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AHIC Educational Meeting Postponed
The education session planned for Monday, January 30, in Montgomery is officially postponed. A reschedule date will be provided very soon.
The one speaker scheduled to present in-person at the session has an unexpected conflict that prevents him from being in Montgomery that day. In addition, several AHIC members, including legislators critical to the AHIC efforts, have reported they will also be unable to attend on Monday. Chairman Russell believes asking the other AHIC members to drive several hours for one videoconference presentation and discussion without a significant number of participants is unfair.
Chairman Russell is currently attempting to reschedule for the first or second week of the legislative session, which begins February 7. He is extending invitations to legislators in leadership positions to join that session. Both speakers originally scheduled for the January 30 session will be included in the rescheduled session.
Signed: Renee Carter
Updated1/27/2012
AHIC 12/12/2011 Educational Meeting
Read official minutes of AHIC 12/12/2011 Educational Meeting
How to Deal With Catastrophes
Posted 1/5/2012
AHIC 11/7/2011 Educational Meeting
Read official minutes of AHIC 11/7/2011 Educational Meeting
Posted 11/17/2011
AHIC 10/17/2011 Listening Meeting
Read official minutes of AHIC 10/17/2011 Listening Meeting
Posted 10/29/2011
Affordable Homeowners Insurance
Commission visits Decatur
Read complete 10/18/2011 post by Brian Lawson, The Huntsville Times
Sharp rises in deductible rates, buried in the fine print.
Homeowners' insurance policies canceled unless the customers add an auto insurance policy.
People who cannot get a new homeowner's policy, even if they've never made a claim, because they were part of a mass cancellation of polices.
The problems described by area residents in Decatur on Monday night were not simple and neither is the task facing the commission appointed by Gov. Robert Bentley to develop proposals for lowering homeowner's insurance rates.
John Caylor, regional chair of the commission, said he's been struck by the scope of the difficulties homeowners are facing across the state and the depths of despair about a lack of affordable policies.
Jeanine Fowler, who lives in Logan in South Alabama described the plight she faces. Fowler and her husband, who is in the Navy and has spent the past three years in Afghanistan, have a modest home, not on the water. She said in shopping for a policy, the quotes ranged from $2,700 to $6,000. She took the lowest rate, but it's a third of her house payment. She said a friend who lives nearby in Florida, but on the water in a house similar to hers, pays $1,300 a year. Fowler said she lost her job in June and she expects her rates to go up next year. "We're trying to raise a family, but that's really hard to do in Alabama," she said.
Jimmy Hester, a longtime coach in Decatur, seemed to sum up the feeling of many in the crowd as he described being surprised to learn his policy deductible had jumped from $500 to $1,700 in one year. "It was in the fine print," he said. "If you're going to increase something that much, you need to do it in big, bold print."
Alabama Sen. Ben Brooks, R-Mobile, said he is continuing to work on legislation to help lower homeowner's insurance rates across the state.
Posted 10/19/2011
AHIC 9/26/2011 Listening Meeting
Read official minutes of AHIC 9/26/2011 Listening Meeting
Posted 10/6/2011
Alabama insurance special session possible in January
Read complete 9/17/2011 article
by Philip Rawls, AP
The special legislative session that Gov. Robert Bentley has promised on the affordability and availability of homeowners insurance could come in early 2012.
The governor and the chairman of his insurance commission said a special session is possible in January before the Legislature's regular session begins Feb. 7 or it could be called within the regular session.
The commission's chairman, Baldwin County Probate Judge Tim Russell, said the panel plans two more listening sessions: Guntersville City Hall at 6 p.m. on Sept. 26 and Decatur City Hall and Convention Center at 6 p.m. on Oct. 17.
The last two listening sessions will be followed by at least three meetings in Montgomery for the commission to hear from various experts, ranging from insurance actuaries to building code officials. Then the commission will work on proposed bills for the Legislature and possibly regulations for the insurance commissioner to consider.
Russell said the commission would like to have those to the governor in early January. That would leave the governor time to call legislators to Montgomery to focus on the insurance issue before their regular session, when the state budgets and hundreds of other bills would compete for attention. A special session within the regular session would require lawmakers to set aside all other bills for a week or two to work on insurance issues.
Posted 9/18/2011
Homeowners Insurance Commission meeting in Tuscaloosa draws small crowd
Read complete 9/12/2011 article
by Martin Swant --- The Birmingham News
Read official minutes of AHIC 8/30/2011 Listening Meeting
Although Tuscaloosa was one of the cities hit hardest by the April 27 tornadoes, public participation in the Affordable Homeowners Insurance Commission's hearing Monday night was sparse.
The Tuscaloosa hearing at the University of Alabama was the third of five hearings around the state. Last month, more than 700 people attended a previous hearing in Mobile with many expressing anger over the price of their property insurance.
One person who did speak Monday was Johnny Chaney of Fairhope. He dropped homeowners insurance in 2005 when his annual premium was $2,400, he said, because he hadn't had much damage from past storms and decided it was too expensive to keep. However, now that his home is paid for, he worries about what could happen if a storm does hit his house sometime in the future. "I'm at the mercy of FEMA if a storm does come through and destroys my home," Chaney said.
Posted 9/14/2011
No insurance crisis evident in Dothan;
meeting draws small crowd
Read complete 8/31/2011 article by
Jeff Amy, Press-Register
Read official minutes of AHIC 8/30/2011
Listening Meeting
Tuesday in the state’s Wiregrass region, fewer than 40 attendees rattled around a city gymnasium for a meeting with the Affordable Homeowners Insurance Commission. Only four people spoke.
Convincing people who are farther away from the coast that they should worry about insurance problems was difficult before April’s tornadoes. Efforts to make insurance changes have been dogged by accusations that relief on the coast would mean higher rates upstate.
Sandra Ball of Dothan asked whether that was the commission’s aim.
“I don’t know what is fair,” she said. “That’s what I’m asking you.”
The commission members in some ways tried to persuade the small audience that the problem was something the whole state should worry about.
“In my district and my county, it’s a real crisis,” state Sen. Ben Brooks, R-Mobile, said. “I also look forward to making the case why it’s a serious issue around the state and not just in Mobile County.”
Posted 8/31/2011
Forum Held in Dothan to Hear Citizens Concerns About Homeowner's Insurance
Read complete 8/31/2011 report by WTVY's
Deanna
Bettineschi
"Us citizens are trying to figure out why there are such differences in premiums"
Many wonder if the price of homeowners insurance will ever become more affordable.
Right now they're worried they won't be able to pay premiums if the price continues to climb...especially in coastal areas.
"The statewide averages is about eight hundred and fifty four dollars and that includes everything, liability, fire, wind and hail...plus a modest deductible of around five hundred dollars....well my premiums are three thousand one hundred dollars and my deductible is seven thousand dollars." Representative of
Homeowners Insurance Initiative
Michelle Kurtz said.
Those groups included insurance companies.
Agents say the business is highly regulated and needs to have competitive rates to stay in business.
They believe homeowners have to expect higher rates if they are in an area of higher risk.
"Areas that are more susceptible to catastrophes and particularly coastal areas are typically going to pay a higher premium based on expected losses and historical losses." Jack Brunson with the National Security Fire and Casualty Company said.
Michelle Kurtz is hoping to get this clarity bill passed.
The whole point of it is so home owners can compare premiums.
"We would ask aggregate data over the last ten years of the number of policies, dollar amounts of premiums coming in, the dollar amount of claims going out, so we can see the ratios throughout the state." Kurtz said.
Many are grateful Governor Bentley is so committed to improving homeowners insurance in Alabama.
They also believe going statewide to hear citizens concerns is a step in the right direction.
Posted 8/31/2011
Overflow crowd calls on insurance commission to lower rates
Read original article by Jeff Amy, Press-Register, 8/30/2011
Read official minutes of AHIC 8/29/2011
Listening Meeting
Written comments submitted at 8/29/2011 Meeting
Mail received by AHIC following 8/29/2011 Meeting
An overflow crowd of more than 700 people, mostly angry about how much they pay for property insurance, pressed the Affordable Homeowners Insurance Commission for relief Monday night.
People sat on the carpet of the Arthur R. Outlaw Mobile Convention Center as speakers repeatedly told the panel that they were at the breaking point financially, unable to afford higher premiums.
Darla Hayes of Mobile said she was a single mother, who worked long hours to afford her home. “I sit knowing that I may not be able to sit in that home next year,” Hayes said, her voice cracking.
A.R. Grimes of Theodore said he dropped his wind coverage rather than pay the cost.
“I decided I was not going to pay for my home and then rent from the insurance company,” Grimes said to applause.
The panel, charged by Gov. Robert Bentley with making insurance cheaper and more available, held the first of five public hearings.
Another is scheduled at 6 tonight in Dothan, followed by meetings next month in Tuscaloosa, Decatur and Guntersville. The group is supposed to issue recommendations for Bentley to forward to a special session of the Legislature.
Among the common themes Monday night were retired and working people whose incomes don’t increase at the same rate as premiums. Also repeatedly raised was the specter of having to pay a large deductible after a storm.
Several speakers also said that they felt efforts to tighten building codes should not be the main focus of the commission’s effort.
Baldwin County Probate Judge Tim Russell, who chairs the group, said Monday was valuable because it gave commission members from outside Mobile and Baldwin counties the chance to gauge the depth of coastal residents’ frustration for themselves.
“It’s like seeing out into the future, hearing what you guys are talking about now,” said panel member Liz Huntley of Clanton, referring to fears that insurers could drop coverage and raise rates in the rest of Alabama following the April tornadoes.
It was clear that many attendees were tired of talking about their problems and were ready for action.
“I think it’s time for the Legislature to get on with it,” said Louisa Toler, who lives east of Daphne.
Linda King of Cypress Shores said she worried about being covered by a surplus lines company, which is only lightly regulated by the state. “Find a way to lower premiums,” she said. “The way I see it right now, the deck is stacked against the consumer.”
Stan Virden, representing the Hurricane Homeowners Insurance Initiative, pressed for the citizens’ group proposal to force insurers to reveal what they charge in premiums and pay in claims in various areas.
“We have found there is no sound actuarial basis at the Department of Insurance for these premiums,” Virden said. “We need clarity on why our rates are so distorted. We need equity on availability and cost.”
A number of people said that 5 percent hurricane deductibles, now required by most carriers, have shifted too much risk onto property owners.
Severia Morris, of the United Concerned Citizens of Prichard, said she faces a $7,500 deductible, and doesn’t know how she’d pay it.
“What is going to happen to us?” Morris asked. “We have worked all of our lives and retired. There seems to be no hope for us.”
John Williams, the president of the Mobile Home Builders Association, said builders have been forced to construct stronger houses by new building codes, with a promise that residents of stronger houses would have an easier time finding coverage. He suggested insurers weren’t keeping their end of the deal.
“The underlying goal of the insurance industry is not safety,” Williams said. “It’s to have no insurance claims.”
Fairhope Mayor Tim Kant, who suggested tax credits or favorable rates for senior citizens, said demands for ever-stronger building codes were unworkable.
“Building concrete bunkers and cutting down all the trees in Fairhope is not an option,” Kant said. “We need relief now, not six more years of talking about it.”
After hearing from consumers, the commission agreed, among other things, to appoint a special panel to explore multi-state solutions. State Rep. David Sessions, R-Grand Bay, has been added to the panel, giving it 31 members
People who would like to send comments to the panel can write to:
Affordable Homeowners Insurance Commission
c/o Alabama Department of Revenue
4112 Gordon Persons Building
50 North Ripley St.
Montgomery, AL 36132
Posted 8/30/2011
Gov. Robert Bentley urges consensus-building as insurance panel launches
By
Jeff Amy, Press-Register
 MONTGOMERY, Alabama — Gov. Robert Bentley charged the members of his insurance commission Monday to go forth, listen, and bring back solutions that meet broad agreement.
“The customers that are in this state, they need choice and they need affordability,” Bentley told the first meeting of the Affordable Homeowners Insurance Commission. “I want you to be willing to go to different areas of the state and hear those people in those areas.”
He also told the group that reaching a consensus among consumers, insurers and other participants would be key to his calling a special state legislative session to enact reforms.
“I promised I would call a special session if you come up with a set of bills that everyone can agree with,” the governor said, adding that he didn’t want to risk the hundreds of thousands of dollars required for a special session without clear lines of agreement.
Three members who hadn’t been previously announced attended Monday’s meeting — Mobile County Engineer Joe Ruffer, who oversees the county’s building code enforcement; Clanton attorney Elizabeth Huntley and Montgomery resident Tom Malone. That brings the announced number of commission members to 30, including the chairman, Baldwin County Probate Judge Tim Russell.
Read full article here
Posted 8/2/2011
Gov. Bentley adds 3 more to Alabama's state insurance panel
Jeff Amy, Press-Register Jul 13, 2011 -
Show original item
Gov. Robert Bentley has added 3 more people to the panel that will examine the state’s insurance market and recommend improvements.
they include:
Rep. Joe Faust, R-Fairhope,
Rep. A.J. McCampbell, D-Gallion, also a State Farm Insurance Cos. agent, &
Darius Foster, a nonprofit executive and Republican activist who lives in Birmingham.
Spokesperson Ardis said no more additions are planned. She said Baldwin County Probate Judge Tim Russell, the group’s chairman, is working on scheduling the first meeting. The group is supposed to develop recommendations for a special legislative session that Bentley has pledged.
Posted 7/13/2011
Gov. Bentley names 24 to insurance reform commission
Gov. Robert Bentley has named 24 people to a panel to examine and recommend improvements to the state’s insurance market, a commission meant to lead up to a special session of the Legislature on the subject that Bentley pledged.
The Affordable Homeowners Insurance Commission will be led by Baldwin County Probate Judge Tim Russell, as reported earlier by the Press-Register. It also includes state Insurance Commissioner Jim Ridling, state Revenue Commissioner Julie Magee, lawmakers, insurance agents, policyholders and representatives of three insurers, according to information obtained Friday.
Other members are State Sen. Ben Brooks, State Rep. Steve
McMillan, HHII's Michelle Kurtz, and Carl Schneider.
Russel said he hoped to again put forward the idea of a captive insurance company that could accumulate reserves tax-free and provide less expensive reinsurance to companies covering Alabama homeowners.
"I’m looking to get bills on paper that we can vote on in a special session," said state Sen Ben Brooks, R-Mobile. Brooks has successfully passed several bills, and has others that he hopes to make law.
Brooks said he expected a special session in October or November, which implies three or four months for the commission to complete its work.
"The commission needs to give hope to citizens that insurance will live up to its calling to provide the way to recover after a catastrophe," said Michelle Kurtz of the Homeowners’ Hurricane Insurance Initiative, a citizens’ group pushing for lower rates.
Read complete 7/9/2011 article by Jeff Amy, Press-Register
Posted 7/9/2011
Baldwin County's Tim Russell likely to lead Bentley's insurance reform panel
Jeff Amy, Press-Register Jul 7, 2011 -
Show original item
Gov. Robert Bentley could name an insurance reform task force before the end of the week, spokeswoman Jennifer Ardis said Wednesday. "We are working on it and we are very close to having all of the committee members in place,"
Ardis said.
Others in line to join the panel are state Sen. Ben
Brooks,, a Mobile Republican who has authored a series of
insurance changes, and state House Insurance Committee Chairman
Mike Hill, a Columbiana Republican, McMillan said.
Michelle Kurtz of
Homeowners Hurricane Insurance Initiative also indicated
that Bentley was considering her for a spot. Mobile insurance
agent
Carl Schneider has also said he is under consideration.
Posted 7/7/2011
National Association of Mutual Insurance Companies expressed its support
By Diana Rosenberg, senior associate editor, BestWeek
MONTGOMERY, Ala. April 07 (BestWire) — Alabama Gov. Robert Bentley signed an order to create a commission to study the cost of homeowners' insurance
for people living in coastal areas.
Seven individuals, who have yet to be named, will serve on the Coastal
Insurance Commission, to make recommendations how to make homeowners'
insurance more "affordable and comprehensive," according to the governor's
order.
"We hope that out of this commission will come definitive action," said
Michelle Kurtz, community consultant for the Homeowners' Hurricane
Insurance Initiative, a group of residents in the coastal counties of
Mobile and Baldwin.
Kurtz said the organization wasn't looking for another commission, noting
there previously have been two others, with plenty of studies and "lots of
great ideas."
The Homeowners' Hurricane Insurance Initiative, whose members have served
on previous panels, hasn't been contacted by the governor's office about
the new one, she said. The group's steering board will meet in the coming
days to discuss whether to volunteer.
The group, which is sponsored by the Baldwin Churches Community
Organization, supports legislation, SB 2, known as the Property Insurance
Clarity Act, which would require insurance companies to provide policy and
premium information, including the number of policies written, direct
earned premiums and direct incurred losses, to the department of
insurance. When Bentley ran for governor, he promised the group he would
support the bill, Kurtz said.
The National Association of Mutual Insurance Companies expressed its
support."We believe the commission should focus on a balanced, free-market
approach, with emphasis on long-term solutions that benefit individuals
and communities," Liz Reynolds, state affairs manager for the Southeast
for NAMIC, said in a statement. "Risk-based pricing, actuarially sound
rates, and loss mitigation should be the core of any proposed solution.
Any reforms to the current regulatory system should have the objective of
attracting capital, not scaring it away."
The companies with the largest market share in the Alabama
homeowners multiperil market in 2009 were State Farm Group, with
a 26.14% market share; Alfa Insurance Group, with a 19.14%
share; Allstate Insurance Group, with a 10.8% share; Farmers
Insurance Group, with a 9.12% share; and Travelers Group, with a
5.63% share, according to BestLink, which provides online access
to A.M. Best's database of insurance information.
Posted 4/12/2011
Bring everybody to the table on insurance issue
The Press-Register's 4/10/2011 editorial disappoints in its
support of yet another commission to study coastal insurance.
No mention is made of bringing HHII to the table and none of the
solutions proposed will achieve the most important goal of
bringing about significant reduction in premiums NOW.
Read PR editorial
Posted 4/11/2011
Governor Bentley Creates Coastal Insurance Commission
On April 6,
Governor Robert Bentley signed an Executive Order
creating a commission to study and address the rising cost of insurance for coastal homeowners. The Governor’s Coastal Insurance Commission will address the need for affordable and comprehensive insurance for Alabama’s residents on the gulf coast and make recommendations to the Governor.
“The lack of affordable homeowners insurance for people who live on Alabama’s coast impacts the entire state far beyond the coastal communities in which their homes are located.” Governor Bentley said. “We must stop the rising cost of coastal insurance for the benefit of all Alabamians.”
The Governor’s Coastal Insurance Commission will consist of seven members appointed by the Governor. The Commission will make reports to Governor Bentley at his request.
Read Mobile Register reporter Jeff Amy's article
Leave your comments on the HHII Forum
Updated 4/7/2011
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KAREN CLARK TO PRESENT AT DECEMBER 12
AHIC EDUCATIONAL MEETING
Karen Clark is an expert in the field of catastrophe risk
assessment. She developed the first hurricane catastrophe model
in 1983 but she is now worried that models are being given more credit and influence than they deserve.
Read and listen to her
Presentation on Model Limitations to
the National Association of Insurance Commissioners. Also
read a follow up presentation
on Using Catastrophe Models and Other Tools to Assess Hurricane Risk.
You can read much more about hurricane risk modeling
here.
Posted 12/2/2011
FELLOW COMMISSIONER CALLS HHII REPRESENTATIVE'S EFFORTS 'SILLY'
& 'SNIPPY'
A fellow member of Governor Bentley's Affordable Homeowners Insurance
Commission has referred to efforts by Michelle Kurtz to focus
the agenda, as "silly emails" and "snippy." Kurtz represents HHII, the Homeowners Hurricane Insurance Initiative on the Commission.
The remarks were made by her co-chariman on the Agenda Committee.
As a former Presbyterian Missionary with a masters degree that prepared her well for developing strong deliberative processes, she has struggled to get the Agenda Committee to meet the number of times necessary to help the Commission create a healthy problem-solving process.
Two prior governors' commissions have failed to fix the coastal insurance problem, and some HHII members believe unhealthy process played a role in their failure.
Kurtz has struggled,to have the Commission establish intentional time at the beginning of its study to clearly define the insurance problem. In conversations outside the Commission individuals in the past have said the problem is that coastal residents don't know how to shop for insurance or that they made poor choices moving to Mobile or Baldwin counties. Kurtz was successful in getting the Commission to take deliberative time and a first step toward clearly defining the problem, but has not been successful yet getting them to refine the statement.
She has also tried to get the Commission to take intentional time to sort facts from opinions before it begins deliberating on solutions. To date she has not been successful.
Nor has she been successful getting the Commission to agree to explicitly discuss how its proposed solutions will fix the coastal insurance problem. (And to
record the results of that discussion in its minutes.)
HHII's steering committee has been privy to all Michelle's communications and not once has
she been "snippy" nor has she worked in a way that could be accurately called "silly."
Posted 11/20/2011
Gov. Robert Bentley's insurance commission:
Legislation better late than never
Alabama Homeowners Insurance Commission is currently in "education phase," package of bills could be presented in regular session
Read 11/18/3022
Courier article by Gabriel Tynes
Members of Gov. Robert Bentley’s Affordable Homeowners Insurance Commission are still optimistic about solving the state’s epidemic of skyrocketing premiums and dropped policies, even if it takes a few months longer than expected. Originally hoping to convene in a special session in December or January, it’s more likely the commission won’t be prepared until the next regularly scheduled legislative session begins Feb. 7.
But State Sen. Ben Brooks and Rep. Steve McMillan, two of nearly 30 people who have been actively engaged in the commission since its inception in April, said a package of bills already exists that could be presented to a special session if necessary. Yet both would prefer to wait until the commission’s work is complete and a handful of additional bills were drafted to strengthen the package.
“We have a bill now that deals with matters of transparency, a bill that mandates the restructure of the state wind pool, and one that provides incentives for increased availability and affordability of insurance,” Brooks said. “But other ideas are on table that would address how deductibles are handled, would provide funding for grants to retrofit homes, could create a new class of policies, or possibly promote a regional interstate cooperative.”
The commission sought initial public comment from an overflow crowd in Mobile Aug. 29 before moving to sparsely-attended forums in Dothan, Decatur, Tuscaloosa and Guntersville. The education phase began in Montgomery Nov. 7 with an “Insurance 101” presentation from State Insurance Commissioner Jim Ridley and a legislative update from Brooks. There are two more education meetings scheduled Nov. 21 and Dec. 12 which will discuss a state-backed loan program, reinsurance and risk modeling, among other things.
Reportedly, a few commissioners, those who aren’t elected officials or employees of the insurance industry, are seeking additional education sessions, citing the complexity of the issues.
“We are in an education phase now to make sure that everyone is up to speed, but time is becoming a consideration,” McMillan said. “Frankly, I was disappointed with the public participation at the meetings in the northern part of the state, and maybe some of those meetings were unnecessary, but soon it’s going to be time to start working on something substantive.”
Rep. Joe Faust, also a member of the commission, is pushing for a captive insurance option, which would allow individual counties to apply for coverage.
“I’ve been dealing with this for five years so these education meetings are very boring to me,” he said. “I appreciate sharing that information with everyone else, but it’s time to quit cutting bait and get to fishing.”
Dan Hanson, who along with commission member Michelle Kurtz is a consumer advocate with the
Homeowners Hurricane Insurance Initiative, said that if the commission isn’t thorough, it will fail.
“I know we can’t put this off for another year but we want to take the time needed to find the proper solutions,” Hanson said. “Consumer representatives are at an extreme disadvantage and we are constantly being reminded that every commissioner is serving on a volunteer basis. But if they don’t have the time to spend on it then maybe they shouldn’t have volunteered to begin with.”
Hanson argues that despite public perception, high premiums along the coast are a statewide problem that will require sacrifices from each and every county.
“Sixty-five of 67 counties in the state declared states of emergency after Hurricane Ivan, yet we only saw that exponential rise in deductibles along the coast,” he said. “We’ve got substantial evidence that risk models that were used after Hurricane Ivan under-reported damage upstate as much as 400 percent. So they are in this too.”
“I don’t know if it was productive for us to hold the listening sessions in some parts of the state that aren’t dealing with the same issues we are on the coast,” he said.
In the meantime, commissioners are convening in a series of “education meetings,” which are meant to make sure everyone is up-to-speed on issue.
State Rep. Steve McMillian, who serves on the commission along with about 30 other people from around the state, said he would propose five citizen forums.
Posted 11/19/2011
AFFORDABLE HOMEOWNERS' INSURANCE COMMISSION
EDUCATIONAL SESSION
The Affordable Homeowners Insurance Commission (AHIC) is having
an education session for the commissioners on Monday, November
7th. This would be great information for you right from the
Department of Insurance and Senator Ben Brooks. Citizens can
observe and if you want to join us you can either organize a van
pool (HHII is unable to provide transportation) or you can view the sessions live by means of U-Stream on your computer. You
will need an internet connection. We will send out the link later in the week.
The AHIC is in process of calling experts to present at this session. HHII wants Karen Clark to present because she challenges the accuracy of the Catastrophe models. At this point in time,
the AL DOI does not want her to present. WHY? View
Karen Clark's Presentation on Model Limitations &
click here to read
more about hurricane risk modeling and its limitations
It is possible for this commission to do its work and no one would ever know. The struggles of the only church based citizen's group on a commission with a majority of
its members coming right out of the insurance industry is not being
fully reported in the papers. The newspaper reports miss the debates, issues and tension points in the commission's deliberation. You need to judge if this commission is serving the Governor and YOU.
By coming to this session, you will learn the basic vocabulary of insurance and why your premiums are going up. Your HHII representative on the commission will share with you what is happening and we will discuss how you can respond to the work of the commission. You can have a great influence on this commission. Don't stay home!!
Posted 10/30/2011
PRESENTERS FOR AHIC EDUCATION PHASE
HHII has asked the commision to approach the undernoted experts
to make presentations during the education phase.
Robert Hunter with Consumer Federation of America.
Ex-Texas DOI commissioner.
Amy Bach with United Policyholders of America
Karen Clark with the catastrophe modeling company of Karen Clark & Company
Gene Taylor, ex-US Senator of Mississippi who promoted the Multi Peril bill
Pat Maroney, who works for the Florida Hurricane Commission and could report on the viability of a multi-state solution.
Posted 10/21/2011
MEET THE AHIC COMMISSIONERS
Watch HHII-TV production on YouTube
Governor Bentley appointed a 30-member Affordable Homeowners Insurance Commission which is supposed to fix the coastal and upstate insurance crisis. (This is the Commission that listened during a meeting at the Mobile Convention Center as dozens of speakers from a crowd of 700 people described insurance injustices they personally experience in the coastal counties.)
This special Commission held its first organizational meeting in Montgomery in late August. Each member of the Commission introduced him or herself and said a few words. Each gave their occupation. We edited the 90 minutes down to six. Count how many are tied to the insurance industry.
Governor Bentley's words are captured at the end of the video. Watch to see: Does he call on the committee to fix the insurance crisis or just address it?
Take the few minutes needed for to get this inside glimpse of Montgomery at work.
Then . . . . . .help HHII and others figure out what to do next. Come to
an HHII meeting near you and share your opinion.
Posted 10/2/2011
INSURANCE COMMISSION HEARS
BALDWIN & MOBILE COUNTIES' PAIN LOUD AND CLEAR
Picture & additional material from
article by Gabriel Tynes
on BaldwinCountyNOW
Hundreds showed up hoping to let the Commission hear their
stories of pain and frustration. Time constraints limited
the number who could speak but Sen. Ben Brooks was fair and
efficient in managing the time allocated and calling individuals
to the microphone.
The meeting was opened with prayer, as HHII had requested.
One speaker later expressed his appreciation and said he
believed lack of prayer contributed to the moral terpitude
plaguing the insurance issue.
Many of the stories echoed those on
HHII's Stories page. Other speakers stressed this was
not just an issue for homeowners but for small business owners,
too, who could not absorb the increased cost for
insurance.
Carolyn Vaisin of Fairhope said, “I just can’t understand where
the insurance companies have any liability except if our homes
are taken completely off the slab." Vaisin, who is on a
retirement income, said her premiums increased from $2,000 to
$7,500 before she found a company that lowered it to just under
$5,000 per year. “We’ve got to get back to reality. It’s a
terribly unfair situation.”
Stan Virden, representing the Homeowners Hurricane
Insurance Initiative, said, “some of us are paying six
times what we were before 2006. We have found that there is no
sound actuarial basis for these rate increases and we need
clarity on why our rates are so distorted.” Virden pointed out
that this was the third state commission to study insurance
reform, but “the major thing that has been suggested so far is
fortification, which we support, but many of us do not have
homes that can be raised to that level. We need the commission
to come up with recommendations that will fix premiums today if
you want to fix the problem."
The need for transparency, and passage of the
Transparency Bill, was
repeatedly stressed. Mayor Kant said Department of
Insurance (ADOI)members should be elected like the PUC, and that
insurance books should be open for public inspection when rate
increases are requested.
Starke Irvine, speaking on behalf of the Baldwin County
Association of Realtors, echoed that urgency, and said his group
was strongly in favor of passing the Property Insurance Clarity
Bill, which would require insurers to be more transparent by
providing data about policies and premiums written in the state
along with actuary and risk calculation information.
“What (the clarity bill) would do, in my opinion, is solve a
problem that the insurance companies have developed themselves
in the area of trustworthiness and dependability.” Irvine, who
served on the Alabama Insurance Commission for seven years, said
a similar bill is in place in Texas and it would be easy to
implement given today’s digital infrastructure. “We want to see
what you collect and what you pay out. We think that’s a fair
thing to ask for, so when you tell me my premium is going up 500
percent I’ll understand it better,” said Irvine.
Several speakers questioned the effectiveness of the ADOI in
protecting the consumers' interests or expressed the opinion
that the department was beholden to the insurance industry and
its lobbyists. Although these remarks were not intended as
a personal attack on Commissioner Ridling, he was clearly
discomfitted by most of what he heard.
Among the suggestions for reducing premiums were allowing the
purchaser to decide and buy only the coverage they needed, not
what the insurance company said they had to have; and
determining reconstruction costs base on actual local - not
national - averages.
See more comments concerning the meeting on the
HHII Forum
Revised 9/3/2011
Governor's insurance reform commission meeting in Mobile
From 8/29/2011 article
by Gabriel Tynes
on BaldwinCountyNOW
Dan Hanson of the grassroots organization Homeowners Hurricane Insurance Initiative said the goal of
the August 29 meeting would be two-fold.
“We need to first of all define the problem, so every member of this commission understands what’s unfair and unreasonable about the current insurance situation,” Hanson said. “We also want them to understand that from our point of view, if they fail to lower premiums and get them in line with the rest of the state or other coastal areas, they have failed as a commission.”
Hanson said ultimately, he would like to see the commission endorse the Property Insurance Clarity Bill, which the legislature could pass in a special session. The bill would require the insurers to be more transparent by providing data about policies and premiums written in the state and actuary and risk calculation information.
“We should not be forced to subsidize the rest of the state,” Hanson said. “We’ve always been here and hurricanes have always been here so we’re not convinced the difference is justified.”
Hanson said the HHII has met with nearly 4,000 people at community meetings during the last two years.
Posted 9/3/2011
FIRST MEETING OF GOV. BENTLEY'S AFFORDABLE HOMEOWNERS INSURANCE
COMMISSION
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Michelle Kirtz of HHII at first meeting of Affordable Homeowners Insurance Commission
Thirty-five people from Mobile and Baldwin counties rode HHII-provided church buses and cars to Montgomery for the first meeting. Two people from BISCO, a south Louisiana organization of church-based community-improvement organizations affiliated with HHII attended, too. Their presence illustrated that a smattering of national interest has begun to focus on this commission. Insurance companies have suddenly begun doing things similar to what they’re doing to Alabama’s coastal counties to coastal counties from the Mexican border to Massachusetts.
Read official minutes of meeting here
Read HHII's view of the meeting here
Revised 8/22/2011
HHII GOES TO MONTGOMERY
The first session of the Alabama Governor's insurance commission
met yesterday and we saw little lights of hope.
There were 37 from HHII
& two representatives from our sister organization in Louisiana - BISCO!!! We made a big difference! Stan Virden was able to make a short
speech on the floor.
Governor Bentley repeated at least four times that we must “solve” this insurance problem – not address, not study – but SOLVE. That is a good start.
And the chair of the commission is promoting a State captive or some sort of mechanism for homeowners and another captive as a way to do reinsurance.
So, nothing definite, but an indication that there MIGHT be a better atmosphere than ever before to consider new ideas. Plus, US Representative Bonner for the State of Alabama wants to explore solutions at the Federal level. HHII is very hopeful.
Updated 8/8/2011
Alabama Affordable Homeowners Insurance Commission. E&I is proud to congratulate coalition member Homeowners' Hurricane Insurance Initiative (HHII) on their appointment to Governor Bentley's Affordable Homeowners Insurance Commission. Michelle Kurtz will represent HHII on the commission, and as a community we look forward to hearing more about this important work and progress. The first commission meeting is scheduled for August 1st.
Posted 8/13/2011
HHII GOES TO MONGOMERY
The Governor's newly-appointed Affordable
Insurance Commission is covered up with
insurance company interests. More than half the
27 members are directly tied to the insurance
industry. The consumer is barely visible. Maybe
this governor's commission (this is the third
governor's commission) will fix our crisis.
Maybe not. One of the best ways to push
for honest solutions is for the public to watch
every move.
Revised 9/18/2011
HHII News Release
For immediate release – July 9, 2011
Representatives of the Homeowners Hurricane Insurance Initiative (HHII), the faith-based, grassroots political group that has fought for more affordable property insurance, today thanked the Governor for appointing one of their members, Michelle Kurtz, to the Governor’s Commission on Insurance.
HHII had been promised representation when it met with the Governor on Feb. 16, Janssen said and we are grateful to be able to serve.
“In Baldwin and Mobile counties, at least 52 thousand homes are now without wind and hail protection because insurance companies have been allowed to simply walk away from this protection while dramatically raising rates in coastal counties for fire and theft insurance, said Janssen. After the disaster up north with the tornados we want to be double sure we work together for lasting solutions.
“Voters are tired of being prey for wealthy insurance interests,” he said.
“In the past, most appointees to insurance commissions have been foxes in the homeowner henhouse. Although outnumbered and outspent, HHII will fight to assure the Commission serves citizens, not lobbyists” said Janssen.”
“The insurance industry lobby has been able to distinguish itself as the only business, except baseball, without the consumer protections of federal anti-trust laws. They can legally collude to set prices and selling conditions. HHII will endeavor to work so that insurance returns to its original vocational calling in society – to provide a future and a hope!” Janssen said.
Janssen stressed that the efforts of the homeowners group are aimed at reducing premiums of all Alabamians, significant reduction of premiums, a sustainable solution, which includes mitigation and just payment of claims.
“Increasingly, minorities, the poor and the middle class are forced out of the home ownership market because of unjustified insurance cancellations driven by greed and/or an incompetent business models,” he said.
“In particular, the poor, working poor and middle class are threatened. Soon, only the uninsured wealthy who can afford to lose their homes to fire, flood or tornados will live in these areas of Alabama. This is an unacceptable disruption in the Alabama economy that must be addressed in the Governor’s upcoming special session on insurance reform.
“Unless the excesses of the virtually unregulated insurance factions are mitigated by legislative action, jobs in our state soon will be in even bigger trouble than they are now.
“Already, we have seen the unfair pricing heaped on Alabama homeowners on the coast, with premium increases often quadrupling over only a few years. This can’t continue to accelerate and we would hate to see this happen to the tornado survivors,” Janssen said.
HHII goals are significant reduction of premiums, a sustainable solution and just payment of claims.
Posted 7/9/2011
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