Settlement Offered by Citizens, but Plaintiff
Lawyer Frowns on Proposal
The board that oversees the state-run insurer of last resort offered up to
$80 million Thursday to settle a lawsuit with lawyers representing about
25,000 clients who say the company was late in adjusting their claims after
Hurricane Katrina in 2005.
The offer is about $43 million short of what lawyers for the plaintiffs are
seeking in a settlement and more than $20 million short of what a judge has
already ordered the Louisiana Citizens Property Insurance Corp. to pay.
The board's offer said that attorneys handling the litigation in Oubre
et al. v. Louisiana Citizens Fair Plan cannot pocket more than
$25 million of the $80 million.
The Citizens offer is on top of $6 million the company paid in 2009 to avoid
having to post a bond to appeal a court order to pay a $92.8 million judgment.
With interest of almost $10,200 a day, the amount to be awarded is now about
$104 million to 17,540 claimants and their attorneys.
If another 7,500 individuals are added to the class-action lawsuit, that
could cost Citizens another $35 million.
READ MORE...
PIA National's Brevik on Cover of
This Week's National Underwriter
To gain some perspective on what to expect in 2012, the National Underwriter
asked an array of leading executives about their current concerns — and what
trends and new developments will shape the personal-lines business this year. PIA
National Executive Vice President & CEO Leonard C. Brevik was the lead commentator
in the article in the Feb. 6, 2012 issue and appeared
on the magazine's cover.
"The biggest concern is navigating a tricky economy," said Brevik. "Right now, we
seem to be stuck somewhere in the middle, not knowing which way things will go. In
our industry, we see some signs of a slight firming in prices, but we've been
seeing that for over a year now. In the broader economy, Wall Street has been doing
great lately, but on Main Street things could be better." He also addresses
natural catastrophes, flood insurance, PIA's opposition to federal insurance
regulation and the likelihood that the 2012 elections will bring about a
Republican-controlled Congress.
Top Concerns in Personal Lines
( National Underwriter 2/6/2012)
Louisiana Insurance Complaints Yield
$5.3 Million in Payments to Consumers
The state Department of Insurance helped consumers get more than $5.3
million based on complaints lodged against various types of insurers
in 2011, officials said Friday. The amount recovered comes from 3,453
complaints filed and investigated by the agency, Insurance
Commissioner Jim Donelon said.
In 2010, the department recouped $9.6 million based on 3,754
complaints, department spokeswoman Amy David said. She said in 2009,
4,347 consumers filed complaints and the department negotiated the
recovery of $8.2 million.
Donelon said about half of the $5.3 million recouped in 2011 came from
471 complaints investigated on payments of life insurance and
annuities, $2.54 million.
He said the second-highest total came from recoveries based on 1,731
property and casualty insurance disputes — just under $1.7 million.
A little more than $1 million came from disputes involving 1,248
complaints on health insurance matters.
READ MORE...
Donelon Hires Ex-Legislator
Former state Rep. Noble Ellington landed a $150,000 a year job as the
No. 2 official at the state Department of Insurance.
Commissioner of Insurance Jim Donelon said Tuesday that Ellington —
a veteran legislator who did not seek re-election last fall —
joined his staff as chief deputy last week.
"We are really pleased to have him. It's an asset, a public face in
addition to mine," Donelon said. Ellington would become interim
commissioner if anything happened to Donelon.
Ellington is a member of the Louisiana State Employees Retirement
System, better known as LASERS. The appointment to the job with a
six-figure annual salary will substantially boost his ultimate pension
check. Benefits are calculated based on the final three-year average
compensation.
Ellington is a Republican from Winnsboro, who has been a member of
both the Louisiana House and Senate. The 69-year-old cotton merchant
had been a legislator since 1988.
Donelon said Ellington served on the Louisiana House Insurance
Committee for the past four years "but that is the extent of his
insurance involvement to my knowledge."
READ MORE...
National Representation — Federal Legislative Summit
This is a critical year for independent insurance agents, according to
PIA National President Thomas C. Adderhold, who says that agents need
to get personally involved to protect their business interests. A good
way to do that is to attend the 2012 PIA Federal Legislative Summit,
he emphasized.
"We all know that 2012 is a critical election year, both for the future
of our country and the interests of professional insurance agents,"
said Adderhold. "Our summit this year occurs as many issues with the
potential to affect agents' bottom lines remain in focus on
Capitol Hill. That's why this is no time for agents to sit on
the sidelines."
The Summit will begin on March 21 with a legislative briefing for
participants, held at the Marriott Crystal City in Arlington, Virginia,
PIA's headquarters hotel. The following morning, March 22, participants
will begin their day with a breakfast program featuring remarks by PIA
leaders and Members of Congress, followed by a full day of scheduled
meetings with lawmakers in their Capitol Hill offices. At day's end,
a reception will be held, followed by the annual fundraising and awards
dinner of the PIA Political Action Committee (PIAPAC).
For more information and to register for the 2012 PIA Federal Legislative
Summit, visit: www.piafls.com. For questions, contact Mike Becker, PIA
National Assistant Vice President of Federal Affairs at
mikebe@pianet.org.
Main Street Agents to Converge On Capitol Hill for 2012 PIA FLS
PIA National Member Benefits
PIA National has recently revised its "PIA National Guide to Member
Benefits." The final printed piece has been inserted into the
January PIA Connection. However, you can find a copy of it by clicking
here.
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