Whether you want to blame the recent bombardment of tornadoes, hail storms and spring blizzards on global warming or just plain bad luck, the Midwest already has had more than its fair share in 2006.
The storm of March 12, that brought with it more than 100 tornados that swept through five Midwestern states and killed 10 people also brought in a record amount of insurance claims.
In Illinois, Gov. Rod Blagojevich has declared a state disaster in seven counties that were ravaged by a severe storm system. The most serious damage occurred in Springfield, the state capitol, where two tornadoes swept through the city and were followed by severe thunderstorms. The storm left a five-mile path of destruction in Springfield that damaged about 1,000 homes and caused massive power outages, including darkening the Illinois state capitol building.
In Missouri, one company said that 11,000 fire claims have been reported with 15,000 auto claims. Missouri, clearly the hardest hit by the storms, has been declared a catastrophe area. In Kansas claims numbers fell between 2,500 to 3,000 property claims and about 5,500 hundred auto claims. Those figures continue to rise and will be much higher when the recent snow storm damage claims are added to the overall tally.
Insurance catastrophe teams, agents and adjusters were reportedly on the scene quickly as insurance departments in the five state region issued bulletins giving victims phone numbers to help speed up the claims process. The reality is that catastrophes don’t occur only in coastal regions, but the process that makes a difference to the victims is the same no matter where the disaster takes place.
Two legislatures wrap it up
In other news, some state legislatures have already wrapped it up for 2006. Indiana’s short session produced a good number of insurance-related measures. Insurer groups are pleased with the results, although some described the session as a “knock-down, drag-out fight” to protect property/casualty insurance industry interests.
For example, HB 1307 made a minor change to what is known as the “Second Injury Fund,” a special fund that pays for total permanent disability in workers’ compensation claims. Assessments for workers’ compensation insurers will now be based on premiums rather than paid losses, a less complicated method of assessing costs.
Another bill allows the insurance commissioner to be appointed as an “agent of service” for issuing certain surety bonds and implementing modest deregulation of commercial insurance, such as the elimination of certain form requirements. While another measure that passed corrected a tax error that negatively impacted farm mutual companies.
South Dakota shut down for 2006 as well. Attention to social welfare issues overshadowed many insurance-related bills that were introduced, according to an assessment by one national insurance trade group.
But insurers claimed victory in defeating an unfair claims practices bill, HB 1046, introduced by the South Dakota Division of Insurance and HB 113 that would have restricted the use of global positioning system technology in motor vehicles.
Well that’s it for this time.
Topics Claims
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