Internal Documents Reveal Bogus Discount
Exactly how much are your rights worth to Texas Farm Bureau? According to newly uncovered internal documents: nothing.
In a policy submitted to the Texas Department of Insurance late last year, the insurance company purported to offer a "discount" to policyholders willing to relinquish their legal rights. But, an investigation into the controversial agreement revealed the "discount" as a sham.
"Already raised rates in Hidalgo. Discount will be equivalent to that rate increase." Notes of TDI offical on confrence call with Texas Farm Bureau. Read the full document here.
In meeting notes from a March conference call with the insurance company, TDI officials noted that the proposed "discount" would match price hikes Texas Farm Bureau implemented in the targeted counties. To put the farce plainly, Farm Bureau wants to jack up the rates, offer consumers pre-rate hike prices, and call it a discount. Oh, and they'll take your rights too while they're at it.
It's like being handed a 25%-off coupon for a store that just increased it prices by 25%. Consumers would get the same product for the same cost, but lose the ability to hold their company accountable.
"Discount would bring rate back in line with rest of state." Notes of TDI offical on confrence call with Texas Farm Bureau. Read the full document here.
The proposed policy is a sweetheart deal for the insurance company. The insurer gets the advantage of forcing all disputes into the biased, secret process of arbitration where they set the terms and pick the decision maker. In return, the consumer gets nothing: a hollow bargain for the right to hold their company accountable.
"So discount bring the rates back in line Hidalgo and Duval [counties]." Notes of TDI offical on confrence call with Texas Farm Bureau. Read the full document here.
The bogus "discount" is just the latest example of the endorsement's unequal advantages to the insurer at the cost of the policyholder. Texas Watch, the state policyholder advocate, and consumer watchdogs have come out against the policy as detrrimental to homeowners who have or will receive low, slow, or no payments on their valid claims.
Tell the Texas Department of Insurance that your rights aren't for sale. Send an email to the commissioner telling him to stand up for policyholders by rejecting this industry giveaway.