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1. Insurance Commissioner Poizner Announces $10 Million Settlement With Allianz For Allegedly Deceiving Seniors Into Purchasing Unsuitable Annuities Allianz agrees to implement first-of-its-kind suitability review to further safeguard seniors from aggressive and deceptive marketing OAKLAND, BURBANK ― Continuing his work as a leading advocate for California's seniors, Insurance Commissioner Steve Poizner today announced a $10,050,000 settlement with Allianz Life Insurance Company for allegedly targeting thousands of seniors in deceptive annuity sales. Allianz, the largest seller of annuities in California, purportedly deceived elderly victims into purchasing confusing annuity products that were financially unsuitable for their needs. In addition to the sizable monetary settlement, Commissioner Poizner announced that Allianz has agreed to implement a groundbreaking suitability review process to further protect seniors. "This landmark settlement ends years of aggressive and misleading marketing schemes targeted to our most elderly and vulnerable," said Commissioner Poizner. "The fact that Allianz used deceptive practices and high-pressure sales tactics to lure and cajole seniors into buying unsuitable policies is appalling. However, today's settlement represents a real sea change for the industry and is a tremendous victory for all California seniors. The new suitability review process Allianz has adopted through this agreement represents a new era in annuity sales, and should be the prototype for annuity insurers throughout the state. My department will continue to actively track down insurance companies, agents and brokers who refuse to play by the rules." An annuity is an insurance contract that is created when an individual gives a life insurance company money which may grow on a tax-deferred basis and then can be distributed back to the owner, either immediately or over a period of time. Commissioner Poizner negotiated today's settlement based on findings from a Department of Insurance (CDI) market conduct examination. The examination revealed that Allianz had deceptively replaced 126 existing annuities for seniors who were between 84 and 85 years old. CDI's analysis determined that more than 97% of the annuities that Allianz replaced for this age group from January 2004 through July 2005 were financially unsuitable. The market conduct examination also uncovered that Allianz had been selling new annuities to seniors that were clearly unsuitable for the needs of the customers by using misleading marketing information. The CDI exam showed that Allianz used deceptive marketing materials that advertised "immediate" and "up-front" bonuses for consumers who purchased annuities, when in fact consumers would not receive the "immediate" bonuses in the form of cash unless they held on to the annuity for five years and then received their money back in periodic payments for ten years or life. One victim was 85 years old when she was induced by Allianz to liquidate her existing annuities and pay a surrender charge of over $51,000. This victim did not understand the terms of the new annuity that was aggressively sold to her by an Allianz life agent. Another 85 year-old victim liquidated two existing annuities to purchase an Allianz policy and obtain the bonus represented to the senior as "immediate." After attempting to withdraw a large sum of money from his annuity, which an Allianz life agent told him was possible, this victim was informed that he would incur a sizeable surrender charge. Fortunately, after filing a complaint with CDI, this victim's money was returned to him. Had this victim not been deceived by a so-called "immediate" bonus and false representations that he could withdraw his money without penalty, he would not have liquidated his existing annuities. According to the terms of the settlement, Allianz will pay $3.3 million to CDI for monetary penalties, fees and costs. Allianz will pay $3.75 million over five years to the Life and Annuity Consumer Protection Fund, which provides funding to district attorneys and CDI to prosecute financial abuse by life agents. All of this $3.75 million will go to district attorneys. Allianz will also make $3 million in high impact investments qualifying under the California Organized Investment Network (COIN). COIN is a collaborative effort between CDI, the insurance industry, community affordable housing and economic development organizations, and community advocates that facilitates insurance industry investments that provide returns to investors and economic and social benefits to California's underserved urban and rural communities. As part of the settlement, Allianz has agreed to Commissioner Poizner's directive to implement a first-of-its-kind suitability review program for all potential senior customers. This program is the first of its kind in the California annuity sales industry, and an important step towards ensuring that seniors are not deceived into tying up their money in long term annuities when they cannot pay their living expenses, and are fully aware of the products they are purchasing. Allianz will also utilize more thorough mechanisms to ensure better senior protection. As part of this new program, Allianz must: Conduct an elevated review on all applications submitted from specified individuals 65 years and older Follow up by telephone with all applicants seventy-five years of age or older, and those living in assisted living facilities, to confirm their thorough understanding of the purchased product Amend annuity contracts to make them more understandable to consumers Clearly, plainly, and conspicuously disclose the terms of premium bonuses being offered Allow seniors impacted by Allianz's supposed unsuitable annuity sales, and named in the Order to Show Cause/Accusation and Notice of Hearing, to request the cancellation of their annuities On November 13, 2006, CDI formally accused Allianz of these allegations. Today's settlement resolves the major violations discovered by CDI, which are named in the formal accusation. (Order to show cause and settlement document attached below.) "Senior citizens have earned a place of honor and a special right to respect and recognition in our society," continued Commissioner Poizner. "California seniors have worked a lifetime to accumulate their assets and should take every precaution to protect them." Purchasing insurance and other financial products such as annuities that meet an individual's specific needs can be challenging. Since an individual's financial situation may change over time, it is important to review and understand any insurance policy or contract to decide if it is still appropriate. Commissioner Poizner offers the following tips to seniors who are considering purchasing a new or replacement annuity policy: Obtain all proposals in writing. Don't be pressured into buying any insurance product. Take enough time to review the information before making any decisions. Do not sign anything you do not understand. Consider having a trusted family member, friend or advisor participate in discussions concerning the purchase of any insurance product. Make sure the agent, broker and insurance company are properly licensed to sell the product you are considering purchasing. Make sure you receive a full disclosure of all information relating to the benefits and possible negative consequences regarding the replacement of an existing annuity. Obtain a full disclosure of all surrender charges and related time frames in connection with an annuity prior to purchase. For additional information about annuities, visit http://www.insurance.ca.gov/0100-consumers/0060-information-guides/0020-life/life-insurance.cfm. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. U.S. Split On "Socialized Medicine": Poll Thu Feb 14, 2008 1:48pm EST By Jason Szep BOSTON (Reuters) - Most Democrats say "socialized medicine" would be better than the current U.S. health care system, while most Republicans say it would be worse, a poll by the Harvard School of Public Health showed on Thursday. Highlighting philosophic divisions over a top issue in this year's U.S. presidential election, the poll showed most Americans expect the Democratic front-runners to pursue changes that would create a socialized medical system. The survey did not provide a definition of that term and one in three voters said they did not understand it. But more than 70 percent said they understood it to mean "the government makes sure everyone has health insurance". Nationwide, about 45 percent of respondents said they believed such a system would be better for the country, while 39 percent said it would be worse, according to the poll of 1,030 voters surveyed Feb 6-10. Both parties talk of reining in costs and expanding coverage to the nation's 47 million uninsured residents, but they are deeply divided about how to do it. About 70 percent of Republicans said socialized medicine would be worse than the current system, while the same percentage of Democrats said it would be better. Among independent voters, 43 percent say they believe socialized medicine would be better and 38 percent worse. The poll, conducted by Harris Interactive for Harvard, had a margin of error of plus or minus 3 percentage points. "These results suggest how polarizing the issue of health care will be in the general election," said Robert Blendon, professor of health policy and political analysis at the Harvard School of Public Health. Republican candidates and policy strategists often accuse Democrats of advocating "socialized medicine", depicting such plans as entangled in bureaucracy and synonymous with a so-called single-payer government health care system. The expression was used frequently by former Republican presidential candidate Mitt Romney to attack Democrat Hillary Clinton's plan for universal health insurance. CONSERVATIVES APPLAUDED During his campaign which ended earlier this month, Romney accused Democrats of pursuing "European-style socialized medicine", deriding it as "a government mandate" and inspired by "European bureaucracies." Those lines went down well with conservative audiences. In the poll, about 60 percent said the Medicare insurance program for seniors was a form of socialized medicine, and about 47 percent said the veterans health care system was socialized medicine. Democrats say Republicans use the phrase as a scare tactic while mischaracterizing their plans, which call for expanding government-run health care and boosting Medicaid for the poor. Republican plans typically focus on stimulating competition among insurance companies. The probable Republican nominee, Arizona Sen. John McCain, has proposed tax changes to make health care more accessible. Democratic candidate Barack Obama says Republicans make the mistake of calling all Democratic plans "socialized." "Those old categories don't work, and they're preventing us from solving the problems that the American people want us to solve," he said on Monday. (Editing by Alan Elsner) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Aetna Statement on New York Attorney General’s Announcement HARTFORD, Conn.--(BUSINESS WIRE)--Aetna (NYSE: AET) today issued the following statement in response to the announcement made by the office of New York State Attorney General Andrew Cuomo: “New York Attorney General Cuomo today announced his intention to file a lawsuit against UnitedHealth Group and its subsidiary Ingenix and plans to subpoena 16 health insurers – including Aetna – as part of an industry-wide investigation into certain provider-payment practices. Aetna intends to cooperate fully in this investigation. Aetna is committed to transparency so that consumers can make more informed decisions, and has been a leader in the industry in helping our members better understand the costs of physician and other provider services.” www.aetna.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. UBS Shocks Investors With Risky Debt Exposures Thu Feb 14, 2008 10:59am EST ZURICH (Reuters) - Swiss bank UBS shocked markets with tens of billions of dollars in new exposure to risky U.S. mortgages, leveraged finance and complex securities, dramatically raising its vulnerability to the credit crisis. The revelations, which included $26.6 billion in exposure to U.S. mortgages distinct from subprime loans, sent the bank's shares tumbling to levels not seen since 2004 as investors braced for even more writedowns. UBS stock has lost more than half its value since last June after it took $18.1 billion of writedowns in the second half of 2007 alone on subprime-related exposures. "They have $60-70 billion worth of exposure to troubled areas and the market did not know about much of it," said David Williams at Fox-Pitt, Kelton in London. Deutsche Bank estimated that UBS's total exposure to risky U.S. mortgages was $68.7 billion. (Additional reporting by Thomas Atkins and Douwe Miedema, editing by Will Waterman and Erica Billingham) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Bond Insurer Woes Could Become Market "Tsunami": Spitzer Thu Feb 14, 2008 8:27am EST WASHINGTON (Reuters) - The bond insurer problem must be fixed, or else it could become a "financial tsunami" that wreaks havoc on the broader economy, New York Governor Eliot Spitzer is due to tell the Congress Thursday. A copy of Spitzer's prepared testimony was obtained by Reuters on Wednesday. New York State Insurance Superintendent Eric Dinallo is working with banks on rescue plans for several bond insurers, which guarantee more than $2.4 trillion of debt and are expected to suffer big losses from insuring bonds linked to subprime mortgages and other risk assets. Those losses threaten the top credit ratings that insurers need to win new business. If insurers are downgraded by ratings agencies, investors that can only hold top-rated bonds may have to sell billions of dollars of securities, lifting borrowing costs for cities and consumers alike. About two-thirds of bond insurers' business is guaranteeing municipal debt, and one-third is insuring repackaged consumer debt. Higher borrowing costs and general credit market difficulties "could be a financial tsunami that causes substantial damage throughout our economy," Spitzer said in the testimony prepared for delivery to a House of Representatives Financial Services subcommittee at 11:30 a.m. EST on Thursday. Spitzer's comments echoed recent remarks from Deutsche Bank Chief Executive Josef Ackermann, who said that bond insurer downgrades could send shockwaves through financial markets. Regulators hope to help bond insurers keep their top credit ratings, but are also looking at protecting only the insurers' municipal bond insurance segments, Spitzer said. "We have been clear from the beginning that municipal investors cannot be allowed to suffer from problems caused by another sector of the market," he said. (Reporting by Patrick Rucker in Washington and Dan Wilchins in New York; Writing by Dan Wilchins; Editing by Tomasz Janowski and Dave Zimmerman) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. Sen. Schumer Says Mulling Bond Insurer Legislation WASHINGTON, Feb 14 (Reuters) - A senior member of the U.S. Senate Banking Committee said on Thursday he was considering legislation to establish some federal regulation of bond insurers who expand into nontraditional lines of business. "When these companies ... stepped into some new territory -- CDOs, mortgage bonds, et cetera -- (that) led to their problems, not necessarily the insuring of state and local risk," New York Democratic Sen. Charles Schumer said at a hearing with Federal Reserve Chairman Ben Bernanke and U.S. Treasury Secretary Henry Paulson. "This brings in a problem of systemic risk. So, I am considering introducing legislation that would regulate them when they do get involved in other types of activities -- at least have some kind of federal oversight greater than we have now," Schumer said. (Reporting by Tim Ahmann; Editing by James Dalgleish) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Annuity Rates Rise After Decade Of Decline Thu Feb 14, 2008 10:53am EST LONDON (Reuters) - Annuity rates have risen at their strongest rate in a decade but the outlook now is less certain, new figures show. Average annuity rates increased by more than 6 percent last year following a prolonged erosion of the buying power of pension pots, according to Investment Life and Pensions Moneyfacts. A typical male received an annuity rate of 622 pounds per 10,000 pounds of retirement savings in December 2007, up 6.32 percent on the year. The average female received 582 pounds per year in retirement income per 10,000 pounds, up 6.4 percent. The figures are based on an annuitant aged 60 buying a standard level without guarantee annuity. The upturn follows a decade of falling rates, which have dropped by 29.56 percent for men and 27.34 percent for women over the past 10 years. "The increase in annuity rates over 2007 gives a significant boost to a market that has suffered substantial reductions in rates amounting to 30 percent over the previous decade," said Suzanne Greener, deputy editor of Investment Life & Pensions Moneyfacts. Rates have, however, dropped over recent weeks and the outlook for those set to retire in the future is less certain, as inflation and recession threaten to hamper long-dated investments that drive annuities and the buying power of annuities already in payment. But with a boom in the number of enhanced or impaired life annuity products -- those which give higher rates to people who smoke or who are suffering from ill health -- on the cards, Greener urged retirees to search the market for the best deal. Everyone has the right to exercise what is known as the "open market option" -- the ability to buy an annuity from a company other than the one with which they had their pension. "It's vital that pensioners don't fall into the trap of assuming that their existing pension provider will offer them the best deal," she said. "What's more if the predicted boom in enhanced annuities is fulfilled, it will be essential for pensioners either to take time to find the best deal for themselves to suit their individual lifestyle and health circumstances or to take advantage of an adviser's expertise. "Less savvy annuitants could suffer badly, particularly if the withdrawal of impaired lives from the standard annuity pool leads to the conventional rates on offer taking a further dive." © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Sun Life Financial Launches Industry’s First Retro Disability Benefits Innovative Feature Provides Extra Financial Benefits for Serious LTD Claims WELLESLEY, MA (February 13, 2008) – The U.S. division of Sun Life Financial Inc. (NYSE:SLF, TSX:SLF) today introduced the group insurance industry’s first Retro Disability BenefitsSM, an innovative product feature that provides extra financial benefits for seriously ill or injured employees. Only the Sun Life Financial companies offer this benefit, which is now included in all new Sun Life Assurance Company of Canada group long term disability contracts Typically, LTD plans have an elimination period when benefits are not paid. Now, with Retro Disability Benefits, if an employee was continuously hospitalized for 14 days or more at the onset of Total Disability, and is approved for LTD benefits, Sun Life will retroactively pay that claimant his or her LTD benefits from the first day the claimant was deemed totally disabled. The Retro Disability Benefit is paid to the claimant as a lump sum, and there are no offsets for earnings, sick pay or other insurance benefits. http://www.sunlife-usa.com/group/. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. UAE Islamic Insurer IPO 43 Times Oversubscribed ABU DHABI, Feb 14 (Reuters) - Gulf Arab investors offered 3.6 billion dirhams ($980 million) towards the initial public offering of an Abu Dhabi-based Islamic insurer, 43 times more than the firm was seeking, the IPO adviser said. Mithaq Lil Takaful sold 82.5 million shares at 1 dirham each, equivalent to 55 percent of the company and valuing it at 150 million dirhams, Majd Maaitah, senior manager for securities services at National Bank of Abu Dhabi NBAD.AD, told Reuters. The nine-day sale closed on Feb. 4. The shares will list on the Abu Dhabi exchange at the end of March, Maaitah said on Thursday. "The response was very good," he said. Non-Gulf Arab citizens will be able to own as much as 25 percent of the shares once they list. It was the first IPO in the United Arab Emirates in 2008, in one of the worst months for local markets, which have been spooked by fears of recession in the United States, the world's largest economy. Four days before the sale started, Dubai's main stock index .DFMGI fell 6.21 percent, its biggest one-day loss since March 2006. Abu Dhabi's benchmark .ADI plunged 6.8 percent that day and Saudi Arabia 10 percent, both a record. Islamic insurance is a growth industry that is mirroring the expansion of Islamic finance. "There is a huge demand for Islamic insurance or takaful in this region, and the new company is aiming to get a share of the pie," Mithaq Chairman Abdulla Saeed al-Qubaisi told Reuters last month before the IPO. [ID:nL22714637] "The insurance business is growing at 15 to 20 percent annually, and is projected to double by 2010," Qubaisi said. In Islamic insurance, or takaful, risk and reward is spread equally between the customer and the insurer, unlike in conventional insurance, where the insurer takes on all risk and receives a premium. (Editing by Will Waterman) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Fitch Institutional Investor Survey: U.S. Credit Market Stability Unlikely Until Late 2008 NEW YORK--(BUSINESS WIRE)--Stability in the U.S. credit markets is not expected to return until third quarter-2008 or later, while stability in the housing market is likely even further off, according to the latest Fitch Ratings/Fixed Income Forum Survey of institutional investors. This survey is conducted by Fitch semi-annually in partnership with the Fixed Income Forum and received responses from 88 institutional investors. Viewed as most critical to restoring stability to the credit markets was 'confidence in financial disclosure of mark-to-market losses.' 'Investors are clearly concerned about financial firms exposure to the current downdraft in securities prices, and want clarity as to the market losses experienced to date,' said Managing Director James Batterman. Also viewed as important were 'home price stabilization' and 'further fed easing', while 'government driven remedies' were viewed as potentially harmful or simply not important. A weakening economy is viewed as the greatest risk to the credit markets among U.S. institutional investors. Other risk factors include 'housing market disruptions', failure of a financial institution or hedge fund, and geopolitical risk. The results are a significant reversal of investor sentiment since Fitch's June 2007 survey when shareholder-friendly activities were cited as the biggest threat, and the broader economy was not generally considered to be a large risk factor. Respondents were nearly unanimous (99%) in their belief that the risk of a U.S. recession is either moderate or high, while fully 100% of respondents expect the default rate to increase at least moderately in 2008, with about half of these expecting the rate to move significantly higher. This is an abrupt change from the 2007 mid-year survey, in which a very small minority expected to see a significant increase in defaults. 'Softening economic growth and the credit crunch are weighing heavily on the minds of investors and understandably so,' said Managing Director and head of Credit Market Research Mariarosa Verde. 'Investors realize that current gloomy conditions, especially if prolonged, will provide more than enough fuel for rising defaults.' Respondents voiced concern over the threat to credit markets from diminished liquidity. In a sharp reversal from prior surveys, respondents stressed a 'decline in banks and other investors' willingness to lend as the greatest risk currently posed to the leveraged loan market. 'The lack of investor demand in this market will make it hard for high risk borrowers to get fresh capital or refinance existing obligations in 2008,' said Senior Director William May. The full survey results are available on the Fitch Ratings' web site at www.fitchratings.com under 'Credit Market Research'. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Risk & Insurance Announces 2008 Power Broker Winners HORSHAM, Pa.--(BUSINESS WIRE)--Risk & Insurance® has published the 2008 Power Brokers™ Awards – an annual listing of the most influential commercial insurance brokers in 26 industry practice groups. A total of 151 individual brokers were named to this year’s list including brokers from the following companies: Marsh & McLennan Companies, Inc. (NYSE:MMC), Aon Corp. (NYSE:AOC), Arthur J. Gallagher & Co (NYSE:AJG), Integro, Willis Group (NYSE:WSH), Hilb Rogal & Hobbs Co. (NYSE:HRH). A complete listing of winners names can be viewed at http://www.riskandinsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. AIG Companies Announce Seminar Series on International Liability and Litigation Issues NEW YORK--(BUSINESS WIRE)--The AIG Companies® today announced a seminar series on international liability and litigation issues. The series, titled The Globalization of Liability: Managing Multinational Solutions, features some of the foremost international legal experts discussing today’s increasingly complex global regulatory and litigation landscape. http://www.aig.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Columbian Financial Group And Mutual Of Detroit Life Insurance Company Announce Plans To Combine Their Organizations. Mutual of Detroit Life Insurance Company -- based in Plymouth, MI -- and Columbian Financial Group -- based in Binghamton, NY -- today announced their planned combination. The combination of these two financially strong insurance organizations will create a new, even stronger and more vibrant organization. Assets will approach $1.2 billion and surplus will approach $100 million. The new organization will maintain operations in both cities. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. C.V. Starr & Company to Offer Management Liability Lines From Allied World Assurance Company SAN FRANCISCO, Feb. 12 /PRNewswire/ -- C.V. Starr & Company, a subsidiary of C. V. Starr & Co., Inc., and Allied World Assurance Company (U.S.) Inc. and Allied World National Assurance Company have entered into a program agreement whereby C.V. Starr & Company will begin offering management liability lines of insurance coverage on behalf of Allied World to commercial middle market risks including Not For Profit Organizations, Private Companies and Public Companies with market capitalizations of $500 million or less. C.V. Starr & Company will market and underwrite a broad portfolio of insurance products including Directors and Officers Insurance, Employment Practices Liability, Fiduciary Liability, Outside Directorship Liability, Fidelity and Crime Insurance as well as Kidnap, Ransom and Corporate Extortion Insurance. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. MBIA Completes $1 Billion Common Stock Offering; Increases Claims-Paying Resources by More Than $3 Billion Since Inception of Capital Strengthening Plan ARMONK, N.Y.--(BUSINESS WIRE)--MBIA Inc. (NYSE:MBI) today announced the closing of the sale of 94.6 million shares of its common stock at $12.15 per share for total net proceeds of approximately $1.1 billion, which includes 12.3 million shares issued in connection with the exercise by the underwriters’ option to purchase shares to cover over-allotments and raises the Company’s total shares outstanding to 236.2 million. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Standard Life Reinsurance Deal Lifts Profit, Shares Thu Feb 14, 2008 1:01pm EST LONDON (Reuters) - British insurer Standard Life (SL.L: ) has reinsured 6.7 billion pounds ($13.1 billion) of its annuity liabilities, it said on Thursday, reducing the financial risk posed by Britons living longer and boosting 2008 profit. Shares in the group, previously the UK insurer with the largest exposure to longevity risk, were up 1.9 percent at 211.25 pence at 1227 GMT, having earlier touched 216p. The deal with Canada Life International Re, a unit of Great-West Lifeco (GWO.TO: ), is the biggest of its kind in Britain to date and covers more than half Standard Life's total annuity liabilities of around 12 billion pounds. (Editing by Erica Billingham) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Commerce Group Shareholders Approve MAPFRE Merger WEBSTER, Mass.--(BUSINESS WIRE)--The Commerce Group, Inc. (NYSE: CGI) announced that Commerce shareholders voted at a special meeting today to approve the October 30, 2007 Agreement and Plan of Merger that provides for the acquisition of Commerce by MAPFRE S.A. The number of shares of Commerce common stock voting to approve the merger agreement represented 88% of the total number of shares entitled to vote and more than 97% of the shares actually voted. Completion of the merger remains subject to the receipt of approvals in Massachusetts, as well as California, New York and Ohio, and to the satisfaction of other standard conditions. At present, Commerce and MAPFRE expect the merger to occur late in the first quarter or early in the second quarter of 2008. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Phyhealth Concludes $1.5 Million Financing for Launch of Its Pilot Community-Based HMO MIAMI, Feb. 14 /PRNewswire-FirstCall/ -- Physicians Healthcare Management Group, Inc. (Phyhealth) (Pink Sheets: PHYH), a developer of health maintenance organizations (HMOs) in partnership with physicians, today announced the completion of a $1.5 million financing, which will enable Phyhealth to develop and launch its pilot HMO in 2008. The pilot will initially be owned and operated by Phyhealth and will serve as the model from which future HMOs will be launched in partnership with participating physician groups. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. General Star Announces Consolidation of Excess and Primary Units into New Casualty Division STAMFORD, Conn.--(BUSINESS WIRE)--General Star Management Company is pleased to announce the consolidation of its Excess and Primary Units into a new Casualty Division. The consolidation will allow General Star to serve its clients better – faster, smarter and more efficiently. “Clients will now work with a single underwriter and manager for both lines of business, ensuring faster decision making and ease of doing business,” says Joe Masjak, Senior Vice President of General Star. 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. Nationwide Announces Launch of The Up To Speed Challenge on ESPN.com Fantasy Experience Now Available to NASCAR Nationwide Series Fans COLUMBUS, Ohio--(BUSINESS WIRE)--Nationwide Insurance today announced the launch of The Up To Speed Challenge, a new, free on-line fantasy contest, on ESPN.com. The NASCAR Nationwide Series first-of-its kind, on-line fantasy contest offers fans a chance to win $100,000 and other great prizes throughout the season. In addition, the contest keeps fans in the driver’s seat for all the latest NASCAR Nationwide Series action. Fans can participate by logging onto ESPN.com and searching keyword “Nationwide Insurance.” www.nationwide.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. PIMCO Founder Bill Gross Gives $1 Million to UCLA Anderson School of Management LOS ANGELES--(BUSINESS WIRE)--UCLA Anderson School of Management Dean Judy Olian today announced that William H. Gross, PIMCO Founder and Co-Chief Investment Officer, has donated an unrestricted gift of $1 million to the school. Dean Olian will use these funds to support several areas vital to the school’s strategic plan, such as fostering global partnerships, recruiting and retaining top faculty and students, and enhancing the curriculum. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. GEICO is the #1 Largest United Way of Central Georgia Campaign, Pledging $701,763 to Strengthen Our Local Communities MACON, Ga.--(BUSINESS WIRE)--Today, United Way of Central Georgia recognized GEICO as the #1 largest contributor at a campaign celebration held at GEICO. GEICO and its associates delivered record-breaking contributions, pledging $701,763 during the 2007 United Way campaign to raise money to help those in need. www.geico.com www.unitedwaycg.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. DTCC Announces Largest Fee Reduction For Insurance Services In Its 10-Year History New York, February 7, 2008 - The Depository Trust & Clearing Corporation's Insurance Services business unit. has announced the largest fee reduction in its 10-year history and the second one in six months. This latest reduction, which was effective January 2, 2008, is projected to save customers $6 million in 2008 alone. The historic fee reduction eliminates all file fees associated with insurance products. These fees of $15 per file have been linked to the older core products, including Insurance Services' largest-volume service, Positions and Valuations (POV), along with Asset Pricing (AAP), Commissions (COM) Applications and Subsequent Premiums (APP/SUB) and Financial Activity Reporting (FAR). With the end of file fees, customers will pay only per transaction costs for the services. www.dtcc.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. National Health Partners Announces Sales and Marketing Agreement with Polish American Congress – Michigan Division HORSHAM, Pa.--(BUSINESS WIRE)--National Health Partners, Inc. (OTCBB:NHPR), a leading provider of unique discount healthcare membership programs, announced today that it has entered into a sales and marketing agreement with the Polish American Congress – Michigan Division (PAC MI), a leading not-for-profit corporation dedicated to raising the standard of life for Americans of Polish descent through enlightenment of their heritage, culture, religion, economics and society. PAC MI encompasses hundreds of the most active Polish American organizations, parishes, and individual members. PAC MI enhances Polish American-owned organizations and parishes by providing resources and services that aid in business development while contributing to the Polish American community. Under the agreement, PAC MI will be making the company’s CARExpress membership programs available to its constituent organizations and parishes. www.pacmi.org www.nationalhealthpartners.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. AgStar Financial Services Offers Customers MyTermSM, a New Online Life Insurance Product Speed and convenience make term life insurance simple for banking customers NEWARK, N.J.--(BUSINESS WIRE)--Prudential Financial, Inc. (NYSE:PRU) today announced an agreement between its Individual Life Insurance business and AgStar Financial Services to offer MyTermSM, a simplified issue term life insurance policy available through the Internet, to AgStar Financial Services customers. Through an online automated underwriting process that can be accessed from virtually anywhere, MyTermSM delivers a policy in about 10 minutes to qualified customers that can then be saved electronically or printed locally. www.prudential.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Fiserv Chosen by Leading Wealth Management Company for CheckFree FrontierTM BROOKFIELD, Wis.--(BUSINESS WIRE)--Fiserv, Inc. (NASDAQ:FISV), a leading provider of information technology services to the financial industry, today announced that Merrill Lynch has selected CheckFree Frontier 2.0TM as its strategic reconciliation platform. After an evaluation process, Merrill Lynch chose the Fiserv solution based on specific performance benchmarking results and demonstrations of its ability to further mitigate potential operational risk, minimize support costs and provide a seamless migration from Merrill Lynch’s existing platform. www.ml.com www.fiserv.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Big “I” Applauds House Committee For Reviewing Natural Disaster Legislation Florida agent testifies on need for national solution WASHINGTON, D.C., February 14, 2008— The Independent Insurance Agents & Brokers of America (the Big “I”), the nation’s largest insurance association, testified Monday before a hearing of the House Committee on Financial Services Subcommittee on Oversight and Investigation to discuss the homeowners' insurance crisis and its impact on communities, homeowners and the economy. Alex Soto, an independent agent and Immediate Past Chairman of the Board of IIABA, testified on the importance of natural disaster legislation. On behalf of the Big “I”, the only producer trade association testifying at the hearing, he thanked Reps. Ron Klein (D-Fla.) and Tim Mahoney (D-Fla.) for introducing the Homeowners' Defense Act, intended to address the growing problem of natural disaster risks. Soto expressed the association’s gratitude to the House of Representatives for passing the legislation. He also urged the Senate to give the legislation serious consideration, as the proposals could potentially be a part of a comprehensive solution for the problem of natural catastrophe insurance. He pointed out that the key to success for any solution is how the private market will react and whether changes will result in increased coverage. www.independentagent.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. The American College To Host An Incomparable Informational Webcast On Leadership And Ethics BRYN MAWR, PA - February 13, 2007 - At a time when the role of ethics at work is receiving increasing attention, The American College will convene a thought provoking webcast on the subject with several industry leading experts. “The Role of The Ethical Leader: How To Put Ethics Into Practice in Financial Services,” will be held on March 4, 2008 as the kick-off event in The College’s celebration of Ethics Awareness Month for the financial services industry. This webcast will provide participants with a unique opportunity to learn more about ethical leadership from four prominent industry leaders: Steve Anderson, Senior Executive Vice President and National Sales Manager of Waddell and Reed Inc., Jeff Bosco COO of the American Family Life Insurance Company and VP of Variable Products and Health, John Greene, CLU®, ChFC®, President of Agency Distribution for Prudential Financial’s Individual Life Insurance Division; and Scott Perry, President of Bankers Life and Casualty Company. Professor of Ethics at The American College notes that: “With the subprime issues looming over our economy, we find that this is just one of many areas where the financial services sector is asking profound questions regarding due diligence at all levels of an organization.” In today’s financial services arena, Stranger Owned Life Insurance is an example where ethical issues come into play. Promoters of this practice are placing policies on the lives of strangers, or people in whose lives they have no insurable interest. For example, if a customer purchases a $10 million insurance policy on their life, the insurance company promises to advance the premiums for two years at an interest rate of 12-15%, and takes a collateral assignment on the policy, paying nothing. At the end of two years, if the customer wants to continue the coverage, he or she pays the interest they owe, and repays the principal. The coverage can also be discontinued at the end of the two years with no hassle or liability. Although this sounds good in theory, the customer doesn’t have any control over who will actually own the contract on his life, and the return on their investment will vary inversely with the number of years he lives. That is only one present day example where ethics comes into play. By participating in the webcast, individuals will have an opportunity to learn about the challenges and rewards of being an ethical leader, hear leaders discuss pressing issues in the industry and get an insight into how to lead with integrity. For more information on how to register for the webcast please contact: Jamie Lynn Rij at Jamie.Rij@TheAmericanCollege.edu or call her at 610-526-1324 to get more information about registering for this event. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. ASCnet Announces 2008 Educational Program SuperSummits, Bootcamps, TENCon on Agenda ALTAMONTE SPRINGS, Fla. (Feb. 13, 2008)—The Applied Systems Client Network (ASCnet), the user group for Applied Systems agency management technology, has announced a power-packed educational program for 2008 that will include regional meetings and culminate with the 23rd Annual Technology, Education & Networking Conference (TENCon) in September. In addition to TENCon as its premier event, ASCnet will host a series of regional “education SuperSummits” throughout the year targeting various specialty areas of the Applied Systems software: TAM, Vision and DORIS. www.ascnet.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. Emerging Insurance Analytics Leader EagleEye Analytics Enters Services Agreement with Distinguished Programs Group, LLC COLUMBIA, S.C., Feb. 13 /PRNewswire/ -- EagleEye Analytics, an insurance solutions company that provides predictive analytics and data information services, has entered a long term services agreement with Distinguished Programs Group, LLC. Distinguished Programs Group will use EagleEye's Insight, a web-based predictive analytics solution that uses advanced technologies to identify insurance risk characteristics that relate to profitability. Insight enables insurers to implement improved underwriting, pricing, and marketing strategies that result in lower loss ratios and higher net gains from operations. www.distinguished.com www.eeanalytics.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. Your Wealthy Clients: Know Them, Grow Them, Keep Them Focus on Wealth©, a new quantitative client satisfaction research product helps financial services firms identify hidden risks & opportunities in their high net worth client base PHILADELPHIA - Feb. 13, 2008 -- The Melior Group, a full-service marketing research and consulting firm with a 25-year track record working for top financial services companies, announces the launch of Focus on Wealth©, a quantitative client satisfaction research package. The turnkey program was created to give firms insights into the often undisclosed perspectives and expectations of their high net worth clients. Drawn from Melior’s database of more than 12,000 responses to similar questions since 2000, Focus on Wealth© also includes a benchmarking feature that allows companies to compare their results against their competitors, helping them determine areas of risk and opportunity. www.meliorgroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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