CORAL SPRINGS, Fla.--(BUSINESS WIRE)--The Hurricane Law Group announced today that it has filed a lawsuit in the Circuit Court of the Second Judicial Circuit in Leon County against CFO Alex Sink, Insurance Commissioner Kevin McCarty, the Department of Financial Services and the Office of Insurance Regulation to force the State to enforce Florida laws designed to protect Floridians in the wake of the 2004 and 2005 hurricanes.

The lawsuit alleges that there is substantial evidence to document insurance companies’ violations of both the spirit and the letter of State consumer protection laws by failing to notify homeowners of their statutory right to participate in mediation to resolve hurricane claims (Florida Statute §627.7015). Evidence documents that these violations were committed with the knowledge and approval of the Department of Financial Services and Office of Insurance Regulation.

As alleged in the lawsuit, by systematically depriving homeowners of their right to participate in mediation, insurance companies benefited by hundreds of millions of dollars. This benefit was at the expense of all Floridians and was gained by underpaying claims and saving mediation fees and expenses. This was done with the approval of State agencies entrusted with enforcing the mediation statute and preventing insurance companies’ profiteering by violating the law.

Since July 2007, the Hurricane Law Group has provided State agencies with concrete and undisputed evidence of widespread statutory violations by numerous insurance providers including Allstate, State Farm, Poe Financial Group (Florida Insurance Guaranty Association), and other major insurance carriers.

“We were shocked by the response of senior members of the Department of Financial Services,” stated Paul Berger, Managing Attorney of the Hurricane Law Group. “In essence, they acknowledged the violations and stated on numerous occasions that mediation was too expensive for insurance companies to continue with the program. Rather than upholding the laws of the State and protecting Floridians, these State agencies are protecting insurance companies at the expense of hurricane victims. Floridians were victimized first by the hurricane, then by their insurance carrier, and now by the State,” Mr. Berger stated.

As Governor Crist stated in his January 14, 2008 press release, “For too long, the [insurance] industry has profiteered on the backs of our people. Sometimes, big business can be just as bad as big government.” According to the Hurricane Law Group, in this case, big government and big business are working hand in hand to deprive Floridians of their right to a speedy recovery from hurricanes.

“We at the Hurricane Law Group felt that we had no other choice but to seek protection from the Court for Floridians,” stated Mr. Berger. “Unfortunately, the Governor has refused to intervene on behalf of Floridians, Consumer Advocate Terry Butler has done nothing, and Alex Sink and Commissioner McCarty’s offices have been delaying taking any action on this matter for months, despite admissions of violations of the law by the insurance companies themselves.”

As Commissioner McCarty stated when implementing the mediation program (Informational Memorandum OIR-06-004M), “The failure by insurers to timely process, settle and pay these claims delays the insured’s ability to repair damaged structures or replace lost property.” Now, as alleged in the lawsuit, his Office and the Department of Financial Services have effectively become mouthpieces for the insurance industry, and have eviscerated the system set forth by our legislature to ensure the prompt and fair settlement of claims. We are more than three years past the devastation of Hurricanes Charley, Frances, Ivan and Jeanne, and two years past Hurricane Wilma, yet thousands of homeowners are still struggling to rebuild their homes and lives. It is appalling that Floridians are struggling to rebuild, when hundreds of millions of dollars in claims have been underpaid, and our elected officials have a solution that is readily available and costs the State nothing. The Hurricane Law Group calls for the Attorney General to investigate this matter, for as the lawsuit alleges, it appears that improper influence by the insurance industry has been applied to the highest members of our government.

Hurricane Law Group hopes that the Court will grant the relief sought and require our governmental bodies to enforce the consumer protection laws passed by the Legislature. A small group of politicians and lobbyists should never be able to undermine the will of the people and destroy such a beneficial program. The Hurricane Law Group continues to fight for what is right, even if it means taking on big government and big industry. A copy of the lawsuit is available at the Hurricane Law Group’s website www.hurricanelawgroup.com. 

The Hurricane Law Group is a small private law firm based in Coral Springs, FL. The firm represents policyholders in cases arising out of hurricanes and other natural disasters.

By Steve Slater

LONDON (Reuters) - The Lloyd's of London LOL.UL insurance market's profit rose 5 percent last year as it benefited from a low level of disaster claims, but it warned on Thursday that this had intensified pressure to reduce premiums.

The world's oldest and biggest insurance market reported a 2007 pretax profit of 3.85 billion pounds ($7.6 billion), up from 3.66 billion in 2006.

The 320 year-old market, renowned for specialist cover of anything from kidnapping to protecting the looks of famous film stars, warned its underwriters to restrain their underwriting.

"On the back of a good performance in 2007 we need to sound a note of caution for 2008 because of softening market conditions and because of the financial turmoil we've seen," said Richard Ward, chief executive of Lloyd's.

"The indications are that people are being prudent in what they are doing" by cutting back on writing business, Ward told Reuters by telephone.

Lloyd's combined ratio, a key performance benchmark, weakened to 84 percent from 83.1 percent in 2006.

The combined ratio measures costs and claims as a percentage of premiums, so the further it is below 100 the more profitable underwriting has been. Lloyd's said its ratio compared favorably to averages for U.S., European and Bermudan rivals.

The ratio deteriorated from 82.9 percent in the first half due to claims from forest fires in California and floods in Britain, but 2007 was considered "relatively benign".

The last two years have been a stark improvement on the 103 million loss reported by the market in 2005 after it was hit by huge claims from a string of major hurricanes in the United States and Caribbean.

SUB-PRIME CLAIMS

Lloyd's is likely to face a rise in claims on insurance taken by companies to protect them against lawsuits from investors, after banks have suffered billions of dollars in losses from risky assets linked to U.S. subprime housing.

Luke Savage, Lloyd's finance director, said this is likely to increase claims on directors' liability and 'errors and omissions' policies. But he said the market had cut its exposure to such areas after problems at Enron, WorldCom and numerous technology companies.

"It's a fraction of the size it was and we'd expect any claims to be in an order of magnitude lower than we saw back at the beginning of the decade," he said.

Lloyd's said its return on investments jumped 21 percent last year to just over 2 billion pounds, as a conservative investment stance paid off. But Savage said it was "unlikely" such a good investment return will be repeated this year.

Lloyd's central assets, which underpin its financial strength ratings and would be used to pay claims in the event that syndicates go bust, rose 34 percent to 1.95 billion pounds.

It released surplus reserves of 856 million pounds, up from 270 million in 2006.

The market, where 75 syndicates underwrite cover, has trimmed its 2008 capacity plan to 15.95 billion pounds, from 16.1 billion under last year's initial plan. Its gross written premiums came in at 16.4 billion pounds, near flat from 2006.

(Editing by Louise Ireland)

© Reuters 2008 All rights reserved

NEW YORK, April 3 (Reuters) - The following is the text of the portfolio overview that the Federal Reserve Bank of New York provided on Thursday, describing the assets held by the Fed as collateral for its $29 billion credit line to JPMorgan Chase & Co (JPM.N: ) as part of its deal to buy Bear Stearns Cos (BSC.N: ).

Following is an overview of the portfolio supporting the loan to be extended by the Federal Reserve in connection with the proposed acquisition of Bear Stearns by JPMorgan Chase.

The $29 billion credit extension is supported by assets that were valued at $30 billion by Bear Stearns, which valued the assets at market value on March 14. JPMorgan Chase will extend a subordinated loan for $1 billion that will absorb losses, if any, on the sale of these assets before the Federal Reserve.

The portfolio supporting the credit extensions consists largely of mortgage related assets. In particular, it includes cash assets as well as related hedges.

The cash assets consist of investment grade securities (i.e. securities rated BBB- or higher by at least one of the three principal credit rating agencies and no lower than that by the others) and residential or commercial mortgage loans classified as "performing". All of the assets are current as to principal and interest (as of March 14, 2008). All securities are domiciled and issued in the U.S. and denominated in U.S. dollars.

The portfolio consists of collateralized mortgage obligations (CMOs), the majority of which are obligations of government-sponsored entities (GSEs), such as the Federal Home Loan Mortgage Corporation ("Freddie Mac"), as well as asset-backed securities, adjustable-rate mortgages, commercial mortgage-backed securities, non-GSE CMOs, collateralized bond obligations, and various other loan obligations.

© Reuters 2008 All rights reserved

Designed specifically for small to midsize businesses, Simply Unum provides a base of group disability and life insurance coupled with voluntary benefits. With more than 28,000 product combinations possible, an employer can offer benefit options that best meet the specific needs of their workforce at a price that doesn’t strain the bottom line. It operates on a single technology platform, creating one path from benefit package design to quoting to enrollment to ongoing billing and administration.

“Today’s employees need more of an a la carte selection of benefits so that coverage can be personalized. And their employers want cost flexibility so they can balance the books,” says Mike Simonds, senior vice president of product development and marketing. “We see it as the death of the one-size-fits-all benefits plan. And it’s the inspiration for Simply Unum – a benefits solution with a broad set of product choices, easy tools for administration and pricing flexibility.”

The nationwide launch follows a highly successful pilot phase during which sales for Simply Unum were nearly 60 percent ahead of projections.

“We’ve had exceptional response to Simply Unum from brokers and customers in our pilot markets,” Simonds says. “They are especially pleased with the education and communication support. One-on-one meetings with employees about Simply Unum allow us to discuss the full value of workplace benefits and to help employees understand where there may be gaps in coverage.”

Simply Unum at-a-glance:

·         Increases the choice of products available to employees to fit different life stages and financial situations

·         Provides improved benefits education to help employees make informed financial planning decisions

·         Streamlines enrollment with a fast, paperless process

·         Connects HR personnel to web-based tools for convenient, real-time plan administration

·         Supports online claim filing and provides both the employer and employee with continuous access to the status of the claim

Additional information:

“HR Trends and Challenges: The changing U.S. demographic, economic, and social landscape of the workplace” is available here: http://forms.unum.com/StreamPDF.aspx?strURL=/FMS_068162-1.pdf

Insurance agents who have beta tested the new version are experiencing immediate increases in their sales volume. Greg Hovey of Tucson, AZ said "All the put offs I received in the past, like 'I want to check out your website and then get back to you', 'I need to research you and your company first' or 'I need to talk to my spouse' are being converted to first call closes. The first five prospects that I spoke to using AgentToolbox2 are now my clients. AgentToolBox2 has put me on the cutting edge of technology.  No one company has changed my career more than the Online Agent Network.  Thank you a million times over!”  Billy Jordon of Hermitage, TN said "My closing percentages increased immediately and I became more efficient in my business. With AgentToolbox2, I am able to show my clients the information they need so they are able to make an educated decision about their insurance over the phone. The days of bookmarking sites and keeping folders on my desktop are gone."

AgentToolbox2 is a browser plug-in that is customized for each subscribing agent. After installing the software, a new AgentToolbox icon appears in the menu bar of Internet Explorer. When clicked, links to every resource needed to quickly close the sale become immediately available on the left of the screen. It is like an updated and customized "favorites" panel containing a combination of broker logins, quoting logins, brochures, prospectuses, provider lookups, underwriting guides, carrier website links, contact information and much more.

AgentToolbox2 works in a face to face appointment or together with a web conferencing service in a telephone presentation. The agent's credibility is established during the sales call by providing tangible proof to skeptical consumers that the agent represents the best available products in their market.

AgentToolbox2 saves considerable time by eliminating the need to hunt for documents or links on a website, hard drive, desktop or favorites. The ease of having everything relating to a carrier in one, easy to access, place keeps the agent in control of the sales call. The end result is agents save time and energy while keeping even the most impatient prospect engaged during the sales process. The norm is for the sale to be made and the application taken during the first call.

To learn more or to join the many successful agents around the country that have doubled & tripled their closing percentages: www.onlineagentnetwork.com/agenttoolbox2   

NEW YORK, April 3 (Reuters) - Billionaire investor George Soros said the financial crisis is the worst since the Great Depression and the markets will fall once more this year after a brief rebound, Bloomberg News reported on Thursday.

"We had a good bottom," Soros told Bloomberg, referring to Wall Street's rally following JPMorgan Chase's (JPM.N: ) deal to buy beleaguered Bear Stearns Cos (BSC.N: ).

"This will probably not prove to be the final bottom," he told Bloomberg, adding the rebound may last anywhere from six weeks to three months as the U.S. moves closer to a recession.

Soros told Bloomberg he recommends the creation of an exchange with a sound capital structure and strict margin requirements, where current and future contracts could be traded.

He also said banks must control their own borrowing and curtail lending to clients such as hedge funds by demanding greater collateral and margin requirements on loans. (Reporting by Justin Grant)

© Reuters 2008 All rights reserved

As the population ages, more and more people will require long-term care services. The aging population should create a great opportunity for nursing homes to increase profits, right? Wrong! In 2006, about 43 % of nursing home expenditures were paid by Medicaid 2. Medicaid typically pays only 72 % 3 of what private insurance does for a LTC plan. Therefore, nursing homes that rely on Medicaid alone often end up in bankruptcy.

Nursing homes clearly need more residents who are able to pay a higher rate in exchange for a better level of service. According to the Bureau of Labor Statistics, only 12 % of all workers in private industry have access to long-term care insurance 4. However, a much higher percentage than that will eventually receive some care in a nursing home. In an industry where profit margins are slim, increased use of group LTC insurance would be a great boon to nursing homes.

If the number of people who signed up for private LTC increased, not only would the number of individuals eligible to receive benefits at the nursing home increase, but the reimbursement rates would also rise due to a decrease in the percentage of patients covered by Medicaid. True Group LTC allows more people to get better LTC benefits faster.

Nursing homes can begin by offering True Group LTC to their own employees. This would then allow their employees to receive necessary care in the same community or even the same facility that helped fund their LTC benefits. In this way, the nursing home’s investment in LTC insurance would be returned to it as employees’ eventually needed care. From there, nursing homes could help promote LTC insurance to other employees in their area (perhaps even offering a shared, self-funded pool arrangement).

As illustrated above, it is in the best interest of nursing homes to promote the adoption of private long-term care insurance. Not only would nursing homes reap financial benefits, but they would be able to provide care for millions who would otherwise not be able to receive long-term care benefits.

Note! For an essential perspective about true group long-term care, please refer to the book True Group Long-Term Care by Milliman's consulting actuaries Jon Shreve and Jill Van Den Bos (published by the International Foundation of Employee Benefit Plans). We also provide a variety of resources for true group long-term care, such as informative white papers and articles, on our website at www.milliman.com/denver. 

(LEADER’S EDGE NEWS SERVICE) Agency consolidation hit a new record in 2007 with announced mergers and acquisitions jumping 6% to more than 279, up from 264 in 2006. Public brokers, privately held agencies, private equity groups and, to a certain extent, banks aggressively pursued acquisition candidates.

What drove this M&A activity?

Find out how agencies and brokerages are being priced, who’s buying and who’s selling—and why.

Read all about 2007’s insurance brokerage and insurance agency merger and acquisition activity and analysis by investment experts in the field. To find out more click on:  www.leadersedgemagazine.com/index.htm www.ciab.com

By Laurence Fletcher

LONDON (Reuters) - Exploiting opportunities created by wild market movements, rather than loading up on leverage, will be the key to hedge fund returns this year.

While prime brokers tighten credit lines as the credit crisis unfolds, hedge funds see excellent opportunities arising from panic selling, particularly of credit, by nervous investors -- sometimes even by other hedge funds in trouble.

"We may be able to make our 10 percent plus return by having greater disparities in front of us but less gearing," said Tim Haywood, chief executive and chief investment officer of Augustus Asset Managers.

"I think maybe that's where we're going to spend the rest of the summer."

According to a survey by Britain's Financial Services Authority, leverage fell from more than seven times to less than three times in fixed income arbitrage strategies -- the most leveraged type -- between October 2006 and October 2007.

(Additional reporting by Richard Barley; editing by Sue Thomas)

© Reuters 2008 All rights reserved

Brussels / London / New York, April 2, 2008 - Global law firm White & Case LLP is sponsoring the annual symposium on financial regulation held by Harvard University and the Brussels-based Centre for European Policy Studies.  The symposium, Building the Financial System of the 21st Century: An Agenda for Europe and the United States, will take place April 3-5 at the Weill Center, Armonk, NY.

Topics that the symposium will discuss include: the regulation of pools of capital (private equity, hedge funds and sovereign wealth funds); new principles for regulation of international financial transactions (selective recognition, EU model) and global financial stability and the impact and control of the liquidity and credit crises.  Keynote speakers include Kathleen L. Casey, Commissioner, US Securities and Exchange Commission, and Pierre Delsaux, Director, European Commission.

PORTLAND, Maine – Although the risk of experiencing an income-limiting disability continues to rapidly rise among the American workforce, most workers are not preparing for the potential financial consequences that a disability can create. According to a new survey from the Council for Disability Awareness (CDA), a majority of workers – 56 percent – have never discussed with anyone how they would continue to pay for their living expenses if a disability kept them out of work for several months or longer.

The survey found that while the majority of workers rated their ability to earn a living as the most important contributor to their long-term financial security – three times greater than those who rated retirement savings as number one  –  two in three workers do not even think about disability when they discuss their “financial planning.”  www.disabilitycanhappen.org.

Medical costs per claim with more than seven days of lost time grew throughout the study period, with double-digit growth in four of the five years in the study period, including 14 percent in 2005/2006.

The study by the Cambridge, Mass.-based WCRI also noted that the average total cost per claim in Wisconsin was among the lowest of 14 states – 36 percent lower than the median of the study states for 2003/2006 claims. 

The report may be purchased on the WCRI web site: www.wcrinet.org. 

Prudential Financial can help with those decisions. Its retirement experts have developed 12 practical tips to help you manage financial risks so you don’t see, well, red, in The Retirement Red Zone. And some of these decisions are best made right now, during tax season. This week’s tip marks the seventh in a series that will run through May 6.

Tip No. 7: Evaluate current life insurance needs.

www.prudential.com/retirementincome. 

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