Governor Rendell Announces Cindy Fillman As New Insurance Consumer Liaison; Also Says Recently Completed Auto Insurance Study Will Save Pennsylvania Motorists at Least $120 Million

HARRISBURG, Pa., Jan. 19, 2005 -- Governor Edward G. Rendell today announced that the Insurance Department created a new Consumer Liaison Office and appointed Cindy Fillman, a life-long consumer advocate, to head the office. Fillman reports directly to the Insurance Commissioner.

"The goal of this office is to reach out directly to communities to help educate consumers about insurance issues affecting Pennsylvania families, and to advocate for them before their needs become complaints," Rendell said. "The success of this new office will depend on the expertise, counsel and commitment of its leader. Cindy Fillman has spent much of her professional life advocating for consumers and fighting for their rights."

One of the first tasks of the Office of Consumer Liaison will be to create a consumer advisory group where individuals and advocate groups will have a forum to voice concerns and offer suggestions about insurance issues.

In tandem with his announcement about Fillman, Governor Rendell announced recent Insurance Department findings that have enabled the Department to hold the line on auto insurance rates.

"Since today is a day about insurance consumers, it seems appropriate to share the results of an extensive data analysis on auto insurance that the Insurance Department has conducted over the past year," Rendell said. "The bottom line is that the results of the study will translate into at least $120 million in auto insurance premium savings for Pennsylvania consumers over the next several months."

The purpose of the Insurance Department "data call" was to study a variety of significant rating issues including tort selections and the experience of urban and rural areas. The findings will now be used as the Department reviews auto insurance rate requests.

Pennsylvania law gives drivers the choice of full or limited tort on their auto insurance policies. Limited tort offers a savings on auto insurance premiums. Consumers who select limited tort are still able to recover all out- of-pocket medical and other expenses, but not certain damages such as payments for pain and suffering unless their injuries are defined as serious. Full tort coverage, which is more expensive, allows for unrestricted rights to bring suit against the negligent party.

In its analysis, the Department further confirmed its earlier position, now with the benefit of a greater volume of data, that a 40 percent tort differential between full and limited tort electors was appropriate on a coverage-by-coverage basis for bodily injury, first party benefits, and uninsured/underinsured motorist.

Examples of some of the savings, which are part of the $113 million, include:

  --  Effective September 7, 2004, Progressive Northern and Progressive
      Casualty Insurance Companies reduced rates for their Philadelphia
      territories (relatively and in total) by approximately $1.5 million.

  --  Effective January 7, 2005, Allstate Insurance Company filed to reduce
      rates for their Philadelphia territories relatively by approximately
      $4.2 million.

  --  Effective February 1, 2005, State Farm Mutual Auto Insurance and
      State Farm Fire and Casualty Companies filed to reduce rates by
      approximately $83 million on a statewide basis in total, including
      $11 million for their Philadelphia territories.  (These changes
      include relative savings for their Philadelphia territories of
      approximately $3.4 million.)

  --  Effective April 1, 2005, Erie Insurance Exchange and Erie Insurance
      Company filed to reduce rates by approximately $30.9 million on a
      statewide basis in total, including $1.4 million for Philadelphia
      territories.  (These changes include relative savings for their
      Philadelphia territories of approximately $0.8 million.)

The executive summary of the Insurance Department's auto insurance data call can be found at http://www.insurance.state.pa.us/.

A graduate of Muhlenburg College and Widener University School of Law, Fillman began her career working directly with families and advocate organizations of persons with mental illness and mental retardation. Most recently, Fillman served as an attorney with Governor's Office of General Counsel where she advised the Department of Public Welfare on client benefit issues and effectively led the implementation of a comprehensive policy to protect individuals' confidential information under the Health Insurance Portability and Accountability Act (HIPAA).

Fillman, 38, resides in Dauphin County with her husband Eric and their four children.

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