October 30, 2010
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Comment
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Hi Ken;
Why has there been no uproar over this obvious power grab by the
federal government? Renovation, Repair & Painting? Installing a
security system doesn't fall under any of that. I could understand
maybe guys who do a lot of home theater installations coming under that
program because of the holes they open for ceiling speakers, etc, but
this whole think wreaks. The federal regs state that if you disturb
more than six square feet of wallboard on a pre 1979 constructed home,
you need to use their guidelines. NJ in their infinite wisdom made the
standard more stringent, and you need to follow the guidelines and be
licensed if you disturb more than two square feet. I have been in this
business for over 30 years, and I can't recall a single installation
where I disturbed even one square foot of wallboard. You can't convince
me that this isn't someone being paid off somewhere. $300 for the
training, $300 for the license and then another $500+ for the HEPA
vacuum. Are they insane?
The law was intended to protect children. It is my understanding
that kids will eat peeling paint with lead in it because it has a sweet
taste. Why don't they just go after landlords who aren't maintaining
their apartment buildings? Let's call a spade a spade here. It has
been my experience, that people who can't afford to keep their walls
painted, can't afford security systems either. I have had others tell
me "well if some kid or pregnant woman gets sick from lead and you were
on the job, you will be sued. First of all, if that was the case,
training or not, everyone who was on that job site is in the same
predicament. Secondly, what dumb ass is going to hang around their home
if it is under construction and they have young children or are
pregnant? I think fear of injury would outweigh fear of anything else.
If this ridiculous law is allowed to stand, I think that as a country,
we are lost. Just breathing the air in this state is like smoking 1
1/2 packs of cigarettes a day, what next? Will they enact a law that
requires carbon filters to be installed in our boxer shorts? All that
flatulence is bad for the environment you know. This is insane.
John from NJ
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comment on SARRG
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Ken,
This morning, October 29, 2010, First Mercury was sold to Fairfax Holdings. Additionally, they reported a surprise quarterly loss.
Here is part of the press release as to what the loss was due to,
During the three and nine months ended September 30, 2010, there was $11.4 million of unfavorable development of prior years' net loss and loss adjustment expense reserves due to adverse claims development principally in the Company's primary general liability and professional liability lines of business. For the three and nine months ended September 30, 2009, there were $1.3 million and $5.7 million, respectively, of favorable development of prior years' net loss and loss adjustment expense reserves.
First Mercury provides coverage under the Cover X brand as well as direct with First Mercury Insurance Company policies sold through brokers, one such broker is big.
This could mean future instability in our specific insurance market niche. I foresee that Fairfax will likely take steps to make sure future losses don’t occur, and this could mean underwriting changes, price changes, or class withdrawals from particular markets.
It’s all up in the air right now, but policy holders will need to stay in touch with their brokers to watch this and see how it develops.
At this time SARRG does not write coverage for prior periods due to loss of coverage.
Bart A. Didden
Member – Board of Directors
Security America Risk Retention Group – SARRG
866-315-3838