Declarations

Case Dismissed

“I once again apologize for my actions, and for the pain and disappointment those actions caused my family and the many people who supported me during my career in public life.”

—Former New York Governor Eliot Spitzer, commenting on a decision by federal prosecutors not to pursue criminal charges against him for his involvement in a prostitution ring. Spitzer, who stepped down in March following revelations of his jaunts with $1,000-an-hour prostitute, acknowledged his participation in the sex ring for the first time.

Warming to New Ideas

“The insurance industry is the first in line to face the financial hazards related to climate change. Insurers must play a lead role in measuring the risks of climate change, and helping to mitigate those risks through their investments and product offerings.”

—Pennsylvania Insurance Commissioner Joel Ario, commenting on his decision to hold a forum on climate change and insurance.

Echoes of Wall Street

“Our financial performance in the third quarter was reflective of the condition of the global economic environment… While we recognize the impacts of the significant disruption in the securities markets on our investment operations this quarter, the company continues to generate strong cash flows from operations and maintains substantial balance sheet liquidity.”

—Terrence W. Cavanaugh, president and chief executive officer of the Pennsylvania-based Erie Indemnity Co., which despite underwriting gains, saw investment losses drag down profits by 92 percent. Third quarter results of other insurers saw similar trends, as Wall Street’s several months-old collapse began to show up on corporate balance sheets.

Seeing Red

“The storm was one thing, and we coped. This stress we’re going through now is worse than the storm itself.”

—New Hampshire resident Bill Moffitt, who is among the dozens of people who claim that red tape and foot-dragging by insurers have kept them from rebuilding their houses that were destroyed by a rare tornado three months ago. Insurance claims filed through the end of September show $6.3 million in damage to about 300 homes. Half that amount has been paid out.

Warning Labels

“I lost my whole livelihood and my love – my instrument.”

—Guitarist Diana Levine, the Vermont woman at the center of a Supreme Court case that could affect millions of businesses that face liability claims. Levine lost part of her right arm after receiving an injection of a Wyeth-made anti-nausea drug; she later won a $7 million lawsuit against the drug maker. Despite an FDA warning label, a jury found Wyeth should have given stronger warnings about the dangers of the drug. The Supreme Court will rule on the case later this year in a decision that could limit the ability of patients to sue and save drugmakers billions of dollars.