Declarations

Rocky Quarter

“It was a rocky third quarter for insurers, but risk managers still saw prices improve on average. It is increasingly clear, though, that premiums cannot continue to fall at this pace, especially with the global economy in chaos.”

—John R. Phelps, member of RIMS board of directors and director of business risk solutions at Blue Cross and Blue Shield of Florida Inc., responding to a RIMS survey showing that two major hurricanes and a global credit crunch were not enough to derail the relentless soft commercial insurance market in the third quarter.

On the Hook

“Whatever post-storm costs that the state cannot access in the bond market, taxpayers will be on the hook for through assessments on their property and auto insurance bills. Policymakers, consumers and insurers need to work together and reexamine the future of the Florida homeowners’ insurance market.”

—David Sampson, president of the Property Casualty Insurers Association of America, after the Florida Hurricane Catastrophe Fund Advisory Council recently presented its 2008 October bonding estimates. Sampson said the current financial crisis directly impacts the Fund’s ability to pay claims.

A Dire Thirst

“The last three months have sucked every bit of moisture we’ve had.”

—Ben Webster, an assistant for the West Virginia Division of Forestry, referring to extreme drought conditions that have spread into Kentucky, while severe conditions returned to West Virginia and southwest Virginia.

Workers’ Comp Setback

“The 2003 legislative reforms rescued what was a failing workers’ comp system. It was failing for workers, employers and insurers.”

—Cecil Pearce, American Insurance Association vice president, southeast region, after the Florida Supreme Court reinstated hourly attorneys’ fees in workers compensation cases. Pearce called the decision an unfortunate setback for a system that has seen significant improvement since 2003.

White Glove Test

“The result of coal dust accumulating underground could have been a catastrophic fire or explosion. It is especially troublesome that the mine operator failed to take any corrective action, despite its own records and prior notice from MSHA that clearly indicated the need for corrective actions to protect the safety of miners.”

—Mine Safety and Health Administration director Richard Stickler in a prepared statement after officials fined an Alpha Natural Resources subsidiary more than $763,000 for repeated safety violations at a West Virginia coal operation. Alpha’s Kingwood Mining Co. was cited 13 times in a one-year period for allowing coal dust to accumulate.

Topics Florida Workers' Compensation Virginia West Virginia