Presentation made by POA (delivered by Melinda Ballard) at Rep. Conyers' Press Conference (Toxic Mold Bill # 5040)
June 27, 2002
Washington, DC

Mr. Conyers isn't usually considered "hero" to Republicans but today history is being made. Analysis of Bill 5040 demonstrates that if adopted, insurers have no excuse but to slash premiums. This Bill benefits every American, not just those with mold problems.

Our organization, Policyholders of America, is a nonprofit group of homeowners embroiled in feuds with their insurance companies over toxic mold clean ups which can cost more than the property is worth. Ever member has a story to tell but one common thread runs through each and every claim: the insurance company refused to honor the policy they sold. We've got more than 18,000 American families in our membership and we control more than 100,000 votes. This, in and of itself, make us a tremendous force in American politics.

I want to make it clear to you all that Policyholders of America is not in favor of an insurance bail out. We think insurance companies should honor their policies but insurers have had their way with most state legislators and have, in recent months, been able to cap, exclude or limit their liability with water damage if mold is involved. Because of these policy changes, the burden of the cost of clean up will fall directly on the homeowner who probably cannot afford the tab. The result will be bankruptcies and foreclosures, not to mention soaring medical costs incurred because of the health effects caused by exposure.

I'd like for everyone here to put themselves in the shoes of a young family who bought their first home after years of squirreling away enough money for a down payment. Imagine that a storm ravages your roof and driving rain enters your home. Imagine calling your insurance company to report this claim and being told that "it's not covered" even though the policy says it is. Imagine watching blood come out of your youngest child's ears and nose while she gasps for every breath and not having a clue as to why this is happening. Then imagine discovering that the roof leak that happened several months before, wrongly denied by your insurance carrier, caused mycotoxin-producing molds to overtake several rooms in your house, including an entire wall in your child's bedroom. Now imagine that you and your entire family must abandon your home and all of your possessions because they are all contaminated and continued exposure to these toxins, now airborne, could cause your five-year-old daughter irreparable harm. Apart from losing your home and everything you own, your family also faces tremendous health care costs and will be burdened with the costs associated with renting temporary housing while you battle it out with your insurance carrier in a legal system that is as slow as molasses. This story and ones just like it are told by every family in our membership.

Congressman Conyers' Bill 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 unless it is due to bad faith and/or fraud. It's not an insurance bail out, it's a self funded insurance pool that would mimic flood insurance. The Bill simply uses an existing infrastructure and expands it. More importantly for the general public, 5040 is an opportunity to lower premiums to affordable levels so that families can achieve the American dream of home ownership.

Before I got here today, I pulled off of our website more than 1,500 articles published over the last six months. These articles quoted insurance executives as saying that the cost of toxic mold has forced them to raise premiums. Even in states where mold claims are few and far between, insurance companies are refusing to offer homeowner's insurance and are raising rates by 50 - 500%. Mold is gold for insurance companies because they reduce their liability while at the same time, are allowed to increase rates. Right now, homeowners are paying for a loaf of bread but getting one slice. It's a profit bonanza for the insurance industry at the expense of the American family.

But, Mr. Conyers' Bill gives the American policyholder a chance to reduce rates paid for homeowner's insurance and gives State legislators reason to mandate a rate roll back. If insurance companies no longer are liable for toxic mold clean up (which in their own words is why rates have soared), state legislators should 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). It should be noted that rates are a State issue, not a Federal issue. If rate reduction is not done voluntarily, perhaps Mr. C, a ranking member of the House Judiciary Committee, will see to it that insurers not rolling back prices would be subject to a price gouging investigation. Believe me, insurance companies cannot afford to have Federal regulators looking up their skirts.

The cost of insurance has become a pocketbook issue affecting every American. Americans should pay for what they get. With a corresponding discount in premiums now paid, every American family can afford the added coverage offered under this Bill.

Policyholders of America has launched a massive petition whereby Americans, with mold and without it, are signing an electronic petition that is two pronged and is automatically sent to their appropriate Federal and State officials:

The first part of the petition is designed to urge their US Reps to support House Bill 5040 which establishes a FEMA-like insurance pool;

The second part is to urge State legislators (State Senators, Reps,
and Governors) to mandate lower premiums once the Bill is passed.

Link temporarily removed

Let me close with a little prophetic levity:

Gonna tell you a story 'bout a Toxic Mold Bill
Day it got filed, lobbyists wanted it killed.

Then one day it was sent to committee
And the changes made weren't very pretty.

Builders lobby. Black mold. Contributors pleased.

So the next thing ya know the public raised some cane
Those seeking re-election aren't COMPLETELY insane.

The Bill passed the house and premiums got slashed
Lobbyists working against the public can shove them up their (you know what)

Can that is. Homeowners win. House members are stars.

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