South Texas Chisme

A collection of South Texas Political gossip.

Tuesday, April 24, 2007

Insurance rates in Texas highest in the nation

What do you expect in a state run by Crony Republicans. Sure, the rates could be higher. Rates dropped when Perry made a show of doing something. Funny thing, though, the insurance coverage dropped along with the rates.

In Texas, only cronies get what they pay for.

Insurance interests, like other business interests, widely contribute to legislative campaigns. Before the 2006 elections, according to contribution and expenditure reports reviewed by Texans for Public Justice, insurance interests donated more than $865,000 to 145 of the 150 Texans elected to the Texas House; the top beneficiary was House Speaker Tom Craddick, R-Midland, who fielded $55,600 from such interests. (Smithee, the insurance panel chairman, got $7,500, ranking 29th among members.)

Similar interests donated more than $1.3 million to GOP candidates for statewide office and to 28 of 31 state senators, hailing from both parties. The top beneficiary was Perry, fielding $641,388 from insurance interests.

"The insurance industry is uniquely powerful. It can mount a three-pronged assault on the Legislature using its stable of high-paid lobbyists, a strong grass-roots network of agents and a big checkbook for campaign contributions," said Craig McDonald, director of Texans for Public Justice.

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