WANT LOWER INSURANCE RATES?
Federal Mold Bill is the Answer 

John Conyers, Jr., a Democrat and US Representative, may become a hero even to staunch Republicans. Mr. Conyers recently unveiled House Bill 5040, a toxic mold safety and protection act. If the Bill is passed, insurers have no excuse but to slash premiums.

Among other things House Bill 5040 calls for the establishment of a FEMA-like insurance pool that would cover the costs associated with toxic mold clean-up for people who opt to purchase the additional coverage. Basically, House Bill 5040 takes the liability of toxic mold clean up off of insurers.

This Bill couldn't be timelier; high-dollar insurance lobbyists have succeeded in getting State Insurance Commissioners to reduce, cap or exclude mold clean up from residential and commercial property and casualty policies, leaving their customers totally unprotected against this catastrophic loss.

While insurance companies are reducing coverage, states have allowed them to raise rates. It's kin to paying for a loaf of bread but getting only one slice. In short order, insurance companies will enjoy a profit bonanza at the expense of the American family.

If insurance companies no longer are liable for toxic mold clean up, state legislators must mandate rate reductions by a corresponding 60% over premiums charged in 1999 (the year that saw a sudden increase in mold-related property damage claims).

Policyholders of America ("POA") has chronicled insurance industry spokespeople saying the costs of mold remediation is the reason they were "forced" to raise rates. Insurers claim they were blindsided by mold related claims. However, a 1972 report by a government agency (Amburgey, 1972) pegged the repair costs from mold damage in residential structures to be more than $17 billion by year 2000. Clearly, that estimate was an overstatement as insurers have not paid anything near that in clean up costs yet industry's risk managers had the information available to them in order that they price their policies accordingly.

Rep. Conyers' Bill provides a meaningful platform for state officials smart enough to recognize an opportunity when it's knocking at their door. House Bill 5040 offers state legislators, from both sides of the aisle, a chance to mandate rate reductions.

The cost of insurance has become a pocketbook issue affecting every American. It will be easy to make the distinction between legislators bought and paid for by industry from those who are champions of the public.

POA supports House Bill 5040 and those U.S. Representatives who elect to endorse it because it not only provides a safeguard for American families but also opens the door for significant premium discounts that only state legislators can mandate.

Send your elected officials (federal and state) a clear message by signing the POA petition supporting House Bill 5040.

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