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1. New York Supreme Court Denies D&O Insurance Company’s Motion to Vacate Prior Order to Provide Defense Costs up to Policy Limits to Princeton University New York, NY (February 29, 2008) – New York Supreme Court Justice Helen Freedman denied a motion by National Union Fire Insurance Company, a division of AIG, to vacate the Court’s prior Order that National Union must advance defense costs to the trustees of Princeton University for defense against a challenge by Trustees of the Robertson Trust. The Trustees of Princeton University vs. National Union Fire Insurance Company of Pittsburgh, PA, Index No. 650202/06 (Feb. 15, 2008). The motion argued that because the New Jersey Chancery Court held in an underlying case that certain claims for legal relief were “ancillary to” or “directly related to” claims for equitable relief, National Union should not have to pay the difference between a $5 million sublimit for equitable or injunctive claims and the $15 million coverage for monetary or legal claims. Justice Freedman ruled that the fact that most of the monetary or legal claims are “ancillary” or “directly related to” the equitable claims “does not mean that the equitable claims so predominate as to make the legal claims meaningless.” Moreover, “the exclusion or sublimit did not necessarily include all equitable remedies. Where, as here, there is an ambiguity concerning the full meaning of the exclusion or sublimit, such ambiguity most be construed in favor of the insured and not subject to any other reasonable interpretation.” William G. Passannante, counsel to the Princeton trustees and co-chair of the Insurance Recovery Group at Anderson Kill & Olick, P.C., said, “Judge Freeman’s once again denied the insurance company’s effort to throw up any barrier it could dream up to avoid assuming its obligation to defend its policyholder.” Justice Freedman declined to vacate the Supreme Court’s prior Order entered on September 10, 2007 upholding its prior, April 10, 2007 Order in The Trustees of Princeton University vs. National Union Fire Insurance Company of Pittsburgh, PA and American International Group, Inc. [ADD COURT REF, Index NO. 650202/06] With reference to the underlying case, the September 10 Order states: Princeton correctly points out that National Union was obligated to pay the Defense Expenses as Princeton incurred them, and is not entitled to defer payment until after allocation. An insurer who covers an insured's defense expenses is entitled to distinguish between covered and non-covered claims. However, an insurer must pay all the defense costs as the insured incurs them, unless they can be allocated as incurred. Although the Policy does not cover some of the claims asserted against Princeton in the underlying action, both the covered and uncovered claims were defended in a single action, and defendants have not made any showing that an apportionment is feasible. Moreover, the Defense Expenses far exceeded the Coverage Limit, and apportionment is unlikely to affect National Union's ultimate financial obligation. Accordingly, National Union is directed to pay Princeton the Coverage Limit forthwith without prejudicing its right to seek recoupment. Partial summary judgment was granted on the first cause of action in the amount of $9,606,481.93. Post-judgment interest after the date of entry together with costs and disbursements to be taxed by the Clerk upon submission of an appropriate bill of costs, has also been ordered. The Court further held that while Princeton may be entitled to prejudgment interest, that interest cannot be calculated at this judgment and "a determination is deferred on that amount." On September 10, 2007 a judgment in the amount of $9,607,021.93 was entered against National Union. The underlying April 10 decision, granting partial summary judgment to the Princeton trustees, denied the two core coverage defenses advanced by National Union, Princeton’s D&O insurance carrier. On the first issue,, Judge Freeman ruled that the so-called “insured versus insured” exclusion applies to only two of twelve claims in the underlying action; that “the insurer must advance costs for both covered and non-covered claims where defense costs may not be practically apportioned” (p. 10); and that since Princeton’s defense costs have already exceeded policy limits, “apportionment is unlikely to affect the insurer’s ultimate financial obligation” (p. 11). Secondly, Judge Freedman rejected National Union’s attempt to cap its coverage of defense costs at $5 million on the grounds that a policy endorsement limited coverage for defense against claims seeking equitable or injunctive relief (as opposed to those seeking monetary damages) to $5 million. Judge Freedman noted that “the equitable relief sublimit does not apply to the claims seeking money damages or return of funds, and that “Plaintiffs [in the underlying action] themselves added claims for substantial monetary relief” (p. 11). Judge Freedman concluded, “Neither the ‘insured versus insured’ exclusion nor the equitable relief sublimit apply to the claims seeking to recover more than $100 million from Princeton” (p. 12). Robert M. Horkovich, William G. Passannante and Diana Shafter Gliedman of Anderson Kill & Olick, P.C. represent Princeton. www.andersonkill.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. BestWeek: Guilty Verdict in Finite Re Trial Is Mixed Blessing for Industry, xperts Say OLDWICK, N.J., Feb. 29, 2008—To an industry slowly recovering from a four year period of intense regulatory scrutiny, the recent federal jury decision to convict five former senior insurance executives of securities fraud in connection with a finite reinsurance deal is yet another black eye, experts say in a story in BestWeek U.S./Canada. Many are expecting the guilty verdicts—up to 16 counts for most—and the potentially long jail sentences facing the defendants to impact decisions in company boardrooms going forward. One executive likened it to the ongoing steroid allegations against baseball legend Roger Clemens, and how every professional pitcher is worried about being deemed guilty simply by association. Some have expressed hope, though, that this case would finally force the regulatory community and the insurance industry to come together to set new guidelines on the legitimate use of finite reinsurance, which was the type of deal at the heart of the case. Of the five defendants convicted on multiple counts of securities fraud, conspiracy and making false statements to the U.S. Securities and Exchange Commission, four were former General Reinsurance Corp. executives and one worked for American International Group Inc. Prosecutors said the defendants arranged a sham finite reinsurance deal that purported to transfer $500 million of loss reserves to AIG without AIG assuming any real risk. Selva Ozelli, an international tax attorney who provided jurisdictional analysis to state and federal regulators at the onset of the investigations in 2005, said the reputational damage to the industry is severe because the case involves AIG and Gen Re, and some of the industry’s most respected players. “Two of the largest insurance companies were involved in these fictitious transactions, using reinsurance transactions to manipulate financial statements, as opposed to its intended use. The insurance industry ought not to be cheering at this point,” Ozelli said. Also, in BestWeek Europe: Lloyd’s underwriter Beazley Group plc’s establishment of a Political and Contingency Group is a statement of confidence in what Beazley sees as a very promising market. Also, in BestWeek U.S./Canada: The five former insurance executives found guilty on federal charges of conspiracy and fraud in a plot to manipulate the loss reserves of American International Group Inc. face essentially a whole new trial in the sentencing process. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Wilbur Ross To Buy Up To $1 Billion Assured Shares Fri Feb 29, 2008 8:15am EST NEW YORK (Reuters) - Wilbur Ross agreed to buy up to $1 billion in shares of bond insurer Assured Guaranty Ltd (AGO.N: ), the company said on Friday, giving the billionaire investor a key foothold in the struggling market. Under the agreement, WL Ross & Co LLC, the private equity firm founded by Ross, will purchase $250 million of common shares of Assured and provide a commitment to purchase up to $750 million of additional common shares at the option of the company. "We believe that Assured has an excellent opportunity during this time of uncertainty in the financial markets to provide investors with credit enhancement products in both the public and structured finance markets," Wilbur Ross, chairman and chief executive officer of WL Ross & Co. said in a statement. Assured has largely escaped subprime-related losses and, along with Financial Security Assurance, is one of only two existing "triple-A" guarantors with stable outlooks and ratings affirmed by all three rating companies. "(Ross) probably just thinks it's a better way to go. I don't know why he's avoiding the other ones. He probably sees more problems there and he's not happy with that," said Peter Dunay, chief investment strategist at Meridian Equity Partners in New York. Earlier this month, Assured Guaranty reported a fourth-quarter loss of $260.1 million on unrealized mark-to-market derivative losses. But it also raised its dividend and is widely seen as having a competitive advantage at a time when industry titans MBIA Inc (MBI.N: ) and Ambac Financial Group (ABK.N: ) are trying to avoid potential downgrades. At the same time, Warren Buffett's Berkshire Hathaway (BRKa.N: ) has entered the bond insuring market. (Reporting by Christopher Kaufman and Franklin Paul; Editing by Derek Caney) © Reuters 2008 All rights reservedReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. AIG Posts $5.29 Billion Quarterly Loss Thu Feb 28, 2008 9:27pm EST NEW YORK (Reuters) - American International Group Inc (AIG.N: ) on Thursday posted its biggest-ever quarterly loss, missing Wall Street expectations after being hurt by a write-down of securities exposed to bad mortgage investments. The world's largest insurer posted a $5.29 billion loss - the largest in the company's 89-year history. Analysts said AIG's woes were symptomatic of broader problems in financial services, but that it was still nothing to sneeze at -- and there could be more bad news in the pipeline. "It would be folly to see the write-down as the absolute truth regarding their likely claims, but it would be folly to ignore it," Morningstar analyst Matt Nellans said. AIG, a multi-line carrier offering property, commercial and life insurance worldwide, said its adjusted fourth-quarter loss -- excluding capital gains, losses and hedging activity -- was $3.2 billion, or $1.25 a share, widely missing expectations. The fourth-quarter results included a pretax charge of $11.12 billion for a net unrealized market valuation loss related to its credit default swap portfolio. Analysts, on average, expected a loss of 15 cents, according to Reuters Estimates. In the year-ago quarter, New York-based AIG earned $3.85 billion, or $1.47 a share, from operations. The insurer said it expects the bulk of its write-down to be recouped over time, but a small portion was more seriously impaired, leading the company to record it as a loss. In total, AIG recorded net realized pre-tax capital losses of $2.63 billion -- including $643 million in charges resulting from bad mortgage debt. Chief Executive Martin Sullivan moved to assure investors that while the results were "clearly unsatisfactory" and the company did not rule out more write-downs, AIG did not expect the portfolio deterioration to be material in the long run. "During 2008, we expect the U.S. housing market to remain weak and credit market uncertainty will likely persist," he said in a statement. Donn Vickrey, an analyst at the research firm Gradient Analytics said, "There is a reasonable likelihood that there is going to be some (more) impairment. The company is saying that while these are paper losses, not real losses -- I don't think we know that yet. "By the end of 2008, it could very well be worse," he added. Investment banks around the world have written off more than $140 billion because of the subprime mortgages crisis and the credit crunch roiling the markets. Analysts said AIG's could take another hit from the credit crisis if it extends to commercial loans, including commercial real estate. AIG shares fell 2.6 percent to $48.83 in after-market trading, after losing 4 percent in regular trade on Thursday. The shares are off their five-year low. The $11.12 billion disclosed on Thursday was for the three-month period, including December. CEO REPORT CARD AIG's fourth-quarter loss marred Sullivan's track record of turning a profit in every quarter since he was installed as CEO almost three years ago, replacing Maurice "Hank" Greenberg who quit after 37 years at the insurer's helm, under the cloud of an accounting scandal. Analysts were sympathetic of Sullivan's plight, saying many executives were caught off guard by the credit crisis -- and he had inherited a thorny situation. Early in his tenure, Sullivan negotiated a restatement and $1.6 billion legal and regulatory settlement, allowing AIG to move past allegations of mis-accounting and kickback payments to brokers. Now AIG is embroiled in another accounting scandal. Its auditors cited "material weakness" in the insurer's internal controls. "He (Sullivan) inherited a difficult situation, but it has been made worse by his not communicating on a more timely basis, and clear fashion to Wall Street the risks that they face," said Gradient's Vickrey. But the misstep isn't enough to push him out of the job, according to Charles Lieberman, chief investment officer of Advisors Capital Management LLC in Paramus, New Jersey. "I'm comfortable with him (Sullivan) continuing," Lieberman said. "So much of what is happening is a function of the turmoil in credit markets which I think caught most of these guys by surprise -- its market valuations that don't make any sense." (Additional reporting by Dan Wilchins, Chris Sanders; editing by Leslie Gevirtz and Braden Reddall) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Credit crisis throws AIG into "uncharted waters" Fri Feb 29, 2008 12:07pm EST By Lilla Zuill NEW YORK (Reuters) - American International Group (AIG.N: ), on the heels of reporting its largest-ever loss, said on Friday the subprime crisis had thrown it into "uncharted waters" that were likely to remain choppy through 2008. The world's biggest insurer did not rule out further write-downs and losses but said the crisis that led to a $5.3 billion fourth-quarter loss was not expected to be material in the long run. Its shares fell 7 percent and led other insurers lower. The KBW Insurance Index was down 2 percent, with AIG the biggest drag. "We are in unchartered waters," Chief Executive Martin Sullivan said on a conference call on Friday, a day after reporting AIG's largest quarterly loss since it was founded in 1919. The world's largest insurer said the loss stemmed largely from a $11.12 billion write-down of a super senior credit swap portfolio in its AIG Financial Products unit. AIG said it had not incurred a realized loss in the credit swap portfolio since it entered this business in 1998, but it forecast potential realized losses of $900 million over time, based on current analysis. Sullivan said the financial products business had provided high returns over its history, and while all businesses are reviewed periodically, there was no immediate plan to shed it. AIG's difficulty in valuing its derivatives portfolio earned it a rebuke from its auditor, which earlier this month cited "material weakness" in the company's internal controls. "We have already begun the process to remediate the material weakness identified by (PricewaterhouseCoopers)," Sullivan said, indicating that AIG could take the rest of 2008 to do so. Joe Cassano, head of AIG Financial Products, has agreed to leave AIG but will remain a consultant, Sullivan said. Deterioration in U.S. residential and credit markets also took a hit on two other AIG units, he said. United Guaranty posted an operating loss of $348 million, and American General Finance reported $9 million in fourth-quarter operating income after increasing its provision for finance receivable losses and a decline in mortgage banking revenues. AIG said the deterioration in its credit swaps had raised the concern of rating agencies, resulting in its being assigned a negative outlook or having its ratings put under review for possible downgrade. As a result, the insurer said it was prudent to preserve capital, and said it was suspending its share buyback program for the foreseeable future. Goldman Sachs analyst Tom Cholnoky, in a research note, said investors were likely to worry about future write-downs and could also be rattled by the suspension of share repurchases. AIG shares were down $3.70 to $46.45 in morning trade on the New York Stock Exchange. (Reporting by Lilla Zuill, editing by Gerald E. McCormick and John Wallace) © Reuters 2008 All rights reservedReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article
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For more information send an e-mail to tedd@insurancebroadcasting.com, call 888-282-1765 or click here to read the media kit online. www.InsuranceBroadcasting.com 6. CEO Sullivan says addressing auditor concerns NEW YORK, Feb 29 (Reuters) - American International Group (AIG.N: ) Chief Executive Martin Sullivan on Friday told investors that the company is working to address "material weakness" concerns raised by its auditor earlier this month, after troubles valuing a credit swap portfolio. "We have already begun the process to remediate the material weakness identified by (PricewaterhouseCoopers)," said Sullivan, on a conference call after the company disclosed a record $5.3 billion fourth-quarter loss on Thursday. AIG earned the "material weakness" rebuke from its auditor after a unit, AIG Financial Products, disclosed it had to write down derivatives exposed to bad mortgage bets. Sullivan said that Joe Cassano, who has been head of AIG Financial Products, would retire from the company at the end of March. Bill Dooley will assume interim responsibility for the day-to-day operation of AIG Financial's business, while Cassano will serve as a consultant through the end of the year. (Reporting by Lilla Zuill, editing by Gerald E. McCormick) © Reuters 2008 All rights reservedReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Democratic Candidates Miss Opportunities to Solve Healthcare Crisis CINCINNATI--(BUSINESS WIRE)--Healthcare costs took center stage in Tuesday night’s Democratic primary debate. Senators Hillary Clinton and Barack Obama sparred for 16 minutes over whose plan would cover more Americans. But Tom Quigley, President of Total Benefits Planning Agency, Inc., says that both candidates miss the point. “Clinton and Obama argue whether mandating coverage is the answer,” says the maverick advisor. “Why aren’t they promoting existing solutions to make health care more affordable, without enriching the insurance agents and carriers who clearly aren’t getting that job done?” Quigley’s “Total Benefits” strategy takes advantage of a 57-year-old tax law, Internal Revenue Code Section 105b, which lets employers reimburse their employees for medical costs they incur for themselves, their spouses, and their dependents. This, in turn, lets employers buy less expensive, higher-deductible insurance coverage – then reimburse their employees directly for the difference between the old deductible and the new. The net result, Quigley reports, is often 20-40% savings over traditional benefit programs. “Unfortunately, traditional health insurance agents and even some carriers are reluctant to embrace the strategy,” Quigley continues. “Refinancing health benefits through the 105 plan is a smart move, just like refinancing your house when rates drop. Yes, it cuts out the insurance ‘middleman.’ And the middleman never likes to be cut out! But average family health insurance premiums exceed $10,500. Both Democratic and Republican candidates need to look outside the current insurance-dominated system for real solutions.” www.totalbenefitsplanning.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Defined Benefit Growth Continues at CitiStreet Customers Appreciate Advantages of Total Retirement Outsourcing QUINCY, Mass.--(BUSINESS WIRE)--CitiStreet heads into this year energized by a significant burst of defined benefit business. The company starts the year with a schedule that calls for implementing service to six new defined benefit customers with plans that range in size from 5,500 participants to around 50,000 participants. Five of the customers offer defined benefits plans open to new participants, with one customer’s plans being frozen. Sandy McCarthy, president of CitiStreet, said the company’s Total Retirement Outsourcing solution has been a key driver behind the customer growth and satisfaction in the business. “We are seeing a growing number of customers who want the ability to have a single interface for their defined contribution and defined benefit plans,” she said. “CitiStreet is able to provide a smooth transition to that single benefits source.” www.citistreetonline.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. MBIA Sees Meeting '08 Operating Cash Requirements Fri Feb 29, 2008 7:53am EST NEW YORK (Reuters) - MBIA Inc (MBI.N: ) anticipates that its cash flow from operations and capital resources will meet its estimated operating cash requirements in 2008, according to a filing on Friday. The company expects that in 2008 it will be required to make loss payments, before reinsurance, of between $700 million and $800 million, primarily related to insured credits in the residential mortgage-backed securities and home equity sectors. The world's largest bond insurer, which recently raised capital as expected payouts on subprime mortgage bonds increased, also replaced its chief executive last week. (Reporting by Jonathan Keehner; editing by Jeffrey Benkoe) © Reuters 2008 All rights reservedReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Merrill To Shut Down Subprime Lending Unit: Report Thu Feb 28, 2008 3:58pm EST NEW YORK (Reuters) - Merrill Lynch & Co Inc (MER.N: ) plans to wind down most of its First Franklin subprime mortgage lending unit, responding to continued deterioration in U.S. mortgage markets, business news channel CNBC reported Thursday. The move could result in the elimination of 400 to 500 jobs starting next week, CNBC reported. Merrill would keep First Franklin's loan servicing business, which could perform well in the current mortgage and housing markets, CNBC said. Merrill spokeswoman Jessica Oppenheim declined to comment. Merrill, which ceased originating subprime mortgages on December 28, on Monday said it was "evaluating our continued involvement in this market." The largest U.S. brokerage house bought First Franklin from Cleveland-based bank National City Corp (NCC.N: ) in December 2006 for $1.3 billion, in a bid to expand in a business that had generated big profits for rivals like Lehman Brothers Holdings Inc (LEH.N: ). The deal closed just before the subprime mortgage market began to collapse. Last year the unit, where losses mounted as demand for loans disappeared, contributed to distress stemming from exposure to markets slammed by the worst housing crisis in decades. On Monday, Merrill Lynch in its 10-K annual report disclosed that last year it "substantially reduced" U.S. subprime home lending, mortgage purchases and securitization activities as well as extending credit facilities to other lenders. Merrill reported mortgage-related losses and write-downs totaling $24.4 billion in 2007. The setbacks contributed to Chief Executive Stan O'Neal losing his job, and have new CEO John Thain scrambling to turn things around. The annual report shows that Merrill still has significant exposure to risky home loans and related assets. Merrill declined to say how many people are still employed at First Franklin, which had 2,500 employees at the end of 2006. (Reporting by Joseph A. Giannone, editing by Gerald E. McCormick) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
11. Ambac Bailout Hits Significant Snag: Report Fri Feb 29, 2008 8:21am EST NEW YORK (Reuters) - An effort to arrange a rescue of trouble bond insurer Ambac Financial Group Inc (ABK.N: ) has hit a significant snag over the amount of capital the banks involved would have to inject into the company, CNBC television reported on Friday. The snag involves a dispute with the ratings agencies whose verdict is crucial to Ambac retaining its triple A debt rating, CNBC said, adding that the agencies are calling for the banks to inject more capital given the structure they are proposing for the business. Ambac was not immediately available for comment. CNBC said the deal was still far from dead and that the banks were trying to come up with a new structure which would involve keeping Ambac as a single entity, rather than splitting it into separate units insuring safer municipal bonds and riskier structured bonds. The deal could happen as early as next week, CNBC said. Ambac shares were down 8.4 percent in pre-market trading on the news, which also sent U.S. stock futures lower. Last Friday, a report on CNBC saying that an Ambac rescue was imminent sparked a late rally in stocks. (Reporting by Christian Plumb, editing by Dave Zimmerman) © Reuters 2008 All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Former Limited-Benefit Medical Plan Executives Launch New Firm Founders of Ternian Insurance Group remain committed to voluntary marketplace. Phoenix, Arizona – February 28, 2008 – A team of veterans from Star HRG, which pioneered the concept of limited-benefit medical (mini-med) plans before being bought by CIGNA, has launched a start-up organization targeting voluntary benefit programs designed to help uninsured and underinsured individuals. Star HRG’s former President, Timothy L. Cook, together with former co-executives Craig A. Smith and Benjamin Rozum founded Ternian Insurance Group LLC. in 2007. Rozum, who was head of Sales, Client Management and Product Development at Star HRG, is leading the newly formed company as President. In its early stages of formation, Ternian conducted market-based research to assess the needs of uninsured and underinsured individuals to uncover potential gaps in coverage in the voluntary marketplace. They are currently establishing partnerships with insurance carriers and ancillary providers to develop value-based products and consumer-driven services. “This is an exciting time for our company. The opportunity to develop new products and services will carry on our tradition of market leading innovation,” said Rozum. Ternian believes that there continues to be a need in the voluntary and individual marketplace to provide consumers with more choice, information, and a broader range of affordable options. Ternian expects to release details of their partnerships, products and services over the first half of 2008. About Ternian Ternian Insurance Group LLC., based in Phoenix, Arizona, is a niche insurance program manager and marketing agency. We specialize in the product development and distribution channel management of value-driven, voluntary insurance programs and services. Our founders have a 17 year history of helping thousands of employers and millions of uninsured workers obtain affordable coverage. We remain committed to the voluntary marketplace. For more information, visit www.ternian.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. EMSI Introduces U-Direct for Life Insurance Direct Marketers SCOTTSDALE, Ariz., Feb. 28 /PRNewswire/ -- Examination Management Services, Inc. (EMSI) is pleased to introduce a comprehensive new product designed specifically for direct marketing channels that sell internet-based life insurance. U-Direct manages the entire application fulfillment and requirements gathering process from start to finish, providing quick and accurate results that significantly increase return rates and placement ratios. U-Direct simplifies and speeds up the application fulfillment process by providing direct marketers with flexible, tailored options for application delivery and integrating them with requirements gathering to create one seamless process that saves time and increases data veracity. Whether clients prefer to upload applications to EMSI's Web site, integrate fulfillment through EMSI's lab partner or fulfill applications through EMSI's Premier Solutions teleinterviewing service, every case receives reliable, complete case management and fast delivery. As part of the process, EMSI monitors the exam, delivers the application for signatures, and reviews it for completeness and accuracy to ensure applications arrive in carriers' hands efficiently and "in good order" for the best possible return rates. Clients can further cut cycle time with U-Direct by express ordering attending physician statements (APSs) and other requirements upfront during application fulfillment through EMSI's Web site, EMSIOnline, or through an electronic data connection. Both options provide efficient, easy ordering, timely statusing and electronic results delivery. http://www.emsinet.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. RMS Estimates Insured Losses Of Up To £30m For Lincolnshire Earthquake London – 28 February, 2008 – The earthquake that struck Market Rasen in Lincolnshire yesterday is likely to cause insured losses of between £15 million and £30 million, according to initial estimates by Risk Management Solutions (RMS), the world’s largest provider of products and services for catastrophe risk management. Despite the location of the earthquake’s epicentre, most of the damage was sustained some 18 miles away in Gainsborough, where residential and commercial properties were affected. The concentration of damage in the southern area of the town is likely to be a result of poor soil conditions, which are known to amplify the impact of earthquakes, and weaknesses in the buildings. The magnitude 5.2 earthquake could be felt across a wide radius, but created relatively low-level ground motions. “The damage caused is largely a reflection of the vulnerability of buildings, rather than the strength of the earthquake,” commented Dr. Andrew Sorby, model manager for Europe earthquake at RMS. “Had the same event occurred in an area like California, where earthquake risk is high and properties are built to withstand ground-shaking, the damage would have been minimal.” For example, a similar magnitude earthquake in California in October caused very little damage, with only a few cracked windows reported. Many UK properties are made of masonry, which makes them more prone to severe cracking during earthquakes compared to wood-framed buildings, for example. The damage resulting from the Folkestone earthquake in April last year – reported to be between £20 million and £30 million - was concentrated in a small residential area consisting of mainly Victorian properties, which tend to be more prone to damage. Earthquake insurance is included as standard in most homeowner and commercial business policies, together with wind and flood risk. “Since the summer floods, which affected many of the same areas impacted by the earthquake, more people are likely to have taken out insurance to protect their properties, so most of the damage from this earthquake should be covered,” added Dr. Sorby. www.rms.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Morgan Stanley Unit To Manage Robeco Bond Assets Learn to Trade with a FREE Guide.NEW YORK, Feb 29 (Reuters) - Robeco Investment Management (RIM) (RBEN.AS: ) on Friday said Morgan Stanley Investment Management (MS.N: ) agreed to assume control of some $4.8 billion in bond assets as it moves to exit its U.S. fixed income business. RIM, the U.S. asset management arm of Netherlands-based Robeco Group, also said it is in the process of exiting its U.S. municipal bond business in a deal expected to close by June 2008. RIM said it decided to exit the U.S. fixed income business because "sufficient scale was not achieved" to allow for "long-term growth." It said it will focus on the business in Europe, where it manages more than $60 billion in global fixed income assets. The U.S. fixed income assets are currently managed by RIM unit Robeco Weiss, Peck and Greer. Financial terms of the deal were not disclosed. It is subject to client approval and expected to close in May 2008. (Reporting by Dane Hamilton, editing by Dave Zimmerman) © Reuters 2008 All rights reservedReturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. The Pursuit of Greater Interest Rate Potential with Indexed Universal Life Insurance Pacific Life Introduces Pacific Indexed Accumulator III with Three Accounts NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Long term interest rates remain low and the volatility of the equities market can be an unsettling ride for some life insurance buyers. That is why Pacific Life Insurance Company is introducing Pacific Indexed Accumulator III1, a new indexed universal life insurance product that combines death benefit coverage with greater upside potential than traditional universal life insurance because the product’s credited interest is based in part on the positive performance of the S&P 5002 (excluding dividends). www.PacificLife.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Generic Drugs Slow Rise in Prescription Drug Costs, Saving $5.2 Billion in 2007 ST. LOUIS--(BUSINESS WIRE)--Greater use of generic drugs dramatically slowed the growth in prescription drug costs during 2007, saving an estimated $5.2 billion for commercially insured Americans and benefit plan sponsors. During 2007, the average cost of a prescription increased by only $1.09 to $54.34, up from $53.25 in 2006, according to pharmacy benefit manager Express Scripts. Otherwise, without the “generic effect,” the cost per prescription would have increased $3.58 to $56.83. http://www.express-scripts.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. EnsurApet Capitalizes on Pet Health Insurance by Establishing a Network of Veterinary Hospitals US Pet Owners Seeking Pet Health Insurance Due to Rising Veterinary Costs SANTA ANA, Calif.--(BUSINESS WIRE)--ensurApet, Inc. (OTCBB:EPTI), a provider of pet health insurance, announces that it anticipates becoming a leader in the rapidly growing US market for pet health insurance through a network of veterinary hospitals. CEO Russell Smith stated, “The United States has the largest population of companion animals in the world, with some 62% of US households owning pets, consisting of approximately 68 million dogs and 73 million cats. “Over 38 million US households own dogs and over 35 million US households own cats. The cost of taking care of these pets is an astonishing $41 billion, and rising. “The market for pet insurance in the US is largely undeveloped, with less than 1% of dog and cat owners currently insuring their pets, compared to 19% in the United Kingdom and 48% in Sweden. www.ensurapet.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Going Green Creates Business Opportunities for Insurers, Best’s Review Magazine Reports OLDWICK, N.J.--(BUSINESS WIRE)--Best’s Review’s cover package takes a look at the many ways the insurance and reinsurance industries are going green. The Green Issue is the second part of Best’s Review’s Climate Change series and showcases 10 stories that take a wide-ranging look at how insurers are responding to green initiatives. “The Green Wave”—How property/casualty insurers are creating new products that tap into the growing environmental movement. “Why Going Green Matters”—interview with Evan Mills, staff scientist at the U.S. Department of Energy’s Lawrence Berkeley National Laboratory. “The Green Agent”—17 ways agents can make their offices green. “Building Business”—How the green movement offers agents opportunities to improve client relationships with design and construction clients. “Greening Health Care”—Health insurers are incorporating green initiatives into their business plans. “Saving Their Energy”—Besides reducing energy expenses, life insurers are investing in new energy technologies. “Unnatural Disaster”—Green regulations may make insurers vulnerable in the property/casualty and directors & officers sectors. “Clear Skies”—How carbon credit trading is opening the door for new insurance and capital products. “Backs to the Wind”—Insurers are advised to assume leadership in construction codes, public policy and green investments. “A New Commitment”—Insurers can cut operational costs with green computing. Try out a Best’s Review Video Experience. Get the inside scoop by watching Best’s Review’s award-winning editors talk about their March stories at http://www.bestreview.com/videos. Other highlights of March’s issue include: --A.M. Best’s exclusive listing of captive domiciles. --Discover which issues insurance professionals want the presidential candidates to address in Best’s Review’s exclusive survey. --Find out how life insurers are reaching middle income customers. 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 Insurance Signs with Screenvision for African-American Targeted In-Theatre Campaign On-Screen and In Lobby Cinema Advertising Program Featured across Screenvision’s Targeted African-American Cinema Network NEW YORK--(BUSINESS WIRE)--Screenvision, the global leader in cinema advertising, has announced that Nationwide Insurance has signed on for a multi-platform program focused on reaching African-American moviegoers. The program, featuring 30-second spots, cinema slides, box-office handouts and in lobby standees, will run across Screenvision’s dedicated African-American Cinema Network throughout this month and in May and October 2008. The deal was brokered on behalf of Nationwide Insurance by Matlock Advertising and Public Relations – marking Screenvision’s first African-American Cinema Network buy initiated by a specialized African-American advertising agency. www.nationwide.com http://www.screenvision.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Blue Cross and Blue Shield of North Carolina and Landacorp Announce Medical Management Contract Renewal CHICO, Calif.--(BUSINESS WIRE)--Landacorp, a SHPS company, today announced an agreement to continue its contract with Blue Cross and Blue Shield of North Carolina (BCBSNC). Under the terms of the agreement, Landacorp will continue providing its maxMC medical management software to BCBSNC for an additional three years, including the case management and care coordination modules. In addition, BCBSNC has begun work to expand its use of e-maxMC, the web-based provider portal for maxMC. www.bcbsnc.com www.landacorp.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. The Disability Management Employer Coalition, along with leading disability insurers, offer employers a free guide to help soldiers tackle work, life challenges after deployment SIMSBURY, Conn. – One in four U.S. service members in Iraq and Afghanistan are National Guard members and Reservists, the largest deployment of civilian soldiers since World War II. While federal law requires that there is a job waiting when they return to U.S. soil, veterans have found the shift from battlefield to the business world can be traumatic and challenging. The challenge is to soldiers’ minds, as well as their bodies. Three out of five veterans experience post traumatic stress disorder to some degree, according to the U.S. Department of Veterans Affairs. And for every one soldier killed in combat in Iraq and Afghanistan and nearby areas, at least eight and as many as 16 are wounded or disabled, with injuries including amputations and brain injury. In addition, more than 20 percent of citizen soldiers have been deployed more than once since 2001, meaning they have made the leap from war zone to workplace repeatedly. Employers can help America’s heroes succeed in the workplace by offering employee assistance and mentoring programs, advised the Workplace Warrior Think Tank – the first-of-its-kind group launched by the Disability Management Employer Coalition (DMEC), the leading developer of employee health and productivity strategies, and three of the nation’s leading disability insurers – The Hartford Financial Services Group, Inc. (NYSE: HIG), MetLife and Unum. Today, the think tank is providing its recommendations to employers in a free guide, “Workplace Warrior: The Corporate Response to Deployment and Reintegration,” that is available on the DMEC website (www.dmec.org) and The Hartford's website (www.groupbenefits.thehartford.com). Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. ING U.S. Insurance introduces Spanish-language customer service ING has introduced a Spanish-language option for customers calling into its service centers for its U.S. Insurance division. Customers with individual life insurance and group life, group disability and other workplace-based insurance policies will have an option to speak to dedicated bilingual call center representatives who can service their account in either Spanish or English. “This is another step in our efforts to meet the needs of the rapidly growing U.S. Hispanic population,” said Catherine Smith, CEO of U.S. Insurance for ING. “The Hispanic market in the United States is diverse in terms of acculturation, language preference and country of origin. To serve it effectively, you need more than just in-language brochures. You need distribution and servicing representatives that understand the different cultures of these customers, and of course, speak their language.” According to research conducted by the industry group LIMRA International, the importance of in-language representation among both Spanish-dominant and bilingual Hispanics was very high, with 94 percent of Spanish-dominant and 75 percent of bilingual respondents feeling it was important to have a Spanish-speaking representative to discuss their insurance needs. The same report, published in 2007 and titled “Targeting the U.S. Hispanic Market,” said that regardless of their language use, Hispanics want bilingual printed material for financial products in order to better understand the products and to share the materials with family and friends. “For customers more comfortable conducting business in Spanish, ING can help them from sale to service,” said X. Rick Niu, ING U.S. Insurance’s chief growth officer. “We’ve expanded our distribution capability and our Spanish-language consumer information. We’ve been involved in supporting the Hispanic communities throughout the U.S., and now we’re making it easier for many of these customers to handle routine policy matters. As a leader in this industry, we feel it is important that companies like ING not only sell insurance products, but provide customers with a high level of service as well.” The Spanish option can be selected during ING’s normal call center hours, with customers dialing the toll-free number appropriate for their policy. ING’s involvement with the Hispanic community includes supporting programs locally and nationally. For the past several years, ING has sponsored the Juntos en Concierto concert series, most recently starring Jennifer Lopez and Marc Anthony. Proceeds from the series benefited the ING Run For Something Better, a kids’ fitness program created by ING that aims to reduce childhood obesity by introducing kids to the benefits of running, physical fitness, and healthy lifestyle choices. In Miami, ING is the title sponsor of the ING Miami Celebrity Domino Night. In addition, the ING Foundation sponsors the Hispanic Scholarship Fund's Steps for Success Saturday program, which offers educational sessions for students and their parents about the importance of college and how to navigate the college and financial aid application process. www.ing.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. New Classes of Business Added to ISA’s Social Service Program February 26, 2008 Rock Hill, NY- Irwin Siegel Agency, Inc. (ISA), a leading specialty underwriter of Insurance package programs for the Social Services field, recently announced the addition of classes to their program. New classes include Head Start Programs, Community Action Agencies, Big Brother/Big Sister Organizations, Boys and Girls Clubs and Non-Profit Rural Transportation for elderly or disabled. www.siegelagency.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. MassMutual to Acquire The First Mercantile Trust Company From SunTrust Banks, Inc. Agreement will expand MassMutual's Retirement Services business; An 'important strategic step forward' SPRINGFIELD, Mass., Feb. 28 /PRNewswire/ -- Massachusetts Mutual Life Insurance Company (MassMutual) today announced an agreement to purchase The First Mercantile Trust Company from SunTrust Banks, Inc. (NYSE: STI). Headquartered in Memphis, Tennessee, First Mercantile provides retirement plan recordkeeping and investment management services nationally to more than 3,100 plans with a total of approximately 140,000 participants. With nearly $5 billion in assets under management as of Dec. 31, 2007, First Mercantile's operations will add complementary products and further scale to MassMutual's existing $40 billion retirement plan business. "With an extensive distribution network that includes a strong base of registered investment advisors, broad and complementary product offerings, and tradition of working closely with clients to offer premier retirement services programs, First Mercantile makes an excellent strategic fit for MassMutual's Retirement Services business," said Elaine A. Sarsynski, Executive Vice President of MassMutual's Retirement Services Division. "This acquisition is an important strategic step forward as we continue to build momentum in the marketplace." Ms. Sarsynski added that collective trusts offered by First Mercantile represent an outstanding opportunity for MassMutual in the important institutional investment market landscape. www.massmutual.com http://www.suntrust.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. NAMIC Testifies Against Connecticut Anti-Insurance Scoring Measure WASHINGTON (Feb. 28, 2008) – The National Association of Mutual Insurance Companies (NAMIC) today warned of potentially higher insurance rates for Connecticut consumers if the state adopts a ban on the use of credit-based insurance scoring to underwrite motor vehicle insurance premiums. The Legislature is considering a measure to forbid the use of credit ratings among auto insurers. “By prohibiting insurers’ use of credit-based insurance scores in the pricing of auto insurance, HB-5151 would hamper insurers’ ability to utilize a valid predictive tool to assess risk and price it appropriately,” said Paul Tetrault, NAMIC’s Northeast state affairs manager. “It would interfere with the efficient functioning of the insurance market, leading to cross-subsidization and higher prices for insureds with good credit histories.” Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. CAMICO Rolls Out Employment Practices Insurance Program REDWOOD CITY, Calif., February 28, 2008 - CAMICO Mutual Insurance Company (www.camico.com), the nation’s largest CPA-owned professional liability insurer, announced it is offering a new Employment Practices Liability (EPL) insurance program that provides comprehensive defense and indemnity coverage for full-time, part-time, and contract workers. The EPL program is being offered in response to growing demand from CPA firms for insurance protection, human resources advice and legal services, says Emily Franchi, loss prevention specialist for employment practices for CAMICO. “There are so many exposures that CPA firms face in today’s workplace,” says Franchi. “Non-discrimination laws alone cover age, gender, sexual orientation, physical or mental disability, medical condition, pregnancy, physical appearance, religion, national origin or ethnicity and race. Additional exposures arise from allegations of harassment, wrongful termination, breach of contract, retaliation, slander or defamation, and failure to hire, train or compensate fairly.” The U.S. Equal Employment Opportunity Commission reports that in 2006 employees nationally filed 75,768 charges, not including litigation, over alleged violations of laws prohibiting discrimination, harassment and retaliation. As federal, state and local employment laws continue to proliferate, firms of all sizes are increasingly vulnerable to employment practices claims and litigation. Large firms are natural targets and suffer the greatest financial losses, notes Franchi, but even small firms are often held responsible for substantial and potentially crippling damages. “It’s becoming more difficult to know how to handle all of the responsibilities of being an employer and what you should or shouldn’t do in a variety of situations,” Franchi says. “Through its EPL insurance program, CAMICO is helping firms with the human resources issues so the firms can concentrate on their business of being CPAs.” Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. MetLife Foundation Donates $2 Million To Help Build The Martin Luther King, Jr. National Memorial (AANEWSWIRE)(Washington, DC, February 29, 2008) – The Washington, DC, Martin Luther King, Jr. National Memorial Project Foundation, Inc. announced today a $2 million donation from MetLife Foundation. Harry E. Johnson, Sr, President and CEO of the Memorial Foundation and C. Robert Henrikson Chairman, President and Chief Executive Officer of MetLife, Inc., joined together for the announcement in Washington, DC. www.buildthedream.org www.metlife.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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