The

INSURANCE

RECORD THE VOICE OF TEXAS INSURANCE Published Since 1934 • Dallas, Texas April 9, 2009 • Vol. 75 No. 8

Clueless Politicos Castigate & Legislate Against Insurers —

Some Fed. Solons Would Strip
Industry of Antitrust exemption

WASHINGTON—Declaring that the insurance industry is in the practice of ripping off consumers, two federal lawmakers reintroduced legislation that would eliminate the industry’s exemption from antitrust laws.

Called the “Insurance Industry Competition Act,” the measure was launched by Reps. Gene Taylor (D-Miss.) and Peter DeFazio (D-Ore.). The congressmen say that the exemption gave AIG the ability to get “too big to fail.”

Failure to Recognize Bailed-Out Party “The fact that the insurance industry is exempt from federal anti-trust laws is outrageous. Shouldn’t the $170 billion

bailout of AIG be the third and final strike to the “business as usual” attitude toward the insurance industry? We cannot tolerate these rampant abuses of the system at a massive cost to tax payers,” DeFazio said. “AIG was gambling with people’s life savings and lost it all to speculative and shady transactions and contributed to the current crisis. We must insure this never happens again.”

“Why is anyone surprised?” Taylor said. “Insurance companies believe that they are above the law. When it comes to the federal laws, they are. After Hurricane Katrina, insurance companies took advantage of the lack of federal oversight continued on page 5

Central Texas Pummeled with
$160M hail Losses

In This Issue

The effect of the AIG Outcry By Kenneth R. Auerbach, Esq.

IIABA Opposes OFC Bill

AUSTIN—The March 26 hailstorm that hit Central Texas caused an estimated $160 million in insured losses, The Insurance Council of Texas reports. The hailstone barrage knocked out windows, smashed roofs, and dented thousands of automobiles.

AIG Not Underpricing, Says GAO 8

ATAC honors Waco Fire Marshal 10

Downturn Both Blessing and Curse for WC Market

The storm swept in from western Burnet County and pounded Marble Falls with golf ball size hail. Tennis ball size hail was reported in parts of Travis and Williamson Counties.

ASSe Schedules San Antonio Conference this June/July

SELLING STRATEGIES:

Inquiring Minds Want to Know 15

Hundreds of new cars in several automobile dealerships were heavily damaged.

continued on page 5

NAIC Boss tells Congress:

Stick with the Proven Regime

Get The Insurance Record digital edition — online — every other
Thursday. Send your customer number (found on your mailing label)
and your email address to: digital@spcpub.com to start receiving your
online edition every issue. You’ll still receive your printed edition in the mail.