In the wake of two tumultuous storm seasons, Florida has experienced the significant growth of both its state-backed insurer and reinsurance fund. This article briefly summarizes the major legislative, regulatory, and market developments in Florida’s property insurance industry over the past three years. It is also intended to highlight the state’s metamorphosis into a full-fledged market competitor and the deliberate steps the state took in making that transition. This article concludes with an overview of the new problems facing a state that continues to struggle with a shrinking voluntary property insurance market while state officials remain perplexed over the failure of recent reform to result in meaningful rate reduction. To read the full article, please click here.

WASHINGTON, D.C., April 3, 2008-House Majority Whip Rep. James Clyburn (D-S.C.) and Sen. Susan Collins (R-Maine) addressed 1,200 independent insurance agents and brokers at the Independent Insurance Agents & Brokers of America's (the Big "I") Legislative Conference & Convention this morning.

Clyburn discussed the current financial crisis and the economic stimulus package. "We kept small businesses in mind....and we came out with a bill that was pretty good," he says. "Especially after Ben Bernanke's discussion on the Hill yesterday, we're going to need to take a second look (at the economic stimulus package)."
On agent licensing, Clyburn noted that he stood ready to assist in passing H.R. 5611, the NARAB Reform Act or NARAB II. "I plan to work with Rep. Scott to get the legislation passed---legislation that will make your job easier," he said. "That's my job."

THE RESULTS ARE IN!
AAMGA Past President Scott Anderson today announced the outcome of the Association's 2008 Election. Curtis Anderson of RPS/Scottsdale Curtis_Anderson@rpsins.com, was elected by a majority of the membership to serve as President-Elect for the coming year and will then become President of the AAMGA for the 2009-2010 term.

Also elected as Directors to serve on the Board from the Eastern Region was R.C. Chaffin of SeaCoast Underwriters rcc@seacoastunderwriters.com, and from the Western Region was Corinne Jones of Bliss & Glennon, Inc. jonesc@bgsurplus.com

BYLAWS APPROVED
Mr. Anderson also reported that amendments to the AAMGA Bylaws were also approved by the membership. "More votes were received this year than at any time in the past 7 years, and I believe this is representative of the impressive quality of candidates who stood for election this year, and the confidence the Association members have in their leadership," Mr. Anderson added.

Alabama's leading homeowners insurer is cutting back its catastrophe exposure in coastal territories around Mobile Bay.

State Farm has announced it is not writing new wind and hail policies for homes south of Interstate 10 in Mobile County, and generally along the Highway 98 corridor in Baldwin County, beginning April 1. Homeowners here will likely turn to the Alabama Insurance Underwriters Association, which has about 9,100 policies.

"It was a tough decision but this is an ongoing process to reduce exposure so that we are able to respond to the needs of all of our policyholders," said State Farm spokesman David Majors.

There will be no changes to existing State Farm policyholders unless they move to an area in which the company is no longer writing new business or an area where State Farm is no longer offering wind and hail coverage, Majors said.

An earthquake of 6.8 magnitude or greater on California's Hayward Fault, in the heart of the San Francisco Bay area, could impact more than 5 million people and impact more than $1.5 trillion in property and contents, according to new information from members of the 1868 Hayward Earthquake Alliance and Risk Management Solutions (RMS).

The last major earthquake on the Hayward Fault was in 1868, 140 years ago: research by the U.S. Geological Survey (USGS) and others indicate the past five such earthquakes have been 140 years apart on average. So an earthquake on this fault is increasingly likely.

If the 1868 earthquake were to reoccur today, RMS estimates total economic losses to residential and commercial properties would likely exceed $165 billion. Other factors, such as fire, damage to infrastructure and related disruption would substantially increase the loss.

New Jersey bars can be sued for the actions of drunken drivers who leave those establishments, even if the drivers consumed no alcohol while at the bars, a panel of judges has unanimously declared.

The ruling by the state appellate court centered on the estate of a 21-year-old who died in 2003 when a car driven by his 19-year-old intoxicated friend crashed on the Garden State Parkway.

The lawsuit opens the way for the estate of James Hamby to sue the C View Inn, a bar in Cape May, New Jersey, which he and the driver, Frederick Nesbitt, had visited that evening.

Nesbitt had not been drinking at the bar, although he and Hamby had been drinking prior to their arrival there, evidence in the case showed.

Hamby's license had been suspended at the time for a drunken driving conviction. The two began drinking beer and rum in Nesbitt's car, before arriving at the C View Inn to meet several friends, according to court documents.

The National Association of Insurance Commissioners released an updated version of the 2007 market share premium data for the top 25 insurers of select property/casualty lines of business.

The report includes countrywide direct written premium for the top 25 groups and companies as reported on the State Page of the annual statements of insurers that report to the NAIC. Cumulative market share data is shown for the personal auto, commercial auto, workers' compensation, medical malpractice, homeowners and liability lines of business.

Available free online, the report has been updated as of March 17, 2008, and will be refreshed on each week through mid-April. Last wee

Access the report at: http://www.naic.org/documents/research_premium_by_LOB.pdf.

Climate change and catastrophes will be among the top issues insurers and advocates will be following when the National Association of Insurance Commissioners holds its annual spring meeting in Orlando, Fla., March 29-31.
Insurer groups are concerned about the direction of the NAIC's Climate Risk Disclosure Working Group, which has drafted a proposal for increased disclosure of insurers' risks from the effects of global climate change. The proposal builds on a white paper which earned strong criticism from the insurance industry, particularly over provisions for detailed disclosure of climate risks associated with real estate holdings and other investments as part of an insurer's annual financial statement or in its management analysis (BestWire, Jan. 21, 2008).

Legislators and workers' compensation officials say they can only guess at the level of fraud and attempted fraud by workers and employers in Wyoming.
One thing they do know is how many employers don't pay their premiums.

Some 1,621 Wyoming employers were delinquent in premiums to workers' compensation as of the end of February for a total of more than $1.4 million, according to Gary Child, the outgoing director of the Workers' Compensation Division. That's more than 9 percent of all 17,718 employers who pay into the system.

Despite not paying, those employers still enjoy immunity from lawsuits, and their employees still qualify for workers' compensation benefits.

Fraud is harder to measure. No workers and no employers have been prosecuted for trying to defraud Wyoming's workers' compensation system in recent years, Child said. But the agency's internal vetting and investigating processes continually watch for phony or inaccurate claims.

Last year, as the mortgage market crumbled, a number of major law firms formed subprime-litigation SWAT teams, ready to tackle an expected deluge of lawsuits from both individuals and institutions. They're still waiting.