Minn. Bridge Collapse Funds Flow

Minnesota Gov. Tim Pawlenty announced that the amount available in near-term relief for victims of the I-35W bridge collapse is increasing from $10,000 to $20,000 per claimant. The increase is based on the amount of funds available after initial claims were processed. In November, the Governor and the co-chairs of the Joint House-Senate Subcommittee on Claims, Senator Ron Latz (DFL-St. Louis Park) and Rep. Dennis Ozment (R-Rosemount), announced the availability of up to $1 million in existing state tort claim funds to individuals who lost wages as a result of the collapse of the I-35W Bridge on Aug. 1, 2007. Spouses of those killed in the collapse are also eligible to apply for funds. More than $70,000 from the “I-35W Emergency Hardship Relief Fund” has been paid to 13 claimants, four of whom received the previous maximum of $10,000. Payments of $20,000 will now be available per claimant and will continue to be based on lost wages due to physical injury or death. The Governor’s Office and legislators continue to work on a plan for consideration during the 2008 legislative session to create a special victims fund that would provide additional support for victims of the bridge collapse and their families. Individuals seeking funds from “I-35W Emergency Hardship Relief Fund” have been and will use the existing claims process that involves the Department of Administration’s Risk Management Division and their claims adjusters to process claims. The Risk Management Division is notifying victims regarding the increased amount. Payments from the I-35W Emergency Hardship Relief Fund would not be an admission of any liability and would not be admissible in any adjudicatory proceeding. Payments would be offset against any future recovery from the State.

La. Gov. Updates Dangers to FEMA Trailers

Louisiana Gov. Bobby Jindal has released the following statement in response to the Center for Disease Control’s (CDC) and the Federal Emergency Management Agency’s (FEMA) announcement that they have discovered high levels of formaldehyde in FEMA trailers in New Orleans and along the Gulf Coast:

“Almost a year ago, I called for congressional hearings to investigate whether Gulf Coast hurricane victims were allowed to live in FEMA trailers and mobile homes with dangerously high levels of formaldehyde. I directly asked FEMA Administrator David Paulison why it took the agency more than a year to act on the complaints they had received from residents suffering from health problems in these trailers. “It is simply inexcusable for FEMA to have a one to two year delay in addressing the serious health issues of these men and women along the Gulf Coast who have already suffered from the devastation of the 2005 hurricanes. When the health of our people and our children and our families is at stake we cannot afford to wait, we cannot decide that we have to do more studies and conduct further analysis. The federal government must act. “FEMA’s announcement today that trailer residents should leave as soon as possible and especially before the ‘weather warms up’ in the summer and further increases formaldehyde levels is serious and it should be taken seriously by everyone. However, the incredible delay in taking this action has most likely elevated the negative health impact of high formaldehyde levels on trailer residents and this reality should be met with an aggressive response. “I am calling on the federal government to fulfill its obligation to Gulf Coast residents living in emergency housing and address the effects of their prolonged exposure to high levels of formaldehyde. The contamination of these FEMA trailers is no longer in question. Now it is time for the federal government to act and ensure residents living in these trailers are given the medical treatment they may need. “I am also calling on the federal government to provide more details on its plan to relocate these up to 36,000 residents currently living in emergency housing along the Gulf Coast. It is imperative that there is a system in place that not only provides the necessary funding for these individuals to afford alternative housing, but also works to coordinate their move and immediately connect them to housing options. The federal government must provide adequate housing and medical treatment as soon as possible. These people have already been the victims of a natural disaster, and now they are the victims of a manmade disaster.“The time for studies, research, disagreement and debate is over. Now it is time to provide the residents of these trailers and temporary homes with the medical attention they need and the alternative housing they require. Nothing short of aggressive and immediate action is acceptable.”

British Assoc. Reveals Customer Survey

The ABI (Association of British Insurers) has published the results of the Customer Impact Survey 2007-08. The Survey, which measures customer satisfaction with and experience of the life insurance, pensions and investment industry, is now in its second full year, with 32 companies and almost 20,000 customers taking part. The latest results show that overall satisfaction with the long-term insurance industry remains high, with 85 percent of consumers stating that their provider ‘treats customers fairly.’ A majority of people, 53 percent, agreed that the industry has an excellent reputation, up from 48 percent last year. But room for improvement remains, in particular on complaints handling. While only 3 percent had cause to complain to their provider, 57 percent of these felt that their complaint had been handled poorly. “Despite the fact that this year’s Customer Impact Survey was carried out at a time of economic uncertainty, when consumer confidence overall had dipped, the results show that the insurance industry is making some progress in improving customer experiences. The industry recognises that Customer Impact Scheme is a long-term undertaking and that it will take time for the full effect of the industry’s work to be seen," said Maggie Craig, ABI director of Life and Savings.

Mass. Unveils Site for Auto Information

Massachusetts has launched a Web site that allows consumers to compare sample auto insurance premiums, helping them find the best deals as the state’s new managed competition system shifts into high gear. February marks the start of the policy renewal process and, for the first time in 30 years, auto insurers can now offer lower rates to good drivers, more product choices and better services. The Division of Insurance estimates that responsible drivers across Massachusetts can save at least 10 percent on their 2008 auto insurance premiums. Available at www.mass.gov/autorates, the Division of Insurance portal shows consumers the range of prices and discounts they may qualify for and tells them how to contact insurance companies and agents directly for quotes. Consumers can generate a list of sample premiums by providing their zip code, number of years licensed, the type of vehicle they drive, their driving records and coverage levels.

Chubb Unveils New Filmmaking Policy

A new film producers risk policy from the Chubb Group of Insurance Companies (www.chubb.com) addresses the enormous advances in filmmaking during the past decade. The policy helps pay for the additional costs to complete a production when it is interrupted or has to be re-shot as a result of specific causes. And unlike traditional film policies, which reportedly insure certain losses only through principal photography, Chubb's Film Producers Risk policy extends protection through post production.

Among the additional costs that are insured by the new policy are those that are caused by:

• Loss or damage to any medium or device used to record or store sounds or images;
• Damage to property used in the production;
• Mechanical breakdown of equipment, animatronics, boats, aircraft, etc.;
• Illness or injury of cast members or their immediate family;
• Loss of power, communication or other utilities or services; and
• Seizure or quarantine of property by government or military authority.

The policy also protects against the cost of repairing or replacing lost or damaged property, including production equipment, props, sets, wardrobe and animals, and the producer's legal liability for damage to property of others.

Available for producers of feature films, television, commercials, music videos, educational or corporate films, the policy features enhancements such as:

• Cast insurance without age or childhood disease exclusions;
• A blanket limit for undeclared cast or crew members;
• Insurance for damage to media from X-rays, magnetic fields or temperature extremes; and
• Insurance for losses caused by malicious computer programming.

Travelers Companies Notes Court Decision

The Travelers Companies Inc. announced Tuesday that the U.S. Court of Appeals for the Second Circuit has vacated the March 2006 decision of the U.S. District Court for the Southern District of New York that had approved Travelers' previously announced settlements of statutory and common law asbestos-related direct action litigation. The settlements are subject to final court approval of an order that enjoined further direct action litigation against certain Travelers entities. The Second Circuit's decision found that the court originally issuing that order did not have the jurisdiction to do so. Travelers is currently analyzing the Second Circuit's opinion to determine whether to pursue further appellate proceedings. In addition, other parties may seek further appellate review of the ruling. Travelers will not make an adjustment to the level of its asbestos reserves as a result of the Second Circuit's decision. Accordingly, the decision does not impact Travelers' earnings. Travelers said it would have preferred the finality afforded by the settlements and related injunction. However, since Travelers entered into the settlements, there have been court decisions upholding defenses similar to those asserted by Travelers in the common law direct action litigation. In addition, the asbestos litigation environment has improved generally over the past several years. As a result, Travelers' current outlook for the overall direct action litigation is more favorable than it was when Travelers entered into the settlements. If the Second Circuit's decision becomes final, the settlements will become voided and Travelers intends to litigate the direct action cases vigorously.

Aon Corp. Power Brokers Named

Risk & Insurance Magazine has recognized 41 risk management executives from Aon Corporation as "Power Brokers™" in the publication's annual list of the most influential commercial insurance brokers. Published in the February 2008 issue, Risk & Insurance Magazine (www.riskandinsurance.com) recognized 151 people in 28 industry categories. Aon executives took top honors in 22 categories -- highlighting the company's breadth of expertise and its unique ability to provide distinctive client value. Among the 2008 list were seven Aon executives named Power Brokers for the third time. They are Peter Breitstone, an authority in the environmental industry; automotive experts Carol Williams and Anthony DeFelice; James Beardsley, a transportation-railroad specialist; Marshall Nadel, a utilities expert; technology expert Michael Lamprecht; and education specialist Anne Mulholland.

Fla. Commissioner Files Allstate Complaint

Florida Insurance Commissioner Kevin McCarty announced that the Office of Insurance Regulation (Office) has filed an administrative complaint on a non-emergency basis seeking to suspend the certificates of authority of the Allstate Companies (Allstate) to write new insurance policies in Florida. The complaint is based in part on Allstate's reported failure to provide witnesses and documents as subpoenaed by the Office; falsely labeling subpoenaed documents as trade secret and falsely certifying its rate filings. Allstate was to have provided all appropriate company documents related to the Office's investigation at or before the Jan. 15 hearing. Instead, in late November, Allstate filed 51 pages of objections to the subpoenas. Allstate has been delivering documents to the Office since the Jan. 15 hearing, but has reportedly not delivered all documents requested by the subpoenas and is maintaining claims of privilege to some of the documents. The Office has been asking for documents about Allstate's reinsurance program, its relationships with risk modeling companies, insurance rating organizations and insurance trade associations. The subpoenas also required appropriate witnesses to appear at the January hearing to be able to discuss issues that were subjects of the subpoenas. The complaint also alleges that Allstate has violated Florida law by not properly certifying its rate filings as required by House Bill 1A, which passed in January 2007. Filing the complaint is required under Florida law as part of the process that began when Commissioner McCarty issued the Immediate Final Order (IFO) Jan. 17, suspending Allstate from writing any new business in Florida. Allstate is expected to request an administrative hearing on the Office’s complaint. If requested, a hearing would be held at the Division of Administrative Hearings (DOAH). An administrative law judge will hear the evidence and then make findings of fact. Commissioner McCarty could then issue a Final Order, which may include a suspension of Allstate's certificates of authority. Allstate could then appeal to the First District Court of Appeal. The DOAH hearing is separate from the ongoing matter that Allstate initiated in the First District Court of Appeal (DCA) by filing its Jan. 17 notice of appeal of the commissioner’s IFO. That matter is still proceeding in the DCA.

The Order would apply to all Allstate companies on which the subpoenas were served:

• Allstate Floridian Insurance Co.
• Allstate Indemnity Co.
• Allstate Property & Casualty Insurance Co.
• Allstate Insurance Co.
• Allstate Floridian Indemnity Co.
• Allstate Fire and Casualty Insurance Co.
• Encompass Insurance Co. of America
• Encompass Indemnity Co.
• Encompass Floridian Insurance Co.
• Encompass Floridian Indemnity Co.

Wis. Commissioner Reminds of Ice Dams

As snow continues to fall throughout Wisconsin, Insurance Commissioner Sean Dilweg urges residents to pay attention to their roofs to prevent home damage caused by ice dams. Ice dams form when melting snow runs down the slope of the roof and refreezes near the edge. As more snow melts and runs down the roof, water builds up behind the ice dam and may seep into the home, damaging walls, carpeting and cabinets. "The amount of snow we've received this year has created perfect conditions for ice dams," said Dilweg. "It's important for homeowners to watch for ice dams and work to prevent them before they become an issue."

Dilweg offers the following tips for preventing ice dams:

• Remove the snow from the bottom portion of your roof using a "roof rake" or a push broom. Do not climb on the roof.
• Limit the number of times you remove the snow to save your shingles from becoming damaged.
• Avoid chipping away at the ice as this can cause further damage to your roof and shingles.
• Make sure your gutters are clear of leaves and other obstructions to allow for water to flow freely to the ground.
• Keep your attic well ventilated. The colder your attic is, the less melting and refreezing will occur on your roof.
• Keep the attic well insulated from the rest of the house to minimize the amount of heat rising through the attic from within the house.
• Check with a professional contractor to do an in-home evaluation.

"It is also beneficial to periodically review your homeowner's insurance policy to make sure you have sufficient coverage to protect your assets," Dilweg added. For information about filing an insurance claim after an ice dam has caused damage to your home, contact your insurance agent or company.

Max Specialty Now in Louisiana

Stephen Vaccaro, Jr., president and chief executive officer of Max Specialty Insurance Company (www.maxspecialty.com), an excess and surplus lines company headquartered in Richmond, Virginia, announced that, with the addition of Louisiana, Max Specialty is now an eligible surplus lines insurer in a total of 46 states. "The addition of Louisiana as a state in which Max Specialty may now write surplus lines business is a further step toward our goal of establishing Max Specialty as a leading U.S.-based excess and surplus lines company. We are continuing to seek approval as an eligible surplus lines insurer in other states," Vaccaro said. Max Specialty is licensed as an admitted insurer in Delaware and is a subsidiary of Max Capital Group Ltd. Max Specialty, the excess and surplus lines platform of Max Capital Group Ltd., operates across three divisions: Brokerage, Contract Binding and Marine, offering property, ocean and inland marine, casualty, excess liability and umbrella insurance products.

N.Y. to Host Flood Summit Feb. 28

New York Gov. Eliot Spitzer announced that a summit for state and local officials will be held in Binghamton on Feb 28 to explore issues regarding the repetitive devastating flooding that has occurred in various regions of the state over the last three years, threatening the safety of residents and causing hundreds of millions of dollars in damages. “Last year, I made a promise to convene a summit to discuss a variety of issues associated with flooding, such as watershed management, state and local response activities and ways we can better protect our citizens and property,” said Gov. Spitzer. “Now is the appropriate time to begin these discussions, but the fact is that the state cannot do this alone. We must work together with local governments to seek best practices and develop an overall statewide strategy. That is why I have asked Michael Balboni, the state’s Deputy Secretary for Public Safety, to lead the Flood Summit and to begin the process by engaging state and local officials in an active discussion and explore solutions to this ongoing problem.” Over the last four years, nine flood events occurred in New York resulting in major federal disaster declarations. The cost of these events was staggering with nearly $500 million spent for emergency response and repairs to the public infrastructure alone. The summit will begin at 8 a.m. on Thursday, Feb. 28, and will run until approximately 1:15 p.m. It will be held at the Binghamton Regency Hotel at 1 Sarbro Square in Binghamton. The entire proceeding will be webcast over the New York State Emergency Management Office (SEMO) Web site at http://www.semo.state.ny.us.

Ohio BWC Names Mazzotta COO

Ohio Bureau of Workers’ Compensation (BWC) Administrator Marsha Ryan has selected Raymond Mazzotta as chief operating officer (COO) for the agency. Mazzotta possesses more than 30 years experience in the insurance industry, serving in senior leadership positions for the past 25 years. Mazzotta most recently served as president and CEO of OHIC Insurance Company, located in Columbus. At BWC, he will oversee the agency’s Fiscal and Planning Division, Customer Services Division, Medical Services Division and the Infrastructure and Technology Division. Mazzotta began his duties as COO on Feb. 4.

Ala. Fire Deemed Arson

A recent warehouse fire in Florence, Alabama that caused more than $1 million in damage has been classified as an arson, State Fire Marshal Ed Paulk said. "The evidence collected at the scene clearly points to arson," Paulk said. "We have set up a task force of federal, state and local officials to investigate this fire." The warehouse, located on Forrest Avenue, was home to Southern Pipe and Supply, a plumbing supply operation. The building was built in the early 1960s and previously served as a soft drink bottling plant. The building and contents were a total loss.

Tenn. Storm Recovery Continues

In less than two weeks since President Bush declared a major disaster for the state of Tennessee, significant amounts of federal aid have begun to flow into the affected areas. Families and individuals who suffered damage from the tornadoes and severe storms of Feb. 5-6 have been approved to receive $1,360,237 in assistance from the U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) and the state of Tennessee. Under the federal disaster declaration, renters, homeowners and businesses in Benton, Hardin, Hickman, Houston, Lewis, Macon, Madison, Montgomery, Perry, Shelby, Sumner, Trousdale and Williamson counties are eligible to apply for disaster assistance. "We are encouraging anyone in the declared counties who suffered damage in these storms to apply with FEMA, whether they have insurance or not,"said Gracia Szczech, the federal coordinating officer for this disaster. "Even if their insurance covers most of the damage, there are other types of assistance and services that FEMA and the state of Tennessee can offer disaster victims.”

Pair of Insurers Refund Colo. Customers

Two insurance companies have refunded nearly $5.7 million to Colorado customers affected by billing and record-keeping errors, state officials said recently. Anthem Blue Cross Blue Shield has restored nearly $3.2 million to more than 7,200 holders of its health insurance policies, while Hartford Financial Services Group has returned more than $2.5 million to holders of its commercial automobile insurance. Refunds from the company averaged about $540 per policyholder, though some obtained up to $20,000. "These errors, while not intentional, harmed consumers and businesses, by imposing costs on consumers where there should not have been costs," Colorado's Commissioner of Insurance Marcy Morrison said. "I'm relieved that both companies are taking steps to restore monies owed to their customers and to prevent this from happening again." Errors in records and claim processing at Anthem Blue Cross Blue Shield reportedly occurred after the company adopted a new computerized claims-processing system in the summer of 2006, the agency said. Hartford Financial Services Group refunded money after discovering that nearly 5,000 policyholders were overcharged for years on insurance premiums that incorrectly included no-fault insurance. Colorado's no-fault law was repealed in July 2003. Hartford Casualty Insurance Company, Hartford Fire Insurance Company, Hartford Insurance Co. of the Midwest, Hartford Underwriters Insurance Company and Twin City Insurance Company were involved in the refunds.