SYNOPSIS ALL INDUSTRY CONFERENCE CALL September 15, 2010

Insurance adjusters received access passes for the areas of Colorado’s Fourmile Canyon that burned in a recent wildfire on Monday, September 13, according to a front page story in the Tuesday, September 14, Denver Post. The adjusters could start writing checks for homeowners affected by the blaze before the end of the week, according to the article.  Immediately after last week’s wildfires, insurance companies began covering policyholders’ temporary expenses but insurers have not been able to process claims for rebuilding since adjusters were not able to inspect the sites with policyholders, the Post notes. 

The gathering was held between 3:30 p.m. and 5:30 p.m. in the Boulder County Justice Center’s Jury Assembly Room.  The Colorado Department of Insurance reportedly sent two its lawyers to answer audience questions.

I.I.I. issues a news release highlighting the frequency and insurance implications of wildfires across the U.S.: 

Texas had the greatest number of wildfires in the nation last year, and New Mexico was the state with the most wildfire-burned acreage in 2009, the I.I.I.’s Wednesday, September 15, news release states.

San Bruno, California may get up to $100 million from Pacific Gas and Electric Company: 

PG&E said on Monday, September 13, that it will spend as much as $100 million to help rebuild the San Bruno, California, neighborhood that was devastated when a gas transmission line ruptured, triggering a deadly explosion on Thursday, September 9.  The utility will provide as much as $50,000 each to meet the day-to-day needs of people whose homes were damaged or destroyed, according to this Tuesday, September 14, San Francisco Chronicle article.  PG&E aims to “make whole individuals who do not have comprehensive insurance coverage for items they lost.”  The utility will also help to rebuild streets, sidewalks and parks, and maintains liability insurance of $992 million for damage caused by fire, with a $10 million deductible, the article states. The blast killed at least four people, destroyed 37 homes and severely damaged eight other residences. Four people were still missing as of Wednesday, September 15. 

The Chamber’s spot, which is in heavy rotation this month on the state’s TV stations, does not mention that state Assemblyman Villenes (R-Shaver Lake) is the Republican nominee for state insurance commissioner this year.

Dr. Ray Spudeck will coordinate the Symposium, which is being held on Thursday, October 21, between 1 p.m. and 5 p.m. at the Gaylord Palms Resort in Kissimmee, Florida.  There is no registration required to attend and admission is free.  The Gaylord is the site earlier that week (Monday, October 18-Wednesday, October 20) of the National Association of Insurance Commissioners’ fall national meeting.

Hartford Courant, trade publications pick up on I.I.I.’s terrorism risk insurance news release:

Terrorism remains a serious threat to the United States and proposed changes that would reduce support for the federal Terrorism Risk Insurance Program in 2011 would have a far-reaching effect on the availability and affordability of terrorism risk insurance, according to this Friday, September 10, I.I.I. news release.  The Hartford Courant and National Underwriter (subscription required) were among the news outlets to explore this theme.  In addition, the I.I.I.’s Terms + Conditions author, Claire Wilkinson, looked into the issue.

The U.S. Labor and Treasury Departments held a two-day hearing (September 14-15) on ways the federal government can encourage Americans to prepare economically for their retirement years, and the I.I.I. distributed a media advisory providing a quick primer on the institute’s annuities and retirement resources.

The study, Life Insurance Industry Investments: Rethinking Liquidity Needs and Required Capital in 2009, analyzes life industry investments for the period 2005-2009, provides detail regarding the industry’s position at the start of 2010, and examines how the financial crisis and changing regulations may influence life insurers’ strategic investment decisions in the future. This Tuesday, September 14, Conning Research & Consulting news release offers additional information.

D.C. Mayor Adrian Fenty was ousted in a Democratic primary on Tuesday, September 14, the same day former New York insurance superintendent, Eric Dinallo, was finishing fifth in a five-candidate Democratic primary for state attorney general (AG).  City Councilman William Gray is now poised to become D.C.’s next mayor, and state Senator Eric Schneiderman (D-Manhattan) will face Staten Island district attorney Daniel Donovan, a Republican, in the Tuesday, November 2, general election for New York State AG.  New York’s incumbent AG, Andrew Cuomo, is running this year for governor.

The U.S. Department of Veterans Affairs (VA) announced in this Tuesday, September 14, news release that the federal agency has reviewed its Prudential-administered Servicemembers’ Group Life Insurance (SGLI) and Veterans’ Group Life Insurance (VGLI) programs “to ensure beneficiaries are protected, being treated fairly, and accorded the utmost care and respect.” 

Since the call, we have learned U.S. Senators Roger Wicker (R-Mississippi) and Richard Durbin (D-Illinois) are scheduled to testify at this session.  The National Flood Insurance Program (NFIP) is due to expire again on Thursday, September 30.

This Friday, September 10, Austin American-Statesman story reports that Representative Larry Taylor (R-Friendswood) has asked the Texas Windstorm Insurance Association (TWIA) to reveal the fees TWIA paid to the TWIA policyholders’ attorneys in the wake of a $189 million settlement agreement between TWIA and about 2,000 TWIA policyholders impacted by 2008’s Hurricane Ike.  A judge in Galveston, Texas, issued a temporary restraining order to keep TWIA from releasing that information publicly.

The paper’s feature on Lynne McChristian, the I.I.I.’s Florida consultant, appeared in its Monday, September 13, hard-copy edition. A copy of the article  is attached.

The BBC World Service/Miami interviewed the I.I.I. for an online article on how well Miami is positioned to withstand a major hurricane:

The I.I.I.’s McChristian provided to the BBC reporter some perspective to illustrate how Miami-area population and building growth trends have changed, explaining that a storm like the Miami Hurricane of 1926 would today cause $100 billion-plus in insured losses given the current exposures.  McChristian also shared that Miami-Dade County has 14 percent of Florida’s total population, having grown by more than 156 percent since 1960.

New Orleans City Business finds Louisiana’s certified wind inspectors have to work hard to develop new business:

Louisiana Insurance Commissioner Jim Donelon told New Orleans City Business that is because many Louisiana homeowners are either unaware of, or unable financially to participate in, a state program that qualifies homeowners for property insurance premium discounts if they retrofit their homes to withstand certain amounts of wind damage.  The Clarion (MS) Ledger carried the City Business story on Sunday, September 12, as well.

New Jersey’s Star-Ledger readying column on Rutgers professor’s book, which was critical of property/casualty insurers: 

TheI.I.I.’s Bob Hartwig spoke this week with the New Jersey Star-Ledger columnistBob Braun.  Braun is writing an article on Rutgers, New Jersey, professor Jay Feinman’s March 2010 book, Delay, Deny, Defend. The I.I.I. prepared talking points on the book in the spring, and they are retrievable from the Member’s Area of the I.I.I. website.  An update: the story appeared on the front page of the paper’s Monday, September 20, edition, and quotes Hartwig.

D.C.-based The Hill reports that Missouri Insurance Director John Huff is about to be nominated by his fellow state insurance commissioners as the industry’s representative on a new federal council overseeing risks to the U.S. financial system.

The I.I.I.’s Jeanne Salvatore briefed Candace Evans (candye@dmagazine.com), who writes for AOL’s Housing Watch, on the states with the highest/lowest homeowners insurance premiums rates, and what consumers need to know when shopping for home insurance.  Evans is a Dallas, Texas based journalist who also writes the ‘Dallas Dirt’ Real Estate Blog at www.dmagazine.com.

The I.I.I.’s Mike Barry worked with Bloomberg’s Kelly Bit (kbit@bloomberg.net) as the news wire sought facts and statistics to put this month’s New Zealand quake in historical perspective, and compare it to comparable events earlier this year in Haiti (January) and Chile (February).