Declarations

Crisis in S.C.

“The costs associated with the workers’ compensation system are increasing at a faster rate than in other states. That, coupled with the large assessment for the Second Injury Fund, creates an unstable environment for workers’ compensation insurance. Additionally, these increases cripple small businesses, adversely affect the availability of workers’ compensation insurance and make it difficult for insurers to hold the line on increases.”

Robert Herlong, regional manager for Property Casualty Insurers of America, explaining why South Carolina’s workers’ compensation situation has reached a crisis situation that requires reform. He said premiums have jumped 30 percent in three years.

Listening in Florida
“Governor Bush and other elected officials in Tallahassee should spend less time listening to the insurance industry and more time listening to Florida’s citizens, who are demanding that public policymakers act decisively to control rising insurance costs for homeowners statewide. Unfortunately, the Insurance Reform Committee appears to be in search of solutions that will accommodate the insurance industry and seems to accept the industry’s claim that insurance premiums are too low, a concept that is very difficult to explain to community associations and homeowners whose rates have skyrocketed.”

Kenneth S. Direktor, a community association attorney with Becker & Poliakoff, who testified Oct. 4 before the Governor’s Insurance Reform Committee in Tallahassee.

Critical for survival
“Half of all agencies in the U.S. depend on the extra amount of income brought in by contingency commissions to move profit and loss records from red to black. It determines whether we are profitable or not.”

Alex Soto, a Miami agent who is president of the Independent Insurance Agents and Brokers of America, before a recent gathering of the Independent Insurance Agents of North Carolina.

Davis plan
“It makes the cost for the insurance companies less expensive and it forces them to pass along the savings to us. It protects our premiums for the future. … These insurance companies have charged us outlandish prices, telling us because the storms are coming. Well, the storms have not come … but are we going to get our money back? Of course not.”

Jim Davis, Democratic candidate for governor of Florida, in announcing his plan for a $20 billion Hurricane Premium Protection Fund that would pay homeowners up to $500,000 for storm losses, leaving private insurers to cover the remainder of damages.