Windpool Subsidy In Limbo

[Insurance Sucks]

Wind-pool subsidy in limbo as session ends
By MICHAEL NEWSOM - [e-mail]
A legislative effort to prop up the insurance wind pool with an additional $20 million of taxpayer money remains in limbo as state budget talks broke down last week and most lawmakers headed home.
Although there’s uncertainty about the extra cash and myriad state spending bills, other solutions to high insurance costs here are being discussed. Officials are looking for sources of funding for those ideas, too.
The proposed appropriation for the Mississippi Insurance Department for next fiscal year is $40 million, including the extra $20 million for reinsurance programs aimed at offsetting premium increases in the wind pool, which is the insurance of last resort for homeowners who can’t get private-market wind coverage. A few years ago the Legislature pledged $80 million over several years, including $20 million for fiscal 2010. But this year the Gulf Coast Business Council asked for an additional $60 million over the next few years to lower insurance premiums. High business and residential insurance premiums are hindering Katrina recovery.
The GCBC touted a study from the John C. Stennis Institute of Government at Mississippi State University showing the wind pool cash would more than pay for itself if 90 percent of the money goes toward rate reductions for the 42,000 Mississippians in the program. The study shows rate reductions could generate 715 local jobs,$26.9 million in new state tax revenue and $72 million in consumer spending.
Brian Sanderson of the GCBC said his group has been talking to the leadership in both chambers and they still support the measure. He said Rep. Diane Peranich, D-Pass Christian, and Sen. Billy Hewes III, R-Gulfport, have also been making the case at the Capitol.
“The issue is not definitely resolved, but we know our Coast delegation in the Legislature continues to make the case for its need and all indications are positive from the leadership in both chambers,” Sanderson said.

[Windpool Limbo Cont]

Earlier this year the measure passed the House unanimously with no debate in a voice vote, but there were questions about the large appropriations bill, as well as most other appropriations bills, when it came up in the Senate. It, as well as most other money bills, was sent to conference. Lawmakers wanted to know more about how $2.8 billion in federal stimulus money might affect the state’s $5 billion budget, which has been tight because of falling tax collections over the last several months.
After recessing for several weeks to get details on the stimulus, lawmakers returned to Jackson, but were still at odds. A bill to extend the session narrowly failed, and the allowed time for the session passed last week. Now lawmakers will likely iron out differences in a special session, which only Gov. Haley Barbour may call. The governor also sets the agenda for the special session.
In his budget recommendation, Barbour doesn’t include the extra wind-pool money. But he said recently if money is moved from an existing disaster-recovery trust fund into the wind pool, under a plan Coast lawmakers, Mississippi Insurance Commissioner Mike Chaney and State Treasurer Tate Reeves are supporting, he wouldn’t veto it, even though there is about as much in the fund as the state might be required to put in as matching funds in the future.
There are also some other insurance solutions being explored now.
Barbour has said he doesn’t believe the state can keep pumping money into the wind pool, so he and other governors attending the National Governors Association meeting in Biloxi in July will discuss a wind pool that would include other states in an effort to spread the risk across a greater area. Chaney will be involved in those talks.
“It’s not just another conference to have a conference. We are actually looking for some solutions,” Chaney said.
But Chaney said he also wants to give mitigation discounts of 35 to 50 percent for those who make their homes more resistant to storm damage through stronger home-construction methods.
The state insurance department has received a $1 million grant to study a mitigation program, but so far hasn’t found a funding source for the actual grants homeowners would get.

[Insurance Sucks]

JUST WHAT WE NEED! As if we don't pay enough already. INSURANCE in MISSISSIPPI SUCKS!!!!
I pay 300% more for commercial insurance and 150% more for homeowners insurance than I did before the storm. How much do they expect out of us? If it goes up anymore I am closing up shop and moving. OUTTA HERE!

[Bad Neighbor]

Not there for you...should be their new tag line.

State Farm won’t write on Coast
By ANITA LEE - [e-mail]

State Farm will begin writing new homeowner policies June 15 in Mississippi, but not in the three Coast counties.

Company spokesman David Majors said State Farm is not opening the market for agents to write as much business as they want.

“It will be limited amounts,” he said.“If they’re down 10 policies, they can write 10 policies.

“They’re going to be able to write policies up to a certain number, based on their book of policies at the first of the year. It’s going to be different for every agent.”

The company still has policies in the three Coast counties, but only those that existed before State Farm halted new business, citing a fractious legal and political environment after Katrina.

The company also will increase rates an average of 3.9 percent statewide. Majors did not know where the highest and lowest increases would be. On the Coast, no rate increase is planned.

The rate increase goes into effect Aug. 1 for new business and Oct. 1 for renewals.

Renters will see an average rate decrease of 3.1 percent, Majors said, while condominium owners will see an average decrease of 5.1 percent.

Majors said State Farm also is increasing its discounts to 7 percent for policyholders who are claim-free for up to two years and 13 percent for those with three to five years claim-free.

Policyholders who place their automobile and homeowners insurance with State Farm will receive a 20 percent discount, which is up from 15 percent, he said.

Homeowner policies are subject to a minimum hurricane deductible of 2 percent, with a 1 percent deductible that must be a minimum of $1,000 for all other perils.

[sweetthing]

My opinion is that if State Farm doesn't want to insure the coastal counties of Mississippi, they should be banned from Mississippi period! We had car (3) insurance and house insurance with them before the storm. They didn't do right by us after the storm; who wants a company insuring us like them anyway. There are plenty of other insurance companies wanting to insure the coastal counties. Give them your business!

[question]

Who are the other companies please?

sweetthing wrote:

My opinion is that if State Farm doesn't want to insure the coastal counties of Mississippi, they should be banned from Mississippi period! We had car (3) insurance and house insurance with them before the storm. They didn't do right by us after the storm; who wants a company insuring us like them anyway. There are plenty of other insurance companies wanting to insure the coastal counties. Give them your business!

[sweetthing]

Please accept my apology. I guess I got carried away. You are correct, the Govt windfall is the only insurance.