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Copyright © 2008. Cost Containment Group. 1. U.S. Debt Protection Costs Surge On Selling Rumors Fri Feb 8, 2008 11:12am NEW YORK (Reuters) - U.S. credit protection costs surged on Friday, with benchmark indexes hitting new records, on what analysts said was rumors of liquidations of some structured credit vehicles that have amassed large losses. The U.S. investment-grade credit derivative index widened 2.5 basis points to 127.44 basis points, according to Markit Intraday. It earlier hit a record of 133 basis points, according to data from Phoenix Partners. European credit derivatives also weakened, with the main European investment grade index widening 5 basis points to 94.95 basis points, according to Markit. "Several rumors persist," Time Backshall, chief derivatives strategist at Credit Derivatives Research LLC said in a note on Friday. These include a large constant proportion debt obligation (CPDO) being liquidated, a bank unwinding a large trading book and a European insurer liquidating a large volume of credit default swaps, he said. During the calm credit markets prior to the middle of 2007, structured deals including CPDOs and collateralized debt obligations (CDOs) boomed and spreads narrowed to record tight levels. LOSSES Many CPDOs have hit triggers that require them to be liquidated after losing as much as 70 percent of investor money due to widening in financial default swaps backing the structures. The deals sell protection on investment-grade corporate credit derivative indexes or baskets of financial credits with up to 15 times leverage. CDOs are portfolios of credit default swaps that are divided into pieces of varying leverage and returns. "Investors in some structured products, such as mezzanine (CDO) tranches and CPDOs, have suffered significant mark-to-market losses over the past nine months," JPMorgan analyst Eric Beinstein said in a report sent on Friday. A typical "A"-rated tranche of a CDO with a seven-year maturity that was sold at 75 basis points last year has now widened to 525 basis points, Beinstein said. This spread equates to a price of $70, meaning the deal has lost 30 percent of its market value, he said. In spite of these losses, many CDO investors are likely to hold the investment until its maturity, and are not required to liquidate the deals, Beinstein said. "Nevertheless, across the large amount of volume in these products, there is likely to be some unwinding of transactions which should keep a bid for credit default swap protection," he added. (Reporting by Dena Aubin and Karen Brettell; Editing by Tom Hals) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Aon Integrates All Worldwide Risk And Insurance Brokerage Operations Into One Global, Client-Focused Business - Reinforcing our commitment to exceptional client service and delivery - Strengthening leadership talent of the firm - Continued focus on performance and momentum for the benefit of shareholders CHICAGO, Feb. 7 /PRNewswire-FirstCall/ -- Reinforcing its commitment to client service excellence, Aon Corporation (NYSE: AOC) today announced the firm is integrating its worldwide risk and insurance brokerage operations into a single global business, Aon Risk Services, with more than 26,000 colleagues in 120 countries and more than $5 billion in revenues. "Everything we do is based on helping clients, or helping colleagues help our clients," said Greg Case, Aon Corporation president and chief executive officer. "This is a significant and logical next step in aligning our incredible resources and talent around our clients, and follows on the success of our other core global businesses -- Aon Re Global and Aon Consulting. To the full credit of Aon colleagues around the world, our progress to date has enabled us to make this strategic move one year sooner than we anticipated." http://www.aon.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. American Equity settles lawsuit with Minnesota Attorney General Feb 7 (Reuters) - American Equity Investment Life Holding Co (AEL.N: ) said it settled the lawsuit brought against it by Minnesota's Attorney General over sales of deferred annuity products to residents of the state. American Equity said the settlement includes a claims process for past sales of certain annuity products in which a senior consumer was either misinformed or received a product not suitable for his or her needs. Under the terms of the settlement, American Equity has not admitted any liability or acknowledged the validity of any claims that were asserted in the action by the Attorney General, the company said in a statement. The suit was brought against American Equity's primary operating unit, American Equity Investment Life Insurance Co, in April 2007. (Reporting by Esha Dey in Bangalore; Editing by Himani Sarkar) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. HCC Insurance Settles Class Action Lawsuit Feb 8 (Reuters) - HCC Insurance Holdings Inc (HCC.N: ) said it settled a class action lawsuit related to its historic stock-option granting practices. The terms of the settlement, which do not include any admission of liability or wrongdoing by the company, provides for a release of all claims and payment of $10 million into a settlement fund, the specialty insurance company said. The $10 million will be paid by HCC's directors' and officers' liability insurers, and will not have a material effect on the company's results. (Reporting by Esha Dey in Bangalore; Editing by Himani Sarkar) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Bracewell & Giuliani LLP Prevails In Texas Supreme Court On Major Insurance Policy Case, Frank’s Casing HOUSTON--(BUSINESS WIRE)--Warren W. Harris, who leads the appellate practice of Bracewell & Giuliani LLP, successfully defended Frank’s Casing Crew & Rental Tools Inc. in one of Texas’ most significant insurance cases in the last several decades. On Feb. 1, 2008, the Texas Supreme Court withdrew its landmark 2005 7-0 ruling in Excess Underwriters at Lloyd’s, London, et al. v. Frank’s Casing Crew & Rental Tools Inc. and held that unless an insurance policyholder’s contract provides the insurer with the right to reimbursement of settlement proceeds following a coverage dispute, then the insurer cannot unilaterally create such a right. The Court’s 5-3 ruling affirmed the case’s 2002 ruling by the Fourteenth Court of Appeals in Houston. In the closely-watched appeal, the Supreme Court relied on Texas Association of Counties County Government Risk Management Pool v. Matagorda County, a 2000 decision that ruled that an insurer can seek reimbursement only if it obtains clear consent from the policyholder. “For the Court to reconsider their original opinion and reverse a 7-0 ruling is virtually unheard of,” said Mr. Harris, who sought the Frank’s Casing rehearing on behalf of his client in January 2006. “It’s certainly been a long-awaited decision in the bar and is a significant victory. We are thrilled that the Court reaffirmed Texas law on this issue.” www.bgllp.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. Coalition To Protect Senior Care: Bush Budget Plan Dangerous To Seniors' Front Line Care Needs In New Letter, Direct Care Workers Urge Senators Baucus And Grassley To Stop Bush Medicare Cuts JOPLIN, Mo., Feb. 7 /PRNewswire-USNewswire/ -- In response to the Bush Administration's budget plan cutting U.S. seniors' Medicare-financed nursing home care by $17 billion over five years, the Coalition to Protect Senior Care (CPSC) today called the proposal "dangerous to seniors' front line care needs," and announced at a news briefing that they will launch a new effort to stop the funding reductions, similar to the campaign waged last fall when the Coalition successfully opposed efforts to cut Medicare Part A nursing home benefits. The CPSC also released a new letter, delivered today to Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Charles Grassley (R-IA), urging them to fight the cuts. "From the standpoint of our oldest, most vulnerable seniors and the direct care workers who serve them, the Bush Administration has put forward a budget proposal that is dangerous to every aspect of front line care giving," stated Lisa Cantrell, a co-founder of the National Association of Health Care Assistants, and a national spokesperson for the Coalition to Protect Senior Care. "As we successfully opposed previous efforts to cut our patients' Medicare-financed nursing home benefits, we will fight any attempt by the Bush Administration to slash the vital resources necessary to ensuring our oldest, sickest residents continue to receive the quality care they absolutely require." The proposed five year $17 billion Medicare cuts, described by Administration officials as designed to improve efficiency and productivity, are especially curious, Cantrell said in the Coalition's letter to Baucus and Grassley, given that the Centers for Medicare & Medicaid Services (CMS) specifically stated just months ago that nursing homes must receive an inflationary update to promote "program efficiency, quality and sustainability." http://www.coalitiontoprotectseniorcare.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. National Business Group On Health To Hold Press Conference To Announce Partnership To Eliminate Racial And Ethnic Health Disparities WASHINGTON, Feb. 7 /PRNewswire/ -- The National Business Group on Health (NBGH) and the Office of Minority Health (OMH) will hold a press conference on Monday, Feb. 11, 2008 at 1:30 p.m. EST to announce a new initiative to help employers address racial and ethnic health disparities and improve the quality of health care for a culturally diverse workforce. The partnership's mission is to bring business, medicine, and public health together to develop guidance and strategies for large employers to better manage issues related to racial and ethnic disparities in health care. The press conference will take place at the National Press Club in Washington, DC in the Zenger Room starting a 1:30 p.m. Out-of-town media can access the press conference via a listen-only telephone number at 1-800-919- 0625. http://www.businessgrouphealth.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Quanta Announces Entering Into Agreement For Sale Of Its Lloyd’s Interests HAMILTON, Bermuda--(BUSINESS WIRE)--Quanta Capital Holdings Ltd. (NASDAQ: QNTA) announced today that it has entered into an agreement for the sale of all of its interests at Lloyd’s to Chaucer Holdings PLC. The Company expects to close this transaction in the very near future. Quanta’s interests at Lloyd’s include its 15% interest in Pembroke JV Ltd. and 100% of Quanta 4000 Ltd., its corporate member which is a member of Syndicate 4000. Upon closing, Quanta subsidiary Quanta 4000 Holding Company Ltd. will receive the return of approximately $116.0 million on deposit with the Society at Lloyd’s, known as “Funds at Lloyd’s”. These funds are not distributable to Quanta Capital Holdings Ltd. without approval of the Bermuda Monetary Authority. Following the sale, the Company will no longer have an underwriting segment and will consist solely of run-off operations. James J. Ritchie, the Company’s Chairman, commented “Last year, we announced the formation of Pembroke as a means of stabilizing Quanta's underwriting operations in Lloyd’s, thereby preserving the value of our investment in Syndicate 4000. The success of that initiative is apparent in today's announcement; upon closing, we will have successfully secured the earlier-than-expected release of our Funds at Lloyd’s and completed the sale of our interests at a respectable premium above net asset value. We wish Chaucer and the Pembroke management team success in continuing to grow the value of these operations.” Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Experts Offer Global Benefits Strategies At Symposium CLEVELAND, Feb. 7 /PRNewswire/ -- Cleveland-based risk consulting and insurance brokerage firm Oswald Companies announced today that it will host employee benefits experts from around the globe at its "International Benefits Symposium." The February 26 seminar is part of the Oswald Seminar Series. The keynote speaker is Dr. Robert C. Karch, the Founder and Executive Director of the National Center for Health and Fitness and the International Institute for Health Promotion at American University in Washington, DC. Dr. Karch is a visionary and leader in the field of Global Health Management who will offer expert insight into how global benefits programs can aid companies with international growth strategies. Fees for attending the seminar are $100 per participant or $175 per company; however, the seminar is free of charge to clients of Oswald Companies. How: Please register online at: http://www.oswaldservices.com/seminar Contact Sarah LoPresti with questions about registration or payment at slopresti@oswaldcompanies.com, 216-658-8542 http://www.oswaldcompanies.com http://www.assurexglobal.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. MBIA Prices And Increases Its Equity Offering To $1 Billion ARMONK, N.Y.--(BUSINESS WIRE)--MBIA Inc. (NYSE:MBI) today announced that it has priced its public offering of 82,304,527 shares of common stock at $12.15 per share and has granted the underwriters a 30-day option to purchase up to an additional 12,345,679 shares of common stock to cover over-allotments, if any. Warburg Pincus has informed the Company that it is purchasing $300 million in common stock as part of the offering. The Company does not intend to use the Warburg Pincus backstop, and Warburg Pincus has notified the Company that it does not intend to exercise its right to purchase $300 million in convertible participating preferred stock. The Company intends to contribute most of the net proceeds of the offering to the surplus of its subsidiary, MBIA Insurance Corporation, to support its business plan. www.mbia.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. ACE Limited Announces Pricing Of $300 Million Senior Note Offering By Subsidiary HAMILTON, Bermuda--(BUSINESS WIRE)--ACE Limited (NYSE:ACE) announced today that its subsidiary, ACE INA Holdings Inc., has agreed to sell $300 million of 5.8% Senior Notes due March 15, 2018. The notes are fully and unconditionally guaranteed by ACE Limited. The net proceeds from the sale of the senior notes will be used to pay a portion of the purchase price for ACE’s acquisition of Combined Insurance Company of America. The acquisition is expected to close in the first half of 2008. www.acelimited.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. General Star Announces New Admitted Advantage Physicians And Surgeons Program In California And Nevada STAMFORD, Conn.--(BUSINESS WIRE)--General Star Management Company is pleased to announce the introduction of its admitted General Star Advantage Physicians and Surgeons Program into California and Nevada. The General Star Advantage program is currently available in Illinois and Ohio (for anesthesiologists only). Expansion into additional states is planned. Coverage under the Advantage Program in each of the aforementioned states is provided on an admitted basis through General Star National Insurance Company, which is domiciled in Connecticut and rated A++ by A.M. Best and AAA by Standard & Poor’s. For more information on this program, please contact Adam Yasan at 312 267 8531, or e-mail adam.yasan@generalstar.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. 36 Year Old Teacher Charged On Alleged Workers' Compensation Fraud CITY OF VISALIA, Calif., Feb. 7 /PRNewswire/ -- Stephanie Grantham, 36, of Visalia, was charged with one count of felony workers' compensation fraud and sentenced to 90 days in jail for falsifying medical disability slips in order to receive temporary disability benefits. The case, prosecuted by the County of Tulare's Deputy District Attorney, was jointly investigated by the District Attorney Inspectors, Personnel Office of Porterville Unified District and Keenan & Associates, the largest privately held insurance broker and consulting firm in the state. Investigators allege that Grantham, who was an employee of Porterville Unified School District at the time of the original work injury, was falsifying medical documents in order to extend her workers' compensation benefits. The District was alerted to the discrepancies in the medical documents and was diligent in reporting to Keenan & Associates, who then filed with the County of Tulare's District Attorney's Office. Grantham appeared in court on January 28, 2008 along with her attorney, and agreed to reimburse the District for the period of temporary disability received in question. In dispute remains the issue of reimbursement to the District for other expenses. http://www.keenan.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. First Of Its Kind Disaster Resistant Home In The Northwest Completed In Seattle BELLEVUE, Wash., Feb. 7 /PRNewswire/ -- If you live in the Northwest, you know it's just a matter of time until the earth shakes again. The recently completed NextGen "First to the Future" Home located in Seattle, Washington, is the first home built in the Northwest to receive the Fortified...for safer living(R) designation of the Institute for Business & Home Safety (IBHS), an independent research organization supported by more than 200 insurance companies. "It's not a question of if we will be hit with another earthquake in the Seattle area; it's a question of when," said Paul Barnett, producer of the NextGen Home Experience. "We are pleased to have the opportunity to showcase the first Fortified...for safer living(R) Home in the Northwest". http://www.nextgenhome.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Old National Bancorp And Ronald A. Katz Technology Licensing, L.P. Settle Patent Lawsuit And Enter Into License Agreement LOS ANGELES--(BUSINESS WIRE)--Old National Bancorp, the largest financial services holding company headquartered in Indiana, (NYSE:ONB) and Ronald A. Katz Technology Licensing, L.P., headquartered in Los Angeles, announced today the settlement of patent litigation between the parties. As part of the settlement, Old National Bancorp has agreed to pay an undisclosed sum for a nonexclusive license under a comprehensive portfolio of patents that Katz owns relating to interactive voice applications. The nonexclusive license covers services offered by Old National Bancorp in the “Financial Services Call Processing” Field of Use, including customer service delivered through automated systems and live agents. Other terms of the license were not disclosed. www.oldnational.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. New Sun Life Financial Survey Reveals Pre-Retirees Estimate Spending Up To $600,000 On Desired Activities During Retirement Retirees Not Reducing Expenses Despite Higher Than Expected Costs WELLESLEY, MA (February 8, 2008) – A new survey released today by the U.S. division of Sun Life Financial Inc. (NYSE:SLF, TSX:SLF) reveals that while today’s retirees are experiencing higher than anticipated expenses, they do not plan on reducing spending on desired activities. Not including normal living expenses, respondents in their 50s, 60s and 70s expect to spend up to $600,000 on additional activities, such as travel, a second home or luxury items, during retirement. The Sun Life survey, entitled The Expense Reality, examines lifestyles, spending patterns and attitudes of both pre- and current retirees in four age groups: mid-to-late 50s, 60s, 70s and 80s. As an extension of Sun Life’s prior research brief, The Retirement Spending Boom, The Expense Reality concludes that pre- and current retirees expect to be heavily engaged in activities in early retirement, with subsequent activities and expenses varying by age. Leisure Activities Dominate Spending With the exception of the 80-somethings, respondents believe an active retirement will come with a high price tag. Those planning to participate in all of the activities listed in the survey estimate spending approximately $600,000 on such activities over the course of retirement. To illustrate, respondents in their 60s estimate the following spending on desired activities: • Domestic Travel $60,000 • International Travel $62,000 • Hobbies $15,000 • Charitable Donations $84,000 • Luxury Item (i.e. car) $59,000 • Home Improvements $69,000 • Second Home $245,000 • New Business $17,000 • Total Expected Spending $611,000 Expected spending on the same activities for respondents in their 50s totaled $578,000 and respondents in their 70s totaled $652,000. Financial Lessons for Pre-Retirees According to the research, many respondents were surprised by higher than anticipated expenses in retirement, which is a trend that increases as years pass. Overall retirement expenses were higher than predicted for 36% of 60-69 year olds, 52% of 70-79 year olds and 66% of 80-89 year olds who responded. However, when asked if they had to do it over again, retirees said they would not do anything differently except start saving earlier and/or put more money aside. “Our research shows most boomers and current retirees know what opportunities they want to explore and what obligations are likely to arise, but do not have a realistic idea of the associated costs,” said Mary Fay, Senior Vice President and General Manager, Annuities, Sun Life Assurance Company of Canada (U.S.). “No one can predict precisely how much income they will need at any given stage in life, which is why retirement income solutions that are flexible and protect against unpredictable and unavoidable factors are so valuable.” More Financial Obligations Results from the research also point to financial concerns among pre- and current retirees over potential healthcare-related costs. • More than half of all respondents noted that health insurance or out-of-pocket prescription drug costs are the primary financial obligations beyond living expenses in retirement. • 72% of 50-59 year olds say they are concerned about the escalating costs of healthcare insurance they may face in retirement. • 75% of 80-89 year olds are currently addressing, or plan to address, financial obligations related to out-of-pocket drug prescription expenses. • While respondents in their 80s are spending significantly less than younger retirees on activities, 66% noted overall expenses were higher than expected – a likely result of increased costs related to healthcare. “The old rule of thumb that suggests retirees will need 80% of their pre-retirement income no longer holds true for current and future generations,” said David Byrnes, EVP, Director of Sales for Sun Life Financial Distributors, Inc. “There will be phases when more income is needed and times when expenses are low. As The Expense Reality shows, retirement income strategies must be established early and designed to fit the lifestyles of today’s retirees.” The full research reports entitled, The Expense Reality, and The Retirement Spending Boom are available directly from the U.S. division of Sun Life Financial at http://www.sunlife-usa.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Insurance Commissioner Poizner Announces Alleged Fraud Scheme Stopped By CDI Investigators LOS ANGELES - Insurance Commissioner Steve Poizner today announced that due to the hard work of California Department of Insurance (CDI) investigators, an alleged fraud perpetrator has been arraigned for committing insurance fraud. "I refuse to tolerate insurance scams in California," said Commissioner Poizner. "My teams of investigators will continue their hard work to catch fraud perpetrators and help bring them to justice." Dr. Jon Fields, 53, of West Hills, filed a long term disability claim with his insurance carrier, UnumProvident Corporation, for an alleged injury he suffered in 2001. According to insurance company records, Fields claimed that is injury prohibited him from continuing his work as a chiropractor from September 2001 until May, 2005. During this time period, UnumProvident paid Fields more than $298,000 in benefits. The CDI investigation revealed that Fields allegedly continued treating patients while collecting benefits. On December 12, 2007, Fields surrendered himself to CDI investigators, and subsequently was booked on multiple counts of insurance fraud and one count of grand theft. Fields was arraigned on January 7, 2008, and his next court appearance is scheduled for April 10, 2008. If convicted, Fields could be sentenced up to five years in state prison, a fine of up to $50,000, and court-ordered restitution to UnumProvident. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Insurance Commissioner Poizner Announces Sentencing Of Scam Artist For Stealing Nearly $300,000 From Elderly Couple SACRAMENTO ? Insurance Commissioner Steve Poizner today announced the sentencing of a former insurance agent who defrauded an elderly couple of nearly $300,000. “It is unfathomable that an individual would swindle an elderly couple out of their life savings,” said Commissioner Poizner. “I am outraged that scam artists have no qualms about hurting our most vulnerable citizens, and I simply will not stand for it. My teams of investigators continue to hunt down fraud perpetrators, and when we find them, we’ll put them in jail where they belong.” On January 16, 2008, Gary Michael Jenkins, 59, of El Cajon, was sentenced on felony charges of theft from an elderly couple. Jenkins was sentenced to serve a two-year prison term and pay $291,576 in restitution to the victims’ estate, in addition to $5,000 in fines. In an investigation in which the California Department of Insurance (CDI) assisted the El Cajon Police Department and the San Diego County District Attorney’s Office, it was determined that between June 1, 1994 and August 31, 2002, Jenkins became the trustee of his elderly client’s estate. As an agent selling life insurance products, Jenkins manipulated a bond he formed with his clients to become trustee of their estate, and to steal nearly $300,000 without the victims’ knowledge or consent. Additionally, Jenkins created false documents to imply that the money he withdrew from the trust was invested legitimately. A family member of the victims discovered the theft on or about September 16, 2004, and reported the crime to the El Cajon Police Department. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. IIABNY Reveals Top Carriers In Agency Survey Member agencies weigh in on responsiveness of underwriters, company relationships, profit sharing and other topics (DeWitt, New York, Feb. 7, 2008) — A study commissioned by the Independent Insurance Agents & Brokers of New York, Inc. discovered that regional and super regional carriers perform best among member agencies surveyed. In addition, the not-for-profit trade association’s Industry Index: The IIABNY Members’ Report on Carrier Performance found New York Central Mutual scored highest overall by more than 260 respondents. Peerless Insurance, National Grange Mutual Insurance Company, Selective Insurance Goup and Dryden Mutual Insurance Company’s composite scores, respectively, rounded out the top five in this industry index survey. Syracuse-based Vincent McCabe conducted the report during November 2007 through January 2008. New York Central Mutual ranked above the average score in all six categories measured. No national carrier ranked in the top five overall among the 28 insurers ranked. Posted at www.iiabny.org is an executive summary of the study. Click on the survey’s icon, which is located on the left side of the homepage. 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. Examining The Value Chain Approach To Health Care Reform: A Conference Summary On April 24-25, 2007, the Federal Reserve Bank of Chicago and the Detroit Regional Chamber sponsored a two-day forum examining a “value chain” perspective of health care delivery in the U.S. Program participants discussed how a value chain evaluation might lead to improvement in health care quality, reduction in costs, and increased user accessibility. The authors of this Chicago Fed Letter are Sam Kahan, senior economist, and William A. Testa, vice president and director of regional programs. For the complete text of the Chicago Fed Letter, please see the following: http://www.chicagofed.org/economic_research_and_data/chicago_fed_letter.cfm Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. AIA Says Washington Auto Glass Repair Bill Prevents Consumer Choice 2007 Law Should be Given Time to Work Olympia, WA, February 7, 2008 - Legislation recently approved by the Washington House of Representatives is unnecessary and limits consumer choice, says the American Insurance Association (AIA). “Policymakers just enacted a law in 2007, SB 5052, that guarantees the right of policyholders to select an auto glass repair or replacement facility,” said Steve Suchil, AIA assistant vice president, state affairs. “The 2007 law requires insurers to verbally inform consumers of their right to select the facility. Insurers must also disclose any relationships they have with a facility. These strong consumer protections should be given time to work.” www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Hungary's OTP Expects Deal On Insurance Unit By Mon BUDAPEST, Feb 8 (Reuters) - Hungary's OTP OTPB.BU said on Friday that it expected to reach agreement on the sale of its insurance unit OTP Garancia by Monday and will make an announcement about it at 0900 GMT on Monday. "On Monday at 1000 (local time) we will hold a press conference, there is no agreement yet but I trust that by then we will have an agreement," OTP's chairman and chief executive Sandor Csanyi told reporters. Csanyi declined to provide any further details. (Reporting by Balazs Koranyi) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Penn Mutual Selects Insurance Technologies To Help Drive Variable Annuities’ Sales COLORADO SPRINGS, CO (February 07, 2008) – Insurance Technologies LLC, the premier provider of illustration and point-of-sale software for the financial services and brokerage industries, announces that Penn Mutual has selected ForeSight™ to support their sales force and drive new variable annuity business. This robust system will provide web-based illustrations for annuities with living benefit riders. www.insurancetechnologies.com www.pennmutual.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. EU's McCreevy urges change in U.S. insurer market Thu Feb 7, 2008 11:53am EST By Huw Jones BRUSSELS, Feb 7 (Reuters) - U.S. insurers may need to change how they set aside capital to cover risk on their books if they want to compete in the European Union with rivals from the bloc, a top regulator said on Thursday. EU Internal Market Commissioner Charlie McCreevy signalled his frustration over a U.S. insistence that European reinsurers must put down huge sums in guarantees to do business there. European reinsurers including Munich Re (MUVGn.DE: ) and Hannover Re (HNRGn.DE: ) say they already set aside reserves to cover such liabilities back home. EU efforts to change the U.S. requirement have made little progress after years of lobbying. "I want to reiterate my view that the collateral requirement, as imposed by the U.S. is not justified," McCreevy said in a speech. "We have been urging the U.S. to reform these rules but progress has been slow," McCreevy said. "If real progress is not made soon, this could have a negative impact on U.S. insurers and reinsurers as they will only receive the full benefits under the new EU Solvency II directive if they are subject to an equivalent solvency regime." EU states and the European Parliament aim to adopt Solvency II by year-end. It is a set of rules that will allow large insurers in particular to use their money more efficiently when tying up capital to cover risks. Non-EU insurers with offshoots in the 27-nation bloc, such as American AIG (AIG.N: ), will have to show their system for covering risk is comparable to Solvency II or face being excluded, industry experts said. "To what extent is the European Commission going to recognise the American capital requirements regime as being equivalent to Solvency II? He is playing on that," one expert at an insurance industry association said. McCreevy said there was also little chance of the Solvency II regime being extended to pension funds. "A very strong business case would be required before we start shifting Solvency II rules to pension funds, and frankly, I would be surprised if there is such a case," McCreevy said. "I have no intention of sponsoring proposals that would risk closing down defined-benefit pension schemes," he added. Insurers want to extend Solvency II capital requirements to pension funds, saying such funds also invest heavily in shares like insurers do and should play by the same rules. (Editing by Dale Hudson) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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