MAINE ADOPTS ID THEFT LAW
Maine Gov. John Baldacci has signed a law that clarifies the process of cleaning up credit reports of people who become identity theft victims. The law takes effect later this year.
Rep. Carol Grose's clarifies that information that goes in a consumer's credit report as a result of identity theft is considered inaccurate data for purposes of the Fair Credit Reporting Act, and is subject to correction by the consumer reporting agency.
As refined by committee, the bill is more consistent with existing state and federal laws, the sponsor said. Passage of the legislation also puts Maine among seven other states that have enacted laws that go beyond federal procedures.
"Identity theft victims have to jump through all sorts of hoops just to regain control of their accounts and information," Grose said. "Victims don't deserve bad credit for a criminal's bad choices."
STANDARD & POOR'S IMPLEMENTS NEW WAY TO ASSESS INSURERS' CATASTROPHE RISK
Standard & Poor's Ratings Services said that its criteria for measuring catastrophe risk for primary insurers will be revised early in the second quarter of this year. (For reinsurers, there are no current plans to further revise these criteria.)
The revised primary insurer catastrophe criteria are not expected to affect any ratings immediately, but some companies could face negative rating actions if the new criteria reveal previously uncaptured or poorly managed catastrophe risk. Standard & Poor's will be discussing these changes in criteria and capital requirements with insurance companies to give them time to adjust their risk profiles in accordance with this new criteria. Traditionally, a six to 12 month phase-in period is allowed.
Standard & Poor's approach to measuring catastrophe risk has traditionally been based on premium charges. However, when the new criteria are implemented, primary insurance catastrophe risk will be based on exposure, such as a probable maximum loss figure that is both company-specific and based on net exposures as opposed to gross figures. The new criteria capital charge is also expected to be an aggregate probable maximum loss as opposed to an occurrence probable maximum loss. Specific details of the new criteria for primary insurers will be published no later than June 2006.
FLOOD-DAMAGED VEHICLES SURFACE ON USED CAR LOTS
An estimated 500,000 cars were damaged by hurricanes last year. Unfortunately, many of these vehicles have been purchased by dishonest auto dealers, cleaned up and then sold, with their flood damage history illegally hidden, according to the Insurance Information Institute.
To prevent this type of fraudulent resale of cars, the National Insurance Crime Bureau has been helping law enforcement groups and insurance companies identify and catalogue vehicles damaged by the 2005 hurricanes.
"By creating a registry of damaged vehicles that consumers can access when purchasing a used car, the potential for this type of fraud can be greatly reduced," said Robert Bryant, president and CEO of the NICB.
The NICB has compiled a database of vehicles affected by Hurricanes Katrina, Rita and Wilma, so used-car buyers can learn more about the history of the car and whether it has been involved in a claim related to Hurricane Katrina. Consumers can access at: www.nicb.org.
