A new study produced by consumer and public-interest groups claims insurance companies create periodic crises to drive up profits.
The Americans for Insurance Reform study says these crises, where coverage becomes unaffordable or unavailable, are known as "hard markets," sending premiums sky-high. Authors of the study further claim the insurance industry uses these supposedly manufactured crises to support their calls for "tort reform" - asking legislators for new laws making it more difficult to sue.
Sound familiar? North Carolina's General Assembly passed legislation this year restricting the ability of people who claim they have been injured to seek compensation through the courts.
The report, titled "Repeat Offenders: How the Insurance Industry Manufactures Crises and Harms America," also concludes the country has been in a soft market since 2006, with rates stable and dropping in every state. Now, according to the report, some in the insurance industry are using Hurricane Irene to justify jacking up rates, even though the storm wasn't as bad as predicted.
Nonsense, says the Insurance Information Institute. The industry organization said the consumer group and the report's authors "could not possibly come across as more oblivious to the risks associated with devastating natural disasters and global economic volatility." Insurance and re-insurance markets "remain competitive, capacity is available and coverage remains affordable," the insurance group's president, Robert Hartwig, said in response.
Steen collects endorsements
Republican State Rep. Fred Steen is collecting endorsements from his fellow lawmakers as he gathers momentum for a bid to challenge Democratic U.S. Rep. Larry Kissell in the 8th District.
The race is attracting a mess of Republicans interested in unseating Kissell, often rated as one of the most vulnerable Democrats in Congress.
Steen touts endorsements from 20 local officials in the district. Among them are state Reps. Linda Johnson, Justin Burr, Harry Warren, Craig Horn, Jerry Dockham, G. L. Pridgen, Julia Howard, Grey Mills and Jamie Boles, as well as state Sens. Andrew Brock, Fletcher Hartsell and Stan Bingham.
Sabato: Gov's race favors GOP
Larry Sabato, the political uber-prognosticator at the University of Virginia, suggests Republicans have the edge in the 2012 North Carolina governor's race. In his latest Crystal Ball ratings, Sabato moved the race from "toss up" to "leans Republican."
His analysis: "We now slightly favor likely Republican nominee Pat McCrory, an ex-mayor of Charlotte, to defeat incumbent Democratic Gov. Bev Perdue. Why? The big picture factors all favor McCrory. Perdue has had a rocky term in office and is unpopular; polling has consistently shown McCrory leading Perdue in trial heats; McCrory came within a few points of defeating Perdue in 2008, a big Democratic year; unemployment in North Carolina is 10.4 percent, according to the most recent figures available; and Democrats have controlled the governor's office in North Carolina for the past two decades, which is a good Republican argument for change."
The list of Perdue's troubles could continue for a few more lines - notably missing is the indictment of her campaign aides and donors.
Staff writers Craig Jarvis and John Frank
