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July 2007 COMMISSIONER MCCARTY ORDERS INSURER TO REFUND $43.2 MILLION TO CUSTOMERS TALLAHASSEE (06/15/2007) - Florida Insurance Commissioner Kevin McCarty issued a Consent Order requiring United Property & Casualty Insurance Company (United) to refund millions of dollars in unapproved homeowners' insurance rate increases. Last October, United began charging its customers higher insurance rates before the Florida Office of Insurance Regulation (Office) officially approved the rate increase. This was allowed under Florida law at that time and was referred to as a "use and file" rate increase. However, the law also stated that if, after the Office reviewed the increase and determined that it was too high, the Office had the authority to require the company to return to policyholders the difference between the original rate charged and the rate ultimately approved by the Office. Based on the latest rate collection data, the actuarial estimate of the difference between the amount charged and the amount approved is $43,249,714. "Recent legislation in Florida prohibits property insurers from using use and file rates in the future, but United engaged in this action last year before it was banned," McCarty said. "We will continue to aggressively pursue all refunds and credits that are due to Florida consumers." The Consent Order requires United to begin refunding immediately. Following the refund process, the Office will ensure adequate refunds are processed by requiring a certification from United showing the final amount. Source:
www.floir.com COMMISSIONER WELCOMES EIGHT NEW PROPERTY & CASUALTY INSURERS TO FLORIDA TALLAHASSEE (06/04/2007) - The Florida Office of Insurance Regulation finished a busy week before hurricane season finalizing two applications bringing the total to eight new insurers entering the property and casualty insurance marketplace in Florida since January 1, 2007. The insurers represent a myriad of different types of insurance entities including surplus lines, alien, foreign, and domestic property and casualty insurers. Together these entities represent $1.2 billion in capital investment. While all insurers are important additions, the most dramatic new entrant is Ironshore Insurance Ltd., a Bermuda-based surplus lines company. Beginning with nearly $1 billion in equity capital, this new company will serve a critical demand: covering commercial risk with wind exposures in the catastrophe-prone coastal states. On May 15th, Ironshore also received approval to operate in South Carolina. "It gives me great pleasure to introduce new insurers to the State of Florida," remarked Insurance Commissioner Kevin McCarty, "These new companies not only provide much needed investment to our marketplace, but demonstrate the commitment of the industry to continue to conduct business in our state." Two other surplus lines companies have received approval to write in Florida. Delaware-based Praetorian Specialty Insurance Company will write commercial multi-peril and allied lines, while the United Kingdom-based Arch Insurance Company (Europe) Limited will target the commercial market by focusing on the energy risks of oil companies. Praetorian Specialty has been licensed in Florida since 2001 as an accredited reinsurer, but has recently decided to expand into the surplus lines market. An accredited reinsurer is an entity permitted to sell "back-up" insurance to insurance companies. Florida will also benefit from four new domestic insurers, and one domestic reciprocal. A reciprocal is an exchange in which each insured in the group mutually insures other insureds in the exchange. In the past week, Modern USA Insurance Company was admitted as a domestic insurer that will focus on mid-to-upper level homeowners insurance, while Olympus Insurance Company, also admitted this week, has plans to begin writing homeowners policies by the fourth quarter of 2007. In addition, American Keystone Insurance Company will write homeowners insurance for values structured from $250,000 to $3 million; Homeowners Choice Property & Casualty Insurance Company plans to take-out 15,000 to 20,000 policies from Citizens Property Insurance Corporation in July. The only reciprocal company in this group of companies, Privilege Underwriters Reciprocal Exchange, Inc., will target high net worth clients in Florida in the homeowners and personal auto lines. Source:
www.floir.com U.S. DEPARTMENT OF LABOR'S OSHA WORKING OVERTIME TO ENSURE CONSTRUCTION SITES ARE SAFE FOR EMPLOYEES SATURDAY SAFETY AND HEALTH INSPECTIONS ARE ROUTINE DURING PEAK CONSTRUCTION SEASON CHICAGO -- The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) is working overtime during the busy construction season to ensure builders are following proper safety and health standards for their employees. The agency is conducting unannounced Saturday inspections of construction work sites as part of its Summer Weekend Construction Inspection Program. "We have found that some construction sites are not as vigilant about maintaining required safety practices during weekends," said Michael Connors, OSHA's Midwest regional administrator. "The OSHA standards are proven methods of keeping employees safe and are to be followed seven days a week, 365 days a year." OSHA's mission is to assure the safety and health of America's working men and women by preventing injuries, illnesses and fatalities. The agency has a vigorous enforcement program, having conducted more than 38,000 inspections last year and exceeding its inspection goals in each of the last seven years. In fiscal year 2006, OSHA found nearly 84,000 violations of its standards and regulations. The Summer Weekend Construction Inspection Program has been very successful since its inception three years ago. The building and construction industry is one of the most dangerous for employees. The private construction industry accounted for 1,186 fatal work injuries in 2005, the most of any industry sector, and representing about one out of every five fatal work injuries in all industries. Source:www.osha.gov COMMISSIONER STEVE POIZNER SIGNS OPERATING AGREEMENT WITH GERMAN INSURANCE DEPARTMENT Historic Accord Allows for Investigative Assistance and Information Exchange SACRAMENTO - Today Insurance Commissioner Steve Poizner signed a memorandum of understanding (MOU) with the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), the regulatory and supervisory body for all insurance business transacted in Germany. This is the first-ever MOU between the California Department of Insurance (CDI) and a foreign country. "Consumers in California and Germany will be better protected with this agreement in place," said Commissioner Poizner. "Our insurance industries will be better served, too." The MOU provides a formal basis for reasonable cooperation and coordination between the CDI and the BaFin to exchange information and, where appropriate, investigative assistance regarding companies and persons engaged in the business of insurance. The MOU does not modify or supersede any laws or regulatory requirements applicable to the CDI or the BaFin. It also contains privacy provisions that protect confidential information of persons and/or companies, yet allows for more efficient performance of each entity's duties. "I believe this MOU will provide a blueprint for future agreements between California and other nations," added Commissioner Poizner. "In a flat world, business is more migratory than ever so governments must work together regardless of boundaries." Source
www.insurane.ca.gov U.S. LABOR DEPARTMENT'S OSHA EMPHASIZES SCAFFOLD SAFETY AFTER CITING CONTRACTOR FOR HAZARDS AT NYACK, N.Y., JOBSITE TARRYTOWN, N.Y. -- The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) has cited a Mt. Vernon, NY Painting Contractor for alleged willful and serious violations of scaffolding safety standards at a Nyack, N.Y., jobsite. The company faces $24,800 in proposed fines. OSHA's inspection of the worksite found that the painting contractor’s employees were exposed on two occasions to fall hazards of 13 feet while working without fall protection on a two-tiered tubular welded scaffold that was not fully planked. The lack of planking and fall protection resulted in two willful citations, carrying $14,000 in fines. The inspection also found that the scaffold was unstable, missing required cross-bracing, located within 14 inches of live electrical wires, and had not been erected under the supervision of a competent person. Other hazards included lack of head and foot protection, an uncovered hatchway, a ladder of inadequate height, and failure to train employees to recognize hazards associated with scaffolding work and ladders. Twelve serious citations with $10,800 in fines were issued for these conditions. "While it's
fortunate that no accident occurred here, the potential for death or
serious injury was real and present," said Diana Cortez,
director of OSHA's Tarrytown Area Office, which covers Rockland,
Westchester and Bronx Counties. "With construction season in
full swing, I'm calling upon all area employers, large and small, who
use scaffolding to review their equipment, procedures and training to
minimize hazards and maximize employee safety." OSHA defines a willful violation as one committed with an intentional disregard of, or plain indifference to, the requirements of the Occupational Safety and Health Act and regulations. A serious citation is issued when death or serious physical harm is likely to result from a hazard about which the employer knew or should have known. The company has 15 business days from receipt of the citations to request and participate in an informal conference with OSHA's area director or to contest the citations before the independent Occupational Safety and Health Review Commission. The inspection was conducted by OSHA's Tarrytown Area Office, telephone (914) 524-7510. Source:
www.osha.gov
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