Declarations

A Negative Impact

“A return to the failed FAIR and Coastal Plans could have a serious, detrimental impact on the state’s private insurance market and leave thousands of properties at risk.”

—John Marlow, assistant vice president for state affairs for the insurer trade group, the American Insurance Association (AIA), testified before a Louisiana legislative panel that efforts to abolish Louisiana Citizens Property Insurance Corporation (Citizens) are misguided. A commission on streamlining state government in late December 2009 recommended shuttering the state-run property insurer of last resort. Dissolving Citizens, which also serves as the state’s windstorm insurance residual market, and reconstituting it as a FAIR and Coastal Plan could only have a negative impact on insurance availability and costs, the AIA said.

Holdovers

“People at these five companies are not leaving the companies to go elsewhere. … There is a striking number of holdovers.”

—Kenneth Feinberg, a Washington lawyer who was appointed last year to oversee pay at firms receiving taxpayer bailouts, in late March slashed pay again at five U.S. firms that still depend on a government lifeline, but said the clampdowns are not sending talented workers fleeing for the exits. The 2010 pay for the highest-earning employees at those firms was cut by15 percent on average, compared to 2009. Cash pay was cut 33 percent on average, the Treasury Department said. The firms are AIG, General Motors, GMAC, Chrysler and Chrysler Financial. The Treasury, where Feinberg’s office is housed, said about 84 percent of the top earners are still with their firms despite having their pay dramatically cut back. Reuters

Information and Data on Demand?

“Without this amendment, the proposed Office of National Insurance (ONI) would have inadvertently had the ability to require countless agents and brokers to produce any data and information demanded by ONI.”

—Robert Rusbuldt, Big “I” president and CEO. The Independent Insurance Agents & Brokers of America (Big “I”) reported progress in an effort to modify a proposed federal financial services regulation bill passed by the Senate Banking Committee. Lobbyists for the Big “I” were pleased that an amendment, filed by Sen. Tester (D-Mont.), which clarified that the definition of “insurer” for mandatory data collection does not include insurance agents and agencies, was attached to the act. The amendment makes it clear that only entities that issue contracts and write insurance or reinsurance are to be included.

Topics Agencies