FLORIDA'S UNCLAIMED PROPERTY PROGRAM NEARS $1 BILLION IN HOLDINGS FOR RESIDENTS:
At a bimonthly meeting with the governor and other state Cabinet members, Florida Chief Financial Officer Tom Gallagher announced that the Department of Financial Services' Bureau of Unclaimed Property is holding more than $970 million in cash and property belonging to Floridians. Money that remains unclaimed benefits Florida schools. Gallagher urged Floridians to search the state's online database of unclaimed property at www.fltreasurehunt.org to find out if the department is holding cash or property belonging to them. Floridians may also call 1-88-VALUABLE. "Floridians could be a mouse click or a phone call away from lost treasure," said Gallagher. The department returned nearly $50 million in the last six months, which is a 17 percent increase over the same period in 2002. Most of the property comes from dormant accounts in financial institutions, deposits paid to utility companies, insurance premium refunds, safe deposit boxes and trust holdings. In addition to cash and securities, the state's holdings include property such as watches, jewelry, coins, stamps and historical items. The Department of Financial Services began administering the program in 2003, following the merger of the departments of Insurance and Banking & Finance. To help locate owners of unclaimed property, the department conducts credit bureau searches and driver's license searches, participates in state fairs and other community events, and advertises on radio and television. The department has also reached out to local school superintendents to assist them in claiming property. Recently, one Floridian was reunited with his lost belongings after three years of searching. The man, who traveled from the Tampa Bay area to collect his property, was dismayed to find out that after his bank was sold and his local branch office was demolished, more than $50,000 worth of family heirlooms were lost in the shuffle. Finally, after his unclaimed safe deposit boxes were transferred to the state, his property, which included a 15ct. diamond bracelet and more than 200 gold coins, was returned to him when department employees identified him as the owner. "This gentleman was lucky. Every year 98 percent of abandoned or lost safe deposit box items go unclaimed," said Gallagher. "And there are millions more in cash receipts waiting to be claimed by Floridians." In another success story, more than $160,000 was paid to the Florida School for the Deaf and Blind in June. The money was discovered through the Department of Financial Services' unclaimed property program as having been held in trust for the school since 1995. The St. Augustine school is a state-funded public boarding school for eligible hearing-impaired and visually-impaired students, pre-school through 12th grade. Unclaimed property held by the state is deposited into the state School Trust Fund until it is claimed by its rightful owner. Items from abandoned safe deposit boxes are auctioned annually, but the proceeds are always available for the owners to collect.
MISSISSIPPI NOTES FIRE PROTECTION DISTRICT UPGRADE:
Insurance Commissioner George Dale announced that the Mississippi State Rating Bureau has upgraded the public fire protection facilities of the Tippah County Industrial Park Fire Protection District in Tippah County. "Upgraded fire classifications mean better quality fire protection in that fire district, as well as lower premiums for the homeowners living there," said Dale. Individual property fire rates are also determined by such factors as specific construction, occupancy, private protection, and exposure from adjacent buildings. Since 1988, Dale and the Mississippi Department of Insurance (MDOI) have focused on improving fire protection statewide by expanding the number of rural fire departments and enhancing their capabilities. There are now 210 rated fire districts in Mississippi. The number of fire departments has increased from 350 in 1988 to 765 today, while the number of firefighters statewide has increased from 5,000 in 1988 to 15,000 in 2002. Since 1995, the Rural Fire Truck Acquisition Assistance Program (RFTAAP) has distributed nearly $17 million in state funds towards the purchase of 341 new fire trucks by cities and counties whose fire departments primarily serve rural and suburban areas. One in three Mississippians now receive protection from a fire department that has purchased one or more trucks through RFTAAP. Working with local governments, MDOI has provided fire ground training and administrative know-how along with seed monies to improve the quality of fire protection services statewide. The net result of these efforts: 1.3 million Mississippians have improved their insurance class since 1995. "The state's $17 million public investment easily generates more than that amount in savings to homeowners on their insurance premiums each year," added Dale. An improvement in district rating from a Class 10 to a Class 9 can lead to as much as a 24 percent reduction in homeowners insurance premium, while an upgrade to a Class 8 can add an additional 20 percent savings.
ALABAMA WORKERS' COMP FUND WOULD REPORTEDLY BENEFIT FROM ASSESSMENT INCREASE:
With the Alabama Insurance Guaranty Association (AIGA) facing unprecedented budgetary shortfalls, the state's employers and injured workers could reportedly be left with unpaid claims in the event of insurer insolvencies unless the fund can increase assessments on insurers writing comp business. "Even in financially tough times, insurers operating in Alabama want to step up to the plate and not leave the state's employers and injured workers holding the bag for unpaid liabilities," said William Stander, regional manager for the Property Casualty Insurers Association of America (PCI). "Because of current and potential insurer insolvencies and the instability of the guaranty fund, this is a very real possibility unless the AIGA is allowed to increase assessments," added Stander. The AIGA, which pays policyholder claims when a workers' comp insurer becomes insolvent, is currently facing a shortfall that could leave the fund unable to meets its obligations, according to Stander. Last year insurers supported H.B. 577, a bill that would allow the AIGA to increase its assessments from 1 percent of an insurer's net premium to 2 percent for a period of five years. However, political wrangling stalled the bill in the legislature. By law, states are required to have a guaranty fund that will pay the policy claims of insolvent insurers. Such funds are supported by assessments on solvent insurers doing business in the state. In a worst-case scenario, if claims on a guaranty fund outstrip its assessment capability, injured workers could reportedly find their claims pro-rated, delaying receipt of due compensation and even reimbursement for needed medical care. "The two-percent cap is consistent with laws in most other states, and is recommended by a model bill adopted by the National Association of Insurance Commissioners (NAIC)," said Stander.
SOUTH CAROLINA HOMEOWNERS RATE MODERNIZATION BILL CLEARS FIRST HURDLE:
The South Carolina Senate Banking and Insurance Committee recently approved a flex rating bill supported by the American Insurance Association that would reportedly eliminate prior approval for homeowners insurance rates. SB 686, as amended, would institute an initial flex-rating approach for personal property insurance rates, in which insurers, within 30 days of a filing, would be able to increase or decrease rates within a 10 percent band above or below the current rate without approval (this is the same as South Carolina's current personal lines auto law). This system would then transition into a "use-and-file" method for homeowners rates, effective January 2007, provided the insurance director certifies there is a competitive market. "South Carolina will be a more attractive marketplace for insurers with the passage of SB 686," said Raymond Farmer, AIA southeast region assistant vice president. "Flex rating moves the regulatory system toward a more competitive homeowners insurance market, which should benefit consumers by giving them more choices." SB 686, an initiative of South Carolina Insurance Director Ernst Csiszar, who worked with the insurance industry in crafting his proposal, was introduced during the 2003 session by Republican Sen. David Thomas. As with all regulatory modernization proposals, AIA has measured SB 686 against its core national regulatory reform principles. According to the AIA, it is clear that this bill will move the regulatory system in South Carolina toward a more market-based approach. The National Association of Mutual Insurance Companies (NAMIC) praised committee members for passing Senate Bill 686 out of committee. "This bill, which follows principles outlined in the model law developed by the National Conference of Insurance Legislators, should make homeowner's insurance rates more competitive in South Carolina, and is likely to encourage more insurers to want to do business there," said NAMIC State Affairs Manager David Reddick. Reddick also commended Csiszar for his leadership in promoting this rate modernization legislation, both in his home state and now as president of the National Association of Insurance Commissioners.
