Daily Quote: "To be a success in business, be daring, be first, be different." - - Marchant "Conformity is the jailer of freedom and the enemy of growth." - - John F. Kennedy
Since we opened our unique Volunteers Insurance Service (VIS®) program to other agents, brokers and program administrators in 2005, more than 70 have enrolled their nonprofit customers’ volunteers with us, through our easy-to-use Website: www.cimaworld.com/agent. By doing so, they not only have offered their customers an excellent solution to protecting volunteers, they also have earned new revenue. We pay you 12% commission on new business that you write with us, and on the renewal of that business. Once we receive the initial application, we handle all of the administration. All you need to do is go to www.cimaworld.com/agent. (This is part of the Website of The CIMA Companies, Inc., which administers the VIS® program.) You will see a detailed explanation of the program, and a link to our Producer’s Agreement. The agreement is brief, and once you click on “I Agree” on that page, we have an agreement. At that point, you are ready to complete an online application, which will take you less than five minutes. You can either submit the app online, or print it to mail later. If you have questions, please call Vicki Brooks or Joan Wankmiller at 1.800.468.4200 or email them at vbrooks@cimaworld.com, or jwankmiller@cimaworld.com. We hope you’ll be participating with us soon! 1. Fewer Employers Offer Health Benefits: Study Tue May 1, 2007 9:02AM EDT WASHINGTON (Reuters) - Fewer U.S. employers are offering health benefits, mostly because many new small employers have chosen not to pay for health insurance, the U.S. Government Accountability Office reported on Monday. The GAO found an 8 percentage point drop in the share of small employers offering benefits from 2001 to 2006 and said many employers that offer health benefits now make workers pay a higher share of out-of-pocket costs. Some also have begun offering consumer-directed health plans, which trade lower premiums for significantly higher deductibles, or mini-medical plans that provide more limited coverage at lower premiums, the GAO said. "While the share of large employers offering health benefits remained fairly constant between 2001 and 2006 at about 98 percent, the share of small employers (with 3-199 employees) offering them dropped from 68 percent to 60 percent," the GAO said in its report. "Health policy experts from one organization we interviewed told us this decline is likely due to new employers choosing not to offer coverage rather than existing employers dropping coverage," the GAO added. "Some of these recent changes to health benefits may particularly affect low-wage workers who are less able to afford higher out-of-pocket costs, and less healthy workers who use more health services," added the GAO, which wrote the report at the request of Congress. The workers losing coverage are probably those the least likely to be able to bargain for it, the GAO found. "Survey data indicate that from 2001 through 2005, eligibility for health coverage and the extent to which workers are covered have both declined most among low-wage workers," it said. At least 46 million Americans have no health insurance at all. Government programs such as Medicare and Medicaid provide health insurance for the poor, disabled and elderly. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Identity Theft 911 Releases “Credit Repair Scam” Special Report -- Wave of Fraud Disguised As Identity Theft Resolution Becomes Rising Crime -- SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Identity Theft 911, a leading provider of identity theft resolution and educational services, released today a special report revealing the rising trend of identity fraud in which companies promise to create a new credit history for consumers by filing false documents with credit bureaus claiming the consumer fell victim to identity theft. The special report: “The Dog Ate My Identity: Scammers Using Identity Theft Resolution as Credit Repair,” will post on the company’s Web site, http://www.identitytheft911.org/articles/article.ext?sp=915 today. It is one in a series of ongoing reports from the company to educate and inform consumers on the new, evolving and most profitable form of crime today. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Best's Review: Tech-based Exchanges Are Changing How Insurance Agents and Carriers Transact OLDWICK, N.J., May 1, 2007—Best's Review's cover story, "Exchange Place" reveals how B2B technology is reaching new heights by eliminating administrative frustrations faced by agents and brokers. In the United States, the Council of Insurance Agents & Brokers is supporting the creation of The National Insurance Exchange. Find out how the exchange will move submission and quote processes to a single platform, allowing agents and brokers to enter all information at once and send it to multiple carriers. Across the ocean, the G6 initiative is solving the London's markets trading efficiency problems. G6 is not only a way to improve the market's troubled relationship with technology, but also transfers data and documents electronically to make trading more efficient and brings clarity to the placement of risk. www.bestreview.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. CPCU Society’s CPCU eJournal Explains Captive Insurance Industry’s History, Evolution, And Purpose MALVERN, PA, MAY 1, 2007—The CPCU Society’s May CPCU eJournal, “Captive Insurance Industry—What is it? Where is it? Why is it Important?,” attempts to explain the mysteries of the captive insurance industry in plain English, starting with the history of captive insurance, the differences between captive insurance companies and traditional insurance companies, and the future market for captive insurance. The issue was written by Dennis R. Childs, CPCU, ARM, AMIM, ARe, RPLU, ASLI, MSIM. Childs is currently assistant vice president, commercial lines, product development, for Ohio Casualty Group. He received his CPCU in 1986 and has 35 years of experience in the insurance business in various underwriting and marketing roles with national carriers. Childs holds a B.A. degree from Transylvania University, and an M.B.A. from Boston University, with a specialization in insurance company management. Childs says that captive insurance companies have several definitions, but for the purposes of this article, he uses the following, from Kathryn Westover of the International Risk Management Institute: “A captive insurance company is a company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, the primary beneficiaries of its underwriting profits are its insureds. Beginning with the history of the captive insurance industry—with the first captive formed in Bermuda in 1963—Childs explains the multiple reasons behind the formation and subsequent growth of the captive insurance industry. He says the primary reason for the increase in popularity of this form of insurance was “the failure of the traditional insurance companies to meet the needs of an ever-growing and complex business unit.” Childs also explains where the more popular captive domiciles are located and why captive insurance companies are important to the insurance industry and to commerce in general. Some current market status facts that Childs presents include the following: · There are 4,355 captive insurance companies worldwide. · Bermuda is the leading captive location of domicile, with 1,400 captives. · Currently 65 percent of Fortune 500 companies utilize a captive to meet at least one or more of their insurance needs. · Tillinghast estimates that the captive market now has $30 billion in annual premiums, and $130 million in assets worldwide. Childs concludes with some comments on what the future may hold in this area of insurance, saying “to meet the needs of corporate risk management for innovative and unique solutions to individual risk management, the need for captive insurance solutions will continue.” The CPCU eJournal, a monthly electronic publication available to CPCU Society members, provides a medium for the expression of opinion and the presentation of pertinent articles on subjects of interest to financial services and property and casualty insurance professionals. For more information, please contact Julia Sherwin at the CPCU Society at (800) 932-2728, Ext. 2738. Copies of the May CPCU eJournal can be downloaded from the CPCU Society’s web site at www.cpcusociety.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Genetic Testing and Insurance - Why the Fear of "Genetic Discrimination" Does Not Justify Regulation Gregory Conko and Neil A. Manson April 2007 - It is common knowledge that many diseases have a genetic basis and that the presence of more and more disease-related genetic mutations can be detected with simple tests.) Unfortunately, much of the American public believes that certain diseases are completely determined by one’s genes and that a positive genetic test means doom.) In turn, they fear that insurers will use information of such seemingly great predictive value to deny coverage to, or make insurance much more expensive for, those with positive genetic tests.) Some also believe that employers may use genetic test information to discriminate against employees who are at greater risk of becoming ill.) This has led to calls for government to regulate access to such information in order to prevent insurance companies and employers from engaging in what some have called “genetic discrimination.” Fortunately, it is not true that carrying a genetic mutation for a given disease is a guarantee that the disease will eventually arise.) Most genetic mutations only increase the probability of developing the disease, and most such diseases can be prevented or treated once the carrier knows about the mutation.) Furthermore, it is already illegal for most health insurers to discriminate against potential customers on the basis of genetic test information.) Nevertheless, Members of Congress have introduced legislation to expand current laws that forbid health insurance providers from basing coverage or premium decisions on a customer’s genetic status, and to forbid group health insurers from charging all members of a group plan higher rates based on the genetics of one or more members.) The legislation would also prohibit employers from discriminating against individuals on the basis of genetic information. Despite public perceptions, however, there is no strong evidence that genetic discrimination is currently a widespread problem, or that it is likely to become so in the future.) Numerous investigations into actual underwriting practices show that neither health nor life insurers currently engage in such practices.) The few studies that purportedly document genetic discrimination have not been sound methodologically. They rely solely on patient self-reports with no follow-up to confirm that genetic discrimination actually occurred.) And most such studies give a misleading impression by defining use of family medical history in underwriting decisions as a form of “genetic discrimination.”) Ultimately, Dawn Allain, president of the National Society of Genetic Counselors, told The Wall Street Journal in 2004: “We haven’t seen any real cases of genetic discrimination.” FULL STUDY AVAILABLE IN PDF. http://www.cei.org/pdf/5855.pdf Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. Prospecting Success Is Focus Of Industry Webcast BRYN MAWR, PA – April 30, 2007 – On May 31, 2007, The American College will sponsor a live Field Management Seminar webcast, Success Through Prospecting, for financial professionals across the country. The faculty of The American College created this two hour educational event in conjunction with field managers and executives from financial services companies. This program is open to all financial services management professionals and the webcast can be applied toward the Chartered Leadership Fellow® (CLF®) designation. During this seminar, financial services management professionals will be given the opportunity to learn more about issues arising from prospecting.) Participants will learn about important business growth tools and techniques including:
“Financial professionals enrolling in the Success Through Prospecting webcast will learn about growing and satisfying their clients,” stated Glenn Boseman, DBA, CLU®, CLF®, Roger Hull-James S. Bingay Chair of Leadership and Professor of Leadership at The American College.) “This year’s webcast will provide vital information and unique insights into the challenges of prospecting – information that can help financial service professionals take their practices to the next level of sales success.” Tuition for the live webcast is $125.) For more information or to register for the webcast go to www.TheAmericanCollege.edu and click on the “Prospecting Webcast: May 31” link.) Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Employers Direct To Be Acquired By Alleghany Corporation AGOURA HILLS, Calif.--(BUSINESS WIRE)--Alleghany Corporation (NYSE:Y) has entered into a definitive agreement with Employers Direct Corporation (“EDC”) and its shareholders, primarily Golden Gate Capital and a private equity fund managed by Swiss Re, to acquire all the outstanding shares of EDC for $195.0 million. The transaction has been approved by the Boards of Directors of Alleghany and Employers Direct and is subject to certain closing conditions, including the receipt of regulatory approvals. Upon closing, which is estimated to occur in the third quarter of 2007, Employers Direct will become an indirect wholly-owned subsidiary of Alleghany. EDC's operating subsidiary, Employers Direct Insurance Company, is California's only specialty direct writer of workers' compensation insurance, and currently insures 740 of California's premier businesses with over 130,000 employees. www.employersdirect.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Fireman’s Fund Insurance Announces Strategic Alliance with National Equipment Register NOVATO, Calif.--(BUSINESS WIRE)--The Specialty Insurance segment of Fireman’s Fund Insurance Company today announced the addition of the National Equipment Register (NER) as one of its strategic alliances. National Equipment Register, a searchable national database of heavy equipment that helps authorities track down stolen equipment, has aligned with Fireman’s Fund® to offer discounted rates on products to help mitigate the increasing risk of equipment theft. www.firemansfund.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Online Banking Report Publishes “Mobile Money & Payments: Why Credit & Debit Card Issuers Should Embrace Mobile Delivery Now” SEATTLE--(BUSINESS WIRE)--Mobile banking and payments are looming on the horizon, with U.S. market penetration of 10% expected within four years according to a new report from Online Banking Report. With major players such as Citibank, Bank of America and Wachovia launching mobile initiatives this year, ubiquitous mobile access promises to have a huge impact on the banking and payments industry. By communicating with customers in real-time via mobile devices, card issuers will be able to ratchet up fraud protection and customer service several notches, while simultaneously reducing costs for issuers and merchants. In an insightful new report, “Mobile Money and Payments: Why credit & debit card issuers should embrace mobile delivery now,” respected financial publisher Online Banking Report explores the mobile payment trend in detail. The report looks at the how the market is expected to evolve and how financial institutions should position their mobile offerings. A 10-year market forecast for the United States is included. www.onlinebankingreport.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. New Report from Corporate Insight Examines Mutual Fund Firms’ Online Small Business Retirement Offerings NEW YORK--(BUSINESS WIRE)--The importance of having a proper retirement benefits plan for a small business cannot be understated and the quality of a plan can be the deciding factor in recruiting or retaining valuable employees. Many small business owners turn to mutual fund companies to manage their companies’ retirement plans including 401(k)s, SIMPLE IRAs, 403(b)s for non-profit organizations or profit sharing retirement accounts. Considering the sizeable sum of contributions that can accumulate in a small business retirement fund, it is vital that fund companies provide these customers with at least the same level of online support and guidance made available to an individual investor. www.corporateinsight.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
11. XTF Advisors to Provide Target Maturity ETF Portfolios for Pacific Life Insurance Variable Universal Life Insurance Products XTF to be Exclusive ETF Provider for Pacific Life’s VUL Product Line NEW YORK--(BUSINESS WIRE)--XTF, an asset manager specializing in strategic and tactical asset allocation portfolios composed of exchange traded funds (ETFs), announced today that it is partnering with Pacific Life Insurance Company to provide Target Date ETF Portfolios. XTF’s portfolios will allow Pacific Life’s variable universal life insurance policy owners to take advantage of the steady growth and tactical management that XTF’s products provide. www.xtf.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Nationwide Financial Completes Acquisition of NWD Investment Management Gartmore Funds Now Known as Nationwide FundsSM COLUMBUS, Ohio--(BUSINESS WIRE)--Nationwide Financial Services, Inc. (NYSE:NFS) today announced that it has completed the acquisition of the Philadelphia-based retail operations of NWD Investment Management (formerly Gartmore Global Investments, Inc.) from Nationwide Corporation, a subsidiary of Nationwide Mutual Insurance Company. Starting today, the Gartmore Funds will be known as the Nationwide Funds to better align with the Nationwide brand. Nationwide Financial purchased the business for $240.2 million in cash, subject to an adjustment based on the final April 30, 2007 balance sheet. www.nationwide.com) Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. A.M. Best to Feature Best’s Directory of Recommended Insurance Adjusters at NAIIA Conference OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. will exhibit at booth # 21 at the National Association of Independent Insurance Adjusters annual conference, set for May 9-13 at the Marriott Horseshoe Bay Resort in Horseshoe Bay (Austin), Texas. Visitors to A.M. Best’s booth can speak with company representatives about the benefits of listing in Best’s Directory of Recommended Insurance Adjusters. This printed publication and online resource contains listings for approximately 1,900 adjusting offices qualified in handling insurance industry issues. The Directory also supplies an online Law Digest, contact information for state officials in charge of insurance and motor vehicle affairs, and other useful information, all of which is accessible online at www.ambest.com/adjusters. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. A.M. Best Initiates Public Comment Period on Draft Health-Care Systems Methodology OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best Co. is initiating for 30 days a period for comments from market participants in the health-care system and health insurance industries and other interested parties on a draft for its “Evaluating Health-Care Systems” methodology. The draft document is currently available on the Methodology section of A.M. Best’s homepage. Visit www.ambest.com/ratings/methodology.asp to download a PDF copy. The draft methodology outlines how A.M. Best evaluates a nonprofit health-care system’s creditworthiness, as well as the ability of the system to financially and strategically support its owned or affiliated health and captive insurance companies and to enhance the stand-alone issuer credit and financial strength ratings of its regulated subsidiaries.) Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Travelers Launches OSHA Recordkeeping for Industry-Leading Risk Management Information System RIMS Conference & Exhibition HARTFORD, Conn.--(BUSINESS WIRE)--Travelers (NYSE:TRV) today announced that it will introduce OSHA Recordkeeping, as a new component of e-CARMAR, its proven Risk Management Information System, at the upcoming RIMS (Risk and Insurance Management Society, Inc.) Conference & Exhibition in New Orleans, La.) www.travelers.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. The Flood Insurance Agency Forms Strategic Marketing Alliance with BancInsure, Inc. KALISPELL, Mont.--(BUSINESS WIRE)--The Flood Insurance Agency (TFIA) has entered into an agreement with BancInsure, Inc. wherein BancInsure will market TFIA’s total flood insurance compliance solution to their existing client base of approximately 2200 community banks and will utilize the flood compliance solution to attract new bank clients. TFIA markets FEMA standard flood hazard area determinations, FEMA standard flood insurance policies and FEMA lender placed flood insurance. A new private label program provides BancInsure with a name branded online instant response zone determination website, www.bancinsure.floodcert.com. A second private label program, www.bancinsureflood.com, advertises the BancInsure name and logo on FEMA standard flood insurance policies. A third website, www.MPPPFlood.com, is an automated solution for keeping lenders' loan portfolios in compliance with federal flood insurance regulations. The automated system allows lenders to instantly calculate lender placed flood insurance premiums, print FEMA required warning letters, generate applications to place insurance, and print all documents required to cancel a policy. MPPP policies are the only lender placed policies whose claim payments are funded by the United States Government. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Key Insurance Measures Pass As Indiana Legislative Session Ends INDIANAPOLIS, April 30, 2007 – The American Insurance Association (AIA) today praised the passage of important legislation addressing insurance regulation, seat belt usage and municipal accident response fees by the 115th Indiana General Assembly. “While at times it was a challenging session, key issues of importance to the industry advanced that will help strengthen an already solid insurance market in Indiana,” said John Birkinbine, AIA assistant vice president, Midwest Region. An omnibus insurance bill, House Bill 1452, addressed a multitude of issues of importance to insurers, consumers and the insurance department.)) For example, the bill fixes the formula for calculating insurer assessments to the state’s Second Injury Fund and eases burdensome requirements for workers’ compensation rate and form filings.) It also requires an insurer that reduces or removes coverage in any way to provide the consumer timely written notice. Gov. Mitch Daniels (R) has seven days to sign or veto bills after they have been presented to him, and any bills not signed within that time will become law without his signature.) The aforementioned bills can be accessed via the General Assembly’s website at the following link:http://www.in.gov/apps/lsa/session/billwatch/billinfo) www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. AAIS And Insurance Skills Center Establish Partnership) Wheaton, Illinois, April 29, 2007--A national insurance advisory organization and an insurance training organization have formed a new partnership to provide mutual access to educational and promotional materials.Most notably, the American Association of Insurance Services (AAIS) will provide online access to its farm- and construction-related insurance program resources to the Insurance Skills Center (ISC), a California-based insurance training organization. AAIS develops policy forms and rating information used by more than 600 property/casualty insurance companies throughout the U.S., and ISC sponsors conferences and develops curriculum for P/C professionals to earn the designations of Agribusiness and Farm Insurance Specialist (AFIS) and Certified Construction Insurance Specialist (CCIS). Certain AAIS programs are taught as part of the curricula for those designations, and ISC staff will now have direct access to applicable forms and manual pages over the AAISdirect Internet service. www.insuranceskillscenter.com) www.AAISonline.com) Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. MediView Provides Customers Online Planning, Reporting and Analysis Solutions from Benefit Informatics Online Resources Provide Access to Comprehensive Benefits Information TULSA, Okla.) – In a very competitive benefits administration market, Third Party Administrators seek every technological advantage to offer their clients cutting-edge administrative services. Many are turning to online resources which allow them to transform daily claims data into management information to help their employer group customers monitor current expenses and forecast future employee benefit costs. Austin-based MediView, a division of Covenant Management Systems, LP, is implementing proven online benefit administration solutions from Benefit Informatics to gain a competitive advantage. MediView’s self-insured employer customers now have access to industry-leading analytics, reporting and plan modeling capabilities to manage employee health plans. With Benefit Informatics’ Benefit Analyzer® and ConnecterSM services, MediView offers customers proactive resources which allow them to better understand, predict and lower employee benefit costs. www.benefitinformatics.com)) Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
View INSURANCE NEWSCAST "Sports Pictures Of The Day" View INSURANCE NEWSCAST "Entertainment Pictures Of The Day"
21. New Edition of Free Fraud Newsletter Available The May 1, 2007 issue of Zalma's Insurance Fraud Letter (ZIFL) reveals how insurers are succeeding in the war against insurance fraud. It is available free at http://www.zalma.com .) The current issue covers stories including the "Lawyer's Fraud Conviction Overturned -- Still Convicted of Other Charges;" "Definition of Broker by California DOI Overturned;" "I'm Cured! Doesn't Work -- Case Dismissed;" "Courts Ignore Crime While Punishing Unlicensed Contractor;" "Jeweler's Insurance Fraud Defeated in Florida;""Fake Mold Remediation Lab Results in Conviction;" "Fraudulent Merry Old England;" "More on Asbestos Fraud;" and many stories of fraud convictions. www.claimschool.com) Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. New LTC Insurance Marketing Tool Kit Targets Business Owners & Self-Employed Office Displays and Generic Material Help Agents and Brokers Promote Tax Deductibility Benefits Exclusively Available To Owners Los Angeles, CA - May 1, 2007; When it comes to long-term care insurance, many business owners are still unaware of the significant tax-savings benefits available.) “Business owners have exclusive tax benefits that individuals don't enjoy," explains Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance.) "Corporations can use 100 percent tax-deductible business dollars for long-term care insurance for owners and their spouses.) Owners can select who receives corporate-paid coverage and premiums can be fully pre-paid prior to when the owner's retirement begins." To help agents and brokers market tax advantaged long-term care insurance to their clients who are business owners or self-employed, the American Association for Long-Term Care Insurance (AALTCI) has introduced a Marketing & Sales Tool Kit.)) "The kit contains everything a producer needs to make the sale simple including a 50-minute audio interview with four leading experts who successfully focus on selling to business owners, two highly colorful countertop office displays, generic marketing material and 20 copies of the 2007 edition of the Business Owner's Guide To Tax-Qualified Long-Term Care Protection," Slome explains. "The first producer who promotes and explains the tax deductibility of long-term care insurance to owners has significant sales advantages," Slome notes.) "And, average premiums for policy sales are typically larger because owners of profitable business seek to maximize the tax deductible advantages and let Uncle Sam share in the cost of their benefits.")) The LTC Marketing & Sales Tool Kit is available for $49 to Association members ($89 for non-members) and can be ordered by calling the American Association for Long-Term Care Insurance at (818) 597-3227.)) Established in 1998, the American Association for Long-Term Care Insurance is the industry’s professional trade organization representing over 2,300 long-term care insurance professionals. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Oklahoma Governor Henry Vetoes Major Legal Reform Bill On Saturday, Governor Brad Henry (D), below left, vetoed SB 507, a major lawsuit reform bill that was passed by the Oklahoma legislature after years of intense effort by pro-reform leaders.) Ironically, the bill closely followed Governor Henry's 2004 proposal calling for 28 legal reform provisions, seven of which have been enacted since 2004. According to some observers, Henry made the proposal in 2004 without first getting the support of the plaintiff lawyers that are among his key supporters.) Until this year, Gov. Henry did not have to overtly reject his own proposal because the proposal never made it through the Oklahoma Senate.) In April, advocates had the votes needed and the bill was approved by the Senate 25 to 23 thus bringing it to Gov. Henry's desk. As reasons for vetoing his own proposal, Henry asserted that parts of the bill are unconstitutional and that others would restrict access to the courts by those who are legitimate plaintiffs.) These typically are the reasons cited by the personal injury lawyer associations why every lawsuit abuse reform measure should be prevented from being law.) Governor Henry has indicated he is willing to continue negotiating with legislative leaders to achieve a compromise though it is unclear what will result. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. PIA's Perpetuation Central to Be Presented to Agencies by Motorists Mutual Insurance During Regional Meetings in May WASHINGTON, May 1 /PRNewswire-USNewswire/ -- Agency perpetuation is a key priority for both independent insurance agencies and their carrier partners. That's why Perpetuation Central, a tool to assist agency owners plan their perpetuation activities, is being embraced by Motorists Mutual Insurance Company, which will present it during its regional meetings with agency owners in May. Created by The Partnership, the agency-company group of the National Association of Professional Insurance Agents (PIA), Perpetuation Central is an online reference and resource center for agents to access as they plan and implement agency perpetuation or other forms of agency ownership transfer. www.motoristsinsurancegroup.com www.pianet.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. PIA Western Alliance Continuing Support for National Moisture Management Protocols & Standards A year ago the PIA Western Alliance organized two critical moisture management summits to connect moisture management experts with leaders in the insurance, construction, banking, real estate and other industries. The goal was to establish a task force to push for national standards for moisture and mold management in the construction and remediation industry. From an insurance industry standpoint, the adoption of national standards and protocols mean less risk for companies and more opportunity to write new business. That goal has finally been met. The National Association of Moisture Management Professionals (NAMMP) has been formed and they have agreed upon and set standards and protocols that should be adopted nationwide. They will be announced on Friday, May 18, 2007 at the Palm Springs Convention Center, Palm Springs, California. www.piawest.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Indiana First State to Pass Ban on Accident Response Fees INDIANAPOLIS – A bill to ban municipalities in Indiana from charging accident response fees (House Enrolled Act 1274) flew through the Indiana General Assembly Saturday. Pending Governor Mitch Daniels’ signature, this prohibition is the first of its kind in the nation. Several vendors across the country are touting these fees to cities and towns as a solution to police funding woes. The vendors convince the local governing body to pass an ordinance allowing insurance companies to be billed when police come out to investigate a traffic accident. Because most insurance policies in Indiana do not cover these fees, the bill is passed on to the citizen, who is surprised with a bill ranging anywhere from $200-$500. In Indiana, the towns of Cumberland, in Marion County, and Griffith, in Lake County, have adopted these ordinances. Several others, including Huntington, Indianapolis and Merrillville have rejected these fees. “Hoosiers pay property taxes and other taxes to pay for these basic services,” Insurance Institute President Steve Williams said. “These vendors push some towns to bill their citizens again. This is not appropriate.” Insurance companies have voiced fear that such fees would encourage people to leave the scene of an accident. “An accident victim who is afraid of seeing a $400 police bill may leave the scene of an accident,” Williams said. “Any ordinance that encourages this behavior is bad public policy. The legislature has recognized this and addressed it strongly in HEA 1274.” www.insuranceinstitute.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Narrowing the Gap Between Risk and Mitigation - Swiss Re Brings Topic to the Table at RIMS New Orleans – April 30, 2007 – There’s a growing disconnect between risk and mitigation, and bold action must be taken to address it.) That’s the theme attendees heard at RIMS 2007 during a panel discussion titled “Global Risks: The View from Davos”. Agostino Galvagni, a member of the Executive Board of Swiss Re and Head of the company’s Globals and Large Risks division, addressed the audience and explained Swiss Re’s leadership position in the Global Risk Network of the World Economic Forum and its sponsorship of a groundbreaking and sobering report: “Global Risks 2007.”) The report was unveiled at the World Economic Forum in Davos, Switzerland earlier this year, and Galvagni’s address helped drive the issue home for the risk managers in attendance at RIMS. Galvagni noted that many of the 23 core global risks explored in the report have worsened over the last year.) In his presentation, he introduced the report’s recommendations, which include establishment of Country Risk Officers and formation of a “coalition of the willing” in an effort bring governments and business together to develop and execute mutually beneficial risk mitigation strategies.))www.swissre.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Workers’ Compensation Policy Review - Summary of the Contents – January/February 2007 The employers’ costs of workers’ compensation for employees in private industry declined in 2006, reversing a four-year trend of higher costs, as reported in “Workers’ Compensation Costs for Employers 1986 to 2006,” by John Burton. Workers’ compensation costs as a percent of payroll declined from 2.47 percent in 2005 to 2.36 percent in 2006 in the private sector. There was also a decline in workers’ compensation costs as a percent of payroll in the state and local sector, where costs declined from 1.66 percent in 2005 to 1.63 percent in 2006.) Employers of the most inclusive category of employees – all non-federal employees – also experienced a decline from 2.31 percent of payroll in 2005 to 2.21 percent of payroll in 2006.) In the private sector, the employers’ costs of workers’ compensation in recent years are higher than the recent low of 1.92 percent of payroll in 2001, but are lower than in the period from 1993 to 1996, when costs as a percent of payroll always exceeded 2.8 percent of payroll. The second article, also by John Burton, examines “The Coverage of Work-Related Diseases in New York.”) The topic received considerable attention when workers participating in the World Trade Center rescue, recovery, and clean-up operations were temporarily barred from filing claims because of the statute of limitations in the New York Workers’ Compensation Law.) Burton identifies the restrictive definition of occupational diseases as the primary source of the bar to recovery for these workers.) New York devised a solution for the rescue workers, which Burton views as both questionable for workers affected by the World Trade Center tragedy and of no value to other workers in the state afflicted by work-related diseases. www.workerscompesources.com) Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. MFS College Savings Plan Survey Forecasts Increased Broker Awareness and Sales Activity Resulting from Pension Protection Act BOSTON, May 1 /PRNewswire/ -- College savings in the form of 529 savings plans will receive a significant boost as a result of the recently enacted Pension Protection Act (PPA), according to new research of the 529 plan industry by MFS Investment Management. While 529 plans have been gaining in popularity, there is still a huge gap in 529 plan usage. As reported in FRC Monitor, there are 73.5 million children under the age of 18 in the U.S., yet, only 12.6 percent of that total has opened 529 accounts. In an effort to gauge the trickle down effect of the PPA on financial advisors -- both independent advisors and broker/dealers -- MFS examined the current landscape of 529 plan sales, as well as prospective future sales. The PPA permanently extends the tax benefits of state-sponsored 529 college savings plans, allowing money in these plans to grow tax-deferred, and be withdrawn tax-free, if used to pay for qualified education expenses. Those tax benefits were set to expire in 2010 until the passage of the PPA last month. MFS manages its own 529 plan sponsored by the state of Oregon, and serves as an investment manager for 529 plans in 10 other states, managing a total of $1 billion in college savings assets. MFS used an independent research firm to reach a broad cross-section of the advisor community in order to establish historical sales patterns and determine trends in 529 plan sales based on the PPA. Advisors are embracing 529 plans more than ever According to the MFS survey research, the passage of the PPA has generated considerable enthusiasm among financial advisors. More than 25 percent of financial advisors, who do not currently sell 529 plans, are planning to begin selling the product as a result of the PPA. Additionally, 33 percent of advisors currently selling 529s expect to increase their sales volume. Finally, regional broker/dealers indicate they have emerging interest in 529s; with an older client base, these brokers also forecast greater 529 sales to grandparents hoping to create an education legacy for their families. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. Deloitte Survey: Nearly Half of CEOs Tapping Overseas Talent; Cite Increased Difficulty Finding, Hiring and Retaining Employees However, Plans to Sell into Overseas Markets Continues to Shrink SAN JOSE, Calif., May 1 /PRNewswire/ -- Citing exceptional employees as the key to their success, fast-growth CEOs admit that finding, hiring and retaining qualified employees is their biggest operational challenge. This is a key reason why they are tapping overseas markets for talent, a trend that will increase over the next five years, according to Deloitte's 2007 CEO Survey of the fastest growing companies in North America as ranked on Deloitte's 2006 Technology Fast 500. At the same time, these CEOs are shying away from doing business outside of North America. www.deloitte.com/us Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. UBA Survey: Employers Identify Key Wellness, Employee Education Initiatives; Highlight Current, Desired Benefit Offerings INDIANAPOLIS, May 1 /PRNewswire/ -- Nearly all employers, regardless of size or industry, have a clear interest in expanding initiatives to help employees manage their personal health more effectively, both as a means to lower plan costs and to have a more stable, productive workforce, according to results released today from United Benefit Advisors' (UBA) 2007 Employer Survey. The annual survey polls employers as to the extent and effectiveness of their current and planned wellness and disease management programs, the range of employee benefits offered, the various employee communications strategies in place or contemplated, and employers' wish list for future initiatives in these critical areas. "This year's survey corroborated last year's key finding that there are far fewer differences in either current or desired services among employers in different industry groups or with differing numbers of employees than was commonly assumed," said David LoCascio, UBA's Co-Founder. "The increasing applicability of web-based solutions and the growing sophistication of benefits advisors has leveled the playing field, allowing employers of all sizes to have access to tools and services that were previously available only to large employers." The results are based on the responses of 1,746 employers comprising a representative cross-section of companies across all industry groups, various employee size categories, and regions of the country. Copies of the survey are available for purchase via UBA's website at http://www.benefits.com/. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. Personal Savings Rate Numbers Cause for Concern, According to ShareBuilder CEO First Quarter Figures Show Continued Erosion in Americans' Appetite for Saving Money, ShareBuilder's Jeff Seely Says BELLEVUE, Wash., April 30 /PRNewswire/ -- The United States Commerce Department reported today that the first quarter personal savings rate was negative 1 percent. This figure continues an alarming negative trend, says Jeff Seely, chairman and CEO of ShareBuilder Corporation, parent company of one of the nation's largest online brokerage firms. "The amount of money Americans save as a percentage of their income has been declining for almost two years, and the March figures clearly demonstrate that we're not making any headway," Jeff Seely said. "A recent ShareBuilder survey found that over half of America does not have a financial game plan for their future. In fact, one in four Americans have no savings at all according to the latest retirement confidence survey from EBRI*. Combined with the negative savings rate, this lack of planning for the future could have severe consequences for the average American's retirement security." www.sharebuilder.com) Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 33. John Hancock Tops 401(k) Sales in 2006 John Hancock Retirement Plan Services #1 in Overall Plan Sales in Industry Survey BOSTON, April 30 /PRNewswire-FirstCall/ -- John Hancock Retirement Plan Services (JHRPS) finished 2006 as the #1 overall seller to plans according to the 2006 LIMRA International 401(k) Scorecard.* JHRPS sold contracts to 5,602 plans in 2006. John Hancock Retirement Plan Services also led in sales when measured by new assets, with sales in the under 500 participant segment greater than the total combined asset sales of the number two and three competitors combined.* Dominating the 401(k) market with a market share of over 47% of net plan sales, JHRPS topped every segment of plan sales in the under 500 participant segment including the 250-499 participant segment. The LIMRA 401(k) Scorecard is comprised of 18 providers to 401(k) plans. LIMRA International is a worldwide association providing research, consulting, and other services to nearly 850 insurance and financial services companies in more than 60 countries. LIMRA was established in 1916 to help its member companies maximize their marketing effectiveness. www.manulife.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 34. Claimetrics Blasts TPA Industry, Calls For Change Release of Controversial Document Targeting RIMS Attendees "From Dinosaurs to Innovators:) A New Era for Our Industry" (New Orleans) – Claimetrics, the dynamic results-driven claims management company launched yesterday, isn't wasting any time in shaking up the industry.) Today, at the trade show of the Risk and Insurance Management Society, Claimetrics distributed a controversial document on TPAs who "rely on antiquated technology, outdated processes and attitudes based on past success." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 35. Pru gets less than expected from Egg sale to Citi LONDON, May 1 (Reuters) - Prudential Plc (PRU.L: ) has completed the sale of its troubled Internet banking unit Egg to Citigroup (C.N: ) for 546 million pounds ($1.1 billion) -- nearly 30 million less than it said in January it expected to get.) Britain's second-biggest listed insurer agreed to sell Egg for 575 million pounds four months ago but a slide in the bank's net asset value between Dec. 31, 2006, and when the sale was completed caused Pru to net less money than it had hoped. Reporting by Simon Challis Editing by David Holmes ($1=.4995 Pound) )(C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 36.
The Government
Accountability Office (GAO) today released the following reports,
correspondences and testimony: Financial Market Preparedness:)
Significant Progress Has Been Made, but Pandemic Planning and Other
Challenges Remain.) GAO-07-399, March 29. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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