Democratic House members blame GOP leaders for rising insurance costs

Second State Farm rate hike in 7 months prompts letter. Hoppe reports:

Five leaders of the Texas House Democratic caucus signed a letter calling for an overhaul of state insurance regulation on the heels of State Farm's second homeowners rate hike in seven months.


The five believe the Texas Department of Insurance needs to be given the power to counter insurance companies that raise their premiums excessive and unjustifiable levels. Since 2003, insurance companies have operated under a file-and-use system, whereby they file their new rates and use them until the state determines if they're fair or not. If the state thinks they're excessive, it's supposed to order a rebate to consumers.

State Farm plans 2nd rate hike in 8 months for home policies

Texas homeowner premiums to rise at State Farm, other insurers could follow suit. Hoppe reports:

AUSTIN – State Farm Insurance told the state Thursday that it intends to raise its homeowners rate 4.5 percent statewide starting May 1, only eight months after the company boosted rates 8.8 percent.


Insurance Commissioner Mike Geeslin, who is powerless to stop the rate hike, asked State Farm in a letter to reconsider, saying such back-to-back increases could influence other insurers and rock consumers.