Declarations

More on scores
“The growing use of credit-based insurance scores affects millions of consumers. We look forward to hearing from a range of perspectives including state insurance regulators, consumer advocacy groups and industry on this important issue.”

— U.S. Representative Melvin L. Watt, D-N.C., chairman of the Subcommittee on Oversight and Investigations, in announcing that the hearing titled: “Credit-Based Insurance Scores: Are They Fair” was being rescheduled for a later date. No insurance industry representatives had signed up to testify prior to the announcement of the postponement. The hearing also was postponed in part to allow for review a Federal Trade Commission (FTC) report to Congress titled, “Credit-Based Insurance Scores: Impacts on Consumers of Automobile Insurance” and examine its key findings. The hearing also will study the efforts underway by the states to regulate the use of credit-based insurance scores.

Taking down the trigger
“A lower event trigger would help more insurers offer terrorism risk insurance, which would provide greater competition, more choices and wider availability. This would lead to greater take-up rates and more coverage, thereby helping protect our economy in the event of a new terrorist attack.”

— Ben McKay, senior vice president, federal government relations for the Property Casualty Insurers Association of America, commenting on the federal Terrorism Risk Insurance Revision and Extension Act’s lower event trigger for the federal government backstop from $100 million to $5 million. Insurance industry associations argued that the lower trigger would allow more small and medium sized companies to participate in the program to increase the availability of terrorism insurance. The bill also extends TRIA for 10 years; eliminates the distinction between foreign and domestic terrorism; adds group life insurance to the program; creates a blue-ribbon commission to develop long-term recommendations; and improves coverage for nuclear, biological, chemical, and radiological terrorism events.

Technological advantages
“I am a firm believer in harnessing technology to make our government more flexible and responsive to the needs of the people. I know firsthand that technology can advance entire industries, and I will continue to implement practical methods to improve the accuracy and efficiency of our system.”

— California Insurance Commissioner Steve Poizner indicating why the Department of Insurance has created a system for insurance agencies to apply for their licenses online. The online system should help to reduce errors and the time it takes to be issued a license, the Department said.

Mandatory malpractice?
“In our discipline system, we see too many respondent lawyers who fail to carry insurance. As a result, clients turn to the State Bar’s Client Security Fund, which all of our members pay for as part of our bar dues.”

— California State Bar President John Van de Kamp commenting on why his group is considering whether lawyers in the state should be required to disclose whether they have malpractice insurance.