Declarations

March 12, 2007

Keeping it alive
“This is something that was taken away as a part of the worker’s compensation reform bill passed in the 2005 special session. My constituents still are frustrated and upset about this change. The problem is, if we’d taken it to a vote in committee and lost, under the new Senate rules it would have been dead for two full years.”

— Oklahoma State Sen. Debbe Leftwich, D-Oklahoma City, commenting on her withdrawal of a measure before the Senate Judiciary Committee that would have restored the right of employees to choose their own physician after being injured on the job. Leftwich said she was withdrawing Senate Bill 662 in order to keep the bill alive. She said 78 percent of Oklahomans are in favor of the right to choose their doctors. By withdrawing the bill, Leftwich said there would be an opportunity in the future to bring it to a vote.

After questions, a settlement
“Although there have been some questions, Great American acted reasonably and promptly throughout the claims adjustment process, and in full compliance with the terms and conditions of the insurance policy issued to the school district and all applicable insurance laws and regulations.”

–Arkansas Insurance Commissioner Julie Benafield Bowman, commending the Cabot School District and Great American Insurance Company in reaching a final settlement of the district’s claim for losses to the Cabot Junior High School building and its contents from an August 2006 fire. According to the Arkansas Insurance Department, under the terms of the settlement, the school district will receive $10 million for the building and approximately $2.1 million on the contents claim. Great American had previously advanced $7.3 million to the school district for the building claim and $1 million on the contents claim in the course of adjusting the claims. Great American had acknowledged liability under the insurance policy issued to the school district since the fire first occurred. However, during the course of adjusting the claim, issues arose between the school district and Great American as to applicable coverages and the appropriate measurement of damages covered by the policy, the insurance department said.

All about the numbers
“I think our deal, in essence, has been made. We’re just finalizing the numbers.”

–Jennifer Jones, attorney representing policyholders in a lawsuit against Citizens Property Insurance Corp., Louisiana’s insurer of last resort. According to the Associated Press, Jones, who is an assistant district attorney in Cameron, La., near the Texas border, said Citizens has agreed “in principle” to settle out of court with 165 policyholders in Cameron Parish who sued the insurer for refusing to cover damage from Hurricane Rita in September 2005. The deal reportedly would be the first of its kind in the state since hurricanes Katrina and Rita spawned thousands of lawsuits. Jones did not specify the terms of the proposed multimillion dollar agreement but said she also is trying to negotiate a separate settlement with State Farm Insurance Cos. on behalf of about 150 policyholders in Cameron.

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Insurance Journal Magazine March 12, 2007
March 12, 2007
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