Declarations

Fees Increase Debate

“The department’s creation of this information is funded by taxpayer dollars, and this information was not intended to help private companies increase their profit margins.”

—Missouri Revenue Director Omar Davis comments on a suit by three businesses filed on May 9 to halt a state fee increase for obtaining driver’s license and vehicle records. The businesses are claiming that the higher fee violates Missouri’s open-records law as well the state and federal constitutions. The lawsuit, filed by companies that regularly buy the records to track vehicle histories for insurance companies and to track traffic violations, seeks a temporary restraining order or an injunction against the department’s new $7 fee for each driver’s license and motor vehicle record. Filed in Cole County, the suit contends the higher fee violates Missouri’s Sunshine Law, which sets limits on what government entities can charge for public records. It also claims the new fee violates the state and federal constitutions. The fee increase began May 1, 2008. Since 1998, the price for driver’s license and vehicle title records had been $1.25, and even less for bulk requests. The department charges 43 cenTs per 100 records for the first 50,000 requested, and after that, the price drops to 3 cents per 100 records.

AIG Lawsuit

“We believe that the suit is without merit.”

—American International Group (AIG) spokesman Michael Arcaro comments on a lawsuit filed May 7 in New York State Supreme Court in Manhattan that alleges fraud and seeks at least $300 million in damages from AIG. The Starr Foundation, controlled by former AIG Chief Executive Maurice “Hank” Greenberg, has sued the insurer, claiming it misrepresented its exposure to credit default swaps. It was filed against AIG, its Chief Executive Martin Sullivan and Chief Financial Officer Steven Bensinger. The foundation seeks to recover damages caused by defendants’ material misrepresentations and omissions concerning multibillion dollar losses in AIG’s portfolio of credit default swaps, the complaint reads.The lawsuit is the latest in a string of legal actions between the insurer and either Greenberg or entities that were once affiliated with AIG but which Greenberg has controlled since parting ways with AIG three years ago.

Wind Versus Water

“Property owners shouldn’t have to go to court to fight over whether it was wind or water that destroyed their home or business.”

—Sen. Roger Wicker, R-Miss. comments on the U.S. Senate’s decision in early May that officially rejected a bid by Gulf state senators to add wind coverage to a financially strapped federal program that provides flood insurance. Lawmakers from Louisiana and Mississippi cited problems that occurred after Hurricane Katrina and other big 2005 storms when private insurers covering wind damage claimed that destruction to property resulted from flooding, thus shifting the burden of payments to taxpayers. But the Senate voted 73-19 against the amendment by Sen. Roger Wicker, R-Miss., that would have provided optional multiple peril insurance as part of the 40-year old National Flood Insurance Program.