SYNOPSIS ALL INDUSTRY CONFERENCE CALL August 18, 2010

NAIC issues consumer alert on life insurers’ retained asset accounts (RAA):

The National Association of Insurance Commissioners’ (NAIC) consumer alert, issued on the same day a newly created NAIC working group held a public hearing on RAAs in Seattle, Washington, was at the center of Bloomberg’s next-day story on the proceedings.  Dow Jones Newswires Erik Holm also filed a brief story on the gathering for inclusion in the Monday, August 16, hard-copy edition of The Wall Street Journal (subscription required).  Both MetLife and Prudential estimated at least 60 percent of their life insurer policy beneficiaries close their RAAs after one year.

NCOIL to consider ‘Beneficiaries Bill of Rights’ for RAA holders in November:

National Conference of Insurance Legislators (NCOIL) president, Kentucky state Representative Robert Damron (D-Nicholasville), has proposed model legislation which would govern the use of RAAs.  The issue will be on NCOIL’s agenda at its annual meeting, to be held between November 18-21, 2010 in Austin, Texas.

Peter Gallanis, president of NOLHGA, offered this testimony to the NAIC at the Sunday, August 15, hearing on the issue of RAAs.

I.I.I. unveils redesigned InsuringFlorida.org website:

The website has been redesigned with an emphasis on helping consumers understand how to talk with their insurance agent and to help them identify the types of insurance protection they need. It also offers tips on how to save money on insurance, according to this Monday, August 16, news release. Topics are organized by types of insurance: Auto, Business, Homeowners and Renters and Life.

IBHS issues special report on quality of building codes in Louisiana, Alabama and Mississippi:

Five years after Hurricane Katrina, building codes along the Gulf Coast are for the most part inadequate, according to a Tuesday, August 17, news release from the Institute for Business & Home Safety (IBHS).  Five Years Later: Are we better prepared? was co-written by Wanda Edwards, P.E. and Candace J. Iskowitz.  The I.I.I.’s Claire Wilkinson focused on the IBHS report in this Tuesday, August 17, blog item.

HBO is promoting the Spike Lee film’s premiere with segments such as the one, which appeared on the Wednesday, August 18, edition of NBC Nightly News.In the event that this generates additional media interest in the topic, the I.I.I. will be re-issuing a media advisory regarding the availability of the I.I.I.’s Katrina-related information and experts.

USA Today readying story on Katrina’s impact on homeowners insurance market:

Since the call, the I.I.I. has learned that personal finance columnist Sandra Block is doing a story pegged to state-by-state homeowners insurance premium cost changes that have occurred since 2005. The I.I.I.’s Bob Hartwig is scheduled to speak with Block for this piece, which will be prominently placed in USA Today when it appears, Block indicated.

The I.I.I., Property Casualty Insurers Association of America and a number of insurers contributed editorial content to the Tuesday, August 17, debut of www.GulfStateInsuranceCenter.org

Journalists have been invited to preview the Newseum’s exhibit at 555 Pennsylvania Avenue, N.W., Washington, D.C. on Thursday, August 26, between 9 a.m. and 5 p.m. On that same day (Thursday) at 6:30 p.m., the media can attend a special screening of the museum’s original film on Hurricane Katrina. That will be followed by a panel discussion featuring Jim Amoss, editor, New Orleans Times-Picayune; Stan Tiner, editor, Biloxi and Gulfport Sun Herald; and Shepard Smith, anchor, Fox News Channel’s Studio B program.

The I.I.I.’s July 2010 Inflation Watch report is available at the I.I.I. Members site.

Driver inattention was cited as a contributing factor in 36 percent of all pedestrian-auto accidents in New York City that resulted in either a fatality or serious injury, a city government study found. The New York Times had this story on the front page of its Tuesday, August 17, hard-copy edition.

Toyota revisiting accelerator, brake pedal placements to determine whether current design increases possibility of drivers pressing wrong pedal:

Toyota’s chief quality officer for North America told The Wall Street Journal (subscription required) in this Tuesday, August 17, article that he was engaged in a broad inquiry about what could be wrong with the company’s pedals. The design is crucial to Toyota and also to U.S. auto safety regulators after Toyota recalled more than 8 million vehicles around the world because of defects that in some cases led to unexpected acceleration.

Homeowners insurers paid out 6.4 percent more in 2009 than they did in 2008 ($412 million, as compared to $387.2 million) for dog-bite related losses, according to an I.I.I. analysis. Stories on the I.I.I.’s findings appeared in the Chicago Tribune as well as the New York Times, and the I.I.I.’s Mike Barry gave a radio interview on the issue to Market Watch, which has 250 outlets nationwide.

I.I.I. provides guidance to Forbes on story regarding the most/least expensive cars to insure:

The I.I.I.’s Jeanne Salvatore was quoted in this piece, which was posted online on Thursday afternoon, August 19.  “Looking to buy a reasonable ride, something reliable and affordable over the long run?” writes reporter Hannah Elliott. “Consider a Mazda Tribute or Dodge Caravan— they have among the lowest average insurance rates in the country.” Elliott covers personal finance for the magazine; her email address is helliott@forbes.com.

I.I.I. talks to Baltimore Sun about insurance needs of college students: 

The I.I.I.’s Salvatore spoke at length on this topic with the Sun’s Eileen Ambrose and was quoted in her Sunday, August 22, article.

National Underwriter chronicles contentious NAIC debate on regulation of credit-based insurance score vendors:

Advisory organizations that provide credit-based insurance scoring data to insurers, such as FICO, are already regulated by the Federal Trade Commission. But a few state insurance regulators want states to have oversight of FICO and their competitors, according to this Tuesday, August 17, National Underwriter (subscription required) story.

Wall Street Journal editorial board says FASB proposal will increase litigation:

The Financial Accounting Standards Board (FASB) will soon consider a proposal requiring companies to account for the potential cost of ongoing litigation, rules that will favor the interests of plaintiffs’ lawyers, according to this Wednesday, August 18, Wall Street Journal editorial. Advocates of FASB’s proposal claim the proposal is simply a matter of disclosure but the WSJ’s editorial board contends investors would suffer because the new FASB rules would increase litigation and lead to larger settlements. One proposal would require companies to disclose their liability insurance coverage, a provision that the WSJ’s editors see as allowing lawyers to use coverage limits as the targets for damage requests.

Florida candidates for governor and Chief Financial Officer call for detailed review of Citizens’ no-bid contracts:

Alex Sink, Florida’s current Chief Financial Officer (CFO) and a Democratic candidate this year for governor, as well as Jeff Atwater, the current Florida state Senate president and a Republican candidate for CFO, have asked Citizen’s Property Insurance Corporation president Scott Wallace to explain the origins of the 33 contracts in question, according to this Friday, August 13, online story in the South Florida Sun-Sentinel.

Cotton States announces departure from Florida’s property insurance market:

Cotton States Insurance has filed a request with Florida regulators to pull out of the state’s property/casualty insurance market after nearly 50 years because the cost of doing business in Florida has become too expensive, according to a story in the Saturday, August 14, St. Petersburg Times. Atlanta-based Cotton States has about 30,000 auto and homeowners insurance policies in Florida, and the company may begin non-renewing policies as early as November 2010 and complete its withdrawal within two years, pending regulatory approval.

Georgia Ethics Commission members says Georgia should consider seeking criminal charges against two insurance companies:

Rome, Georgia-based State Mutual Insurance Company and one of its subsidiaries, Admiral Life Insurance Company, may have illegally sent political donations to Insurance Commissioner John Oxendine during Oxendine’s unsuccessful bid this year for the GOP gubernatorial nomination, according to at least two members of the Georgia Ethics Commission, the Atlanta Journal-Constitution reports. The insurers are in turn suing the commission, charging that the investigation is politically motivated, the AJC story notes.

Republican run-off election for Oklahoma Insurance Commissioner to be held on Tuesday, August 24:

The two candidates are John Doak, who has been endorsed by The Daily Oklahoman’s editorial board, and former Insurance Commissioner John Crawford. The victor will face incumbent Commissioner Kim Holland, a Democrat, in November’s general election.

Quincy (MA) mayor, city council on verge of sending municipal accident response bills to insurers:

Since our media call, Quincy, Massachusetts, Mayor Thomas Koch has told the Patriot Ledger that he is inclined to approve a council-passed ordinance allowing the city’s fire department, through a vendor, to bill insurance companies for hourly costs incurred after responding to car crashes and fires as well as hazardous-materials incidents. The city’s hourly rate for such services is between $200 and $600, and the vendor, Fire Recovery USA of California, will collect 20 percent of each insurance payout as compensation, the story states.  PCI voiced its opposition to the Quincy proposal in this Thursday, August 19, news release.