I.I.I. issues news release pegged to I.I.I. president’s commentary on P/C insurer year-end 2009 financial results:
The I.I.I. highlighted Bob Hartwig’s observations about the current financial regulatory reform debate, and the resilience of property/casualty insurers, in this Wednesday, April 21, news release. The I.I.I.’s Claire Wilkinson blogged about these issues at Terms + Conditions on Wednesday, April 21, in advance of President Obama’s Thursday, April 22 visit to New York City to deliver a speech on financial regulatory reform.I.I.I.’s chief economist addresses the New York Insurance Fraud Summit; cost of no-fault claims in state continue to rise:
Dr. Steven Weisbart’s remarks at the Wednesday, April 21, event in East Elmhurst, NY, co-hosted by the New York Insurance Association and the National Insurance Crime Bureau, were summarized in this news release. “The average cost of a no-fault auto insurance claim [in New York State] skyrocketed to $8,862 in the fourth quarter of 2009, up $3,247, or 58 percent, from $5,615, the average cost of a no-fault claim in the third quarter of 2004,” the release states.I.I.I.’s senior vice president, public affairs to be quoted in two travel insurance news releases:
The I.I.I.’s Jeanne Salvatore offered written quotes for inclusion in two upcoming travel insurance news releases. One is to be issued by the U.S. Travel Insurance Association and the other by insuremytrip.com, a travel insurance comparison Web site. Jim Grace, who is president of both of the aforementioned organizations, was quoted at length in this Wednesday, April 21, New York Times Bucks blog story on travel insurance and recent events in Iceland.New York Times reports travel insurers generally covering flight cancellations caused by Iceland volcano as weather-related event:
Most travel insurance policies also cover non-refundable prepaid travel, and pay stranded travelers $150 to $250 a day up to a limit of $1,500, according to this Monday, April 19, article in the hard-copy edition of the New York Times.
Insurance trade groups voice opposition to bill which would allow National Flood Insurance Program to write wind coverage:
Five leading advocacy trades sent a letter (see attached) on Wednesday, April 21, outlining the reasons they oppose House Resolution 1246, the Multiple Peril Insurance Act. Congressman Gene Taylor (D-Mississippi) offered these remarks the same day, explaining why he favors passage of HR 1246 (see page 2).National Flood Insurance Program’s future is subject of Congressional hearing:
The U.S. House of Representatives’ subcommittee on Housing and Community Opportunity, part of the U.S. House’s Financial Services Committee, convened on Wednesday, April 21, to discuss ‘Legislative Proposals to Reform the National Flood Insurance Program’. Details on the hearing are here. The I.I.I.’s Wilkinson blogged about the hearing, and offered this next-day assessment.Baltimore Sun story notes unusual date for flood insurance program’s expiration:
The May 31, 2010 expiration of the National Flood Insurance Program (NFIP) comes the day before the traditional start of hurricane season, this Monday, April 19, Sun article notes.
Wall Street Journal reports state regulators want to raise life insurer capital requirements, on a temporary basis:
Regulators believe this step ought to be taken to back up the commercial mortgages housed in life insurer investment portfolios, according to the Saturday, April 17, edition of the Wall Street Journal (subscription required). Proposed by the National Association of Insurance Commissioners (NAIC), the change would raise life insurer capital requirements on such investments by more than 50 percent, on average, the WSJ reports. Regulators say the increase is necessary due to the deteriorating outlook for commercial real estate but that they are open to discussion about the amount of the capital requirement increase.
Toyota recalls its 2010 Lexus GX 460:
In making the announcement on Monday, April 19, Toyota also said that by the end of April 2010 dealers will have a software update to correct the problem, according to this same-day USA Today story. Consumer Reports last week took the unusual action of recommending that consumers not buy the GX 460 because of the possibility that the sports-utility vehicle might roll over in certain circumstances. Toyota responded initially to CR’s do-not-buy rating by suspending sales. The GX 460 recall covers 34,000 vehicles worldwide and also includes some Land Cruiser Prado models, USA Today reports.
Oklahoma TV station picks up on themes originating with Smart Money story:
The I.I.I.’s Salvatore waved Yvonne Harris of KTUL-TV, the ABC affiliate in Tulsa, Oklahoma, off a story Harris wanted to do on “things you should never say to your insurance agent or insurance company,” which appeared to have its origins in a story published in Smart Money a couple of months ago.Arizona Republic reports on five-year, 23 percent drop in number of reported auto accidents in Glendale, AZ:
The story offers a chart with specifics, and the I.I.I. cautions against those who would look at this one trend, and speculate that Glendale, Arizona residents are about to see auto insurance premium rate decreases, according to this Friday, April 23, article.
Arizona governor signs bill allowing police to assess if a person is in the U.S. legally:
Since the call, Arizona Governor Jan Brewer signed the Support Our Law Enforcement and Safe Neighborhoods Act (Senate Bill 1070) into law. Her Friday, April 23, signing statement is here.North Carolina court rejects legal challenge to coastal homeowners insurance rate increase:
North Carolina law does not allow a court to overturn the December 2008 accord reached between then North Carolina Insurance Commissioner Jim Long and the North Carolina Rate Bureau, which represents insurers, according to a Tuesday, April 20, Associated Press story on a ruling released by a three-judge Court of Appeals panel. The case was brought by coastal communities, which could see their rates rise dramatically in 2010, the article states. Those residing in western North Carolina, meanwhile, could see their homeowners insurance rates drop, the AP article notes.Sarasota Herald-Tribune chronicles the colorful history of People’s Trust in Florida’s property insurance market:
People’s Trust was licensed by Florida’s Office of Insurance Regulation (OIR) in 2008 and proceeded to sell homeowners insurance policies at below-market rates, according to a Monday, April 19, Herald-Tribune story. People’s Trust told the OIR it could sell policies over the phone rather than through agents, and send repairmen to fix damaged properties rather than issue checks to homeowners who filed claims. The Florida Association of Insurance Agents subsequently began collecting evidence of alleged violations by People’s Trust, such as using unlicensed individuals to sell insurance policies and offering unjustifiable discounts, the article notes. Regulators began an inquiry into the company’s operations in 2009.
California Democrats endorse Assemblyman Dave Jones for insurance commissioner; oppose Proposition 17:
California State Assemblyman Dave Jones won the Democrats’ official nomination for the post at their convention on the weekend of April 17-18 in Los Angeles, where the party delegates also came out against Proposition 17, a Tuesday, June 8, ballot measure that would allow auto insurers to raise or reduce premium rates, depending on whether a driver maintained continuous coverage. Details on the convention results are here.
Los Angeles Times finds April 4 Mexican earthquake did little to prompt U.S. small businesses to secure earthquake coverage:
In its Monday, April 19, edition, the Los Angeles Times found that earthquake insurance policies remain a tough sell in the U.S. since deductibles are high, generally equal to10 percent to 20 percent, or more, of the insured losses. Insurance brokers told the reporters that small businesses would generally pay a $5,000 premium for $2.5 million in property coverage. Scott Hauge, president of Cal Insurance & Associates in San Francisco and head of the Small Business California lobbying group, told the LA Times that a small retail store would probably be unwilling to pay a premium of $4,000 to $5,000 for earthquake coverage.
Times-Picayune picks up on Insure.com study saying Louisiana’s drivers pay highest premiums in the U.S.:
Louisiana’s auto insurance rates have climbed steadily since 2005’s Hurricane Katrina and have now become the highest in the country, costing the average driver in the state $2,510 annually, the Times-Picayune reports in its Sunday, April 18, edition, with the story pegged to the Insure.com study from earlier this month. The article explains that there are various theories about why Louisiana’s auto insurance costs are so high, with some pointing to the litigious nature of the state and poor driving habits, and others noting the state’s high car theft and vandalism rates.
