Claims from the devastating 2011 Joplin, Mo., tornado that wiped out more than 7,000 structures and took 161 lives are closing in on the $2 billion mark close to two years after the event.
In an interview with The Joplin Globe, John M. Huff, director of the Missouri Department of Insurance, Financial Institutions and Professional Registration says total claims from the tornado have reached 19,870 totaling $1.65 billion.
The director was quoted as saying that he feels the losses will eventually reach $2 billion.
As of Oct. 31, the department says there have been 6,982 claims totaling $47.9 million for private auto coverage. On the homeowners side, insurers have responded to 8,647 claims, paying out close to $536 million.
The paper says commercial-property claims are close to $1 billion in paid losses with well over 2,000 claims. Commercial auto and other commercial losses have accounted for over 600 claims with paid losses of more than $19 million.
Commenting on the progress after the devastating storm, the paper reports that Joplin Elks Lodge, destroyed by the tornado, marked its grand reopening Wednesday.
See related: Joplin, One Year Later
Earlier this week, one victim of the tornado, Barton County Mutual Insurance Co., which was in rehabilitation after the storm, was released from control of the department. Under a plan approved by a Barton County, Mo., judge, the company would merge with two sister companies and be managed by the Missouri Farm Bureau.
Unrelated to the Joplin tornado, the insurance department announced yesterday that it is closing two insurers that were declared insolvent over a decade ago.
Cole County Circuit Judge Patricia Joyce granted the department permission to close Transit Casualty Co. and International Financial Services Life Insurance Co. The actions were taken after the department assured the judge that all claims and liabilities related to the two companies were paid.
Transit Casualty was placed into receivership in 1985 and International Financial Services was declared insolvent in 1999.
“I'm pleased to report the high percentages of claims that were able to be paid out of these companies' assets,” says Huff in a statement “Shortfalls are paid by charges to insurance companies, which can ultimately increase premiums for consumers. So while receiverships often take many years, it is an orderly process of winding down the business of an insurer while protecting Missouri consumers.”
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