INSURANCE NEWSCAST "Headlines Only Edition" for: Tuesday, 05/29/07

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INSURANCE NEWSCAST can be read online at www.insurancebroadcasting.com

INSURANCE NEWSCAST "Headlines Only Edition" for: Tuesday, 05/29/07

Here is a quick look at the stories that will be in Friday's INSURANCE NEWSCAST.

1) Life Insurers Endorse Optional Federal Charter (OFC) Legislation

WASHINGTON, May 24 /PRNewswire-USNewswire/ -- The American Council of Life Insurers (ACLI) strongly endorses legislation that would modernize insurance regulation and establish the framework for nationwide, state-of-the-art consumer protection.

S. 40, The National Insurance Act of 2007, introduced by Sens. John Sununu (R-NH) and Tim Johnson (D-SD), is truly landmark legislation that would modernize our nation's insurance regulatory system, said Frank Keating, president & CEO of ACLI. The legislation would establish a dual-chartering system of regulation for insurers and producers, akin to the system for other financial institutions that has served our country sowell for over a century, he said.

2) AIA Hails Introduction Of Optional Federal Charter Legislation

Legislation Is Rooted in Free-Market Principles and Would AllowCompetition to Flourish

WASHINGTON, D.C., May 24, 2007 ? American Insurance Association (AIA) President Marc Racicot today applauded Sens. John Sununu (R-NH) and Tim Johnson (D-SD) for reintroducing ?The National Insurance Act of 2007,? important legislation that would modernize insurance industry regulation by providing an optional federal charter (OFC) for insurers.

?The OFC legislation is critical because it is rooted in free-market principles, and would allow competition to flourish,? stated Racicot.  ?Consumers would be empowered by market-based regulation that would allow insurers to customize products and meet consumer needs more quickly, while retaining strong federal regulatory oversight of market behavior and financial condition.?

3) Willis Supports Optional Federal Charter Bill

New York, NY, May 24, 2007 ? Willis Group Holdings (NYSE: WSH), the global insurance broker, applauds Senators Tim Johnson (D-SD) and John Sununu (R-NH) for their leadership in introducing the National Insurance Act of 2007 today in the United States Senate. This act aims to allow insurers, agents and brokers to operate under an Optional Federal Charter and to modernize the current fragmented insurance regulatory system.

?Insurance has grown to become not only a national but a global financial service,? said Joe Plumeri, Chairman and CEO of Willis.  ?As such, it needs a regulatory structure that matches its scope and leads to an efficient, solvent and innovative financial sector. The Financial Services Authority in the UK has taken steps toward that goal and I commend Senators Johnson and Sununu for advancing the debate in the United States Senate.?

4) RIMS SUPPORTS OPTIONAL FEDERAL CHARTER LEGISLATION

Washington D.C. ? May 24, 2007 ? The Risk and Insurance Management Society, Inc. (RIMS) supports the efforts of Sen. John Sununu, R-New Hampshire, and Sen. Tim Johnson, D-South Dakota, in their reintroduction today of insurance regulatory reform legislation. The National Insurance Act of 2007 would create an optional federal charter, allowing insurers operating under multiple state jurisdictions to choose to be regulated at the national level.

?RIMS has long supported the concept of an optional federal charter,? says Terry Fleming, member of RIMS board of directors and director of risk management for Montgomery County, Maryland. ?We look forward to reviewing the bill so that we can endorse it in its current form or offer suggestions for enhancements.?

5) NAILBA Applauds Optional Federal Charter Legislation

(Fairfax, VA) Senators John Sununu (R-N.H.) and Tim Johnson (D- S.D.) introduced today the National Insurance Act of 2007, which establishes an Optional Federal Charter (OFC).  Under their bill, insurers operating under multiple state jurisdictions could choose to be regulated at the national level under an OFC. 

 ?A more uniform regulatory environment is long overdue,? stated NAILBA Chairman John W. Felton, IV. ?This legislation establishes an optional national system of regulation that would make it possible for insurers to offer consumers in all states the same menu of products and services?ultimately giving you more timely access to improved and innovative products.?

6. PIA Testifies on Health Insurance Issues at Hearing of House Small Business Committee

WASHINGTON, May 24 /PRNewswire-USNewswire/ -- What drives the availability of health insurance among small businesses is cost, according to the National Association of Professional Insurance Agents (PIA). Testifying at a hearing before the House Small Business Committee, PIA member Steven J. Harter said group health coverage is not hard to find, but finding it at a cost that is affordable to small businesses is the major challenge.

"The overwhelming driver of insurance cost is the high demand for medical services coupled with the skyrocketing costs of health care, including prescriptions," Harter said. "Today as a nation, we are healthier han ever before. Part of the reason are the advances in medical treatment, which of course add to the cost."

7) Rising Health Care Costs Worrying Workers, Watson Wyatt Survey Finds

WASHINGTON, May 24 /PRNewswire-FirstCall/ -- Rising health care benefit costs are causing considerable angst among U.S. workers, according to a new survey by Watson Wyatt Worldwide, a leading global consulting firm. However, most workers say they are willing to improve their own health to help control future costs and prepare themselves for a more enjoyable retirement.

In its survey of nearly 2,100 U.S. workers, Watson Wyatt found that more than half (51 percent) of respondents are highly concerned that they won't be able to pay for health care coverage when they retire. More than one-third (35 percent) of respondents are concerned that a major medical expense would ruin them financially. Many workers are also worried about the impact of rising costs in the near term. Two in three (68 percent) believe their deductibles and copayments will increase in the next two years; more than half are worried that their employer will reduce their health benefits coverage.

8) Locke Liddell & Sapp LLP and Lord Bissell & Brook LLP Announce Plans to Merge

HOUSTON--(BUSINESS WIRE)--Texas-based Locke Liddell & Sapp LLP and Lord Bissell & Brook LLP, a national firm headquartered in Chicago, have signed a Preliminary Term Sheet to merge the two law firms. If a merger is consummated, the combined firm, Locke Lord Bissell & Liddell LLP, will have approximately 700 attorneys with offices in Atlanta, Austin, Chicago, Dallas, Houston, London, Los Angeles, New Orleans, New York, Sacramento and Washington, D.C.

9) Committee on Energy and Commerce Requests Long-Term Care Insurance Information

 ALLENTOWN, Pa., May 24 /PRNewswire-FirstCall/ -- Penn Treaty American Corporation (NYSE: PTA) today announced that, based upon a recent New York Times article on long-term care insurance practices, the U.S. HouseCommittee on Energy and Commerce has requested information from various participants in the long-term care insurance industry, including Penn Treaty.

Penn Treaty, an industry leader for over 35 years, appreciates the Committee's efforts and sees this as an opportunity to highlight the value of long-term care insurance to America's seniors. Penn Treaty maintains an excellent claim paying record and is dedicated to improving the quality of life for our nation's seniors. The company has built its reputation as an industry leader with policyholders and agents due to its strong record of approving and paying claims expediently and fairly.

10) New Report Shows Malpractice Insurers Price-Gouging Doctors and Driving Up Cost of Care

Report faults excessive premiums, not so-called 'malpractice crisis'

WASHINGTON, May 24 /PRNewswire-USNewswire/ -- The American Association for Justice (AAJ) today released a report revealing the medical malpractice insurance industry has been price-gouging doctors through excessive premiums and needlessly contributing to the growing cost of healthcare.

Written by former Missouri Insurance Commissioner Jay Angoff, the study is based on recent annual reports from the top 15 medical malpractice insurers as rated by A.M. Best. The report shows that these insurers artificially raised doctors' premiums and misled the public about the nature of malpractice claims -- asserting that a so-called "malpractice crisis" exists. The report puts the lie to that claim.

11) A Majority of Japanese Insurers are Pursuing New Customer Strategies Due to the Emerging Role of Banks as Distribution Channels, According to Accenture Study

TOKYO--(BUSINESS WIRE)--Most Japanese insurance companies are now pursuing new customer and product strategies due to regulatory reforms that are opening the banking sector as a distribution channel for insurance products, according to an Accenture (NYSE: ACN) survey of senior executives at one-third of the insurance companies operating in Japan.

More than two-thirds (67 percent) of Japanese insurers surveyed said that they would pursue new customer strategies and three-quarters (76 percent) said they would pursue new product strategies as a result of regulatory reforms that come into full effect next year, allowing banks in Japan to distribute insurance products. The sale of insurance products by banks is also known as ?bancassurance.?

12) American Physicians files for public offer of 2.3 mln shares

May 25 (Reuters) - American Physicians Service Group Inc. (AMPH.O: Quote, Profile, Research said it has filed with U.S. regulators for a proposed public offering of 2.3 million common shares. The company intends to contribute about $10 million of its net proceeds to American Physicians Insurance Co., its medical professional liability insurance company, to strengthen its capacity to underwrite insurance risks, and will use the remainder for general corporate purposes including possible acquisitions.

13) Concentra Acquires Assets Of United Occupational Health Centers, Inc.

ADDISON, Texas, May 24 /PRNewswire/ -- Concentra Health Services, Inc. ("Concentra" or the "Company") today announced that it has acquired the assets of United Occupational Health Centers, Inc. d/b/a Lubbock Occupational Health Center ("LOHC"). Based in Lubbock, Texas, the acquisition marks Concentra Medical Centers' initial entry into the Lubbock community and will expand the company's geographic footprint to 40 centers in Texas.

14) ACE Targets Private Firms with Enhanced D&O Cover

LONDON--(BUSINESS WIRE)--In a move targeted at small and medium size private companies, ACE European Group (ACE) has extended its Directors and Officers (D&O) coverage to provide protection for the company itself, in addition to executives and business owners. The inclusion of ?Entity? cover within its Elite D&O wording, together with a simplified level of indemnity enables ACE to offer a more cost effective and relevant policy for private companies.

15) Navigators Launches Specialty Program Division

NEW YORK--(BUSINESS WIRE)--The Navigators Group, Inc. (NASDAQ:NAVG) today announced that its principal underwriting agency subsidiary, Navigators Management Company, has established the Specialty Program Division. The Division will focus on developing portfolios in a variety of specialty industry niches produced through program administrators. Products underwritten by the Division will include property, general liability and commercial automobile insurance.

16) J-POWER Announces Joint Venture with John Hancock

CHICAGO, May 24 /PRNewswire/ -- Chicago area based J-POWER USA Development Co., Ltd. has reached agreement with John Hancock Life Insurance Company on the formation of a US joint venture to be called J-POWER USA Generation. The venture will initially have 1200 megawatts of net generation ownership in the US made up entirely of long-term contracted assets. The ongoing plan for the venture will include acquiring additional existing, largely contracted, non-regulated assets in the U.S. market with an overall goal of 2000 to 4000 megawatts of net ownership by 2010. In addition, the joint venture will aggressively begin developing generation on a green field and brown field basis, with contracted off-take. J-POWER will take an active role in all aspects of the business.

17) John Hancock Enables Producers to Complete Life Insurance Applications Electronically

BOSTON, May 24 /PRNewswire-FirstCall/ -- John Hancock has enhanced its JH Illustrator software system, making it now possible for producers to complete life insurance applications electronically. Building on an application wizard added to the software system last year, John Hancock has essentially eliminated all handwriting -- except for the producer and client's signature -- from the application process.

19) AEGON N.V. Announces Execution of Share Buy-Back

 THE HAGUE, The Netherlands, May 25 /PRNewswire-FirstCall/ -- With reference to our press releases dated March 8, 2007 and May 16, 2007, AEGON N.V. (LSE: AGN; NYSE: AEG) announces that it has mandated the buy-back of AEGON N.V. shares. The purpose of the buy-back is to neutralize the dilution effect of the 2006 final dividend paid in shares. AEGON N.V. will repurchase 11.6 million common shares. The buy-back will be completed before June 30, 2007.

20) Meadowbrook Insurance files $125 mln shelf offer

WASHINGTON, May 24 (Reuters) - Meadowbrook Insurance Group Inc. (MIG.N: Quote, Profile, Research on Thursday said it may periodically sell up to $125 million in common and preferred stock and warrants.

21) Life Settlement Awareness Month? To Include Continuing Education Course on Life Settlements

SAN DIEGO--(BUSINESS WIRE)--The life-settlement market is growing rapidly, and insurance professionals serving senior clients in this industry are calling for educational resources to help them understand the ever-changing landscape of life settlements.

As part of Life Settlement Awareness Month in June, Life Settlement Solutions ? the founder and presenter of Life Settlement Awareness Month ? will offer one of the first certified continuing-education courses on life settlements, covering fundamental and advanced topics. At present, the course has already been approved for 3 to 8 credit hours for life insurance licensing continuing education in 32 states.

22) Consumers Life(R) Enters Wisconsin Group Health Insurance Market

CLEVELAND, May 24 /PRNewswire/ -- Consumers Life Insurance Company is now offering group health insurance products in Wisconsin to groups of 2-99 eligible employees. Consumers Life group plans offer a wide range of deductibles, affordable monthly premiums, prescription drug coverage and access to extensive Consumers Life provider networks. Consumers Life has partnered with the HealthEOS by Multiplan(R) and First Health networks of doctors and hospitals in Wisconsin.

23) NJ State Municipal Prosecutors Association Endorses Proformance Insurance

 FREEHOLD, N.J., May 24 /PRNewswire/ -- The New Jersey State Municipal Prosecutors Association, which represents more than 300 attorneys, has officially endorsed the personal lines products of The Proformance Insurance Company to members of its organization. Proformance Insurance will offer automobile and homeowners policies, as well as specialty property liability coverage to members of the New Jersey State Municipal Prosecutors Association at a discount.

24) Guardian Joins Industry Campaign to Build Awareness About the Need for Disability Insurance

NEW YORK, May 24 /PRNewswire/ -- The Guardian Life Insurance Company of America (Guardian) has teamed up with the Life and Health Insurance Foundation for Education (LIFE) in support of the inaugural Disability Insurance Awareness Month. Disability Insurance Awareness Month is an industry effort to build consumer awareness about the importance of disability insurance.

According to the LIFE Foundation, nearly 1 in 5 Americans will become disabled for 1 year or more before the age of 65. And Guardian research shows that 50% of consumers have three months or less of their living expenses saved. Of those with three months or less saved, 29% admit that they don't have enough savings to cover any of their living expenses if they have to stop working.

25) Conseco Announces Plans to Refinance Credit Facility

CARMEL, Ind., May 22 /PRNewswire-FirstCall/ -- Conseco, Inc. (NYSE: CNO) today announced that it has engaged Banc of America Securities LLC and J.P. Morgan Securities Inc. to act as lead arrangers and joint bookrunners in connection with the amendment of its senior secured Credit Agreement, which currently has a remaining outstanding balance of $671.6 million. The amendment is expected to provide for, among other things, a $200 million increase in the principal amount of the facility and revised financial covenants which would allow, among other things, the Company to repurchase up to $300 million of its common stock over the life of the facility. The proceeds of approximately $200 million are expected to be used for general corporate purposes including the repurchase of Conseco common stock and the strengthening of the capital of the Company's insurance subsidiaries.

26) ARK Syndicate Management Chooses Rms® Catastrophe Modeling Software

Newark, Calif. - May 23, 2007 - Ark Syndicate Management has entered into an agreement with Risk Management Solutions (RMS), the world's leading provider of products and services for catastrophe risk management, to license its RiskLink® catastrophe modeling platform.  Ark will use RMS peril models as part of a holistic approach to understanding catastrophe risks and accumulations, and to report its exposures as it sets about developing its global portfolio of insured risks.

27) Dodge & Cox reduces its holding of Converium's registered shares to below 5%  Disclosure of shareholdings pursuant to Art. 20 SESTA

Zug, Switzerland - May 24, 2007  - Converium Holding Ltd has been notified that Dodge & Cox, 555 California Street, 40th Fl., San Francisco, CA 94104, U.S.A., has reduced its holding of registered shares of Converium Holding Ltd, Zug to below 5%.

28) David Macchia's Blog Features Moshe A. Milevsky, International Authority on the Interplay Between Financial Risk Management & Personal Wealth Management

HINGHAM, MA -- (MARKET WIRE) -- May 23, 2007 -- In a far reaching, one-of-a-kind interview with Wealth2k® CEO, David Macchia, Moshe A. Milevsky, PhD., shares his expert insight on a variety of timely issues facing the retirement income and financial services industries. Milevsky, Executive Director of the Individual Finance & Insurance Decisions Centre (IFID), is an international authority on retirement issues and an associate professor of finance at York University. A bestselling author, he has written over 40 scholarly research articles and his views are regularly sought out by prestigious business journals.

29) Back in Action: The Hartford Dedicates Team of Specialists to Help Disabled Employees Return to Work

SIMSBURY, Conn.  ? In an effort to boost U.S. workers? health and productivity, The Hartford Financial Services Group, Inc. (NYSE: HIG) has created a specialized team of clinical professionals to facilitate disabled employees? safe return to the workplace.  The Hartford, a group disability insurer has also developed a return-to-work roadmap ? a step-by-step guide on creating programs to transition sick or injured employees back into the workforce.

 

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