To recap the issues raised during Wednesday’s conference call, here are some of the key media stories, and the messages we’re conveying.
If there is a subject you would like to see addressed on Wednesday, September 2, please email Mike Barry at Michaelb@iii.org.
I.I.I. mourns the death of its longtime special counsel:
William Bailey, Esq., who had served in that role for I.I.I. since 1986, died on Friday, Aug. 21. The well-known and highly respected industry spokesman was 68. The I.I.I. issued this release and his passing was covered in National Underwriter, Best Wire, and Business Insurance. NU’s Sam Friedman dedicated his A View from the Press Box column to Bailey on Friday, Aug. 28 and the Boston Globe published an in-depth obituary in its Sunday, Aug. 30, edition.
Tropical Storm Danny moves northward up the Atlantic coast:
Since the call, the I.I.I. issued the following release to remind the media of the threats storms pose to East Coast states, home to some of the nation’s most densely populated communities and high-priced real estate. The Weather Channel interviewed the I.I.I.’s Bill Davis, in its Atlanta, GA studio, on Friday, Aug. 28, at 7:30 pm, EST about the insurance repercussions of hurricanes.
I.I.I. president gave interview to ABC’s 20/20 but did not appear on Friday, Aug. 28 broadcast:
Bob Hartwig gave a taped interview to John Stossel on Monday, Aug. 17, but Hartwig’s explanation of risk-based pricing as it pertains to the property/casualty industry was not incorporated into Stossel’s 20/20 piece on health insurance, which aired on Friday, Aug. 28 at 10 pm, EST.
Federal government, Insurance Institute for Highway Safety (IIHS) to toughen car safety standards:
2010 and 2011 models will be scrutinized more closely by the National Highway Traffic Safety Administration (NHTSA) and the IIHS than in the past, especially when it comes to roof strength, according to this Wednesday, Aug. 26, Wall Street Journal (subscription required) article.
Moody’s offers favorable assessment of p/c insurer investment portfolios:
“A cautious investment approach has meant that most P&C insurers have been able to operate through a very difficult investment environment without seriously compromising capital adequacy," Moody's senior credit officer Paul Bauer wrote, in the study released this week and reported upon by the Associated Press . "Based on our stress testing, we believe that the ratings of most P&C insurers can withstand further declines in investment markets without a downgrade,” said Bauer.
FICO report examines how credit line decreases are impacting consumer credit risk:
Recognizing that any news about credit scores often leads to media inquiries about credit-based insurance scoring, the I.I.I. developed the attached message points, based on FICO’s August 2009 report, which is also attached. The National Association of Insurance Commissioners (NAIC) is holding a credit scoring discussion on Wednesday, Sept. 23, at 5 pm. It will be held at the Gaylord National Hotel and Convention Center, National Harbor, Maryland, as part of the NAIC’s regularly scheduled fall gathering.
I.I.I. featured in Wall Street Journal piece on college students and insurance:
Parents of children on their way to college were reminded in this Monday, Aug. 24, article (subscription required) of the importance of reviewing various insurance policies to determine whether these children will continue to be covered while away at school. Auto insurance premiums, which probably became twice or three times as high when a teenage child first received a drivers license, are likely to become less expensive when he or she goes away to school. I.I.I. also issued a release on a related issue on Wednesday, Aug. 26.
White House study warns H1N1 virus could cause 30,000-90,000 U.S. deaths:
The report, released on Monday, Aug. 24, by the White House, was prepared by the President's Council of Advisors on Science and Technology, and summarized in this next-day USA Today article.
U.K. public service announcement aims to discourage texting while driving:
The CBS Evening News and CNN were among those reporting this week on the graphic video, which was filmed in Wales.
Associated Press looking at state-run property insurers of last resort and their impact on state budgets:
Emery Dalesio, an AP business reporter based in Raleigh, NC, (Phone: 919-510-8937, email: edalesio@ap.org) has sought I.I.I.’s guidance and facts/stats on residual markets for an upcoming story on the financing of state-run property insurers of last resort and how some are structured in ways that could imperil their state’s overall finances.
ABC’s Good Morning, America asking about staged accidents:
GMA representative Matt Spector (email: Matt.E.Spector.-ND@abc.com) is seeking experts who can discuss the law enforcement side of staged accident rings (where do they operate? are they more or less prevalent today than in the past?). The I.I.I. has learned since the call that GMA’s Vanessa Weber is serving as the story’s segment producer.
CBS’s online Money Watch wants to know if homeowner’s insurance policies ever cover investment fraud losses:
Reporter Marlys Harris (Phone: 203-454-1891, email: marlys.harris@gmail.com), the Web site’s consumer reporter, blogged on the issue on Tuesday, Aug. 25.
South Florida’s Sun-Sentinel readying story on complaints filed this year and last against state’s homeowner’s insurers:
Julie Patel of the Sun-Sentinel plans to write an article on the 2008-2009 complaints, which the Sun-Sentinel received from Florida’s Department of Financial Services after filing a Freedom of Information Act Law (FOIL) request. The I.I.I. provided Patel with context for the complaints and offered comments on insurer claims handling practices.
Cleveland Plain-Dealer prepping piece on Ohio auto insurance market, with a focus on Progressive:
Shaheen Samavati, a business reporter with The Plain Dealer (Phone: 216-999-4331, email: ssamavat@plaind.com), is looking at whether the Mayfield, Ohio-based Progressive’s aggressive advertising campaign in its home state has improved their Ohio market share in recent years.
Florida’s top insurance regulator issues strong rebuttal to St. Petersburg Times editorial:
Florida Insurance Commissioner Kevin McCarty says that, despite what the Times editorial board stated earlier this month, his office has been forthcoming about the new capital coming into the state’s property insurance market via surplus lines carriers, according to this Wednesday, Aug. 26, op-ed piece by McCarty.
Florida Insurance Council (FIC) says Catastrophe Fund, Citizens are financially stronger than in the past:
The Florida Hurricane Catastrophe Fund (FHCF) could have in the bank by year-end $7.8 billion ($4.3 billion cash, plus $3.5 billion from bonds issued in 2007), putting the FHCF in “one of the strongest liquidity positions” in its 16-year history, the FIC’s Monday, Aug. 24, report, stated. The FIC analysis also cited favorably a May 1, 2009, Citizens Property Insurance Corporation press release, which said Citizens' claims-paying ability is solid, “with access to $16 billion based on surplus, reinsurance, pre-event bonding and lines of credit.”
Florida’s workers compensation insurance rates could decrease 6.8 percent statewide:
The National Council on Compensation Insurance (NCCI) says the reduction, if enacted on Jan, 1, 2010, could generate savings of more than $166 million for Florida employers. Florida’s Office of Insurance Regulation, which will hold an October 2009 hearing on the NCCI’s recommendation, issued this release on Friday, Aug. 21.
Baton Rouge Business Report says law limiting named storm deductibles is a Gustav legacy:
“Hurricane, or named-storm, deductibles were another cause of the 827 official complaints filed with the (Louisiana) Department of Insurance after Gustav,” the Monday, Aug. 24, edition of the Baton Rouge Business Report states. “The resulting controversy caused Gov. Bobby Jindal to sign a bill last month that restricts insurance companies from charging more than one named-storm deductible per hurricane season. Insurance Commissioner Jim Donelon says the bill, which takes effect Jan. 1, 2010, was modeled after similar legislation enacted in Florida in 2005, one year after the state sustained damage from four named storms and homeowners in cities like Orlando were faced with up to three named-storm deductibles at once for Category 4 Charley, Category 2 Frances and Category 3 Jeanne.”
Louisiana insurance commissioner to contest almost $700K bill from state’s Legislative Auditor:
Commissioner James Donelon told the Times Picayune on Monday, Aug. 24, that the Louisiana Department of Insurance will refuse to pay almost $700,000 in anticipated bills Legislative Auditor Steve Theriot is expected to submit. The dispute between the two agencies dates back about 18 months, and the dollar amount was arrived at when assessing expenses related to litigation, legal fees and “the excessive time and effort his (Theriot’s) staff auditors had to work to try to get records and complete the 2008 review of the department (of insurance) without them,” the article states.
Louisiana Citizens allocates $6 million to cover class-action attorney lawsuit expenses while appealing $95 million judgment:
Louisiana Insurance Commissioner Donelon issued a press release with the details on Monday, Aug. 24.
Texas Windstorm Insurance Association reform bill to require mandatory flood insurance purchases effective Sept. 1:
“Although rules still are being formulated, the gist is that beginning next month, anyone building, altering, remodeling or enlarging homes or commercial properties in so-called ‘Velocity’ or ‘V’ Zones,” must buy flood insurance if they want coverage through the Texas Windstorm Insurance Association, an insurer of last resort in risky coastal counties,” according to this Wednesday, Aug. 26, article in The Galveston County Daily News. “V Zones, where properties are exposed to high-velocity water and storm surge, include beach-side areas in Galveston and almost all of Bolivar Peninsula, where Hurricane Ike wiped more than 3,000 houses and other buildings off their foundations.
Former New York superintendent of insurance lays groundwork for 2010 attorney general campaign:
Eric Dinallo, who stepped down last month as New York’s superintendent of insurance, has opened a campaign account, “Dinallo for Attorney General,” with the state Board of Elections, according to this Thursday, Aug. 20, New York Times blog item.
Change at the top for New York’s Liquidation Bureau (NYLB):
Dennis Hayes became the special deputy superintendent in charge, the top post at the NYLB, effective Wednesday, Aug. 26. He succeeds Mark Peters. More on the NYLB’s executive staff can be found here.
Auto damage appraiser licensing board piece is Boston Herald’s ‘most read’ business story:
Governor Deval Patrick under state law is allowed to appoint four of the board’s five members, which licenses appraisers and resolves complaints between car-repair companies and auto insurers. Joseph Valarioti, a 15-year member of the licensing board, claims Governor Patrick broke the law when he replaced Valarioti, an auto body shop owner, with Karen Mills, a Progressive executive, because it upset the board’s balance of power between auto body repair shops and auto insurers. Licensing board members receive no compensation, according to this Wednesday, Aug. 26, Boston Herald story, the “most read” business story of the day, their Web site said. More on the board, which is housed within the division of insurance, is here.
Mercury News touts Thursday, Sept. 10, fire preparedness and protection workshop in San Jose, CA:
Presented by the California Fire Safety Council, along with Farmers Insurance Group, this free, educational workshop will be held at the San Jose Holiday Inn, San Jose, CA, between 9:30 am. and 2:30 pm., according to this Tuesday, Aug. 25, online story in the San Jose Mercury News. California Insurance Commissioner Steve Poizner will open the program.
Nevada to hold first annual ‘Insurance Industry Day’:
The daylong conference, to be held on Friday, Sept. 11, at Harvey’s Lake Tahoe resort, is “designed to further cultivate a more efficient and responsive relationship between the Nevada Division of Insurance and industry stakeholders,” according to this Thursday, Aug. 20, press release.
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