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 15, please email Mike Barry at michaelb@iii.org.
U.S. auto insurers to have input into ‘cash for clunkers’ program regulations:
Since the call, the National Highway Traffic Safety Administration’s (NHTSA) acting deputy administrator, Ron Medford, spoke with the I.I.I. and three insurance advocacy trade groups (AIA, NAMIC and PCI) on auto insurance guidelines for NHTSA’s ‘cash for clunker’s’ initiative. The conference call took place on Friday morning, July 10 and focused on what will constitute proof that a trade-in vehicle has been continuously insured for the past 12 months. The federal government’s rules for the program must be filed no later than Friday, July 24. NBC’s Nightly News had a piece on the ‘cash for clunkers’ program on its Thursday, July 9, broadcast.
Front page Los Angeles Times story chronicles the checkered past of a ‘storm chaser’:
The LA Times found that there have been dozens of fraud complaints, lawsuits and government investigations against Steve Slepcevic and his Rancho Palos Verdes, California-based company, Paramount Disaster Recovery, from customers, subcontractors, lawyers, banks and state regulators who accuse Slepcevic of cheating insurers and those who have already been hurt by devastating catastrophes. The complaints came from six states over the past decade, according to the story from the paper’s Sunday, July 5, edition.
California’s insurance commissioner rejects proposed workers compensation insurance rate hike request:
Commissioner Steven Poizner gave details about his decision in a Wednesday, July 8, press release, which links to other documents related to the issue.
Florida’s insurance commissioner defends governor’s veto of ‘Consumer Choice’ bill in Tallahassee op-ed piece:
Florida Insurance Commissioner Kevin McCarty had an op-ed published in the Tuesday, July 7, Tallahassee Democrat, defending Governor Charlie Crist’s veto last month of House Bill 1171.
I.I.I. is exhibitor at Florida Press Association convention:
The I.I.I. distributed more than 175 of its Insurance Handbook for Reporters at the 2009 Florida Press Association annual convention, held in Palm Beach, Florida on Thursday, July 9, and Friday, July 10. The audience consisted primarily of managing editors and publishers, and the I.I.I.’s participation in the event generated several invitations, including: writing an op-ed piece for the Scripps Howard newspaper chain; speaking to the editorial board of the Port Charlotte Sun; addressing an upcoming meeting of Spanish-language journalists in Orlando; and contributing a periodic column to the Florida Courier, a statewide publication aimed at the African-American community.
Most Citizens policyholders in Florida are in line for a rate hike next year; a few will see premiums decrease:
Pointing to the ‘glide path’ to rate adequacy as mandated by House Bill 1495, the Citizens board of governors voted at its Wednesday, July 8, session to raise rates up to 10 percent for most Citizens policyholders while reducing premiums for others. The Miami Herald offered more details in a Thursday, July 9, article.
Florida lawmaker/insurance agent announces bid for chief financial officer:
Florida Representative Pat Patterson (R-DeLand), a five-term state legislator, has announced he will challenge Florida Senate President Jeff Atwater in a 2010 Republican primary to become the state’s next chief financial officer (CFO), Insurance Journal reports. Patterson will become an independent insurance agent in August 2009 after spending 31 years as an Allstate agent. Alex Sink, Florida’s incumbent CFO, has said she is running next year for governor.
CNBC prepping piece on Microsoft product’s potential impact on insurer risk-modeling:
CNBC producer Sameera Iqbal is working on a story about Microsoft’s High Performance Computing (HPC) applications and the extent to which HPC has been used to create risk models for events such as hurricanes and swine flu outbreaks. It is unclear whether CNBC focusing the story solely on Microsoft’s product. Ms. Iqbal’s New Jersey office number is 201-735-3124.
Bloomberg reporter doing story on insurer views related to climate change:
Bloomberg’s Jim Efstathiou is doing a story on insurers and their views and actions related to climate change, pegged to last week’s release of a Geneva Association study on the issue. He is interested in speaking with insurers that have some interest in this area. His New York City office number is 212-617-1647, and he can be reached via email at: jefstathiou@bloomberg.net.
Texas Transportation Institute study says Americans are spending less time in rush-hour traffic:
A Texas Transportation Institute study showing American drivers are spending less time in rush hour traffic was picked up by the Associated Press (AP) and appeared this week in major media outlets such as the Wall Street Journal (subscription required). The decline indicates commuting has changed due to higher gas prices and the recession, the report states. Traffic is improving in Los Angeles, where congestion is still the worst in the U.S., while commuting has become more difficult in and around Washington, D.C., which now ranks second in this same category. The other three most congested metropolitan areas are, in descending order, Atlanta, Houston and San Francisco-Oakland.
Rental car accidents occur very rarely, USA Today survey finds:
Hertz reported its company’s rental fleet was involved in 1.64 accidents per 1,000 rental days in 2008, according to this Tuesday, July 7, USA Today article. The piece was pegged to the issue of consumer liability in the event a rental car is damaged, and Hertz was the only company willing to share this information with USA Today, the reporter notes.
Wall Street Journal says some property insurers could face challenges if 2009 hurricane season is severe:
Property insurers usually depend on gains over the long term to outweigh short-term losses but the current hurricane season could cause trouble for certain companies because of the unpredictability of today’s capital markets, Wall Street Journal reporter Liam Pleven writes in a Tuesday, July 7, story (subscription required).
U.S. House subcommittee hears Obama administration explain need for proposed Consumer Financial Protection Agency:
Michael Barr, the U.S. Treasury Department’s assistant secretary for financial institutions, testified on Wednesday, July 8, about the importance of creating a Consumer Financial Protection Agency (CFPA). Barr’s appearance came before the U.S. House of Representatives’ Energy and Commerce subcommittee on Commerce Trade and Consumer Protection.
FEMA prepared for a storm the size of Hurricane Ike but not one like Hurricane Katrina, Washington Post reports:
FEMA can manage a competent response to typical disasters—for example, handing out $326 million in housing and other aid after Hurricane Ike struck Galveston in September 2008—but could not handle a scenario such as the one that emerged after Hurricane Katrina, according to this Wednesday, July 8, Washington Post story.
U.S. Senator introduces companion to U.S. House bill which would forbid SEC oversight of indexed annuities:
U.S. Senator Ben Nelson (D-Nebraska) has introduced the Indexed Annuities and Insurance Products Classification Act of 2009 (S. 1389). It is the companion to the U.S. House’s Meeks-Price bill (H.R. 2733), which would forbid the Securities and Exchange Commission (SEC) from regulating indexed annuities, a power currently held by the states.
Louisiana’s ‘one deductible per hurricane season’ law takes effect in 2010:
House Bill 333, signed into law by Governor Jindal on Thursday, June 25, takes effect in January 2010, so the ‘one deductible per hurricane season’ law does not apply to storms that hit the state in 2009, according to an article in the Friday, July 3, Times-Picayune. The story notes that, under the new deductible limitation, homeowners insurance premium rates could rise 4 percent in 2010.
New Orleans Times-Picayune story identifies developments hardest hit by Chinese drywall problems:
In a lengthy story on the front page of the Times-Picayune’s Sunday, July 5, Money section, the paper reports that Louisiana “homeowners saddled with tainted Chinese drywall are increasingly suing local home builders for damages or help removing the defective product.”
Mississippi allocates millions of dollars to bolster the finances of its wind pool:
Governor Barbour signed into law a bill which gave the Mississippi Insurance Department access to $40 million, monies they will use to bolster the Mississippi wind pool’s finances. Half of those funds will come from the wind pool’s Reinsurance Assistance Fund and the balance will be taken from the state’s Hurricane Disaster Reserve Fund. The Biloxi Sun Herald had a story on the issue days before the governor signed the measure.
New Jersey’s banking and insurance commissioner to leave office on July 15:
Commissioner Steven Goldman is stepping down effective Wednesday, July 15, after holding the post of banking and insurance commissioner for three years, the Associated Press reports. New Jersey Governor Jon Corzine is up for re-election in November 2009.
Texas lawmakers extend Department of Insurance through September 2011:
The Dallas Morning News published on Wednesday, July 1, an AP story on the Texas state Senate’s decision to extend the Department of Insurance’s existence through September 2011 as part of its normal renew and review process.
Mississippi Insurance Department hosting two-day Catastrophe Preparedness and Insurance Forum:
The forum will be held on Thursday, July 16, and Friday, July 17, at the Imperial Palace, Biloxi, Mississippi. The agenda can be found here.
South Carolina paper readying coverage of Hurricane Hugo’s 20th anniversary:
The State is preparing a special section to mark the 20th anniversary of Hurricane Hugo (September 22, 1989). The publication’s reporters and editors are inviting readers to send stories, photos or video to statefeatures@thestate.com. Contributors should write ‘Hurricane Hugo’ in the email’s subject line.
Illinois detects slight uptick in state’s number of uninsured motorists:
The Chicago Tribune last week reported on an Illinois Secretary of State study showing a slight year-to-year increase in the percentage of uninsured motorists in Illinois; the number stood at 4.8 percent in 2007 and rose to 4.9 percent in 2008. This still means the state government estimates more than 500,000 of its estimated 11 million motorists are driving without insurance, the story states.
New York’s legislative stalemate ends:
Since the call, the New York State Senate, deadlocked at 31-31 and unable to agree on any legislation for weeks, has now reverted to a 32-30 Democratic edge, with Senator Pedro Espada, Jr. (D-Bronx) agreeing once again on Thursday, July 9, to caucus with the Democrats.
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