Archive for July, 2010

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LA Governor Signs Chinese Drywall Bill

July 12th, 2010 by Iris | Comments Off | Filed in homeowners insurance

Earlier today, Louisiana Governor Bobby Jindal signed into law the bill which will prevent insurance companies from dropping coverage of homeowners who have found corrosive Chinese drywall in their homes.

The new law, which was sponsored (as a bill) by Senator Julie Quinn of Metairie, will prohibit insurers from canceling or refusing renewals on policies for homes because of Chinese-made drywall which has been blamed for health concerns and corrosion, though insurers will NOT be prevented from raising relevant deductibles or premiums.

This new law only applies to drywall that was imported from or manufactured in China before Dec. 31, 2009. Insurers found to be in violation will face a penalty of up to $15,000.

The law remains in effect until July 1, 2013.

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U.S. Sanctions Trigger Lloyd’s of London’s Refusal to Insure Iranian Petroleum Imports

July 9th, 2010 by Iris | Comments Off | Filed in insurance facts, insurance news

While the oil spill on U.S. shores remains to be stopped, last week President Obama signed into law new sanctions designed to limit fuel imports into Iran, and increase the Islamic Republic’s international isolation.

On the heels of that announcement came another: the British insurance company Lloyd’s of London, known for insuring high risk properties, has stated it will no longer insure or reinsure petroleum being shipped into Iran.

In a statement earlier today, the insurer’s general counsel Sean McGovern told reporters from Reuters, “The U.S. is an important market for Lloyd’s and, in recognition of this, the market will not insure or reinsure refined petroleum going into Iran. Lloyd’s will always comply with applicable sanctions.

The United States and its European allies suspect Iran is trying to build an atomic bomb. Tehran has said its nuclear program is for the peaceful generation of electricity.

Already, Iran has been finding it difficult to engage in financial trading. Many oil companies, trading houses, and the like have ceased doing business with the country, out of fear of violating U.S. sanctions.

According to Reuters, Iran is buying about half of its July gasoline imports from Turkey, with the rest coming from Chinese sources, since most other suppliers will not sell to them.

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Iowa Communities Choose to Opt Out of National Flood Insurance Program

July 8th, 2010 by Iris | Comments Off | Filed in flood insurance

Last week, Congress voted to reauthorize the National Flood Insurance Program, and on July 2nd, President Obama signed the extension into law, keeping it active until September 30th, but not everyone is taking advantage of the reinitiated program, especially in Iowa.

According to government officials, only eighteen cities and counties in Iowa have joined the NFIP since the floods that soaked their state two years ago. Why not? Because of paperwork and money.

Specifically, local officials say, the participating communities are required to adopt and enforce flood plain management ordinances in order to reduce damage from future floods, and that process either takes too much red tape, or would increase insurance costs to home- and business owners.

Unless their communities agree to participate in the national flood insurance program, residents of those communities cannot purchase federal flood insurance. This year, 113 Iowa cities and counties within flood hazard areas have chosen not to participate, down from 131 non-participating communities in 2008.

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Missouri Files Suit Against Federal Health Care Plan

July 7th, 2010 by Iris | Comments Off | Filed in health insurance

Lieutenant Governor Peter Kinder of Missouri filed a lawsuit today to block federally mandated health insurance in his state, claiming that Congress’s health care overhaul has overstepped governmental authority, and infringed upon state sovereignty. Kinder’s suit, filed by himself and three other Missouri residents, asserted that the federal government may not force people to purchase a product nor can it require state officials to participate in enforcing a “federal scheme.”

Missouri is not the first state to challenge the federal health care plan since it was signed into law in March.

In a written statement, Kinder, a Republican said, “Many Missourians will lose the options for health insurance they currently enjoy. Missourians have less health care coverage after the federal law was passed than they did before it was passed.”

Insurance changes sparked by the new federal health care law include the expansion of health insurance coverage, so that thirty million people currently without insurance will be covered. Parents will be able to keep dependent children on their policies to the age of 26, and Medicaid coverage will be expanded. There is a period of roughly four years before insurance is required or tax penalties will be levied.

In other lawsuits, the Justice Department has maintained that the federal health care law fits within Congress’s authority over the regulation of interstate commerce and providing for the general welfare of the American people. Further, it argued, the choice to opt out of health insurance affects everyone, insured or not.

On Wednesday, U.S. Department of Justice spokeswoman Tracy Schmaler said that it will defend the federal health care law from challenges over constitutional or other grounds.

“We are confident that this statute is constitutional and that we will prevail,” Schmaler said.

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Marsh Warns PolicyHolders: Notify Your Carriers of BP-related Damages NOW

July 6th, 2010 by Iris | Comments Off | Filed in business insurance

Gulf Coast businesspeople and residents facing the possibility of losses because of BP’s Deepwater Horizon oil spill in the Gulf of Mexico have been advised to submit written notice to their insurance companies as soon as possible, and no later than Thursday, July 8th, at 5:00 PM EDT.

Global insurance broker, Marsh, issued a statement via its website explaining that insurers are saying that the 80-day notice provisions in their policies will be strictly interpreted. For this reason, policyholders should consider April 20, 2010, the date of the Deepwater Horizon explosion, as the start date for calculating such a notice provision.

Marsh advised, “This week, several carriers indicated that they will enforce these time limits strictly, without any weight given to the date the insured first became aware that they faced potential exposure. Therefore, if not already in process, it is important that clients and their legal counsel analyze the potential exposure to damages arising from the Deepwater Event and review all of their current excess and primary policies in order to comply with notice provisions.”

The broker also added that some excess liability carriers are planning to add “…broadly worded, event-specific exclusions to their 2010-2011 policies to prospectively eliminate coverage for the Deepwater Event.”

This means that even if a poilicyholder files a notice in compliance with the time limit, “…it is likely that the carrier will attempt to limit its exposure prospectively via an endorsement that excludes the Deepwater Event,” according to Marsh.

Clients who opt not to notice the BP event at this time may face strictly enforced time deadlines from their insurance carriers even if all damage has not been established, or potential exposures have not been clarified.

Marsh said it is urging carriers to withdraw – or at least narrow – these exclusions, but warns that “…this is an emerging market trend that raises concerns…” with respect to 2009-2010 policies and raises questions about whether circumstances or claims should be notified now.

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Health Care Overhaul May Mean Longer Lines at ER

July 2nd, 2010 by Iris | Comments Off | Filed in health insurance, insurance news

The Associated Press office in Chicago is reporting that healthcare overhaul may mean even longer waiting times in emergency rooms around the country. ERs are often the only choice for patients who don’t have access to walk-in clinics or primary care physicians, but under the new health law, more may be turning to emergent care providers. This may seem counter-intuitive – shouldn’t more people with insurance mean shorter wait times? Here’s why 32 million more people with health insurance will mean longer lines instead, as explained by AP medical Writer Carla K. Johnson:

-There’s already a shortage of front-line family physicians in some places and experts think that will get worse.

-People without insurance aren’t the ones filling up the nation’s emergency rooms. Far from it. The uninsured are no more likely to use ERs than people with private insurance, perhaps because they’re wary of huge bills.

-The biggest users of emergency rooms by far are Medicaid recipients. And the new health insurance law will increase their ranks by about 16 million. Medicaid is the state and federal program for low-income families and the disabled. And many family doctors limit the number of Medicaid patients they take because of low government reimbursements.

-ERs are already crowded and hospitals are just now finding solutions.

What do hospitals say about this likelihood? Well, Dr. Arthur L. Kellerman, a researcher with Rand Corp explains it thusly, “More people will have coverage and will be less afraid to go to the emergency department if they’re sick or hurt and have nowhere else to go…. We just don’t have other places in the system for these folks to go.”

What does this mean to you? If you are insured, start looking for a family practitioner, general practitioner or primary care physician now, before you actually NEED an appointment; most offices will squeeze in regular patients. Also, see if your insurance covers wellness care, which helps you use preventative measures to stay healthy, minimizing the likelihood of using an emergency room at all.

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Five Bizarre Things People Insure

July 1st, 2010 by Iris | Comments Off | Filed in insurance facts, insurance news

It’s a new month, so we’re taking a break from talking about BP and healthcare and instead offering a lighter topic. We’ve all heard of insuring homes, cars, and boats, but what really odd things do people insure? Here are five:

  1. Specific Body Parts: We’ve all heard of concert pianists insuring their hands, but last December, pop singer Adam Lambert supposedly took out a $1,000,000 policy on his crotch, because the pelvic thrusts he does so often during his concerts can apparently lead to lower back issues and penile arthritis. (We suspect it might have been less expensive to hire a different choreographer.)
  2. Abuse by Ghosts: While bed and breakfasts here in the states – in cities like Charleston and New Orleans – advertise their ghosts, the Royal Falcon Hotel insures against them. Their policy (which smacks of a publicity stunt) protects employees and guests from improper poltergeists.
  3. Hunting Trophies: According to AXA Art, those of you who are big game hunters can actually insure the stuffed lions, tigers, and bears (oh, my) you’ve been collecting, in case they’re damaged or destroyed. Presumably you can also itemize them on your homeowners policy, as well, in case of something mundane, like theft.
  4. Wedding Insurance: Okay, we understand the concept of “Bridezilla,” but rather than insuring your wedding (sorry, it doesn’t find you a new groom if he backs out; it just covers any deposits and such), maybe you should consider having a back-up plan. Or save money, and elope.
  5. Alien Abduction: Apparently about 20,000 of your co-earthlings have taken out insurance policies in case they’re ever abducted by aliens. This might be wise – after all, flying saucers probably don’t have liability insurance – but we suspect it would be smarter to skip the insurance and invest in lots of aluminum foil. Less expensive anyway.

This list was fun, and all of these policies really exist, as well as many others. You can pretty much assume that if someone thought of it, someone else insured it.

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