FLORIDA
Fla. CFO: “Prepare Now for Hurricanes”
After an un-precedented hurricane season last year and experts predicting the formation of more than 13 named Atlantic storms this season, Florida’s Chief Financial Officer Tom Gallagher has issued a warning to prepare now. The official start of hurricane season was June 1 and it ends Nov. 30.
Gallagher advised Floridians to take steps to strengthen their homes to better protect their families and properties and reduce the level of catastrophic losses. “It pays to better protect your home from a hurricane,” Gallagher said.
He also suggested nine storm-preparation tips: 1) Don’t wait until the last minute to buy coverage. 2) Know whether your policy pays the “replacement cost” or “actual cash value” for a covered loss. 3) Be sure you know what your deductible is for hurricane losses. 4) Consider your law and ordinance coverage. 5) Inventory your household items, including receipts, purchase dates and serial numbers. 6) Write down the name, address and claims-reporting telephone number of your insurance company, which may differ from your agent’s contact information. 7) When a hurricane threatens, take action to protect your property. 8) Remember to withdraw money BEFORE a pending natural disaster. 9) Keep materials such as plywood and plastic on hand in case you need to make temporary repairs after a storm.
Gallagher to Run for Governor
CFO Tom Gallagher is running for governor in 2006 on a platform stressing education, public safety, economic development and preserving families.
Gallagher is the first person to serve as Florida’s Chief Financial Officer, a position combining the treasurer and comptroller posts, and which oversees the Office of Insurance Regulation.
Gallagher has served in state government for more than 30 years, including 12 years in the Legislature. Before becoming the state’s CFO in 2002 he was elected insurance commissioner and education commissioner.
This will be Gallagher’s third run for governor. He lost a primary to Bob Martinez in 1986 and to Jeb Bush in 1994.
Republican Attorney General Charlie Crist also announced he is running for governor and Lt. Gov. Toni Jennings is also thinking about getting in the race. Early polling has shown Crist and Gallagher far ahead of Jennings, with both receiving nearly the same amount of support.
Democratic candidates include former state party chairman Scott Maddox, U.S. Rep. Jim Davis and state Sen. Rod Smith.
Maddock Makes Pledge to ‘Rein in Insurance Companies’
A pledge to “rein in insurance companies, loosening the grip of powerful corporate lobbyists and keeping government from extending its reach into our homes and hospital rooms,” launched Scott Maddox, former chairman of Florida’s Democratic Party into the race to succeed Republican Gov. Jeb Bush.
Maddox, 37, served as Tallahassee mayor before taking over the party two years ago. He stepped down after a dismal election in November, when Florida’s Democrats failed to deliver the state for John Kerry and lost a Senate race.
DFS Reports Town Meeting Results
Almost 3,000 Floridians attended seven town hall meetings held between March 2 and April 9 around the state in hard-hit hurricane areas, CFO Tom Gallagher issued a report showing more than 62,000 storm victims have been assisted.
The Department of Financial Services received 31,000 applications for reimbursement and according to the report, to date, 25,500 applications have been approved totaling $41.2 million. The average amount approved for a payment is $1,600. Of 31,000 applications, 117 condominium and homeowners associations applied for reimbursement with $4.5 million paid. DFS said approximately 1,600 applications are pending until more documentation is supplied.
A status update of consumer files opened at the meetings shows: March 2, Pensacola, 137 files opened, 129 files resolved/awaiting mediation; March 10, Sebastian, 63 files opened, 51 resolved or awaiting mediation; March 12, Punta Gorda, 99 files opened, 94 resolved or awaiting mediation; March 19, Orlando, 23 files opened, 22 resolved or awaiting mediation; April 2, Ft. Pierce, 87 files opened, 74 resolved or awaiting mediation; April 7, Jupiter, 68 files opened, 49 resolved or awaiting mediation; and April 9, Bartow, 27 files opened, 22 resolved or awaiting mediation.
Insurers Request Rate Increases
After the voluntary moratorium on rate increases ended three companies, St. John’s, USAA and Atlantic Mutual filed requests to increase their homeowner’s rates. Florida Office of Insurance Regulation records show 11 insurance companies have raised their homeowner’s rates an average of 15 percent since the last hurricane season.
The rate hike request for USAA, the state’s fifth largest insurer, ranges up to a 33.4 percent increase for Monroe County.
The state Office of Insurance Reg-ulation has 90 days to approve or reject the rate hike requests.
TENNESSEE
Esurance Moving In
Esurance has expanded its auto insurance program into the $2.5 billion Tennessee market according to Gary Tolman, president and CEO. The direct-marketer is especially interested in the Memphis and Nashville markets.
Tolman indicated Esurance’s goal is to stand out in the competitive U.S. auto insurance market by offering a personalized Internet-based system. The company believes that it achieves this because its focused on-line service makes auto insurance shopping easier for consumers through providing fast quotes online.
Using what it calls a “unique customer interface,” Esurance claims to offer its clients a wide array of discounts, including discounts for drivers insuring more than one car and for students. The company also offers discounts for drivers who own their own homes and/or pay their auto insurance premium in full.
WEST VIRGINIA
State Farm Rate Reduction Approved
A State Farm Insurance request for a
10 percent decrease for private passenger automobile insurance customers has
been approved by the West Virginia Insurance Commis-sion. The request was submitted last month to Gov. Joe Manchin and the Insurance Commis-sion.
According to West Virginia Insurance Commissioner Jane L. Cline, State Farm’s new rates go into effect July 8. The company lowered its auto rates due to recent insurance and civil justice reforms passed by the West Virginia Legislature.
State Farm Insurance is the largest property and casualty insurer in West Virginia.
Topics Florida Catastrophe Carriers Auto Legislation Virginia Hurricane A.J. Gallagher West Virginia
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