This has been one of those weeks insurance companies would love to forget. Since November 2007, Washington State voters overwhelmingly passed R-67, the Insurance Fair Conduct Act, Florida is trying to bar Allstate from doing business there, two executives at insurance giant Marsh and McLennan have been found guilty of price fixing, five executives at AIG and General Re were found guilty of fraud, Allstate was fined the $250,000 maximum in Louisiana for bait and switch policy cancellations and the GAO has exposed massive flaws and conflicts of interest in NFIP.
This week the pace has picked up with California finding Allstate has been overcharging for auto insurance there, Michigan’s legislature is moving to stop the use of credit scores in auto insurance underwriting, Senators Cochran and Wicker join Senators Landrieu and Vitter in placing holds on industry backed S. 2284, and Florida is moving to suspend American General Life Insurance’s license for violating Florida’s “Freedom to Travel Act”. All in all this is not shaping up to be a good week for big insurance.
In other news AM called me and asked for help in publicizing Gene Taylor’s campaign website, especially the insurance reform page. Gene was fighting for us on insurance issues long before it became fashionable in certain GOP circles but he still needs our help to have multi peril insurance enacted for us. Please visit Gene’s website and click on the “Click here Become a Partner in Insurance Reform” hyperlink on the right side. Lobbying the Senate is the key; Gene and coastal people in this country need your help to make that promise a reality.
I read today’s Clarion Ledger Op-Ed in support of HR 3121 and found some very interesting tidbits buried in the piece most notably that Senator’s Cochran and Wicker have joined Louisiana Senators Landrieu and Vitter in placing a senatorial hold on S. 2284, the re-authorization bill for the National Flood Insurance Program. As we previously noted, S. 2284 does not bring structural change to NFIP and does not contain the multi peril wind provisions found in HR 3121. While the old saying “better late than never” certainly applies to Senator Cochran and his newly found zeal to represent the interest of his coastal constituents we do appreciate both he and Senator Wicker joining the fight to solve our coastal insurance crisis. Continue reading “Clarion Ledger Editorial Reveals Behind the Scenes Politicing”
Today is a very busy news day with unrelated but very newsworthy items. The windpool premium reductions are one of a three news stories we are tracking related to Katrina issues, the other two being State Farm further restricting coverage in Alabama and the Hancock County press conference today involving Haley Barbour, Gene Taylor and Roger Wicker.
Yesterday afternoon we were greeted with breaking news that the Mississippi windpool was reducing rates for coastal residents. I read today’s Sun Herald story and was reminded of Commissioner Chaney’s Insurance Forum on March 4. Though I have not recapped either that forum or Gene Taylor’s Issues+Answers lecture on February 29th as both were lost in the corporate tax shuffle I was reminded of a post I penned on the Yahoo! Allstate Message Board about Commissioner Chaney’s Forum when I read Anita Lee’s story today.
Mr Shumaker with the wind pool was also enlightening but also exhibited what is wrong with the current system. The wind pool was not created to be palatable for it’s members but neither was it created to hold wind insurance for people living in Pearl River County. I got the impression Mr Shumaker didn’t understand how much structural change has occurred in his market since 8-29-05. Continue reading “Mississippi Windpool Rates Going Down. Commissioner Chaney Makes Good on his promise to Coastal Residents”
We at slabbed have been scratching our heads over Alabama Senator Dick Shelby’s opposition to the Senate companion of HR 3121, S. 2284 as residents in coastal Alabama face the same problems with wind insurance as their neighbors in Florida and Mississippi. Following the money reveals Senator Shelby is a big recipient of campaign ca$h from lawyers and insurance companies, the two main constituencies that actually benefit from the current dysfunctional system of wind-water peril coverage.
Scanning the news today reveals Senator Shelby’s home state of Alabama was just invited to the coastal residents need not apply party by the people over at State Farm. Unbelievably it appears concepts like Hurricane Deductibles have been foreign ones for our neighbors to the east but no longer. This process of limiting coastal property coverage can take several years; in Mississippi it began after Hurricane Georges in 1998. Continue reading “Welcome to the party Senator Shelby…….”
I noted this story in today’s Sun Herald along with some new case filings in the RICO case against State Farm. One of the recent rulings rejects State farm’s arguments against amending the complaint, especially their unsubstantiated charges of ethical breaches on part of the Katrina Litigation Group. For the sake of the defendants I hope they come up with better defenses for the trial to rebut some of the more damning evidence in possession of the Plaintiff’s such as Forensic Engineering’s computer hard drive than Kerri Rigsby’s sex life.
It is worth noting that buried in the Dickie Scruggs case publicity was a little noticed news story about Forensic flipping and cutting a deal with the Katrina Litigation Group in exchange for their cooperation. It will be interesting to hear what they have to say about their part in this alleged criminal racketeering enterprise.
I have updated the Katrina Insurance Case Documents page to include the Shows case and added files to McIntosh. Please bear with us while we build our data base. Without further commentary on my part here is today’s Anita Lee’s Sun Herald story on Shows:
A lawsuit that Dickie Scruggs and his Scruggs Katrina Group filed for 22 policyholders against State Farm is moving forward in U.S. District Court. Continue reading “Shows RICO Suit Lawsuit Against State Farm: Amendment Allowed”
“What you risk reveals what you value.” Jeanette Winterson
I’m reminded of that quote when I think of Republican Senator Eugene “Buck” Clarke, chair of the Senate Insurance Committee who just last month proclaimed his ignorance of the interplay of insurance issues with existing state law and used that lack of knowledge to kill every Katrina related reform introduced in the State Senate. The reported party line as recounted multiple times in the Clarion Ledger was something along the lines of:
But his legislation languished in the Insurance Committee chaired by Sen. Eugene Clarke, R-Hollandale, before dying under a deadline.
Rather than bring the bills out of committee and up for debate before the full Senate, Clarke said he wanted more time to study the issue. This is his first committee chairmanship. He’s starting his second term as senator. Continue reading “State Senate GOP Blocks House Insurance Measures”
Ms Lee does a good job updating today’s developments to the overall investigation. This story headlines the Sun Herald RSS feed on the lower right side of the page.
………the FBI’s special agent in charge said his office has committed the manpower to “work the case to its logical conclusion.”
“Public corruption is our No. 1 criminal priority,” said Frederick T. Brink, special agent in charge of the FBI’s Jackson Division. “Americans expect a fair and impartial judicial system. Any attempts to undermine that through bribery or other types of illegal activity really critically damages our faith in our judicial system. It is a particularly heinous crime.” Continue reading “Anita Lee reports comments from FBI”
Blogging and being a CPA in tax season the week before corporate tax due date are close to mutually exclusive but I saw two items in the local press I couldn’t let pass. First is a story that ran last night on WLOX featuring Congressman Gene Taylor and who he will support at the Democratic National Convention as a Super delegate.
Mississippi has a total of 40 delegates who will have a say in who becomes the Democratic nominee for president. Thirty-three delegates will be divvied up based on Tuesday’s primary vote. Seven other super-delegates can align with whichever candidate they like. Continue reading “Super delegate Gene playing close to the vest. Will they still love Tops tomorrow?”
This is an interesting situation, how much wind insurance can an insured collect when they are tendered their flood policies? The courts have split on this issue and depending on the Hurricane, an insured can either collect the policy limits or have their wind recovery reduced by their flood payouts. Such a legal mess would be prevented under a true multi-peril concept such as HR 3121 and taxpayers would not have to be worried about being stuck with a bill that should have been paid by private wind insurance.
Here are some exerpts from Rebecca Mowbray’s story: Continue reading “Louisiana Wind-Water News: Courts Split on Wind Recovery When Paid on Flood”