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Morgan,

Just curious - is Jennifer still around? You seem to be quite busy lately and it seems we haven't heard from Jennifer in a while.

Yea, she's here. We're both busy, just working on different things.

Does the school have replacement cost coverage or not? What you are describing is actual cash value coverage, which is totally different. ACV coverage is typical for car insurance as you described, but it is not typical for property coverage. Property coverage is typically replacement coverage or stated value coverage.

What evidence do you have that Shaw's $42 million is "bogus"? Bogus is defined as fake or having a misleading appearance, so are you saying that Shaw lied or tried to mislead intentionally? Did she or did she not get that figure from the Insurance Commissioner, Jim Long? If she did, why would Jim Long provide a misleading amount? If she did not, why would Shaw lie that she did?

If the state, not the county is responsible for
insuring our school buildings, then I think they should be held accountable for all of the funds to rebuild.

It is odd that one entity holds the insurance policy and another is responsible for the actual replacement. Maybe we should sue the state for not adequately protecting the assets of the citizens of this county.

Bogus Number??? From Linda Shaw???

I SERIOUSLY DOUBT THAT.

By the way comparing a depreciating asset to an appeciating asset and drawing a conclusion makes no sense at all to me.

Stormy: It's simple. Mr. Long gave an off-the-cuff comment during a conversation with Bob Shaw, not knowing that his wife was listening in and would eventually repeat the number in a public meeting. Chrissy Pearson said Long gave a number that he thought he had read elsewhere, but when he was speaking to Mr. Shaw, he didn't realize the context of the conversation. Dr. Grier also called me Friday and said he talked to Mr. Long and Mr. Long denied he knew of a $42 million figure. I'm not saying there was an agenda here. It sounds more like someone misspoke. I called the Department of Insurance on Friday and asked for Mr. Long to verify his numbers. He couldn't. Moreover, the Department of Public Instruction only handles $10 million in insurance; the rest comes through private insurers.

I would have made the same calls if a school official gave the $42 million. Someone has to verify it and at this point, no one has.

On the subject of replacement insurance, the district has it. But there are different types of replacement insurance. The policy specifically says: "coverage type replacement cash value assigned." The policy does not state that it's "guaranteed cost replacement insurance," which would have to pay for a new building. The "replacement" has to meet the terms of the policy as I stated before. Meaning: the insurers will take the least expensive route to compensating the district. If it costs less to rebuild the school than to give the district the appraised value, it will. The district doesn't think that's going to happen, given the appraised value of the building: $16.2 million. Moreover, the policy says the insurers will cover increased costs of construction if the owner (the district) rebuilds more or less the exact same school. We know that is not the case, as GCS is using Northern High's design. Maybe the insurers will have sympathy on GCS. I will scan the mentioned parts of the policy and post it so everyone can see. Keep in mind that both local and state officials have referred to the insurance as replacement insurance.

Morgan,

What difference does it make whether Mr. Long thought his comments were listened to by Ms. Shaw? Did he say that his comments were confidential and not for attribution?? Did he think he was telling someone something that was a secret? If he was talking to someone about it, off the cuff, I fail to udnerstand why he would throw out a number like, oh, $42 million, because he thought he had read it somewhere. Actually, Morgan, it's not simple at all. It's pretty convoluded. Personally, it sounds like there is more to the story than meets the eye.

Commercial experts tell me that it is common for large losses like this to take awhile to investigate and settle, but almost never does it take longer than six months, unless it is litigated. If that is true, why is this taking so long to resolve and does school personnel seem so totaly in the dark as to what coverage will be? Another question that I have is how are the insurance premiums calculated for this type of coverage, when it is do difficult to calculate what risks are being insured? I understand that this is a blanket insurance coverage, but what is the basis for the premium?

I wasn't aware that there were many different types of replacement coverage, as I thought that replacement meant replacement. What are the different types of replacement insurance? Whose form is this insurance policy written upon, as it seems rather convoluted to me? What is an insurance sublimit?

Morgan,

"Moreover, the Department of Public Instruction only handles $10 million in insurance; the rest comes through private insurers."

Does this mean that the losses are reinsured by the fund in excess of $10 million, or is that a layer of private insurance that sits on top of the fund? Must the schools negotiate the loss adjustment with the state fund and the private carrier or does the fund do both?

If the school district has access to both pools of capital, that could increase the amount of insurance available to them to construct a new building. And if they have access to both capital pools, $ 42 million would not be beyond reach, if the schools carried an appropriate insurance to value ratio on all insurable buildings.

numbers,

Sorry I've not been around lately. I was in a car wreck a couple weeks ago and had to deal with replacing my car. Dealing with insurance and car hunting can be time consuming. Unfortunately I'll be out-of-pocket for a few more days because I'm in training with our online folks.

Again, sorry about being so absent lately. I apologize for any inconvenience I've caused anyone.

Jennifer,

Sorry to hear about your accident. I hope that you weren't injured. I've been there, done that with dealing with insurance companies over car accidents - I wish you well.

Stormy,

Why is it that you are always alledging a conspiracy? Commissioner Long is an honorable man, Dr Grier is an honorable man but even though Morgan explained the circumstances you have to question their motives.

You will never solve problems when you continually accuse / suspect wrongdoing. You have no evidence of wrongdoing but you hang on every word looking for a way to twist it to alledge conspiracy. Shameful... Get help!

The Real Truth

numbers,

Thankfully, only my car suffered injuries. Unfortunately, I had to find a replacement. Also unfortunate - I had just paid off my car last year. :( Sigh. I guess that's just the way the cookie crumbles sometimes.

Thanks for the well wishes.

Stormy,
It is clear at this point that your questions are fueled by distrust for the school system and not based on the evidence currently at hand. To review:
1. A spokeswoman with the Department of Insurance denied that Mr. Long had inside knowledge of a possible insurance settlement. Whether Mrs. Shaw heard the number correctly is secondary to whether Mr. Long had the correct information or not. And if he does have inside knowledge but I can't prove it, it has little value to the public.
2. Dr. Grier called Jim Long himself and told me Friday that Mr. Long denied the $42 million number.
3. Jill Wilson and another school board member (typically critical of the school administration) also believed the number was off.
4. Reviewing the insurance policy itself casts doubt on a $42 million number given the value of the school and the insurers' approach to settling with the owner.

So, the question is, should I go on a wild goose chase of a fantasy number when that number has been publicly denied? My question for Commissioner Shaw would be did she ask Mr. Long any follow up questions to determine where his inside knowledge came from? And has she and other commissioners read the district's insurance policy?

As to sublimits, I believe most insurance policies have them. I have sublimits on my car insurance for medical payments and so on and I have had sublimits on my home insurance to cover pesonal property, jewelry, etc.

When the evidence changes, you and the rest of the public will know.

Morgan,

Great, Morgan. How is it clear that my questons are fueled by a distrust of the school system? so, you are calling me paranoid, right? If school personnel say it is that way, it makes it so and no questions are allowed. Why haven't you called Ms. Shaw herself to ask her questions about this? This is a matter of interest to me as well as other taxpayers. Since school personnel never willingly share information with the public, I would expect that you as a member of the local media would pursue answers for us. On the other hand, I realize that is an false expectation. Perhaps the reporters for the HPE and the Rhino might be willing to actually be investigative reporters for the public. They understand the role.

Morgan,

Forget the $42 comment, what about my questions below. They are legitimite questions that aren;t being answered by school officials.

"Moreover, the Department of Public Instruction only handles $10 million in insurance; the rest comes through private insurers."

Does this mean that the losses are reinsured by the fund in excess of $10 million, or is that a layer of private insurance that sits on top of the fund? Must the schools negotiate the loss adjustment with the state fund and the private carrier or does the fund do both?

If the school district has access to both pools of capital, that could increase the amount of insurance available to them to construct a new building. And if they have access to both capital pools, $ 42 million would not be beyond reach, if the schools carried an appropriate insurance to value ratio on all insurable buildings.

Dr. Grier is an honorable man????

Please Google his name and see what comes up. The guy is a coast-to-coast trail of human debris.

Why the N&R is willing to defend this guy and the paid-by-the-hour attorney is beyond me.

Morgan,

One other question for you. You quote the policy above regarding replacement coverage, but is that the state insurance fund or the private insurer? Are you saying that taking both coverages into effect, that the schools will not be paid any more than the appraised value of $16.8 million? If so, who has said that, the insurance company and the insurance fund, jointly?

I understand that the the DPI controls the insurance fund, not the Department of Insurance, but if the state insurance fund limit is $10 million and the balance is through a private insurer, then wouldn't that policy be the province of the Insurance Department and Jim Long? The Insurance Department has the responsibility for private insurers, don't they? If so, Mr. Long might very well have some insight into the claim.

Also, what is the name of the private insurer that carries the coverage above $10 million? I can't seem to find that information anywhere.

As regards the sublimit, it would seem that would only apply to any expense associated with building a bigger and better school. It would not apply to replacing the original structure in like size and quality.

Morgan,

Why don't you simply call Linda Shaw and compare stories.

Regardless, it really doesn't matter. From what I read in your newspaper the commissioners are telling the school system to proceed with building, that funds are there for now to start the building process. The commissioners aren't giving the GCS any more funds until the insurance money comes in which hopefully will be soon. Then we can all see what the actually policy pays out.

You may have missed it, but we already talked to Long (through his PR office) and to Shaw.

Click on the links to read the stories.

I don't know about talking to someone's PR office and how valid that is; but in talking to Mrs. Shaw yesterday I'm sticking by her and her reasons for doing what she did.

I'm just sorry it wasn't done sooner. It's a shame the "Inside Scoop" did not disclose the underlying reasons with regards to Mrs. Shaw; but was more than willing to disclose how upset Mr. Grier.

How upset Mr. Grier is; he's about to be even more upset.

I agree. Talking to someone's PR person is not the same as talking to Mr. Long. What did he tell you?

Hide the water glasses.