Citizen’s Customers May Face Rate Hike Due To Spike In Water Claims
August 26, 2015
A “disturbing” rise in water-damage claims in South Florida is driving Citizens Property Insurance Corp. to seek an average 3.2 percent increase in rates for many homeowners, the president of the state-backed insurer said Tuesday.
Without the surge in reported residential water damage over the past two years, which is causing the agency to alter its approach to such claims, Citizens would be asking for an average statewide rate decrease, Citizens President and CEO Barry Gilway said during a rate hearing before the Office of Insurance Regulation.
“You can’t move away from the fundamental issue, when you take a look at Miami-Dade, and you take a look at the rest of the state, there really is no major differences in ages of home or any other characteristics,” Gilway told Insurance Commissioner Kevin McCarty. “So it leads you to the obvious conclusion, and the conclusion basically is there is more fraud associated with these types of claims.”
As it is, Citizens customers in Miami-Dade, Broward, Palm Beach and Monroe counties, which comprise a large portion of Citizens’ portfolio, are more likely to see rates increases than homeowners in other parts of the state under the rate proposals. And the reason is the water claims, Gilway said.
“If the Miami-Dade average (water damage) claim were the same as the rest of the state, 99 percent of all Miami-Dade policyholders would be getting an 8 to 9 percent decrease, not an 8 to 9 percent increase,” he said.
McCarty gave no hint if his office would approve the proposed rates.
The new rates, if approved by the state regulators by the second week of September, would go into effect Feb. 1.
The rates vary by county and depend on a property’s location, the home’s style, and the type of policy.
The overall statewide average increase would be 3.2 percent, with homeowners’ multi-peril personal-line accounts going up an average of 1.3 percent and wind-only coastal accounts going up 9 percent. Multi-peril coverage for mobile-home owners would go down 5.3 percent on average. There is no proposed change to sinkhole rates.
The increase in claims, primarily in Miami-Dade County, is driven by attorneys who specialize in water damage, which adds to attorney fees and adjuster costs, Gilway said.
“The issue for us is, we don’t even have a chance to work with a policyholder to come up with a fair settlement,” Gilway said after the hearing. “You saw the numbers, 30 percent of all the water damage claims come in with representation. We have not even talked to the insured. And 90 percent of all the claims coming in with representation come from Miami-Dade.”
In 2012, about one in 12 homeowners in Miami-Dade County with a Citizens policy made a water-damage claim, with the average cost just under $9,000. In the past 12 months, Gilway said, one in eight Miami-Dade policyholders with Citizens filed such a claim, with damage costs running on average approaching $15,000.
“We’re averaging 1,000 water-damage claims a month,” said Gilway, who described the increase as “disturbing.”
John Rollins, Citizens chief risk officer, said a majority of the claims come from reports of pipe failure. Citizens doesn’t cover flood and storm surge.
One change being made is that only Citizens adjusters, who are being trained as to what to look for in water claims, will respond to water claims in South Florida, Gilway said.
Gilway said he doesn’t anticipate the need to get the Legislature to enact new laws to address the increase in water-damage claims. But he said he’s working with Rep. Frank Artiles, a Republican from Miami who has been a critic of the agency, on rules for making water-damage claims with the state-backed agency.
The proposal would establish “mandatory” appraisal rules — similar to sinkhole claims — in which both sides on a water-damage claim would get to select an appraiser and if the two sides don’t agree, the issue would go before a mediator. The move would keep attorneys out of the issue, Gilway said.
The rate proposals come as Citizens has dropped from 1.5 million policies in 2012 to 589,456 policies as of July 31. Gilway said he expects the number of policies to be just above 500,000 by the end of the year.
by Jim Turner, The News Service of Florida
NHS To Hold Meet The Chiefs (With Bonus Cheerleader, Dance, Band Photos)
August 26, 2015
Northview High School will hold “Meet The Chiefs” Thursday at 7 p.m. Fans will have a chance to meet the football players and cheerleaders ahead of the regular season.
A meeting will take place at 6:30 p.m. for parents of football players.
For cheerleader, dance, band and NJROTC photos, click here.
Pictured: The Northview band, cheerleaders, dance team and NJROTC from last Friday night. NorthEscambia.com photos, click to enlarge.
State, Seminole Tribe Headed Into Mediation
August 26, 2015
The state and the Seminole Tribe are headed into mediation — shepherded by a lawyer whose past clients include Mick Jagger and Leona Helmsley — to resolve a possible standoff over the future of blackjack and other banked card games at most of the tribe’s Florida casinos.
The tribe formally requested mediation last month after negotiations over the card games — part of a $1 billion, five-year deal — stalled this spring.
While those talks appear to be back on track, the state has agreed to the Seminoles’ request, and both sides have settled on a mediator, according to documents provided by the Department of Business and Professional Regulation, which oversees gambling in the state.
“We have not formally responded to the merits of the request for mediation; however, we have been in contact with them regarding the selection of a mediator and working toward mediation dates and location,” department spokeswoman Chelsea Eagle said in an email Tuesday.
The Seminoles and officials with Gov. Rick Scott’s administration have “mutually agreed” on New York lawyer Loretta Gastwirth, Department of Business and Professional Regulation chief attorney Jason Maine wrote in an Aug. 13 email to Marvin Harris, the American Arbitration Association’s manager for alternative dispute resolution.
The lawyer both sides initially agreed to, Thomas Brewer, “declined to serve” due to scheduling conflicts, according to an email sent earlier the same day from Harris to Maine.
Gastwirth is a partner with the Long Island-based Meltzer, Lippe, Goldstein and Breitstone law firm. According to her bio on the firm’s website, the one-time entertainment industry lawyer’s previous clients include Mick Jagger, Luther Vandross and Leona Helmsley. Gastwirth has served as an arbitrator on the Commercial Arbitration Panel of the American Arbitration Association for a decade, according to the website.
Since 2010, the Seminoles have had exclusive rights to offer banked card games, including blackjack, at five of the tribe’s seven casinos. In exchange, the tribe promised to pay the state a minimum of $1 billion over five years, an amount which it has exceeded. But the agreement regarding the cards, part of a 20-year deal called a “compact,” expired on July 31. Under the terms of the compact, however, the Seminoles have 90 days after the agreement expires to continue operating the banked card games.
Both sides hope to finalize a new pact before that time period runs out, but the Seminoles insist they won’t have to stop the games even in the absence of an agreement with the state.
Meanwhile, negotiations between top legislators, Gov. Rick Scott’s general counsel and the Seminoles appear to be moving forward. Senate Regulated Industries Chairman Rob Bradley, R-Fleming Island, said last week that he, his House counterpart and Scott’s top lawyer, Timothy Cerio, met with representatives of the tribe as late as last week.
The Legislature has to authorize any agreement between the governor and the tribe, although Scott can sign a compact before the 90-day deadline runs out and lawmakers could ratify it later, according to Senate Majority Leader Bill Galvano, R-Bradenton. Galvano, then a House member, was the lead negotiator for the Legislature in 2010 and helped craft the current compact.
The U.S. Department of the Interior, which oversees gambling on tribal lands, has to give final approval to any agreement reached between the state and the Seminoles.
by Dara Kam, The News Service of Florida
Wahoos Beat The Braves
August 26, 2015
Thanks to Tim Adleman and the Pensacola defense, the Blue Wahoos pulled back within half a game of the Southern League South Division lead behind the Mississippi Braves.
Needing just one run, Adleman threw six scoreless innings and Pensacola held on for a, 1-0, victory over front-runner Mississippi in front of 4,222 Tuesday night at Pensacola Bayfront Stadium.
It was Adleman’s second, 1-0, victory over Mississippi with the last coming on June 27. In the second half of the season, Adleman is 7-2 with a 1.90 ERA after playing in the Southern League All-Star game. He improved to 9-8 with a Southern League-leading 2.12 ERA.
“I told you,” Pensacola manager Pat Kelly said. “We got him one and that was plenty. He wasn’t sharp today but he just battled and battled.”
Meanwhile, Pensacola closer Zack Weiss entered the game with one out in the eighth inning and earned a franchise record 23 saves, surpassing the 22 Shane Dyer saved last season.
“You give him the ball and you know the game is over,” Kelly said. “That’s a great feeling as a manager.”
Pensacola, playing in its first playoff race in franchise history, is now 32-26 and in sole possession of second place after dropping the first two games of the five-game series to Mississippi. The Braves are 32-25 in the second half. The Mobile BayBears lost to the Biloxi Shuckers and fell to 30-27 and third place.
The Blue Wahoos went ahead, 1-0, when first baseman Ray Chang scored with the bases loaded on a walk by shortstop Alex Blandino. The run stood up with great defense from the outfielders and crucial double plays. The squad has a league leading 153 double plays this season.
In the fifth inning, Mississippi pinch hitter Emerson Landoni hit a broken bat blooper that Pensacola center fielder Phillip Ervin charged and then threw the baseball on a rope to catcher Kyle Skipworth at home plate to nail the Braves’ Sean Godfrey trying to score.
In the eighth inning, Pensacola right fielder Juan Duran slid to catch a soft liner and it popped out of his glove. But he jumped up and threw Braves center fielder Matt Lipka out trying to reach second.
In the same inning, Weiss struck out Mississippi right fielder KD Kang and Skipworth caught second baseman Levi Hyams going to second. It was a boom, boom double play.
Both Adleman and Kevin Shackleford started double plays from the mound in the second and seventh innings, respectivelly.
For Kelly it was a routine day at the ball park.
“The key to our club is playing great defense,” Kelly said. “Our pitchers fielded their positions today. Whenever you can get two outs on one pitch, that’s huge.”
Weiss said he was happy to set the Pensacola record but even happier to pitch well in a game with playoff ramifications.
“It’s a pretty special experience,” the 23-year-old said. “When you’re competing for a playoff spot, every pitch is a big pitch in a series like this. The record is cool but tonight was pretty much a must win.”
Man Convicted Of Beating Century Resident Over Unpaid Drug Debt
August 25, 2015
A local man has been sentenced to jail time for beating another man with a pipe in a Century street over a drug debt.
Johnnie Leethomas Carter, 34, was sentenced to 150 days in the county jail, his driver’s license was revoked for one year and he was ordered to pay $920 in fines and costs by Judge Ross Goodman for felony possession of crack cocaine and felony aggravated battery causing bodily harm.
The 61-year old victim told Escambia County deputies that he was walking in the area of Jefferson Avenue and Mincy Court in Century when he was attacked by Carter. The victim said Carter drove up, got out of his car, and struck him several times in the face with his fist before hitting him in the back of the head with a metal pipe.
The victim told deputies, according to an arrest report, that Carter beat him because he had not paid up for a previous drug deal. He said he could positively identify Carter from the neighborhood and previous drug deals.
The victim was transported by Escambia County EMS to Jay Hospital with a bloody nose, a profusely bleeding busted lip and a large knot and cut on the back of his head.
Deputies located Carter a short time later and placed him under arrest during a traffic stop at Jefferson Avenue and Pond Street. On Carter’s person, deputies reported finding a plastic bag containing what tested positive for crack cocaine.
Deputies also seized his 2007 Lincoln MKX and $523 in cash.
Century Approves $360K Loan, New Employee Insurance, Fence, Elevator
August 25, 2015
The Century Town Council approved a $360,000 loan, a new employee insurance company, a fence and an elevator during a special meeting Monday afternoon.
Drainage Project Loan
The council voted to allow Mayor Freddie McCall to execute a $360,000 loan with United Bank. They money will be used to pay a contractor working on a drainage project in the north part of town. Once the project is completed, Century will receive a grant reimbursement of the entire principal plus the interest. The loan will cost the town 1.964 percent interest plus a $350 fee. Escambia County Bank in Flomaton quoted a loan rate of 3 percent with no fee.
A Fence And An Elevator
The council approved recommendations of the Century Architectural Review Board to allow the First Baptist Church to construct a front porch, extending the brick steps toward the street and widening the steps for safety purposes. The church will also remove an existing handicap ramp and replace it with an “elevator” – a residential platform lift to the porch level for the handicap.
The council also approved a review board recommendation to allow Felix Fussner to install a four-foot wooden picket fence along the front of his property at 402 Front Street. The council also approve a variance to allow the four-foot height due to a three-foot limit currently allowed by ordinance.
The approvals of the e Century Architectural Review Board were necessary for both projects because they are located in the Alger-Sullivan Historical District.
A New Insurance Company
Also at Monday’s special meeting, the council voted to approved United Health Care as the town’s new employee insurance company. Employees will be able to chose from three plans offering deductibles of $500, $1,250 or $1,500 per year with zero coinsurance. The town will pay 99 percent of the monthly cost for employee-only plans and 78 percent of the cost for family coverage of the cheapest of the three plans (the $1,500 deductible plan). Employees will be responsible for the additional cost of the more expensive health care plans if they choose that level of coverage. The new plans go into effect October 1. Town employees are currently covered under plans by Aetna. The town’s overall health care insurance costs will increase by only a few percent.
Scott: 129 Hospitals To Be Audited Over Contracts; Two Escambia Hospitals Included
August 25, 2015
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Gov. Rick Scott’s administration is continuing to ratchet up pressure on the hospital industry, with Scott saying Monday that 129 hospitals face audits related to Medicaid managed-care contracts.
Those hospitals include Baptist Hospital in Escambia County, being audited because they responded after the August 1 deadline, and West Florida Hospital, which is on a long list of hospitals being audited to verify compliance with state law because of the nature of the explanations they provided in their responses, according to the governor’s office.
Scott listed the hospitals in a letter sent to Attorney General Pam Bondi. The Florida Agency for Health Care Administration earlier this month said it was auditing 31 hospitals to determine whether their contracts with managed-care plans comply with a state law that limits payments to 120 percent of a Medicaid fee schedule. AHCA last month requested that hospitals and insurers certify compliance with the law.
by The News Service of Florida and NorthEscambia.com
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Ernest Ward Middle Opens Football Season Thursday Night
August 25, 2015
The Ernest Ward Middle School Eagles have announced their 2015 football schedule. Play begins this Thursday at 6 p.m. at Ernest Ward as the Eagles host the Jay Royals.
The complete schedule is as follows, with all games scheduled for Thursdays at 6 p.m. -
August 27 - Jay at EWMS
September 3 - EWMS at T.R. Miller
September 10 – EWMS at W.S. Neal
September 17 – T.R. Miller at EWMS
September 24 – EWMS at Jay
October 1 – Escambia County (Atmore) at EWMS
October 8 – W.S. Neal at EWMS
October 15 – EWMS at Escambia County (Atmore)
Ernest Ward has the only public middle school football program in Escambia County.
Pictured: Ernest Ward Middle at Jay last season. NorthEscambia.com file photos, click to enlarge.
Report Shows More Farmers With Internet Access
August 25, 2015
Farmers are increasingly turning to the internet and computers for their operations, according to a new study released by the US Department of Agriculture.
The USDA report shows 70 percent of U.S. farms and ranches now have access to internet, a 3 percent growth from 2013. DSL remained the most popular method for accessing internet, accounting for 30 percent of all farms and ranches with internet access. Despite remaining in the lead, however, the DSL access is down 5 percent, from the 35 percent of farms that used this method in 2013.
In contrast, wireless connection, which accounts for 29 percent, and satellite connection, which accounts for 21 percent of the U.S. total, showed significant growth in the past two years. Share of farms using these two methods went up 5 and 4 percent respectively.
According to the report, 43 percent of U.S. farms use computers for their business operations. Crop growers, at 47 percent, are more likely than livestock producers to use computers for business. In the livestock sector, 39 percent of producers use computers for business.
Farmers’ and ranchers’ business computer uses include:
- 44 percent – Conducting business with a non-agricultural website
- 44 percent – Accessing federal government websites
- 19 percent – Purchasing agricultural inputs
- 16 percent – Marketing activities
Farmers in the Western states are most likely to use computers for business. In that region, 48 percent of all farms use computers for that purpose. Western region was closely followed by the North Central and Northeast states, where 46 and 45 of all farms followed this practice. Southern states have the lowest percentage in this category. In that region 36 percent of all farms use internet to conduct business.
Human Hunters Far Outnumber Bears That Could Be Killed
August 25, 2015
The Florida Fish and Wildlife Conservation Commission will be asked next week to set a quota of 320 bears for a controversial hunt in October.
The hunt, the first in the state in more than 20 years, has already attracted 1,795 hunters who have purchased permits, according to the commission.
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taff members released a memo Monday outlining updated bear-population counts in two of the four regions in which hunting will be allowed. The memo is expected to go before the commission at a Sept. 2 meeting in Fort Lauderdale. The hunt is scheduled to start Oct. 24 and last from two days to seven days, based upon each region’s quota goals.
According to the latest figures, there are an estimated 1,300 bears in the central region, which includes the St. Johns River watershed to the Ocala National Forest, and 550 bears in the north region, which goes from Jacksonville west to Hamilton and Suwannee counties. In each region, the harvest target is proposed at 100 bears.
The bear quota is 40 in an eastern Panhandle region, which includes the northwestern Big Bend area to west of Apalachicola Bay. In a south region, which includes Broward, Collier, Hendry, Lee, Miami-Dade, Monroe, and Palm Beach counties, the quota number is 80. The south region excludes the Big Cypress National Preserve.
The hunt is intended to help the state achieve a 20 percent reduction in the bear population in each region. The 20 percent figure includes the number of bears that die naturally, are hit and killed by cars and are captured and killed by wildlife officers due to conflicts.
One of the arguments of the hunt’s opponents has been that the state was using old numbers for the bear populations in the four regions. Two of the four regions — the eastern Panhandle and south regions — continue to rely on 2002 study numbers, according to the staff memo.
Black bears were placed on the state’s threatened list in 1974, when there were between 300 and 500 across Florida. At the time, hunting black bears was limited to three counties. In 1994, the hunting season was closed statewide.
The issue has gained attention recently because of conflicts between bears and humans in some areas of the state. Critics of the hunt contend that people are moving into bear habitats and that the state should focus on efforts such as bear-proofing trash containers and prohibiting people from feeding bears.
The cost to get a bear hunting permit is $100 for Floridians and $300 for non-Floridians. The permits will be available up until the day before the hunt begins.
Each hunter is limited to one bear, and the kill will have to be registered and tagged within 12 hours.