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button.gif (899 bytes) CEJ's Mission
button.gif (899 bytes) Who We Are
button.gif (899 bytes) Accomplishments
button.gif (899 bytes) Publications
button.gif (899 bytes) How You Can Help
button.gif (899 bytes) Press Resources
button.gif (899 bytes) Tort Reform
button.gif (899 bytes) Insurance Regulation
button.gif (899 bytes) Credit Insurance
button.gif (899 bytes) Insurance Credit Scoring
button.gif (899 bytes) Redlining
button.gif (899 bytes) Health Insurance
button.gif (899 bytes) Telephone Availability
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1701A S. 2nd Street
Austin TX 78704
(512) 912 1327
(Fax) 912 1375

Debunking the tort reform "savings"

In 1996,1997 and 1998, the Texas Commissioner of Insurance touted huge consumer savings from the 1995 so-called tort reform legislation. We effectively debunked these claims. Our Fact vs. Fiction Report makes recommendations to Texas Commissioner Montemayor to tell consumers the truth about tort reform. This report updates and incorporates the other three reports. A press release responding to Commissioner Montemayor's claims was sent out in September, 1999.

Our reports have established that insurers earned over $2.8 billion in windfall profits in 1996-1998, and that consumers are not reaping the promised benefits of substantially lower insurance premiums. This windfall to insurers has been realized at the expense of consumers, and we continue to expose insurers’ unjust enrichment at consumer expense.

Finally, we have documented the failure of tort reform to decrease automobile insurance premiums in our report Texas Automobile Insurance Profitability, 1990 to 1997.