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 5, please email Loretta Worters at lorettaw@iii.org.
DELAWARE SUPREME COURT RULING SEEN AS A SETBACK TO INVESTORS WHO PURCHASE THE LIFE INSURANCE POLICIES OF OTHERS
The state’s highest court ruled that life insurers can challenge the validity of a policy that was traded at any time, even after the standard two-year limit on contesting policy payouts. The decision could encourage insurers to challenge more policies and increase the risks for those investing in life insurance policies, according to this Monday, September 26, Wall Street Journal (subscription required) article.
BUYING ‘BREACH INSURANCE’ IS A COST-EFFECTIVE WAY TO PROTECT A COMPANY’S INFORMATION SECURITY (IT) SYSTEM, WSJ STORY SAYS
Nearly 700 organizations made public disclosures of data breaches last year, breaches that included theft and accidents as well as intrusions into secure networks, according to a Monday, September 26, Wall Street Journal story. The piece was accompanied by a sidebar chart (subscription required) listing three steps that companies should take before the next breach: 1) train employees; 2) have a plan; and 3) buy breach insurance, which could save millions of dollars in costs related to a hacking incident.
NEWER SPORT UTILITY VEHICLES (SUVs) ARE MUCH SAFER THAN EARLIER MODELS, INSURANCE INSTITUTE FOR HIGHWAY SAFETY (IIHS) FINDS
The IIHS’s just-released study can be found via this Wednesday, September 28, news release.
OCTOBER 2011 EDITION OF CONSUMER REPORTS MONEY ADVISOR OFFERS GUIDANCE TO POLICYHOLDERS ON HOMEOWNERS INSURANCE
The article stresses making sure an individual’s homeowners policy coverage is sufficient and covers all major catastrophe risks that may strike the area where the home is situated. It also discusses how to shop for the best premium rates, prevent losses and be smart when filing a claim. The story is accompanied by a chart from the Insurance Information Institute showing the average cost of homeowners claims from 2005 to 2009 for six types of claims. To see the chart click here. Full Text (both links go to the I.I.I. Members only site).
BROADCAST MEDIA CONTENT PROVIDER INTERVIEWED THE I.I.I. ON THE USE OF SOCIAL MEDIA IN INSURANCE FRAUD INVESTIGATIONS
The I.I.I.’s Jeanne Salvatore taped the segment recently after being briefed on the issue by the National Insurance Crime Bureau (NICB), and incorporated the NICB’s messaging into the interview. More about New York City-based NewsProNet Video can be found online.
CNN DOING RESEARCH ON WHAT BECOMES OF A LIFE INSURANCE POLICY ONCE ITS POLICYHOLDER REACHES HIS/HER 100TH BIRTHDAY
The I.I.I.’s Steven Weisbart briefed Allan Chernoff, a senior correspondent at CNN (email: Allan.Chernoff@turner.com), on the various scenarios that may come into play involving this issue for a potential story on the matter. Chernoff’s sources told him that, upon a policyholder’s 100th birthday, the life insurance policy expires, and the cash value goes back to the policyholder.
A.M. BEST READYING A SERIES OF STORIES ON TELEMATICS AND USAGE-BASED INSURANCE IN THE PRIVATE AND COMMERCIAL AUTO MARKETS
Diana Rosenberg is a New Jersey-based A.M. Best reporter (email: Diana.Rosenberg@ambest.com) who is in the earliest stages of doing research on this topic. She is looking to interview “mid-tier” companies that are incorporating the technologies into their business models.
U.S. SENATE CONFIRMS FORMER KENTUCKY INSURANCE COMMISSIONER FOR SEAT ON THE FINANCIAL STABILITY OVERSIGHT COUNCIL (FSOC)
S. Roy Woodall Jr., President Obama’s choice for the insurance expert position on FSOC, was confirmed on Monday, September 26 (see item #343).
FEMA’s NATIONAL FLOOD INSURANCE PROGRAM (NFIP) MAY BE EXTENDED THROUGH FRIDAY, NOVEMBER 18, 2011
The program was slated to expire on Friday, September 30, but the latest indications are that Congress will extend the NFIP at least through mid-November 2011.
FLORIDA’S GOVERNOR QUESTIONED BY EDITORIAL BOARD ABOUT COST OF AUTO, HOMEOWNERS INSURANCE IN THE STATE
Governor Scott was grilled on Tuesday, September 27, by the South Florida Sun-Sentinel’s editorial board on a number of issues, most notably the state’s comparatively high price of auto and homeowners insurance, according to the same-day story on the newspaper’s website. The governor’s recommendations on how to bring premium costs down: combat auto insurance fraud; and recruit more private sector property insurers to the state.
THE LEARNING CHANNEL (TLC) IS FILMING A PROGRAM IN OKLAHOMA THIS MONTH ON THE STATE’S FIGHT AGAINST DRUNK DRIVING
The auto insurance repercussions of a drunk-driving arrest and conviction will likely be explored, too, when the show is broadcast in January 2012. The Fox affiliate in Tulsa, Oklahoma said in this Tuesday, September 27, story that the new TLC program is called DUI.
NEW YORK STATE’S ATTORNEY GENERAL ANNOUNCES ARREST OF SUSPECT ALLEGED TO HAVE STOLEN MILLIONS FROM THE STATE’S AUTO INSURERS
Attorney General Eric Schneiderman announced the arrest of Arthur Bogoraz on Tuesday, September 27. Bogoraz is alleged to have devised a massive scheme to defraud New York auto insurers out of millions of dollars by stealing identification information to set up medical practices; sending false no-fault bills to auto insurers; and laundering more than $4.5 million in fraudulently filed claims.
LOUISIANA FAMILY THAT MOVED TO TENNESSEE AFTER BEING HIT BY KATRINA HAD THEIR HOME DAMAGED BY SEVERE WEATHER IN 2011
This Sunday, September 25, Knoxville News-Sentinel article is pegged to claim disputes arising out of the late April 2011 tornado, hail and thunderstorms that hit eastern Tennessee. Houston-based Catastrophic Claims Consultants, the story explains, is working on behalf of a couple who moved to West Knoxville, Tennessee, from Slidell, Louisiana, after Hurricane Katrina left six feet of water in their Louisiana home in 2005. A severe hailstorm damaged the couple’s current home five months ago, the piece states.
PENNSYLVANIA STATE LAWMAKER WANTS TO CREATE A NEW DISASTER RELIEF FUND BY REALLOCATING STATE’S ALCOHOL TAX REVENUES
Pennsylvaniastate Senator John Wozniak has proposed using one-fifth of the total revenue generated by the state’s 18 percent ‘Johnstown Flood Tax’ on alcohol back to its original purpose: flood and other disaster relief. The monies have over time found their way into Pennsylvania’s general fund, and little has been left over for disaster relief, the senator said. Using current revenue estimates, the newly-created Disaster Relief Fund would receive about $56 million per year.
OHIO APPROVES SALE OF INSURANCE POLICIES AIMED AT PROTECTING HOMEOWNERS AGAINST MARKET VALUE DECLINES
The Cleveland Plain-Dealer’sWednesday, September 28, edition profiled HomeValueProtection.com, a San Francisco-based company licensed to sell this specific type of policy in Ohio, effective this week. The I.I.I.’s Mike Barry is quoted in the article.
MAINE’S SENATE CONFIRMS ERIC CIOPPA’S APPOINTMENT AS THE STATE’S NEW INSURANCE SUPERINTENDENT
Superintendent Cioppa’s surname is pronounced CHOP-pah, according to this Tuesday, September 27, Associated Press article
LAS VEGAS REVIEW JOURNAL SAYS PAY-AS-YOU-DRIVE AUTO INSURANCE IS FINDING AN AUDIENCE IN THE WESTERN U.S.
California officials, and those from other western states, say that pay-as-you-drive (PAYD) auto insurance programs will save drivers money because they tailor policies to the number of miles driven, this Tuesday, September 27, Review-Journal article explains. Research indicates that PAYD policies also give drivers an incentive to drive less, thus reducing pollution, roadway accidents and deaths, and traffic jams, according to the story. California, Texas and Oregon officials have encouraged insurers to offer policyholders the option, and at least 13 insurers, representing about 60 percent of the auto insurance sector, have developed voluntary PAYD programs, the piece states.
INSURANCE JOURNAL APPOINTS NEW EAST, WEST EDITORS
New York-based Young Ha was just named the East Editor for Insurance Journal. He succeeds Ken St. Onge. Meanwhile, Wells Publishing also announced within the past week that California-based Don Jergler is Insurance Journal’snew West editor. Patti Tom held that post previously.
THE HEARTLAND INSTITUTE HIRES SNL FINANCIAL’S SENIOR INSURANCE EDITOR
Ray Lehmann starts at The Heartland Institute effective Monday, October 3, as the deputy director of its Center on Finance, Insurance and Real Estate. Lehmann is also a former Washington, D.C. A.M. Bestbureau chief. This Thursday, September 29, news release offers details.
SOCIAL MEDIA REPORT
–The I.I.I.’s Thursday, September 22, news release on steps an individual should take to avoid buying what was once a flooded car has been getting pick-up in blogs. Since the I.I.I.’s all-industry call on Wednesday, September 28, Univision contacted Elianne Gonzalez, our Florida-based Spanish-language consultant, and on Wednesday, October 5, she will be taping a segment generated by this release for the network’s local consumer program, 23 A tu Lado. An air date has not as yet been determined.
–The I.I.I.’s Wednesday, September 21, news release on the six questions a prospective life insurance policy buyer should ask an agent, or insurance company representative, has gotten decent attention on Twitter, with 30 shares between September 21-23, making it the most active I.I.I. tweet from the past seven days.
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.
