Insurance Claims And Issues

Different Business, Different CatClaim Preparations.

     Different businesses get ready for Catastrophe Claims in different ways, it is reported in "Getting Ready for Storms is Major Job For Big Businesses" p. C1, col. 5 "Central Florida Business" Section (Orlando Sentinel, Friday, June 13, 2008), published online as "Past Storms Taught Lessons Big Businesses Won't Forget".

     Something these businesses all have in common with each other, and with every individual as well:  Finding and keeping Insurance Coverage for Catastrophe Claims in the near future now, and in future days far ahead.

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Crop and Flood Losses Bring Claims to Midwest.

     Several of the larger Crop Insurance Companies in the United States are Wells Fargo, Ace Ltd., and Deere & Co.  Jeff Wilson, "Corn-Crop Losses Widen as U.S. Midwest Fields Flood (Update 1)" (Bloomberg.com, Tuesday, June 17, 2008).  Wells Fargo & Co.'s Rural Community Insurance Services alone is reported to have already received this year triple the amount of Flood-loss claims for farms that it received in the year 2007.

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... And Now, On To Everyone's Business Preparing for Catastrophe.

     Good advice for preparing for CatClaims that everyone can put to use is found in "Preparation Eases the Aftermath," published on Friday, June 6, 2008 by the Los Angeles Times Online, found at www.latimes.com.

     Among the good advice given there is to contact your agent or broker --before Catastrophe strikes -- to determine the levels of Insurance Coverage right for you.

     Also, keep records of everything new in your home -- not just recently added personal property such as jewelry but also home improvements and renovations.

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Small Business Planning for Catastrophe (Heaven Forbid).

     Some things that small businesses can include in their planning for CatClaims are addressed very well by Joyce M. Rosenberg, Associated Press, "Disaster Planning for Small Businesses," May 26, 2008, available online at www.latimes.com.

     The first order of small business planning is to provide for adequate Insurance Coverage.  This includes Coverage for Catastrophe losses as well as losses from fires, storms, floods or earthquakes depending on where the business is located.  The article also offers good advice to look into Business Interruption Insurance.

     On-the-ground Catastrophe planning mentioned in the article includes:

• "Contact list":  One person quoted by the newspaper reporter recommends having not less than five (5) ways to get ahold of every single employee.
• "Data":  As recommended not only in this newspaper report but in many, many other pieces by many other people as well, look into a USB port.  They are easily portable and are easily stored in a secure location.  Many automatically -- or, as in my office, at the command of only a few key strokes -- back up hard drives.
• "Backup generator":  Perhaps a good idea for businesses that have the capacity and opportunity, as suggested in this newspaper article, but impractical or impossible for many business owners who lease.

Other suggestions are raised in the newspaper article, among other reports.  Last but not least, here are some websites for further ideas and suggestions:

• The Institute for Business & Home Safety:  www.disastersafety.org; and

• U.S. Small Business Administration:  www.sba.gov/bewareandprepare/business.html.

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Florida O.I.R. Lifted Suspension of New Allstate Policies...

... The Same Day Florida's First District Court of Appeal Denied Rehearing of its Opinion Upholding O.I.R.'s Order Suspending New Allstate Policies.

     Press reports published on Saturday, May 17, 2008 made it appear that the Florida Office of Insurance Regulation (O.I.R.) lifted its suspension on new Allstate Insurance Policies on Florida on the day before, or Friday, May 16, 2008.  As you will recall, the O.I.R. issued its Suspension Order in the first place because Allstate failed to comply with O.I.R. subpoenas for various groups of documents including unauthorized Catastrophe Computer Models purchased by Allstate in connection with its Premium Rate Increase requests.

     According to the O.I.R., it announced a stay of its Suspension Order on Wednesday, May 14, 2008, immediately after the Florida appellate court denied rehearing of its Opinion upholding the O.I.R. Order.  The reason given by the O.I.R. was its receipt of a sworn affidavit from Allstate "certifying that it has complied with Florida law by freely providing all documents requested" by the O.I.R.  See Florida Office of Insurance Regulation Press Release, "Florida Insurance Commissioner McCarty Stays Allstate Suspension, Continuing Compliance Required," Wed., May 14, 2008.

     Dennis Wall, Chair of the Insurance Law Committee, will speak at the Orange County Bar Association Center in Orlando, Florida about Preparing for Hurricane Insurance, on Wednesday, May 21, 2008 from Noon to 1:00 P.M.  The Orange County Bar Association Center is located at 880 North Orange Avenue in Orlando, Florida.

    You are cordially invited to attend this free public event.  Hope to see you there. 

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Preparing for Hurricane Insurance.

    Dennis Wall, Chair of the Insurance Law Committee, will speak at the Orange County Bar Association Center in Orlando, Florida about Preparing for Hurricane Insurance, on Wednesday, May 21, 2008 from Noon to 1:00 P.M.  The Orange County Bar Association Center is located at 880 North Orange Avenue in Orlando, Florida.

    You are cordially invited to attend this free public event.  Here  is a link to the "EVENTS" published about this presentation by the Orlando Sentinel on Monday, May 19, 2008 on page C3, col. 1, in "The Law & You" Section.

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Anti-Concurrent Cause Exclusion Blows.

    Frustrated by the famed Anti-Concurrent Cause Exclusion by which damages caused in part by an Excluded Peril and in part by a Covered Peril are totally excluded from Coverage, some Members of Congress propose adding "wind" coverage to the National Flood Insurance Program.  The idea is resisted by Insurance Companies, among others.   See Jeffrey H. Birnbaum, "Storm Brews Over Adding Wind Coverage to Federal Flood Program" (washingtonpost.com, Tuesday, March 25, 2008).

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Storm Clouds in Florida: Legislature Divided Over Rollback, Writedowns.

   The current credit crunch and crisis, problems with issuing and insuring the payment of Bonds, and at least one of the questioned credit rating corporations used in the Insurance industry, have recently made appearances together in the Florida Capitol.

   The current credit crunch has appeared together with the specter of a failure in the market for Florida Bonds.  "In light of the troubled housing and credit markets, state leaders have expressed doubt that they'd be able to sell $27 billion in bonds needed to pay storm claims if a Katrina-sized hurricane hit a major population center in Florida."  Julie Patel, "State Legislators Say Property Insurance Law Has Deep Flaws" (South Florida Sun-Sentinel.com, 10:24 PM EDT, Monday, March 24, 2008). 

   In addition, embattled credit rating company Fitch Ratings just issued a timely report.  In its report, Fitch reportedly takes the position that Homeowner's Insurance Coverage would "'effectively collapse'" if there is a Hurricane in Florida in 2008.  The Fitch report comes just as the Florida Legislature is debating whether to writedown and rollback, or extend, the emergency laws it passed in Special Session in January, 2007.

   A majority in the Florida Senate reportedly is in favor of extending and expanding the 2007 Special Laws on Hurricane Insurance.   For example, a majority of the Florida Senate reportedly supports extending a moratorium on Premium Rate Increases by Citizen's Property Insurance Company.  The moratorium or "freeze" on Rate hikes is due to expire on January 1, 2009.    Citizen's is owned and operated on behalf of Florida Taxpayers as a State agency offering circumscribed Homeowner's and other Property Insurance Coverages.  That its offerings became suddenly more popular in 2006 and 2007 was taken then as a sign of a desperate Homeowner's and Property Insurance Market in Florida.

   On the other hand, a present majority in the Florida House of Representatives reportedly opposes extending the moratorium on Citizen's Property Insurance Premium increases.  Further, a majority in the Florida House is reported to support "scaling back the catastrophe fund" that the Florida Legislature rushed into place in its 2007 Special Session.

   More to come in the struggle among and between Premium Rate Increases and the availability of credit, the performance and issuance of so-called Municipal Bonds such as the Florida Bonds in question in the Florida Capitol, and the very existence and availability of Homeowner's Insurance Coverage in Florida.

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Florida Select Comments on Property Insurance.

Erin Go Bragh!

    The work of the Florida Senate Select Committee on Property Insurance Accountability is finished.  Here is a pdf file containing the Report they submitted on March 13, 2008 to the President of the Florida Senate:  Download select_committee_reccos.031308.letter.pdf.

   In the Report, the Select Committee made many recommendations.   The Committee broke out three areas in its Report and made recommendations as to each area.  The Committee made 14 recommendations concerning "RATE FILINGS", another 14 recommendations as to "COMPANY PRACTICES" and 2 final recommendations regarding "FUNDING PROPOSALS".  Here are some of the more significant recommendations:

RATE FILINGS

• For all Rate Filings, require that rates be based on Catastrophe Models that are approved in Florida, "without any modifications to the model."
• Require that approved CatClaims Models be used by Property Insurance Companies when these Insurance Companies determine their probable maximum loss.
• Establish one standard for allowable Reinsurance expenses.
• "Require insurers to certify in a rate filing the number of policies they intend to non-renew and that the reduced risk is calculated into their rates."
• "Repeal the arbitration option," by which Property Insurance Companies arbitrate Rate Hike Denials, "or extend the temporary prohibition on allowing insurers to use the option of appealing to an arbitration panel a rate filing disapproved by OIR [the Florida Office of Insurance Regulation]."
• If Insurance Companies introduce information in support of a rate filing at a Hearing before the Florida Department of Administrative Hearings, then they must previously have provided it to the Office of Insurance Regulation.
  

"Review Insurance Policies Now" Says Orlando Newspaper.

   Good advice with related links in this newspaper article published in the Orlando Sentinel, February 22, 2008, by Greg Groeller, "Review Insurance Policies Now".  Every Policyholder and their Agents and Brokers holding every kind of Insurance Policy can benefit from following the good advice published by this linked newspaper article.

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