IR State Bureau - 09/17/08

Democrat Monica Lindeen on Tuesday fired the first public salvo in the race for state auditor and insurance commissioner, saying her Republican opponent, Duane Grimes, has a record of protecting insurance companies at the expense of consumers.

Lindeen, at a news conference in front of the state Capitol, took after Grimes for his 2001 vote against a bill that would have blocked insurers from canceling the auto-insurance policy of a motorist who had struck a deer or other game animal.

“We all know someone who has hit a deer through no fault of their own,” she said. “This just highlights the fact that my opponent is more concerned about protecting insurance companies’ interest than he is consumers’ interests.”

Grimes, however, fired right back, saying he was proud to vote against the bill, because it wasn’t needed and would have enabled more people to commit insurance fraud, by claiming damage from hitting a deer without any proof.

State law already says insurers usually can’t deny coverage because of a single event, he said.

Lindeen’s criticism shows that she believes that government involvement is the answer to every problem, Grimes said.

“The whole difference in this race is, do you believe that government should do everything for you? Or do you think individuals are capable of making decisions if you give them the right information?” he said.

Lindeen and Grimes, both former state legislators, are running for state auditor, which is an open seat. The auditor’s office regulates the insurance and investment industries in Montana. Incumbent State Auditor John Morrison, a Democrat, cannot run for re-election because of term limits.

Lindeen is a former state representative from Huntley; Grimes was a state senator and representative from Clancy.

Lindeen said Grimes has a legislative voting record that shows he usually favors insurance companies over consumers.

“It’s so important that we have someone who has a record of advocating for Montana consumers,” she said Tuesday.

She pointed to the vote on the 2001 animal-accident bill, as well as another 2001 vote when Grimes voted against a bill that required health insurers to cover diabetic equipment and supplies.

The animal-accident bill said insurers can’t cancel a policy because of a collision with a game animal or predatory animal, if it’s not the driver’s fault.

It passed the Senate on a 45-2 vote, with Grimes one of two senators opposing it. The bill then died in the House.

Grimes said the bill would have allowed people to repeatedly report accidents with animals, claiming damage, without fearing cancellation of their policy.

“I think insurance costs are too high (in Montana) and fraud is one of those things that drive costs up,” he said. “This bill would have perpetuated fraud against Montana consumers.”

Grimes said he wants to decrease insurance costs by supporting fewer insurance mandates and encouraging more competition among insurers.

“She’s going to look toward unnecessary regulation,” he said. “That’s her track record. Mine is working through the private sector and trying to make that work.”