Travelers Insurance Ordered to “Cease & Desist” [Updated]
Texas Watch—July 8th, 2010
The Attorney General’s office has sent a Cease and Desist Letter to stop Travelers Insurance from airing a deceptive ad in Texas. This action comes after Texas Watch requested an investigation by the Attorney General and Insurance Commissioner earlier this week.
If Travelers fails to pull its ad off the air immediately, the Attorney General’s office can seek further legal action, including an injunction, to block the company from airing this ad in Texas.
“We’re glad the Attorney General’s office did the right thing,” said Alex Winslow, Texas Watch’s Executive Director. “Texas families should never be subjected to false insurance industry advertising that preys on the fears many homeowners have about losing their homes.”
Winslow added that this situation is part of a larger problem that Texas consumers face when dealing with the insurance industry. “Travelers’ deceptive ad, State Farm’s double-dip rate hike, and Texas Windstorm’s improper handling of customer complaints shows that responsible regulation of the insurance industry is key.”
The Travelers ad entitled Driving Your House suggests that homeowners could be forced to sell their homes if they do not have sufficient auto insurance to cover their liability following an auto accident. The Texas Constitution strictly prohibits the forced sale of a person’s homestead except in very narrow circumstances, protecting homeowners from the type of situation outlined in the Travelers ad.
Earlier this week, Texas Watch sent a letter to Attorney General Greg Abbott and Insurance Commissioner Mike Geeslin asking that they take action to force Travelers to stop airing this misleading ad.
UPDATE: Travelers has sent a letter to the Attorney General’s office stating that the company has complied with the Cease & Desist order.
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For More Information: Alex Winslow (512-381-1111)
