Tropical Storm Nanmadol Poised for China Landfall after Battering Taiwan and Philippines

BOSTON, Aug. 30, 2011 – According to catastrophe modeling firm AIR Worldwide, Tropical Storm Nanmadol is moving slowly at about 3.2 km/h across the Taiwan Strait toward a landfall in China’s Fujian province sometime in the next 12 hours. Nanmadol’s current sustained winds are at about 85 km/h, having weakened to tropical storm strength after it made a landfall on southernmost Taiwan early Monday morning local time as a Category 1 typhoon. Nanmadol currently is heading toward Xiamen, Fujian’s second-largest city (population 1.5 million, 2010). As of the Japan Meteorological…

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Mercury Insurance shows their approval for newly proposed auto discount in California

Mercury General Corp. has just announced its support of an auto insurance initiative comparable to last year’s Proposition 17, which was turned down by voters in June 2010. Supporters of this initiative are thrilled with Mercury’s backing, and are hoping that this second effort will make the difference. Insurance trade group, American Agents Alliance’s executive director, Mike D’Arelli, submitted the proposed initiative’s summary to the California attorney general’s office; taking the first step toward a vote on the initiative. Mercury had previously been a supporter of Proposition 17, having spent…

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Michigan insurance scam may have left many paying for phony coverage

Michigan insurance regulators are reporting that hundreds of drivers in Detroit may be victims of a scam. Nearly 1,000 fraudulent insurance policies were issued from a company based in Texas. State regulators have ordered Michigan-based Don Diamond and Ethos insurance to stop fraudulent deals as they continue investigating the situation. The policies in question seem to have originated from either Diamond or Ethos. Diamond argues that the fake policies come from malicious subcontractors in Detroit. While state regulators suspect that as many as 1,000 people have fallen prey to the…

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Reports on millions paid for April tornado mayhem

Another insurance company has released their report of estimated losses from the April tornado outbreak. State Auto Financial Corp. is estimating between 75 and 85 million in catastrophe losses as a result of more than 15 thousand claims. This is around 30 million dollars higher than their average five year catastrophe losses of 50 million. Twenty of State Auto’s operating states were affected by five different disasters last month. Claims for property damage and vehicle damage from tornados and storms that produced large hail and high winds. State Auto Financial…

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Has Oklahoma started a trend for states opposing health care reform?

If the federal government gave your state more than 50 million dollars, what do you think they would do with it? Would they give it back? It isn’t often that you would see a state turning down federal money, but that is exactly what is happening in Oklahoma. They are turning down 54 million dollars in federal grant money. The 54 million dollars in federal grant funding was going to be given to the state as a part of the new federal healthcare law. The Department of Health and Human…

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Government eyeballs health insurance industry rate increases

Rising health insurance rates have become a major issue in the U.S. For months, legislators from several states have been struggling with insurance companies in an effort to lower rates and stop steep rate hikes. Insurers argue that they must raise their rates – some going so far as to raise their rates by 40% — in order to stay competitive in the market. The soaring cost of medical procedures and care is one of the major contributors to rate increases, according to insurers. The issue has gotten the attention…

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Cat bonds still steady even with major disasters

After the devastation in Japan two months ago, investors were keeping a watchful eye on the stock and bond market. It appears though, that the catastrophe bond (CAT bonds) division has been holding strong. Analysts and brokers have commented that no drastic price decreases or large spreads have occurred to cause them to be worried. The recent earthquake and tsunami in Japan were what investors are calling the biggest adversity to happen since the financial woes of the Lehman Brothers filing for bankruptcy. The catastrophe bond sector is still strong…

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