I was reading a blog by Steve Piontech, Editor-in-Chief of the National Underwriter Life & Health. His remarks seemed to add another valid reason why federal charter and the choice of a sole federal regulator needs to be avoided:… Continue Reading
Imagine – all kinds of legislation, hand in hand with lobbying and political positioning, just in time for the start of hurricane season on June 1. A couple of recent news stories point out the possible direction that several key measures may be heading.… Continue Reading
Democratic Senator Jon Tester of Montana is standing up to the insurance industry, opposing the industry’s push for federal charter of the property and casualty industry. In an article in the National Underwriter, Tester noted that state regulation has worked regarding the insurance industry:… Continue Reading
The Associated Press reported that the National Association of Insurance Commissioners (NAIC) has come out strongly against the proposed Federal Charter for property and casualty insurance companies. As I have now stated in two recent posts, (read them here and here), this federal legislation is not in the interests of policyholders and is an attempt by some … Continue Reading
Recently, Allstate has accused other insurers of investing in credit default swaps. Does Allstate have knowledge of insurers engaging in this illegal activity? Or are these allegations a facade for the new federal oversight that would place Allstate under control of the federal government. My view on this topic is pointed: Allstate and other major … Continue Reading
If you love dealing with your group health insurance bills and claims, you will be overjoyed with the new legislation proposed in Congress allowing property insurance companies to apply for a Federal Charter. This proposed legislation is the most unfair and anti-consumer federal legislation filed in recent years.… Continue Reading
An article in the Insurance Journal, National Flood Insurance Program Set to Expire Tomorrow, caught my eye. I think the threat of expiration is political gamesmanship, as indicated in the piece: “John Prible, government affairs for the Independent Insurance Agents and Brokers of America, says the omnibus bill funding is currently being debated in the … Continue Reading
Free enterprise is great until your competitors beat you. Dominant competitors may find it advantageous to combine interests to prevent new players from entering markets, destroying profit margins, and taking market share. It is amazing that there has not been more investigation and calls for transparency into the major personal lines insurance companies’ discussions and … Continue Reading
Paul Krugman wrote an editorial, Insurance Horror Stories, in the New York Times which shows remarkable similarity between the health insurance industry and the property insurance industry in Florida, Mississippi, Louisiana and Texas. He noted: "Because everyone faces some risk of incurring huge medical costs, only the superrich can afford to be without health insurance. Yet … Continue Reading
Rep. Gene Taylor proposed legislation to expand the National Flood Insurance Program (NFIP) to cover wind damage, in addition to floods. NFIP currently only covers damage from a hurricane’s storm surge. Hurricane Katrina proved how difficult it can be to separate wind from water damage near shorelines. The American Insurance Association has squarely come out in oppostion to Taylor’s NFIP expansion bill, … Continue Reading
Throughout U.S. history insurers have routinely discriminated against minorities. Discriminatory treatment included such practices as charging minorities higher rates, offering minorities policies with inferior coverage, not returning calls for information from minority applicants or denying minorities coverage altogether. Homeowners insurance redlining is a form of this discrimination where an insurance agency or agent treats homeowners … Continue Reading
The House Financial Services Subcommittee on Oversight and Investigations, and the Homeland Security Subcommittee on Management, Investigations and Oversight have scheduled a hearing for Tuesday, June 12, 2007 to discuss the National Flood Insurance Program and the interaction between the NFIP and private insurers and the allocation of wind vs. water insurance claims in light of … Continue Reading
There is a split among insurers over a Senate bill (S.40) to create a federal insurance regulator. The bill would authorize the issuance of Federal charters and licenses for carrying on the sale, solicitation, negotiation, and underwriting of insurance or any other insurance operations, provide for a comprehensive system for the Federal regulation and supervision … Continue Reading
Since 1992 Florida’s representatives in Congress have been seeking a national catastrophe insurance fund. This year, though, there is hope the idea may be gaining support. The concept has evolved to the point that it may be more acceptable to states that aren’t disaster prone. And Hurricane Katrina’s devastation on Louisiana and Mississippi, combined with … Continue Reading