Archive for February, 2011

Tornado Drills in Virginia

February 8th, 2011 by Iris | Comments Off | Filed in tornado insurance

Emergency management officials in Virginia are planning to hold a tornado drill across the state.

A joint effort between the National Weather Service and the Virginia Department of Emergency Management, the drill is scheduled for March 15, 2011 at 9:45 AM EST.

Representatives of the emergency management department feel that it is vital that citizens know what to do if a tornado warning is issued in their area. 62 tornadoes, they say, have struck Virginia in the last three years, causing nearly $48 million in damage and injuring more than 220 people.

Registration for the statewide drill and instructions for conducting a tornado drill of your own are available online, and the Department of Emergency Management website. Roughly half a million Virginians have already signed up.

Knowing what to do in a tornado is at least as important as knowing whether your homeowners insurance policy includes tornado coverage.

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Mercury General Leaving Florida

February 7th, 2011 by Iris | Comments Off | Filed in homeowners insurance

Mercury General has announced that it is beginning the process of leaving the Florida homeowners insurance market, citing it’s $19 million in losses in the fourth quarter of 2010 as the driving factor.

According to the company, it will be sending the mandatory 180-day advanced notice of it’s “intent not to renew” policies for 8,000 Florida homeowners beginning in March. By the second half of 2012, it expects to be fully withdrawn from the “Sunshine State.”

Spokespeople for Mercury General say that the $19 million loss includes $6 million in reserves set aside for future claims. The company blames many of the losses on sinkholes, which state officials and other insurance companies have also referred to as a major source of insurance costs in Florida.

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Friday FilmStrips: ECW Health Plan Ad

February 4th, 2011 by Iris | Comments Off | Filed in friday filmstrips, health insurance

We didn’t think we’d find a super bowl-themed health insurance ad for this week’s Friday Filmstrip, but we sort of did, in this ad from ECW Health Plans. We think it’s hilarious. Enjoy.

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February Winter Storm Losses May Be As Much as $1.4 Billion

February 3rd, 2011 by Iris | Comments Off | Filed in homeowners insurance

It’s no surprise that much of the United States has been blanketed by snow this week. Even Texas was iced in most of the week, and suffering from severe power emergencies. What may be surprising, though, especially if you live in a state where a bit of snow is relatively normal, is that insurance companies are estimating the losses they’ll be paying out at somewhere between $790 million and $1.4 billion, for commercial, industrial, and residential customers, and for auto insurance customers as well.

AIR Worldwide, a catastrophe modeling company, has estimated that the storm on February 1st and 2nd – one of the largest since the 1950s – affected almost 100 million people in 30 states, and covered an area from Texas to Canada, bringing with it high winds, sub-zero wind chills, freezing rain, ice, and, in some regions, more than a foot and a half of snow. In some places, seasonal records were broken in the storm, as well. Newark, NJ, for example, averages 25 inches of snow, but now has 62 inches, and there 56 inches fell on Central Park in New York, which averages 22.

In Illinois, Indiana, Missouri and Oklahoma, states of emergency were declared and the National Guard had to be called to help rescue motorists who got stranded. The state of Oklahoma has been declared a federal disaster area. It and Illinois were the two states that got hit the hardest.

Because of the accumulated rain, sleet, and freezing rain, there have been many roofs failing after rain-saturated snow was also added to the mix. In and around Boston, MA, more than seventy reports of roof collapses were logged, though most were commercial structures with flat roofs.

Dr. Tim Doggett, the principal scientist at the Boston-based AIR Worldwide explained, “While cleanup from the storm is underway, drifting is likely to continue to occur as a result of high winds, and there is still a potential for additional roof collapses. This is particularly true for light metal, long-span roofs such as on hangars or warehouses. Engineered structures must conform to high load tolerances and damage to these structures is therefore expected to be minimal. But the roofs of marginally engineered structures can collapse under large accumulations of snow, particularly if their roofs have not been well-maintained.”

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Rate Watch: State Farm Requests 27.7% Rate Hike in Florida

February 2nd, 2011 by Iris | Comments Off | Filed in homeowners insurance, rate watch

The Florida Office of Insurance Regulation will be holding a public hearing on February 15th. Why? To discuss the latest rate filing from State Farm, which company is requesting an average increase of 27.7 percent statewide in homeowners insurance rates. The reason, they say, is to offset the rising costs of sinkhole claims. The request is coming just as the Florida legislature is attempting to negotiate how to address the cost of sinkholes, as it prepares for its new legislative season beginning on March 8th.

Chris Neal, a spokesperson for State Farm said that the increase in the insurance company’s non-catastrophe losses, which have increased by 94 percent over the last three years, is one of the key factors that led to the rate request. He said that the vast majority of that increase is because of sinkhole losses. In 2007, for example, the carrier paid out $47 million in sinkhole claims while they paid out more than $119 million in similar claims in just the first three quarters of 2010.

Neal said, “The way things are going we may have to consider sinkholes a catastrophic loss.”

This rate filing is merely the most recent move in a dance that the State of Florida has been doing with State Farm for several years, after a deal was reached to keep the insurer in the state. Two years ago, State Farm threatened to leave Florida entirely, after its request for a 47% increase was rejected. At that time, rather than letting 800,000 policyholders get “dumped,” the state regulators agreed to a deal allowing the insurer to drop 125,000 customers, reduce or eliminate certain discounts, and increase rates by 14.8 percent.

That agreement, said Neal, helped State Farm stabilize its finances. “It gave us some rate relief and allowed us a way to manage our expenses that was critical at the time,” he said.

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Arkansas House Votes Down Anti-Health Care Reform Bill

February 1st, 2011 by Iris | Comments Off | Filed in health care reform, health insurance

Last week in Arkansas, one legislative committee blocked an attempt to reject a key portion of the federal heath care reform law.

The Arkansas House Public Health, Welfare and Labor Committee voted down a proposal that would ban any law requiring residents of that state to purchase health insurance. In a 12-7 vote against the proposal, which had originally be submitted by Representative David Meeks (R – Conway), five republicans and two of fifteen Democrate (Representative Jeff Wardlaw (Warren) and Representative Sheila Lampkin (Monticello) who favored the bill. The committee chair, Representative Linda Tyler (D – Conway) did not cast a vote.

After the vote, Representative Meeks told the press, “I really thought that the members of the committee would vote to protect the citizens of Arkansas from the federal government.” Instead, he said, “…they decided to really ignore what the citizens of Arkansas wanted to do.”

Meeks’ proposal was brought into the Arkansas Legislature not even a week after Congressional Republicans cast a mostly-symbolic vote to repeal the federal health care overhaul laws that they refer to with derision as “Obamacare.” It is generally assumed that the federal attempt will die a similar death when it reaches the Democratic-controlled Senate floor, and widely known that President Obama will veto it should it arrive on his desk.

In Little Rock, Arkansas, many legal authorities and health care experts, including the state surgeon general, spoke against the bill.

Bo Ryall, president of the Arkansas Hospital Association, told reporters, “Health care is not something that you can just opt out of. Health care is not a consumer good like a car or cell phone. You can choose not to buy a car, but eventually you’re all going to need health care, whether you choose it or not.”

As well, Assistant Attorney General Jean Block observed that, had it passed, Meeks’ bill would have practically guaranteed a lawsuit against the state.

“The passage of HB1053 would not be in the state’s best legal interest,” she said. “We believe this is a federal issue to be decided in the federal courts using federal – not state – dollars.” She added, however, that had the bill become law Attorney General Dustin McDaniel would have defended it.

Also sharing an opinion was Glenn Galls, a member of the “Tea Party,” who said that fear of lawsuits shouldn’t prevent the state from doing the right thing. Gallas told reporters, “The arguments I hear are based on whether or not we go to court. We should base our decision on what is right or what is wrong.”

Chase Dugger, executive director of the Republican Party of Arkansas also weighed in, claiming that the Democrats who voted against Meeks’ bill were oppressors of Arkansan’s liberty. “Working Arkansans deserve the freedom to choose whether or not they wish to purchase health insurance,” he said in a statement to the press.

Meeks said that he will explore next moves on health care legislation, including bringing a similar proposal back to the House floor as a resolution rather than a bill.

But fellow lawmakers have already deemed the failed bill a symbolic gesture, and, they say, a resolution – something generally reserved for commemorating special events – would accomplish nothing more than sending a message.

“We will look at all the options that we have on the table,” Meeks said. “There’s a possibility we could do it as a resolution. There’s a possibility we could do it as an interim study. There’s a possibility we could actually bring it back to committee.”

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