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Copyright © 2008. Cost Containment Group. 1. Health Care for America Would Save Billions Lewin Analysis Shows Immediate Savings, Rein on Costs More Choices, Guaranteed Access, No Need to Resort to Health Savings Accounts, Inadequate Vouchers EPI Plan Creates National Health Insurance Pool Modeled on Medicare; Employers, Individuals, Government All Would Participate in Shared Effort WASHINGTON--(BUSINESS WIRE)--A health care plan that combines the best elements of the current employer-based system and the Medicare model would create big savings, offer more choices and guarantee affordable coverage to all U.S. residents, according to a new cost and coverage analysis of the plan by the Lewin Group, a nationally respected nonpartisan consulting firm. Health Care for America, developed for the Economic Policy Institute (EPI) by Yale political scientist Jacob S. Hacker, would achieve these goals and maximize consumers’ health care choices without unraveling existing health security, forcing individual to obtain coverage on their own, pressuring patients into health savings accounts or using inadequate vouchers. Lewin estimates the proposal would cover 99.6 percent of all Americans without raising total national health spending. It would also save hundreds of billions over time – more than $1 trillion over the next 10 years – in national health spending, according to Lewin. “By mobilizing strength in numbers to bargain for better health care and lower costs, with responsibility shared by employers, individuals and the government, this plan is a fundamental change from current Bush administration and Republican party policies, which essentially tell Americans that they’re on their own,” said EPI President Lawrence Mishel. ”What these results show is that by building on the best elements of Medicare and employment-based health insurance, Health Care for America can provide every American good affordable, guaranteed coverage for no more than we're spending for health care today – and with the promise of big savings and quality improvements down the road,” Hacker said. Health Care for America, a centerpiece of EPI’s Agenda for Shared Prosperity, has become a template for the health care proposals offered by leading Democratic candidates for president, built on a foundation of a large national insurance pool and an employer mandate. The comprehensive cost-out just completed by the Lewin Group, whose work is considered the gold standard in the industry, shows in detail how the plan would reduce spending, enabling the United States to save money while still extending health care coverage to everyone. Health Care for America calls for employers, individuals and the federal government to share responsibility for providing affordable, high-quality health insurance: Employers would provide their private insurance that is at least as good as what the Health Care for America plan offers, or would be required to pay a contribution of 6 percent of payroll to a new national insurance pool to cover their workers. Workers who do not receive private insurance coverage would be responsible for paying small premiums to the pool, with maximum rates capped at $70 a month for single coverage, $130 a month for a single parent, $140 for a couple and $200 for families. Non-workers would be required to enroll in the program if they do not receive insurance from other sources, and pay an actuarially fair premium, with generous subsidies for lower-income enrollees. Out-of-pocket costs would be limited. The federal government would administer Health Care for America as it currently administers Medicare, offering people a choice between a public insurance plan and a range of private insurance plans. Health Care for America would offer generous benefits, beyond services available under Medicare, covering mental, maternal and child health, as well as a prescription drug plan in which Health Care for America would negotiate lower price – all this with lower cost sharing and limits on patient out-of-pocket expenses. “This plan would provide affordable and quality health care to all Americans while saving money for businesses and individuals who now are struggling with the rising costs of health care,” said Mishel. “It would also include generous premium subsidies for low-income workers and give small businesses a less expensive option to provide coverage.” Workers in households earning below 200 percent of the poverty level (roughly $32,000 for a three-person household) who do not receive coverage from their employers would not be charged a premium. Partial subsidies would continue up to 300 percent of the poverty level. No one would be forced to pay more for pre-existing conditions and no one could be excluded from coverage. For non-workers, subsidies would make premiums totally free up to 100 percent of the poverty level, and would continue up to 400 percent of the poverty level. New federal spending of $49 billion would be needed to implement the plan, but total national health spending would decline immediately, as households, employers and state and local governments all would see large health cost savings. Lewin estimates annual savings for employers at $5 billion, $23 billion for households, and $21 billion for states. “Unlike the stale ideas of tax credits and health savings accounts that the ‘You’re On Your Own’ advocates always push, Health Care for America builds on the strengths we already have in place through Medicare and our employer-provided system to expand coverage,” Mishel said. “The plan leverages the power of numbers in a broad national pool that allows us to reduce costs and expand coverage to virtually everyone in America.” The 38 million Medicaid and State Children’s Health Insurance Program enrollees would be folded into the new insurance pool, with current levels of coverage guaranteed. Lewin estimates that, of the 260 million Americans not enrolled in Medicare, half would be in the new Health Care for America program and the other half would continue to be covered by private employer-based coverage. Contacts Economic Policy Institute (EPI) Scott Treibitz, 703-276-2772 x11 Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Blunt Praises President's Plan to Save Medicare Time to Stop Wasting Precious Medicare Dollars on Trial Lawyers and Focus on Needy Seniors WASHINGTON, Feb. 15 /PRNewswire-USNewswire/ -- House Republican Whip Roy Blunt (Mo.) today praised President Bush's proposal that would put Medicare on a track of economic stability. "It is clear that without substantial reforms, Medicare will not be able to meet the basic needs of tomorrow's seniors. The legislation put forth by the president is the needed first-step to help give this program a solid economic footing. "Medicare is on an unsustainable path. If we allow it to continue on autopilot, Medicare will be bankrupt in 11 years endangering health care for millions of senior citizens," Blunt said. "The legislative proposal, submitted to Congress today by the president, would lay the foundation to correct this troubling reality." The proposal submitted by the President would: -- Reform the nation's medical liability laws in order to put patients' interests before those of trial lawyers; -- Focus the Medicare prescription drug program on low-income seniors by limiting the amount of taxpayer funded benefits for seniors with incomes of more that $80,000, saving Medicare an estimated $3 billion over five years; and -- Allow the Department of Health and Human Services to introduce value-driven competition into Medicare and create incentives for high-quality, low-cost health care options. Under federal law, this year the Congress is required to consider either the proposal submitted by the President or other proposals that reform Medicare. "Last year Congressional Democrats put forward a bill to cut Medicare Advantage, cut Medicare benefits for home healthcare workers, oxygen, skilled nursing facilities, dialysis, and wheelchairs. It is my hope that this year Democrats will abandon those proposals and instead join us in reforming Medicare by introducing market reforms that it put low-income seniors first. The President's proposal does just that," Blunt said. President Bush submitted his legislative proposal because Title VIII of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (P.L. 108-173) requires the president to submit to Congress a legislative proposal to reduce Medicare spending if the Medicare Trustees issue a funding warning. For the first time ever, the Medicare Trustees issued a funding warning in 2007 when, for the second time in two years, nearly half of Medicare spending is estimated to come from general revenues within the next seven years. Congressional leadership from each party is required to introduce the President's proposal within three legislative days. The appropriate committees of jurisdiction are then required to report legislation to respond to the Medicare funding warning by June 30, 2008.Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. BestWeek: Real Estate Turmoil Begins to Impact on E&O Coverage OLDWICK, N.J.--(BUSINESS WIRE)--It’s a pretty old story, as insurance stories go. Trouble roils the real estate market, and property values plummet. Pretty soon, lawsuits start to fall, and underwriters start to raise policy restrictions, and possibly even premiums, for professional liability coverage for the real estate industry, according to a story in the February 18 BestWeek U.S./Canada. “Underwriters are reactionary,” said Michael Klaschka, a principal at broker Integro Insurance Brokers, about the potential impact on errors and omissions coverage in real estate. Alexandra S. Glickman, the California-based managing director and practice leader for broker Arthur J. Gallagher’s worldwide real estate operations, agreed. “The professional lines are 99.99% litigation-sensitive,” Glickman said. “So what happens to one company or entity, if they start to see a trend, the insurers generally do what they can do to mitigate or at least contain their exposure. Unfortunately, insurance sometimes is a knee-jerk-response industry.” A California lawsuit is adding a new twist that may leave a lot of insurance industry knees twitching. A married couple in San Diego County sued their real estate agent and his agency because, they maintained, they paid too much for their home. That suit, filed in July of 2006, is still working its way through the California courts. But if it succeeds, industry officials said it could have a significant impact on professional liability coverage. “If they win, then everybody and their mother will look at the decreasing values of the homes that they bought in the last 18 months and will be saying, ‘Clearly, I have been the victim of some great conspiracy,’ and they’re going to start suing,” said Glickman. “Then what happens is the cost of E&O goes up and the defense costs go up, and you have yet another cottage industry and lawyers are suing because someone has to be responsible. I’ve been doing this for 25 years, and it just blows my mind when I see things like this.” In BestWeek Europe: The 2008 Beijing Olympics in August will offer another unique test for the world’s events insurers, as it presents coverage problems that are well known to Olympics insurers, along with others that are unique to China. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. More Advanced Cancer Seen In Uninsured Americans WASHINGTON, Feb 18 (Reuters) - Uninsured Americans and those in a government health program for the poor are far more likely to have advanced diseases when diagnosed with cancer than those with private coverage, researchers said on Sunday. A major factor seems to be that many of these people are not getting routine screenings for various types of cancer that could detect the disease in its early stages when it is most treatable and least deadly, according to the researchers. Led by Dr. Michael Halpern of the American Cancer Society, the team examined data on 3.7 million Americans diagnosed with 12 common types of cancer between 1998 and 2004. The uninsured were 2.1 times as likely and those covered by Medicaid 80 percent more likely to have advanced-stage cancer at the time of their first cancer diagnoses compared with those with private health insurance. The study published in the medical journal Lancet Oncology also showed blacks and to a lesser extent Hispanics, regardless of insurance status, were more likely than whites to have advanced cancer when first diagnosed. The government estimates there are 47 million people without health insurance in a country of about 300 million people. Health care is a prominent issue in the U.S. presidential campaign. "We consistently found across a wide variety of cancers that uninsured individuals and those covered by Medicaid were more likely to be diagnosed with advanced disease," Halpern said in a telephone interview. "And this was especially true for the cancers that could be diagnosed early by screening, like colorectal cancer, or have symptoms early in disease like bladder cancer," Halpern added. The increased risk for later-stage diagnosis also was seen in diseases such as breast and lung cancer as well as the skin cancer melanoma. Many cancers respond well to treatment when caught in their earliest stages, before cancer cells have spread from one part of the body to other parts. More advanced cancer is much harder to treat and much more likely to kill. The nationwide findings confirmed similar results of more limited studies looking at particular regions of the country dating from the 1990s. The data used in the new study came from a database containing information on about three-quarters of people diagnosed with cancer in the United States. Medicaid is a state-federal program that helps pay for health care for low-income people, the disabled and some others. Individual states determine who is eligible and what services are covered. Regarding racial and ethnic disparities, Halpern said explanations may include problems in patient-doctor communication and health literacy, as well as less trust of the medical care system among blacks and Hispanics. (Editing by Peter Cooney) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Aetna CEO Sees Rolls Rising from Rivals' Ranks Mon Feb 18, 2008 1:01am EST FORT LAUDERDALE, Fla. (Reuters) - The chief executive of Aetna Inc (AET.N: ) said on Friday the No. 3 U.S. health insurer expected most of the 800,000 to 850,000 members it will add this year to come from rivals. "Most of it will come from taking share," Ron Williams said in an interview. "A big part of what we expect to do in the first quarter will come from our national accounts -- large, Fortune 100 types of businesses -- supported by growth in our middle market and in our government and individual insurance segments." Aetna, which at year-end had about 16.9 million people in its healthcare plans, was benefiting from a trend among businesses to reduce the number of health-insurance providers available to employees, Williams said. "When that happens we are often a net winner because of the strategy that we have pursued of really focusing on quality and cost ...," Williams said on the sidelines of a meeting of the Business Council group of corporate leaders. Williams, whose company last week reported quarterly profit 3 percent higher than a year earlier, said Aetna was not feeling much drag from a slowdown in the U.S. economy. "We are watching it very carefully. But, so far, it has not manifested itself in reduced enrollments in any way," he said. "We don't see any effects of a recession." Low unemployment rates were a factor, he said. "We are tied much more to the employment levels. And, while there have been reports of modest job reductions, across our 17 million members this would be a fairly small percentage. We have gained market share at the same time," he said. (Editing by Dave Zimmerman) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. AIG's Stock Drop Might Just Be Temporary: Barron's Sun Feb 17, 2008 4:59pm NEW YORK (Reuters) - American International Group Inc's (AIG.N: ) recent share drop may only be temporary, and the insurance company's long-term prospects may not have been too badly hurt, Barron's reported in its latest issue. The business weekly said that despite last week's announcement by AIG, the world's largest insurer, that derivatives losses could reach nearly $5 billion, Wall Street share target estimates remain at fairly elevated levels. AIG shares closed at $46.11 on Friday, after falling to $44.21 on Tuesday, its lowest level in 5 years. "AIG's stock could be under pressure for a while because of temporary factors like the current subprime mortgage crisis and frayed investor perceptions, but its global franchise hasn't been tarnished and the company retains a diversity and scale difficult to replicate," Barron's quoted UBS insurance analyst Andrew Kligerman as saying in its latest edition. The weekly noted that Kligerman's 12-month share target was $67, while Bernstein Research, Citigroup and Fox Pitt Kelton Conchran have targets of $79, $69.50 and $83 respectively. "AIG certainly appears to be screaming value at its current trading level of around 45," said Barron's. This puts the stock at around 1.1 times the third-quarter book value per share. It reported that Merrill Lynch's Jay Cohen figures that even with the announced write-downs, its book value will still be at $46.87 by the end of 2008. Last week, AIG said the size of any write-down was not expected to be material to the company. "In other words, an accounting change isn't the same as actual losses," said Barron's. "Investors will likely be rattled by the earnings-shredding mark-to-market hits that AIG is likely to suffer over the next quarter or two. "But if the charges are mere temporary accounting events, as we suspect, long-term investors will have little to worry about -- and perhaps much to celebrate." (Editing by Jeffrey Benkoe) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Brown Fights Backlash Over Northern Rock Mon Feb 18, 2008 10:14am EST LONDON/NEWCASTLE (Reuters) - British Prime Minister Gordon Brown defended his reputation for sound economic management on Monday in the face of mounting criticism over his decision to nationalize ailing bank Northern Rock. Brown, who helped transform the Labour Party in the 1990s by ditching an attachment to state ownership, has been accused of dithering in a five-month crisis in which the government lent around 25 billion pounds ($49 billion) to keep Northern Rock afloat, while it cast around for private bidders. "We did the right thing, at the right time for the right reasons," Brown told a news conference. "We have contained the problems. It has not spread across to the rest of the economy." The government, which rejected two private sector-led bids for the bank this weekend, announced legislation allowing it to take over Britain's fifth-largest mortgage bank. (Additional reporting by David Clarke, Steve Slater and Clara Ferreira-Marques; Editing by David Holmes) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Many More Job Cuts Ahead for Wall St Banks Mon Feb 18, 2008 1:02am EST NEW YORK (Reuters) - Wall Street investment banks, stung by debt losses, have cut tens of thousands of jobs, but even more significant cuts are coming in the months ahead amid a bleaker earnings outlook. Some of the securities industry's biggest profit drivers -- mortgages, junk bonds and leveraged buyouts -- have been stopped in their tracks by the credit crunch. Investment banks in recent months have absorbed $150 billion in mortgage and corporate loan losses and face new pressures to slash spending. Analysts and corporate headhunters say banks have been chipping around the edges, but as the outlook for business grows dimmer, more layoffs will be announced. "There's more job cuts to come in the next two quarters. It's not over yet," said Michael Karp, chief executive of Wall Street recruiting firm Options Group. Firms humbled by a difficult 2007 face more write-downs and lower banking fees this year. Brokerage analysts expect the more difficult environment will lead to lower revenue, putting pressure on firms to reduce costs -- especially compensation. U.S. financial services firms eliminated more than 52,500 jobs in the second half of last year, a New York City official said this week, based on a quarterly study. By comparison, firms slashed about 90,000 U.S. jobs, or 11 percent of total employment, in the two years after the tech stock bubble burst in 2000, Securities Industry and Financial Markets Association data show. By August last year, U.S. securities industry employment rose to a record high of about 850,000, said SIFMA, which doesn't track Wall Street's substantial and growing headcount in Europe, Asia and other markets. Boston Consulting Group's Achim Schwetlick estimates firms might reduce headcount by 5 to 7 percent. "It's going to be a tough year on Wall Street," said Jeanne Branthover, head of the financial services practice at Boyden Global Executive Search. "The firms are strategizing over what businesses will make money and where they can cut." HOLDING OFF BIG CUTS Wall Street for more than four years was on a tear, expanding businesses and extending its reach into new markets as firms generated record profits. Banks added nearly 100,000 U.S. jobs in that period, SIFMA data show. But the environment soured last year. Investors turned up their noses at buyout loans as part of a flight from risk with roots in the subprime crisis. Mortgages and related securities plunged in value amid the worst housing market in 25 years. Goldman Sachs Group Inc (GS.N: ), Lehman Brothers Holdings Inc (LEH.N: ), Merrill Lynch & Co Inc (MER.N: ), Bear Stearns Cos Inc (BSC.N: ) and Morgan Stanley (MS.N: ) have been cutting staff since June, though the pink slips have been on the rise since late Janu © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Credit Suisse CEO Sees Credit Crisis Nadir In Months Sat Feb 16, 2008 11:29am EST GENEVA (Reuters) - The worst of the banking crisis resulting from the subprime meltdown is likely to be over in months rather than quarters, Credit Suisse (CSGN.VX: ) Chief Executive Brady Dougan was quoted as saying on Saturday. Dougan said in an interview in the Neue Zuercher Zeitung he was an optimist and it could take three, four, five months before the crisis bottomed out. "I believe I can already detect a certain easing of tension in liquidity and credit provision, but the big problems that set off the crisis have not yet been dealt with," he said. "There would undoubtedly be much greater confidence if prices in the U.S. real estate market, where the crisis originated, finally stabilized. That could happen as soon as the middle of this year. But we are preparing for the possibility that the crisis continues for some time," he said. The crisis has set off write-downs running to more than $100 billion by banks globally. Experts say final losses may reach as high as $400 billion. © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Accident Fund Asks for Competitive Barriers to be Removed LANSING, Mich., Feb. 15 /PRNewswire/ -- After working diligently over 13 years as a private company to establish a national foundation for its business, Lansing-based Accident Fund Insurance Company of America said that now is the time for the Michigan Legislature to remove statutory limitations on its business that are keeping it from competing nationally. "We are a proud Michigan employer, committed to staying here with our new national headquarters on the Lansing waterfront and the hundreds of new jobs it will bring. With reform, we will have the potential to grow many more jobs in Michigan for years to come," said Elizabeth Haar, Accident Fund CEO. Accident Fund is a wholly-owned subsidiary of Blue Cross Blue Shield of Michigan (BCBSM). Legislation currently before the Michigan Senate (House Bills 5284 and 5285) removes a 13-year-old provision in Michigan law that limits Accident Fund to selling workers compensation insurance. The provision was put in place when BCBSM bought Accident Fund from the State of Michigan in 1994. The changes would allow BCBSM subsidiary companies to market other property and casualty lines of insurance. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Ambac Announces Reorganization of Credit Risk Function Company Creates New Role of Chief Risk Officer NEW YORK--(BUSINESS WIRE)--Ambac Financial Group, Inc. (NYSE: ABK) (Ambac) today announced the appointment of David W. Wallis as Chief Risk Officer. In this newly created role, David will be responsible for three principal areas: Capital and Risk Analysis, Portfolio Risk Management and Credit Risk Management. While David previously had responsibility for Portfolio Risk Management, the addition of Credit Risk Management and a greater focus on capital will greatly enhance Ambac’s ability to strengthen its underwriting process while retaining its focus on risk-return driven capital management. www.ambac.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Priority Health Expands Coverage Area FARMINGTON HILLS, Mich.--(BUSINESS WIRE)--Priority Health, one of the largest health plans in Michigan, has expanded the coverage area for its HMO product to include Clare, Midland and Gratiot counties and part of Monroe County. The expansion was approved by the State of Michigan Office of Financial and Insurance Services (OFIS), which regulates health plans. Through this expansion, Priority Health has increased its coverage area within Bay, Gladwin, Isabella and Mecosta counties and now serves Lenawee County in its entirety. Priority Health now serves 60 counties in Michigan’s Lower Peninsula including metropolitan areas such as southeastern Michigan. www.priorityhealth.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Chesapeake’s SmartAnalysis Goes Live at National Life Group National Life Group Estimates Full Return on Investment in Year One Owings Mills, Md. -- February 20, 2008 -- Chesapeake System Solutions, Inc.® (www.chessys.com), an industry leader in providing automated reconciliation, treasury workstation, bank data management, bank account analysis, bank relationship management and compliance software, today announced that its SmartAnalysis® software successfully went live at National Life Group® (www.nationallife.com) headquarters in Montpelier, Vermont. National Life Group is a family of financial services companies that reported over $19.3 billion in assets under management at the close of 2006. SmartAnalysis is a sophisticated tool that gives firms the capability to quickly analyze commercial bank fee data across all of a firm’s banking relationships regardless of the number of banks involved, individual accounts maintained or number of services used. SmartAnalysis’ functionality simplifies this process with a user friendly design that provides all levels of corporate personnel immediate access to the information they need to verify bank charges, negotiate better rates, accurately report daily corporate cash positions and develop meaningful budgets. www.chessys.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Insurance Premiums For Executive Liability Vary Widely By Industry, According To Global Study By Carpenter Moore, Leading Broker Financial Services, Technology and Life Sciences Industries Found to Have Highest Premiums SAN FRANCISCO, CA, February 5, 2008 – Carpenter Moore, the wholly-owned insurance brokerage subsidiary of The Nasdaq Stock Market, Inc. (NASDAQ: NDAQ), has just released its annual global Directors & Officers Liability Insurance Peer Benchmarking Report. This comprehensive analysis contains comparable data on directors and officers (D&O) insurance purchasing trends. The study found that industries experiencing the highest premiums were financial services, technology and life sciences, with the lowest premiums found in energy and manufacturing. “We find that no matter the market cap segment, the three industry sectors that pay the most for D&O insurance are financial services, technology, and life sciences,” said Lauri Floresca, Senior Managing Director and author of the Carpenter Moore D&O Benchmarking Report. She continued, “This is in line with data on securities class action filing rates, which consistently ranks those three industries as the most likely to face litigation. In 2007, the bulk of the 166 cases filed were brought against companies in those three industry sectors.” The 2007 Carpenter Moore D&O Benchmarking Report allows senior executives who make insurance policy renewal decisions to compare for the first time executive liability insurance pricing against their peers. The report compiles and assesses vital data for policy renewals on more than 500 publicly traded companies that placed D&O business through more than 65 different insurance brokers worldwide. Decision-makers will not only have a rich resource of information to assess their comfort level with the amount and type of D&O insurance purchased, but also independent data that can serve as due diligence for important purchasing decisions. Companies participating in the 2007 Carpenter Moore D&O Peer Benchmarking Survey span a broad spectrum of industries, with market capitalization from $1 million to $70 billion, and are domiciled across 37 states and 17 countries. Noting current market conditions Ms. Floresca commented, “We have found that there is a correlation between financial market volatility and Federal Securities class action suits. For example, the mortgage crisis led to a big jump in cases filed against financial services companies, with 28% of the total up from an average of 12% between 1997 and 2006 (Source NERA and ISS). For more information, visit http://www.nasdaq.com/newsroom/news/pr2008/classactionlawsuits.pdf. “Most D&O market studies reference the percentage by which premiums increased or decreased in a given year, which may be a good metric of the industry, but tells an individual company almost nothing,” noted Ms. Floresca. “We’ve developed a way to account for different limit decisions and identify a consistent metric, resulting in premium benchmarking that is meaningful.” To view the average price for the first $5 million of insurance by industry, visit http://www.nasdaq.com/newsroom/news/pr2008/2007benchmarkingsurvey.pdf. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. PIA Offers Consumer Materials In Spanish GLENMONT, N.Y.—The Professional Insurance Agents of Connecticut, New Hampshire, New Jersey and New York State are translating consumer informational materials into Spanish for the benefit of association members and their clients. This service will allow insurance agents to reach out to Spanish-speaking consumers and to target new markets effectively. For more information about materials available in Spanish, visit PIA’s Web site at http://www.piaonline.org/COMM/cs/spanish-ny.shtml or contact PIA Creative Services, an in-house advertising group for the insurance industry, at (800) 424-4244. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Six Tips for the Savvy New Car Shopper Looking for a Vehicle Equipped with a Reasonable Insurance Rate WARWICK, R.I.--(BUSINESS WIRE)----Although how Presidents' Day became a time to celebrate America's infatuation with the automobile has never been explained, savvy consumers know that the third Monday in February is an excellent time to secure great deals on this year's models. To get the most for their money, many discerning car buyers throughout Massachusetts will comparison shop and review new car guides before stepping on to the lot. However, to properly protect their investments, consumers should also take a few additional minutes to make certain that their auto insurance is top of the line. "There's a lot to consider, to ensure that you don't have unanticipated gaps in your auto coverage," said John Barish, state management director for Massachusetts at MetLife Auto & Home(R). "In fact, consumers may be stunned to find out how much a new car depreciates during the first year, from the moment that you drive off the dealer's lot. That means that a person can pay $20,000 for a vehicle and receive thousands less than that if the vehicle were 'totaled.' In many instances, consumers could find themselves owing more on a vehicle than it is actually worth." Now that managed competition offers Massachusetts consumers greater choice in auto insurance coverage, before purchasing a new vehicle, consumers should ask themselves the following questions: What does my auto coverage actually cover? Determine in advance the level of protection actually afforded under the terms of the policy. For example, if your new car were damaged beyond repair, would your auto insurer replace the vehicle with a new one, or take a deduction for depreciation? Is image everything? Certain cars look great and catch the eye, but you may end up paying more for the flair. Cars that are expensive to repair or have historically higher theft rates carry higher insurance costs. Specialty vehicles and sports cars typically cost more to insure. Can I use the accessories to my advantage? If your new vehicle comes equipped with such things as anti-theft/alarm devices or airbags, you may qualify for discounts. Are there other discounts that I qualify for? Insurers offer discounts for a number of factors: driving record, certain driver training courses, low annual mileage, or the fact that a household has more than one vehicle insured with the same company. How safe is the vehicle? Besides ensuring greater peace of mind, vehicles that are considered "crashworthy" usually cost less to insure. Before making your final decision, pay a visit to www.highwaysafety.org to rate your prospective purchase. Is there a way to protect against depreciation? Most insurers take depreciation into account, and not only for new cars that are totaled. In a partial loss, depreciation is also considered for parts that are subject to wear and tear, such as batteries, tires, shocks, and electrical parts. However, it pays to shop around, because there are insurance companies that provide replacement cost coverage for these items. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Legislators Back NCOIL Life Settlements Model—See As Key To Stopping STOLI Abuse Troy, New York, February 15, 2008 – The National Conference of Insurance Legislators (NCOIL) last week—in a letter sent to legislative leaders and insurance committee chairs of the 50 states and related jurisdictions—strongly reaffirmed its commitment to an NCOIL Life Settlements Model Act adopted by its Executive Committee in November 2007. The model was approved unanimously after nearly two years of interested party input and over 35 hours of intense discussion and debate. NCOIL believes the model is key to addressing a very vital concern—that of illegal stranger-originated life insurance schemes, or STOLIs. NCOIL President Brian Kennedy, RI, in the February 7 letter reaffirmed the group’s conviction that the model, which received legislative and industry consent, will address STOLI abuses relating to the sale of life insurance products, writing to legislators across the country Whether STOLIs are broached by your state insurance department or insurance and other industry representatives, the issue—if not already—soon will be on your state’s insurance committee agenda. I would encourage you to introduce the NCOIL proposal, as we believe that it is a strong model that protects the property rights of individual policyowners while addressing STOLI abuses. For a copy of the letter, please visit the NCOIL web site at www.ncoil.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. New National Survey of Independent Agents To Probe Key Relationships with Carriers WASHINGTON, D.C. (Feb. 15, 2008)—A major new study of critical relationships in the Independent Agency System will be conducted in the coming month, its researchers announced today. Channel Harvest Research, a partnership of The van Aartrijk Group and Campbell Communications, will field the national survey of independent agents and brokers by March 1. It will probe their attitudes toward carrier relationships and the companies they represent. “This syndicated research, with multiple subscribers sharing the expense, will provide a high-value, cost-effective complement to carriers’ own proprietary surveys,” said Peter van Aartrijk, managing director. Channel Harvest will release the findings in a special report, “How Independent Insurance Agents View Carrier Relationships,” in early April, he noted. Major carriers are the principal subscribers to the research and will receive “a strategic roadmap” helping them boost their business with independent agents and brokers in the coming year, van Aartrijk said. The survey will address such key questions as: What are the most important characteristics in agency benefits and service from carriers when agents choose those to place business with? How do agents rate and rank carriers with which they have worked—on 20 different factors? How do agents rate specific carriers overall compared with the entire industry? What are the reasons agencies most frequently terminate a relationship with a carrier? Which carriers do agents say they will not work with and why? Information about the survey project, including a prospectus and the actual online survey, may be found at www.channelharvest.com. FOR IMMEDIATE RELEASE CONTACT: Peter van Aartrijk (703) 912-7974; peter@Aartrijk.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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Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. TODAY'S BANK INSURANCE IN BRIEF – 02/18/08 TODAY'S BANK INSURANCE IN BRIEF" is provided each week courtesy of Michael White Associates@www.bankinsurance.com. To read these stories, visit http://www.bankinsurance.com/editorial/news/default.htm
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Hana Seeks to Buy Merrill Shares from Temasek Mon Feb 18, 2008 3:01am EST SEOUL/SINGAPORE (Reuters) - Hana Financial Group (086790.KS: ), South Korea's No. 4 financial services firm, said on Monday it was considering buying shares in Merrill Lynch (MER.N: ) from Singapore's Temasek Holdings [TEM.UL]. The size of the possible investment has not been decided, while a source close to the deal told Reuters that the deal may involve a small stake in the U.S. investment house. "We are still considering it," a Hana spokesman said by telephone. "We should watch the situation for some time." The comment came after the the Maeil Business Newspaper reported that Hana Bank, a main arm of the holding group, had approved the purchase worth $50 million, or $50 per share at a board meeting last Thursday. Temasek and Merrill declined to comment. (Reporting by Kim Yeon-hee and Saeed Azhar; Editing by Keiron Henderson) © Reuters 2008 All rights reservedReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. China To Create Environmental Disaster Insurance BEIJING, Feb 18 (Reuters) - China plans to launch an insurance system to cover environmental disasters, aiming to ensure that the victims of major pollution incidents receive due compensation, Xinhua news agency said on Monday. Xinhua quoted Pan Yue, deputy head of the State Environmental Protection Administration (SEPA), as saying that the system would start out as a pilot project but would be intended to cover all industries with a high risk of pollution incidents by 2015. (Reporting by Jason Subler; Editing by David Fogarty) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Spain's Gaesco Says Receives Three Offers MADRID, Feb 18 (Reuters) - Spain's Gaesco Holding (GAES.BC: ) said on Monday it had received offers to take a major stake in the firm or for the purchase of some of its units. Gaesco's business includes brokerage, fund management, pensions and financial advisory units. On Friday, financial services firm Renta 4 RTA4.MC said it had launched a takeover offer for 100 percent of Gaesco but gave no financial details of the bid. Gaesco said in a stock exchange statement that the bids arrived after the close on Friday, but it did not name the bidders. The company got into trouble at the end of last year$ racking up 40.6 million euros of losses from structured credit deals during market volatility up to the end of October. Its chairman resigned after the announcement. Gaesco said it would ask for further information from bidders before recommending a particular offer in the coming weeks. Gaesco said it currently had 1.38 billion euros ($2.02 billion) in funds under management. Market sources said financial services group Inversis was one of the other bidders, but Inversis declined to comment. (Reporting by Ben Harding, editing by Will Waterman) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Aioi Insurance Subprime Losses to Top $743 Million-Paper Mon Feb 18, 2008 3:01am EST Learn to Trade with a FREE Guide.TOKYO (Reuters) - Subprime-related losses at Japan's Aioi Insurance Co (8761.T: ) are expected to more than triple to more than 80 billion yen ($743 million) in the year to March, the Yomiuri newspaper reported on Sunday. Japan's fourth-largest non-life insurer said in November its paper losses as of the end of September stood at 25.2 billion yen and that its total exposure to subprime-related investments came to 115.4 billion yen. The Yomiuri newspaper said that Aioi's losses have grown due to the declining market value of its holdings of securitised financial products linked to subprime mortgages. Aioi will likely book appraisal losses in excess of 60 billion yen when it reports earnings for the nine months to December on Feb. 22, the paper said. The losses will likely grow to more than 80 billion yen, or about 70 percent of its total exposure, for the full year to March, and Aioi will likely be unable to avoid a large downward revision to its profit forecats, the Yomiuri said. No one at Aioi could be reached for comment. (Reporting by Nathan Layne; Editing by Lincoln Feast) © Reuters 2008 All rights reservedReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Taiwan Insurer Sees $4.2 Million In 09 Premiums From China JV TAIPEI, Feb 18 (Reuters) - Taiwan Life Insurance (2833.TW: ) expects its new tie-up with China's Xiamen C&D (600153.SS: ) to have 30 million yuan ($4.2 million) in premiums in 2009, a company executive said on Monday. The firm, the No.12 insurer in Taiwan, and the Chinese partner announced this month they would jointly invest a total of 240 million yuan ($33.4 million) to form a 50-50 life insurance venture on the mainland. [ID:nPEK99559] Xiamen C&D is a diversified trading company based in the southeastern province of Fujian across from Taiwan. ($1=T$31.7) (Reporting by Faith Hung; editing by Anne Marie Roantree) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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