Capitol to Courthouse Headliners: Wednesday, September 17

Sep 17, 2008

To view a complete story, click on a headline below:

Commissioner McCarty Promises Intervention if AIG Unable to Pay Claims

Florida Insurance Commissioner Kevin McCarty issued a statement today, September 17, 2008, assuring that, if it should become necessary, the Florida Office of Insurance Regulation will intervene immediately if it becomes evident that any of the 46 AIG subsidiary companies operating in Florida is unable to pay its claims.

State insurance officials from Pennsylvania and New York, where troubled American International Group’s insurance subsidiaries have a an estimated $120 billion in assets, are offering to assist AIG in raising much-needed cash by swapping its insurance subsidiaries’ liquid assets for those that are difficult to convert into cash held by the parent company.

Fla. officials eye Wall Street-related financial losses

Hours after Chief Financial Officer Alex Sink assured Gov. Charlie Crist and fellow Cabinet members on Tuesday that the state treasury can weather the Wall Street crisis, the Federal Reserve reversed course and pledged an $85 billion, late-night bailout and takeover of insurance giant AIG. Today, Sink is expected to take Wall Street to task when she jumps into the presidential election fray.

‘1 cracked egg’

Wall Street’s latest financial crisis will likely cost Florida taxpayers millions of dollars, but the state’s $24 billion in treasury investments are so diversified, there’s no reason to panic, Chief Financial Officer Alex Sink said Tuesday. ‘It’s like putting 200 eggs in one basket and having only one cracked egg,’ Sink told Gov. Charlie Crist and fellow Cabinet members at a morning meeting.

Fla. loosens rules on backup storm insurance

Florida loosened its rules on the sale of backup hurricane insurance by foreign companies Tuesday in hopes of eventually lowering premium rates for consumers, even though that’s unlikely in the short term.

Florida’s Citizens Property Insurance Corp. Seeks Suggestions

Florida-backed Citizens Property Insurance Corp. will host a series of policyholder forums in Miami-Dade, Broward and Palm Beach Counties from Sept. 23-25.

Insurance companies discuss hurricanes

Hurricanes won’t go away but insurance companies that shoulder risk for the damage they can cause wondered Tuesday how they’ll weather an ongoing storm.

EDITORIAL: Save the Flood Insurance Program

The National Flood Insurance Program, which protects millions of Florida property owners from one of the threats from hurricanes, will expire Sept. 30, unless it is reauthorized by Congress in a bill acceptable to President Bush.

FEMA officials go door-to-door in St. Lucie County to urge Fay victims to register for aid

The Federal Emergency Management Agency has been going door-to-door here and in Okeechobee County urging homeowners to register for federal aid.

FEMA to determine if Gadsden Co. homeowners qualify for assistance

Workers will be in Gadsden County today to determine if homeowners affected by Tropical Storm Fay qualify for federal assistance to fix their homes.

Orlando summit to focus on healthcare reform

A healthcare summit to be held in Orlando this week hopes to find solutions to reform the industry.

An ambitious attempt to find a middle ground for healthcare reform opens Wednesday evening in Orlando, organized by two groups of Washington insiders, one conservative, the other liberal.

Lehman Bros. large stakeholder in S. Fla. real estate

The bankruptcy of Lehman Bros. Holdings (NYSE: LEH) is sending shockwaves through South Florida real estate circles.

Bad mortgage brokers ran wild, Florida admits

A state probe, prompted by a Miami Herald investigation, says the state did not protect people against crooked mortgage brokerages.

In a stinging critique of the state’s oversight of the mortgage industry, top Florida investigators found that state regulators failed to alert police agencies to crooked mortgage brokerages, ignored citizen complaints and allowed hundreds of people with criminal histories to peddle loans.

Florida told to get tough on home loan industry

State legislators should broaden regulation of Florida’s home loan industry, according to an investigation detailing the state’s failure to police the mortgage industry during the boom years.

Florida gets $5.5M for food-stamp accuracy

The U.S. Department of Agriculture gave Florida a check for $5.5 million Tuesday, a bonus for improved payment accuracy in issuing food stamp benefits.

State continues probe into gas-price gouging

Florida officials Tuesday kept up efforts to calm concerns about the availability and price of fuel while seeking detailed information about possible price gouging.

Watchdog says Fla. not ready for Nov. 4

Several contested states, including Florida, are not ready for the 2008 elections, according to a report released Tuesday.

Rep. Boyd’s son accused of smuggling illegal immigrants

The son of U.S. Rep. Allen Boyd, a Panhandle Democrat, is facing federal charges of smuggling illegal immigrants after being stopped by Border Patrol agents in Arizona.

House votes for offshore drilling, except off Florida

Despite bitter objections that it didn’t go nearly far enough, the House voted Tuesday to allow oil and gas drilling closer to the nation’s shores, except along Florida’s west coast.

Crist halts plan for Orlando beltway, saying cost is too high

Gov. Charlie Crist and the Florida Cabinet on Tuesday nixed a deal to buy land crucial to construction of a beltway around Orlando, arguing the price is high.

Violent crime down nationwide, up in Florida, FBI says

The FBI says violent crime is on the downswing.

Figures released Monday show that violent crime dipped slightly nationwide in 2007. That ended two years of increases in slayings, robberies and other kinds of the worst crime in U.S. cities.

EDITORIAL: Floridians shouldn’t pay nuclear bills

Electricity rate-payers in Flagler and Volusia counties, along with rate-payers across Florida, are in for a surprise. They’re about to discover how state lawmakers and power companies, with federal help, are crafting a system that puts nuclear power at the forefront of Florida’s new-energy initiatives, rate-payers and taxpayers at the forefront of the financial investment necessary to build new plants, and government regulators such as the Public Service Commission somewhere in the background, dusting rubber-stamps.

IIBH Says Hurricane Ike Punctuates Need For Roof Standards

Newer homes and commercial buildings constructed to modern standards fared better in Hurricane Ike than older structures, but roof design still needs improvement, according to an insurance-backed research institute.

Insurance Consumers Protected by Solvency Standards

Regulatory Safeguards Offer ‘Insurance Policy’ in Times of Crisis

National Association of Insurance Commissioners (NAIC) President and Kansas Insurance Commissioner Sandy Praeger today issued the following statement in response to the financial issues facing American International Group (AIG):

Dinallo To Lead NAIC Task Force On AIG Asset Sales

New York Insurance Superintendent Eric Dinallo will oversee a National Association of Insurance Commissioners task force created to expedite the approval of sales of American International Group assets.

CEJ Criticizes NAIC’s Lack Of Transparency

The Center for Economic Justice (CEJ) has written a letter accusing the National Association of Insurance Commissioners (NAIC) of fostering a culture of lack of transparency and accountability to the public.

Louisiana Commissioner: Citizens Can Handle Gustav and Ike

Commissioner Jim Donelon said the Louisiana Citizens Property Insurance Corp. has received 26,000 Gustav claims so far and the company estimates the storm will cost it $150 million – an amount Donelon said Citizens can handle with the cash it has on hand.

To unsubscribe from this newsletter, please send an e-mail to ccochran@cftlaw.com