USA Today publishes major insurance-related stories in advance of Hurricane Katrina’s anniversary:
The day after our call, Thursday, August 26, I.I.I. president Bob Hartwig was quoted in Thomas Frank’s front page look at the National Flood Insurance Program (NFIP), which focused on FEMA data illustrating the issue of numerous NFIP claims payouts on the same properties, and Sandra Block’s assessment of Katrina’s impact on the nation’s homeowners insurance market in states far from Louisiana and Mississippi. Meanwhile, on Wednesday, August 25, USA Today had a story with a Diamondhead, Mississippi, dateline which concluded with a Diamondhead real estate agent saying high coastal property insurance premiums have made it difficult to make a living in the southern Mississippi real estate market, with insurance rates having tripled since 2005. USA Today archived all of its Katrina-related coverage.
I.I.I. media advisory, white paper and videos focus on I.I.I.’s Katrina-related information and resources:
The I.I.I. circulated this advisory and white paper to a broad media audience in the days leading up to Sunday, August 29. The I.I.I.’s website offers video testimonials from Gulf Coast residents who had positive interactions with their insurer after Katrina struck.New York Times reports new protection system for New Orleans will be completed by June 2011:
By that time, nearly $15 billion will have been spent on a system of 350 miles of connected levees, flood walls, gates and pumps designed to protect New Orleans against the risk of a flood that has a 1 percent chance of occurring in any year, according to this front-page story in the Tuesday, August 24, edition of The New York Times. The protection system is already stronger than before Katrina but experts warn that even after the project is completed, New Orleans could still become seriously flooded after a severe storm, the article notes.
Associated Press enterprise piece critiques federal Small Business Administration’s (SBA) performance, post-Katrina:
Mike Kunzelman, an AP reporter who has covered property insurance issues extensively over the years, was one of the contributors to this major piece on the SBA’s conduct in the years after Katrina hit the Gulf Coast.
Spike Lee’s HBO documentary on the Gulf Coast, post-Katrina, makes only passing mention of insurance:
America’s egg farmers assure public their product is safe after recall; I.I.I. hears from Iowa’s National Public Radio (NPR) about potential insurance repercussions:
An advocacy group formed by egg farmers launched a website that they promoted in full-page newspaper advertisements and the I.I.I.’s Mike Barry gave a brief interview on Monday evening, August 23, to Iowa’s NPR affiliate to discuss the kind of commercial insurance policies a farming company might purchase. The Food and Drug Administration (FDA) is investigating whether two Iowa-based farms were the source of tainted eggs, which are believed to have caused salmonella poisoning in 20-plus states. A Seattle, WA-based law firm issued a news release on this issue on Thursday, August 19. In addition, the I.I.I.’s Claire Wilkinson posted a video at Terms + Conditions on the matter on Tuesday, August 24.
Weather Services International (WSI) revises slightly downward its 2010 hurricane season forecast:
WSI predicts there will be 18 named storms, and 10 hurricanes, with five of the hurricanes being major ones (Category 3, or higher). WSI’s July 2010 forecast had those same numbers standing at 19 named storms, and 11 hurricanes, with five of them becoming major hurricanes. Reuters noted that North Carolina northward to Maine is particularly vulnerable to tropical storms this year because of the very warm surface water temperatures in the Atlantic, WSI believes.
I.I.I. challenges Money magazine on portions of homeowners insurance story appearing in its September 2010 edition:
The I.I.I. left a message and hopes to speak shortly with Money reporter Sarah Max about her ‘Five Things You Need to Know About Homeowners Insurance.’ We want to dispute two assertions in her piece. In the story’s opening line, Max writes: “Many insurers have been raising rates to make up for losses they [the insurers] suffered during the financial crisis, industry experts say.” Max then goes on to cite no experts. The reporter, in a separate passage, recommends: “For now, pass on inflation protection and adjust your coverage amount to a more realistic figure. Lowering replacement cost value from, say, $300,000 to $250,000 might shave 10% off your premium.” Max seems to have confused falling property values with rebuilding costs, the I.I.I. believes. Moreover, Money magazine readers who act on Max’s advice are likely to be immediately underinsured—and taking a pass on inflation protection will compound the problem over time.
Florida’s primaries determine general election slates for governor, U.S. Senate, chief financial officer (CFO) and attorney general:
CFO Alex Sink, the Democratic nominee to succeed Governor Charlie Crist, has a slight lead in the polls over Republican Rick Scott, and both are well ahead of Independent candidate Bud Chiles, according to this political website. Meanwhile, Governor Crist is waging an independent campaign for the U.S. Senate, facing off against Republican Marco Rubio and Representative Kendrick Meek, a Democrat. The latest U.S. Senate poll in Florida is here.
I.I.I. participates in Pinellas County e-Town Hall meeting on hurricane preparedness and insurance:
The I.I.I.’s Florida representative, Lynne McChristian, was one of five panelists who participated on Thursday, August 26, at 7 p.m., in a live presentation billed as Surviving the Storm: 2010. A video of the one-hour event will be posted soon at Pinellas County’s official government website, a municipality which includes St. Petersburg, Florida.
Los Angeles’ ABC affiliate, other outlets, cover Insurance Information Network of California (IINC) press conference:
Pegged to the first anniversary of the Station Fire, the largest in Los Angeles County’s history, the Wednesday, August 25, press conference in Altadena, CA highlighted the need for southern Californians to have effective landscaping and the right insurance. KABC-TV’s segment aired later that same day and included interviews with IINC’s Candy Miller and California Insurance Commissioner Steve Poizner.
Los Angeles Times reports major academic study concluded that Southern California is long overdue for a major earthquake along the San Andreas fault:
Geology, in an online article summarizing a study conducted by scientists at the University of California-Irvine and Arizona State University, reports that quakes along the fault have occurred every 88 years on average, far more often than the 250 to 450 year gaps between quakes, as was previously believed. This Friday, August 20, front page story in The Los Angeles Times describes how the new conclusion was reached and explains that because of the great length of the San Andreas fault’s southern section, it is capable of producing a temblor as large as magnitude 8.1.
Louisiana Citizens reaches $23 million settlement with policyholders who contend they were not properly compensated after Hurricanes Katrina and Rita:
The settlement had its origins in the case of Stephanie Press v. Louisiana Citizens, which dealt with general contractor’s overhead and profit, according to this Times-Picayune story. Overhead and profit cases are ones involving instances when home repairs require three or more types of specialists (e.g., an electrician, a roofer and a drywall installer). Insurers are supposed to pay extra, usually an amount equal to 20 percent of the total repair bill, to cover the cost of the general contractor who coordinates the work. Under the proposed settlement, which will be considered in Orleans Parish Civil District Court in November 2010, Citizens admitted no wrong-doing, according to the article.
Oklahoma’s Republicans nominate Tulsa insurance agent for insurance commissioner:
John Doak easily turned back a challenge from former Insurance Commissioner John Crawford of Oklahoma City (71-29 percent) in the GOP run-off election, which was held on Tuesday, August 24. Doak will now face incumbent Oklahoma insurance commissioner Kim Holland in November’s general election.
Virginia Insurance Commissioner Al Gross to retire at year-end 2010:
Commissioner Gross has held the department’s top job since 1996, and joined the agency in 1981, according to this article in Insurance & Financial Advisor.
National Insurance Crime Bureau (NICB) reports dramatic spike in number of questionable slip and fall claims over the last two-plus years:
NICB and its member companies have increased their scrutiny of commercial fraud, slip and fall claims, and workers’ compensation fraud cases, the NICB announced earlier this month. Questionable slip and fall claims increased from 325 in the first quarter of 2008 to 565 in the fourth quarter of 2009. But in the first six months of 2010, there already were 997 questionable slip and fall claims, NICB found.New York Times, NY state Assemblywoman contact I.I.I. about bed bug infestation coverage:
Texas-based New York Times reporter Kate Murphy (k8murphy@gmail.com) spoke with the I.I.I.’s Loretta Worters about bed bugs and whether residential and/or commercial property insurance policies cover bug removal. The I.I.I.’s Jeanne Salvatore spoke this week with New York State Assemblywoman Linda Rosenthal, who represents the 67th Assembly District, which covers Manhattan’s Upper West Side, about bed bug coverage issues. The state lawmaker is hearing from her constituents on this matter, and appears interested in offering legislation to address the issue.
Chicago Tribune prepping piece on travel insurance:
Consumer reporter John Yates spoke with the I.I.I.’s Salvatore about travel insurance for a story he’s writing on the issue. Yates is also going to incorporate this information into a book he’s writing on consumer-related financial issues.
Leader’s Edge magazine readying story on insurance repercussions emerging from the BP oil spill:
Former Reuters reporter Ed Leefeldt has reviewed the I.I.I.’s just-updated Deepwater Horizon information and some of the facts/statistics in that presentation will likely be incorporated into his article. Leefeldt worked with the I.I.I.’s Barry on this story.
AM Best doing research on property insurance coverage issues arising from growing number of vacant homes:
Diana Rosenberg, the AM Best reporter, spoke to Salvatore for her story.
Former New York insurance superintendent wins editorial endorsement in state attorney general primary:
The New York Daily News’ editorial board endorsed Eric Dinallo’s bid for state attorney general. Five candidates are vying for the Democratic nomination in the state’s Tuesday, September 14, primary election. Dinallo was New York State’s superintendent of insurance between 2007-2009.
Major League Baseball (MLB) executives believe insurance company personnel leaked financial information on teams to the media:
“The [insurance] companies under investigation sell liability insurance for top-level team executives and directors, not players,” according to this Wednesday, August 25, New York Times article. The Pittsburgh Pirates’ financials were leaked to the Associated Press earlier this month, and those of the Florida Marlins, Seattle Mariners, Los Angeles Angels and Tampa Bay Rays have been posted at www.deadspin.com.
Bloomberg appoints new insurance editor for its news wire:
Manhattan-based Larry Light, who worked most recently at The Wall Street Journal, joined Bloomberg news wire a few weeks ago. His phone number is 212-617-4652, and Light’s email address is llight1@bloomberg.net
