SYNOPSIS ALL INDUSTRY CONFERENCE CALL February 24, 2010

I.I.I. president Bob Hartwig stressed the importance of retaining an in-force homeowners insurance policy at all times but ABC reporter Chris Cuomo focused instead on JP Morgan Chase’s contractual arrangement with the company from whom the bank acquires some of its force-place homeowners insurance policies. The insurer, an I.I.I. member company, was not mentioned by name in either the on-air or online story.  The segment, which also features commentary by the Consumer Federation of America’s Robert Hunter, was broadcast as part of World News with Diane Sawyer on Tuesday, February 23. The family profiled in the piece resides in Levittown, Pennsylvania.

"In his testimony, (Transportation Secretary Raymond) LaHood caused a stir in the committee room by declaring that the millions of recalled Toyotas "were not safe," echoing a public comment he made a few weeks ago that owners should not drive their recalled cars. As he did with those earlier comments, he later amended his declaration before the committee, saying that cars recalled by any auto company needed to be repaired, and he urged their owners to visit dealerships," the New York Times’ Thursday, February 25, article on the Wednesday, February 24, hearing reported.  Secretary LaHood was the only senior Obama administration official to address the U.S. House committee, even though National Highway Transportation Safety Administration (NHTSA) administrator David Strickland had also been scheduled to testify.

Pegged to Toyota recall, Associated Press story examines how consumers can make sure they have right type/amount of auto insurance coverage:

The I.I.I.’s Jeanne Salvatore worked with Iowa-based personal finance reporter David Pitt on this piece, which hit the AP wire on Wednesday, February 24.

Wall Street Journal op-ed piece argues Toyota recall illustrates need for trial lawyers:

  This op-ed column from a managing partner and a senior partner at Robinson, Calcagnie & Robinson, a California firm that has represented plaintiffs in the Ford Pinto, Vioxx, tobacco and other major cases, contends that despite all the calls for tort reform, product liability litigation is more important than ever as a means of protecting consumers. Robinson and Calcagnie note that the current recalls by the Toyota Motor Corporation have led to revelations that the corporation failed to disclose potentially lethal defects, and that the corporation’s failure is the latest example of inadequate federal oversight. The article appeared in the Wall Street Journal Wall Street Journal on Wednesday, February 24 (subscription required).

  Few media outlets have reported on the Congressional fate of the NFIP’s extension since this Friday, February 12, Best Wire story (subscription required) appeared.

U.S. House passes bill which maintains federal anti-trust exemption for medical malpractice insurers:

  At the same time, health insurers were stripped of their exemption from federal anti-trust laws, by a vote of 406-19, the Washington Post reported on Wednesday, February 24.

Virginia lawmakers reject two measures that would have put home insurers into middle of defective Chinese drywall controversy:

  The first measure called for allowing policyholders to file claims with their homeowners insurer for property damages alleged to have been caused by defective Chinese drywall; the second would have prevented insurers from either canceling policies or raising premium rates on properties built with this type of drywall.  Details on the Virginia Commerce and Labor Committee’s actions were in the Friday, February 12, Norfolk Virginian-Pilot.

  The office of California Attorney General Jerry Brown has submitted a new title and new language to describe the insurance related voter initiative, Proposition 17, which will appear on the state ballot on Tuesday, June 8, according to this Wednesday, February 24, San Francisco Chronicle story.

Poll indicates Texas governor leads GOP rivals as primary election date approaches:

  Governor Rick Perry (40 percent) is ahead of U.S. Senator Kay Bailey Hutchison (31 percent) and Debra Medina (20 percent) as the Tuesday, March 2, Republican primary nears, according to this poll released on Tuesday, February 23.  The governor, however, needs to secure a majority of the vote next week in order to avoid a Tuesday, April 13 run-off election against the second-place finisher, the Public Policy Polling news release states.

Tulsa-based insurance agent seeks Republican nomination for Oklahoma insurance commissioner:

  John Doak, a State Farm agent, wants to be the GOP nominee in the November 2010, the AP reports.  Commissioner Kim Holland, a Democrat, has already said she will seek re-election.

Washington lawmakers reject credit-based insurance scoring ban; approve bid to establish flood insurer of last resort:

  Despite the avid support of Insurance Commissioner Michael Kriedler, a majority of Washington’s state legislators in both the Senate and House rejected a ban on credit-based insurance scoring, according to this Thursday, February 18, Best Wire (subscription required) story.  The commissioner had more legislative success earlier this month when the state Senate approved Senate Bill 6240, a Kriedler-supported measure that would allow the insurance commissioner’s office to set up a joint underwriting association, made up of insurance companies, to serve as an insurer of last resort for businesses that cannot find flood coverage. A similar bill, House Bill 2560, is currently in the state House of Representatives, according to this press release from Commissioner Kriedler’s office.

The rise and fall of the now-defunct Southeastern U.S. Insurance Incorporated (SEUS)-and the battle between Insurance Commissioner John Oxendine and the company’s sole owner and chief executive, M. Clark Fain III-was detailed in this Sunday, February 21, AJC story. As SEUS became more successful, Fain allegedly took care of political and business friends who served on the company’s advisory board, compensating them with money, trips to foreign countries and hunting trips, the AJC reports

Georgia covering 90-plus percent of SEUS’s policyholders; Atlanta Journal-Constitution explores fate of others:

  The AJC examined in a Sunday, February 21, article the financial issues confronting the 88 policyholders, and their employers, who secured coverage through Southeastern U.S. Insurance, Inc. (SEUS) when it was organized as a captive, rather than a workers compensation insurer.

  WWMT-TV reporter Josh Roe filed a story this week on whether consumers, when cold-calling Michigan auto insurers, received premium rate quotes that would save them money, compared with what they are currently paying.  This piece aired on Monday evening, February 22, and the I.I.I., which offered the reporter guidance on the variables that go into pricing an auto insurance policy, is mentioned at the very end.  WWMT is the CBS affiliate in Kalamazoo, Michigan.

Hanover/Gulfstream accord will keep thousands from needing coverage from Louisiana’s property insurer of last resort, state says:

  The entry of Florida-based Gulfstream Property and Casualty Company into the Louisiana homeowners market is welcome news to Insurance Commissioner Jim Donelon, according to this Friday, February 19, statement from his office.  The Times-Picayune  offered a same-day analysis of the Hanover-Gulfstream deal.

Louisiana commissioner unveils 60-second radio spot on insurance related tax filing tips:

  The audio can be heard here.  The radio campaign was announced at a Friday, February 19, press conference in Baton Rouge, where Commissioner Donelon was joined by Department of Revenue Secretary Earl Millet.

ABC News division may reduce its payroll by 20 to 25 percent:

  The network is looking to cut hundreds of news-gathering jobs through a combination of buyouts and layoffs, according to a Wednesday, February 24, New York Times  article.

Hearst negotiating to sell its 50 percent ownership stake in Smart Money magazine:

  This Tuesday, February 23, AP article offers details about the reported talks between Hearst and News Corp’s Dow Jones unit, which owns the other 50 percent of the publication.  The two companies have shared ownership of the personal finance magazine since 1991, the  Associated Press reports.