CALA Slingshots: Mold Lawsuits
Keeping the Remaining Horses in the Arena

Contrary to Dan Lambe’s pronouncements, insurance companies are not simply threatening to leave Texas, they are leaving Texas. Utica National and Employers Mutual are among the latest to saddle up and leave the state’s homeowners market. No newcomers are clamoring to take their place.

The companies that remain in the market are pricing homeowner’s policies at multiples of the antiquated benchmark rate. Even at these prices they are reporting heavy losses due to water and mold claims.

All of us would like to see our homeowners premiums reduced. However, the latest initiative to cut rates 35% immediately, without justification, will only cause more insurers to high tail it out of Texas.

The best way to keep the few remaining horses in the arena—and stabilize the Texas homeowners market--is to allow insurers to price their product, yet give the insurance commissioner the authority to reject unjustifiable rates. Also, the policy forms themselves should be regulated, and uniform, so that consumers can compare price and product on an apples-to-apples basis.


Norman E. Adams
Citizens Against Lawsuit Abuse

Citizens Against Lawsuit Abuse

2500 City West Boulevard, Suite 300 • Houston, Texas 77042
E-mail: sosueme@ • Administrative: (713) 267-2302 • Fax: (713) 267-2267