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, February 10, please email Michael Barry at michaelb@iii.org
ABC examining arrangements between banks, insurers in force-placed coverage transactions:
ABC’s Chris Cuomo is working on a story pegged to a bank that is paid a 15 percent commission by a homeowners insurer when the bank purchases a force-placed homeowners insurance policy. These policies are placed on properties where the previous homeowners insurance policy has lapsed. The I.I.I.’s Bob Hartwig taped an interview with Cuomo on Friday, February 5, the same day Cuomo sent this Twitter message in search of homeowners who had had bad experiences with a force-placed policies. Hartwig’s comments focused on the importance of having an in-force homeowners insurance policy on a residential property at all times, to protect both the homeowner and the mortgage holder’s financial interests. It is unclear when, or if, the piece will air, although ABC is hoping to get enough information together for a segment to be broadcast on either Good Morning, America, World News Tonight, or both. ABC has also spoken to the Consumer Federation of America’s Robert Hunter about the issue of force-placed homeowners insurance policies.ACIC and PCI launch Web site on California efforts to impose accident response fees:
CalCrashtax.com is a project of the Association of California Insurance Companies (ACIC) and Property Casualty Insurers Association of America (PCI) aimed at educating insurance professionals, consumers, public officials and the general public on the issue of accident response fees.Obama administration’s budget proposal has potentially adverse implications for Terrorism Risk Insurance Act (TRIA):
The White House plan would require the insurance industry to carry more of the risk of insuring against terrorist attacks, according to a Monday, February 1, Wall Street Journal online article (subscription required). The Obama administration proposes a reduction in the federal subsidy to insurers under TRIA, which would increase the losses the private sector would have to cover if an attack were to occur.Federal government’s support for companies that provide crop insurance could be reduced:
The Obama administration’s budget proposal for 2011 would save billions of dollars by placing new limits on farm subsidies and by reducing the government’s support for companies that provide crop insurance, this Monday, February 1, Wall Street Journal online story (subscription required) reports. In its budget proposal, the White House said that farmers who need the most assistance will continue to receive support but that “wealthy farmers” should no longer benefit from the billions of dollars provided by the Department of Agriculture each year. The administration plans to lower costs by reforming the department’s method of subsidizing the crop insurance industry.Massachusetts Division of Insurance says drivers of recalled Toyota vehicles who were in accidents may not have been ‘at-fault’:
The state’s insurance regulator issued a consumer alert on Friday, January 29, saying the Division of Insurance will revisit auto insurance policy surcharges assessed against the drivers of recalled Toyota vehicles, if the driver was deemed at the time to have been ‘at-fault.’ This Monday, February 1, Boston Herald story notes that impacted Toyota drivers must file an appeal by Tuesday, March 30, 2010, or within 60 days of getting a recall notice, whichever date comes latest.California auto insurance ballot initiative to be known as Proposition 17:
Details on Proposition 17 are at the California Secretary of State’s Web site, and voters will be asked to consider the measure when they go to the polls on Tuesday, June 8. The Campaign for Consumer Rights issued this Monday, February 1, press release in opposition to the passage of the proposition.New York Daily News reports 33 percent increase in state’s receipt of suspicious activity reports (2006-2009):
Pegged to New York State Insurance Department statistics, the NYDN’s Albany bureau chief offered an assessment, in this Wednesday, February 3, article, of what this trend potentially means for New York’s auto insurance policyholders.Albany Times-Union’s Capitol Confidential blog picks up on I.I.I. president’s remarks to state Legislature on no-fault auto fraud:
I.I.I. president Hartwig’s Thursday, February 4, testimony to the state Senate’s insurance committee in Albany, NY, were highlighted in the Capitol Confidential blog, which is widely read by state legislators and their staff members.Florida, Louisiana insurance departments make communications, public affairs appointments:
Jack McDermott, who had been acting director of communications for Florida’s Office of Insurance Regulation (OIR), was named director of Communications, and Brittany Benner, a former Gannett newspaper reporter in Florida, is now the OIR’s deputy director of Communications, this Monday, February 1, Insurance Journal article reports. Meanwhile, in Louisiana, Insurance Commissioner Jim Donelon announced on Friday, January 29, that Lori Joubert Cherry will succeed Amy David as the agency’s deputy commissioner of public affairs. David left the Insurance Department in early January 2010.
California’s insurance commissioner claims Meg Whitman’s campaign is trying to force him out of the GOP primary:
Commissioner Steve Poizner’s campaign Web site has details about his Monday, February 1, press conference, which generated stories statewide and nationally. The California Republican gubernatorial primary, which is now down to a two-person race between Poizner and Whitman, will be held on Tuesday, June 8, 2010.Michigan insurance regulator rescinds 1997 exemption order governing personal lines policy forms:
Commissioner Ken Ross, head of Michigan’s Office of Financial and Insurance Regulation (OFIR), announced on Monday, February 1, that effective August 1, 2010, the state’s insurance companies must submit to the OFIR, prior to their use, “all new or revised insurance documents and forms for personal, family or household purposes.” Commissioner Ross’s order rescinds a 1997 order by former Insurance Commissioner Joe Olson.Atlanta Journal-Constitution reports on Congressman’s dispute with insurance commissioner over failed insurer:
U.S. Rep. Lynn Westmoreland (R-Georgia) said on Monday, February 1, that he believes Insurance Commissioner John Oxendine used an investigation into a failed insurance company to pressure Rep. Westmoreland to take a low profile in the state’s Republican gubernatorial primary. Commissioner Oxendine is one of the GOP candidates for governor and the congressman is supporting one of the commissioner’s rivals, this Tuesday, February 2, Atlanta Journal-Constitution story explains.Mississippi ‘policyholder bill of rights’ stays alive in state Legislature:
Mississippi’s House Insurance Committee has approved a compromise version of HB 563, keeping the measure alive ahead of a legislative committee deadline, according to a Tuesday, February 2, Biloxi Sun Herald article. The bill must pass the full House and win approval in the Senate Insurance Committee, which has not considered any similar insurance reform bills. HB 563 would place the burden of proof on insurers when proving exclusions, and require insurance companies to notify homeowners if they intend to raise rates by 10 percent or more in a written notice 30 days before the policy renewal date. If the insurer does not send the notice in time, the policy would renew at the existing rate, the story states.Louisiana attorney general offers opinion on public release of sensitive insurance-related information:
Louisiana AG Buddy Caldwell’s office issued an opinion that public officials can decide whether a document contains proprietary information before it is released in response to a public records request, according to a Wednesday, February 3, Times-Picayune story. Requested by the state department of insurance, the AG’s opinion allows time for companies to appeal the release of information, and also notes that when insurers submit documents containing a “confidential, proprietary or trade secret information” designation to keep them out of the hands of the public, insurance department officials must determine within 30 days if they agree to the designation. AG opinions do not have the effect of law but are generally regarded as a guide unless overturned by a court. Louisiana Department of Insurance Chief of Staff Denise Brignac said the opinion was sought concerning internal operations of the department and how it handles possible rate and actuarial information from insurers.Syracuse (NY) Post Standard looking into ISO ratings as city hires professional firefighters:
Reporter Doug Dowtey (email: ddowty@syracuse) is doing research for a possible story on ISO ratings and their effect on homeowners insurance rates. The inquiry originates from the Syracuse Fire Department adding professionals to their volunteer firefighting service and the claim that taking this step would help the city boost its ISO rating.
The I.I.I. is cited regularly in the media as an authoritative source of insurance information. To access the current I.I.I. press clips, click here
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