SYNOPSIS ALL INDUSTRY CONFERENCE CALL October 13, 2010

The Wednesday, October 13, advisory, is here.

National Underwriter publishes I.I.I. president’s op-ed on homeowners insurance policies in response to NAIC presentation:

Dr. Robert Harwig’s Final Say column (‘Greater Choice Key to Homeowners Market’) appeared in the publication’s online and print editions on Monday, October 11.

LIMRA’s Robert Kerzner contended in this Monday, October 11, WSJ letter to the editor (subscription required) that U.S. households with incomes of $100,000 or more account for only 27 percent of existing permanent life insurance policies, while average Americans account for the remaining 73 percent. Consumers earning less than $100,000 annually account for 72 percent of newly purchased permanent life insurance policies, he wrote, and Americans earning $25,000 to $99,999 represent 55 percent of the population and own approximately 60 percent of permanent policies.

Property/casualty carrier employment showed a very slight uptick in August 2010 as compared to July 2010 but the numbers were not as favorable in the life/health sector or for insurance agents and brokers.  Dr. Hartwig’s 14-slide presentation is here, and is pegged to the U.S. Labor Department’s Bureau of Labor Statistics data.

On Tuesday, October 12, a congressional panel held an inquiry into the U.S. Forest Service’s initial response to August 2009’s Station Fire, a large blaze in Southern California that killed two firefighters and destroyed 89 homes. The panel, which met in Pasadena, California, considered whether the fire could have been contained before it covered 250 square miles. Central to the inquiry were questions about the Forest Service policy that prevents helicopter water drops at night and about budget restraints that could have limited the resources available to firefighters. U.S. Representative Adam Schiff, a Democrat from Southern California, said that he organized the panel in order to hear from representatives of the Forest Service and other agencies as well as independent experts and critics in order to review firefighting procedures and consider revising current approaches to battling wildfires. Southern California Public Radio filed a report on the proceedings.

The state’s Office of Administrative Law ruled on Monday, October 11, that the insurance commissioner, Steve Poizner, created the new regulation without following the appropriate procedures, which require notifications, hearings and other steps before a regulation can take effect.  Dow Jones filed this next-day story on the office’s decision.

USA Today finds that 2010 Atlantic hurricane season forecasts were on the mark:

Hurricane experts told USA Today in a Wednesday, October 13, article that their prediction of an extremely active hurricane season this year was accurate. Dennis Feltgen of the National Hurricane Center (NHC) in Miami said that 16 named storms developed this season, with nine becoming hurricanes. The center also noted that Hurricane Alex was the first hurricane to appear in June since 1995, and the first Category 2 hurricane in that month since June 1966. The NHC also said that two Category 4 hurricanes, Igor and Julia, appeared in the Atlantic at the same time this year, only the second simultaneous occurrence of two major hurricanes in the Atlantic since 1900. The story noted that the U.S. has been spared the brunt of the storms.

Money Magazine (bed bugs) and New York Times (credit and auto insurance) have insurance stories in the works:

Money Magazine’s Sarah Max (sarahvonmax@gmail.com) is asking around about what type of insurance policy, if any, covers properties adversely impacted by bed bugs.  Meanwhile, the New York Times’ Ken Belson (belson@nytimes.com) is prepping a piece on consumers’ views about auto insurance, and whether they have changed because of the recession.  He is also looking to determine whether auto insurers have changed the way they use credit-based insurance scores, and if the percentage of uninsured motorists on the roads has increased. 

Marin’s Florida-based radio show is called: Tu vida es mi vida (Your life is my life) and her website lists the radio stations that carry Marin’s program, and when they air.  Elianne Gonzalez’s four, one-minute segments will be broadcast starting in early November.  The interview topics include two separate segments on winterizing your home, one on the importance of installing alarms (fire, carbon monoxide and burglar); and the final piece is on what to do if you are in an automobile accident.

Investor’s Business Daily (IBD) seeking current average annual yields for annuities:

Paul Katzeff (Phone: 781-383-3577) welcomes a call from anyone able to give IBD the current average annual yields for all variable annuities as a group; all equities variable annuities as a group; all fixed income variable annuities as a group; and all fixed annuities as a group.

The Wall Street Journal and Bloomberg news wire may cover the Monday, October 18, meeting of the National Association of Insurance Commissioners’ (NAIC) retained asset working group session, to be held that day at 2 p.m. in Orlando, Florida, as part of the regularly scheduled NAIC fall meeting.

In a letter signed by Members from both parties, Florida’s federal lawmakers asked the House leadership to bring the act before the full U.S. House by the end of 2010.  Florida Rep. Ron Klein is using the letter against his Republican rival.

PCI releases its letter to the U.S. Treasury Department regarding Terrorism Risk Insurance Act (TRIA) reimbursement rules:

PCI announced in this Tuesday, October 12, news release that it was seeking improvements to the proposed “Final Netting” rule that would close the time period when insurers could request reimbursement for covered terrorism claims.  Final netting would be the process by which Treasury would make final payments to, and recoveries from, insurers following one or more terrorism incidents that trigger the TRIA program.

Florida Insurance Commissioner Kevin McCarty is making the introductory remarks for this event, to be held starting at 1 p.m. at the Gaylord Hotel in Orlando, Florida, after the conclusion of the NAIC’s fall national meeting.

Sacramento Bee columnist examines how two California state Assemblymen are financing their insurance commissioner campaigns:

The Bee looked at the campaign finance reports of Assemblyman Mike Villines (R-Clovis), the Republican candidate, and Assemblyman Dave Jones (D-Sacramento), the Democratic nominee, and offered the following take on what he found in a Wednesday, October 13, article.

The federal government’s report on the Wednesday, October 13, quake says its epicenter was about 10 miles east of Norman, Oklahoma.  No injuries or property damage was reported but the Southwestern Insurance Information Service said they did receive a number of media inquiries about earthquake coverage issues.

The Daily Oklahoman endorses Insurance Commissioner Kim Holland’s bid for re-election:

The incumbent, a Democrat, touts the newspaper’s Friday, October 8, endorsement on her campaign website. John Doak is the Republican candidate for insurance commissioner.

In his role as IIABA chairman, Treutel will also represent the association on the National Flood Insurance Program’s (NFIP) Flood Insurance Producers National Council, according to this Thursday, October 7, story in the Biloxi Sun Herald. The council advises the NFIP on product design, development, marketing and education.  The article also notes that Treutel serves on the board of the Mississippi wind pool.

Curtis Wilkie, author of The Fall of the House of Zeus: The Rise and Ruin of America’s Most Powerful Trial Lawyer (Crown), will be in Oxford, Mississippi, on Tuesday, October 19, the day of the book’s release, and at the Lemuria Book Store in Jackson, Mississippi, on Wednesday, October 20, and Thursday, October 21.

The Wednesday, October 13, state Insurance Department meeting on coastal property insurance affordability and availability was covered in this Thursday, October 14, Newsday article.