According to the White campaign, the average homeowner in Texas pays approximately $626 more for household coverage than his counterparts in other states. The National Association of Insurance Commissioners places the average rate for Texas homes at $1,448 — second only to Florida.

White has come out in support of a regulatory plan that would require prior approval of homeowners premiums. Legislation was passed in Texas in 2003 that lets insurers in the state file and use rates in the homeowners market, but no prior approval is required. Insurance regulators can, after the fact, deny a rate filing that they find to be excessive, but that practice, according to White, has not been sufficient to protect Texans.

In his campaign materials White said, “Homeowner’s insurance rates are squeezing the savings of Texas families. As governor, I’d require homeowners insurance companies to prove why any rate increase is needed before I’d permit it. Under Perry, if they want your money they can have it. I’d put a stop to that. This is a common sense approach that’s worked in states all over the country. Perry said he’d fix homeowner’s insurance costs in 2002. It’s been eight years, and he hasn’t.”

Most Texans, saddled with high bills, would agree, but, not surprisingly, the insurance industry does not support White’s position, saying a return to rate regulation would squelch competition and give insurers no incentive to offer the best price. With rates second only to Florida, a state notorious for its insurance laws and scandals, Texas insurers seem to be doing just fine with setting the best homeowners price — the best price for their profit margin.

According to White’s figures, homeowners insurance in the Lone Star state is up 50% since Perry took office. While Perry is favored overall in the gubernatorial race, this problem won’t go away when the race is over and Texans are sill in a crunch, looking for better homeowners premiums — especially in these tough economic times.

TWIA is the state’s “last resort” insurance company, providing wind and hail coverage in 14 of the Lone Star State’s coastal counties, as well as part of Harris county. The TWIA wind and hail coverage is for property owners whose primary insurance excludes such coverage.

As required by Texas Insurance Code, TWIA is obligated to make their annual rate filing with the state Department of Insurance by August 15th of each year. While actuarial data recommended increases of 27 percent and 36 percent for residential and commercial properties, respectively, the group’s board opted to file only for a five percent increase instead.

Jerry Hagins, speaking on behalf of the Department of Insurance, said that it’s too early to say whether or not the insurance commissioner will approve or disapprove the rate increase request, but the commissioner’s approval is not actually required, since only increases that are greater than five percent need commissioner approval within 60 days. Filings of five percent or less, like this one, don’t have to be approved, though the commissioner does have 30 days to disapprove of it.

If the commissioner does not disapprove, the rate increase will take effect automatically.

Source: Insurance Journal

In a statement, the vice president of I.I.I., Loretta Worters, said, “The rise in dog bite claims over the last seven years (2003-2009) can be attributed to increased medical costs as well as the size of settlements, judgments and jury awards given to plaintiffs, which have risen well above the rate of inflation in recent years.”

The Centers for Disease Control and Prevention estimate that every year, 4.7 million people in the U.S. are bitten by dogs; 16 fatally. About half of those bitten are children who will require medical care. About 50% of the total number of bites take place on the dog owner’s property — that last bit alone is a source of major concern to insurers.

Dog bite laws vary from state to state. In some, the owner is automatically held liable, while others give the animal a pass on the first incident with liability and a label of “vicious propensity” attached to second occurrences. There are also laws pertaining to potential negligence on the owner’s part in controlling the dog.

Although you know your pet’s personality, the best course of action, especially in large group settings, like a social gathering or party, is to keep the dog away from your guests — especially children. A single dog bite claim will raise your homeowners premiums unless you get rid of the animal, which few families are willing to do. Don’t try to predict your dog’s emotional reaction to any person or any siltation. Err on the side of caution for both your sakes.

The original forecast predicted 14-23 named tropical storms during this hurricane season. Those numbers have been revised to a range of 14-20. The Atlantic hurricane season began on June 1st, and runs through November 30th, but the peak period is in high summer and early fall: August through October, during which eight to twelve storms could develop into hurricanes, four-to-six of which could evolve into “major storms” with winds in excess of 111 mph.

Jane Lubchenco said in a statement to the press, “August heralds the start of the most active phase of the Atlantic hurricane season and with the meteorological factors in place, now is the time for everyone living in hurricane prone areas to be prepared.”

Historically during active storm seasons, multiple hurricane strikes are much more likely for both the Gulf Coast and the East Coast in the U.S., but the Caribbean also sees a marked increase in the number and severity of storms during active seasons. This could mean bad news for Haiti, where there are roughly 1.6 million people still living under tarps and in tents, seven months after a disastrous earthquake crumbled its capital.

So far this season, three named storms have developed. Hurricane Alex made landfall in northern Mexico on June 30th, and tropical storm Bonnie caused some trouble for oil company crews working in the Gulf of Mexico in July. Last Thursday, tropical storm Colin regenerated, with winds of 45 mph over the open Atlantic, according to the National Hurricane Center in Miami, FL. A tropical storm warning was issued for Bermuda.

According to Gerry Bell, lead seasonal hurricane forecaster at NOAA’s Climate Prediction Center in Washington, the May outlook, which called for eight to 14 hurricanes, with possibly three to seven major hurricanes, reflected a more active early summer than we actually had. Bell also said that the update is based on indications that a high-activity era which began in 1995 is continuing.

“The atmospheric and oceanic conditions now in place are very conducive to hurricane formation, as we had predicted in May,” he said.

A Pacific Ocean phenomenon called La Nina developed in July, reducing wind shear in the Atlantic and making it easier for storms to take shape. As well, ocean temperatures are exceptionally high, and the warmest since 2005 when Hurricanes Katrina and Rita tore apart the very part of the Gulf of Mexico now dealing with BP’s oil spill. According to Bell, during above-normal seasons it’s typical for three named storms to spin into the Gulf between August and November. A storm’s individual strength and its path across the water would determine whether there would be any impact on remaining oil from the explosion last April.

Tropical storms are named when sustained wind speeds reach 39 mph (62 kph). They become hurricanes when sustained winds reach 74 mph (119 kph). Major hurricanes blow at 111 mph (178 kph) or more. The strongest hurricanes are labeled Category 5, with winds greater than 155 mph (250 kph).

Last week, researchers from Colorado State University researchers said they also expected this year’s season to be more active than average, forecasting 10 hurricanes, five of them major.

Hurricane season ends Nov. 30.

In the press release, Jill C. Malmstadt, one of the authors of “Risk of Strong Hurricane Winds to Florida Cities” (November 2009, Journal of Applied Meteorology and Climatology), said, “Not unexpectedly, we found that the extreme wind risk from hurricanes varies across the state. Areas in the northeast, such as Jacksonville and in the Big Bend between Tampa and Tallahassee, have longer periods between occurrences of a given strong wind speed compared to areas such as Miami and Pensacola. That’s also where we found the highest annual threats of a catastrophic hurricane event.”

The researchers concluded that every 12 years on average Miami will experience winds of 112 mph or stronger, the equivalent of a Category 3 hurricane. The last time winds of that magnitude hit the city was Hurricane Wilma in 2005, so, by this study, the 2017 hurricane season will be a severe one for residents. Folks in Tallahassee, on the other hand, the least vulnerable locale in Florida, get winds of that velocity once every 500 years. Is it difficult to figure out how that’s going to effect insurance rates when plugged into existing risk calculations?

While the knee jerk response of most insurance customers is to react negatively to increased rates based on “perceived” risk, proven risk might make the medicine go down a little more easily. Of course, the model will have to be in use over a period of time before it gains acceptance in either meteorological or insurance circles, but to a large extent the basis of fair rates is better science. Customers have complained for years that risk assessment for insurance is a highly subjective and often influenced by prejudice and stereotype. Bottom line: better tools, better, more verifiable rates — especially in an area as prone to storm damage as Florida.

The Journal cited a recent QU (questionable claims) report released by the National Insurance Crime Bureau, which examined six categories of referral reasons for claims: property, casualty, commercial, workers’ compensation, vehicle, and miscellaneous. Overall QCs increased by 14% in four of those categories in 2010, as opposed to 2009. These are claims which are referred to the bureau by member insurance companies that feel closer examination and examination is necessary because of indicators of possible fraud. A single claim can contain up to seven referral reasons.

This year saw a 107% increase in questionable hail damage claims and a 527% increase in questionable auto glass claims. Specifically, the bureau’s report notes: “Hail loss claims and QCs are generally concentrated in the central section of the U.S. However, seven of the top 10 states with the highest hail loss QC-to-claim ratio are not in the central section. This suggests that fraudulent hail losses can occur in any part of the country.”

Joe Wehrle, NICB’s president and CEO adds, “While there have been modest declines within a few categories of referrals, the 14 percent increase in the overall number of questionable claims for 2010 raises concerns.”

According to Wehrle, NICB, along with member insurers and law enforcement agencies have pursued unscrupulous roofing companies that take advantage of storms to fake or deliberately cause damage to roofs in an effort to get insurers to pay for a replacement roof that wasn’t damaged by a storm. Also under pressure from law enforcement, insurance companies and the NICB are staged accident rings, which are found in various regions including Tampa, FL, where this has become a major problem.

“We’re seeing concern from our members about criminal rings that are deliberately damaging vehicle windshields in order to file an insurance claim, and in some cases are not doing satisfactory repairs or replacements,” Wehrle said.

NICB is supported by nearly 1,100 property and casualty insurance companies and self-insured organizations.

In Brandon, owners of pit bulls have two months to obtain necessary permits, and will be required to have liability insurance and special pens for the dogs. Flowood residents, on the other hand, have only one month to obtain their permits.

The local paper, the Clarion Ledger is reporting that leaders in both cities were unanimous in their adoption of regulations of pit bull dogs and similar breeds last week.

Under the new regulations, pit bull owners must have a pen of at least 100 square feet, with a roof, a concrete floor, and a chain link fence at least six feet tall. Those residing in Brandon must have their pens in a fenced back yard. In addition, owners must have at least $100,000 of liability insurance.

Violators of the new regulations can be fined up to $1,000 and jailed for up to three months.

The paint manufacturers argued that they were due reimbursement because in 2008 the state Supreme Court had ruled in their favor, reversing a landmark verdict that may have cost them billions of dollars.

On Friday, a notice of appeal by the three companies that had won the original case, Millennium Holdings LLC, NL Industries Inc., and Sherwin-Williams Co. Three other companies that had been sued for the same infraction – selling lead based paint – but never went to trial, joined in the appeal.

Charles Moellenberg, the lawyer for Sherwin-Williams, said that Rhode Island rules allow winning sides of a lawsuit to recover costs, and that there should be no difference with this case.