ORE. DRIVERS SEE LESS IN AUTO PREMIUMS:
Oregon drivers are reportedly spending less than the national average for personal automobile insurance, according to a recent report comparing premiums nationwide. The estimated average expenditure per insured vehicle for personal auto insurance in Oregon was $682 in 2002, compared with the national average of $774. The report is prepared annually by the National Association of Insurance Commissioners (NAIC), which is comprised of state insurance regulators. According to the NAIC report, New Jersey drivers paid the most for auto insurance in 2002 with an estimated average expenditure of $1,113, more than twice the cost in North Dakota, which had the lowest average expenditure ($533). Oregon auto insurance costs in 2002 were less than California ($778) and Washington ($788), but higher than Idaho ($560).
WASH. BUSINESS COSTS RISING:
The WashACE annual report that lists key indicators of the state's business climate in relation to other states reportedly shows that, despite signs of the slowly recovering state economy, Washington has fallen in several areas critical to keeping local business competitive. Produced by the Washington Alliance for a Competitive Economy (WashACE), the 2005 Competitiveness Redbook reports data gathered on factors that contribute to economic growth, employment and quality of life in Washington. To rank Washington's appeal as a place to do business, the report notes such categories as tax foundation estimates, R D per capita, airport on-time performance and percentage of roads in need of repair. According to the Redbook report, Washington is the top exporting state on a per-capita basis in the nation, remains in the top five in venture capital investments, and is in the top 15 in net jobs added--all signs that the state economy is on the mend. Other advantages include a well-educated population, and comparatively moderate and uniform property taxes. But other factors are less encouraging, including the costs related to workers' compensation coverage. In the category of the cost of doing business--where Hawaii is noted as the most expensive state (with a mean index of 134)--Washington ranks eighth with a mean index of 107.9, just behind such states as California, Massachusetts and New York. Washington leads the nation in unemployment insurance taxes at a $695 average cost per employee, and is ranked sixth in unemployment insurance benefits. It ranks 40th in the annual average investment per employee in manufacturing. Washington also has the nation's highest minimum wages, and its workers' comp costs continue to move up sharply reportedly because of increased time-loss benefits caused by recent Supreme Court decisions, and actions taken by the legislature in 1993.
ISO: INSURERS WILL PAY ESTIMATED $3.245 BILLION ON HURRICANE JEANNE CLAIMS:
U.S. property/casualty insurers are expected to pay homeowners and businesses an estimated $3.245 billion for insured property losses from Hurricane Jeanne, according to preliminary estimates by ISO's Property Claim Services (PCS) unit. Hurricane Jeanne struck Puerto Rico on Sept. 15 before moving into Florida on Sept. 25. It then moved across the state on a northwestward track and struck nine other states as far north as New York as a tropical storm. In all, Jeanne produced nearly 385,000 claims for destroyed or damaged insured homes, cars, boats and businesses. At $2.785 billion, Florida sustained the highest insured losses followed by Pennsylvania ($145 million), Georgia ($105 million), South Carolina ($45 million) and New York ($35 million). Florida residents and businesses are expected to file 297,000 claims--more than three-quarters of the total claims insurers will pay for Hurricane Jeanne. Jeanne was the fourth major hurricane to strike the U.S. within a six-week period between August and September. Taken together, the four hurricanes--Charley, Frances, Ivan and Jeanne--have caused an estimated $20.485 billion in insured losses with an anticipated total of 2.1 million claims. PCS will resurvey insurers in 60 days as more claims are filed and existing claims are closed.
WY. HEALTHCARE LAUDED BY CARH:
The Wyoming Healthcare Commission was lauded by the Coalition for Affordable and Reliable Healthcare (CARH) for reportedly showing evidence, once again, that capping noneconomic damages in medical malpractice cases will reduce malpractice costs and stop the nation's growing healthcare crisis. According to its study, capping noneconomic damages at $250,000 could lead to a 15 percent reduction in malpractice losses. This reportedly represents a tremendous drop in costs that are forcing many doctors to close their doors in Wyoming due to skyrocketing malpractice insurance expenses. "Too many Americans can't find quality healthcare because runaway jury awards are driving malpractice liability insurance costs higher and forcing doctors to shut their doors," said John Thomas, president of CARH. "This report proves that capping noneconomic damages has a very real effect in lowering overall malpractice costs." Wyoming is among 20 other states identified by the American Medical Association (AMA) as a healthcare crisis state because high malpractice costs are driving doctors away. This leads to more and more patients who are losing access to healthcare due to a shortage of physicians. Average malpractice awards have reportedly tripled to $3.5 million since 1994, driving medical liability insurance premiums up over 500 percent. In 2001, 12 juries awarded verdicts over $20 million, including a $269 million judgment in Texas. The cost of America's tort system is reportedly predicted to go from $200 billion last year to $300 billion by 2005.
TRIA EXTENSION UNCERTAIN:
Insurers doing business in urban areas need to examine their business plans to make sure they understand how both the federal Terrorism Risk Insurance Act (TRIA) and unfair discrimination law could affect their business, according to the Urban Insurance Partners Institute (UIPI). "We advise companies to create an ongoing compliance team that reviews policies and endorsements," said Mike Trier, partner at Lord, Bissell & Brook, a Chicago-based law firm. "Since the reauthorization of TRIA for periods after Dec. 31, 2005, is still uncertain, it is important to prepare now for both a hard and soft landing when TRIA terminates." UIPI President Suzanne Reade said, "TRIA was meant to be a temporary solution, and we understand that TRIA's congressional backers are reluctant to extend the program beyond 2007. Companies should make sure that in an effort to limit their long-term exposure, they don't take any legal missteps in the urban arena." Many corporations are backing extension of the Terrorism Act. "Insurers and the business community, particularly those in urban areas, have strongly encouraged Congress to extend TRIA while other alternatives to protecting businesses and the economy are examined," said Donald Griffin, vice president of commercial insurance for the Property Casualty Insurers Association of America.
