SLABBED Daily: May 12

SLABBED Daily, you bet.  Every slab on the Coast is slabbed daily and will continue to be as long as the insurance industry maintains the influence over our nation’s disaster policies documented in Lecky King’s memos and email messages .Yet, every slab has a story and some, like this one, talk.slab with power pole and steps Continue reading “SLABBED Daily: May 12”

The Corban Conundrum: The elephant in the room (updated)

Plaintiff respectfully requests the Court to stay these proceedings pending
a ruling from the Mississippi Supreme Court in Corban v. United Services Automobile  Association, et al No. 2008-IA-00645-SCT.

The latest development in Politz v Nationwide is the Motion to Stay filed by Mrs. Politz and Nationwide’s Response in Opposition filed today before the  noon deadline set by Judge Senter who shortly thereafter issued an Order denying the Politz motion.

None the less, Corban has been the “elephant in the room” since the Mississippi Supreme Court agreed to hear the case.  At the end of this post is a linked list of background information, including the summary Overview and update on Corban v USAA.

How do you eat an elephant? One bite at a time! Start with this quote from the Appeal and dig in!

…the lower court concluded “the anticoncurrent causation clause will be applied herein as interpreted by the United States Fifth Circuit Court of Appeals, thereby barring coverage under the homeowner’s policy for any damage caused by water as defined in the policy or caused concurrently or sequentially by wind and water in combination”.

One has to wonder how the Fifth Circuit could come up with such a convoluted decision. InPlainly Ambiguous: Have Plain English Laws Made Insurance Policies Less Ambiguous?, David Rossmiller explains that such results are intended. Continue reading “The Corban Conundrum: The elephant in the room (updated)”

HR 1264 is done. Stick a fork in it.

Given that Mr Obama hails from the home state of both State Farm and Allstate this should surprise no one. The bottom line is it is status quo for wind insurance thus if you’re trapped in the wind pool keep grabbing yer ankles as there is no relief in sight.

Before I link the Sun Herald story a few observations:

  • The house oversight committee for the Department of Homeland Security is chaired by Mississippi congressman Bennie Thompson yet Gene could not get a meeting with Janet Napolitano despite trying for two months.
  • Nancy Pelosi’s clout with the Obama administration looks to be minuscule to nonexistent.
  • Any meaningful regulatory reform with respect to the insurance industry is at least 4 years off. Continue reading “HR 1264 is done. Stick a fork in it.”

Our good friend Mr CLS asks an interesting question

Ajax RE – named after the suicidal Greek warrior from Homer’s Iliad – were there sufficient funds to repay the bonds’ principle on maturity date of May 8th or just default dead money not talking?

We found Ajax’s achilles heel in early March. We too now wonder if the bagholders I mean bondholders were made whole or if they are suffering their losses in silence.

Meantime it is full speed ahead for USAA and their new Bermuda based SPE Residential Re.

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La Insurance Commish Jim Donelon Brays on declining NFIP participation

The important concept to remember here is that most NFIP insureds adversely select the coverage thus the  slabbed from St Bernard Parish would be far less likely to buy the coverage if they moved to a high and dry area that has never experienced flooding despite the very cheap premium. Against that backdrop and given the looting of the NFIP by private insurers after Katrina I was tickled by Donelon’s appearance yesterday on WWL radio: (H/T the Ladder)

The 2009 hurricane season starts in three weeks, and state officials are expressing concern over an apparent dropoff in the number of homes covered by the federally-backed national flood insurance program.

State Insurance Commissioner Jim Donelan says the declining number of homes under the federal umbrella bothers him.

“We’re seeing a decrease, this year to last, of four percent in the amount of polices in effect in the state of Louisiana,” Donelan said.

Donelan says that as memories of the destruction caused by the 2005 storms fade, homeowners are getting more lax with their coverage.

He says that every property owner and renter in the New Orleans metropolitan area should participate in the national flood insurance program, even those in areas considered “flood proof.”

The populace here has been conditioned by Katrina and its aftermath. After all, the federal governemnt will pay for everything, from wind coverage that should have been covered by private insurance to the rebuilding tab for those who always thought flood insurance was a waste of money. And those that moved away from their pre-Katrina communities to much higher ground don’t see the reason to continue coverage so that wealthy Alabamians can continue the cycle of rebuilding beach houses on barrier islands only to be destroyed a few years later in the process becoming the NFIP poster child for all that is wrong with the program. Continue reading “La Insurance Commish Jim Donelon Brays on declining NFIP participation”