Posted by Benji Riggins on June 23, 2010 under Flood | 
The House of Representatives has passed another temporary extension of the National Flood Insurance Program until Sept. 30, 2010.
The program has been suspended from issuing new policies since May 31. Reauthorization provisions have been embedded in controversial legislation on jobless benefits and tax breaks that has been twice voted down in the Senate.
The newly-passed House bill, HR 5569, was sponsored Rep. Maxine Waters, D-Calif., and Rep. Walter Jones, R-N.C.
The Senate must still act on it.
The Independent Insurance Agents and Brokers of America (Big “I”) commended the House for its vote and urged the Senate to act quickly.
“The program has been expired since May 31, putting millions of consumers at risk from the economic dangers of flood right in the midst of the hurricane season and storm season in the Midwest. The expiration has also threatened to wreak havoc in both the real estate and insurance markets during a period of great economic difficulty. It is vital that the program be extended and we therefore urge the Senate to act on this bill without delay,” said Charles Symington, Big “I” senior vice president of government affairs.
The program has been unable to issue new or renewal policies since it was shut down May 31, although it is still paying claims. It is the fourth time in the past year that the program has been interrupted due to the failure of Congress to reauthorize it for an extended period.
The Big “I” and other industry groups hope that Congress will move beyond temporary extensions and pass legislation that authorizes the program for five years and makes certain reforms to it.
Read more: http://www.insurancejournal.com/news/national/2010/06/23/111009.htm#ixzz0rhwYXnlQ
Posted by Benji Riggins on June 18, 2010 under Flood |
The Senate today voted against legislation that included a provision to reauthorize the National Flood Insurance Program (NFIP).
Along with short term extensions for numerous other federal programs, the NFIP extension was passed by the House just prior to the Memorial Day recess. It was voted down by the Senate today amid concerns that other, unrelated provisions in the bill would add to the federal budget deficit. Should the Senate approve an amended version, the legislation would have to go back to the House for another vote in that chamber.
The Senate vote drew criticism from the National Association of Mutual Insurance Companies (NAMIC).
“It’s been over two weeks since the National Flood Insurance Program was allowed to expire, and the program is still being held up because of unrelated issues,” said Jimi Grande, NAMIC senior vice president of federal and political affairs. “This lack of action by Congress is unacceptable, particularly when we’re in the first few weeks of the 2010 hurricane season.”
The Atlantic storm season began June 1 and the National Oceanic and Atmospheric Administration has forecasted that 2010 will be among the most active seasons ever. The NOAA predicts that 2010 will see 14 to 23 named storms, with eight to 14 of those developing into hurricanes. Of those, the NOAA has said that three to seven may develop into Category 3 or above hurricanes with winds of over 110 miles per hour.
“We cannot afford to have political disagreements get in the way of protecting millions of Americans from flood losses,” Grande said.
Source: NAMIC
Read more: http://www.insurancejournal.com/news/national/2010/06/16/110798.htm#ixzz0rDbxnJHL
Posted by Benji Riggins on June 14, 2010 under Insurance News |
The 2010 Atlantic hurricane season will be even more active than feared, leading U.S. forecasters said Wednesday as they predicted 10 hurricanes, five of them major, with a 76 percent likelihood that a major hurricane would hit the U.S. coastline.
The outlook from the Colorado State University team follows predictions by U.S. government scientists for an intense season that could disrupt efforts to contain a huge Gulf of Mexico oil spill and also batter earthquake-ravaged Haiti.
Increasing a previous estimate for a “very active” season, the leading CSU storm research team founded by hurricane forecast pioneer William Gray said the six-month season beginning on June 1 would likely see 18 named tropical storms.
Of these, CSU saw 10 becoming hurricanes, with five becoming major Category 3 or higher hurricanes with winds above 110 miles per hour.
The CSU scientists increased their forecast from an April 7 prediction of 15 named storms, eight hurricanes and four major hurricanes.
“The probability of a major hurricane making landfall along the U.S. coastline is 76 percent compared with the last-century average of 52 percent,” said forecaster Phil Klotzbach, who works with Gray.
The CSU team saw a 51 percent chance that a major hurricane would make landfall on the U.S. East Coast, including the Florida Peninsula, and a 51 percent chance that one would hit the Gulf Coast, from the Florida Panhandle to Brownsville, Texas.
It put the chance of a major hurricane tracking into the Caribbean at 65 percent.
The expected extreme hurricane season this year is seen posing a threat to efforts to control and clean up oil spewing from a ruptured Gulf of Mexico well owned by BP Plc, described by President Barack Obama’s administration as the worst environmental disaster in U.S. history.
Experts warn that a storm surge in the Gulf of Mexico — an abnormal rise in sea level created by a hurricane — could whip the oil slick and chemicals used in trying to disperse it out of the Gulf and ashore on beaches, vegetation and even homes.
HAITI VULNERABLE
“If the storm tracks to the west of the oil, there is the potential that the counter-clockwise circulation of the hurricane could drive some of the oil further toward the U.S. Gulf Coast,” Klotzbach said.
But he added the forecasters did not see the huge, fragmented oil slick itself having much of an impact on any tropical storm or hurricane passing over the area.
There are fears too about how a major hurricane sweeping through the Caribbean over Haiti would affect around 1.5 million homeless survivors of the Jan. 12 earthquake who are camping out in the streets under tents and tarpaulins.
Quake survivors living in the makeshift camps are seen as highly vulnerable to the tropical rains, flooding and landslides which have killed thousands of Haitians in the past.
Detailing weather conditions seen favoring the formation of hurricanes, Gray said the CSU team increased its forecast “due to a combination of a transition from El Nino to current neutral conditions and the continuation of unusually warm tropical Atlantic sea surface temperatures.”
Warmer waters contribute to the development of hurricanes and dissipation of the El Nino weather phenomenon over the Pacific Ocean reduces the probability of wind shear — caused by a clash between prevailing upper-levels winds out of the west and lower-level easterly winds out of Africa — that can tear apart hurricanes or break up their circulation.
The National Oceanic and Atmospheric Administration last week predicted one of the more active hurricane seasons on record, forecasting 14 to 23 named storms, with eight to 14 becoming hurricanes, nearly matching 2005′s record of 15.
The Gulf Coast may see a repeat of the 2005 season when a record 28 storms formed, which killed nearly 4,000 people and caused an estimated $130 billion in damages. The list included Hurricane Katrina, which devastated New Orleans.
By Pascal Fletcher
June 3, 2010
(Editing by Tom Brown and Mohammad Zargham)
Read more: http://www.insurancejournal.com/news/national/2010/06/03/110405.htm#ixzz0pu01Qk26
Posted by Benji Riggins on June 9, 2010 under Safety |
Crime rates declined in both violent and property crimes in the United States last year, according to the FBI’s Preliminary Annual Uniform Crime Report released today.
Preliminary 2009 statistics indicate that violent crime in the nation decreased 5.5 percent and property crime declined 4.9 percent when compared with data from 2008. Data in the report came from 13,237 law enforcement agencies that submitted six to 12 months of data in both 2008 and 2009.
Highlights from the report include:
Property Crime
• All property crime offenses—burglary, larceny-theft, and motor vehicle theft—decreased in 2009 when compared with 2008 data. Motor vehicle theft showed the largest drop in volume at 17.2 percent, larceny-thefts declined 4.2 percent, and burglaries decreased 1.7 percent.
• The nation’s largest cities, one million or more inhabitants, reported the greatest decrease, 7.9 percent, in property crime overall. Of the city groupings, this population group also reported the biggest decreases in the offenses that comprise property crime: a 21.1 percent drop in motor vehicle theft, a 5.7 percent decline in burglary, and a 5.5 percent decrease in larceny-theft. In the nation’s nonmetropolitan counties, larceny-thefts fell 9.5 percent; in metropolitan counties, larceny-thefts declined 5.9 percent.
• The only population group to indicate a rise in any type of property crime was in nonmetropolitan counties, where burglary rose 0.5 percent.
• In comparing 2008 data and 2009 data by region, law enforcement agencies in the West reported the biggest decline in property crime, with a decrease of 6.8 percent. Property crime declined 5.6 percent in the Midwest, 5.3 percent in the Northeast, and 3.2 percent in the South.
Arson
• Arson offenses, which are tracked separately from other property crimes, declined 10.4 percent nationwide. All population groups reported decreases in the volume of arson offenses. In addition, arson fell in all four of the nation’s regions: 11.6 percent in the West, 10.6 percent in the South, 9.2 percent in the Midwest, and 8.6 percent in the Northeast.
Violent Crime
• All four violent crime offenses — murder and nonnegligent manslaughter, forcible rape, robbery, and aggravated assault—declined nationwide in 2009 when compared with 2008 data. Robbery dropped 8.1 percent, murder decreased 7.2 percent, aggravated assault declined 4.2 percent, and forcible rape decreased 3.1 percent.
• Violent crime fell in all city groupings. The largest decrease, 7.5 percent, was in cities with populations ranging from 500,000 to 999,999 inhabitants. Violent crime declined 4.0 percent in the nation’s metropolitan counties and 3.0 percent in nonmetropolitan counties.
• Cities with 25,000 to 49,999 inhabitants were the only city population group to report an increase in the number of murders, 5.3 percent. The number of murders in the nation’s nonmetropolitan counties also rose, 1.8 percent.
• Forcible rape trends dropped in all city population groups. The largest decrease was 7.3 percent in cities of less than 10,000 residents. Metropolitan counties reported a 3.7 percent decline in the number of rapes, but the number of rapes reported in nonmetropolitan counties rose slightly, 0.3 percent.
• All population groups reported decreases in the volume of robbery in 2009. Of the city groups, cities with populations of 100,000 to 249,999 had the largest decrease at 10.3 percent. Metropolitan counties reported a 6.7 percent drop in robberies; nonmetropolitan counties reported a 0.7 percent decline.
• The number of aggravated assaults declined in all population groups, with cities of 500,000 to 999,999 inhabitants reporting a 6.3 percent decrease. Aggravated assaults declined 3.7 percent in nonmetropolitan counties and 3.0 percent in metropolitan counties.
• All four regions in the nation showed decreases in violent crime in 2009 when compared with data from 2008. Violent crime decreased 6.6 percent in the South, 5.6 percent in the West, 4.6 percent in the Midwest, and 3.5 percent in the Northeast.
Source: FBI
Read more: http://www.insurancejournal.com/news/national/2010/05/25/110166.htm#ixzz0p305rcFX
Posted by Benji Riggins on June 4, 2010 under Flood |
The National Flood Insurance Program (NFIP), which expired at midnight on May 31, is not expected to be able to issue new policies for a week or longer.
As reported by Insurance Journal last Friday, Congress left town for the Memorial Day holiday without acting on legislation to reauthorize the program and Congress is not expected to take it up again until June 7, at the earliest. Bills have been introduced in both the House and the Senate to extend the program until the end of the year, but Congress has yet to consider these measures.
The hiatus– the fourth within a year– comes at the opening of the Atlantic hurricane season, which forecasters say will be very active.
If past NFIP suspensions are any indication, it will mean frustration and delays for property owners and property buyers and insurance agents trying to serve them.
“The series of temporary extensions, last minute actions and service lapses during such a delicate period in the American economy is troubling to agents, homeowners and small businesses,” says Charles Symington, senior vice president of government affairs for the Independent Insurance Agents and Brokers, or Big “I.”
Symington said the program is meant to provide some level of stability and protection for homeowners and businesses against unpredictable flooding events, “not to be an unpredictable ‘here one minute-gone the next’ program subject to monthly congressional action.”
Insurers also lamented the lack of federal action.
“Once again, the NFIP has become a victim of politics that have nothing to do with the program itself,” said Kathy Mitchell, National Association of Mutual Insurance Companies, federal affairs director. “Allowing the NFIP to lapse just as the 2010 storm season is beginning shows a troubling lack of judgment on the part of Congress.”
Many in the insurance industry support a five-year extension of the program. Congress has traditionally extended the program for five year periods but in the past year it began extending the program only for short periods, from 30 days to six months, as the reauthorization has become tied up with controversial legislation involving unemployment benefits, tax breaks, Medicare payments to doctors and other issues unrelated to flood insurance.
“Lapses in this program cause confusion and leave many homeowners and small businesses unprotected during a very dangerous time. The Big ‘I’ is also concerned that the uncertainty of temporary extensions and the numerous lapses that have already occurred in the last few months will negatively impact the market,” said Robert Rusbuldt, president and CEO of the Big “I.”
Read more: http://www.insurancejournal.com/news/national/2010/06/01/110348.htm#ixzz0poaZpNKt
Posted by Benji Riggins on June 1, 2010 under Safety |
As more states are allowing souped-up golf carts and other low-speed vehicles on public roads, safety researchers for the insurance industry say they should apply the brakes to this trend even though the carts may be eco-friendly.
Crash tests by the Insurance Institute for Highway Safety show that the mix of low-speed vehicles (LSVs) or minitrucks and regular traffic is a deadly combination.
LSVs are designed for tooling around residential neighborhoods, and minitrucks are for hauling cargo off-road. While these vehicles have a lot of appeal as a way to reduce emissions and cut fuel use, they don’t have to meet the basic safety standards that cars and pickups do, and they aren’t designed to protect their occupants in crashes, researchers note.
“By allowing LSVs and minitrucks on more and more kinds of roads, states are carving out exceptions to 40 years of auto safety regulations that save lives,” says David Zuby, the Institute’s chief research officer. “It’s a troubling trend that flies in the face of the work insurers, automakers, and the federal government have done to reduce crash risk.”
Practically every state allows LSVs, also called neighborhood electric vehicles, on certain roads, mostly with 35 mph or lower speed limits. Eight years ago just over a dozen states permitted them but now 46 do.
The National Highway Traffic Safety Administration (NHTSA) defines appropriate performance and safety standards but has no say in where LSVs are driven. The same goes for minitrucks, which are legal to operate on some roads in 16 states, even though they weren’t designed to meet U.S. safety or emission standards. The trend to grant minitrucks access to regular roads began in 2007 and is growing at a quick pace.
“On one hand you have NHTSA saying these vehicles were meant for low-risk, controlled environments or farm use, and on the other hand states are pushing them out onto the highways,” Zuby points out.
LSVs were envisioned as a low-cost, eco-friendly way to tool around gated communities in the Sun Belt where they would have little interaction with larger vehicles. NHTSA doesn’t require LSVs to have airbags or other safety features beyond belts since they’re intended for low-risk driving. Most minitrucks in the United States are used right-hand-drive vehicles imported from Japan, where they can operate on roads as long as they pass inspection every 2 years. Vehicles that fail often end up exported to North America. Also known as Kei-class vehicles, minitrucks are smaller than conventional pickups and weigh about 1,500 pounds. They must be imported with governors to limit speeds to 25 mph or less to be exempt from Clean Air Act provisions but can go much faster.
NHTSA in 1998 established safety standards for LSVs to be used on “short trips for shopping, social, and recreational purposes primarily within retirement or other planned communities with golf courses.” They must be able to go at least 20 mph but no faster than 25 mph. Basic features are required: headlights, taillights, stoplights, turn signals, reflectors, parking brakes, rearview mirrors, windshields, safety belts, and vehicle identification numbers.
Minitrucks weren’t an issue when NHTSA wrote LSV rules. The agency in 2006 amended the standards to include vehicles with gross vehicle weight ratings up to 3,000 pounds, and now 4 states require minitrucks to meet LSV standards. Still, NHTSA believes minitrucks should keep off the road. In a July 2009 letter of interpretation, the agency said that because “these vehicles are not manufactured to meet U.S. safety standards, NHTSA cannot endorse their use on public highways.”
The Energy Department estimates there are 45,000 LSVs on U.S. roads. New LSVs qualify for up to a $2,500 tax credit under the American Recovery and Reinvestment Act of 2009. Many states also offer tax incentives.
“Lost amid the talk about so-called sustainable transportation is any regard for the safety of people who ride in LSVs and minitrucks,” Zuby says. “We’re all for green vehicles that don’t trade safety for fuel efficiency.”
For eco-minded consumers, a better choice for regular traffic is a crashworthy hybrid like the Toyota Prius or another fuel-efficient car. Also worth a look are the Nissan Leaf and Chevrolet Volt, two battery-powered cars slated for delivery later this year, researchers say.
Crash Tests
To show that LSVs and minitrucks are no match for even the smallest of regular cars and pickups, Institute researchers tested two GEM e2 electric vehicles and a Changan Tiger Star minitruck. The GEMs were in side tests, one using a moving deformable barrier and the other using a Smart Fortwo as the striking vehicle. The Smart is the smallest passenger vehicle on US roads that meets crashworthiness standards. The Tiger struck a Ford Ranger XL regular cab pickup in a frontal offset test. The Ranger is one of the least pricey small pickups on the market. It earns an acceptable rating in the Institute’s frontal crashworthiness test, the lowest rating in its vehicle class.
The test dummies in the GEMs and the Tiger recorded indications of seriously debilitating or fatal injury to drivers in real-world crashes. In contrast, the Smart performed well and the Ranger reasonably so in similar crash tests.
“There’s a world of difference between vehicles that meet crashworthiness standards and those that don’t,” Zuby says. “It may be time for Congress to step in to extend federal passenger vehicle safety standards to LSVs or else restrict them to the low-risk traffic environments they were designed to navigate.”
Read more: http://www.insurancejournal.com/news/national/2010/05/20/110034.htm#ixzz0oVAahTGf
