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, November 11, please email Michael Barry at michaelb@iii.org.
Florida’s insurance commissioner says homeowner insurers have no obligation to cover defective drywall losses:
In remarks to Florida state legislators on Tuesday, November 3, Commissioner Kevin McCarty said that not only do insurance companies have no obligation to cover defective Chinese drywall because it is not a covered peril, but residents could lose their coverage if they move out of their homes because of problems caused by the defective product, according to a front page story in the Wednesday, November 4, Sarasota Herald-Tribune. Commissioner McCarty, who called the issue a “very, very significant problem,” said the financial responsibility lies with Chinese drywall manufacturers. The commissioner estimated 100,000 homes may have been impacted nationally by the defective product, with repair costs that could reach into the billions of dollars. The I.I.I.’s Terms & Conditions blog commented on the piece.
Tampa’s Fox affiliate, Palm Beach Post cover Chinese drywall symposium:
On Thursday, November 5, WTVT-TV, Tampa’s Fox affiliate, filed a story on the large turnout for the first of a two-day drywall symposium sponsored by the University of Florida. The Fox piece included a quote from the I.I.I.’s Lynne McChristian. The Palm Beach Post’s Allison Ross also covered the event. Ross wrote earlier in the week about a drywall lawsuit. In a related development, the federal government has created a Web site that lists the steps they are taking with respect to the drywall situation: www.drywallresponse.gov.
New Jersey to get new insurance commissioner; fate of Virginia’s incumbent unclear:
New Jersey governor-elect Chris Christie will almost certainly appoint a successor to Governor Jon Corzine’s banking and insurance commissioner, Neil Jasey, upon taking office in January 2010. Virginia Insurance Commissioner Alfred Gross has served under governors from both political parties since his 1996 appointment.
Former California insurance commissioner elected to U.S. House of Representatives:
California Lieutenant Governor John Garamendi (D-Walnut Creek), a former insurance commissioner, was elected this week to the U.S. House of Representatives, representing a district in the northern part of the state.
Hurricane Ida downgraded to tropical depression; could cause heavy rains, gusty winds in U.S. Gulf Coast states:
The Weather Channel offered an update on the storm as of Wednesday morning, November 4. The Palm Beach Post said on Friday, November 6, that Ida might make its way to Florida early in the week of November 9-13.
New York Times consumer reporter focuses on financially protecting homes from natural disasters:
“With the news media filled with stories lately about natural disasters like earthquakes, hurricanes and wildfires, many consumers may be wondering when to purchase additional insurance to protect their homes from Mother Nature. My husband and I certainly have been concerned with the topic since moving to California this year,” writes San Francisco-based NYT reporter Jennifer Saranow Schultz, in the Monday, November 2, Bucks blog. The I.I.I. provided much of the information for the piece but is not cited.
Federal Insurance Office Act of 2009 may be marked up during week of November 16-20:
House Resolution 2609 could come before the U.S. House Financial Services committee in another week or so, the American Insurance Association reports.
I.I.I. president’s speech on insurers’ role in safety research is National Underwriter cover story:
Bob Hartwig’s remarks at ceremonies marking the 50th anniversary of the Insurance Institute for Highway Safety (IIHS) appeared as a by-lined article in the Monday, November 2, hard-copy edition of National Underwriter, P&C (subscription required).
U.S. Supreme Court hears oral arguments in New York no-fault case that subsequently raised constitutional issues:
The I.I.I.’s Claire Wilkinson wrote this week on her blog about the potential repercussions of Shady Grove Orthopedic Associates, P.A. v. Allstate Insurance Co., which focuses on whether state Legislatures can limit class actions in federal court. Akin Gump’s Supreme Court blog is also tracking the case.
Typical no-fault payment in New York has risen 56 percent in less than five years, I.I.I. analysis finds:
In a presentation to the New York Insurance Association’s annual meeting in Latham, NY, on Thursday, November 5, the I.I.I.’s Hartwig said that New York’s no-fault personal injury protection (PIP) average claims costs rose to $8,748 in the second quarter of 2009 from $5,615 at the end of 2004, a 56 percent increase. The I.I.I. issued this release.
California’s attorney general accused of doing favor for property/casualty insurer in exchange for political contribution:
“Attorney General Jerry Brown is facing accusations that he cleared the way for a ballot measure summary that was favorable to an insurance company that has contributed to his campaign coffers,” a Friday, October 30, story posted at the Contra Costa Times reported. “The ballot measure, backed by the Mercury General Corp., the state’s third largest auto insurer, would allow insurance companies to offer discounts to ensured motorists who want to leave their insurers.”
Washington Post says Senator Dodd will introduce his own financial regulatory reform package:
The details deal primarily with bank regulation, and can be found in a Wednesday, November 4, Washington Post article on U.S. Senator Christopher Dodd’s (D-Connecticut) plans.
Atlanta Journal-Constitution (AJC) reports that flood maps offered little guidance to Cobb County property owners:
The flooding caused by heavy rains in Cobb County, Georgia, in September 2009 have raised questions about the integrity of the state’s flood maps and whether the maps protected property owners as intended, according to a front page story in the Sunday, November 1, AJC. Several storm water experts are quoted in the article saying the state’s flood maps are flawed in spite of a five-year, $32.7 million effort to modernize them.
Katrina-related wind versus water case moves toward trial in Mississippi federal court:
A Biloxi, Mississippi, policyholder’s case against State Farm Fire & Casualty Company over how much the insurer must pay for wind damage versus flood damage for an outbuilding destroyed by August 2005’s Hurricane Katrina is moving toward trial, the Biloxi Sun Herald reported on Tuesday, November 3. The case will be heard in U.S. District Court in Gulfport, Mississippi, and a jury will be asked to decide whether the policyholder, Reginald Bossier, should receive more than the $93,480 State Farm has already paid on a policy limit of about $650,000.
Colorado’s Department of Regulatory Agencies (DORA) announces 9.7 percent decrease in workers compensation loss costs:
“Colorado employers could see as much as $84 million in reduced premiums for workers compensation insurance, if all insurers implemented the revised loss costs with no further adjustments,” said Colorado Insurance Commissioner Marcy Morrison, according to this Monday, November 2, press release.
Wisconsin lawmakers debate auto insurance price repercussions of state’s 2009-2010 budget accord:
Republican state legislators say auto insurance changes enacted earlier this year as part of the state budget are causing premiums to increase at a difficult economic time and should be repealed, according to a Tuesday, November 3, article in the Milwaukee Journal Sentinel. But Wisconsin Democrats and a representative of the state’s trial lawyers, who pushed for the changes, said the higher minimum coverages are affecting only 20 percent of the state’s drivers and that the previous minimum coverage amounts were outdated. The Wisconsin Association for Justice issued this press release on the controversy on Tuesday, November 3.
Louisiana Business Emergency Operations Center (LABEOC) established:
The LABEOC, created as an annex to Louisiana’s state emergency operations center in Baton Rouge, will offer businesses a chance to become full participants in the state’s disaster management initiatives. For further information, contact the I.I.I.’s Lynne McChristian (Phone: 813-480-6446, email: lynnem@iii.org).
New York City’s ABC affiliate prepping story on how homeowners policies cover various winter-related losses:
Have any New York area claimants who were pleased with the way their winter-related loss claims were handled by your company? If so, WABC-TV wants to talk to them. The station became interested in the issue after reading this Thursday, October 29, I.I.I. release on winter-proofing your home. This is a great opportunity to showcase the good work we do; please contact me as soon as possible if you have a satisfied claimant to put on camera.
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.
