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 16, please email Mike Barry at Michaelb@iii.org.
Largest wildfire in Los Angeles County’s recorded history appears under control:
The Los Angeles Times offered the latest news on the Station Fire in its Tuesday, September 8, edition.
I.I.I. issues statement on insurance repercussions of September 11:
Since the call, the I.I.I. has released to the media an analysis of the loss of life and insured losses from September 11, 2001, on the eighth anniversary of the terrorist attacks, as well as calling attention to the I.I.I.’s extensive research on terrorism risk insurance.
Wall Street’s securitization of life insurance settlement policies examined by New York Times:
Reporter Jenny Anderson wrote in a front-page Sunday, September 6, New York Times story about Wall Street investment banks looking to replace lost profits by investing in “life settlements.” The business would consist of purchasing the life insurance policies of ill and elderly people, the price depending on the anticipated life expectancy of the policyholder, then “securitizing” these policies by bundling hundreds or thousands into bonds and reselling them to investors. While Wall Street stands to make a sizable profit from the fees, Anderson wrote, some experts say insurers might raise premiums because they may have to pay out more death claims than anticipated since individual policyholders often let their life insurance lapse before they die.
Financial Times, NBC Nightly News and Boston Herald call I.I.I. to talk about life insurance settlements:
Besides the FT’s Spencer Jakab, NBC Nightly News correspondent Lisa Myers and the Boston Herald’s Jay Fitzgerald, the I.I.I. also heard from New York-based TV reporter Carl Gierstorfer (email: carl.gierstorfer@gmail.com), who works for public German TV stations ZDF/Deutsche Welle. Gierstorfer said since the call that he is seeking to tape an interview with an individual who has either sold their life insurance policy to a life settlement company, or is thinking of doing so.
Credit score primer offered on front page of Wall Street Journal’s Personal Journal section:
WSJ reporter Karen Blumenthal’s Tuesday, September 8, story (subscription required) says 35 percent of your credit score is based on payment history and 30 percent is on amounts owed and how much of your credit limit you have used. Credit-based insurance scoring was not mentioned.
Dow Jones Newswire, Buffalo News reporters among participants in I.I.I.’s ‘Annuities 101’ Webinar:
Dr. Steven Weisbart, senior vice president and chief economist at the I.I.I., hosted on Wednesday, September 9, a Webinar for journalists and other interested parties. The Webinar reviewed basic annuity categories, focusing on the differences between deferred and immediate annuities as well as fixed and variable annuities. Dr. Weisbart also examined whether fixed life annuities are the right choice for certain consumers while also offering broader buying tips. The PowerPoint presentation includes slides illustrating the points discussed.
PCI calls for U.S. Senate action on flood program extension; AIA welcomes return of U.S. Senate committee chair:
Property Casualty Insurers Association of America (PCI) urged the U.S. Senate to extend the National Flood Insurance Program (NFIP) through March 31, 2010, something the U.S. House voted to do in July 2009. The American Insurance Association issued a statement this week on U.S. Senator Christopher Dodd’s (D-Connecticut) decision to remain as chairman of the U.S. Senate Banking Committee.
NAIC to hold September 24 hearing on credit rating agencies’ role in insurance regulation:
The National Association of Insurance Commissioners (NAIC) has scheduled , a public hearing for Thursday, September 24, at 8:30 a.m. in National Harbor, Maryland. The purpose of the hearing is to examine whether changes need to be made in the relationship between credit rating agencies and insurance regulators.
Sudden ouster of newly-appointed American Academy of Actuaries president makes national news:
Bruce Schobel’s brief tenure as president of the American Academy of Actuaries and details involving his ascension to, and departure from, the post, were in the Tuesday, September 8 New York Times.
California Senate approves bill modifying law on what insurers can tell policyholders about their preferred auto body repair shops:
The California state Senate narrowly (21-17) approved on Friday, September 4, a bill (AB 1200) that would change a six-year-old state law requiring insurers to tell policyholders that they have the right to get their car repaired at any auto body shop they want. Currently insurers can recommend that policyholders take their vehicles to one of the insurers’ pre-picked facilities, but only if the policyholder has no preference. The proposed changes would still uphold car owners’ rights to choose a body shop. At the same time, the measure, if signed into law by Governor Schwarzenegger, would allow insurers to continue to provide information about their auto body repair shop networks, even after the policyholder had made an initial selection. The Los Angeles Times reported on the issue in its Saturday, September 5, edition.
California’s insurance commissioner reports 31 percent increase in ‘suspected’ vehicle arson fraud cases:
Commissioner Steven Poizner issued a press release on Tuesday, September 8, which stated that California’s Department of Insurance (DOI) saw in 2008 a 31 percent increase in suspected vehicle arson fraud cases as compared to 2007.
Pay-as-you-drive regulations issued by California’s Department of Insurance:
The DOI released on Thursday, September 3, the regulations which will govern auto insurers who base their premium rates on actual miles driven. The Sacramento Business Journal filed a brief item on the news.
Dallas Morning News (DMN) critiques method employed by police when reporting Dallas car burglaries:
This front page story in the DMN’s Sunday, September 6, edition raised questions about the way car burglaries have been reported in Dallas in recent years, raising concerns among consumers and insurers.
Houston Chronicle examines dispute between TWIA, state regulators about Ike claim denials:
“The outcome of the battle between TWIA and state regulators could set a precedent for how future roof claims are handled after a hurricane,” reporter Purva Patel wrote, in a Houston Chronicle article that appeared on the front page of the paper’s Sunday, September 6, business section.
Houston’s CBS affiliate offers harsh assessment of insurer claims-handling practices after Hurricane Ike:
Reporter Mark Greenblatt’s six-plus minute story was broadcast on KHOU-TV on Thursday evening, September 10.
Trial lawyer hosts September 11 Houston seminar for public adjusters; focus is on Hurricane Ike claims:
The Merlin Group hosted an invitation-only seminar for Texas-licensed public adjusters on Friday, September 11, at a Houston hotel.
I.I.I.’s letter to the editor on property insurance trends published in Mobile Press-Register:
The I.I.I’s Weisbart, in a letter published on Wednesday, September 9, took issue with the Mobile Press-Register’s Monday, August 31, article on Alabama’s coastal property insurance market (“As private insurers reap profits, Alabama beach pool strains to cover coastal homeowners”).
Alabama media focusing on building code changes as way to ease coastal property insurance problems:
The Mobile Press-Register reported on Tuesday, September 8, that the Gulf Shores, Alabama City Council is considering dropping its adherence to the 2003 International Building Codes (IBC) in favor of the 2009 IBC, which would mandate more stringent construction standards. In a related development, Decatur, Alabama’s Building Director, James Brothers, told the Florence (AL) Daily Times that a statewide building code may improve the coastal property insurance market in Alabama.
New Orleans-based federal judge to hear Chinese drywall cases starting in January 2010:
U.S. District Judge Eldon Fallon, who is presiding over hundreds of lawsuits against Chinese drywall makers and installers, plans to hold the first trial in January 2010, the Associated Press reports. The lawsuits claim that the imported products installed in a number of homes damaged by hurricanes in 2004 and 2005 emit chemical compounds that have ruined homes and harmed residents’ health. Judge Fallon says the first group of trials will deal with damage claims and will not include plaintiffs suing for health problems.
Former CEO of Louisiana Citizens to go on trial in March 2010:
Terry Lisotta’s trial will begin on March 22, 2010, in Baton Rouge, Louisiana, according to a Tuesday, September 8, New Orleans Times-Picayune article.
Four New Jersey communities placed in a flood zone after FEMA redraws its maps:
About 4,300 properties in Middleton, Keansburg, Hazlet and Union Beach, all of which are situated in Monmouth County, New Jersey, will now be required to carry flood insurance, according to this Sunday, September 6, New York Times article.
New York’s final life insurance and annuities ‘suitability’ hearing set for September 16:
The last of the four New York State Insurance Department public hearings on life insurance and annuities sales practices will be held on Wednesday, September 16, at 10 a.m. in Manhattan. The details on the locale are here (see final item).
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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