brown mud to blacklisting.

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Posted by J. Craig Williams on Tuesday, March 01, 2005


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