MIDWEST REGIONAL NEWS
The April 20 hailstorm that struck portions of central Ohio has caused three times the original loss estimate, according to recently revised estimates by the Ohio Insurance Institute (OII). The Easter hailstorm left a trail of damage from golf ball-sized hail, accumulating up to six inches in some areas, according to the OII. The new loss estimate is over $149 million and will be the state's most expensive hail event in the past 12 years.
An article in The Columbus Dispatch points out that "all homeowners, even those who weren't hit by the April 20 storm, are likely to help pay for it. Insurance claims from that event will contribute to homeowners rates rising an estimated 7% next year," said Robert Hartwig, chief economist of the Insurance Information Institute (III). Even so, the III reports that Ohio is still one of the least expensive states for homeowners insurance.
According to the III, overall storm damage across the country was higher the first six months of this year than the same period in 2002. This year from January through June, storm damage cost the nation $6.2 billion, compared to $5.9 billion in the first six months of 2002.
Area news
States plan joint seminar
The Independent Insurance Agents of Wisconsin and Iowa are sponsoring an Insurance Education Getaway, February 9-11 in Scottsdale, Arizona. For more information, call the Wisconsin association at (800) 362-7441.
Illinois
Legislation enacted
Earlier this year, Governor Rod Blagojevich signed into law several insurance-related bills. SB 1634 requires surplus lines producers to file reports twice a year with the director of insurance on all surplus line insurance transactions and also requires that they pay a sum equal to 3.5% of the gross premiums. SB 1903, which established the state's 2004 fiscal budget, also has a number of increases: the cost of motor vehicle reports; the state's financial regulatory fees; the Affiliated Group Maximum (from $100,000 to $250,000); the surplus lines tax (from 3% to 3.5%); and producer licensing fees. HB 3661 made adjustments to the NCOIL credit model bill that was signed into law in July and clarifies the commercial lines policy nonrenewal law. SB 1207 increases the binding arbitration level for uninsured motorist coverage as well as the potential penalty for unreasonable and vexatious delay by an insurer.
Farmers Insurance lowers rates
In September, Farmers Insurance Group® reduced auto rates by 4.2% in Illinois. Farmers has also introduced a new 5% affinity discount for several occupation groups, including educators, police officers, firefighters, engineers, scientists, physicians/surgeons and nurses.
Indiana
State ranked high on tort laws
Earlier this year, the U.S. Chamber of Commerce released a survey of company corporate attorneys that ranked states by their tort system, measuring such aspects as treatment of class action lawsuits, punitive damages, timeliness of summary judgment/dismissal, discovery, scientific and technical evidence, judges' impartiality and competence, and juries' fairness and predictability. Indiana ranked 5th in the nation, behind Delaware, Nebraska, Iowa, and South Dakota.
Agency acquired
Earlier this year, Old National Bancorp announced an agreement to acquire Insurance & Risk Management, a Fort Wayne-based insurance agency.
Michigan
Convention planned
The Michigan Association of Insurance Agents (MAIA) will hold its annual convention February 24-26, 2004, at the Dearborn Hyatt. For more information, contact MAIA at (517) 323-9473.
Minnesota
Annual convention set
The Minnesota Independent Insurance Agents (MIIA) will hold its annual convention April 28-29, 2004, at the Radisson South in Bloomington. For more information, contact MIIA at (952) 835-4180.
Ohio
Credit score rule accepted
Earlier this year, the Ohio General Assembly's Joint Committee on Agency Rule Review (JCARR) accepted an administrative rule sought by the Ohio Department of Insurance regarding an insurance company's use of a consumer's credit score for personal automobile and homeowners insurance.
The rule, which went into effect in September, prohibits insurance companies from using a consumer's credit score as the sole criterion for rating or underwriting personal auto and homeowners insurance policies. The rule also will require that certain disclosures be made to consumers, including an explanation of what factors in their credit report have contributed to a higher rate or rejection of coverage. *