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Tag: Hurricanes and typhoons

  • Florida lawmakers seeking to calm property insurance storm

    Florida lawmakers seeking to calm property insurance storm

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    TALLAHASSEE, Fla. — Florida lawmakers are trying to fix in three days a home insurance problem that’s been stormy for three decades, approving legislation designed more to keep private insurers in the state than to immediately save property owners money.

    A massive bill seeking a $1 billion reinsurance fund, reduced litigation costs and to force some customers to leave a state-created insurer passed the Florida House 84-33 on Wednesday, a day after it passed the Senate in a special session.

    The bill next goes to Republican Gov. Ron DeSantis for his expected signature.

    “We can’t stop the weather, but we can address the cost of reinsurance, we can stop the fraud, we can tighten up the regulations, and we can address court decisions,” said Republican Rep. Tom Leek, the House bill sponsor. “The first thing that we have to do is we have to stop frivolous litigation.”

    Florida has struggled to maintain stability in the state insurance market since 1992 when Hurricane Andrew flattened Homestead, wiped out some insurance carriers and left many remaining companies fearful to write or renew policies in Florida. Risks for carriers have also been growing as climate change increases the strength of hurricanes and the intensity of rainstorms.

    Earlier this year, Florida homeowners already were struggling to replace dropped policies or pay premiums, with a swelling number of them relying on the state-created insurer of last resort, Citizens Property Insurance Co.

    Erik Paul, a tech industry worker in Orlando, said that over the summer his insurer notified him that the annual cost of insurance on his 1,200-square-foot (110-square-meter) house was going from $1,700 to $8,000. He found coverage for more than $5,000 a year from another carrier, but he says he got a letter in October saying his rate was going up another $111 annually with little explanation.

    While Paul thinks some provisions in the legislation considered are a good step, he isn’t optimistic it will fully resolve the issue.

    “Rates keep going up year after year, regardless of whether there are hurricanes,” Paul said.

    The Legislature had held a special session in May hoping to slow the crisis. Then Hurricane Ian smashed through southwest Florida in September, causing an estimated $40 billion to $70 billion in property damage.

    Leek believes the changes under the legislation will bring more carriers to the Florida market, eventually sparking the competition that will lower rates. “I think that that can happen in short order, but you can’t say for certainty when it’s going to happen,” he said.

    Democratic Rep. Dotie Joseph proposed an amendment freezing property insurance rates for one year, saying the legislation as it stands does virtually nothing to provide immediate help for people facing huge rate increases.

    “We have the money,” Joseph said. “I’m not saying don’t help the insurance companies. But can we do something for the people of Florida too?”

    The amendment failed on an 84-32 vote.

    The bill also would force insurers to respond more promptly to claims and increase state oversight of insurers’ conduct following hurricanes.

    Average annual premiums have risen to more than $4,200 in Florida, which is triple the national average. About 12% of homeowners in the state don’t have property insurance, compared to the national average of 5%, according to the Insurance Information Institute, a research organization funded by the insurance industry.

    The insurance industry has seen two straight years of net underwriting losses exceeding $1 billion in Florida. Six insurers have gone insolvent this year, while others are leaving the state.

    The insurance industry says litigation is partly to blame. Loopholes in Florida law, including fee multipliers that allow attorneys to collect higher fees for property insurance cases, have made Florida an excessively litigious state, a spokesperson for the Insurance Information Institute has said.

    The legislation would remove “one-way” attorney fees for property insurance, which require property insurers to pay the attorney fees of policyholders who successfully sue over claims, while shielding policyholders from paying insurers’ attorney fees when they lose.

    Attorneys groups have argued that the insurance industry is at fault for refusing to pay out claims and that policyholders sue as a last resort. The alternative, arbitration, tilts in favor of insurance companies, they say.

    The bill would provide $1 billion in taxpayer funds for a program to provide carriers with hurricane reinsurance, which is coverage bought to help ensure they can pay out claims. It would offer “reasonable” rates in a market where companies have complained about rising costs.

    The proposal will also speed up the claims process and eliminate the state’s assignment of benefits laws, in which property owners sign over their claims to contractors who then handle proceedings with insurance companies.

    The bill would force people with Citizens policies to pay for flood insurance and require moves to private insurers if they offer a policy up to 20% more expensive than Citizens. Citizens topped 1 million policyholders for the first time in a decade.

    Lawmakers this week are also expected to pass separate bills that would provide property tax relief to people whose homes and business were made uninhabitable by Ian and give 50% refunds to commuters who pay more than 35 highway tolls in a month with a transponder.

    ———

    Anderson reported from St. Petersburg, Florida. Associated Press writer Mike Schneider in Orlando contributed to this report.

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  • Michigan man dies in Florida while delivering free bikes

    Michigan man dies in Florida while delivering free bikes

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    KINGSFORD, Mich. — A Michigan Army veteran who turned his life around with a bike shop died in a crash while delivering free bikes to children in Florida affected by Hurricane Ian, his family said.

    Steven Pringle, 57, was killed in Punta Gorda, Florida, on Nov. 23, a few weeks after a profile in the Detroit Free Press described how his passion for fixing bikes had touched many people in Michigan’s Upper Peninsula.

    “One lady said, ‘We couldn’t afford a bicycle, and your father gave my son a bicycle.’ I was really blown away at the impact that he had,” Pringle’s son, Jason Pringle, told the Free Press last week.

    Someone placed a bike, painted white, at the scene of the Punta Gorda crash, a common memorial to victims of fatal collisions. There’s a message on the frame: “May the legend live on.”

    Pringle was driving a pickup truck with a trailer of bikes when he drove through an intersection that was missing a stop sign due to the hurricane, the Free Press reported.

    Pringle earlier this year told the newspaper that he had been in despair, eating poorly and living in a camper when he had an awakening while praying the Catholic rosary. It eventually turned into Build a Bicycle — Bicycle Therapy, a shop in Kingsford where he fixed bikes, sold new ones and gave many away.

    “I’ve had people in the beginning who told me, ‘You donate too much,’” Pringle said. “But the more we donate, the more that comes back at the end of the day. I don’t need money. What am I gonna do with it, collect it and save it?”

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  • Pricey pants from 1857 go for $114k, raise Levi’s questions

    Pricey pants from 1857 go for $114k, raise Levi’s questions

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    RENO, Nev. — Pulled from a sunken trunk at an 1857 shipwreck off the coast of North Carolina, work pants that auction officials describe as the oldest known pair of jeans in the world have sold for $114,000.

    The white, heavy-duty miner’s pants with a five-button fly were among 270 Gold Rush-era artifacts that sold for a total of nearly $1 million in Reno last weekend, according to Holabird Western American Collections.

    There’s disagreement about whether the pricey pants have any ties to the father of modern-day blue jeans, Levi Strauss, as they predate by 16 years the first pair officially manufactured by his San Francisco-based Levi Strauss & Co. in 1873. Some say historical evidence suggests there are links to Strauss, who was a wealthy wholesaler of dry goods at the time, and the pants could be a very early version of what would become the iconic jeans.

    But the company’s historian and archive director, Tracey Panek, says any claims about their origin are “speculation.”

    “The pants are not Levi’s nor do I believe they are miner’s work pants,” she wrote in an email to The Associated Press.

    Regardless of their origin, there’s no denying the pants were made before the S.S. Central America sank in a hurricane on Sept. 12, 1857, packed with passengers who began their journey in San Francisco and were on their way to New York via Panama. And there’s no indication older work pants dating to the Gold Rush-era exist.

    “Those miner’s jeans are like the first flag on the moon, a historic moment in history,” said Dwight Manley, managing partner of the California Gold Marketing Group, which owns the artifacts and put them up for auction.

    Other auction items that had been entombed for more than a century in the ship’s wreckage 7,200 feet (2,195 meters) below the surface of the Atlantic Ocean included the purser’s keys to the treasure room where tons of Gold Rush coins and assayers ingots were stored. It sold for $103,200.

    Tens of millions of dollars worth of gold has been sold since shipwreck recovery began in 1988. But last Saturday marked the first time any artifacts hit the auction block. Another auction is planned in February.

    “There has never been anything like the scope of these recovered artifacts, which represented a time capsule of daily life during the Gold Rush,” said Fred Holabird, president of the auction company.

    The lid of a Wells Fargo & Co. treasure box believed to be the oldest of its kind went for $99,600. An 1849 Colt pocket pistol sold for $30,000. A $20 gold coin minted in San Francisco in 1856 and later stamped with a Sacramento drug store ad brought $43,200.

    Most of the passengers aboard the S.S. Central America left San Francisco on another ship — the S.S. Sonora — and sailed to Panama, where they crossed the isthmus by train before boarding the doomed ship. Of those on board when the S.S. Central America went down, 425 died and 153 were saved.

    The unique mix of artifacts from high society San Franciscans to blue-collar workers piqued the interest of historians and collectors alike. The pants came from the trunk of an Oregon man, John Dement, who served in the Mexican-American War.

    “At the end of the day, nobody can say these are or are not Levi’s with 100% certainty,” Manley said. But “these are the only known Gold Rush jean … not present in any collection in the world.”

    Holabird, considered a Gold Rush-era expert in his over 50 years as a scientist and historian, agreed: “So far, no museum has come forward with another.”

    Panek said Levi Strauss & Co. and Jacob Davis, a Reno tailor, received a U.S. Patent in May 1873 for “An Improvement in Fastening Pocket-Openings.” Months later, she said, the company began manufacturing the famous riveted pants — “Levi’s 501 jeans, the first modern blue jean.”

    She said before the auction that the shipwreck pants have no company branding — no “patches, buttons or even rivets, the innovation patented in 1873.”

    Panek added in emails to AP this week that the pants “are not typical of miner’s work pants in our archives.” She cited the color, “unusual fly design with extra side buttonholes” and the non-denim fabric that’s lighter weight “than cloth used for its earliest riveted clothing.”

    Holabird said he told Panek while she examined the pants in Reno last week there was no way to compare them historically or scientifically to those made in 1873.

    Everything had changed — the materials, product availability, manufacturing techniques and market distribution — between 1857 and the time Strauss came out with a rivet-enforced pocket, Holabird said. He said Panek didn’t disagree with him.

    Levi Strauss & Co. has long maintained that up until 1873, the company was strictly a wholesaler and did no manufacturing of clothing.

    Holabird believes the pants were made by a subcontractor for Strauss. He decided to “follow the money — follow the gold” and discovered Strauss’ had a market reach and sales “on a level never seen before.”

    “Strauss was the largest single merchant to ship gold out of California in the 1857-1858 period,” Holabird said.

    The list of the $1.6 million cargo that left San Francisco on the S.S. Sonora in August 1857 for Panama was topped by Wells Fargo’s $260,300 in gold. Five other big banks were next, followed by Levi Strauss with $76,441. Levi Strauss had at least 14 similar shipments averaging $91,033 each from 1856-58, Holabird said.

    “Strauss is selling to every decent-sized dry goods store in the California gold regions, probably hundreds of them — from Shasta to Sonora and beyond,” Holabird said. “This guy was an absolute marketing genius, unforeseen.”

    “In short, his huge sales create a cause to be manufactured. He would have to contract with producers for an entire production run.”

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