Insurance News You Can Use

Welp folks this Cowboy don't know what to make of ole Chaney. One day he campaign promisin' to make the insurance commissioner appointed then after he wins he says he wasn't going to fight for that in the legislature since it was just his personal opinion. A couple weeks back he says rates is goin' up and now he says rates is goin' down. Maybe one of the others can make sense of this Sun Herald story for me.

Insurance Commissioner Mike Chaney told members of the Biloxi Businessmen's Club on Thursday he hopes to lower residential rates in the state wind pool by at least 10 percent.

Chaney said he would like to see a decrease of up to 40 percent in rates for the coverage offered by South Mississippi's wind insurance company of last resort, but doesn't know if that's possible. The wind pool is shopping for reinsurance, which would help cover its losses in case of a disaster. Chaney will be transferring $40 million to the pool between now and July to help pay for the coverage.

With reinsurance rates going down, the hope is wind pool rates also can be lowered.

Wind pool rates increased 90 percent for homeowners in October 2006 because of Hurricane Katrina. On the Coast, insurance companies also stopped offering new customers homeowner insurance that included wind coverage and in some cases cancelled policies at renewal time.

Chaney said the Coast is probably one of the "most profitable markets" for insurance companies that offer policies without wind coverage because the risk of ice storms and tornadoes, which their policies do cover, is relatively low.

A day earlier, Chaney had announced Aegis Security Insurance Co. would resume offering new policies in Mississippi, but it turns out the company will offer wind coverage only as far south as George, Stone and Pearl River counties.

In other news the leader of the Diamondhead Slingshot Group has finally settled out with them crooks at State Farm. It only took 30 months and bringin' in a lawyer to get them Gucci suit wearin' crooks to experience a come to Jesus moment and honor their obligations. Havin' to fight your insurance company tooth and nail is the new fangled way of doin' business. Besides them executives and their yearly bonuses the other folks I see benefitin' from the current system is the lawyers. Here is the Anita Lee story:

A Diamondhead homeowner who rallied policyholders to fight for payment of their Katrina claims has settled her lawsuit with State Farm Fire and Casualty Co.

Notice of the settlement was filed Friday in U.S. District Court in Gulfport. Terms were undisclosed.

Kenneth and Judy Dutruch sued State Farm in June 2007. They accused the company of breaching its contract to cover Katrina damage to the couple's vacation home and sought punitive damages for denial of their claim.

Judy Dutruch has told the Sun Herald in previous interviews State Farm refused to consider evidence of wind damage to the couple's South Diamondhead home off the Bay of St. Louis. State Farm sent experts to examine the property only after the Merlin Law Group filed the lawsuit on the Dutruchs' behalf.

Experts hired by the Dutruchs, including a forensic arborist, concluded their home suffered extensive wind damage - covered under their State Farm policy. State Farm concluded storm surge, excluded from coverage, destroyed the home.

As a result of widespread denials by State Farm and other major insurance companies, Judy Dutruch formed the Slingshot Gang in Diamondhead to unite waterfront homeowners. They pooled money to pay for expert reports, shared information and provided moral support to one another.

Many members of the group have settled their claims, but the Slingshots agreed not to disband until all claims were resolved.

As part of the settlement, both sides agreed not to disclose the terms. In fact, they could say little more than they were "pleased."

Judy Dutruch added, "We are certainly glad that it is all over and we can now start thinking about future plans of rebuilding."

A State Farm spokesman said, "We're pleased to have resolved our differences with Mrs. Dutruch."

Commissioner Chaney Scores!

Newly elected Insurance Commissioner Mike Chaney announced Aegis Security Insurance Company will begin writing new policies in Mississippi.

We welcome the good news, Commissioner Chaney - and look forward to more.

Insurance News Today

There are two news stories in today's Sun Herald that are well worth pointing out. The first deals with the House Insurance Committee's passage of a Policyholder's Bill of Rights, prompted by the treatment of consumers here on the coast after Hurricane Katrina.

Long Beach resident Kevin Buckel lost his house on Russell Avenue to Katrina, but was originally paid only $1,000 by Nationwide, but the company later settled a lawsuit with him. Buckel told the committee that putting the burden of proof on the insurance company is the most important part of the Policyholder's Bill of Rights.

"When you are denied a claim, the insurance companies would be more likely to settle with homeowners if they can't prove their case in court," Buckel said.

I have not read the bill but I take Mr Chaney's reservations concerning it to mean it must favor consumers over insurers.

The second story should come as no surprise that private insurers will continue to increase the pressure by economic strangulation of the coast enabled by former insurance agent turned inusrance commissioner Mike Chaney. I find the contrasts between Mr Chaney and Mr McCarty in Florida most telling as I do the timid reactions of Mississippi politicians in general to this issue in huge contrast to those in Florida.

Mississippi Insurance Commissioner Mike Chaney said some major insurance carriers have indicated they may no longer renew wind coverage for customers in South Mississippi.

"If they quit writing wind for existing customers, that's really going to put more pressure on the economy," said Chaney, who added that he is working to keep private carriers in the six southernmost counties and bring in new business.

He hopes enforcement of enhanced building codes, coupled with other measures his office is pursuing, will improve the market.

Is it me or were the new buillding codes passed after the storm in late 2005 or early 2006? Perhaps it's time Mr Chaney quit hoping and instead champion the people who elected him to office. Frankly I would personally never sign up with a private insurer for wind coverage, as it is a waste of money buying a policy that does not pay on wind damaged coastal properties. Like my home before the storm my rebuild will be in the wind pool which did pay on their policies as a rule.

sop

Insurance Commissioner to Open Office in Gulfport

I found this Sun Herald article interesting and refreshing. Mr. Chaney is opening an office in Gulfport which is a great move. I would urge the windpool to locate closer to it's customers as well.

New commish aims at wind-pool rates
Chaney will open Coast office
By ANITA LEEcalee@sunherald.com

Commercial and residential policyholders in South Mississippi could see a decrease this year in state wind-pool rates, plus policyholders will for the first time have a state insurance office on the Coast.

Mississippi Insurance Commissioner Mike Chaney said between meetings Friday he's busy but tired after two weeks in office.

"It's a lot of work," Chaney said. "I think the people in the department are dedicated to the people that pay the policy premiums. It's been a learning curve for me... I'm going to do my best."

He said the job has already proven to him "how staggering a responsibility I've got to the people of Mississippi."

Chaney said Friday he is working with state legislators, who convened their 2008 session Tuesday, and state wind-pool officials to lower wind-pool rates that increased 90 percent for homeowners and 162 percent for businesses after Hurricane Katrina. Chaney said it is too early to discuss details, but he has met with the Coast legislative delegation and is talking to other lawmakers about insurance needs in South Mississippi.

Chaney said his top priority is to stabilize the property and casualty market so insurance is available and affordable. Working to improve the wind pool, insurer of last resort for South Mississippi, also will help stabilize the insurance market statewide, he said.

He said lawmakers from other parts of the state are getting the message that South Mississippi needs stability in its insurance market for economic recovery from Katrina's devastation.

The Republican commissioner defeated Democratic challenger Gary Anderson in the November election, after Anderson ousted longtime Commissioner George Dale in the party primary.

Chaney also plans to open a Coast insurance office, tentatively Friday. The office will be at 1701 24th Avenue, across from the Gulfport courthouse. Chaney said he is opening the office full time, primarily as a service to consumers who have questions or complaints about insurance.

Chaney said he also will lend support to a state policyholders' bill of rights, with some revision, and is encouraging U.S. Senate candidates to support a multiple-peril insurance bill co-sponsored by U.S. Rep. Gene Taylor. The bill would add wind coverage to the federal flood insurance program, but would require rates be set at levels appropriate for the risks insured.