Daily Quote: "There is a tide in the affairs of men, which taken at the flood, leads on to fortune. Omitted, all the voyage of their life is bound in shallows and in miseries. On such a full sea are we now afloat, and we must take the current when it serves, or lose our ventures." - - William Shakespeare
Call 800 290-7226 x 103, send an e-mail to
eric@brokersalliance.com, 1. Mccollum, Sink And Mccarty Announce $12.5 Million AIG Insurance Settlement Tuesday, January 29, 2008 Joint News Release from the Florida Attorney General’s Office TALLAHASSEE, Fla. - Attorney General Bill McCollum, Chief Financial Officer Alex Sink and Insurance Commissioner Kevin McCarty today announced that Florida has reached a settlement with a large insurance carrier involved in a "pay-to-play" tactic used by Marsh & McLennan and other insurance brokers. American International Group Inc. (AIG) will pay $12.5 million to Florida and eight other states as well as the District of Columbia to resolve allegations that some of its insurance subsidiaries engaged in bid-rigging and price-fixing in the commercial insurance market. These actions purportedly caused Florida public entities and private organizations to pay higher premiums. "We will continue to hold insurance companies accountable for the manner in which they treat their customers," said Attorney General McCollum. "I am pleased that we have been able to reach resolution for the affected policyholders in this set of circumstances, and I look forward to continuing this accountability for our state in the insurance industry." AIG and several of its insurance subsidiaries allegedly conspired with Marsh and other brokers by submitting fake bids to create the illusion of a competitive bidding process in the excess casualty commercial insurance market. Investigators determined that despite the appearance of a fair bidding process, the broker had already decided which insurer would receive a particular policyholder's business. As part of the scheme, AIG paid the brokers "contingent commissions" which were not disclosed to policyholders and in return received other lucrative business. The Florida Attorney General's Office, Department of Financial Services and Office of Insurance Regulation will receive approximately $3 million of the settlement which will fund a reimbursement pool for affected policyholders. The settlement funds will also repay the state agencies' investigative costs. "It's wrong that governments and businesses paid inflated insurance rates because they were led to believe there was competition when there wasn't," said CFO Sink, who oversees the Department of Financial Services which served a lead role in the multi-state investigation along with the Attorney General's Office and the Office of Insurance Regulation. "I applaud today's settlement, because policyholders deserve to know exactly what they are paying for and that they are paying a fair price for it." "Full disclosure in all insurance transactions is a must, and Florida consumers deserve nothing less," said Florida Insurance Commissioner Kevin McCarty. "My office is committed to protecting Floridians, and this settlement further demonstrates the progress Florida is making toward establishing a national standard for transparency in insurance transactions." AIG has agreed to a consent decree and final judgment in Leon County Circuit Court which will provide comprehensive injunctive relief, including enhanced disclosure to consumers of the compensation AIG pays to insurance brokers. AIG will also be required to abide by those reforms and to fully disclose the nature and range of payments made to insurance brokers on specific lines of coverage in the prior year. Prior to the settlement, AIG provided reimbursement to a nationwide group of policyholders and adopted significant business reforms that govern its bidding and underwriting practices. This settlement marks the fourth agreement Florida has reached with insurance carriers that were involved with Marsh's "pay-to-play" tactics. AIG has cooperated with the multi-state task force and will provide assistance to the states as they continue their investigation of insurance brokers and other insurers. In addition to Florida and the District of Columbia, the following states participated in the investigation and settlement: Hawaii, Maryland, Massachusetts, Michigan, Oregon, Pennsylvania, Texas and West Virginia. A copy of AIG's Consent Decree and Final Judgment is available online at: http://myfloridalegal.com/webfiles.nsf/WF/KGRG-7BBNLL/$file/AIG-Consent-Decree.pdf.Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Awash In Debt, U.S. Flood Insurance Under Scrutiny Tue Jan 29, 2008 1:47pm By Kevin Drawbaugh WASHINGTON (Reuters) - Swimming in red ink and scheduled to expire within months if not renewed, the troubled National Flood Insurance Program (NFIP) is about to encounter another round of criticism this week on Capitol Hill. Congressional investigators are expected to call for closer scrutiny of how insurers handle homeowners' damage claims from storms in which both wind and water play a destructive role, as they did in the hurricanes of 2005, said sources familiar with the preparation of a report set for release within days. The Government Accountability Office (GAO) report is expected to focus especially on insurers that sell both wind and flood policies to the same homeowner, a situation the GAO previously has said poses a potential conflict of interest. The Bush administration's handling of the flood program is also expected to be questioned by the GAO, the sources said. Insurers are bracing for the report, hoping it will not feed disputes over 'wind versus water' damage. Such disputes have plagued State Farm, Allstate Corp and other top insurers since Hurricane Katrina slammed into the Gulf Coast in August 2005 with 140-mph winds and a massive flood surge. "Study after study has come back with the same results, showing there is no evidence insurance companies improperly attributed wind damage from Hurricane Katrina to water," said Justin Roth, senior federal affairs director at the National Association of Mutual Insurance Companies, an industry group. "We fully expect this report to reach the same conclusion," Roth said, adding that several "constructive efforts" are under way to reform the NFIP flood program. SENATE, HOUSE BILLS DIFFER The GAO report comes as bills in both the Senate and the House of Representatives propose incremental changes to the badly crippled NFIP, which was set up in 1968. Under the program, about 90 private insurers sell and service flood policies on the government's behalf. The companies process claims and collect premiums, which are passed along to the Federal Emergency Management Agency (FEMA). The government is involved in the market because the private sector on its own does not adequately cover flood risk. Most homeowners' policies cover wind damage, but not flooding. The GAO has previously criticized FEMA's stewardship of the program and questioned how much money the agency pays private insurers for flood claims. Katrina and the other hurricanes of 2005 left the NFIP $17.3 billion in debt to the U.S. Treasury. A FEMA spokeswomen declined to comment on the report. With the NFIP widely seen as incapable of ever repaying it, the post-Katrina debt would be forgiven under a flood insurance bill approved in October by the Senate Banking Committee. The Senate bill would extend the NFIP for five years and improve flood maps used in the program. But a vote by the full Senate on the bill has been blocked by lawmakers from Louisiana who are concerned that it would boost insurance rates there. The Senate bill would not expand the NFIP to cover wind damage, as was proposed in a bill approved by the House in September. In another difference with the Senate, the House bill would not forgive the NFIP's debt. The Bush administration has threatened to veto the House bill. The insurance industry opposes expansion to cover wind. The NFIP is scheduled to expire on September 30 if Congress does not renew it. While that outcome is not widely expected, the debt and the wind hurdles still have to be cleared. "The House and Senate bills are quite different," said Robert Hunter, director of insurance for the Consumer Federation of America and former federal insurance administrator in the 1970s in charge of the NFIP. Flooding is involved in about 90 percent of all U.S. natural disasters. But the nation has yet to find a way to protect vulnerable homeowners at a reasonable cost, avoid taxpayer subsidies to well-to-do beach house owners and not encourage overdevelopment in flood-prone areas. © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. US Tax Plan Could Drive Captive Insurers Offshore Tue Jan 29, 2008 1:58pm EST By Shurna Robbins GEORGE TOWN, Cayman Islands, Jan 29 (Reuters) - A proposed tax change by the U.S. Internal Revenue Service could drive more captive insurers offshore, benefiting the Cayman Islands and Bermuda and hurting Vermont and other U.S. states that have sought to snare a piece of the action, industry officials say. If approved, the proposal would eliminate the ability of U.S. based captive insurers -- firms that insure their parent companies -- to claim tax deductions for money set aside in reserves to pay for future claims and losses. Instead, these deductions would only be allowed at the time the actual claims are paid out, potentially leading to millions of dollars in taxes being collected up front. "Companies wanting to set up captives are holding off to see what happens," said Dan MacLean, president of the Insurance Managers Association of Cayman (IMAC) and managing director of Aon Insurance Managers (Cayman), part of Aon Corp (AOC.N: ). "Right now, Cayman and Bermuda are watching from the sidelines." Other emerging captives markets, such as Ireland, Switzerland and Luxembourg, could also benefit if the IRS proposals took effect, industry experts believe. Captives, which insure part or all of their parents, were once considered a fringe product to traditional insurance. But companies, especially in the United States, have found they can make significant savings on premiums by forming captives rather than through buying traditional insurance. There are now more than 4,000 captives worldwide, writing more than $20 billion in premiums, according to the captive information Web site captive.com. To date, Bermuda, a mid-Atlantic British territory, leads the captive market with about 870 registered companies, followed by the Cayman Islands, a British dependency in the Caribbean, at 756. Vermont has been the only real onshore U.S. competitor for Bermuda and Cayman, with 562 listed captives. In recent years, however, a number of other U.S. states have brought in legislation to get a piece of the lucrative pie. MacLean said he believes the states with the best chances of grabbing a significant market share include Hawaii, South Carolina, Arizona, Nevada, the District of Columbia, and New York. "Since 9/11, there has been more of a patriotic push to keep business onshore. Beyond these states, it is unlikely that other states can effectively build the momentum needed in the industry," he said. This trend could be threatened though by the proposed tax rule changes, industry officials said. "There hasn't been anything as serious on the regulatory front like this for at least 10 years," said Dennis Harwick, chairman of the Coalition for Fairness to Captive Insurers, a group established by 46 industry associations, captives and U.S. states, including Vermont. The IRS has set a hearing for Feb. 29 to listen to the coalition's arguments. "I don't think the IRS understood that they are stepping on the states' toes. One of the assumptions that people at the IRS had made was that they didn't think that captives were real insurance companies," Harwick said. (Editing by Michael Christie, editing by Gerald E. McCormick) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Calif. Regulators To Fine UnitedHealth - Source Tue Jan 29, 2008 12:58pm EST LOS ANGELES, Jan 29 (Reuters) - California's insurance regulator on Tuesday will announce it is seeking penalties of up to $1.3 billion from UnitedHealth Group Inc (UNH.N: ) related to the handling of medical claims by its PacifiCare unit, a source familiar with the situation said. The source said that California's Department of Insurance found 133,000 potential violations related to payment for medical care claims, which could carry a fine of up to $10,000 each. California Insurance Commissioner Steve Poizner is currently holding a press conference in San Francisco outlining the charges levied against the company. The state's Department of Managed Health Care also has been investigating the matter and intends to levy fines of up to $3.5 million, according to the Los Angeles Times. Goldman Sachs analyst Matthew Borsch called the development disappointing but not surprising. "The market is by now well aware of the execution and customer service issues resulting from the integration of multiple large-scale acquisitions (aggravated in some instances by overly-aggressive cost cutting)," Borsch said. UnitedHealth has faced regulatory sanctions in a number of U.S. states related to the issue and lost a "significant" number of customers, he said. "We suspect the actual penalty will be far less than the $1.33 billion figure cited by the press, but could still be material," Borsch said. UnitedHealth said it is working with regulators to address the allegations and that no financial penalties have yet been levied. Shares of UnitedHealth, which merged with PacifiCare in late 2005, were down 3.1 percent, or $1.60, to $50.40 in trading on the New York Stock Exchange. (Reporting by Lisa Baertlein, editing by Phil Berlowitz) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. US States To Speed Berkshire Bond Insurance OK's Tue Jan 29, 2008 1:02am EST .NEW YORK (Reuters) - A national group of U.S. state insurance commissioners on Monday said it was working with Berkshire Hathaway's (BRKa.N: ) new bond insurance group to speed the process of licensing in multiple states. Berkshire Hathaway recently became the first insurance company to enter the field of insuring bonds after some of the biggest companies in the business faltered after money-losing subprime mortgage plays. The National Association of Insurance Commissioners said it was working with the new company on an "Expansion Application," which it called a "streamlined, uniform application process." Though the $2.5 trillion muni bond market has one of the world's lowest default rates at under 1 percent -- about half of this debt was backed with insurance -- until late last year, when the bond insurers' troubled subprime plays were revealed. The list of insurers, whose expansion into subprime has imperiled their required top "AAA" rating, includes AMBAC Financial Group (ABK.N: ) and MBIA Inc (MBI.N: ). Since late last year, states, cities and towns increasingly have been selling their municipal bonds without insurance. On Monday, the National Association of Insurance Commissioners, said it had met to delve into what it called "regulatory solutions" to shore up bond insurers. "State insurance regulators are working together so that all states and municipalities will have continued access to highly rated financial guaranty insurers," said Kansas Insurance Commissioner Sandy Praeger, who also serves as the group's president. (Reporting by Joan Gralla; Editing by Neil Stempleman) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. Commissioner Poizner And Dmhc Director Ehnes Take Historic Joint Action Against Pacificare To Halt Broken Claims Payment Systems More Than $1 Million for Providers and Consumers Recovered, Millions of Dollars in Additional Penalties Sought, Permanent Cure of Broken Claim Handling Systems SAN FRANCISCO / LOS ANGELES ― Insurance Commissioner Steve Poizner and Cindy Ehnes, Director of the California Department of Managed Health Care (DMHC), today announced a joint action against PacifiCare companies, owned by UnitedHealth Group, in response to more than 130,000 alleged claims handling violations. This joint endeavor is an historic step in the efforts of both the California Department of Insurance (CDI) and DMHC to put an end to the practice of unfair claims handling in the health insurance industry. This collaborative effort is the first action ever by both CDI and DMHC against a single health plan or insurer. After receiving hundreds of consumer and provider complaints about claims payment problems by PacifiCare, particularly after it was acquired by United Healthcare in late 2005, CDI and DMHC took action and launched a joint investigation in 2007 into PacifiCare’s alleged unfair practices. California law specifies that CDI generally regulates PPO (provider-preferred organization) health products and DMHC regulates HMO (health-maintenance organization) products. “When they’re injured or ill consumers rely on their insurers to pay legitimate claims,” said Insurance Commissioner Steve Poizner. “This promise is essential to our health care system, so after years of broken promises to Californians, it is crystal clear that PacifiCare simply can not or will not fix the meltdown in its claims paying process. We’re going to put an end to that. If PacifiCare can’t carry out the ABCs of basic claims payment, today’s regulatory action will help spell it out.” “The most fundamental purpose of insurance is the promise to pay claims fairly and on time and PacifiCare has broken this promise,” said Cindy Ehnes, Director of the DMHC. “We’re taking strong action today to make sure patients and providers are treated fairly so that they are able to continue to take care of California’s health care needs.”
PacifiCare’s alleged violations cited by CDI and DMHC include: CDI market conduct examinations revealed that PacifiCare allegedly made large scale and willful decisions to use broken systems to process claims and respond to providers, while continually and effectively collecting premiums. CDI discovered PacifiCare’s alleged unlawful conduct last year while investigating consumer complaints and then confirmed PacifiCare’s failure to fix its systems during a targeted market conduct examination which revealed the full extent of alleged misconduct. CDI’s investigation exposed PacifiCare’s alleged decision to improperly handle claims which resulted in thousands of infractions and grossly unfair treatment of policyholders and providers. CDI’s market conduct examinations reviewed PacifiCare files processed between July 1, 2005 and May 31, 2007, and have identified 130,000 violations of law by PacifiCare in its claims handling practices and handling of provider data including tracking of provider disputes and maintaining network lists. Statutory penalties are provided for up to $5,000 for each non-willful violation of law and up to $10,000 for each willful violation of law. The enforcement action Commissioner Poizner has brought against PacifiCare thus potentially implicates up to $650 million if all violations are proved and shown to be non-willful and up to $1.3 billion if all violations are proved and shown to be willful. Only a few days ago, the company admitted that it expects to lose at least 400,000 customers nationally due to poor customer service.
Similar provider claims payment violations have been established by the
DMHC and the plan has been assessed a penalty of $3.5 million, the
largest fine imposed by the DMHC. The DMHC fine differs from the CDI
amount because it is calculated based on a set of standards set by law,
not on a per violation formula. In addition, the DMHC has set out
certain steps the company must take to correct the claims payment
problems, including an independent monitor to oversee changes and
additional staff to handle the workload.
Order to Show Cause: Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. AHIA Backs Reformation Not Replacement FALLS CHURCH, VA — The Association of Health Insurance Advisors (AHIA), NAIFA’s health and employee benefits advocate, applauds the President’s call for reliance on the private health insurance market in his State of the Union Address. “AHIA has long supported the expansion of Health Saving Accounts (HSAs) and was pleased to hear the President include them in his January 28th address” states AHIA President, Thomas Vander Wal. The adoption of health information technology and medical liability reforms to limit costly and frivolous lawsuits are also AHIA-supported efforts. AHIA actively supports efforts to make health insurance more affordable and accessible. AHIA continues to believe that a reformed private health care delivery system is the best means to ensure choice, quality and affordability. “Reformation not replacement is what we need” concludes Vander Wal. AHIA is hopeful we can move the debate to consensus and action and looks forward to working with the Administration and Congress on improving our nation’s health care delivery system. AHIA’s mission is to Provide advocacy, services, and education to professional advisors in order to support a private, competitive health care insurance marketplace. AHIA members are NAIFA Federation members actively involved in the sale of group and individual health related products including disability, long-term care, critical illness, Medicare supplement insurance and work site products. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Parthenon Capital and Century Capital Announce Formation of Ascension Insurance, Inc. BOSTON--(BUSINESS WIRE)--Parthenon Capital and Century Capital, two mid-market private equity firms that are active investors in the financial services sector, announced today the formation of Ascension Insurance, Inc., a de novo retail insurance brokerage with a focus on building a leading middle market insurance brokerage by acquiring and growing property and casualty, risk management, and employee benefits brokerages nationwide. Ascension is led by its CEO, Len Kline, who was previously CEO of Compass Insurance Inc., the insurance brokerage division of Compass Bank. www.ascensionins.com www.parthenoncapital.com www.centurycap.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. What Worries Americans Most? Fireman's Fund Draws on Two National Surveys That Find Money Brings Peace of Mind, but Even High-Net-Worth Individuals Voice Plenty of Concerns NOVATO, Calif.--(BUSINESS WIRE)--Drawing upon two recent national surveys, Fireman’s Fund Insurance Company reveals that high-net-worth Americans with investment assets in excess of $1 million believe having money brings overall peace of mind, yet still have a variety of financial and security concerns. This is particularly true of the “newly affluent” – individuals who achieved their wealth in the last five years. The first survey, commissioned by Fireman’s Fund and conducted by Opinion Research Corporation (ORC), polled adults with more than $1 million in investible assets. It concluded that the wealthy are primarily concerned about the safety of their family, but they also have significant concerns about the protection of financial assets such as stocks, bonds, real estate and other investments. The moderately affluent, those with $2-$5 million in investible assets, are the most concerned. “Cyber-concerns” are prevalent as well. More than half (53 percent) are concerned about identity theft. Approximately 15 percent have worries that their reputation or that of a family member will be damaged on online message boards, chat rooms or social networking sites. The notion that the wealthiest Americans still have everyday worries is echoed in The 2007 Annual Survey of Affluence and Wealth in America, produced by American Express Publishing and Harrison Group. This survey of Americans with upwards of $125,000 in discretionary income reveals that most believe money has brought them considerable security and peace of mind. However, most of them don’t “really feel like they have a lot of money,” and agree with the sentiment that having been “burned in business experiences has made me much more cautious.” Among a subset of this group, there is also a concern that their financial security could vanish. When asked if they worry that someday they could run out of money, 49 percent of those who have been affluent for less than six years and 52 percent with $125K-$249K in disposable income indicated concerns about financial security. “There is a real transformation in wealth taking place as entrepreneurs and professionals from middle-class backgrounds take economic leadership in America. Wealth and affluence is a journey from financial insecurity to a deep understanding of the transforming power of wealth. It takes a while, but people learn to turn their insecurities into lifelong learning,” said Dr. Jim Taylor, Harrison Group Vice-Chairman and the principal investigator of the research program. “These survey results reflect what we know about our customers,” said Robert Courtemanche, president of personal insurance for Fireman’s Fund, which insures high-net-worth individuals. “Our goal is to protect our policyholders and their families by offering not just insurance, but to also give them peace of mind and help in protecting their financial futures.” Both studies confirm the role insurance agents can play in the process of managing risk and alleviating the concerns of the affluent. The ORC research revealed that about 50 percent of those surveyed turn to an independent insurance agent for guidance, with 67 percent of those in the most affluent group being more likely to turn to an agent for advice. More than two-thirds of those surveyed by the Harrison Group and American Express Publishing said that they follow the advice of their insurance agent, and 75 percent are satisfied with their insurance agent. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Greenlining Demands United States Auto Association to Stop Cheating California’s Military Personnel The Greenlining Institute, a multi-ethnic consumer protection organization, filed a petition today with the California Department of Insurance challenging United States Automobile Association’s (USAA) insurance rates. Greenlining’s objection was based on a number of serious concerns stemming from USAA’s treatment of its 5.9 million customers, all of whom are either members or family members of the United States armed forces. USAA’s proposed rate hike came on the heels of the insurer’s cancellation of over 25,000 policies designed to protect California’s military service personnel and their families from multiple perils including earthquakes, flooding, and mudslides. According to Greenlining Legal Counsel, Samuel Kang, this would have a disastrous impact in the event of a major earthquake. Kang says, “California’s Insurance Commissioner has repeatedly commented that this state is not prepared to rebuild from the next big earthquake. But USAA is ignoring the Insurance Commissioner’s warning by making the problem worse and cancelling thousands of policies.” Greenlining also contends that USAA overprices its automobile insurance by not participating in the California Low Cost Auto Insurance Program. USAA’s failure to offer Low Cost Auto Insurance to its low-income military customers drew strong criticism. Leo Avila, a World War II veteran and a member of the American GI Forum, says, “USAA has a special responsibility because the company specifically targets members of the armed forces as customers. But instead of serving our men and women in uniform, USAA is cheating them.” Kang says that USAA’s disregard for American veterans is also reflected in the fact that USAA lacks any supplier diversity program. “It’s troubling that USAA, a company that supposedly is in the business of reaching out to our troops, has made no meaningful effort to reach out to a divers group of suppliers, including disabled veteran business owners.” Greenlining further contends that USAA has invested nothing in California’s Organized Investment Network (COIN), a voluntary program that serves as the state’s primary reinvestment vehicle for insurance companies. Kang says that USAA, a Fortune 500 company, is undermining COIN by not participating. He says, “Since COIN is a voluntary program, it depends on companies like USAA, one of the largest companies in the world, to set the example for the rest of the industry.” Kang goes on to say that “USAA’s absence from COIN is not only irresponsible, it sabotages the ability of COIN to function.” USSA is seeking rate hikes of up to 23.5 percent on their homeowner multi-peril insurance product line. Greenlining is requesting a hearing from California Insurance Commissioner Steve Poizner so that USAA can respond to its allegations. The California Insurance Code directs the Commissioner to hold a hearing on the rate increase, when requested within 45 days, if the company's proposed increase exceeds 7 percent. Kang says, “Not protecting out troops while they protect all of us undermines our very security.” He is hopeful that Poizner will call a hearing sooner rather than later, saying that, “The Commissioner has proclaimed himself to be a strong proponent of consumer protection. I just hope that means he’ll go to bat for our troops.” Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. CAREINGTON International Partners with AIG Employee Benefit Solutions® on New Group Limited Benefit HealthCare Plan FRISCO, Texas--(BUSINESS WIRE)--CAREINGTON International, a leading provider of discount health-care programs announced today that it has been selected to administer AIG Employee Benefit Solutions’ most recent product, AIG Group Limited HealthCareSM insurance plan, to all AIG Employee Benefit Solutions group clients. AIG Group Limited HealthCareSM, which was launched last October, combines a select number of CAREINGTON’s premier discount medical services with an accident and sickness indemnity insurance plan, as well as critical illness and term life insurance that are underwritten by AIG Life Insurance Company and American International Life Assurance Company of New York, both member companies of American International Group, Inc. (AIG). “We’re very proud to partner with one of the world’s leading insurance organizations to offer employers a new way to help fill potential benefit gaps in traditional health-care coverage,” said Barbara Williams, president and chief executive officer, CAREINGTON International. “By combining the new AIG Group Limited HealthCare Plan with our best-in-class line of discount medical networks, employees will be able to further reduce the financial burden of out-of-pocket medical expenses not covered by insurance.” CAREINGTON’s discount medical services include a national medical provider network of 3,900 hospitals and more than 1 million provider locations -- including medical, dental, vision and prescription savings -- as well as access to online medical information and a 24-hour nurse line. “To remain competitive in today’s environment, employers need cost-effective benefits packages to attract and retain quality employees,” said Mike Witwer, senior vice president, Marketing and Product Development, AIG Employee Benefit Solutions. “We are committed to leading the market in developing new, innovative employee benefits products and AIG Group Limited HealthCare Plan addresses employer concerns by offering flexible, affordable ancillary coverage that easily complements their current major medical plan.” AIG Group Limited HealthCare is not basic health insurance or a substitute for health insurance. For more information about this product or to learn more about one of the broadest employee benefit product portfolios available, visit www.aigebs.com. About CAREINGTON CAREINGTON International is Discount Medical Plan Organization and Third Party Administrator dedicated to improving the health and well-being of individuals by providing access to quality dental, health care and lifestyle services at reduced rates. The company provides a range of membership programs - from dental, medical, pharmacy, vision and chiropractic to legal, tax, child/eldercare, concierge and identity theft - that deliver significant savings to more than seven million members nationwide. For more information, contact CAREINGTON International at 866-222-2558 or visit www.careington.com. About AIG American General AIG American General, www.aigag.com, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc. (AIG). AIG American General companies offer a broad spectrum of fixed and variable life insurance, annuities and accident and health products to serve the financial and estate planning needs of its customers throughout the United States. American International Group, Inc. (AIG) does not underwrite any insurance policy described within this news release. The licensed insurance company underwriting the product is responsible for its own financial condition and its contractual obligations AIG Employee Benefit Solutions®, www.aigebs.com, is the marketing brand under which group employee benefit insurance products and individual worksite products (including life, accidental death & dismemberment, disability, dental, vision, cancer insurance and critical illness products) are offered by the insurance companies that comprise AIG American General, including AIG Life Insurance Company, American General Assurance Company, American International Life Assurance Company of New York, The United States Life Insurance Company in the City of New York and American General Life Insurance Company. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. INSURANCE NEWSLINK Articles Articles added to INSURANCE NEWSLINK, the worldwide, strategic concise intelligence database of over 30,000 articles including interviews, uniquely analysed by company, market, research, regulatory, and IT topics. Please click here for a content overview and a 15-day free review. THE TIME EFFECTIVE WAY TO STAY AHEAD
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Bank Insurance News In Brief-January 28, 2008 Recent articles added to INSURANCE NEWSLINK, the worldwide, strategic concise intelligence database of over 30,000 articles including interviews, uniquely analysed by company, market, research, regulatory, and IT topics. Please click here for a content overview and a 15-day free review.
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Home prices in 10 cities drop a record in Nov: S&P Tue Jan 29, 2008 9:11am EST NEW YORK (Reuters) - Home prices in 10 major metropolitan areas fell by a record 8.4 percent in the year through November, Standard & Poor's said on Tuesday. The decline topped the 6.7 percent annual drop for October, according to the S&P/Case-Shiller Home Price Indices. November's annual drop was deeper than some economists had expected. (Reporting by Al Yoon; Editing by James Dalgleish) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Countrywide posts loss as late payments mount Tue Jan 29, 2008 9:30am EST NEW YORK (Reuters) - Countrywide Financial Corp (CFC.N: ), the battered mortgage lender being acquired by Bank of America Corp (BAC.N: ), posted a larger-than-expected fourth-quarter loss on Tuesday, as a sinking housing market caused more borrowers to fall behind on payments. The net loss totaled $421.9 million, or 79 cents per share, and compared with a year-earlier profit of $621.6 million, or $1.01 per share. (Reporting by Jonathan Stempel; Editing by Dave Zimmerman) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Citi Likely To Keep Smith Barney, Stay Intact: CNBC Tue Jan 29, 2008 8:59am EST NEW YORK (Reuters) - Citigroup Inc (C.N: ) CEO Vikram Pandit is likely to keep the company intact rather than spinning off or selling units such as the Smith Barney retail brokerage, CNBC's Charles Gasparino said on Tuesday without citing sources. That decision is not final and is still subject to change, Gasparino said. Some investors have argued that Citi is too large to be run efficiently and should instead be broken up into pieces, but others have argued that Citi's recent difficulties stem from execution rather than size. Michael Hanretta, a spokesman for Citigroup, declined to comment. (Reporting by Dan Wilchins, editing by Mark Porter) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. FBI investigates 14 firms in subprime crackdown Tue Jan 29, 2008 5:39pm EST By Randall Mikkelsen WASHINGTON (Reuters) - The FBI has opened criminal investigations into 14 corporations as part of a crackdown on improper subprime lending, agency officials said on Tuesday. FBI officials told reporters the probes involved potential violations, including accounting fraud and insider trading. They did not identify the companies. But the probes reached across the industry to include developers, subprime lenders, companies that securitized loans and investment banks that held them, said Neil Power, head of the FBI's economic crimes unit. "Currently there are ... 14 investigations, inquiries open right now," he said. Cases involving individual loans have also risen sharply in a crackdown on subprime lending irregularities, officials said. "We anticipate in the next year that another wave of adjustable rate mortgages will reset and with that we anticipate that the mortgage corporate fraud potential cases to increase," said Sharon Ormsby, head of the FBI's financial crimes section. The FBI is investigating the corporate cases in parallel with the Securities and Exchange Commission, which has opened about three dozen civil investigations into the subprime market collapse. Some of the probes overlap, an official said. Targets of the SEC probe include Swiss bank UBS AG and U.S investment banks Morgan Stanley, Merrill Lynch, Bear Stearns, as well as bond insurer MBIA. The SEC, which has formed an internal subprime mortgage task force, is looking at how financial firms priced mortgage-based securities and whether they should have told investors earlier about the declining value of those securities. The U.S. attorney in Brooklyn, New York and the FBI earlier launched a criminal investigation into two mortgage-related hedge funds at Bear Stearns that collapsed during the summer. There are also state investigations. The corporate investigations are part of an FBI crackdown on improper subprime lending, which also includes a focus on fraud in loan origination. The agency has about 1,200 active cases, up 40 percent from 2006, with 321 criminal complaints or indictments, officials said. "Subprime loans are decreasing but ... suspicions of mortgage fraud are increasing," Ormsby said. Some of the loan origination cases are spurred by individuals lying to qualify for mortgages, but about 80 percent of the cases involved fraud for profit, Power said. Particular problem areas included California, Texas, Arizona, Florida, and the Midwest, officials said. (Additional reporting by Karey Wutkowski) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Top Bankers Must Judge Risk: Citigroup Chairman Tue Jan 29, 2008 8:58am EST BRUSSELS (Reuters) - Managing risk within a bank is not just a matter of relying on internal processes but also requires taking the right decisions at the top of the company, Citigroup Chairman Win Bischoff said on Tuesday. Banks are under pressure to tighten their internal risk controls after French bank Societe Generale last week unveiled the biggest incident of alleged fraud in history. "You can't manage risk just on process. There also has to be judgment at the top of the organization," Bischoff told a financial markets conference. (Reporting by Huw Jones, editing by William Schomberg) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Travelers CEO Fishman Sees More Competitive '08 Tue Jan 29, 2008 9:17am EST NEW YORK, Jan 29 (Reuters) - Travelers Cos Inc (TRV.N: ) Chief Executive Jay Fishman said he sees a more competitive marketplace this year but is comfortable with the company's position in the insurance market and sees no change in strategy. Fishman made his remarks at an investor conference on Tuesday following the release of fourth-quarter earnings. (Reporting by Ed Leefeldt, editing by Gerald E. McCormick) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
View INSURANCE NEWSCAST "Sports Pictures Of The Day" View INSURANCE NEWSCAST "Entertainment Pictures Of The Day"
21. American Safety Insurance Holdings, Ltd. to Present at NYSSA Insurance Conference HAMILTON, Bermuda--(BUSINESS WIRE)--American Safety Insurance Holdings, Ltd. (NYSE: ASI) announced today that Stephen R. Crim, President and Chief Executive Officer, and William C. Tepe, Chief Financial Officer, are scheduled to present at the New York Society of Security Analysts 12th Annual Insurance Industry Conference on Monday, February 11th at 2:50 p.m. The event will be held at NYSSA Headquarters located at 1177 Avenue of the Americas, 2nd Floor. A real-time audio webcast of the presentation will be available at www.amsafety.com. A replay of the broadcast will be available via the website for 30 days. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Electric Insurance’s Massachusetts Personal Auto Rate Filing Approved by Division of Insurance Massachusetts drivers to experience up to a 30% premium decrease BEVERLY, Mass.--(BUSINESS WIRE)--Electric Insurance Company, a Beverly, Massachusetts based national provider of auto, homeowners, condominium, and renters insurance, is pleased to announce that the Massachusetts Division of Insurance has approved their Massachusetts auto rate filing. The Division of Insurance approved Electric Insurance’s new rate structure, discounts and base rates for use beginning April 1, 2008. Under the rate filing, Massachusetts customers of Electric Insurance will experience an average rate decrease of 9%, while some could experience up to a 30% rate decrease, and none will experience a rate increase greater than 10%. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. ClariFI's ModelStation Adopted by Swiss Re to Support its Quantitative Equities Group NEW YORK, Jan. 29 /PRNewswire/ -- ClariFI(R), a Standard & Poor's Capital IQ business and leading provider of software and services focused on quantitative portfolio management and research, today announced that ModelStation(R) was adopted by Swiss Re, the world's leading and most diversified global reinsurer, to support its global quantitative equities group. http://www.swissre.com/. http://www.clarifi.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Unum Posts Lower 4th-Qtr Earnings, But Tops View Tue Jan 29, 2008 1:01am NEW YORK (Reuters) - Unum Group (UNM.N: ) said on Monday that net income fell in the fourth quarter, hurt by an investment loss and the cost of retiring debt, but operating earnings exceeded analysts' estimates. Unum, the largest disability insurer in the United States and Britain, said net earnings dropped to $160.5 million, or 44 cents a share, from $276.1 million, or 80 cents a share, in the year-earlier quarter. But earnings from continuing operations, which analysts use to measure performance, were up 19 percent to $213.1 million, or 59 cents a share. Analysts, on average, had expected 54 cents a share, according to Reuters Estimates. Unum shares were up 2 percent to $21.25 after the bell. (Reporting by Ed Leefeldt; editing by Jeffrey Benkoe) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. General Star Announces Lawyers Professional Liability Insurance Program STAMFORD, Conn.--(BUSINESS WIRE)--General Star National Insurance Company has just received approval to write lawyers professional liability insurance in the state of New York. This program will be written through PCM Services, LLC, New York, New York, which also acts as the program manager in New Jersey, Pennsylvania, Washington, D.C., North Carolina and Delaware. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. AIG Executive LiabilitySM Announces AIG PrivateEdge PlusSM Modular Package of Seven Coverages Available for All Private Companies NEW YORK--(BUSINESS WIRE)--AIG Executive LiabilitySM, a division of the property-casualty insurance subsidiaries of American International Group, Inc. (AIG), today announced AIG PrivateEdge PlusSM, a package policy of seven management and professional liabilities products allowing private companies to purchase multiple coverages in one complete package. executiveliability@aig.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. New Best Practices Guide on Employee Benefits Benchmarking Tool Showcases Employee Benefits Strategies of The Principal 10 Best Companies DES MOINES, Iowa--(BUSINESS WIRE)--Employers have long known that employee well-being impacts job performance. Now a new benchmarking guide from the Principal Financial Group delivers best practices in employee benefits that help employees get both financially and physically fit resulting in fiscal fitness and a competitive edge for the business. Companies can use the guide to benchmark their current practices and get new ideas. The Formula for Success outlines the benefits best practices of The Principal 10 Best Companies for Employee Financial Security—2007. Selected by an independent panel of benefits experts for excellence in helping employees achieve long-term financial security, the winning companies say the key is more personalized help — such as one-on-one health coaches in wellness programs and workplace financial guidance. In the best practices guide, which is available at no charge at www.principal.com/bestguide employers and their financial professionals can find: A benchmarking chart for comparing their employee benefits to those of The Principal 10 Best Companies and national averages Detailed tactics and real-life examples of their success Engaging case studies that illustrate the universal challenges faced by employers today — and the innovative tactics The Principal 10 Best Companies used to overcome them Easy-to-use, interactive checklists of best practices that can help them fine-tune their employee benefit programs Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Hilb Rogal & Hobbs Company Agrees to Acquire Talty Insurance Agency, Inc. RICHMOND, Va.--(BUSINESS WIRE)--HRH (Hilb Rogal & Hobbs Company) (NYSE:HRH), one of the world's largest insurance and risk management intermediaries, announced that it has signed a definitive agreement to acquire substantially all of the assets of Talty Insurance Agency, Inc. (Talty). The transaction is expected to be complete on February 1, 2008. Terms of the transaction were not disclosed. Denver-based Talty has been independently owned since its foundation in 1973. With over $2.7 million in annual revenue, Talty offers tailored coverage for both property and casualty and employee benefits clients, with a focus on community associations, small business insurance and personal insurance. Talty is the third organization to join HRH’s Colorado operation in the past year; The Urman Company and Brown/Raynor Corporation were acquired in June and July 2007, respectively. www.hrh.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
