It Figures

200,000
Missouri Gov. Matt Blunt issued executive orders declaring a state of emergency and activating the Missouri National Guard in response to the winter ice storm in mid-January. Blunt also put the Disaster Medical Assistance Team on standby in anticipation of mounting emergencies. The storm also caused havoc in Texas and Oklahoma and has moved into Illinois, Michigan and Wisconsin. Insurers say it is too early to list a tally of claims. In Missouri the storm system, which hit mainly in the southwest corner of the state, has so far left nearly 200,000 households without power on the onset of the coldest weekend so far this winter. Many communities dealt with widespread closings and cancellations, triggered by ice and snow. Power outages were dispersed throughout the state, with Springfield and the St. Louis area hit hardest.

Source: AP, Missouri Governor’s Office

101
A two-year undercover sting operation by the Los Angeles County District Attorney’s office has resulted in 101 indictments, of which 88 have been arrested to date. Following a tip from a confidential informant, an investigation was launched in September 2004 involving suspected attorneys and legal office employees who were allegedly selling accident insurance claim cases for referral fees and kickbacks from chiropractic clinics. The informant allowed an undercover investigator to be planted in the informant’s chiropractic clinic. The investigator served as the office administrator. As part of the so-called “capping” scheme, em-ployees from 12 San Gabriel Valley law offices allegedly referred clients to the chiropractor clinic and then filed fraudulent documentation and padded the bills sent to insurance companies. Prosecutors documented more than $500,000 in losses to insurance companies from just one chiropractic clinic. Of the 101 people indicted, 13 are office administrators who allegedly worked as “cappers,” two are attorneys and 86 are insurance claimants.

Source: CDI

$445 Billion
Nearly half a billion dollars will be given to U.S. cities and regions to help reduce the risk of terror attacks on ports, transit systems and chemical plants, Homeland Security Secretary Michael Chertoff announced this week. Recipients will have to submit detailed plans on how they will use the funds to protect critical sites, Chertoff said. “We’re simply not going to give the money out without any accountability,” he said, adding that this was being done to make sure the money “goes for the kinds of things the public expects.” He touched on previous grant programs that were so broad they allowed cities to use allocations to pay for just about anything, including leather jackets. Nearly half the grant money, $201 million, would be used to secure ports and rail systems, including Amtrak.

Source: AP

7 Percent
Nearly one out of every five customers considers switching insurance companies after experiencing the collision claim process, according to the J.D. Power and Associates 2006 Collision Repair Satisfaction Study. Filing an insurance claim is a critical moment of truth that shapes a customer’s overall perception of their insurer according to Jeremy Bowler, senior director of the insurance practice. Misconceptions about what is covered by the auto policy, or what to expect during the claim and repair processes can lead to significantly lower customer satisfaction, which in turn increases the likelihood that the customer may consider switching carriers in the future. The study finds that 7 percent of customers chose not to file a claim with their insurer after their most recent collision.

Source: J.D. Power

$55,000
Lois Klofanda was 85 years old when she sunk almost half her life savings into a deferred annuity from Allianz Life Insurance Co. of North America, not realizing she wouldn’t be able to get at the money again for a dozen years. Now 88, Klofanda still doesn’t have her $55,000 back. She sat quietly next to her daughter at the Capitol as Minnosta Attorney General Lori Swanson accused Allianz Life of victimizing seniors. Swanson sued the Golden Valley-based insurer in Hennepin County District Court for allegedly breaking state consumer fraud and insurance laws. She said Minnesotans over age 70 have bought $259 million worth of deferred annuities from Allianz Life, locking up their money until they might be dead or forfeiting big chunks of their savings in penalties. Allianz Life, a subsidiary of German insurer Allianz SE, strongly disputed Swanson’s allegations. The company said in a prepared statement that it’s confident it has followed state laws. Source: AP