Safeco Insurance plans to offer wind coverage again, Mississippi Insurance Commissioner Mike Chaney said Monday morning.
The company will offer 500 to 1,000 homeowner policies with wind coverage, he said, beginning in mid-March.
“They’re going to be selective about who they write, but I’m assuming as long as there’s not a credit risk involved, they’re not going to have any real restrictions,” Chaney said. Some companies have restricted wind coverage to the northern three Coast counties, but stopped offering it to new customers or nonrenewed policyholders who live near shore.
I see the coast is still being punished by the Farm and their boy Mike Chaney. I don’t think I’ll ever insure another home with a company that employs exclusive agents and highly recommend Chip Merlin’s post that Nowdy highlighted today on getting exactly what you pay for. Anita Lee has the story for the Sun Herald:
State Farm Fire and Casualty Co. will begin writing new business again in Mississippi, spokesman David Majors said Tuesday, but not in the lower three Coast counties.
The first week of April, Jeff Amy at the Mobile Press Register authored an excellent story on the coastal X-wind HO market in Alabama. His story, unlike our coverage of it, is very timely. However, unlike justice delayed, Mr Amy’s piece has gotten better with time. The reason for that also explains my detour back to November 29, 2006 and the deposition of State Farm Senior Vice President Mr Robert Trippel, an otherwise useless character who still managed to provide some enlightening commentary when he was deposed in Watkins v State Farm about several Katrina related matters. While the meat of Mr Trippel’s depo is dedicated post on its own he had a few things to say about X-Wind policies in his zone, which includes Mississippi and Alabama so it is on page 103 of his deposition that we begin as the Watkins lawyer Jeff Marr questions Mr Trippel:
Q All right, Mr. Trippel, after you identified — what are these called, initiatives, is that what we’d call them — in these different states these things that are being conducted, what are they called?
A I would say it’s the new underwriting guidelines.
Q Okay. And you covered Mississippi and Georgia. Which state is next? What’s another state in this zone that’s been affected by the change of underwriting guidelines following Katrina?
Q How has Alabama’s underwriting guidelines been changed following Katrina?
A Very similar with a mile setback off the coast and hurricane deductibles for new business.
Q Okay. So similar to Mississippi in that new business is only a mile off the coast, correct? Is that correct?
Q And then the wind hurricane — excuse me, hurricane deductible is now 2 percent to 5 percent?
I’ve been too busy too keep up with the news but the spectacular implosion of the Madoff hedge fund caught my attention if only because it serves up another great example of regulators being asleep at the switch at the US Securities and Exchange Commission instead of protecting the investing public from fraudsters such as Bernard Madoff. From what I’ve read and heard Madoff’s so called investment bank was nothing more than ye ole Ponzi Scheme. Even better the toothless watchdogs at the SEC looked at Madoff multiple times and found nothing wrong.
I’ve written about the problems with regulatory capture many times here on slabbed, from our own Mississippi Insurance Commissioner Mike Chaney to big problems at the SEC involving John Mack, CEO of Morgan Stanley. The end result is never good for the public though Mr Mack’s $40 million dollar bonus must have been nice for him.
As for the group of very distinguished bagholders that resulted from Mr Madoff’s get rich quick Ponzi Scheme, they may just get a bailout according to this AP story carried by the Sun Herald.
A federal judge on Monday threw a lifesaver to investors who may have been duped in one of Wall Street’s biggest alleged frauds, saying they need the protection of a special government reserve fund set up to help investors at failed brokerage firms.
U.S. District Judge Louis L. Stanton ordered that clients of Bernard Madoff’s private investment business seek relief under a federal statute created to rescue cheated investors. Stanton also ordered that business be liquidated under the jurisdiction of a bankruptcy court and named attorney Irvin H. Picard as trustee to oversee that process. Continue reading “The End Result of Regulatory Capture: Madoff and Another Bailout”
Anita Lee is always good but today she is also heaven sent. It seems the Consumer Federation of America and United Policyholders have taken Mr Chaney to task for not doing a good job looking out for consumers. Duh! I guess we should be grateful he has finally gotten around to the fortified bunker program.
I guarantee Kevin Buckel and Amy Bach aren’t the only two people that our Commish feels free to ignore. IMHO Chaney and his staff were too busy leaking David Rossmiller info about the Market Conduct Study to bother with such trivialities.
In any event (and while we wait to hear what Mr Matthews and Company think of Mr Chaney and his Market Conduct Study) here is Anita Lee’s story about how consumers/voters need not apply for access to the Commish -he is simply too busy.