Losses From Latest East Coast Snow Storm Pegged at up to $300M

AIR Worldwide Estimates Insured Losses from the February 23-28 U.S. Winter Storm will Range from USD 150 million to USD 350 million

Insured losses From Two Prior Storms in February Estimated at Between USD 400 million and USD 1 billion

BOSTON, March 5, 2010 –

Insured losses from two prior storms -- which from Feb. 4 to Feb. 7 and Feb. 9 to Feb. 11 -- are estimated to have have caused insured losses of between $400 million and $1 billion.Boston-based risk modeling firm AIR Worldwide estimated that the insured losses from the winter storm that struck the East Coast between February 23 and 28 will be between $150 million and$ 350 million. Total

"The third winter storm to slam the Northeast coast last month reached its height on Friday, February 26, impacting nine states in the mid-Atlantic and New England," said Peter Dailey, director of atmospheric science at AIR Worldwide.

The storm combined heavy snowfall, flooding rain and high winds, some of which reached hurricane-strength. In Manhattan, where nearly 21 inches of snow were recorded in a 36-hour period, the storm set an all-time record for snow in the month of February. The storm also set a record there for accumulation in a single day. Elsewhere, snowfall totaled more than two feet over parts of eastern New York State and western Massachusetts. West Halifax, Vermont, received 38.5 inches of snow.

When storms follow each other in such quick succession, as they have in recent weeks, there is little time for accumulated snow to melt. As a result, the potential for roof damage is increased. As with the two earlier storms, damage caused by snow accumulation is expected to be a major source of insured losses from this latest event.

Design loads for structures vary across the United States. As little as zero pounds per square foot is allowed in Florida, southern Louisiana, Texas, and parts of the Southwest, while as much as 100 pounds per square foot is required in Michigan's Upper Peninsula and northernmost Maine. The design snow load for Washington, D.C., is about 30 pounds per square foot. With this tolerance, light metal and long-span roofs (such as on hangars or warehouses) are especially vulnerable to snow loads, as are flat or low-slope roofs. Ten to 20 inches of snow can produce loads of roughly 15 to 30 pounds per square foot on flat roofs.

Engineered structures -- high-rise and government office buildings in New York -- must conform to high load tolerances and damage to these structures is therefore expected to be minimal. But the roofs of marginally-engineered structures (such as convenience stores) can collapse under large accumulations of snow, particularly if their roofs have not been well maintained.

"The late February winter storm was accompanied by higher wind speeds than the two earlier storms... Thus wind damage will also play a role in insured losses for this event," Dailey said. "At the level of wind speeds observed, AIR would expect claims from damage to non-structural elements, such as roof coverings, cladding, awnings and signage. Damage to both structures and automobiles from fallen trees is also likely. While individual claims are not expected to be severe, the number of claims could be significant because the storm impacted a very wide area from New Jersey to Maine."

Selective Insurance Announces Several Promotions

New Jersey-based insurer Selective Insurance Group Inc. has made several executive promotions.

Anthony D. Harnett has been promoted to to senior vice president, corporate controller. Harnett joined Selective in September 1999 as a senior accountant and held various finance positions over the years before being promoted to vice president and controller in 2008.

John P. Bresney has been promoted to vice president of infrastructure services and operations for Selective's Information Technology Services (ITS) department. Previously, he served as assistant vice president of infrastructure services. He joined Selective in June 1996 as a management trainee and has held various positions within the ITS department.

Darryl P. Holmes has been promoted to vice president, commercial lines underwriting. Holmes joined Selective in February 2009 as assistant vice president of commercial lines underwriting. Prior to that, he was a branch manager at Zurich North America.

Robert J. McKenna has been promoted to vice president, infrastructure architecture and engineering for Selective's ITS department. Previously, he served as assistant vice president, infrastructure planning and integration. Prior to that, McKenna was a senior engineer/team lead for Prebon Yamane.

Raymond J. Farinella has been promoted to assistant vice president, billing services. Previously, he served as billing services manager. Farinella joined Selective in May 2006 as a manager of direct bill accounts. Prior to that, he was a corporate financial manager for Konica Minolta.

Minnesota Cities Brace for Spring Floods

Chances remain high for major spring flooding in some Minnesota cities along rivers as a heavy winter snowpack melts, the National Weather Service said. But city officials remain confident their towns can handle high water that might approach 2001 flood levels.

The National Weather Service said Friday that the chance for major flooding in Montevideo, on the Minnesota River in the western part of the state, remains 80 percent, unchanged from last month's outlook.

Montevideo City Manager Steve Jones said the latest outlook actually is optimistic.

Jones said Montevideo had major flooding last year, but because many homes have been removed from a low-lying area after flooding in 1997 and 2001, few people noticed."It appears to us the probability of high waters increases, but the probability of high, high water has decreased,'' Jones said. He said the week's daytime temperatures in the 30s, followed by cold nights, has meant a gradual thaw, and this weekend's forecast was for less rain than earlier expected.

In Granite Falls, the latest outlook calls for a 30 percent chance of moderate flooding from the Minnesota, with a slight chance of major flooding. But Mayor Dave Smiglewski said he thinks his city is in for "some pretty significant flooding.''

The city is downstream from Montevideo and Smiglewski said "the water doesn't disappear.'' A community meeting on flood preparations is scheduled for Thursday, but the mayor said sandbagging probably won't begin until the third week of March, since sandbags that freeze in cold weather are useless.

West of Minneapolis, chances of major flooding remain about 60 percent in levee-protected Delano on the south fork of the Crow River, according to the updated outlook. Parks, parking lots and some roads could see standing water, said Delano city administrator Phil Kern, but "pending a levee break, we should be in pretty good shape.''

In downtown St. Paul, the chance of major flooding on the Mississippi River has increased to 70 percent, up from last month's outlook of 60 percent. The forecast indicates an 80 percent chance of at least moderate flooding in downtown St. Paul, where floodwaters forced Holman Field to shut down in 2001. The airport is now protected by a floodwall.

Other cities that could see flooding include Hastings on the Mississippi River, where the chances of major flooding are 70 percent, and Shakopee and Savage on the Minnesota, the National Weather Service said. Even minor flooding would inundate Highway 101 across the Minnesota at Shakopee.

While the last week of February was dry, helping the flood outlook remain relatively unchanged, the heavy snowpack in western and southern Minnesota is not melting as it should, weather service hydrologist Diane Cooper said.

"I think everyone is seeing the melt occurring in the (Twin) Cities, so they're assuming things are starting to melt elsewhere,'' Cooper said.

The weather service releases its next flood outlook on March 26 before beginning to issue river crest forecasts.

Kansas Debates Ignition Lock Reporting Amendment

Some fear a proposed amendment to a drunken driving bill would make it easier for DUI offenders to avoid getting a device that prevents them from starting their vehicles if they have had too much to drink.

That's because the amendment would remove the requirement that the drunken drivers who are required to get ignition interlock devices report to the state that they had done so.

Mothers Against Drunk Driving national president Laura Dean-Mooney is urging lawmakers to eliminate the amendment.

The Wichita Eagle reported that Sen. Mary Pilcher Cook offered the amendment to address an issue a constituent had alerted her to. The constituent was required by the court to drive with the ignition interlock device for a year. But the constituent did not have a car.

"I don't want people to drive drunk,'' said Cook, a Shawnee Republican. "I want our roads to be safe; I just want to find a solution for everybody.''

House Judiciary Committee Chairman Lance Kinzer anticipates the amendment will be altered or removed when his members take up the issue this coming week.

Currently, drivers who are convicted of a second drunken-driving offense, who refuse a breathalyzer test or who are caught with a .15 blood alcohol level -- almost twice the legal limit of .08 -- must drive for a year or more with an interlock device, said Marcy Ralston, chief of the state Driver Control Bureau, Division of Motor Vehicles.

The devices cost $50 to $70 for installation and $65 to $75 a month in fees after that.

Once the devices are installed, the installation company notifies the state and the clock starts running on how long the device must be on the car, Ralston said.

"Your driving privilege is not reinstated until you've kept that interlock for the full period,'' she said.

She said compliance was low before the state began requiring the notifications in July 2006 because many drivers would simply drive without the devices and risk getting pulled over.

House Assistant Minority Leader Rep. Jim Ward, D-Wichita, who sits on the House Judiciary Committee, said he thought the idea should be removed from the bill and sent to the state's DUI Commission for study. The commission is in the midst of a comprehensive overhaul of Kansas' drunken-driving laws.

"There are a few ... people without a vehicle, but they are very few,'' Ward said "We don't want to throw the baby and the bathwater out.''