That’s right folks, this is the market our politicians like Commish Mike Chaney and his band of GOP idiots tell us we should trust and believe in. Never mind what happened when this coutry’s official economic policy was to trust the unregulated derivates market, the gang in Jackson has their story and they are sticking to it. Perhaps this is also why our state’s windpool has become a bottomless pit for taxpayer subsidy. I’ll let the good folks at Risk and Insurance Online explain:
But perhaps the investor summed up all his unspoken concerns when he stood up at the end of the presentation and asked, in not so many words: Isn’t it true that you reinsurance guys keep all the good catastrophe risks for yourselves, then give what’s left to catastrophe bond investors?
It is a matter of debate whether the speakers denied that or not, but what they did say definitely is that collateralized reinsurance has its own special place in the world of insurance-linked securities (ILS), separate from CAT bonds. It’s not that one product covers better property-catastrophe risks than the other.
It’s that collateralized reinsurance has found itself a niche at the bottom of the reinsurance program. Collateralized reinsurance usually comes into play at the lowest layers of a primary carrier’s reinsurance program. We’re talking even below the traditional “working layers” where the big-name reinsurers play.
Yep we have a new kid on the block in Collateralized Re and guess what kids? It operates in a non transparent market out of Bermuda as we continue: Continue reading “More news from the Cat House: The unregulated, nefarious Bermudan market for collateralized reinsurance. Can’t match those yields…”
The subject policy contains language commonly referred to as the “Anti-Concurrent Causation Provision” or “Weather Conditions” exclusion which State Farm has characterized as preventing any recovery for wind damage when the insured property also sustains damage caused by another weather condition… The Mississippi Supreme Court has rejected the argument that the anti-concurrent clause is not ambiguous or not enforceable. The Mississippi Supreme Court held, in Corban v. United Services Automobile Assn., 20 So.3d at ,-r,-r 32, 40-41, that the anti-concurrent clause was ambiguous and unenforceable to the extent that it purported to exclude any wind loss if it occurred separately from and in any sequence to excluded water loss.
State Farm has already argued this exact issue before the United States District Court for the Southern District of Mississippi in another identical Hurricane Katrina related case this month. (See Memorandum Opinion in Charles Spansel and Janet Spansel v. State Farm Fire and Casualty Company…) In Spansel, the District Court found that “State Farm has not shown it is entitled to summary judgment on this portion (anti-concurrent clause) of the declaratory judgment claim”. In light of this ruling and others like it, the doctrine of collateral estoppels prohibits State Farm from contending here that the contract for insurance is not ambiguous as to any perceived anti-concurrent clause.
Plaintiffs’ Motion for Declaratory Judgment, one of five motions the Robohms filed on the 19th of January, was followed on the docket by State Farm’s Motion for Summary Judgment or in the alternative Partial Summary Judgment and supporting Memorandum:
Plaintiffs’ claim for declaratory judgment fails because…it is at odds with Mississippi Supreme Court precedent establishing that the water damage exclusion in the applicable policy unambiguously excludes damage from storm surge and that the anti-concurrent causation clause excludes damage caused by wind and flood acting concurrently. See Corban v. United Servs. Auto. Ass’n, 20 So. 3d 601,614-15 (Miss. 2009).
Buckle up, folks. We’re going to the other end of the Coast – 423 East Beach Drive, Ocean Springs – and way back to see what this case is about before discussing the other motions filed yesterday. Continue reading “Robohms issue reality check in motions filed today! Robohm v State Farm”
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”
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.
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 stating 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”
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.
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”
Turbulence in the Mississippi Windpool – a stumbled – upon stunner of a lawsuit now under the Big Top with a jury at the Southern District Federal Court, Hattiesburg – was the Saturday night special here on SLABBED – causing one reader to ask what most everyone had to be thinking: where has this information been hiding for 3+ years?
The greatest insurance show on earth Association Casualty Ins. Co., et. al. v. Allstate Ins. Co., et. al appears to have been right before our very eyes but hiding behind a veil of silence.
The lawsuit was filed September 15, 2006.
Reinsurance Focus… September 19, 2007…a district court allowed a case against Directors of Mississippi Windstorm Underwriters Association (MWUA) to proceed on the theory that the directors breached a fiduciary duty to their members by failing to secure sufficient reinsurance to cover the 2004 and 2005 hurricane seasons. Continue reading “Windpool center ring, Seals on reinsurance, AIG on high wire, Send in the clowns – Allstate, State Farm, Nationwide, Farm Bureau, Travelers”
I must be quick so I can get on the road to Buzzard Roost and there are several items that we need to cover so let’s start with the men and women on the Wall Street Journal’s Editorial board who evidently found a local source for psyclobin mushrooms (and consumed alot of tea) before they wrote this:
Mr. Crist’s behavior stands in contrast to that of Louisiana, of all places. Baton Rouge also established a Citizens insurer after Katrina but only as a “last resort.” Louisiana has a thriving private insurance market, in part because regulators have let companies adjust their rates. By law, Louisiana Citizens cannot offer competitive prices, save in a few high-risk coastal areas. From a peak of about 170,000 policies in 2007, it now holds about 130,000 (about what it had before Katrina) and is aiming to get below 100,000.
Note how these lit and hallucinating buffoons neglected to mention how many policies Louisiana Citizen’s had in 2004 and 2005 or the fact the guy running Louisiana Citizens (now under federal indictment) that entire time was paying his daughter’s prom bill with policyholder premiums. Maybe next time they should check with Jim Brown before they have their combo mushroom binges/editorial board meetings. Since Bob Bartley died the only thing I can add about the remaining folks in opinion at the WSJ is that you guys really suck.
Watching the cottage controversy unfold from afar I shake my head at the utter uselessness of the approach taken by certain of the affordable housing advocates. Nowdy, who happens to know a thing or two about these type issues, contends in our internal Slabbed editorial board meetings very real issues are being obscured by the yet “another Thompson/Barbour pissing contest” and I’m inclined to agree and in this case I don’t blame our Gov. It is simple economics; throwing money putting people without means into “affordable housing” does nothing to fix the larger problem. Good paying jobs makes housing affordable. Meantime we have renters that actually work full time who are wondering where they will live when the FEMA rental assistance program ends this month. To the extent the renters work, received no grant and have no shot at a freebie cottage they have my sympathies. And since they work they can’t spend time raising cain at local City council meetings which brings us back to the “uselessness”. Solutions to thorny issues lie in the advancement of knowledge and awareness. People of goodwill can genuinely disagree but that doesn’t mean they can’t work together trying to find workable solutions to hard issues. Sometimes the politicians don’t make it easy but I’ve found both the Bay and Waveland the city councils are listening to a variety of opinions and genuinely want to do what is best for the community. Continue reading “Around the GO Zone in 60 Seconds: Drinking ‘Shroom juice at the Wall Street Journal, Cottages, Community, Warr and Wind Pool”