All Churches Together - is a faith based, Christ-centered, organization
which operates on principles of truth, respect and fairness to all races
and classes.
THE GOALS OF HHII
1. Significant reduction in premiums
2. Reliability of Insurance Companies
3. Just payment of claims
4. Sustainable solutions
Thanks to the efforts of Senators Pittman, sponsor, Brooks,
Keahey, & Figures, co-sponsors, and chairman
Blackwell,
SB210 was approved in the Banking and Insurance Committee
this afternoon and now passes to the Senate Floor for action.
SB210, the Property Insurance Clarity Act, requires the Alabama
Department of Insurance to collect information from insurance companies on homeowners insurance policies and premiums by counties and zip code and post aggregate information on website,
with penalties for insurance companies not in compliance.
Posted 2/21/2012
AHIC SELECTS INDEPENDENT MODERATOR
Here is cv of the new moderator for the Commission:
Dr. Don-Terry Veal is the Director of Auburn University's Center for Governmental Services. He is a national and international contributor to democracy and good governance, a writer and educator. Dr. Veal serves as chief administrator of several statewide governmentally mandated and credentialing associations. He has also founded online training programs supported by FEMA and provided consultation for governments and financial institutions in South Korea. Dr. Veal led applied disaster activities related to Hurricane Katrina, Haiti, and the Deep Sea Horizon oil spill in the Gulf. He recently made keynote addresses on transparency: in London, South Korea, and India. Dr. Veal also led initiatives in South Africa, Egypt, Vietnam, and participated in applied research activities in Europe, the Caribbean, South East Asia, and Africa.
Dr. Veal served as a Founder and Editor-in-Chief of the Entrepreneurship Policy Journal, author of the book, the Politics of Equity and Growth, co-author of the book, Public Opinion in Alabama: Looking Beyond the Stereotypes, co-editor of the books, Entrepreneurship in South Africa and the United States and Advancing Public Trust in Government. He has a quarterly column in the London Government Gazette Magazine and author of many articles and book chapters in the areas of public finance nationally and internationally. He is Founder and Chairman of the Auburn University national conference: Governmental Excellence and Best Practices, the former Vice Chair of the World Conference of Mayors Corporate Round Table, and former President of the Southern Consortium of University and Public Service Organizations (SCUPSO).
Dr. Veal is a member of Who's Who in America, a Global Fellow for the IC Institute at the University of Texas at Austin, a Foreign Honorary Fellow of the South Korea Research Institute for Local Administration, an Associate member of the Algiers Economic Development Foundation in New Orleans, and received advanced training from Harvard University Law School on Negotiations.
PLENTY OF people agree that Alabama's homeowners insurance market is out of kilter. But a difference of opinion on how to recalibrate it could drown out reform efforts before they make progress in the Legislature.
Supporters of a so-called "clarity bill," which would require insurers to publicly disclose more detailed information on policies, are focused on the data. But the group, known as the Homeowners Hurricane Insurance Initiative, is missing an opportunity to push for something much, much better: a tangible way to reel in premiums.
The most tried-and-true method is mitigation. In Baldwin and Mobile counties as well as on the Mississippi Gulf Coast, the need for stronger construction, in order to lower the risk of damage, is gaining traction. Even the
Property Casualty Insurers Association of America, a trade group, agrees that mitigation can improve competition and bring down the cost for homeowners.
The "clarity" supporters, though, have reservations about that approach. A spokesman said recently he doubts insurers would lower premiums for buildings that are more storm-resistant.
Real-life examples, however, say otherwise.
In Mississippi, developer Joe Cloyd told a group of business leaders in Pascagoula this week that he has seen a 45 percent decrease in insurance premiums on a neighborhood of sturdier cottages he built in Ocean Springs. Storm-resistant homes cost a little more to construct, he said, but the extra expense pays for itself.
That sentiment was echoed by
Mark Cumbest, a member of the Mississippi Windstorm Underwriting Association (the Magnolia State's insurer of last resort for coastal property owners). When his group travels to meet with major players in the reinsurance market in London and Bermuda, he said, the conversation inevitably turns to the status of building codes along the Gulf Coast.
"It's so critical," Mr. Cumbest said.
Baldwin County commissioners also recognize the connection between stronger construction and righting the market. Recently, they adopted updated international building codes for the county, specifically to produce savings for homeowners.
Baldwin building official Mike Howell said updated guidelines for the county may increase construction costs, but not much compared with the potential savings in damage claims and premiums.
There are many pieces of the puzzle that need to be examined as Alabama attempts to improve the homeowners insurance market. Experience elsewhere argues that mitigation needs to be a big part of the solution.
Posted 2/17/2012
Insurance industry touts statewide building codes for Alabama
From 2/15/2012 MPR article by George Altman
The creation of statewide building codes in Alabama is key to
solving the state’s property insurance woes and a top priority,
the Property Casualty Insurers Association of America group said
Tuesday, but the idea is far from passing the Legislature this
session.
The group remains opposed to a proposal that would force
insurers to publicly disclose -- in a statewide database,
searchable by ZIP code -- how many policies they write, how much
they charge for premiums and what losses they incur. That
legislation is a top priority for south Alabama lawmakers and
grassroots insurance overhaul supporters.
"Not all insurance companies gather information by ZIP code, necessarily. They may have their own, individual rating territory," said Chris Hackett, the group’s director of personal lines policy. He added that such a requirement would be "onerous."
Asked whether the industry group would support the proposal if its requirements were relaxed to allow reporting by such rating territories, Hackett said insurers would likely remain opposed. "To us, it’s unclear what the information is going to be used for, and if they’re really trying to get at consumer education, there’s better ways to do that," Hackett said.
Rep. Steve McMillan, R-Gulf Shores, was unmoved.
"We’ve heard all of that crying before," McMillan said.
McMillan and other supporters of the so-called clarity bill have questioned whether south Alabama residents are being forced to pay rates so high that they effectively subsidize coverage for the rest of the state.
"I think, when the clarity bill passes, we’re going to see a major unfair charging of the coast as compared to the damage that’s actually done," said Dan Hanson, a leader with the grassroots south Alabama interest group
Homeowners Hurricane Insurance Initiative.
Hanson expressed conditional support for statewide building codes, saying that while the idea has merit, he is concerned about the potential impact of such requirements on the poor, and he doubts whether insurers would lower premiums for more storm-resistant buildings.
The Alabama Department of Insurance believes that homeowners premiums are going down!!! Please send
HHII a brief summary of your story if your premium was increased this year. Send it, with your name, telephone number, and date, to Michelle at
hhiiact2@gmail.com.
Governor Bentley's Affordable Homeowners' Insurance Commission needs to hear from people who retrofitted their house and then their premiums went UP!! Please send HHII a brief summary of your story if
this has happened to you. Send it, with your name, telephone number, and date, to Michelle at
hhiiact2@gmail.com.
State-run entities that expanded over the past decade to provide affordable homeowners insurance in hurricane-threatened Florida are in danger of becoming so big they threaten to wreak havoc on the local economy.
Citizens Property Insurance Corp., already the state's largest home insurer, was growing late last year at a clip of 4,000 policyholders a month. It now has 1.5 million policyholders and a total exposure of $511 billion, about one-quarter of the market.
A sister entity, the Florida Hurricane Catastrophe Fund, is on
the hook to reimburse insurers operating in the state up to
$18.4 billion for losses they would incure from major storms.
It has about &7 billion on its books from accumulated premiums
from the past six years, in which Florida has been hurrican
free.
HHII, the three-year-old, coastal Homeowners Hurricane Insurance Initiative, serves on Governor Robert Bentley’s Affordable Homeowners Insurance Commission. Governor Bentley asked the Commission to solve the wind-and-hail insurance crisis. He vowed to call a special session of the Legislature if the Commission crafts workable legislation.
Even though Commission meetings are upstate and some require overnight stays, the state will not pay member costs. It won’t pay the costs of bringing in outside experts, either, nor for attendance of the HHII advisory team. As part of its strategy for leveraging real solutions, HHII is committed to bringing into public light as much about Commission activities as possible.
HHII is the only Alabama grassroots organization exclusively focused on getting this crisis fixed. It’s committed to representing the interests of families only. HHII member and advisory board attendance at Commission meetings, the need for outside expert testimony, and aggressive publication of Commission activities -- these costs will run several thousand dollars.
Revised 8/21/2011
DO YOU UNDERSTAND WHAT YOUR POLICY COVERS?
Homeowner
insurance policies can contain really important qualifying adjectives that
could easily be used to justify expansive claims denials.
For example, some carriers insure against what they call "risk
of accidental direct physical loss" and others against
"sudden and accidental direct physical loss."
Work with
an experienced and reputable insurance agent to cut through all the confusing language,
to be sure you have the coverage you want.
HHII has heard reports of homeowners who have dropped
all
insurance coverage because of unaffordable premiums. HHII urges
homeowners to maintain mult-peril (fire & theft) coverage even if they
can no longer afford wind coverage.
All HHII meetings are open to everyone interested in HHII's goals.
You do not have to be invited or a member of a committee to participate.
All good hearts and minds are welcome
(Last update 2/22/2012)
Call Michelle 251-928-3430 for more information about
any of these meetingsbr
Click on location link for map
Get to Know HHII Chats
This is the time when people who are new to HHII can ask all their
questions, tell us all their ideas and catch up on what has been
happening. Everyone is welcome!
ACT-II was developed by Baldwin County pastors in conjunction
with Ecumenical Ministries, Inc. Together we work on a wide variety of
problems in both poor and affluent communities around the county. Our
mission is to develop leaders and empower people to take democratic
action to improve the quality of life in our communities using our
dialogue to action church-based model and principles.
This site is maintained for HHII by Colin Keleher, who is solely
responsible for its content. In general, posts with upper case headings
originate with HHII; posts with lower case headings are aggregated from
the cited sources. Please report errors and make suggestions to colinkeleher@ieee.org
Dr. Don-Terry Veal is the Director of Auburn University's Center for Governmental Services. He is a national and international contributor to democracy and good governance, a writer and educator. Dr. Veal serves as chief administrator of several statewide governmentally mandated and credentialing associations. He has also founded online training programs supported by FEMA and provided consultation for governments and financial institutions in South Korea. Dr. Veal led applied disaster activities related to Hurricane Katrina, Haiti, and the Deep Sea Horizon oil spill in the Gulf. He recently made keynote addresses on transparency: in London, South Korea, and India. Dr. Veal also led initiatives in South Africa, Egypt, Vietnam, and participated in applied research activities in Europe, the Caribbean, South East Asia, and Africa.
Homeowner
insurance policies can contain really important qualifying adjectives that
could easily be used to justify expansive claims denials.
