| Insurance Industry's Profits Rose In 2006
NEW YORK -- The headline numbers were eye-popping: Allstate reported a record $5 billion profit for 2006. State Farm Insurance's profit climbed 65 percent for the year. St. Paul Travelers' earnings rose sixfold in the fourth quarter, American International Group's rose eightfold. A year and a half after Hurricane Katrina devastated the Gulf Coast, profits at the nation's major property-casualty insurance companies soared -- and are expected to be strong again in 2007, according to estimates by the A.M. Best Co. rating agency. Critics charge that the insurers are doing well financially by shorting the people who bought their products -- including hundreds of consumers who still haven't gotten settlements for their Katrina claims. The industry, in turn, denies taking advantage of consumers, crediting its growing profitability instead to fewer storms last year and improved business procedures.
Florida drivers face changes as PIP could expired
If current no-fault insurance law isn't replaced or extended, Florida drivers may need to buy extra coverage to be sure medical payments are covered in case of accidents. BY BEATRICE E. GARCIA bgarcia@MiamiHerald.com TALLAHASSEE - Come October, the way Floridians buy auto insurance could change dramatically. That's when the state's current no-fault insurance law is set to expire. Along with it would go the required $10,000 personal injury protection drivers now buy to cover medical expenses and lost wages when there's an accident, regardless of who is at fault. Several major insurers including State Farm Insurance of Florida and Allstate Florida are lobbying hard to let the no-fault law sunset because it breeds massive fraud and runs up charges for often unnecessary and expensive medical procedures to exhaust the $10,000 that's provided in every accident.
Mag rates Charlotte drivers worst
An analysis in Men's Health magazine ranked Charlotte's drivers among the nation's worst.Charlotte ranked 93rd out of 100 cities in the magazine's analysis. Greensboro was 98th. Both cities got an "F." Men's Health's ranking used data from the National Highway Traffic Safety Administration on the rate of fatal accidents, deaths caused by speeding, and seat belt use; data from Allstate Insurance on accident frequency; and the Governors Highway Safety Association's data on speeding drivers. -- associated press Catawba County Repaving set for this year for 26-mile stretch on I-40 Driving on Interstate 40 in Catawba County is going to get smoother.The N.C. Department of Transportation recently appropriated $26.3 million to repave 26 miles of the interstate from the Burke County line to Stamey Farm Road in Iredell County.
State orders insurer to cut rates further
VERO BEACH Cincinnati Insurance Co.'s proposal to roll back their homeowners property insurance coverage by 3.2 percent statewide was rejected by officials with the Florida Office of Insurance Regulation, who instructed the company to instead decrease rates by 31.3 percent. "They will have to make a new filing with us," said agency spokesman Bob Lotane on Wednesday. "The simplest way to put it is, they are going to have to get their math right." .
Senate insurance panel quizzes former director
Charleston-area property owners were treated to a rare opportunity last week (if treat is the right word): The state Senate insurance subcommittee held its meeting in North Charleston rather than Columbia. A main purpose of the committee is to gather information related to bills being considered by the Legislature. This year, given a coastal insurance crisis that has gained momentum since last summer, there are a host of bills proposed that aim to fix problems with increasing premiums and shrinking availability experienced by thousands of the state's homeowners. But not all the talk last week centered on solutions. Former Director of Insurance Eleanor Kitzman was again asked to testify before the committee and was asked by co-chairman Luke Rankin (R-Myrtle Beach) if she thought last month's expansion of the wind pool by her successor, Scott Richardson, went far enough.
Facts about teachers' salaries are all wrong
James Moran's March 23 letter about teachers and salaries is filled with so much that is wrong that it is difficult to know where to begin. To start with the outright errors, Mr. Moran states that teachers don't contribute to their benefit. In Guilderland, employees contribute 20 percent to their health insurance program. .
Arizona House Passes Health Coverage Bills Addressing Basic ...
The Arizona House last week passed two bills related to health care. Summaries of news coverage appear below:
Individual coverage: The Arizona House on Tuesday voted 32-25 to pass a bill (HB 2757) that would allow health insurance companies to offer individual, basic health insurance policies that exclude some minimum coverage requirements, Capital Media/Arizona Daily Star reports. State Rep. Kirk Adams (R), who sponsored the legislation, said the bill would give Arizona residents a lower-cost option than policies that offer more comprehensive coverage. Health care providers say that the bill will compromise care, Capital Media/Daily Star reports (Capital Media/Arizona Daily Star, 3/14).
Purchasing pool: The state House on Thursday approved legislation that would overhaul the Healthcare Group of Arizona, a state-sponsored health insurance plan that allows small businesses and self-employed individuals to participate in a health insurance purchasing pool, the Arizona Republic reports.
No hangups here: Cell phone bill may finally pass
The state Legislature could be just days away from banning driving with a cell phone to the ear. The bill to do so has passed the state Senate and made it through all its House committees. House leaders are now counting votes to make sure the bill will pass before they bring it to the floor for final passage next week. I think well get there, House Majority Leader Lynn Kessler, a Democrat from Hoquiam, said Friday. I hope so. Federal Way Democratic Sen. Tracey Eide has been pushing the bill for seven years. Shes never been this close to having it become law. Eides Senate Bill 5037 would only allow drivers to talk on their cell phones if they are using a headset or other hands-free device. Theres another measure, House Bill 1214, that would ban driving while sending text messages.
FRESH OFF ITS MAIDEN VICTORY, GAINSCO TEAM
HOMESTEAD, Fla. -- The GAINSCO Auto Insurance team rolls into Homestead/Miami Speedway today on an emotional high, after Alex Gurney and Jon Fogarty combined to score the team's first-ever Grand-Am Rolex Sports Car Series win less than three weeks ago at Mexico City. But the team knows that a tough race is ahead for the drivers and crew of the No. 99 GAINSCO Auto Insurance Pontiac-powered Riley — Saturday afternoon's 109-lap, 250-mile Linder Industrial Grand Prix of Miami. The race, Round Three of the 2007 Rolex Sports Car Series, poses an entirely different challenge for Gurney and Fogarty — the tight confines of the 2.3-mile speedway road course allow little margin for error, and up on the high banks, horsepower is everything. Last year, the speedy Porsche-powered prototypes quickly drew away from the Pontiac-powered 99 — but after a successful test at the course earlier in December, both drivers are confident they'll have the speed to run up front this weekend.
Miss. Wind Pool Prepares Rate Cuts After Feds Give $30 Million
The Mississippi wind insurance pool has received $30 million from the federal Department of Housing and Urban Development. The funding, in the form of a Federal Community Development Block Grant, is a one time deal, according to Pete Smith, Gov. Haley Barbour's press secretary. This announcement, coupled with the $20 million in state funds that came about with the recent signing of legislation affecting the wind pool, will allow the state's insurer of last resort to slash commercial rates from 268 percent to 142 percent, resulting in millions of dollars in savings to policyholders, according to state officials. The premium reductions for commercial policies could begin as soon as next week. In 2006, the Mississippi Insurance Department proposed that CDBG grant funds be used to pay for a significant portion of the cost of reinsurance the wind pool was required to purchase.
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