As an agent, you must continually seek new and innovative solutions to manage the rising healthcare costs of your clients. Like most agents, you probably struggle to find alternatives that are financially suitable for your clients while still providing the essential benefits their employee’s desire. The American Worker advises that you to consider the various cost saving products we offer though our diverse product portfolio.
Consider a Gap Plan…
A Gap Plan is a group supplemental out-of-pocket medical expense indemnity insurance policy that complements a client's existing group medical insurance plan. This policy is specifically designed to pay inpatient or outpatient deductibles, coinsurance, and co-payments of the underlying group medical plan. Consider offering a group medical plan with higher out-of-pocket costs and supplementing it with a Gap Plan. This will save your client money while still providing their employees with quality benefits. Or Consider…
Consider the advantages of partnering with The American Worker when designing a complete benefit solution for your clients. Contact us to learn more. The American Worker Plans,
Inc. Daily Quote: "Rudeness is the weak person's imitation of strength" --- Eric Hoffer
The validation of voluntary benefits as a mainstream distribution system has been proven in the marketplace.Year after year of impressive growth and increased acceptance by both employers and employees has created an environment for carriers and producers to capitalize on this expanding market. www.workplacebenefits.org 1. Statement By Florida Insurance Commissioner Kevin Mccarty On District Court Order To Expedite Appeal Process Of Allstate License Suspension Thursday, January 31, 2008 TALLAHASSEE, Fla. -- "While I am disappointed that the District Court did not decide to reinstate my office's suspension of Allstate, I am encouraged that the Court on its own motion has decided to expedite the appeal process. "I remain committed to getting answers to questions about Allstate’s business practices and relationships with rating agencies, catastrophe modeling companies and industry trade groups. "Although my office has not yet received all the documents requested from Allstate, I remain confident that everything in our subpoenas will be produced in a timely fashion and that we will continue to work together toward an amicable resolution of this matter. "All the documents requested in our October subpoenas were due at the Jan. 15 hearing, but I am encouraged that as a result of my suspension order Allstate within a week produced about 25,000 pages of documents. "I remain ever committed to Florida consumers to get to the bottom of this issue and to ensure that Allstate is held accountable to the law." Note: The DCA has expedited Allstate's appeal of the commissioner's Jan. 17 Immediate Final Order suspending the companies' licenses to write any new business in Florida and has directed that: the record be filed within 15 days the initial brief be filed within 10 days after that the answer brief is to be filed 10 days later, and the reply brief 5 days thereafter. The decision would be rendered at anytime after the reply brief is filed. The Court’s order is available for your review. http://www.1dca.org/allstate/order.pdf Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Private Medicare plans get lawmaker scrutiny Wed Jan 30, 2008 3:43pm EST By Kim Dixon WASHINGTON (Reuters) - U.S. taxpayers are subsidizing the explosive growth in a lucrative type of private health plan under Medicare, an independent advisor to the U.S. Congress told lawmakers on Wednesday. The plans, known as private fee-for-service plans (PFFS), are the fastest growing segment of private companies contracting with Medicare, the U.S. health insurance plan for the about 44 million elderly and disabled individuals. Offered by many major publicly traded health plans, PFFS plans enjoy a competitive advantage because they operate under looser federal rules, making them cheaper to run, experts told the Senate Finance Committee. In addition, the government program is paying them about 17 percent more than traditional Medicare, said Mark Miller, executive director of the Medicare Payment Advisory Commission, which advises Congress on Medicare financing. "These payment rates are subsidized by taxpayer dollars and that is why they are attractive" to private companies, he said. Under conventional Medicare, the government pays for care through a system letting patients choose doctors and hospitals. A 2003 law encouraged entry of more private plans in Medicare, in a program called Medicare Advantage, which includes managed care plans and the private-fee-for-service plans. Enrollment in all Medicare Advantage plans has grown to 9.2 million as of January 2008, from 7.6 million in December 2006. Among those, 1.7 million are now in the PFFS plans. Major health plans make billions in revenue from Medicare, about 31 percent of average company revenue, according to Carl McDonald, an analyst with Oppenheimer & Co. INTENT OF CONGRESS MedPac and other critics say the intent of these private plans in Medicare was to provide better care more efficiently, not to provide more care at a higher cost. The trade group for most private health plans, America's Health Insurance Plans, said the intent of Congress has changed over time and that lawmakers added extra payments for certain goals, including a floor payment to ensure they could operate in rural areas. "Members of Congress wanted to have choices all across the country," an AHIP spokeswoman said. The plans have also been accused of luring seniors in with low or even no premiums, only to overwhelm patients with higher costs for substantial items such as hospital co-payments. PFFS plans do not need to maintain networks of doctors like "managed care" plans do. "I'm disturbed that my constituents may have a hard time getting access to doctors," Senator Chuck Grassley, the ranking Republican on the Senate finance panel from Iowa. The issue could reemerge in several months when Congress takes up legislation to fix pay to doctors under Medicare. Lawmakers will need to find money to pay for such payments. President George W. Bush has vowed to veto any major legislation that cuts payments to any private Medicare plans, but analysts have said if any cuts are approved, the PFFS plans would be the most likely target. (Editing by Andre Grenon) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. S&P Sees More Than $265 Bln Subprime Losses Thu Jan 31, 2008 10:46am EST NEW YORK (Reuters) - Standard & Poor's on Wednesday said total losses for financial institutions from the unfolding mortgage market problems will eventually reach more than $265 billion. The rating agency's comment came after it said it cut or may cut its ratings on $270 billion worth of U.S. mortgage-backed securities and put $264 billion of collateralized debt obligations on watch for a possible downgrade. (Reporting by Anastasija Johnson; Editing by Jonathan Oatis) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Moody's boosts subprime loss estimate up to 85 pct Thu Jan 31, 2008 12:49pm EST NEW YORK (Reuters) - Credit rating company Moody's Investors Service on Thursday said it raised its assumptions for losses on loans backing subprime mortgages as much as 85 percent in response to deteriorating performance. Average losses for loans made in 2006 -- as underwriting standards were loosened more -- will likely fall between 12 percent and 24 percent, depending on variables such as house price depreciation and the impact of rising payments on adjustable-rate loans, Moody's said. Moody's projection for losses in 2006 subprime loans ranges between 14 percent and 18 percent, between the extremes. In October, Moody's projected losses would fall between 6.5 percent and 15 percent. "We see delinquencies still going up, not having reached a plateau," Moody's Chief Credit Officer Nicolas Weill said. "There are also more concerns by the Moody's economists on the potential for higher unemployment and recession" and home price declines, he added. The revised estimates will likely result in more negative ratings actions on 2006 subprime RMBS. (Reporting by Al Yoon and Richard Barley; Editing by James Dalgleish) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Marsh & McLennan names former ACE head CEO NEW YORK, Jan 30 (Reuters) - Marsh & McLennan Cos Inc (MMC.N: ) said on Wednesday it had named Brian Duperreault, previously CEO and chairman at Bermuda-based insurer ACE Ltd (ACE.N: ), its chief executive. Duperreault is succeeding Michael Cherkasky, who the insurance broker said last month was being replaced, effective immediately. Cherkasky's ouster followed a year of disappointing results. Duperreault, 60, was CEO at ACE, which Marsh & McLennan helped found in 1985, from 1994 to 2004. He also served as ACE's chairman of the board from 2004 to 2007. Marsh & McLennan shares are down 8.1 percent over the past year, outperforming the KBW Insurers index .KIX, which is down 11 percent over the same period. Despite the company's underperformance, the shares have been helped in recent weeks by speculation that all or part of it could be up for sale. Marsh & McLennan announced that it was evaluating strategies to boost shareholder value on the same day it announced that Cherkasky, who was named CEO in 2004 in the middle of a bid-rigging scandal, was being replaced. (Reporting by Christian Plumb; Editing by Mark Porter/Lisa Von Ahn) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. MBIA CEO decries "fear mongering" Thu Jan 31, 2008 1:05pm EST NEW YORK (Reuters) - MBIA Inc Chief Financial Officer C. Edward Chaplin said on Thursday he expects the bond insurer's business to be low in 2008, with international sales stronger than in the United States. Chaplin, speaking on a conference call, also said MBIA is boosting unallocated reserves to account for probable losses. He said he expected another "hefty addition" to capital in the first quarter, and that the company intends to capitalize its business to withstand the worst-case scenarios. Earlier in the day the world's largest bond insurer posted a record loss in its fourth quarter of $2.3 billion or $18.61 a share after writing down $3.5 billion and said it was looking at ways to shore up its capital. Chaplin said on the conference call that, even in this difficult environment, there continues to be demand for MBIA insured products. His company insured $700 million of bonds in the first three weeks of January. The MBIA CFO said rumors the holding company would be insolvent in the near term are "without merit," and cash on the balance sheet provides two years of coverage for the holding company's needs. Holding company assets and bank lines also provide substantial coverage for the holding company's cash needs, Chaplin said. Losses and boosts to reserves have slashed MBIA's net worth as a company as measured by its shareholder equity, to $3.65 billion as of the end of December from $7.2 billion a year earlier. The bond insurer is seeking to keep the top credit ratings necessary to win new business. Chaplin said ratings agency Standard & Poor's has indicated that its capital plan is sufficient for keeping its AAA rating. A traditional municipal bond insurer, MBIA began insuring repackaged subprime mortgages and other consumer debt in recent years. (Reporting by Ed Leefeldt and Murali Anantharaman; editing by John Wallace and Tim Dobbyn) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Las Vegas Hotel Fire: Similar Event Could Have Caused Insured Losses Of $75 Million Newark, Calif. – 31 January, 2008 – The fire that blazed through the top of the Monte Carlo Hotel in Las Vegas last Friday could have been far more damaging had it started elsewhere in the building and not been contained so quickly, according to expert analysis by Risk Management Solutions (RMS). This event is one of thousands of possible fire scenarios; examining the risk of a fire starting in a guest room rather than the roof in a hotel of similar size and layout to the Monte Carlo when fire sprinklers' effectiveness is impaired shows losses could have reached $75 million. “Our risk modeling reveals that an event of this loss magnitude has an annual return period of 600 years,” said Dr. Ajay Singhal, vice president at RMS. “The extent of fire losses heavily depends on the mitigation measures in place. Through detailed analysis, we can calculate the impact of suppression systems like sprinklers as well as fire department response and control times.” While the blaze was quickly controlled by the local fire department, the scene was reminiscent of the 1980 fire at the MGM Grand Hotel in Las Vegas, which was the second most deadly hotel fire in U.S. history. “Situations like this are a vivid reminder of the potential for low-probability, large-loss events within the realm of fire risk underwriting,” said Mark Rascio, product manager for the RMS fire model. “Popular tourist hotels are particularly susceptible to high business interruption costs caused by fire, as well as building and content losses.” RMS will shortly be launching its new Account Fire Model, which provides metrics for risk managers responsible for properties commonly underwritten by U.S. commercial insurers. www.rms.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Buffett Poised To Cash In On Bond Insurer Woes Thu Jan 31, 2008 5:59am EST NEW YORK (Reuters) - There's likely to be one sure winner when the dust settles from the turmoil in the bond insurance industry: Warren Buffett. Whether bond insurers get rescued as regulators seek possible new sources of capital for them, or suffer credit rating downgrades that threaten their business, or even their survival, Buffett's Berkshire Hathaway Inc (BRKa.N:)(BRKb.N:) should be well-positioned to cash in. Berkshire, which created Berkshire Hathaway Assurance Corp on December 28 to enter the bond insurance market, has the balance sheet, credit ratings and pedigree to gain a strong foothold and become a major force, experts said. Its entry comes amid expectations that MBIA Inc (MBI.N:) and Ambac Financial Group Inc (ABK.N:), and smaller rivals such as FGIC Corp and ACA Capital Holdings Inc ACAH.PK, are going to be severely weakened at best. In creating a bond insurer, Buffett is counting on issuers paying him higher fees for the security of having the backing of "triple-A" rated Berkshire and its $47.08 billion (23.63 billion pounds) cushion of cash. He has not shown any interest in bailing out an entire business, as he tried in 1991 when he took over Salomon Brothers after a scandal involving fictitious bids on U.S. Treasury sales. That is considered one of Buffett's worst investments. "Berkshire has stated an intent to do premium business at premium prices," said Janet Tavakoli, president of Tavakoli Structured Finance Inc in Chicago, who has worked in structured products since 1985 and owns Berkshire stock. "It has very good underwriting standards, likes to completely understand the risks of what it is underwriting and has the capital to back its insurance products." Berkshire did not immediately return a request for comment. GETTING CAUGHT Bond insurers, which guarantee some $2.5 trillion of bonds issued mainly by state and local governments, got caught after venturing beyond writing coverage for bonds typically used to finance hospitals, roads, schools and sewer systems. Instead, they chose to also underwrite a variety of structured products, including securities backed by risky subprime mortgages, whose value has plummeted. This jeopardized MBIA's and Ambac's triple-A ratings and left the insurers scrounging for capital to cover possible claims. Fitch Ratings withdrew FGIC's triple-A rating on Wednesday. By venturing into bond insurance on its own, Omaha, Nebraska-based Berkshire is not burdened by any known or undisclosed problems it could face if it bought a rival. And Berkshire, with more than 70 businesses, also offers issuers the security that monoline insurers cannot. Monolines are so named because their only business is to insure timely payments of interest and principal on bonds they insure. Regulators including New York's insurance commissioner are working with banks to explore ways to shore up the industry. Absent a fix, investors may unload hundreds of billions of dollars of bonds they no longer consider as safe as they thought, especially if the insurers' ability to provide coverage is questioned. Borrowing costs would also rise, straining municipal budgets and, ultimately, burdening taxpayers. BIG BERKSHIRE BETS Buffett does not have this worry. Ajit Jain, a Berkshire insurance executive considered a candidate to eventually replace 77-year-old Buffett, has been quoted as saying Berkshire might support existing insurers through reinsurance and capital. Jain was unavailable to comment. Berkshire has made some big bets on insurance before. In October 2006, its National Indemnity Co unit took on some $7 billion of liabilities of Equitas, which Lloyd's of London created a decade earlier to avoid collapse from claims tied mainly to asbestos. It was essentially a bet the worst is over for asbestos. Many companies stopped using asbestos for insulation and fireproofing by the mid-1970s, but the after-effects can take decades to surface. Berkshire was also able to charge higher rates to cover storm damage after many rivals retrenched following Hurricane Katrina in 2005. That was a good move in 2006 and 2007, both quiet years for big storms. Buffett has said Berkshire is willing to lose $6 billion from a single storm. And this month, Berkshire bought a 3 percent stake in Swiss Re (RUKN.VX:), now worth roughly $830 million, and agreed to take on 20 percent of its property and casualty reinsurance business for five years. Buffett told the Wall Street Journal last month that in venturing into bond insurance, "we will not take risk beyond what's prudent for us." Tavakoli said that probably means no structured products. "I've met Warren Buffett. I've spoken to him about structured products. He's astonishingly good," Tavakoli said. "I would be surprised if he were to touch the financial guarantors' structured products, given that the underwriting standards seemed so poor. Berkshire is clear that it is happy to do zero business when the risk premiums make no sense and that's something the guarantors didn't learn." © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. FACTBOX: What is a monoline bond insurer? Thu Jan 31, 2008 9:31am EST NEW YORK (Reuters) - The "AAA" ratings of monoline bond insurers are under threat, sparking fears that an estimated $2.5 trillion in debt insured by the companies is at risk of also being downgraded and potentially sold off. The following is a list of facts about what how a monoline's business operates. -Monolines are so named because they operate only one line of business, which is to insure the timely interest and principal payments on bonds. Monolines globally are estimated to insure $2.5 trillion in debt. -The companies rely on "AAA" ratings, the highest investment grade, for confidence in the quality of their guarantee. The "AAA" rating is transferred to the insured assets as part of the insurance wrap. -If a borrower fails to make payments the insurer will take over responsibility for the interest and principal payments. -Bond insurers' "AAA" ratings are under threat because ratings agencies view their capital adequacy as insufficient, based on revised loss forecasts on mortgage-backed debt from risky residential borrowers that is held in the companies' insurance portfolios. -Monolines only insure investment grade debt and the majority of that is U.S. municipal debt. -In the UK and Europe, monolines also wrap debt used to finance hospitals, roads, schools and other public projects, as well as whole business and future flow securitizations. -Monolines also insure the debt of corporations, sovereigns and mortgage and other asset-backed securities. This is usually done using credit derivatives in structures called collateralized debt obligations (CDOs). -Insurers are typically paid the full, non-refundable premiums for insuring municipal debt when the insurance is written. These premiums are then recognized on its balance sheet over the life of the policy, due to accounting principles. -Payments from structured finance deals such as CDOs is normally made in monthly or quarterly installments over the life of the insured obligation. -In CDOs, monolines insure payments on a portfolio of assets. CDOs insured by monolines typically have a cushion whereby the monoline is not required to pay claims until a certain percent of defaults in the CDO portfolio is reached. -Monolines hold the insurance contracts to maturity and are not subject to payments due to changes in market value of the securities they insure. They are, however, required to recognize the market value of insurance sold with credit derivatives when they report earnings. -Most monolines are not required to post collateral against their credit derivatives positions, even if they are downgraded or the securities they insure are downgraded. (Reporting by Karen Brettell; Editing by Theodore d'Afflisio) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. BUHRC Study Reveals Large Contribution Of Sea Surface Warming To Increased Atlantic Hurricane Activity New research improves understanding of how hurricane risk changes as the sea surface warms, allowing insurers and reinsurers to better manage their risks now and in the future LONDON, Thursday 31 January 2008 --- Atlantic hurricane activity has increased significantly since 1995 but the underlying causes of this increase remain uncertain. It is widely thought that rising Atlantic sea surface temperatures have had a role but the size of this contribution has remained unclear. Scientists at the Benfield UCL Hazard Research Centre (BUHRC) have quantified this contribution for the first time. In a study published today in the prestigious scientific journal Nature, Prof. Mark Saunders and Dr Adam Lea, who are based at the Department of Space and Climate Physics at University College London, reveal the current sensitivity of tropical Atlantic hurricane activity to sea surface warming is large, with a 0.5°C increase in sea surface temperature being associated with a ~40% increase in activity and frequency. They also found that local sea surface warming was responsible for about 40% of the increase in Atlantic hurricane activity (relative to the 1950-2000 average) between 1996 and 2005. The research focuses on storms that form in the tropical regions of the North Atlantic which account for 85-90% of the hurricanes that make landfall in the United States. Prof. Mark Saunders, Head of Weather & Climate Extremes at the Benfield UCL Hazard Research Centre and lead author of the study explained the methodology behind the research: “We used a statistical model based on two environmental variables – local sea surface temperature and an atmospheric wind field - which replicated 75-80% of the variance in tropical Atlantic hurricane activity between 1965 and 2005. By removing the influence of the winds from the model we were able to assess the contribution of sea surface temperature and found that it has a large effect.” Commenting on the broader implications of the study, Prof. Saunders added; “This research is important for helping to resolve the vexed issue of how climate change will impact hurricane frequency and activity. Our analysis does not attempt to identify whether greenhouse gas-induced warming contributed to the increase in water temperature. But it is important that climate models are able to reproduce the observed relationship between hurricane activity and sea surface temperature, so improving their reliability to model how hurricane activity will be affected by climate change.” Paul Budde, Executive Vice President and Head of the Product Development and Applied Research Team within Benfield ReMetrics in the US, commented: “Tropical Cyclones are the most frequent cause of the most severe losses in the insurance industry. Research like that of Saunders and Lea to quantify the relationship of specific environmental factors on hurricane activity, when combined with climate change models, will help the industry better understand what they might have to cope with in the future.” This is the second research paper by Prof. Saunders and Dr Lea to be published by Nature. A breakthrough computer model developed by the two scientists that significantly improved the prediction of the strength of hurricanes making landfall on the United States was the front cover paper of Nature in April 2005 (Saunders, M.A. and A.S. Lea, Seasonal prediction of hurricane activity reaching the coast of the United States, Nature, 434, 1005-1008, 2005). Early indications point to an active Atlantic hurricane season in 2008 with Atlantic basin and US landfalling tropical cyclone activity being 50% above the 1950-2007 norm (TSR extended range forecast 10th December 2007). www.benfieldgroup.com www.tropicalstormrisk.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Colonial Life Goes 'One On One' With ESPN College Basketball Sponsorship Shoots to Reinforce Recent Corporate Rebranding COLUMBIA, S.C., Jan. 31 /PRNewswire/ -- Colonial Life today announced a new partnership with ESPN that involves the sole sponsorship for the "One-on- One" match-up analysis to run during ABC's college basketball game of the week each Saturday for the remainder of the regular NCAA season. From January 26 through mid-March, Colonial Life will sponsor the in-game "One-on-One" feature, a match-up analysis of player and team statistics that gives viewers insight into which opponent has the edge. The campaign uses the in-game "one-on-one" feature along with advertising on ESPN, ESPN2 and ABC network television to reinforce the company's recent rebranding efforts. "ESPN, through ABC, was able to provide us with a custom sponsorship vignette that not only supports our brand benefit of 'one-to-one benefits counseling,' but also delivers our message in a way that will resonate with a large viewing audience of working Americans," explains Tom Gilligan, senior vice president of marketing and branding. "We want to use this campaign to further strengthen our position as the second largest provider of voluntary benefits at the workplace* and to bring attention to what makes us stand out from the competition -- our one-to-one style of benefits counseling for working Americans." To complement the "one-on-one" vignette, the 30-second creative focuses on the role of the Colonial Life benefits representative and showcases how important he or she is in the benefits counseling process. At the beginning of January, Colonial Life revealed a new corporate brand to better communicate who the company is and what it does. With a new brand name, redesigned logo, and tagline "Making benefits count," the company is more focused on its strengths in one-to-one benefits communication and enrollment services alongside its personal insurance coverages. The repositioned brand is the culmination of a year-long project involving research with employees, employers and insurance salespeople. It replaces the previous Colonial Supplemental Insurance brand name. About Colonial Life Colonial Life & Accident Insurance Company is a market leader in providing insurance benefits for employees and their families through their workplace, along with individual benefits education, advanced yet simple-to-use enrollment technology and quality personal service. Colonial Life offers disability, life and supplemental accident and health insurance policies in 49 states, the District of Columbia and Puerto Rico. Similar policies, if approved, are underwritten in New York by a Colonial Life affiliate, The Paul Revere Life Insurance Company. Colonial Life is based in Columbia, S.C., and is a subsidiary of Unum Group. For more information about Colonial Life's products and services or opportunities with the company, call (803) 798-7000 or visit http://www.coloniallife.com. * LIMRA Third Quarter 2007 Voluntary Sales ReportReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. INSURANCE NEWSLINK Articles 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. THE TIME EFFECTIVE WAY TO STAY AHEAD
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Nationwide’s Retirement Innovator Offers Fiduciary Protection and a Simpler Retirement Plan Option for Small Businesses COLUMBUS, Ohio--(BUSINESS WIRE)--Nationwide Financial Services, Inc. (NYSE: NFS) announced today a simpler retirement plan solution that provides documented fiduciary protection. Using its Nationwide Retirement Innovator® and a combination of investment options, businesses can find peace of mind in meeting their fiduciary responsibilities, according to experienced ERISA attorney Fred Reish. Fiduciary responsibility is an everyday reality for businesses that offer a retirement plan. The obligation of ultimately being responsible for a participant’s investment options within a company’s retirement plan weighs heavily on many plan sponsors, and in some cases, deters them from offering a retirement plan altogether. In partnership with ERISA expert Fred Reish and Stephanie Bennett, an attorney who specializes in employee benefits law, Nationwide has released a white paper titled, “Nationwide Retirement Innovator: Fiduciary Protection Under 404(c)” to help plan sponsors find comfort in offering a program that is appropriate for their employees. As explained by Fred Reish, “Nationwide Retirement Innovator offers a unique opportunity to plan sponsors. It helps reduce risk and the possibility of a fiduciary lawsuit against the plan sponsors, while at the same time improving the investment options and retirement preparation for their employees.” For a copy of Nationwide Retirement Innovator: Fiduciary Protection Under 404 (c), plan sponsors can call toll free 1-888-262-401k. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. MBIA Announces Closing and Funding of $500 Million Investment from Warburg Pincus David A. Coulter and Kewsong Lee Join Board of Directors; Richard Walker Resigns from Board to Avoid Potential Conflict of Interest ARMONK, N.Y.--(BUSINESS WIRE)--MBIA Inc. (NYSE: MBI) today announced the closing and funding of the sale of 16.1 million shares of its Common Stock at a price of $31 per share for the aggregate amount of $500 million pursuant to its Investment Agreement with Warburg Pincus. The stock sale is part of Warburg’s previously announced commitment to invest up to $1 billion in MBIA. In connection with its investment, Warburg has received 16.1 million warrants, as previously described. www.mbia.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. nTelagent’s Self-Pay Management System Offers Global Healthcare Providers Price Transparency and Package Pricing to Attract Medical Tourists NASHVILLE, Tenn.--(BUSINESS WIRE)--nTelagent, Inc. today reports that its proprietary front-end business solution, the Self-Pay Management System, offers a one-stop solution for healthcare providers in the United States and worldwide participating in the medical tourism market. nTelagent, a Nashville, Tenn.-based company, enables healthcare service providers to revolutionize the way they interact with self-pay patients regarding patient responsibilities pre-registration and at the point of service. “Self-pay” is the portion of the medical bill for which the patient is responsible. This includes co-pays and deductibles for patients with traditional health insurance and the full medical bill for uninsured patients or those paying out-of-pocket, such as medical tourists. Globalization is affecting the healthcare industry in a dramatic manner. Medical tourism, the rapidly growing practice of going to another country to obtain healthcare, is becoming a popular healthcare service delivery option, due to the cost savings and lure of exotic locations. For more information about the growing practice of medical tourism, download the White Paper “Using Self-Pay Management Systems to Manage and Promote the Growing Practice of Medical Tourism” at www.ntelagent.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. CNinsure Acquires Majority Interests in Two More Insurance Agencies GUANGZHOU, China, Jan. 31 /Xinhua-PRNewswire-FirstCall/ -- CNinsure Inc. (Nasdaq: CISG), a leading independent insurance agency and brokerage company operating in China, today announced the signing of definitive agreements to acquire majority interests in Changsha Lianyi Insurance Agency Co., Ltd. ("Lianyi") and Jiangmen Fanhua Zhicheng Insurance Agency Co., Ltd. ("Zhicheng"), in an efforts to further expand its distribution network in China. The transactions are expected to close in the first quarter of 2008. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. FEMA Code Violation on Fisher Island Potentially Threatens National Flood Insurance Participation for Miami Beach residents Workers testify about violations which risk their health and safety MIAMI BEACH, Fl., Jan. 31 /PRNewswire-USNewswire/ -- Fisher Island Workers and community activists will argue before the Board of Adjustment on Friday that building permits approved for Fisher Island's new condominium development, Palazzo del Sol are in violation of vital FEMA standards, and should not be approved. Despite being in violation of FEMA's standards and Miami Beach's own Floodplain Management Regulations for residential projects located in 'special flood hazard areas,' Fisher Island's new condominium development, Palazzo del Sol, recently received a building permit by the City of Miami Beach. Unchecked violations of Floodplain Management regulations could cause FEMA to put Miami Beach on probation and eventual suspension from the National Flood Insurance Program (NFIP) which currently provides a 15% discount on flood insurance premiums for property owners in Miami Beach. If the city fails to enforce its regulations, it could result in higher flood insurance rates for policy holders. In suspended cities where flood disasters occur, certain types of disaster assistance from the federal government are not available at all. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Aetna Research Identifies Four Keys to Success for Consumer-Directed Health Plans -- Five-year study of 1.6 million Aetna members proves that sustained savings are possible through appropriate mix of culture change, education and benefits design -- HARTFORD, Conn.--(BUSINESS WIRE)--Aetna (NYSE:AET) today released the results of a five-year study of health care claims and utilization for members of its Aetna HealthFund® consumer-directed plans. The study of 1.6 million Aetna members (205,000 in an Aetna HealthFund plan) identifies the four keys to success that help employers succeed in implementing a consumer-directed benefits strategy. They are: Fostering a culture of health care consumerism among all employees, beginning with senior executives Implementing a focused employee communication and education campaign Offering wellness programs and incentives for healthy behaviors, as well as 100 percent coverage for preventive care Carefully constructing a benefits package that includes appropriate levels of member responsibility To identify the keys to success, Aetna conducted an in-depth review of six employers who experienced extraordinary results with their Aetna HealthFund plans. In fact, these employers achieved annualized health care cost trends that were 50 percent lower than the Aetna HealthFund average, resulting in a combined employer and employee savings of $15 million per 10,000 employees enrolled in an Aetna plan over a four-year period. Common among these employers was a benefits strategy that embraced the four keys to success. “Aetna’s keys to consumer-directed success provide a road map for employers who want to control health care costs and engage employees in their health by offering a consumer-directed benefits strategy. We have thoroughly studied these members for five years and have developed keen insight into those aspects of the product that work and those that do not work well. This latest research simply validates what we’ve suspected all along – that while implementing these plans requires a commitment from both the employer and the employee the payoff is significant for those who embrace all the tools that influence health care consumerism,” said Aetna President Mark T. Bertolini. www.aetna.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Outfoxing the Foxes: MetLife Auto & Home® Offers Tips, Free Brochure To Help Avoid Being a Victim of Fraud WARWICK, R.I.--(BUSINESS WIRE)--The stories are everywhere—crooks staging phony car accidents; criminal rings trying to beat the system by making claims for exaggerated injuries; or unscrupulous individuals ‘stealing’ another person's identity to make illegal purchases or rack up huge credit card debts. All these stories can be summed up with one word: fraud. Everyone, insurance companies and consumers alike, pays the price for fraud. “It has long been held within the industry that about 10 percent of all property and casualty claim losses are due to fraud,” says Robert M. Bryant, president and chief executive officer of the National Insurance Crime Bureau (NICB). “Annually, that amounts to about 30 billion dollars in losses that are ultimately passed along to all consumers of insurance in the form of higher premiums.” Fortunately, there are things that can be done to prevent fraud from occurring, which, in the long run, can save consumers money. “One of the most important actions that you can take is to realize that ‘cheating just a little’ is part of the problem,” explains John Sargent, director of MetLife Auto & Home’s Special Investigations Unit. “People may not know that insurance companies pay over three billion dollars a year just for this type of ‘soft fraud.’ For example, some people who are involved in a property damage claim may think it’s okay to allow an auto body shop to ‘pad’ a claim by exaggerating the amount of the damage, to cover the deductible. However, when millions of people inflate their claim by $250 or $500, the cost is astronomical.” www.metlife.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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21. PIACT, PIANH, PIANJ and PIANY asks agents to “Think PIA first” for spring education Via seminars or online programs, insurance producers can find all the CE they need this spring GLENMONT, N.Y. —The Professional Insurance Agents of Connecticut, New Hampshire, New Jersey and New York State are offering insurance professionals an enormous variety of options for developing their professional skills while earning continuing education credits this spring. Although the four-state associations offer year-round CE sessions, a number of courses will be offered this spring. The associations are hosting a wide range of education programs developed by committees of insurance producers in their respective states. PIA’s education programs are offered through a variety of venues, including classroom seminars, self-study, online courses and teleconferences. Topics are geared toward the experienced agent—offering CE classes to fulfill requirements—as well as to new employees with the aptly named New Employee Orientation online courses. Highlights for the spring include PIACT’s Annual Convention, March 17-18, 2008, at Foxwoods Resort-Casino, Mashantucket, Conn. Insurance professionals can expect a convention chock full of networking opportunities, chances to earn Connecticut-specific continuing education credits, a bustling trade show and more. Go to www.pia.org, Quick-Link ED16779 for details. www.pia.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Compared Insurance Releases New Comparison Software RENO, Nev., Jan. 31 /PRNewswire/ -- Compared Insurance will release a new software program designed to evaluate commercial-insurance proposals in February. A patent pending industry-first insurance-comparison system, CompariSys recently underwent a series of successful beta-tests with insurance-industry thought leaders. Compared Insurance, a business-to-business company focused on simplifying the purchase of property and casualty insurance, will officially launch on February 1, 2008. Additional information about Compared Insurance and CompariSys is available on the Internet at http://www.comparedinsurance.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Aviva, Woori to Buy S.Korea Insurer for $145 Mln Thu Jan 31, 2008 3:02am EST SEOUL (Reuters) - British insurer Aviva Plc (AV.L:) and Woori Finance Holdings (053000.KS:) have agreed as a consortium to buy a South Korean insurance company for $145 million, giving Aviva an entry into an expanding Asian market. Aviva, which derives 8 percent of its total sales from Asia, is aiming to grow an average 20 percent annually in premium income in the Asia-Pacific region, while growth in its home and European markets has slowed. To achieve the goal, Aviva has recently begun a joint venture in Taiwan with First Financial (2892.TW:) and will expand into other markets through acquisitions or joint ventures, said Simon Machell, who leads Aviva's Asia Pacific operations. (Editing by Sei Chong) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Subject: Alarm systems could be ineffective after Feb. 18, 2008 Jewelers Mutual Insurance Company, Neenah, Wisconsin - At the stroke of midnight on Feb. 18, 2008, some alarm systems will be rendered useless due to a Federal Communications Commission (FCC) ruling that allows cellular phone companies to discontinue providing analog service. Be certain that yours is not one of them. To check, call your alarm service provider. Of the nearly 26 million alarm systems in use, the FCC estimates that one million may still use analog radio equipment, not the newer digital technology. Wireless systems installed before Spring 2006 generally rely on analog equipment. This can include popular cellular services, such as Honeywell's AlarmNet - C service, which uses analog technology scheduled for retirement. Most protection services companies have likely notified their customers, advising them to transition to digital. But if you missed the notices, waste no time in contacting your alarm system provider and your insurance agent for more information. To gain a better understanding of this ruling, visit <http://www.fcc.gov/cgb/consumerfacts/analogcellphone.pdf> or call 888-CALL-FCC. Note that this is a different FCC ruling than the one affecting the transition of analog to digital television that takes effect in February 2009. www.jewelersmutual.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Fortis Takes First Step in ABN Integration Thu Jan 31, 2008 8:01am EST AMSTERDAM (Reuters) - Dutch-Belgian financial services group Fortis (FOR.AS:)(FOR.BR:) said on Thursday it had recorded the first milestone in breaking up ABN AMRO with approval for the demerger of its asset management unit. The demerger of ABN AMRO Asset Management should be completed at the end of March, Fortis and ABN AMRO said, after the Dutch central bank granted permission. Dutch bank ABN AMRO was bought last year by a consortium led by Royal Bank of Scotland (RBS.L:) along with Spain's Santander (SAN.MC:) and Fortis for 70 billion euros ($104.1 billion). Under the deal, ABN's wholesale and investment banking unit and its Asian operations go to RBS, its Italian and Brazilian operations to Santander, while Fortis gets ABN's Dutch business as well as its wealth and asset management operations. (Reporting by Emma Thomasson; Editing by Jason Neely) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Aetna’s National Headquarters “Goes Red” for Women Supports the American Heart Association’s efforts to raise awareness of heart disease as the #1 killer of women across the country HARTFORD, Conn.--(BUSINESS WIRE)--Aetna (NYSE: AET) is making a highly visible show of its support for the annual American Heart Association’s Go Red For Women movement by lighting the cupola of its national headquarters red for the month of February. The company, headquartered at 151 Farmington Avenue, in Hartford, is also supporting Go Red For Women luncheon events in Connecticut, California and Michigan, and encouraging employees nationally to wear red on Friday, February 1, which is “National Wear Red Day.” www.aetna.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Baloise in merger talks with German insurer Gothaer Thu Jan 31, 2008 2:43am EST By Douwe Miedema ZURICH (Reuters) - Switzerland's Baloise (BALN.VX: ) said it was in merger talks with German mutual insurer Gothaer Versicherungsbank in a deal that would double its size and create a top-10 insurer in Germany. The deal, which the group was forced to announce after a press leak, would create an insurer with annual premium volume of around 9.1 billion euros ($13.48 billion). "The outcome of the negotiations is not clear. Both parties will provide information about the further steps in due course," Baloise said in a statement on Thursday, but gave no financial details. "There will be a joint company," a spokesman said. (Editing by Louise Ireland) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Aegon completes capital management transaction Thu Jan 31, 2008 2:33am AMSTERDAM, Jan 31 (Reuters) - Dutch insurer Aegon NV (AEGN.AS: )(AEG.N: ) said on Thursday it had completed a capital management transaction which would help it manage reserves and capital in a cost efficient manner. The transaction is a 30-year, minimum $1.5 billion financing transaction between Aegon and JPMorgan (JPM.N: ) Chase Bank N.A. and has an initial size of $300 million. Aegon said it would explore further opportunities for securitizations and capital market transactions as part of its ongoing commitment to efficiently and actively manage capital and reserve needs. (Reporting by Alexandra Hudson) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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