In brief: The The federal farm bill is under debate in Washington and will have a large part of it hinge on crop insurance, which many argue should be regionalized rather than national.

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Many states are pushing for commodity-based insurance that is regional rather than nationalized blanket coverage. This would give many farmers an advantage in lower crop insurance rates because of the lower costs or risks associated with their crop.

Mississippi is one state pushing for this idea. Last year, policy experts and insurers sat down to discuss just such a plan for the state based on risks and commodity prices rather than on national overall risks. This would potentially save the state's farms millions in premiums.

Opponents, however, say that the point of the nationalized plan is to protect America's agriculture as a whole, not individual farmers and crops. When one crop has a bad season and another does not, the gains of the latter make up for the losses of the former.

The debate in Washington will, additionally, likely center on who's responsibility crop insurance really is - something sure to spark controversy.

Summing up

Currently, crop insurance is largely subsidized by government, another deciding factor in the arguments.

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In brief: A new type of insurance is circulating that can protect companies from data loss and liabilities associated with it, but it can be pricey and complicated.

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A new form of insurance called "Cyber Insurance" or protection is being offered by many insurers as a rider to business liability coverages. The insurance covers businesses if they are the victims of data loss, theft, etc. and the liabilities that may come with that.

Often offered only as a rider for corporate espionage coverage, the insurance is now being offered by many insurers for other types of business coverage plans as well.

The costs can be large, however, depending on the liabilities covered in case of loss.

Summing up

The Ponemon Institute estimates that cyber crimes cost businesses an average of $5.9 million last year with costs ranging from $1.5m to $36.5 million per company after liabilities and other factors are included.

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In brief: To combat the negative economic impact of the perception of terrorism within its borders, Pakistan has developed a blueprint for a Terrorism Insurance Pool.

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To provide investors a shield against businesses losses due to potential terrorism attacks in Pakistan, the Securities and Exchange Commission of Pakistan (SECP) is creating a Terrorism Insurance Pool in the country.

The Pool would be available to all businesses interests investing in Pakistan - foreign and domestic - and would provide compensation for losses incurred if terrorism occurs. This, it is hoped, will give renewed confidence in the nation's economy and bring in more investment.

The insurance would be underwritten as an addition to Fire Policy coverage. The SECP issues the following guidelines for the current framework-in-progress for the Terrorism Insurance Pool:

• Policy may require ceding to pool and terrorism rates are pre-determined as service commissions to insurer are agreed upon. Insured interacts with insurer only.
• Pool will have a limit on the coverage provided ($10 million) or still to be decided.
• Pool might be able to issue policy on first loss basis (still to be decided).
• Terrorism policy wording will be standardized in this regards.
• There is also a feeling to exclude certain risk classes from the legislation on Terrorism Insurance Pool (still to be decided).

Summing up

The centralized system will be deliberated this year and would likely go into effect in the third or fourth quarter of 2012.

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In brief:Midwestern farmers may be socked by higher crop insurance rates after flooding this year caused massive losses.

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Despite the fact that levees have largely gone unrepaired after this year's flooding and before winter snows began building, farmers are most likely to feel the brunt of the costs crop insurance providers took after this year's flooding.

When the Army Corps of Engineers released near-flood waters from reservoirs in Montana, Nebraska and the Dakotas this spring, it lead to downstream states like Iowa and Missouri seeing flooding after levees, unable to take the weeks of sustained pressure, gave way. Many homes and farms were ruined and crop losses were in the tens of millions.

The U.S. Department of Agriculture says it's paid out $114 million in claims so far for the flooding damage on 436,000 acres along the Missouri River. That's only for one river, with claims along the Mississippi River expected to be much higher.

Farmers planting winter crops saw their premiums jump by as much as five times, however. They're obviously angry over this, as the flooding was due to government action, not their own risks going up.

Summing up

The rising insurance rates after government action to open flood gates and destroy levees is adding insult to injury to these farmers.

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In brief: The United States Department of Agriculture says that corn and soy crop insurance rates will drop in 2012.

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An updated federal methodology for loss estimation and lower expected claims for 2012 mean that insurers will drop rates by an average of 7% for corn and 9% for soybeans, say federal overseers.

The USDA's Risk Management Agency said the lower premium rates will more accurately reflect risks. The USDA pays .60 of each $1 spent on crop insurance premiums, with a total of $7 billion spend this year alone and insuring 256 million acres of cropland.

Summing up

Insurers question the new federal methods, but agricultural groups say premiums have historically been too high.

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In brief: With 16 U.S. states plus Washington, D.C. having legalized medical marijuana, it was only a matter of time before business-specific insurance coverage for it would be offered.

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Like any specialized business, the medical marijuana trade (production, distribution, sales) requires insurance coverage to protect it from liabilities. A broker in San Diego is offering specialized coverages for businesses dealing in MMJ.

MMJ growers, collectives, dispensaries, landlords, and related suppliers all run risks of theft, burglary, and more. Many have been virtually uninsurable because of the ambiguity of the law - marijuana is still illegal under federal law. Now specialized insurance coverages are being offered despite the roadblocks.

"Medical Cannabis Insurance," says Scott Sherwood at Breeze Insurance Services, "comes in the form of Crop Coverage, General Liability, Meds Coverage, Delivery Coverage, Workers Compensation and Commercial Auto Coverage."

Summing up

Obviously the business has its liabilities, but insurance specialized for it only enhances the burgeoning MMJ market's legitimacy.

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In brief: The Florida Insurance Commission has announced that worker's compensation insurance premiums are expected to rise 8.9% in 2012.

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The raise comes after a filing by the National Council on Compensation Insurance was approved by FIC commissioner Kevin McCarty. Despite the increase, however, Florida is one of the cheaper states for compensation insurance in the country.

The FIC also calls for legislation limiting doctors' ability to repackage prescriptions under worker's compensation and resell them at higher cost. According to them, the cost of prescriptions on worker's comp has risen from 9% to 50% of the total outlay for medical claims. The council estimates that rates would drop by 2.5% or more if those markups were reigned in.

Summing up

While costs are low in Florida, coverages are also some of the lowest in the nation, with workers being covered for fewer injuries and lower totals than in most other states.

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In brief: A judge has ruled that Transocean Ltd is not liable for costs related to the 2010 oil spill in the Gulf of Mexico.

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BP filed claims with Transocean last year, seeking $750 million in coverage under multiple policies. Transocean's primary insurers denied the claims, contending that BP's contract with the rig owner did not include coverages.

"The court finds that BP, under the drilling contract, assumed responsibility for Macondo well oil release pollution liabilities," Barbier said in a 42-page ruling. "Because Transocean did not assume these liabilities, there is no additional insurance obligation in favor of BP for these liabilities."

Summing up

The judge's ruling, BP right points out, does not resolve blame for the rig's failure. Lawsuits against the various companies involved for their possible role in that are still ongoing.

_{Photo credits: Justice for All}

In brief: An insurance brokerage in California is now offering an unusual business insurance policy - one specifically tailored to pizza parlors and delivery drivers.

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The program is available in 40 states and it insures pizza delivery drivers (more specifically the restaurants they work for) against some of the hazards unique to pizza delivery.

EPIC Programs Group is offering the insurance through an underwriter and cover not only damage or loss to the driver's car (often not included in a personal policy the delivery driver may have), but also some of the hazards that delivery drivers may face such as robbery or theft.

The policies require that drivers take a driver training and risk control course.

Summing up

While some specialized pizza programs through insurers like Progressive and Allianz SE Fireman's Fund offer delivery-specific coverage, these are often tied to the driver's policy rather than the business.

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In brief: Insurance regulators in California have filed administrative enforcement actions against Ameriprise Financial on allegations of long-term care policy violations.

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The action, which is against a unit of Ameriprise called RiverSource Life Insurance, charges that the company adopted practices that were designed to deny long-term care (LTC) benefits. The claims in question typically involved people in their 70s to 90s, many of which were incapacitated.

While some disability and life insurance claims are included in the action, it focuses mainly on the LTC insurance payouts and denials up to about 3 years ago.

The regulator's actions are the first step towards possible action and require that RiverSource disclose all activity related to the claims. The insurance unit in question is a closed business, no longer accepting policies.

Summing up

RiverSource and partners would face up to $10,000 in fines for each willful claims handling violation and another $10,000 for each violation of LTC laws as well as $500,000 for each LTC general business practice in violation of statues.

_{Photo credits: RiverSource}