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, September 28, please email Mike Barry at michaelb@iii.org.
FORECASTER ENVISIONS SEVEN MORE NAMED STORMS IN 2011; PREDICTS TWO OF THEM WILL REACH ‘HURRICANE-STRENGTH’
Jeff Masters of Weather Underground summarized his latest tropical analysis in this Monday, September 19, Palm Beach (FL) Daily News blog article.
I.I.I.’s PRESIDENT IS GIVEN 2011 CHAIRMAN’S AWARD BY THE NATIONAL ASSOCIATION OF MUTUAL INSURANCE COMPANIES (NAMIC)
The I.I.I.’s Bob Hartwig was saluted for his industry contributions at NAMIC’s annual meeting in Indianapolis, Indiana, on Wednesday, September 21. The I.I.I. issued a press release after the award presentation ceremony concluded.
NEW YORK CITY-BASED WALL STREET JOURNAL REPORTER CHRONICLES HER SEARCH FOR A RENTERS INSURANCE POLICY
Anne Kadet, a columnist at Dow Jones-owned Smart Money, reports that Hurricane Irene may have prompted a number of New York City residents to reassess whether they ought to have a renters insurance policy, according to this Saturday, September 17, Wall Street Journal (subscription required) article. The I.I.I.’s Jeanne Salvatore is quoted in the story.
I.I.I. TOUTS FREE SERVICE FROM NATIONAL INSURANCE CRIME BUREAU (NICB) AMID CONCERNS ABOUT FATE OF FLOODED CARS
The NICB’s vehicle identification number (VIN) database gives used-car buyers an essential piece of information about a car’s history, without charging them for it, this Thursday, September 22, I.I.I. news release explains.
ASSOCIATED PRESS STORY REPORTS CLAUSE IN HOME INSURANCE POLICIES CAN HELP RESOLVE POLICYHOLDER-INSURER DISAGREEMENTS
The I.I.I.’s Mike Barry mentioned during the call that he had worked with New York City-based AP reporter Eileen Connelly on this story. It hit the AP wire on Friday, September 23. The I.I.I. is not quoted in the piece.
FEDERAL GOVERNMENT FINDS INFLATION HAS RISEN 3.8 PERCENT OVER THE PAST YEAR (AUGUST 2010-AUGUST 2011)
The Consumer Price Index for All Urban Consumers (CPI-U), the most popular measure of inflation, was 3.8 percent higher in August 2011 than it was in August 2010, according to the latest data from the U.S. Department of Labor’s Bureau of Labor Statistics. The I.I.I. offered this analysis of the August 2011 numbers from the federal government.
UNIVISION AGREES TO SET ASIDE AIR TIME ON WEDNESDAY, NOVEMEBER 16, FOR VIEWERS TO CALL INTO AN INSURANCE ‘HOT LINE’
The I.I.I.’s Salvatore and Elianne Gonzalez have successfully teamed up with Univision, and the Latin Agents and Brokers Association of New York (LABA), to establish a Spanish-language hot line, between 6 and 8 p.m., ET on that evening. This will allow Univision viewers to call the TV station and be connected to insurance industry experts who can answer their questions.
I.I.I.’s CHIEF ECONOMIST BRIEFS JEAN CHATZKY RESEARCHER ON INSURANCE COVERAGE DISPUTE RESOLUTION
The I.I.I.’s Steve Weisbart spoke this week with Arielle O’Shea (Arielle@jeanchatzky.com), a researcher for syndicated columnist and NBC Today Show correspondent Jean Chatzky, about the distinctions between resolving a coverage dispute governed under the federal ERISA law, and disputes that fall within the purview of state insurance laws/regulations/courts.
FLORIDA’S INSURANCE COMMISSIONER APPROVES 32.8 PERCENT AVERAGE INCREASE IN CITIZENS SINKHOLE POLICY PREMIUMS
Citizens Property Insurance was granted a statewide average sinkhole rate increase of 32.8 percent by the Office of Insurance Regulation (OIR). The Sunshine State News writes that Citizens’ rate hike request was sunk since the original rate request was for 447 percent. The OIR said the sinkhole hike was not supported by “credible evidence.” To read the OIR final order for the Citizens rate hike, click here. The Associated Press article on sinkhole rates quotes the new chairman of the Citizens board, Carlos Lacasa, who said the decision to phase in rate hikes was an effort to highlight the severity of the sinkhole claims crisis while allowing time for provisions of a new state law to moderate future premium rate increases. An editorial in the St. Petersburg Times gave Insurance Commissioner Kevin McCarty credit for keeping sinkhole related premium rates at a “sane level” while saying that “setting insurance rates remains awfully political.” Also in the St. Pete Times, columnist Dan DeWitt says some Hernando County homeowners are to blame for the current state of affairs regarding Citizens and sinkholes.
FLORIDA’S GOVERNOR APPOINTS TWO TO THE CITIZENS PROPERTY INSURANCE CORPORATION’S BOARD OF GOVERNORS
John Rollins, a Florida-based actuary who has done consulting work for the I.I.I. and used to be with Citizens Property Insurance Corporation, and John Wortman, a former CEO of Louisiana Citizens Property Insurance Corporation, are Governor Rick Scott’s choices to serve on the Citizens board, according to this Tuesday, September 20, news release. Both of their terms extend through July 31, 2014.
ALABAMA’S AFFORDABLE HOMEOWNERS INSURANCE COMMISSION TO CONCLUDE ITS FIVE-CITY LISTENING TOUR ON MONDAY, OCTOBER 17
The commission convened in Guntersville City Hall on Monday, September 26, at 6 p.m., and will conclude its statewide tour on Monday, October 17, at the Decatur City Hall and Convention Center. Later this year in Montgomery, Alabama, the commission will hear from various experts, ranging from insurance actuaries to building code officials. Then the commission will work on proposed bills for the state Legislature, as well as regulations for the insurance commissioner to consider. Governor Bentley has said a special session to focus on property insurance is possible in January 2012. The state Legislature regular session gets underway in early February 2012, this Sunday, September 18, Tuscaloosa News article explains.
OKLAHAMA CITY PRESS EVENT ON THURSDAY, SEPTEMBER 22, CALLS ATTENTION TO THE ISSUE OF WILDFIRE PREPAREDNESS
On Friday, September 23, The Oklahoman published an article on a news conference at the state Capitol that drew Oklahoma Insurance Commissioner John Doak and some of the highest-ranking firefighters in the state. The initiative was coordinated by the Insurance Institute for Business & Home Safety, which issued this Tuesday, September 22, news release.
TEXAS FOREST SERVICE BELIEVES THE BASTROP WILDFIRE, ONE OF THE WORST IN THE STATE’S HISTORY, BEGAN AS TWO BLAZES
One of the fires is believed to have been caused on Sunday, September 4, by a dead pine tree that was blown over on a power line, and the other about 5 miles away by tree branches falling on lines. The 40 mile-per-hour winds that helped start the two fires then spread them quickly, and they merged, according to this Tuesday, September 20, United Press International article. The combined fire, which burned thousands of acres about 30 miles southeast of Austin, destroyed more than 1,500 homes, making it one of the most destructive in Texas history, the story added.
NOAA REPORT SAYS SOME JOPLIN, MISSOURI, RESIDENTS EITHER IGNORED, OR WERE TOO SLOW TO RESPOND TO, INITIAL WARNING SIRENS
The National Oceanic and Atmospheric Administration (NOAA) said a sizable number of residents waited for additional information about the tornado, which struck Joplin, Missouri on Sunday, May 22, and killed 159 people. The agency released on Tuesday, September 20, a report indicating a majority of Joplin residents surveyed by NOAA did not immediately seek shelter when they heard the first warning siren.
VIRGINIA SUPREME COURT SIDES WITH INSURER IN CASE INVOLVING WHETHER IT MUST DEFEND A POLICYHOLDER IN A MAJOR CLIMATE CASE
The New York Times reported in a same-day story on a Friday, September 16, Virginia Supreme Court ruling that said Steadfast Insurance does not have a duty to defend AES Corp., a defendant in a major climate case now being heard in the Ninth U.S. Circuit Court of Appeals in San Francisco. The Virginia appeals court decision is the first in a case of this type, and is being closely observed as legal authorities expect litigation involving insurance coverage related to climate change to expand, the article states.
SOCIAL MEDIA REPORT
–There are some residual stories circulating about Hurricane Irene. In the aftermath of the storm, there has been an expected boost in insurance sales with homeowners seeking increased wind and flood coverage and business owners wanting business-interruption insurance.
–Another story that is starting to pop up on consumer advice blogs is about avoiding buying a flooded car since there are expected to be cars coming into the market that were submerged underwater due to the storm.
–Another trending topic is Life Insurance Awareness month and the importance of having life insurance. The I.I.I. put out a consumer-focused release on Wednesday, September 21, about the topic, which has already been posted to a few blogs.
–The I.I.I.’s blog Terms + Conditions, written by Claire Wilkinson has been nominated for consideration as one of the LexisNexis Insurance Law Community’s Top 50 Insurance Blogs for 2011. Each year, LexisNexis honors a select group of blogs that set the online standard for a given industry.
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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