The Atlantic Basin should experience near-normal hurricane activity during the hurricane season that begins next week on June 1, the National Oceanic and Atmospheric Administration said in a prediction released yesterday.

NOAA said there is a 70% chance that nine to 15 named storms will form during the six-month hurricane season, which ends Nov. 30. NOAA predicts that four to eight of those storms will grow to hurricane strength, according to NOAA, and one to three of those will grow into "major" hurricanes with winds of at least 111 mph, said NOAA.

In 2011, Hurricane Irene caused massive damage along the Eastern U.S. and even more inland due to flooding.

NOAA said that during the period 1981-2010, an average hurricane season produced 12 named storms, with six growing to hurricane strength and three of those becoming major hurricanes.

"NOAA's outlook predicts a less active season compared to recent years," said NOAA Administrator Jane Lubchenco, in a statement accompanying the forecast. "But regardless of the outlook, it's vital for anyone living or vacationing in hurricane-prone locations to be prepared. We have a stark reminder this year with the 20th anniversary of Hurricane Andrew."

In other natural disaster related news, the U.S. Senate agreed this week to extend the National Flood Insurance Program (NFIP) for 60-days past its current expiration date of May 31. Last week, the U.S. House of Representatives voted 402 to 18 on a separate measure, H.R. 5740, to extend the NFIP for 30-days so it remains to be seen how this compromise will be worked out and if a real lon-term extension will be agreed to in the near future.

Do your clients understand the potential liability their pet dogs possess as dog bites in 2011 accounted for more than one-third of all homeowners insurance liability in claim dollars paid out? That stat is reported by the Insurance Information Institute (I.I.I).

The dog bite claims in 2011 totalled an astounding $478 million, and State Farm, the largest writer of homeowners insurance in the U.S., paid out more than $109 million as a result of its nearly 3,800 dog bite claims in 2011.

Even more telling, perhaps, is an analysis of homeowners insurance data by the I.I.I. found that the average cost paid out for dog bite claims was $29,396 in 2011, up 12.3 percent from $26,166 in 2010. Perhaps your policyholders do not realize the extreme costs and liability they face as dog owners? This may go unnoticed as claims and their costs have risen dramatically over time outpacing inflation.

In fact, from 2003 to 2011, the cost of the average dog bite claim increased by 53.4 percent. This increase can be partially attributed to increased medical costs as well as the size of settlements, judgments and jury awards given to plaintiffs, again according to the I.I.I.

So What Breeds are Top Biters?

According to PropertyCasualty360, an insurance website, many insurers rely on a list of top biters compiled by the Centers for Disease Control. The CDC says that the seven kinds of dogs most often involved in fatal attacks on humans were pit bulls, Rottweilers, German shepherds, huskies, Alaskan malamutes, Doberman pinschers and Chow chows.

"If you own one of those breeds, or have it on your property, they're probably not going to write your coverage at all," Tom Alger, an official with the Iowa Division of Insurance said.

A nonprofit, nonpartisan organization, The National Federation of Independent Business promotes and protects the rights of small businesses. The federation has officially endorsed defined contribution health benefits as a common sense solution for small businesses, according to Yahoo News.

On their website, NFIB's Amanda Austin discusses proposals to bring down healthcare costs for small businesses that include providing a "new defined contribution option that would let business owners contribute a simple, pre-tax dollar amount to employees, who could then choose their own health plan."

In the official video, the NFIB describes the defined contribution solution as follows:

• "What if you as a business owner could contribute a simple dollar amount pre-tax to your employees so they could choose to purchase a health plan that is best suited for their needs."
• "A win-win for the employer and the employee."
• "And, you wouldn't have to deal with administering the plan and your employees would not be stuck with only one health insurance option."

The NFIB, a leading critic of ObamaCare, is the nation's leading small business association with more than 300,000 members and representation in all 50 states and D.C.

In 2011, life combination products grew 56 percent, representing the third consecutive year of double-digit growth, according to LIMRA's 2011 Individual Life Combination Products Annual Review available on its website.

Total new premium for life combination products reached $2.2 billion in 2011, approximately 13 percent of total individual life insurance new premium. More than 72,000 combination policies were sold in 2011, which makes up approximately 16 percent of all long-term care insurance policies and contracts sold in 2011.

"Sales of life combination products continue to grow at a remarkable rate, especially coming off the double-digit growth experienced in 2009 and 2010," said Elaine Tumicki, corporate vice president and director LIMRA product research. "With so much uncertainty in the stand-alone long term care insurance (LTCI) market, consumers under 50 -- looking for a way to cover a portion of long term care costs -- are turning to acceleration combination products as an affordable alternative."

All life combination product lines experienced growth in 2011, with universal life (UL) combination products becoming the dominant product (increasing 67 percent in premium compared to 2010). Whole life (WL) and variable combination premium grew 16 percent and 17 percent respectively.

Life insurance can also be paired effectively with critical illness coverage.

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