Declarations

Picking Up Non-Renewals

“I feel confident that the people on the Gulf Coast that have been canceled by State Farm will be able to buy insurance from Allstate and Nationwide and others that I have not announced.”

—Mississippi Insurance Commissioner Mike Chaney after State Farm Insurance announced plans to non-renew some coastal customers, an action that involves 892 policies within 1,000 feet of Mississippi Gulf Coast waters, and another 4,000 or so within 2,500 feet – an area devastated by Hurricane Katrina in 2005.

Still Paying for 2005

“The ultimate costs are uncertain but this could be enough. We’ll revisit it next year.”

—Jack Nicholson, senior officer of the Florida Hurricane Catastrophe Fund, talking about the 1 percent surcharge on all Floridians’ auto and homeowners’ insurance policies that will continue through Dec. 31, 2014 to cover a $625 million shortfall incurred during the 2004 and 2005 hurricane seasons. The FHCF assessments apply to all property and casualty policies, including surplus lines policies, but not to workers’ compensation, accident and health, medical malpractice or federal flood.

Second Request

“When FEMA denied our request for help last week, they said there was not enough damage to structures to qualify for aid. But the fact that our firefighters have been able to protect homes and businesses should not disqualify our state and local agencies from getting federal help to recover costs.”

—North Carolina Gov. Mike Easley when he requested federal help – a second time – for a major fire that burned more than 40,000 acres in Hyde, Tyrrell and Washington counties. The N.C. Division of Forest Resources estimates their cost of fighting the fire to be more than $2 million as of June 12, not including local costs at the county level. The current estimate on those additional expenses is nearly $300,000. The Federal Emergency Management Agency approved Easley’s second request.

Tennessee Dead Last

“Tennessee tied for dead last in per capita income growth last year, and we expect we won’t see much improvement in the economy until we’re into 2009.”

—Matt Murray, associate director of the Center for Business and Economic Research at the University of Tennessee, referring to the state’s economic condition. Tennessee continues to have the highest personal bankruptcy rate in the nation and experts are predicting even more filings next year because of the slowing economy. According to a report by the Federal Deposit Insurance Corp., the rate of personal bankruptcy filings in Tennessee during the first quarter of 2008 was more than double the national average. Neighboring Georgia and Alabama ranked second and third, respectively. Economists don’t see much improvement.

Topics Tennessee