Insurance Information Institute FPCA Florida Weekly Update: February 20-26

 

         

 

The Insurance Information Institute’s weekly Florida Update and “Insurance Daily” national newsletter are being forwarded to Florida Property and Casualty Association (“FPCA”) members as an additional benefit.  This week’s Florida update and today’s (March 1, 2010) national daily newsletter are reprinted below.

The FPCA, which has joined the Insurance Information Institute (“III”) as an Associate Member, will utilize this organization as a resource on insurance issues, such as fraud, attorneys’ fees, catastrophe-related initiatives and other pertinent substantive matters. 

Should you have any questions or comments, please contact Katie Webb (kwebb@cftlaw.com) at Colodny Fass.

 

Insurance Information Institute Bi-Weekly Florida-Specific Conference Call Scheduled for March 4 at 3:30 p.m.

The III hosts a bi-weekly Florida-specific conference call.  The next call has been scheduled for March 4 at 3:30 p.m. (EST).  Should you wish to particpate, the conference call dial-in and access code are provided below:

DIAL:             1-888-447-7153
CODE:             9812183

 

Insurance Information Institute

Florida Weekly Recap–February 20-26

• The South Florida Sun-Sentinel’s consumer reporter contacted the I.I.I. to see how Toyota’s recall would affect car insurance rates. The I.I.I. explained that the major recall is unlikely to cause a rate increase since rates are based on historical risk experienced by individual insurers. Click here for the column.
• Reinspections conducted so far of homes insured by Citizens Property Insurance Corp. reveal that more than two-thirds are getting higher mitigation discounts than they should. The Associated Press article on inequities in mitigation discounts in the Miami Herald also stated that about eight percent of homes inspected to date were not getting discounts that are warranted.
• o The South Florida Sun-Sentinel article on Citizens’ reinspections reports that the company will be able to charge an estimated $404,000 more in premiums. Citizens’ said that policyholders who owe more will be notified that they can make the mitigation changes needed to their homes to qualify for the lower premium before renewal. If they do not, their premiums will rise. Policyholders who qualify for more discounts than they are currently receiving will be credited for it starting from the day of the inspection.
• A Tampa-based company thinks it has come up with an Internet-based software program to help police and fire departments communicate with one another during a major catastrophe. The Internet system will augment radio communication. The Tampa Tribune reports that the Internet system for first responders will let emergency crews call one another, send instant messages and maps and photos on laptops and hand-held devices.
• The Florida Cabinet first wants to ensure that additional claims from the 2005 hurricane season are legitimate before they consider approving additional insurance assessments to raise up to $710 million for the Florida Hurricane Catastrophe Fund. The cabinet postponed a decision on the fees and suggests reviewing the business practices of public adjusters. The insurance blog on the cabinet meeting in the South Florida Sun-Sentinel reports that Gov. Crist, CFO Alex Sink and Attorney General Bill McCollum support bills that would create new restrictions on how public adjusters operate, along with requiring claims to be filed within three years of a storm, rather than the current five-year time limit.
• Demotech has withdrawn its rating of Northern Capital Insurance Co. because the company has not come up with the capital to keep its “A” rating. The Insurance Journal reports that Northern Capital could have its rating restored if it obtains the needed funds and revises its business model.
• Policyholders in HomeWise Preferred will have their policies transitioned at renewal into HomeWise Insurance Company, as HomeWise Preferred will discontinue writing business in Florida. Click here for more information from the Insurance Journal on both Northern Capital and HomeWise.
• The Florida Office of Insurance Regulation (OIR) has made its first agreement with a foreign reinsurance company. The OIR’s press release on its agreement with Hanover Re is intended to recruit more reinsurers to conduct business in Florida. Legislation approved in 2008 allowed the OIR to reduce collateral requirements for qualified reinsurance companies. The Insurance Journal also had an article on the reinsurance agreement. “Modernizing insurance regulations to attract additional capital is good for competition,” said Commissioner Kevin McCarty in the press release.
• A Miami-Dade County judge has ruled that the city of Aventura overstepped state law when it used cameras to nab red-light runners, and that ruling could have ramifications for other municipalities with red-light cameras.  The judge ruled that using the cameras without a police officer at the scene of the violation is invalid. Florida has 26 cities using red-light cameras, and while the judge’s ruling in Aventura does not necessarily apply elsewhere, the issue could force other communities to review their procedures, especially if the ruling is upheld on appeal. Read the article on red-light ruling in the Tampa Tribune.
• The authors of a newly-released book, “The Irrational Economist,” wrote an op-ed on our more dangerous world and implications of human actions and inactions with more large-scale natural disasters expected.They give three reasons behavioral scientists clash with the rational predictions of many economists when it comes to preparing people for natural disasters: People don’t think disasters will happen to them, people do not learn from others’ misfortunes, and humans seem unable to grasp the full significance of disaster statistics. The article will run in today’s international edition of Newsweek (March 1).
• The cone of uncertainty for tracking hurricanes is shrinking. The National Hurricane Center has improved its track forecasting tools, giving it the ability to project a storm’s potential position five days out in a cone that is 655 miles wide, rather than the 695 miles used last year. The cone adjustment also shrinks as the storm gets closer. More details on NHC improvements are in the weather blog of the South Florida Sun-Sentinel.
• Homeowners Choice Property & Casualty Insurance has receive approval for an overall average rate increase of 14 percent, effective April 10. The article on Homeowners Choice in the Tampa Bay Business Journal reports the company said the rising cost of reinsurance made a rate hike necessary.
• The claims check for $17,500 was in an unopened envelope in a nightstand for 32 years, until an 85-year-old South Florida woman discovered it. The check, dated Jan. 23, 1978, was from an accident to the woman’s car that occurred under the Brooklyn Bridge in 1976. It’s unclear if the check can now be cashed since it was issued by an insurance company that was liquidated. The article was in the Claims Journal.
• There is a wide gap between the number of defective drywall cases reported to the state Department of Health and the numbers reported to county property appraisers. And, the state will be looking into that drywall reporting gap, according to the Ft. Myers News Press. The article states that among the reasons people may be reluctant to report to the state are due to fear of losing homeowners insurance and privacy concerns.
• There’s a legislative bill being considered to allow property appraisers to give a zero assessment for a Florida home with defective drywall. If the home cannot be sold unless it is repaired, it assessed value would be zero. The article on the drywall tax break is in the Ft. Myers News Press. Homeowners with problem drywall in several Florida counties already receive lower property assessments.

News Articles Related to the Legislative Session

• Legislation is being drafted to expand on the insurance bill passed last year that would allow additional property insurance rate increases and reduce insurance fraud. The South Florida Sun-Sentinel article on insurance legislation quotes Sen. Garrett Richter, R-Naples, as saying that with last year’s insurance bill, the Legislature “crossed the starting line, which is dramatically different than crossing the finishing line.”
• The National Underwriter reported on a bill drafted by the American Insurance Association (AIA) to deregulate insurance rates for some commercial lines that are unexposed to catastrophe risk. The article on the commercial insurance deregulation bill (SB 2176), sponsored by Sen. Durrell Peaden, R-Crestview, relates to unique risks. The AIA said the legislation is needed because while the Florida commercial insurance market is healthy, the trend where Florida regulators are “applying strict control over commercial rates” and delaying filing approvals has been spilling over to commercial lines from the homeowners side of the business.
• Several bills being introduced in the legislative session that starts this week will impact those living in condominiums, and a guest columnist in the Orlando Sentinel offers an overview. Some bills will allow community associations to collect rent directly from tenants in delinquent units and give condominium boards the ability to restrict delinquent owners from using common areas. The author of the column is the executive director of the Community Advocacy Network.

 

NU Online News Service, Feb. 25, 12:05 p.m. EST

A bill, with language supplied by an insurance trade group, to deregulate insurance rates for some commercial lines excluding those exposed to catastrophic risk, has been introduced in the Florida Senate.

The American Insurance Association (AIA), which helped draft the measure, SB 2176, said the bill, has been sponsored by Sen. Durrell Peaden, R-Crestview.

According to its text, the legislation would exempt “specified types of insurance and commercial lines risks from certain requirements of state law relating to the filing and review of rates.”

AIA noted that the bill only includes rates, not the related forms. The association added, “We’re not aiming at all commercial coverages – notably, property is excluded – but included are categories that are competitive, unique, or involve sophisticated insureds.”

AIA said the commercial lines covered under the bill would be:

• Excess or umbrella.
• Surety and fidelity.
• Boiler and machinery.
• Commercial motor vehicle.
• Errors and Omissions,
• Professional liability (except med mal).
• Directors and officers.
• Intellectual property.
• Environmental liability.
• Risks with annual premium of $25,000 or more, excluding property.

In making its case for the legislation, AIA said that although the Florida commercial market is healthy, there is a recent trend where Florida regulators are “applying strict control over commercial rates” and delaying filing approvals.

Cecil Pearce, AIA vice president, said, “Some of the [regulatory] culture in Florida on the homeowners side has shifted to the commercial side.”

Mr. Pearce said after the 2004 and 2005 hurricane seasons, Florida saw a lot of “legislative reaction,” where the goal was to try and have government fix the homeowners market. Now, he said, there is a “growing sense” that legislators realize the government fix is not going to work. The discussion has shifted, he noted, to how insurance capital can be brought into the state.

There is also a drive, he said, to get the state’s economy going again, as unemployment is over 10 percent. Attracting insurance capital on the business side, Mr. Pearce said, will help businesses in the state grow.

To that end, AIA said it has lined up support from the Associated Industries of Florida, a large business association in the state.

Mr. Pearce said the proposal is “nothing radical,” and opens up only commercial lines that have healthy competition, are not impacted by catastrophes, and have “products the business community needs to grow.”

During the last legislative session, the Florida legislature passed a bill deregulating rates for some homeowners insurance carriers, but the measure was vetoed by Gov. Charlie Crist.

Mr. Pearce said the buyers for the lines in AIA’s proposed bill would be risk managers for businesses, rather than homeowners, and so the same concerns may not arise.

But he noted that it is an election year, and the legislature already has to cut another $3 billion out of the state budget, and so he expects there to be caution about any new idea such as deregulating some commercial lines. He said he hopes the bill goes through in the current legislative session, but acknowledged it may take a couple of years to get it approved.

Mr. Pearce said AIA is meeting with the state’s Office of Insurance Regulation (OIR) on Monday to discuss the bill.

Brittany Benner, deputy director of communications at the OIR, said the OIR is aware of SB 2176, but is still reviewing it and therefore had no comment yet.

Florida Insurance Commissioner Kevin McCarty opposed the bill deregulating rates for select homeowners insurers.

NU Online News Service, Feb. 25, 12:05 p.m. EST

A bill, with language supplied by an insurance trade group, to deregulate insurance rates for some commercial lines excluding those exposed to catastrophic risk, has been introduced in the Florida Senate.

The American Insurance Association (AIA), which helped draft the measure, SB 2176, said the bill, has been sponsored by Sen. Durrell Peaden, R-Crestview.

According to its text, the legislation would exempt “specified types of insurance and commercial lines risks from certain requirements of state law relating to the filing and review of rates.”

AIA noted that the bill only includes rates, not the related forms. The association added, “We’re not aiming at all commercial coverages – notably, property is excluded – but included are categories that are competitive, unique, or involve sophisticated insureds.”

AIA said the commercial lines covered under the bill would be:

• Excess or umbrella.
• Surety and fidelity.
• Boiler and machinery.
• Commercial motor vehicle.
• Errors and Omissions,
• Professional liability (except med mal).
• Directors and officers.
• Intellectual property.
• Environmental liability.
• Risks with annual premium of $25,000 or more, excluding property.

In making its case for the legislation, AIA said that although the Florida commercial market is healthy, there is a recent trend where Florida regulators are “applying strict control over commercial rates” and delaying filing approvals.

Cecil Pearce, AIA vice president, said, “Some of the [regulatory] culture in Florida on the homeowners side has shifted to the commercial side.”

Mr. Pearce said after the 2004 and 2005 hurricane seasons, Florida saw a lot of “legislative reaction,” where the goal was to try and have government fix the homeowners market. Now, he said, there is a “growing sense” that legislators realize the government fix is not going to work. The discussion has shifted, he noted, to how insurance capital can be brought into the state.

There is also a drive, he said, to get the state’s economy going again, as unemployment is over 10 percent. Attracting insurance capital on the business side, Mr. Pearce said, will help businesses in the state grow.

To that end, AIA said it has lined up support from the Associated Industries of Florida, a large business association in the state.

Mr. Pearce said the proposal is “nothing radical,” and opens up only commercial lines that have healthy competition, are not impacted by catastrophes, and have “products the business community needs to grow.”

During the last legislative session, the Florida legislature passed a bill deregulating rates for some homeowners insurance carriers, but the measure was vetoed by Gov. Charlie Crist.

Mr. Pearce said the buyers for the lines in AIA’s proposed bill would be risk managers for businesses, rather than homeowners, and so the same concerns may not arise.

But he noted that it is an election year, and the legislature already has to cut another $3 billion out of the state budget, and so he expects there to be caution about any new idea such as deregulating some commercial lines. He said he hopes the bill goes through in the current legislative session, but acknowledged it may take a couple of years to get it approved.

Mr. Pearce said AIA is meeting with the state’s Office of Insurance Regulation (OIR) on Monday to discuss the bill.

Brittany Benner, deputy director of communications at the OIR, said the OIR is aware of SB 2176, but is still reviewing it and therefore had no comment yet.

Florida Insurance Commissioner Kevin McCarty opposed the bill deregulating rates for select homeowners insurers.

NU Online News Service, Feb. 25, 12:05 p.m. EST

A bill, with language supplied by an insurance trade group, to deregulate insurance rates for some commercial lines excluding those exposed to catastrophic risk, has been introduced in the Florida Senate.

The American Insurance Association (AIA), which helped draft the measure, SB 2176, said the bill, has been sponsored by Sen. Durrell Peaden, R-Crestview.

According to its text, the legislation would exempt “specified types of insurance and commercial lines risks from certain requirements of state law relating to the filing and review of rates.”

AIA noted that the bill only includes rates, not the related forms. The association added, “We’re not aiming at all commercial coverages – notably, property is excluded – but included are categories that are competitive, unique, or involve sophisticated insureds.”

AIA said the commercial lines covered under the bill would be:

• Excess or umbrella.
• Surety and fidelity.
• Boiler and machinery.
• Commercial motor vehicle.
• Errors and Omissions,
• Professional liability (except med mal).
• Directors and officers.
• Intellectual property.
• Environmental liability.
• Risks with annual premium of $25,000 or more, excluding property.

In making its case for the legislation, AIA said that although the Florida commercial market is healthy, there is a recent trend where Florida regulators are “applying strict control over commercial rates” and delaying filing approvals.

Cecil Pearce, AIA vice president, said, “Some of the [regulatory] culture in Florida on the homeowners side has shifted to the commercial side.”

Mr. Pearce said after the 2004 and 2005 hurricane seasons, Florida saw a lot of “legislative reaction,” where the goal was to try and have government fix the homeowners market. Now, he said, there is a “growing sense” that legislators realize the government fix is not going to work. The discussion has shifted, he noted, to how insurance capital can be brought into the state.

There is also a drive, he said, to get the state’s economy going again, as unemployment is over 10 percent. Attracting insurance capital on the business side, Mr. Pearce said, will help businesses in the state grow.

To that end, AIA said it has lined up support from the Associated Industries of Florida, a large business association in the state.

Mr. Pearce said the proposal is “nothing radical,” and opens up only commercial lines that have healthy competition, are not impacted by catastrophes, and have “products the business community needs to grow.”

During the last legislative session, the Florida legislature passed a bill deregulating rates for some homeowners insurance carriers, but the measure was vetoed by Gov. Charlie Crist.

Mr. Pearce said the buyers for the lines in AIA’s proposed bill would be risk managers for businesses, rather than homeowners, and so the same concerns may not arise.

But he noted that it is an election year, and the legislature already has to cut another $3 billion out of the state budget, and so he expects there to be caution about any new idea such as deregulating some commercial lines. He said he hopes the bill goes through in the current legislative session, but acknowledged it may take a couple of years to get it approved.

Mr. Pearce said AIA is meeting with the state’s Office of Insurance Regulation (OIR) on Monday to discuss the bill.

Brittany Benner, deputy director of communications at the OIR, said the OIR is aware of SB 2176, but is still reviewing it and therefore had no comment yet.

Florida Insurance Commissioner Kevin McCarty opposed the bill deregulating rates for select homeowners insurers.

• Rep. Bill Proctor has led the effort to bring stability to the property insurance market, and he describes the situation as a kaleidoscope – with a solution that seems to change every minute. The Associated Press article on solving the property insurance puzzle is in the Insurance Journal.
• The Florida Chamber of Commerce issued its legislative priorities, stating that this “is not the time to increase taxes, lawsuits or legislation.” The Chamber president also said in the Tampa Bay Business Journal that the state should make tough choices and “cannot return to the old way of doing business.”

News About the News Business

• A federal judge appointed two appraisers to determine a value for the News-Journal Corp. The current owners are seeking court approval to sell the publishing company to Halifax Media. More details on the newspaper sale are in the Daytona Beach News-Journal.
• The voluntary online payment-for-news experiment by the Miami Herald has ended. It was an attempt to increase revenue from online news, and the article on the voluntary payment states that the Herald won’t say how much money the effort raised. Other media companies, including The New York Times, have announced future plans to charge for online content. The Miami Herald currently has no plans to do so, although it does charge for mobile applications that deliver sports content.

 

Insurance Daily
March 1, 2010
A roundup of major news stories of interest to the insurance industry from traditional and new media sources.   IN TODAY’S MEMBERS BULLETIN   AIR Worldwide Estimates Insured Losses from the Magnitude 8.8 Chile Earthquake at Between $2 Billion USD and $8 billion USD   STORM KILLER EUROPE LASHES; 45 DIE AS WIND GUSTS TO 109MPH     1. INSURANCE ISSUES UPDATES. Below is a list of the Issues Updates reports that have been updated as of March 1, 2010. The sections that have been updated are identified. The papers can be accessed at http://www.iii.org/issue_updates/. Catastrophes: Insurance Issues – Losses; Florida hurricane catastrophe fund; Charts. Compulsory Auto/Uninsured Motorists – Entire paper. Insolvencies/Guaranty Funds – Insolvencies/Impairments; Guaranty funds; Charts. Liability System – Recent developments. You can now follow I.I.I. Research on Twitter at http://twitter.com/III_Research and be alerted when papers are updated and find out about other insurance research and statistics.   2. CHILEAN QUAKE’S TOLL LIMITED BY SOUND PLANNING. Jonathan Franklin and R. Jeffrey Smith. The Washington Post. 03/01/2010. Page A1.  The relatively low death toll from the earthquake that hit Chile on February 28, one of the most severe earthquakes anywhere around the globe in the last century, is attributed to careful planning and preparation. Troops were sent to maintain order in Concepcion, one of the cities hardest hit by the quake, and President Michelle Bachelet said that although Chile generally does not ask for help she would accept international aid. Bachelet explained that her advisers had convinced her that the catastrophe was so devastating that the recovery is likely to take many years and cost tens of billions of dollars. On the first day after the quake more than 700 people are estimated to have been killed, a small number compared with the 220,000 who are believed to have lost their lives in the far less powerful earthquake in Haiti earlier in February. Haiti’s quake was more shallow and close to the capital Port-au-Prince, a large population center. Cities in Chile did not have the widespread building collapses that occurred in Haiti, which caused most of the fatalities. Earthquake scientists, building engineers and other experts say that despite the half of million homes that suffered major damage from the two minutes of shaking in Chile, most residents survived due to the enforcement of the nation’s strict building codes. Full Text. (See also WHY BIGGER QUAKE SOWED LESS DAMAGE. Gautam Naik. The Wall Street Journal. 03/01/2010. Page A14.)   3. AIG NEARS DEAL TO SELL ASIA UNIT. Jeffrey McCracken, Serena Ng and Dana Cimilluca. The Wall Street Journal. 03/01/2010. Page A1.  On February 28 American International Group Inc. (AIG) is reported to have come near the completion of a deal to sell American International Assurance Ltd. (AIA) to the British insurer Prudential PLC for approximately $35.5 billion. The sale of its Asian life insurance business, one of AIG’s most valuable assets, would represent AIG’s largest step so far to repay its $182.3 billion bailout from the U.S. government. Inside sources say that the sale has been approved by AIG’s government controlled board as well as officials from the Federal Reserve and the Treasury Department. AIG could receive as much as $50 billion from the sale of AIA and another deal expected soon, the sale of American Life Insurance Co. (Alico), another non-U.S. insurer, to MetLife. AIG has agreed to pay half of the proceeds from both deals to the Federal Reserve of New York. The two deals would provide approximately half of the $97 billion AIG is currently working to repay. Government officials welcomed the Prudential deal because taxpayers would receive $25 billion in repayment, compared to $15 billion that would come from the planned initial public offering of AIA.   4. AIG ‘NOT OUT OF THE WOODS’ — INSURER’S $8.9 BILLION LOSS IS ‘SUBSTANTIAL IMPROVEMENT’ BUT CHALLENGES REMAIN. Serena Ng and Joe Bel Bruno. The Wall Street Journal. 02/27/2010. Page B3.  American International Group Inc. (AIG) has posted a fourth-quarter 2009 loss of $8.9 billion, mainly a result of asset divestment charges and additions to reserve funds to cover potential policy losses at its property/casualty insurance business. AIG acknowledged it still has a difficult road ahead as it figures out how to repay U.S. taxpayers and emerge as a viable enterprise. The company’s full year 2009 loss was $10.9 billion, compared with a loss of $99.3 billion in 2008. Robert Benmosche, AIG’s chief executive, said, “While we are not out of the woods by any stretch, these numbers represent a substantial improvement.” He cited improving markets and economic conditions as boosting AIG’s prospects. Chartis, AIG’s global property/ casualty insurance business, increased its loss reserves for earlier accident years by $2.3 billion in the fourth quarter, resulting in a $1.8 billion operating loss for the period. AIG’s domestic life insurance and retirement businesses showed an operating profit of $1 billion for the latest quarter, compared with a loss of $835 million the previous year. The article provides other financial results.   5. BERKSHIRE TRUMPETS ITS REBOUND, WITH CAVEATS. Scott Patterson. The Wall Street Journal. 03/01/2010. Page C1.  In his annual letter to Berkshire Hathaway Inc. shareholders on February 27, Warren Buffett, who led the company through one of its largest periods of growth in 2009, warned the company’s investors that the recent rate of growth could not be sustained. In 2009 the company’s book value gained 19.8 percent a share, the largest gain since 2003. Buffett explained that he has been reshaping Berkshire into a capital intensive industrial conglomerate by taking large holdings in railroads and utilities and reducing exposure to financial operations such as insurance. Buffett said that growth in the company’s leading auto insurer, Geico, could slow due to lower auto sales and high unemployment. Buffett accepted responsibility for the problems with a credit card issued by Geico. Buffett acknowledged that Geico managers warned him that the auto insurance customers taking advantage of the offering would not be the company’s most desirable policyholders. Berkshire’s insurance operations posted a net underwriting gain of $1.1 billion in 2009, compared with $1.8 billion the previous year.   6. STATE FARM REBOUNDS IN 2009, POSTS $777M PROFIT. Ryan Denham The Pantagraph. 02/26/2010. Page N/A. On February 26  State Farm Insurance Cos. posted a $777 million profit for 2009, compared with a net loss of $542 million the previous year. State Farm’s net worth in 2009 rose by 9 percent to $58.1 billion. The company attributes the positive results in large part to recovering stock markets; the value of the insurer’s portfolio increased by $3.8 billion last year. However, State Farm’s core property/casualty operations posted underwriting losses of $3.7 billion last year, still an improvement on the $6.3 billion in losses in 2008. Catastrophe losses in 2009 were $3.6 billion, compared with $6.3 billion in 2008. State Farm spokesman Dick Luedke said that investment gains helped offset underwriting losses and noted a 2.1 percent increase in earned auto premiums in 2009, to $30.9 billion. Robert Hartwig, president of the Insurance Information Institute, said, “The market rebound and fewer catastrophes have helped the industry as a whole. One of the primary beneficiaries of that would be State Farm, the largest home insurer in the country.” Full Text   7. TEXAS AGAIN TOPS U.S. IN STORM DAMAGES. Patrick Danner. San Antonio Express-News. 02/26/2010. Page N/A. In 2009, 10 storms caused $2.46 billion in insured losses in Texas, the highest catastrophe losses of any state for the second consecutive year. In 2008 the state had 11 storms, which caused losses of $10.2 billion, mostly from Hurricane Ike. Mark Hanna, a spokesman for the Insurance Council of Texas, said, “Unfortunately, Texas has had by far the worst weather in the country for the last two years, and it has come in the form of hurricanes and thunderstorms. Just looking at our ice and record snowfall this year, Mother Nature doesn’t appear to be letting up.” The losses were calculated by Property Claim Services (PCS). PCS Vice President Gary Kearney said, “No other state has even come close to all of the weather catastrophes and insured losses that Texas has gone through over the last two years.” Full Text   8. (MISS.) POLICYHOLDERS BILL SUPPORTERS FACE CLEAR CHALLENGE. Michael Newsom. The (Biloxi) Sun Herald. 02/26/2010. Page N/A.  Mississippi House Bill 563, which would establish a homeowners insurance “policyholders bill of rights,” is facing a March 2 deadline to clear the Senate Insurance Committee, where similar bills over the last few years have died without reaching a vote. If this measure dies, supporters will have to try to get lawmakers to offer it as an amendment to another bill or wait until next year to bring it back for consideration. The measure would put into law language from a court decision that ruled the burden of proof is on the insurance company to prove an exclusion in a policy applies to a claim. It also requires insurers to notify homeowners if they intend to raise rates by 10 percent or more, by sending written notice of the increase 30 days before the policy renewal date. Some insurance company representatives say the new regulations could cause companies to leave the state. Full Text    9. IN SENATE, A RENEWED EFFORT TO REACH A CONSENSUS ON FINANCIAL REGULATION. Sewell Chan. The New York Times. 03/01/2010. Page B3.  In January when Senator Christopher Dodd announced that he would not seek a sixth term, he referred to financial reform as one of the most crucial current issues along with healthcare. Dodd, chairman of the Senate Banking Committee, appears to be faced with great challenges as he prepares a financial regulation proposal that is expected to be released as early as the first week in March. Parts of his plan released on February 26 include the sharply debated proposal on the creation of a consumer protection agency to oversee the mortgage industry, credit cards and other financial products. Travis Plunkett, legislative director of the Consumer Federation of America, said that the plan reflects the influence of the financial services lobby, particularly large banks. Full Text   10. CHILDHOOD OBESITY LINKED TO HEART ILLS. Shirley Wang. The Wall Street Journal. 03/01/2010. Page A6.  According to a study published on March 1 in the journal Pediatrics, obese children as young as three have been found to have an inflammatory response linked to heart disease later in life. The discovery is expected to lead to even greater concerns about childhood obesity since the latest research indicates that related disease processes begin far earlier than had been believed. Researchers found that the blood levels of C-reactive protein, a widely studied marker for inflammation, was elevated in nearly 30 percent of obese children between the ages of three and five, compared with 17 percent among children of healthy weight in the same age group. The study found that the difference was even greater among older children. Fourteen percent of children between two and five in the U.S. are considered overweight, or at the 85th percentile or greater of weight for height in the age group.   11. THE NEW BASICS: WHOLE-LIFE INSURANCE, LONG DERIDED, GETS NEW LEASE. Leslie Scism. The Wall Street Journal. 02/27/2010. Page B8.  Old fashioned whole life insurance, which combines conservative investments with insurance, performed very well during the financial crisis. But people thinking of buying a whole life policy are advised that premiums and up-front commissions are very expensive. Whole life and universal life, a similar type of insurance, often work best for people with extra money to invest beyond their 401(k)s, if they can hold on to the insurance until death because both policies provide a death benefit, no matter how long the policyholder lives. The article discusses the difference between whole and term life insurance and the advantages and disadvantages of each. The article also explains that purchasers should look for companies that have low annual costs and solid investment performance; mutual insurers, which are owned by policyholders, can be a good choice.     STATE NEWS HIGHLIGHTS FROM THE MEMBERS BULLETIN   Northeast: Northeast begins recovery after brutal storm; Canceled flights, wild wind, outages plagued the area USA TODAY … March 1, 2010 Monday Communities in the Northeast were cleaning up Sunday from a winter storm that packed ferocious… Hawaii: Tsunami hits Hawaii after Chile quake ABC Premium News (Australia) … February 28, 2010 Sunday 9:13 AM AEST A tsunami triggered by a massive 8.8 magnitude earthquake that struck off the coast of Chile has… California: Backers of auto-insurance measure sue over ballot pamphlet language Contra Costa Times (California) … February 25, 2010 Thursday Backers of a ballot measure to change California’s auto-insurance rules filed a lawsuit Thursday… New York: N.Y. not expected to be model for disclosure rules; Producer compensation regulation ‘unlikely’ to be widely adopted Business Insurance … February 22, 2010 While New York often is looked to as a model for regulatory reform by other states, industry…      by Claire Wilkinson, Insurance Information Institute   Human Reason vs. Catastrophes. February 25, 2010   Copyright 2010 The Insurance Information Institute. The Insurance Daily may not be reproduced, duplicated or redirected in any format without permission of the I.I.I., 110 William Street, New York, NY 10038. Contact Neil Liebman, the editor, to request permission–212-346-5532, Email: iiidaily@iii.org. Web site: http://www.iii.org/.	NEWS Members Bulletin–full text industry, regional and international news (Updated daily) Issues In the News by Subject–full text articles by subject (Updated daily)    www.FPCAonline.org