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, July 29, please email Mike Barry at michaelb@iii.org.
I.I.I. offers insurance tips for ‘cash for clunkers’ program participants:
Two days after our call, the I.I.I. distributed a press release nationally, timed to coincide with Friday’s issuance of the National Highway Traffic Safety Administration’s (NHTSA) rules governing the federal government’s Car Allowance Rebate System (CARS) program. NHTSA noted in its regulations (see page 29) the assistance it received when drafting these guidelines from the I.I.I., the American Insurance Association, the National Association of Mutual Insurance Companies and Property Casualty Insurers Association of America.
I.I.I. meets with Wall Street Journal personal finance editor:
Insurance reporter Leslie Scism and M.P. McQueen, who focuses primarily on consumer issues, now report to personal finance editor Neal Templin (Phone: 212-416-2857, email: neal.templin@wsj.com). Templin said he is open to story ideas from industry sources, especially ones that focus on new products or price trends. As he is particularly interested in life insurance and annuities, a meeting between Templin and I.I.I. chief economist Steve Weisbart will be arranged.
CBS Early Show airs story on ways to reduce auto, homeowners insurance premiums:
The CBS Early Show ran a segment on reducing insurance premiums on its Thursday, July 23, broadcast, having spoken days earlier with the I.I.I. about the issue.
U.S. House committee vote on Consumer Financial Protection Agency (CFPA) postponed until September:
The Wednesday, July 22, edition of the Wall Street Journal (subscription required) and an online Money magazine story reported that Rep. Barney Frank (D-Massachusetts), chair of the U.S. House of Representatives Financial Services committee, has pushed back until September 2009, at the earliest, a committee vote on the Obama administration’s call for the creation of a CFPA.
California’s cities, counties may turn to municipal accident response fees as a way to generate new revenue:
The Insurance Information Network of California (IINC) is hearing that this week’s state legislative accord will impact adversely not only the State of California’s budget but also those of it’s cities and counties, thereby prompting renewed interest in municipal accident response fees. To read more on the topic from an insurers’ perspective, log on to either www.accidenttax.com or www.accidentresponsefees.org.
Surcharge on California homeowners insurance policies was not part of final budget deal:
IINC reported that the proposed surcharge on California homeowners insurance policies, which were to be collected under the auspices of an emergency response initiative (ERI) to fight wildfires, was not implemented as part of the budget deal aimed at closing California’s $26 billion deficit.
Federal appeals court weighs in on indexed annuities regulatory dispute between SEC—state insurance departments:
The Securities and Exchange Commission (SEC) has been asked by a federal appeals court to revisit its rationale for assuming regulatory power over indexed annuities in 2011. The ruling was covered briefly in the Wall Street Journal (subscription required) on Wednesday, July 22.
NAVA changes its name to the Insured Retirement Institute:
NAVA, the Association for Insured Retirement Strategies, announced on Monday, July 20, that it is now the Insured Retirement Institute (IRI).
New York Times series says federal government withheld data on driving while distracted:
National Highway Traffic Safety Administration (NHTSA) officials responded to evidence that the use of cellphones by drivers was a serious and growing safety risk in 2003 by proposing an extensive study of 10,000 drivers to assess the hazard. The study was never conducted, and NHTSA officials say that part of the reason that hundreds of pages of research and warnings about drivers’ use of cellphones were not released to the public was to prevent an angry reaction in Congress. A Tuesday, July 21, New York Times article, one in a series of pieces on the matter, has additional information.
Massachusetts-based hurricane forecaster lowers its 2009 prediction:
WSI Corporation reduced to 10 from 11 its forecast of the number of named storms that will develop this season; at the same time, WSI dropped to five from six its projection for the number of 2009 named storms that will become hurricanes.
New York’s ABC affiliate files story on power surges and homeowners insurance:
The I.I.I.’s Jeanne Salvatore was interviewed by WABC-TV consumer affairs reporter Tappy Phillips for a Wednesday, July 23, story on whether a homeowners insurance policy covers losses caused by a power surge.
U.S. House considers another six-month extension for National Flood Insurance Program (NFIP):
Due to expire on September 30, 2009, H.R. 3139 would extend the NFIP through March 31, 2010.
Texas Windstorm Insurance Association (TWIA) court case is big news in Galveston:
TWIA has asked a judge to exempt it from paying attorneys’ fees, penalties, interest and other expenses beyond actual damages in cases involving charges of bad faith or charges that TWIA acted maliciously in its dealings with policyholders. Jim Oliver, manager of TWIA, said that in the event that the association lost a case because it had made a mistake or used bad judgment, it also would pay the plaintiffs’ legal fees. The case at issue is Bakht Khattak vs. Texas Windstorm Insurance Association. The Tuesday, July 22, edition of the Galveston Daily News had additional details.
Houston Chronicle prepping piece on Texas FAIR Plan:
Chronicle reporter Purva Patel has been speaking with the Southwestern Insurance Information Service (SIIS) for an upcoming story on the rapid decline in the number of homeowners insurance policy applications being received by the Texas FAIR Plan.
Wall Street Journal says recreational vehicles are making a comeback on Texas Gulf Coast:
Ten months after Hurricane Ike severely damaged Texas’ Bolivar Peninsula, the region’s residents like the idea of being able to drive their home away from danger, if they need to, according to a Monday, July 20, Wall Street Journal (subscription required) article.
Mobile Press-Register editorial board chides state lawmaker for equating tornado losses to losses incurred after hurricanes:
Alabama State Senator Lowell Barron (D-Fyffe) was strongly criticized for taking that stance in a Sunday, July 19, Press Register editorial. In the same piece, the paper’s editorial board praised Alabama Revenue Commissioner Tim Russell’s even-handed approach to the need for stabilizing the coastal insurance market.
Alabama public hearing identifies origins of state’s coastal insurance problems:
Alabama Insurance Department officials told participants at a Monday, July 20, public forum in Baldwin County that, between 2003 and 2007, Alabama property insurers paid out $119 for every $100 in premiums they collected, which explains why more than 28,000 property owners in the state’s coastal counties have either lost their insurance coverage or have seen their annual premiums rise. The event was covered in a Tuesday, July 21, Press-Register article.
September 8 is next hearing date for former CEO of Louisiana Citizens Property Insurance Corporation:
The latest developments in the Louisiana attorney general’s legal case against former Citizens chief executive officer Terry Lisotta were the subject of a Tuesday, July 21, Times-Picayune story. Lisotta was indicted in December 2008, with Louisiana alleging he used the Citizens corporate account as a “personal credit card.”
Mississippi congressman generates media coverage for his multiple-peril insurance proposal:
Rep. Gene Taylor’s (D-Mississippi) Friday, July 17, remarks to a Mississippi Insurance Department event in Biloxi were covered by the Clarion Ledger and WLOX-TV, Biloxi’s ABC affiliate.
New Jersey’s governor appoints interim banking and insurance commissioner:
Neil Jasey was named New Jersey’s interim banking and insurance commissioner on Friday, July 17. Jasey, who retired years ago as a vice president and deputy general counsel at Prudential, is the husband of New Jersey State Assemblywoman Mila Jasey (D-South Orange), according to this online story in the Star-Ledger.
Hartford Courant insurance reporter leaving paper effective July 28:
Diane Levick, the Hartford Courant’s longtime insurance reporter, is leaving the paper on Tuesday, July 28, according to an email Levick sent to her many industry contacts on Friday, July 17. Levick (email: dlevick@courant.com) says her two editors should be the point of contact on insurance stories going forward: Dan Haar, business editor (860-241-6536, dhaar@courant.com); and Peter Sleight, deputy business editor (860-241-6591, psleight@courant.com).
Summit Business Media, National Underwriter’s parent company, reorganizes:
Sam Friedman of National Underwriter has accepted the newly created position of Group Editor-In-Chief. He is now in charge of five Summit titles: the weekly National Underwriter and four monthlies—Claims, Tech Decisions, American Agent & Broker and Florida Underwriter.
Media Matters:
Roll Call acquired Congressional Quarterly….Former AOL executive Michael J. Kelly has been named president and chief executive of the Weather Channel…San Francisco Chronicle reporter Lisa Schmeiser is now writing a Dollars and Sense blog….the TV show Disaster House’s Matt Wendell (email: mwedell@highnoonentertainment.com) is exploring for a fall 2009 episode the insurance repercussions arising from having a car 1) strike a house and 2) run through a home’s garage door….the Charlotte Observer is doing research on North Carolina insurance employment trends….Chris Nichols (Phone: 212-381-6802) has been named assistant managing editor at Yahoo! Finance; he previously worked as managing editor of TheStreet.com….Maine-based Associated Press business reporter Jerry Harkavy has retired….US News & World Report’s Emily Brandon (email: retire@usnews.com) has a new blog called Planning to Retire.
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
For an I.I.I. Blog Search, Click here.
