| Author |
Message |
Tom Joyce (Tomj)
| | Posted on Monday, May 08, 2000 - 1:21 pm: | |
As a follow up to the articles by Dave Hood one should note that Florida is the first state to approve electronic transfer of funds on insurance claim settlements. |
Tom Joyce (Tomj)
| | Posted on Tuesday, May 02, 2000 - 5:44 pm: | |
In the event a catastrophe his Florida equal to or exceeding the circus know as "Andrew", many of us will be called out by several firms. How is the best way to protect out interests. Many fail to reconize the amount of money we outlay in the first few weeks of a catastrophe. Bad enough not to get paid for the work, but the expenses also. Not a new topic but also consider the repeated predictions for another earthquake along the Mississippi Valley. An event of that magnitude would drain the resources of many insurers. |
Jim Flynt (Jim)
| | Posted on Tuesday, May 02, 2000 - 5:44 pm: | |
Dave, the thought had occurred to me that if an entity or carrier cannot pay the insured due to financial instability or insolvency, that the adjuster might also have a problem getting paid as well. Something to think about and to be aware of at least. That is why I suggested that this is a "must read" article. |
R.D. Hood (Dave)
| | Posted on Tuesday, May 02, 2000 - 4:04 pm: | |
Jim,
Thanks for the information on the "critical mass situation" that was related on the link to A.M.Best.
Read it with great interest, will have to really consider all of the potential problems, WHEN IT HAPPENS, and it will.
There will not only be carriers, IA companies and adjusters that will suffer, but as with "HUGO" (1989) in the Islands, many insured did not get paid at all.
Real gourmet food for thought. |
Jim Flynt (Jim)
| | Posted on Tuesday, May 02, 2000 - 12:51 pm: | |
"TAMING the BIG CATS"
This is the title of the most recent article posted on "Best's Review Online."
This article deals with the insurance industry reforms after Hurricane Andrew as well as the reforms instituted by the Insurance Commissioner and State of Florida. For those who think that the worst is behind us in Florida, this article is well worth reading. It points out the pitfalls which lie ahead and the need for further change in order to stabilize the Florida insurance market for carriers and the public alike.
This article points out the inadequate reserves in place to cover another Hurricane Andrew type storm should such a storm hit Miami, Orlando, Jacksonville or Tampa. It specifically addresses problems at the FWUA, JUA, and FHCF (Florida Hurricane Catastrophe Fund). It is must reading for any cat adjuster who plans to work Florida windstorms with any awareness of the potential shortcomings which may be experienced.
I commend this article for the reading and review of all serious sophisticated adjusters out there.
It can be found at http://www.ffbic.com/actuary/papers/Best0399/cats.html |
Jim Flynt (Jim)
| | Posted on Tuesday, May 02, 2000 - 12:42 pm: | |
INSURANCE REFORM MAY BE THE ANSWER TO PAIN
"It's all in your head," is not the kind of diagnosis any of us likes to hear from the doctor, particularly when we suspect way down deep that it might be true. Pain is a palpable thing, even if its origin involves more imagination than infection.
So there may not be a lot of support for insurance reform that installs a no-fault system with no payments for pain and suffering. But a system like that may just be the best medicine. So far, 13 U.S. states and some Canadian provinces have no-fault.
One of the latter, Saskatchewan, provided a test case for researchers at the University of Alberta. They studied 7,462 auto accident whiplash claims covering a period of six months before and 12 months after the province adopted no-fault.
According to an article in the "New England Journal of Medicine," researchers found a dramatic reduction in the incidence of whiplash after the change.
What's more, people who complained of whiplash (neck pain) recovered much more quickly on average.
Physicians offer various explanations. One is simply that under a conventional liability system, people have an incentive to make up or exaggerate whiplash symptoms. Under a no-fault plan that pays only for actual, out-of-pocket expenses, there's no point.
It may also be that with no possibility of recovering money for pain alone, people suffer in silence.
Most intriguing is the evidence that people with a legitimate painful injury still recover faster under no-fault. The researchers speculate that even real pain has a psychological component. Accident victims who will be required to prove their injury by testifying may unconsciously prolong their own suffering until after their day in court.
When no proof is going to be required, people have no reason not to just go ahead and get better, or so the theory goes. In part, this may mean people feel better just by "eliminating some of the stress of not knowing if the claim is settled," according to an insurance industry spokesman.
Whatever is actually going on, if people are actually hurting less, that's one more good reason to consider switching to a no-fault insurance system. Another is saving money. the industry believes the 4.5 percent drop in insurance premiums last year at least partly reflects the adoption of no-fault in several states.
(Editorial Reprinted from the 5/02/2000 issue of the Greensboro )N.C.) Daily News |
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