1 / President’s Message / May Day Trivia
2 / Calendar of Events / Education
3 / Courtesy / Employment / Membership
4 / Safety / Did You Know?
5 - 6 / Legislation
7 / Collect / IWOF Contacts / Mission Statement


IWOF CALENDAR OF EVENTS

Date / Event / Location
May 3, 2012 / Board Meeting / DiCicco’s – Blackstone & Barstow
May 23, 2012 / Annual May Luncheon / Pardini’s – West Shaw, Fresno, CA
May 31, 2012 / Board Meeting / DiCicco’s – Blackstone & Barstow
June 6th-10th, 2012 / National Conference / Dallas, TX
June 21, 2012 / Installation Dinner / Engelmann Cellars – Rolinda Ave., Fresno, CA
DO YOU HAVE AN EVENT THAT NEEDS TO BE LISTED? PLEASE E-MAIL THE INFORMATION TO THE BULLETIN CHAIR
REMEMBER TO CHECK OUT OUR WEBSITE FOR SISTER ASSOCIATION’S EVENTS

As Submitted by Victoria Anderson, Safety Chair

Safety Quick Tip - "What to Teach Kids & Teens to Be Safer”

Safety Quick Tip
Safety Tip: Three simple tips can help kids and teens to be safe.
Reason: Simplicity is the key in teaching safety.
Example: The vast majority of safety and self-defense classes teach what not to do and some of what TO do. No one needs to know what doesn’t' work. It is a waste of brain space and confusing. You can't do what you need to in an emergency if you're confused or focus on what not to do.
Call to Action: Teach these three simple tips to your kids and teens:
1. Always trust your gut feelings. They are always right whether they make sense at the time or not.
2. Always be looking around, noticing you surroundings. This alone will repel most attackers. Prevention is 90% awareness.
3. Always have two plans: what you will do if things go your way and how to escape if they don't.
Because: Kids and teens are responsible for their safety. Teach them what TO do and delete the words "not" and "don't" from your vocabulary. When you speak to someone with negative words, it immediately puts you in opposition. Is that really what you want with your family?
Kelly's Opinion:
Verbal, mental, emotional and physical attacks affect us forever with situations years later triggering that same feeling or fear. Do your child or teen the favor of trusting them to choose wisely after giving them some positive guidelines that actually work!

By Kelly Rudolph –“Your Personal Safety Trainer”

As Submitted by Dona Shurtz, Legislative Chair

Court of Appeals Denies Expedited Appeal on Replacement Cost Regulations

California's Second District Court Appeals has summarily denied a Petition for Writ of Mandate filed by insurance industry organizations--and supported by IBA West--seeking to appeal a lower court's decision upholding homeowners' insurance replacement cost regulations. The Court of Appeal offered no reasons for refusing to accept the Writ, but state appellate courts typically reject more than 90 percent of all such requests for expedited appeal.

The petitioners in the case, the Personal Insurance Federation of California, and the Association of California Insurance Companies, are now evaluating whether to pursue the case through more conventional, and slower, appellate channels. At issue in the litigation is whether the California Department of Insurance had sufficient statutory authority to promulgate the regulations, which (among other things) require homeowners' insurers to use a standardized set of criteria dreamed up by CDI lawyers to calculate all "replacement cost" estimates, and impose numerous new disclosure obligations on broker-agents and others who provide replacement cost estimates.

"We are disappointed, but not overly surprised, that the Court of Appeal declined to hear the case at this juncture," said IBA West GeneralCounsel Steve Young. "We remain very concerned that there has been insufficient judicial evaluation of the Department's tactics in this instance. While we appreciate what the Commissioner is trying to do, it remains our strong position that he needed to obtain Legislative authorization to make these rules."

Legislative Update - Senate Insurance Committee

The Senate Insurance Committee met and heard the following bills this past Wednesday:

SB 1216 (Lowenthal): This bill would conform California law to the National Association of Insurance Commissioner's Credit for Reinsurance Model Law. According to the Insurance Commissioner, SB 1216 ensures that California aligns with federal law, is current with NAIC reinsurance-related changes and that the Commissioner has the needed authority to carry out the new reinsurance regulatory activities.

The NAIC’s recently amended reinsurance Models reflect efforts by the states to modernize reinsurance regulation, including responding to Dodd-Frank changes. A key provision of the NAIC changes relate to the certification of a non-admitted reinsurer. Under the revised NAIC Model, each state has the authority to certify a reinsurer or to recognize the certification issued by another NAIC-accredited state. As part of the certification process, a rating system provides for certified non-U.S.-based reinsurers to reduce collateral under specified conditions. The certification process is pivotal to permit a California domiciled ceding insurer to qualify for a credit on its financial statement under these new conditions. This bill amends current insurance law and adds new statutory language to reflect the NAIC Model changes with some variation, including but not limited to, an expanded review time for some filings due to California’s larger market and a cost recovery provision.

The insurance industry initially had some concerns with this bill, but was successful working with the Department of Insurance to draft a bill everyone could support.
SB 1216 passed the committee with a vote of 8-0.

SB 1438 (Alquist): This bill would require the Insurance Commissioner to convene a task force to study the components necessary to design a statewide long-term care insurance program and submit a report the Commissioner, the Governor, and the Legislature by July 1, 2013. According to the author, by forming a task force to study how to design a long-term care insurance program for the state, this bill would take the first step to getting the estimated 80% or more of the California population that currently does not own a long-term care insurance policy, covered by some form of long-term care insurance.
SB 1438 passed the committee with a vote of 5-3.
SB 1448 (Calderon): This bill, sponsored by the Department of Insurance, conforms California law to the recently revised Insurance Company System Regulatory Act drafted by National Association of Insurance Commissioners (NAIC).
SB 1448 passed the committee with a vote of 8-0.
SB 1449 (Calderon): This bill, co-sponsored by the Association of California Life and Health Insurance Companies (ACLHIC) and American Council of Life Insurers, would broaden the definition of life insurance to include accelerated death benefits and waivers of surrender charges triggered by specified medical conditions and waivers of premium triggered by disability. SB 1449 would also add waivers of surrender charges triggered by specified medical conditions to the definition of annuity. Lastly, the bill would distinguish these insurance and annuity products from disability, health, and long-term care products that share similar triggering mechanisms. According to the author, SB 1449 would streamline the approval of life insurance and annuity products triggered by serious medical circumstances, disability, and cognitive impairment.
SB 1449 passed the committee with a vote of 8-0.
SB 1450 (Calderon): This bill would, until January 1, 2018, eliminate requirements that limit the percentage of coverage a mortgage guaranty insurer may provide to 30% for the class of insurance that insures against financial loss by reason of nonpayment of principal, interest, and other sums under any evidence of indebtedness secured by a mortgage, deed of trust, or other instrument constituting a first lien or charge on a residential building or a condominium unit or buildings designed for occupancy by not more than 4 families.

SB 1450 passed the committee with a vote of 8-0.

Volume 2, Issue 11, May 2012

Insurance Women of Fresno Newsletter is designed to provide information of a general nature and is not intended as a substitute for professional consultation and advice in a particular matter and may include articles from other publications. It is not meant to express any legal opinion or advice.

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