Archive for the ‘insurance specialists’ Category

Florida Says Latest $25 million from BP Not Enough

June 11th, 2010 by Iris | Comments Off | Filed in insurance news, insurance specialists, world events

The state of Florida, the Insurance Journal reports, is unhappy with BP. Again. The troubled oil company brought $25 million more to Florida on Tuesday, but the reaction was not gratitude, but criticism.

Florida Governor Charlie Crist and three independently elected Cabinet members asked for more money from BP, and demanded it swiftly in order to help residents of their state recover business losses caused by the Gulf of Mexico oil spill which has been rapidly encroaching upon the Sunshine State’s coastline. The informed Bob Fryar, BP senior vice president, that time is of the essence, because thousands of local businesses are on the brink of failure.

Chief Financial Officer Alex Sink told Fryar, “I don’t think speed is in your vocabulary yet. People are just trying to survive.”

Governor Crist, who is seeking a U.S. Senate seat as an independent, asked BP for more of everything: booms and skimmers to clean up slicks and sheen, money for cleanup, money for advertising, and claims offices in every coastal county in his state. “We demand it,” he said. “You’re a company with enormous resources.”

The most recent $25 million infusion from BP was targeted toward Florida’s costs of responding to the spill, and brings the total monies the state has already received from the company to $75 million. Before Tuesday’s meeting, Florida had already requested another $125 million.

Fryar, a petroleum engineer with 25 years of tenure at the London-based BP responded, saying, “We’re trying to make sure people with legitimate claims will be paid quickly. BP will pay all legitimate claims.”
He also said that BP had paid 18,500 of the 38,000 claims received to date.

The spill from the Deepwater Horizon explosion nearly two months ago in the Gulf of Mexico has threatened the tourism, fishing and hospitality industries in Florida. Tar balls washing ashore in the extreme western Florida Panhandle are also causing tourists to be dubious about the state as a wise choice of vacation destination this year.

Both Sink and Crist urged Fryar to have BP officials visit businesses hurt by the expanding spill.

“It’s no fun watching grown men cry,” Sink said. “That’s what I’ve seen.”

Attorney General Bill McCollum, who, like Sink, is hoping to succeed Crist as Florida’s governor in November, had very few positive remarks about BP’s handling of the crisis. “I don’t think you’ve done enough,” McCollum chastised the oil company. “There’s got to be more that you can be doing.”

Tags: , ,

Pet Insurance Reform?

June 2nd, 2010 by Iris | Comments Off | Filed in insurance news, insurance specialists

Pet lovers will be pleased to hear about a new bill that just passed the California State Assembly.

According to the Insurance Journal, the bill, which was sponsored by Dave Jones (D-Sacramento), would require pet health insurers to disclose – on the main pages of their websites – any policy that limits coverage. In addition, insurers would also have to state explicitly whether they deny coverage based on pre-existing conditions.

Originally, the bill was written with a provision prohibiting pet insurers from denying coverage to animals with pre-existing conditions, but it was subsequently removed.

AB2411 passed the Assembly on a 43-16 vote and now moves to the Senate.

Tags: ,

Temp Agency Exec Charged with Insurance Flood

May 19th, 2010 by Iris | Comments Off | Filed in insurance specialists

One of the top executives of a temporary employment agency has been accused of scamming the New York State insurance Fund out of $25 million in workers’ compensation insurance premiums.

On Monday, Eric Goldstein pleaded not guilty to charges which included insurance fraud.

Prosecutors in Manhattan say Goldstein’s company, GT Systems, ran fifty temporary employment agencies. They also said that Goldstein had skipped out on the insurance premiums due to the state fund for years, while having employees make fake insurance certificates.

Goldstein, age 61, is also accused of under-reporting his payroll and mis-classifying his employees’ occupations, in order to reduce the workers’ compensation insurance rates he was charged.

Gerald Shargel, attorney for the defense, says that his client plans to fight the charges.

When representatives of the press attempted to contact GT Systems or its successor companies, calls were not returned.

Tags: ,

Missouri: Lions and Tigers and Bears – and Fees!

May 17th, 2010 by Iris | Comments Off | Filed in insurance news, insurance specialists

Lawmakers in the state of Missouri have approved new regulations, including the imposition of fees and an insurance requirement, for people who raise wild animals such as lions, tigers, and bears.

Legislation sent to the governor will require a permit – which could cost up to $2,500 – for any resident of the “Show Me” State who possesses, breeds, or transports large carnivores. This permit requirement will go into effect in 2012.

In addition, the same group of people will be required to carry at least $250,000 of liability insurance.

Another section of the same bill raises by ten times the fees charged to companies selling pesticides in Missouri. Supporters of that increase say it could generate $1.6 million which would go to the state’s Agriculture Department, and bring the state’s fees in line with those charged by neighboring states.

The agriculture bill is SB795.

Tags: ,

Hurricane Scale Revamped for 2010

May 14th, 2010 by Iris | Comments Off | Filed in insurance specialists

The commonly-recognized five-category rating system that describes the strength of a hurricane, and estimates the havoc its winds could cause has been updated for the 2010 storm season, which begins in the Atlantic on June 1.

The system, more properly known as the Saffir-Simpson Hurricane Wind Scale no longer includes estimates for storm surge or inland flooding due to rainfall. The scale was changed in order to ease confusion over storm surge and flooding predictions that didn’t match real-life situations, said Chris Landsea, science operations officer at the National Hurricane Center, and leader of the team that made the change.

The new scale still classifies hurricanes by their maximum sustained wind speeds beginning with Category 1 (74 mph), and ascending to Category 5 (155 mph or greater). Any storm rated at Category 3 or above is considered a major hurricane.

More importantly, the scale also tells people how strong a storm it will take in order to knock down fences, trees, power lines, or even entire buildings. The damage descriptions to homes, shopping centers and industrial buildings have been updated as well, reflecting a greater amount of coastal development.

Landsea explained, “In coastal areas of Florida, there are a lot more high-rises where the windows are susceptible to damage. That broken glass wasn’t covered at all in the old one.”

According to a report in The Insurance Journal:

In a Category 1 hurricane, shingle or metal roof coverings could peel off mobile homes, stone chimneys can topple and large tree branches will snap.
By Category 3, most mobile homes, fences and unprotected windows face certain destruction, and people should expect to go without electricity or running water for days after the storm passes.
A Category 4 storm will cause severe structural damage even to well-built homes.
Category 5 damage is catastrophic: total roof failure, blown-out windows throughout high-rises, neighborhoods isolated by fallen trees and power poles, water shortages and other widespread suffering.

In Florida and the Carolinas, however, the damage described may be less severe, because those states have the best building codes in the country, according to Landsea.

The revised Saffir-Simpson scale eliminates references to flooding, storm surge, or the amount of seawater pushed by a hurricane’s winds, and, according to Florida’s state meteorologist Amy Godsey, this simplified version of the scale also shows that forecasters have a better understanding of how storm surge works. She said the problem with the previous version of the scale was that it was extremely inconsistent with regard to storm surge.

2004’s Hurricane Charley, for example, made landfall in southwestern Florida with Category 4 winds, but brought the storm surge of a much weaker storm. 2008’s Hurricane Ike, however, made landfall just outside Galveston, Texas as a Category 2 storm, but brought a storm surge of 15 to 20 feet – a range generally associated with old-scale Category 4 or 5 storms.

Landsea said that if Ike had made landfall in Daytona Beach, Florida, its storm surge would have been only around eight feet, because the deep offshore waters of the Atlantic coast produce smaller surges than the shallower Gulf of Mexico.

Explained Landsea, “It’s like the difference between having a plate full of water and a bowl full of water. Put a fan next to them, and the water will be pushed off the plate, but the water will just swirl around in the bowl.”

Landsea says the number of variables in a storm – the size, and speed, the depth of water along the coast, and the topography of the place where it makes landfall – all combine to make the development of a separate storm surge scale impractical.

Instead, storm surge and flooding forecasts will remain in hurricane advisories and statements issued by the National Hurricane Center and local National Weather Service offices. In addition, the hurricane center is considering adding storm surge warnings to its existing list of watches and warnings. Sometimes, places outside the cone of a hurricane warning can still be vulnerable to storm surge, said Bill Read, hurricane center director. No decision on such warnings will be made for another two or three years.

The revision to the Saffir-Simpson scale took more than a year. Five wind engineers submitted updated descriptions of wind damage, and a draft was released for public comment last year, making this the first update to the scale since the removal of barometric pressure readings about ten years ago, said Landsea. Storms intensify as pressure drops, so those readings once helped forecasters assign a Saffir-Simpson category.

“Back in the ’70s it was easy to measure the pressure but difficult to measure the winds. Nowadays we have much better aircraft that fly into the winds and can measure them,” Landsea said.

Herbert Saffir, a Miami-area structural engineer, created a scale for the damage an approaching hurricane could bring, in 1969. The five-category scale was subsequently expanded to include storm surge and flooding in the early 1970s by Robert Simpson, then director of the hurricane center.

Before the Saffir-Simpson scale, hurricanes were simply described as major or minor.

Tags: ,

BP May Not Be Liable for ALL Oil Spill-related Costs

May 5th, 2010 by Iris | Comments Off | Filed in insurance news, insurance specialists

The Insurance Journal is reporting that there may be a federal law limiting the amount of money BP has to pay in damages, including lost wages and economic suffering, as a result of the recent Gulf Coast oil spill, despite President Obama’s assurances that taxpayers will not be liable.

A 1989 law, passed in response to the Exxon Valdez spill in Alaska, makes BP responsible for cleanup costs, but it also sets a $75 million limit on other kinds of damages. Gulf Coast economic losses are likely to far exceed that, and in an attempt to intervene, several Democratic senators have introduced legislation to increase the liability limit for such incidents to $10 billion, though it may not apply retroactively.

On Monday, White House press secretary Robert Gibbs said that the administration was committed to making BP pay for all costs associated with the spill, echoing a statement made by the President on Sunday, during a tour of the affected area. “Let me be clear: BP is responsible for this leak; BP will be paying the bill,” the President said.

According to Kenneth Baer, spokesman for the Office of Management and Budget, if BP were found to have violated federal laws, or was negligent with regard to the spill, the cap for damages under the Oil Pollution Act would no longer apply. He also said that the company could be held liable under other federal or state laws. “You can be sure that BP will be held accountable to the full extent of the law,” Baer said.

Even so, the existence of the liability cap could complicate the President’s plans to make BP pay for numerous costs like shortened fishing seasons and decreased tourism – costs that have not yet begun to be estimated, and could rise incredibly high.

Senator Robered Menendez (D-NJ), one of the sponsors of the cap-raising legislation, which the administration has said it supports, told the press, “We’re glad that the costs for the oil clean up will be covered, but that’s little consolation to the small businesses, fisheries and local governments that will be left to clean up the economic mess that somebody else caused.”

Also on Monday, BP issued a fact sheet, promising to pay, “…all necessary and appropriate cleanup costs…” as well as “…legitimate and objectively verifiable claims for other loss and damage caused by the spill…” Whether or not claims above $75 million would be paid was not addressed.

Tags: ,

End of an Era: St. Vincent’s Hospital Closes

April 30th, 2010 by Iris | Comments Off | Filed in health insurance, insurance news, insurance specialists

For 160 years, St Vincent’s hospital in New York City was a stalwart figure in the world of healthcare. Today, the Greenwich Village hospital closed its doors forever.

St. Vincent’s was founded in 1849, and served as the flagship of St. Vincent’s Catholic Medical Centers of New York, and recorded $502 million in total revenue last year. Despite that, it also posted a net operating loss of $107 million, according to bankruptcy filings. Roughly 47% of the patients served by the emergency room in 2009 were either uninsured, on Medicaid, or on Medicare.

The 511-bed hospital began to see trouble in 2000, when the corporate owners merged with several other hospitals and nursing homes, leading to a financial deterioration and eventually bankruptcy in 2005. There was a restructuring plan that included more than $1 billion in outstanding unsecured liabilities, but the system never righted itself, and without a buyer, another bankruptcy was filed and closing became inevitable.

During its 160 years of operation, St. Vincent’s saw outbreaks of cholera and AIDS and, as the only level-1 trauma center on the lower west side of Manhattan, also helped many, many patients in the aftermath of the 9/11 terrorist attacks.

Source: Modern Healthcare

Tags:

Americans will Work Longer to Keep Luxuries, Survey Says

April 28th, 2010 by Iris | Comments Off | Filed in insurance facts, insurance specialists, life insurance

MainStay Investments released a report recently which shows that more and more, American citizens are postponing retirement in order to maintain lifestyles which include little luxuries.

The company surveyed more than five hundred financial advisors – professionals who deal with everything from life insurance policies to general accounting – 61 percent of whom said that their clients are less concerned with retirement needs than they are with little luxuries like eating out, and being able to travel from time to time. These results point to a significant gap between fantasy and reality present in many American households. With the future of Social Security uncertain, health insurance premiums getting higher, and retirement funds still reeling from the economic crises of the last two years, MainStay feels that working families are wearing rose-colored glasses.

The general consensus is that there is a significant need for Americans to be better educated about the realities of retirement. According to various financial advisors, less than half of their clients truly comprehend the amount of money they need to save in order to retire in comfort. Further, they agree that there clients require guidance on the care and use of their nest eggs, in order to retire without wiping out their financial security.

Another point revealed by the survey was that more than half the clients of those advisors who participated have postponed their retirement, either because of stock market losses (46 percent) or health insurance and medical care costs (40 percent).

.

Tags: ,

Recycling and Insurance?

April 23rd, 2010 by Iris | Comments Off | Filed in insurance news, insurance specialists

Yesterday was the 40th anniversary of the Environmental Protection Agency and it’s Earth Day awareness program. We’re all familiar with the EPA’s “reduce, reuse, and recycle” slogan, but that phrase is much more than a mere tagline. The EPA wants it to be a way of life for people and businesses throughout the country.

In honor of the occasion, the Insurance Journal podcast hosted Nicole Croteau, vice president of Willis Programs, to speak about how the recyling industry, and it’s insurance program, have grown and developed over the years.

Enjoy.

Tags: , ,

California Workers Comp Rates Are Too Low

April 16th, 2010 by Iris | Comments Off | Filed in insurance news, insurance specialists, workers compensation insurance

The Workers Compensation Insurance Rating Bureau (WCIRB) of California has issued a report stating that written premiums for the year of 2009 are too low. Specifically, the gross written premium for last calendar year is about $8.9 billion, which is 17% lower than the reported numbers for 2008 and only 62% of the 2004 total.

This data was released in the organization’s “Summary of December 31, 2009 Insurer Experience,” in which WCIRB projected $6.9 billion in total accident year loses for 2009, or nine percent beneath the 2008 level. Further projections include an ulitamte accident year (AY) loss ratio of 75% for 2009, which is six percent higher than the estimated value for AY 2008, and the highest loss ratio since 2002.

The Bureau does has not yet compiled expense data for 2009, but it did say that the combined ratio is likely to be significantly higher than 2008’s 108%.

According to WCIRB, the average 2009 indemnity claim will cost about $58,000, which figure represents a 4% increase over 2008, after three years of 13%/year increases.

So what does this mean to Californians? Take a close look at your benefits packages – your company may have to pay more, and they may find a way to pass that payment on to you.

Tags: ,