Declarations

Alabama Beach Progress

“Unlike a hurricane which can strike swiftly and forcibly, it often takes time and deliberation to implement changes in policy but members of the Beach Pool are proud to report the significant progress we’ve made over the past few years. The bottom line is that the Beach Pool response to task force recommendations has enhanced our ability to provide coverage to those coastal residents who cannot find an alternative choice in the private market.”

—Robert Groves, manager of the Alabama Insurance Underwriting Association, a.k.a. the Beach Pool, speaking on recommendations made by a task force following Hurricane Ivan in 2004. Recommendations called for the expansion of coverage, change in the make up of the board to include non-industry representation, review of rates, credits for wind mitigation and better construction, redefining territories and the ability to build surplus.

Safer in Kentucky

“As businesses face tough economic times, this is a welcome piece of news. Workers’ compensation insurance is a large cost of doing business. This also is good news for hardworking Kentuckians since the report shows a continuing decline in the number of workplace injuries and a slight decline in the severity of those claims.”

—Department of Insurance Commissioner Sharon P. Clark said, regarding a 2008 filing producing the third straight decrease in workers compensation loss costs at an average reduction of 5.1 percent in Kentucky.

Inland Subsidies in North Carolina

“Homeowners’ rates in inland areas are already higher than they need to be so that coastal property owners pay less than they otherwise would. The Beach Plan’s prices should be adequate to build sufficient reserves and buy reinsurance to address the catastrophic losses the plan will inevitably face.”

—Joe Stewart, executive director of the Insurance Federation of North Carolina, referring to the potential of a storm depleting the reserves of the Beach Plan and triggering charges to insurance companies and an almost certain rate increase for homeowners across the state. The Legislature mandated a committee to study the Beach Plan’s financial condition.

Not in Bad faith

“It is clear in the motion filed by the McIntoshes’ current lawyers there is not and never was evidence showing bad faith or negligence by State Farm.”

—State Farm spokesman Jonathan Freed on Sept. 8 when a judge dismissed the bad faith portions of the lawsuit, once considered a key piece of Katrina litigation, after a Mississippi couple requested he do so. After initially accusing State Farm of using doctored engineering reports to deny portions of their claim, Thomas and Pamela McIntosh said in a court motion that “there is no credible evidence that State Farm engaged in bad faith” or negligence. They are still suing for money they believe is owed under State Farm’s contractual obligations.