What’s new: In brief (May 11, 2004)

Citigroup and its Travelers Insurance Co. have had their debt ratings affirmed by Moody’s following settlement of claims relative to the WorldCom class action lawsuit. Citigroup announced a US$4.95 billion special charge for the suit and other litigation reserves.

With more than half of California’s homes facing potential risk of wildfire, the loss potential is more than US$106 billion. With the early start to this year’s forest fire season, the Insurance Information Network of California (IINC) is urging homeowners to ensure they have sufficient insurance coverage and mitigation in place to protect against what is being forecast as potentially one of the worst fire seasons on record.

Louisiana is the most recent state to pass legislation to ban credit scoring by insurers. Bill 215 was pass by the state Senate and would prohibit insurers from using credit scores except to determine the rate of interest on premium payment financing. The bill is now in the hands of the state’s House committee.