Category: Mississippi Windstorm Underwriting Association

Go figure! Mississippi has nation’s seventh-most-expensive homeowners insurance and lowest median household income

Rebecca Mowbray reported Louisiana homeowners insurance is nation’s third-most-expensive, study says in Sunday’s Times Picayune.

Louisiana remains the third most expensive homeowners insurance market in the nation behind Florida and Texas, according to newly released data from the National Association of Insurance Commissioners.

Mississippi ranked seventh.  Expanding the NAIC data with median family income during the reporting period shows Mississippi and Louisiana in last and next-to-last place on a ranked listing of states when state median household income is considered.

Mowbray points out policyholders actually pay more because the numbers do not reflect the cost of flood insurance, which is sold as separate policy. Continue reading “Go figure! Mississippi has nation’s seventh-most-expensive homeowners insurance and lowest median household income”

Is Chaney the Grinch who stole insurance industry’s Christmas?

He puzzled and puzzled till his puzzler was sore. Then the Grinch thought of something he hadn’t before! Maybe everyday doesn’t have to be Christmas for insurers who want higher rates for the shore.  Maybe Christmas…perhaps…means zones are no more!

They’re finding out now that no Christmas is coming! They’re just waking up, I know just what they’ll do. Their mouths will hang open a minute or two, then the Whos down in Whoville will all cry, “Boo Hoo.”

“We won’t take zone filings for the time being. I think the larger carriers have abused that privilege. We’re trying to bring some reasonableness to how they handle their rates.” Continue reading “Is Chaney the Grinch who stole insurance industry’s Christmas?”

Recuse in the Scruggs news

A coincidence, perhaps? Northern district Judge Shannon Aycock (Wilson v Scruggs) and southern district Judge Sul Ozerden (Young v Scruggs) each recused from a case involving Dick Scruggs in Orders dated October 15, 2009.

Wilson v Scruggs was filed in federal court in North Mississippi and assigned to Judge Neil Biggers.  Shortly after Scruggs’ co-defendant Steve Patterson filed his Motion to Dismiss, Judge Biggers recused and the case was reassigned to Judge Shannon Aycock.

However, Judge Aycock filed a Waiver of Judicial Disqualification with the Clerk:

Unless a waiver is obtained from all parties and all counsel, Judge Aycock intends to disqualify in this proceeding because of these circumstances:

Judge Aycock’s Courtroom Deputy, Ginger McDaniel Sullivan, worked as a
paralegal with the Wm. Roberts Wilson, Jr. P.A., law firm in Jackson, Mississippi, from June 2001 to February 2005. In that position, Sullivan worked under the direction of William Roberts Wilson, Jr., Charles M. Merkel, III, and Roberts Wilson, Jr. During her employment, Sullivan was familiar with and worked on issues in the lawsuit Wilson vs. Scruggs, et al, First Judicial District of Hinds County Circuit Court. This litigation was pending when she began her employment and was not resolved as of the date she left the firm…

If a waiver is not received from all parties and all counsel, this Notice and any responses will be kept under seal by the clerk and not shown to the judge, nor will the judge be informed of the identity of any party or lawyer who declined to waive the disqualification. If the disqualification is not waived, the case will be reassigned to another judge.

Apparently waivers were not received from all parties as Judge Aycock recused and issued a related Order dated October 15, 2009. Continue reading “Recuse in the Scruggs news”

Drake v Nationwide goes another emotionally distressing round

The high water level or storm surge of a hurricane and specifically Hurricane Katrina is generally misunderstood by the general public. Most people think that the storm surge is a virtual wall of sea water that suddenly comes ashore as the hurricane makes landfall.

While this may be true to some extent at the actual center of the eyewall of a hurricane as it makes landfall, it is not true for the storm surge or high water away from the center of the storm. Rather, the rising of the storm surge or high water is a gradual occurrence as you get further from the center -of the storm, even in the most intense winds of the northeast quadrant of the hurricane.

I have interviewed two eyewitnesses to the Hurricane Katrina high water occurrence, and they each tell very similar accounts. A third eye witness on lovers lane in Ocean Springs reportedly tells a similar account. The witnesses state that the water rose gradually, first in the edge of their yards, then by progression up to the steps of their house and finally up on the sides of the house to the highest water level.

The witnesses state that the high water stayed at the highest level for a short period of about 30 minutes and then receded in the same gradual manner as the water rose. The witnesses who gave these accounts were located in Pascagoula near the water; at D’Iberville on the Back Bay of Biloxi; and on the waterside of Lovers Lane in Ocean Springs. (emphasis added)

With Ted Biddy’s February 9, 2006 forensic analysis of the loss documenting wind speed and water level across the Coast , it is difficult to believe Nationwide let the Drake’s claim for ALE reach the point of litigation.  The State’s windpool and the Federal flood program picked up the tab for the slab; and, all that was left for Nationwide to pay was approximately 1/10th of the total loss.

Nonetheless, four years after Katrina left the Drake’s with a slab, Nationwide is Continue reading “Drake v Nationwide goes another emotionally distressing round”

David Treutel Talks Mississippi Coast Insurance Issues

Mississippi Wind Pool Board Member and Vice Chairman David Treutel was recently interviewed on WLOX. I didn’t learn much except Doug Walker parrots Ron Peresich real well.  We’re all ears as to which plan Ron thinks has a chance up in DC.

[youtube=http://www.youtube.com/watch?v=ZiIvGmdnRXg]

Slabbed Daily Weekend Edition: June 6/7. Catching up on insurance news.

I finished my first radio appearance a few minutes ago and thought the show went very well. Kevin Buckel was kind enough to call in explaining his public records lawsuit against the Commish as we covered a variety of insurance related topics from appraisal to the actual cost to insure a home here in the GO Zone. Now here is a months plus worth of insurance news with more to come. (H/t to Editilla and Alan Lange)

First up we have a trio of somewhat conflicting articles out of the Louisiana insurance market, which the Wall Street Journal editorial board held up as a stellar example of a well working state insurance market, while not mentioning Louisiana has some of the highest homeowner insurance rates in the country. I’ll start with the “good” news that Louisiana Citizens rates are dropping in Orleans Parish per the Times Picayune which cites “increased competition” as the reason:

As of May 1, homeowners policies in Orleans Parish will reflect a 9 percent decrease. The stripped down “dwelling” policies, which don’t include liability coverage, dropped 22 percent, said John Wortman, chief executive of the state-sponsored insurer of last resort.

“This is because the market rates have gone down and we follow the market place,” Wortman said.

Statewide, however, the average rate climbed 7 percent and homeowners rates also rose in St. Tammany and Jefferson parishes as well.

By law, Citizens must set its prices to match that of the most expensive insurer in each parish. Continue reading “Slabbed Daily Weekend Edition: June 6/7. Catching up on insurance news.”

Catching up a week’s worth of insurance news: The windpool and a Sun Herald Editorial

I noted the Sun Herald ran an insurance related editorial and covered the continuing fight to get another 40 million dollar taxpayer subsidy from the legislature to the windpool this session. We’ll start with the heavily commented upon editorial that ran Thursday:

To appreciate the urgency of finding a way to lower residential insurance rates on the Coast, consider where our economy would be if a large segment of South Mississippians were not paying hundreds and thousands of additional dollars in premiums each year.

Much of that money would be circulating.

It could be used to make car payments. It could be used to make home improvements. It could be used to make countless purchases.

It could be used to pay for medical and dental services now being put on hold due to the expense.

Surely every sector of our economy — wholesale as well as retail, dining and entertainment as well as professional services — would be bolstered, if not booming.

Instead, insurance costs drain our economy of needed cash. Continue reading “Catching up a week’s worth of insurance news: The windpool and a Sun Herald Editorial”

Windpool circus shuts down – just as Big Top goes up

Wednesday’s Docket for Association Casualty Ins. Co., et. al. v. Allstate Ins. Co., et. al had just two items – one an amended page 29 in the Plaintiff’s List of Exhibits and the other an Order Directing Verdit, Adopting Bench Opinion and Dismissing Complaint issued by US District Judge Keith Starrett.

This cause came on for trial on March 3, 2009, before the Court and a jury of ten. Both sides announced ready…Testimony was taken and evidence presented for eleven days. Following the completion of the Plaintiff’s case, a Motion for Directed Verdict was made by the Defendants.

The Court, in an oral bench opinion, granted Defendants’ Motion for Directed Verdict. The Court does hereby find that the Motion for Directed Verdict should be and is hereby sustained and incorporates herein by reference the bench opinion delivered this date images3stating the reasons and findings of the Court. This case is finally dismissed with prejudice.

Ironically, Time online was putting reinsurance under the Big Top in The Next AIG Scandal: Continue reading “Windpool circus shuts down – just as Big Top goes up”

News on Windpool reinsurance case not reassuring

The whiff from yesterday’s docket report  in  Association Casualty Ins. Co., et. al. v. Allstate Ins. Co., et. al got stronger today – and once again, we see loopholes where there should be a safety net.

Plaintiffs rested their case before the jury today  and all of the remaining insurance company defendants followed State Farm’s lead and jointly submitted a Motion for Judgment as a Matter of Law supporting their motion with a Memorandum.  In that, we find a troubling thought:

The evidence has shown that the Board engaged in a comprehensive rational process, considering several pertinent factors in deciding on a reinsurance program for the MWUA for 2004 and 2005 storm seasons, which was unquestionably reasonable and in good faith.

It will be interesting to read what Steve and CLS have to say about that!  It will just be after-the-fact. Continue reading “News on Windpool reinsurance case not reassuring”

Same circus, new act – still playing in Federal Court

The jury for the  Windpool circus taking place in federal court in Hattiesburg,  Association Casualty Ins. Co., et. al. v. Allstate Ins. Co., et. al saw a new act today.  sf-windpool-3

The lawsuit against the Windpool Board was filed in September 2006 – and today State Farm suddenly remembered it wasn’t on the Windpool Board after all!  Imagine that!

John Corlew must be trying one hell of a case for State Farm to start calling, “George!” and filing a Motion for Judgment as a Matter of Law with supporting Memorandum.

As set forth more fully in the accompanying brief, the facts and inferences pointso strongly and overwhelmingly in favor of State Farm that no reasonable juror could conclude that State Farm was a member of the MWUA Board of Directors.

Because State Farm was not a member of the MWUA Board during the relevant time period, State Farm, as a matter of law, cannot be held directly liable for the Plaintiffs’ claims. Continue reading “Same circus, new act – still playing in Federal Court”