Declarations

Frankel-y Speaking

“I consider the role the Mississippi Insurance Department has played in bringing Mr. Frankel and his co-conspirators to justice to be one of the finest accomplishments during my time in office.”

—Long-time Mississippi Insurance Commissioner George Dale, who left office last month, speaking of his agency’s success in catching financier Martin Frankel who was looting five insurance companies he owned.

Frustrated in Florida

“I’m very frustrated as I know the people of Florida are. Some companies have done the right thing and I think followed the new law that the legislature passed. But some companies, I’m very close to being completely convinced that they’re just violating the law. ”

—Florida Gov. Charlie Crist declaring he wants three trial lawyers to review documents for a possible class-action lawsuit against property insurers, alleging that the industry hasn’t passed on savings to consumers as required by a new Florida law.

In Insurers’ Defense

“We paid out $37 billion in the eight hurricanes in 2004 and 2005 and as a result of that rates started going up and now we’re accused of all kinds of things that are unfounded. We will defend ourselves in court if we have to and will be proven right.”

—Sam Miller, spokesman for the insurance companies’ Florida Insurance Council, responding to Florida Gov. Charlie Crist’s charges that insurance companies are violating the law by not passing along sufficient savings to homeowners.

Captive Standards

“For years there has been discussion over standards of regulation for captive insurance companies. Clearly, the success of captives starts with maintaining the highest standards for captive management companies. With this bulletin there can be no doubt about what we expect from captive management in South Carolina.”

—South Carolina Insurance Director Scott Richardson in proposing standards for captive management companies in the state that include specific requirements for character, reputation, financial responsibility and insurance experience.

Travelers’ Transparency

“Florida’s policyholders deserve nothing less than full disclosure in insurance transactions. This settlement continues Florida’s progress toward establishing a national standard for transparency in insurance transactions and reinforces our commitment to protecting Florida consumers.”

—Florida Insurance Commissioner Kevin McCarty commenting on the news that The Travelers Cos. Inc. will pay $6 million to settle investigations in nine states and the District of Columbia over how it paid brokers. The settlement ends a 2004 shareholder lawsuit over contingent payments to brokers and allegations that it rigged bids. The company reached agreements with attorneys general in Michigan, Florida, Hawaii, Maryland, Oregon, Texas, West Virginia, Massachusetts and Pennsylvania and the District of Columbia. The Florida Office of Insurance Regulation also joined the settlement. The settlement still needs court approval.

Topics Florida Legislation