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, March 31, please email Michael Barry at michaelb@iii.org
I.I.I. offers assessment of new healthcare law’s P/C implications:
In her Terms + Conditions blog on Tuesday, March 23, I.I.I. vice president Claire Wilkinson discussed the potential repercussions of healthcare reform for tort reform, McCarran-Ferguson and the workers compensation business.Georgia Supreme Court strikes down state law which limited jury awards for pain and suffering in malpractice cases:
Enacted in 2005, the $350,000 cap improperly interfered with a jury’s duty to determine damages in a civil lawsuit, the Georgia Supreme Court ruled, in a decision announced on Monday, March 22. According to the National Conference of State Legislatures, 30 states, the Virgin Islands and Puerto Rico limit jury awards in malpractice cases. Courts in New Hampshire, Oregon, Washington, Wisconsin and Illinois have ruled against such limits, the New York Times reported, in an article the same day.
U.S. whole-life policies sales grew 12 percent in second half of 2009, compared to year earlier, Wall Street Journal reports:
In a front page story on Friday, March 19, the Wall Street Journal (subscription required) also found that a number of major life insurers hired thousands of agents last year, although few of these agents will stay in their current positions for four years or more because of the challenges of the job, the article states.Moody’s says insurers have the financial resources to pay defective drywall claims:
Commercial insurers with significant exposure in Florida and Louisiana are most at risk to legal and litigation claims, according to this Tuesday, March 23, Business Insurance article, pegged to a report by Moody’s Investor Service.
Insure.com releases list of ‘most expensive’ and ‘least expensive’ 2010 model cars to insure:
The most expensive was the Porsche Carrera GT2 two-door coupe while the Mazda Tribute I, four-door sport utility vehicle was the least expensive, according to this Friday, March 12, statement from insure.com. To determine its rankings, Insure.com commissioned a Quadrant Information Services study that calculated the average premiums for a 40-year-old male driver using premium rates from six large carriers (Allstate, GEICO, Farmers, Nationwide, Progressive, and State Farm) in 10 ZIP codes per state.Bloomberg analysis finds Chile earthquake, European windstorm generated $4 billion-plus in potential claims so far:
A Wednesday, March 24, article explains how Bloomberg news wire arrived at this estimate.New York Times Wheels blog explores ‘pay as you drive’ auto insurance policies:
The story appeared online on Tuesday, March 23, with Progressive and American Insurance Association representatives quoted.
Washington Post prepping piece on Maryland, D.C., and Virginia homeowners insurance markets:
The article is being written by Kiplinger’s Personal Finance contributing editor Kim Lankford, and she will explore how the mid-Atlantic states compare to the rest of the nation when it comes to annual premiums, windstorm deductibles and coastal affordability/availability. Lankford has spoken with I.I.I. president Robert Hartwig for the story.‘A 360 degree look at structural property protection’ is theme of Wednesday, April 7, Webinar:
The 30-minute session gets underway on Wednesday, April 7, at 2 p.m., CST, and will offer an introductory overview of the Institute for Business & Home Safety (IBHS), with topics including a discussion of IBHS’s research programs, its FORTIFIED homes initiative, and their Open for Business product. The target audience is claims, underwriting, actuary loss control and communications professions, as well as anyone else interested in reducing structural property losses. Registration can be done online. It is being organized by IBHS and the Southwestern Insurance Information Service (SIIS).Hartford Courant reports on P/C Leaders Coalition’s opposition to proposal that would set up a $50 billion federal fund to cover losses from the insolvency of a large financial company
: Insurers, who pay into state guaranty funds to cover claims if another insurer becomes insolvent, are concerned about having to pay into an additional fund that might be used for a comparable purpose, the Courant’s Matthew Sturdevant wrote, in this Saturday, March 20, article.
National Flood Insurance Program is due to expire again on Sunday, March 28
: The U.S. House of Representatives is looking to extend the NFIP until the end of April 2010, and the U.S. Senate wants the flood insurance program extension to continue until year-end 2010, the advocacy trades reported.
U.S. House Judiciary Committee held hearing on the ‘Access to Repair Parts Act’ (HR 3059):
Nationwide issued a news release in support of the legislation on Tuesday, March 23, a day after the U.S. House hearing.Proposition 17, an auto insurance initiative, discussed at a public hearing in Sacramento:
The Mercury Insurance-backed proposition, which if passed would offer drivers discounts for maintaining continuous auto insurance coverage, is on the Assembly and Senate’s legislative calendar on Wednesday, March 24, the Sacramento Bee reports. The proposition will come before the state’s voters on Tuesday, June 8.Minneapolis Star-Tribune columnist weighs in on Professor Jay Feinman’s ‘Delay, Deny, Defend’:
Professor Feinman, a Rutgers (New Jersey) Law School professor, offers a spirited critique of the P/C insurance industry’s claims-handling procedures in his new book, which was released on Thursday, March 18, and discussed in John Ewoldt’s Saturday, March 20, column.Florida’s insurance commissioner says state’s property insurance market ‘still faces serious challenges’:
In remarks to the governor’s Cabinet on Tuesday, March 23, Commissioner Kevin McCarty said he “will not allow known troubled companies to enter hurricane season without the financial capacity to pay claims.” The commissioner also said in his speech that he supported SB 2044, the Property Insurance Solvency Act, and SB 2264/HB 1181, which would change the method by which public adjusters could initiate the re-opening of settled claims.Miami Herald finds that, after four consecutive hurricane-free years in South Florida, insurance companies still report they are losing money:
Even in the absence of major hurricanes between 2006 and 2009, insurers contend they have been left vulnerable by a combination of factors, including the state’s determination to stop or slow down premium rate hikes, increases in the cost of reinsurance, problems with the state’s schedule of wind mitigation discounts, and the reopening of Hurricane Wilma claims, Miami Herald reporter Bea Garcia found, in a Sunday, March 21 story.Louisiana lawmakers may change way state’s property insurer of last resort is structured:
But calls to abolish altogether the Citizens Property Insurance Corporation, a stance embraced by State Treasurer John Kennedy, got a lukewarm reception at a joint meeting of the Louisiana House and Senate insurance committees, according to a Friday, March 19, New Orleans Times-Picayune article. The legislative session begins on Monday, March 29, and state Senator Troy Hebert (I-New Iberia), the state Senate’s insurance chairman, praised the current management team at Citizens while allowing that lawmakers may want to ‘fine tune’ the structure of the insurer. Senator Hebert, a former Democrat, declared himself independent of any party in this Wednesday, March 17, news release.Former Louisiana Citizens CEO pleads guilty to single theft charge:
Terry Lisotta faces up to 30 months in prison when sentenced next month, a turn of events which prompted the publication of this strongly-worded editorial in the Tuesday, March 23, Times-Picayune.Mississippi wants to focus on stronger coastal area building codes:
Governor Barbour said that $20 million in FEMA grants would help homeowners finance such building code improvements. FEMA has given Mississippi preliminary approval for a mitigation program and is working with state officials on the final grant applications, according to a Thursday, March 18, Biloxi Sun Herald story.
Bay St. Louis state Senator says he won’t run next year for Mississippi insurance commissioner:
Mississippi State Senator David Baria (D-Bay St. Louis) said he will seek re-election to his current post in 2011, and will not challenge Mississippi Insurance Commissioner Michael Chaney, a Republican, according to a Monday, March 22, WLOX-TV story. This Sunday, March 21, Clarion-Ledger article prompted Senator Baria’s statement.Dallas Morning News, Austin Business Journal cover calls for restoring prior approval to homeowners insurance market:
In a Thursday, March 18, news release, Texas state Representative Diana Maldonado (D-Round Rock), and the executive director of Texas Watch, argued that Texas’ Insurance Commissioner should have the power to deny homeowners insurance premium rate hikes before they go into effect. The Texas state Legislature in 2003 replaced what had been a “prior approval” process with the “file and use” system which requires insurers to inform the Texas Department of Insurance of a rate change before the insurer implements it. The Dallas Morning News and the Austin Business Journal offered limited coverage of the issue.National Underwriter’s Dan Hays to retire at the end of April 2010:
Hays has been with NU for the past 13 years; no successor has been named as yet.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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