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, October 21, please email Michael Barry at michaelb@iii.org.
ABC television network, Wall Street Journal and Associated Press bring national attention to defective Chinese drywall issue:
Since the call, the I.I.I.’s Michael Barry appeared on the Thursday, October 15, editions of ABC’s Good Morning, America and World News Tonight, talking about the standard homeowners insurance policy exclusion governing losses arising from “defective” construction materials. The Wall Street Journal’s M.P. McQueen assessed the defective drywall situation and homeowners insurance (subscription required) on Wednesday, October 14, and the AP’s Brian Scoloff, who quoted the I.I.I.’s Bob Hartwig, did the same in a Friday, October 16, story. The I.I.I. has posted a media backgrounder on the issue and the I.I.I.’s Florida representative, Lynne McChristian, is addressing the matter in TV interviews, as well, such as this one on Wednesday, October 14, with Tampa’s Bay 9 News.
Reuters says 2009 hurricane season has been quietest in more than a decade:
Miami-based Reuters reporter Jim Loney talked in a Wednesday, October 14, article about what the relatively quiet season meant to private-sector insurers. The I.I.I.’s Hartwig is quoted in the article. The president of Houston’s Weather Research Center told Reuters the U.S. is not out of the woods yet, pointing to November 30 as the official end of hurricane season. Hartwig added that the Wall Street Journal’s Leslie Scism is preparing a story that explores the same subject.
USA Today finds Louisiana parish has developed innovative approach to hurricane protection:
Plaquemines Parish seems an unlikely place for cutting-edge scientific innovation, according to a Wednesday, October 14, USA Today article. “But it’s here that leaders have developed a novel way to protect the area from storms: by usurping federal plans and barricading the region with barrier islands, marshes and cypress trees. That approach could change the way coastal experts and engineers strategize hurricane protection,” the story states.
American Insurance Association issues statement in support of McCarran-Ferguson:
The AIA’s Wednesday, October 14, press release comes amid a congressional effort to rescind the federal anti-trust exemption for health and medical malpractice insurers.
Toronto Globe and Mail revisits life settlement policy securitization issue:
The I.I.I.’s Steve Weisbart was quoted in a Friday, October 16, piece, which is pegged in part to Toronto-based DBRS (Dominion Bond Rating Service), one of the few entities that have weighed in on the creditworthiness of securitized life insurance settlement policies.
Court orders Florida-based American Keystone Insurance Co. (AKIC) into receivership:
AKIC was in an impaired state because the company had insufficient funds to pay private reinsurers and the Florida Hurricane Catastrophe Fund (FHCF), according to a Monday, October 12, press release issued by Florida’s Office of Insurance Regulation (OIR).
Nationwide’s decision to non-renew about 60,000 Florida homeowners generates coverage:
Nationwide has a deal with Tower Hill Insurance to write some of Nationwide’s soon-to-be former homeowners insurance policyholders, according to a Thursday, October 8, story on NBC’s Orlando affiliate. The I.I.I.’s Lynne McChristian was interviewed for the segment.
California’s governor vetoes bill to extend Low Cost Auto Insurance program:
The program is due to expire on January 1, 2011 and Governor Schwarzenegger vetoed legislation (Assembly Bill 725) that would have extended it through the end of 2015, the LA Times reports. The governor said he recognizes the need for low-cost insurance options for low-income drivers, but “the effectiveness of this program is questionable given the number of policies in effect and low participation rate amongst the uninsured.” AB 725 was sponsored by Assemblyman Dave Jones (D-Sacramento), a candidate for California insurance commissioner in 2010, most news accounts noted.
Contra Costa Times, San Jose Mercury News publish Oakland Tribune story on “why earthquake insurance is a tough sell, even in the Bay Area.”
The story was pegged to the 20th anniversary of the 6.9 magnitude Loma Prieta quake on October 17, 1989, and put the number of Californians with earthquake coverage at about 13 percent statewide.
Mississippi policyholder seeking access to state’s Katrina claims denial data:
In a Monday, October 12, story, the Biloxi Sun Herald chronicled a Long Beach, Mississippi, policyholder who is appealing to the state Supreme Court for access to insurance department records showing the dollar amount of Hurricane Katrina claims denied by property insurers. According to the article, United Policyholders of America, a consumer group, is working to help the policyholder.
President Obama visits New Orleans to assess post-Katrina, Rita recovery efforts:
The White House press release and fact sheet on the president’s Thursday, October 15, New Orleans trip, which focused on the city’s recovery from the two 2005 hurricanes, are here.
Louisiana insurance department released millions of dollars in grant money too soon, auditor contends:
Louisiana’s Legislative Auditor released a report saying the state Insurance Department allocated $29 million to five insurance companies in 2008 as part of the $100 million Insure Louisiana initiative but the monies were released before the agreements ‘governing those grants’ were signed by both parties (see page 42 of the 53-page report), according to a Wednesday, October 14, story in the New Orleans Times-Picayune. The Louisiana state Legislature repealed the Insure Louisiana program this year and turned over more than $75 million—$71 million, plus interest earned—to the state Treasury to fill holes in the state budget, the article notes.
Suburban homes near Seattle, Washington damaged by “earth movement:”
Naches, Washington, residents hearing about the standard homeowners insurance policy earth movement exclusion aren’t pleased to learn it exists, according to a Wednesday, October 14, KING5 segment. Washington’s insurance commissioner appears to be supporting the stance taken by the region’s insurers. Governor Gregoire declared an emergency in Yakima County on Tuesday, October 13, because the earth movement caused a landslide that adversely impacted a major state thoroughfare.
New Mexico NBC affiliate highlights Consumer Reports’ look at homeowners insurance:
Consumer Reports writer Tobie Stanger appeared in a KOB-TV story late last month on homeowners insurance. In the segment, Stanger talks about windstorm deductibles, the lack of coverage for mold or dog bites, and the difficulty in securing guaranteed replacement cost coverage. The piece is pegged to the magazine’s September 2009 “Insuring Your Home” report.
Bloomberg to acquire Business Week magazine:
The deal is expected to close no later than December 1, 2009, Business Week reports.
Terry Keenan leaves Fox News Channel (FNC):
Keenan, the host of FNC’s Cashin’ In program, left the cable network this month.
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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