Hazard Insurance

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WILLIAM HAGER

HAZARD INSURANCE EXPERTISE

Hazard Insurance.  When I use this term in this website, I mean insurance coverage for the structure of the home only, generally covering hazards such as fire damage, hail damage, theft, vandalism, and more. Hazard insurance does not generally refer to the coverage that protects the insured for injuries incurred by the insured or the insured’s guests following an accident (i.e., liability coverage).  The requirement for hazard insurance is generally because of lenders. Mortgage loan providers generally require hazard insurance – at minimum – before they will issue a loan and require it at a minimum if the insured permits their homeowners insurance to lapse.  

I.   SUMMARY OF MOST RELEVANT EXPERTISE.[1] 

In connection with my hazard insurance expertise, I draw on my expertise (i) as summarized immediately below, (ii) as set forth in my website at https://www.expertinsurancewitness.com  and (iii) as set forth in my Curriculum Vitae, located at https://expertinsurancewitness.com/wp-content/uploads/2019/08/Appendix-A-William-Hager-CV-2019.pdf including referenced websites.

Hazard insurance cases generally call for expertise as to, among other things, custom and practice as to the following matters: (i) the nature of hazard insurance as issued in the marketplace; (ii) the rules and regulations that come to bear on hazard insurance and its sale and its agent; and (iii) the obligations of the insurer and agent that sell hazard insurance to their insureds.  

Hazard Insurance Expertise:  State Insurance Regulatory.  My expertise as to these matters can be found as follows: I am a former:

  • Commissioner of Insurance (Iowa); [2]

  • First Deputy Commissioner of Insurance (IA);

  • Administrative Law Judge, (ALJ), f/k/a “Hearing Officer,” to the Department of Insurance (IA);

  • Assistant Attorney General assigned on a full-time basis to the Department of Insurance;

In those capacities, on a regular basis, I had full regulatory oversight and responsibility for and I dealt directly with (i) the nature of hazard insurance as issued in the marketplace; (ii) the rules and regulations that come to bear on hazard insurance and its sale and its agent; and (iii) the obligations of the insurer and agent that sell hazard insurance to their insureds.  

Hazard Insurance Expertise:  National Insurance Regulatory.  My expertise as to these matters can be found as follows: I am a former:

  • Member of the National Association of Insurance Commissioners (“NAIC”) and Member of its Executive Committee.  

  • Elected Member of the Executive Committee of the NAIC;

  • Authority over the Property Casualty Committee (i.e., the “C” Committee of the NAIC), including hazard insurance;

In those capacities, on a regular basis, I had full regulatory oversight and responsibility for and I dealt directly with (i) the nature of hazard insurance as issued in the marketplace; (ii) the rules and regulations that come to bear on hazard insurance and its sale and its agent; and (iii) the obligations of the insurer and agent that sell hazard insurance to their insureds.  

Hazard Insurance Expertise: Most Current Legislative.[3]  In addition to my regulatory background at the state and national levels, I have served or am serving in the following capacities, each of which included working knowledge of and interaction with (i) the nature of hazard insurance as issued in the marketplace; (ii) the rules and regulations that come to bear on hazard insurance and its sale and its agent; and (iii) the obligations of the insurer and agent that sell hazard insurance to their insureds.[4]

  • Elected Member of the Florida House of Representatives (currently – I was first elected in 2010 and re-elected in 2012 and 2014 and 2016) where I serve or have served for each of those years in one of the following insurance capacities: as a Member and Vice Chairman of the Insurance Committee (among other committees) or its upstream parent, the Commerce Committee, which collectively have legislative oversight over all statutory elements of insurance in the state (as administered by the Florida Office of Insurance Regulation) including those relating to hazard insurance related insurer and insured obligations; and

  • In addition, I have sat as Vice Chairman of the Civil Justice Subcommittee of the Florida House, which has responsibilities as to Florida laws that establish (among other things) liability.

Hazard Insurance Expertise: Past Legislative.  In addition to my regulatory background at the state and national levels and my current legislative responsibilities, I have served in the following capacities, each of which included working knowledge of and interaction with (i) the nature of hazard insurance as issued in the marketplace; (ii) the rules and regulations that come to bear on hazard insurance and its sale and its agent; and (iii) the obligations of the insurer and agent that sell hazard insurance to their insureds.  

  • Legal Counsel to the Iowa House of Representatives;

  • Chief of Staff, f/k/a Administrative Assistant, at the U.S. House of Representatives;

  • Deputy Mayor and Member of the City Council of Boca Raton, where I was the insurance lead for the Council.

Hazard Insurance Expertise:  Industry. In addition to my state and national insurance regulatory background and my legislative background as to hazard insurance matters, I have served or am serving in the following capacities, each of which included regular and significant working knowledge of and interaction with (i) the nature of hazard insurance as issued in the marketplace; (ii) the rules and regulations that come to bear on hazard insurance and its sale and its agent; and (iii) the obligations of the insurer and agent that sell hazard insurance to their insureds.  

  • President and Chief Executive Officer of the National Council on Compensation Insurance (NCCI), a major U.S. property casualty insurance company doing business throughout the United States;

  • This position included the obligation to promulgate and gain approval of some $100 billion of property casualty premium, during the time I served as CEO.  That is to say, I had responsibility, utilizing actuarial methodology, to accurate price and gained Insurance Commissioner approval throughout the U.S. of some $100 billion of property casualty premium; work that parallels pricing in this case;  

Hazard Insurance Expertise:  Actuarial. In addition to my regulatory background at both the state and national levels and my legislative background, both current and past, and my industry background as to hazard insurance matters, I have served or am serving in the following capacities, each of which included regular and significant working knowledge of and interaction with (i) the nature of hazard insurance as issued in the marketplace; (ii) the rules and regulations that come to bear on hazard insurance and its sale and its agent; and (iii) the obligations of the insurer and agent that sell hazard insurance to their insureds.  

  • American Academy of Actuaries, Washington D.C.  I served as general counsel and chief lobbyist to the Academy, whose role to actuaries is parallel to that of the AMA to physicians and the ABA to lawyers.  Academy members determine pricing for hazard insurance products at issue in this matter.  

  • Actuarial Standards Board (ASB).  I served as well as counsel to the Interim Actuarial Standards Board, the forerunner to ASB.  ASB, which is to the actuarial profession as to what the Financial Accounting Standards Board (FASB) is to the accounting profession, promulgates and enforces professional standards upon the work product of actuaries.  Those standards include rate making standards that apply to the pricing of the hazard insurance policies at issue in this matter.  

  • Commissioner of Insurance; First Deputy Commissioner of Insurance.  In these two positions, in which I served for a total of six years, I had full regulatory responsibility over the pricing of all hazard insurance sold in the marketplace from a prior approval standpoint.  

  • As CEO of NCCI, during my tenure, as stated above, I had responsibility for the formation of some $100 billion of premium, which was accomplished through a team of some 150 actuarial professionals; I fully cognizant of the process by which premiums are formulated and the factors that go into premium formulation.  

  • Degree in Mathematics.  In addition, I hold a B.A. in Mathematics (secondary mathematics education).  Mathematics is the foundation of all of actuarial science.  

Hazard Insurance Expertise:  Insurance Arbitrator. In addition to my regulatory and industry background and my legislative and actuarial background as to hazard insurance matters, I have served or am serving in the following arbitration capacities, each of which included knowledge of and interaction with (i) the nature of hazard insurance as issued in the marketplace; (ii) the rules and regulations that come to bear on hazard insurance and its sale and its agent; and (iii) the obligations of the insurer and agent that sell hazard insurance to their insureds.  

  • Nationally certified Insurance Arbitrator (ARIAS-US), where I sit as an arbitrator on disputes between (among others) hazard insurers and their reinsurers;

Hazard Insurance Expertise:  Reinsurance Arbitrator. In addition to my regulatory and industry background and my legislative background and my actuarial background and my insurance arbitration background as to hazard insurance matters, I have served or am serving in the following arbitration capacities, each of which included knowledge of and interaction with (i) the nature of hazard insurance as issued in the marketplace; (ii) the rules and regulations that come to bear on hazard insurance and its sale and its agent; and (iii) the obligations of the insurer and agent that sell hazard insurance to their insureds.  

  • Nationally certified Reinsurance Arbitrator (ARIAS-US), where I sit as an arbitrator on disputes between (among others) hazard insurers and their reinsurers;

Hazard Insurance Expertise: Current: Insurance Lawyer.  In addition to my state and national insurance regulatory background and my legislative background and my industry background and my actuarial background and my arbitration background as to hazard insurance matters, I have am serving in the following legal capacities, each of which included knowledge of and interaction with (i) the nature of hazard insurance as issued in the marketplace; (ii) the rules and regulations that come to bear on hazard insurance and its sale and its agent; and (iii) the obligations of the insurer and agent that sell hazard insurance to their insureds.  

  • As stated, I am an insurance lawyer admitted to practice, all by examination in Iowa, Illinois[5] and Florida;

  • Practicing Florida insurance and reinsurance lawyer, at the Hager Law Firm, Boca Raton, Florida.

Hazard Insurance Expertise: Past Practice as an Insurance Lawyer.  In addition to my state and national insurance regulatory background and my legislative background and my industry background and my actuarial background and my arbitration background and my current legal practice as to hazard insurance matters, I have served in the following legal capacities, each of which included knowledge of and interaction with (i) the nature of hazard insurance as issued in the marketplace; (ii) the rules and regulations that come to bear on hazard insurance and its sale and its agent; and (iii) the obligations of the insurer and agent that sell hazard insurance to their insureds.  

  • Legal Counsel to the Iowa House of Representatives;

  • Iowa Assistant Attorney General;

  • Counsel to the Professional Insurance Agents Association (IA), whose members sold hazard insurance;

        

  • Counsel to the Property Casualty Insurance Association of America (PCIAA), an insurer trade organization many of whose members sold hazard insurance;  

  • Insurance lawyer with the firm of Hager and Schachterle;

  • General Counsel to the American Academy of Actuaries (see above), Washington D.C., whose members determine premiums for hazard insurance; and

Hazard Insurance Expertise: Undergraduate Formal Education as a Basis for this Expertise.  In addition to the above expertise, my background is bolstered by the following undergraduate degree:

  • Bachelor’s degree in Mathematics (secondary mathematics education);

Hazard Insurance Expertise: Graduate Formal Education as a Basis for this Expertise.  In addition to the above expertise, my background is bolstered by the following undergraduate degree:

  • Master’s degree in Education (specifically educational psychology);

  • Juris Doctorate degree from the University of Illinois;

Hazard Insurance Expertise: Licenses as a Basis for this Expertise.  In addition to the above expertise, my background is bolstered by the following licenses and certifications:

  • Licensed to practice law in the states listed above, all by examination;

  • Admitted to practice before the U.S. Supreme Court;

Hazard Insurance Expertise: Certifications as a Basis for this Expertise.  In addition to the above expertise, my background is bolstered by the following certifications:

  • Certified Insurance Arbitrator by the ARIAS-US.  

  • Certified Reinsurance Arbitrator by the ARIAS-US.  

Hazard Insurance: Other Expertise. The above expertise should be read together with the balance of my background as set forth in Section IV of this Report and as set forth:

Given all of this, I am positioned to provided expert witness testimony as to hazard insurance and related insurer obligations and responsibilities.  

END


[1]   In summary fashion, I set out here my qualifications as to this matter.  These qualifications should be read together with: (i) my Curriculum Vitae as set forth at Appendix A of this Report, including my website at https://expertinsurancewitness.com  and materials therein relating to hazard insurance, and https://expertinsurancewitness.com/homeowners-insurance-expert/ .  I note that hazard insurance is a component part of homeowners insurance.  

[2] Because the insurance business is conducted across state lines and more specifically, nationally, the Insurance Codes and Department of Insurance rules and regulations (by whatever name) are substantially similar state over state.  This is so because much of insurance regulation, though conducted primarily at the state level, is a result of adoption of national model statutes and administrative regulations as promulgated by the nation’s Insurance Commissioners through the National Association of Insurance Commissioners so as to assure uniformity state over state.  Furthermore, most individual state’s regulation of hazard insurance, by whatever formal name, is substantially similar to the statutory equivalent of which I enforced in Iowa.  My point is that my regulatory experience is substantially similar to parallel experience and positions throughout the U.S. (e.g., the state’s Commissioner of Insurance).  This experience is bolstered by my 45 years of direct insurance experience, including that of being a CEO of a major U.S. property casualty insurer doing business throughout much of the U.S. and my eight years of experience as an elected Member of the Florida House of Representatives where I serve or have served as a (1) Member of and (2) Vice Chairman of the Insurance Committee as well as (3) its parent, the Commerce Committee, with statutory oversight over hazard insurance.  

[3] My background at both the U.S. Congress and with the Florida House of Representatives could be construed as regulatory in nature but I include it here under my non-regulatory experience because it seems to be a better fit.  In addition to these legislative positions, I have also served as Deputy Mayor and Member of the City Council of the City of Boca Raton, Florida, where I headed up the Council’s insurance oversight function.  

[4] As a result of term limits (8 years), I completed my legislative service as of 1/01/2019.  

[5] This license is currently in inactive status at my request and is eligible for reactivation at any time upon my request.  This is so because I am – and continue to be – in good standing with the Illinois Bar.