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Friday
07/25/08 |
Your Insurance News "Strategic
Relationship"
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Read online at
www.insurancebroadcasting.com.
Read daily by
over 450,000 insurance industry
subscribers.
Walt Podgurski, CLU, CES, Publisher & Editor
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© Copyright Notice
- the information on this page is protected by the copyright
laws - all rights reserved.
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The best way to insure volunteers of nonprofit organizations is also
the easiest.
There’s one more good reason, too –
new revenue for your firm! |
That’s why more than 100 agents, brokers and program
administrators are participating in our Volunteers Insurance Service (VIS®)
program. When you enroll the volunteers of your nonprofit customers
through our easy-to-use Website,
www.cimaworld.com/agent, you not only provide your
customers an excellent solution to protecting their volunteers, you also
earn 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.
VIS® at a glance – For over 40 years,
we have been offering protection for the volunteer workers of nonprofit
organizations. The following coverages are available, separately or in
any combination:
Accident medical
reimbursement -- $25,000 limit, $3.75
per volunteer per year;
Volunteer liability
-- $1,000,000 limit, $1.72 per volunteer per year
Excess auto liability
-- $500,000 limit, $6.04 per volunteer per year
More than 2.5 million volunteers – working for more
than 5,000 nonprofit organizations -- are insured with VIS®. Policy
premiums range from a few hundred dollars to as much as $20,000 for the
larger nonprofits.
Why our program can be the best way to cover
volunteers -- Insuring volunteers through VIS® is a better
solution in most cases than including them on the organization’s own
general liability policy, for three reasons:
Our program
includes coverage for the volunteers’ travel between home and their
place of work;
It includes
coverage for claims made by one volunteer against another;
By insuring
volunteers separately, the organization reduces the risk of sharing
its own limits of insurance with its volunteers.
VIS® also can be a better alternative than
including volunteers on a workers’ compensation policy, because:
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Volunteers are
covered while traveling to and from their volunteer activities, not
just while volunteering.
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If
they are injured it won’t affect the organization’s claims
experience.
As far as automobile liability is concerned, the
organization’s own policy usually does not provide protection for
volunteers using their own vehicles. Our policy provides excess
automobile liability coverage over and above the volunteers’ personal
automobile coverage. Our excess automobile liability policy can be
critical, if a volunteer is involved in a serious accident.
Not only the best way, but also the easiest
way, to cover volunteers --
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!
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Daily Quote:
"The manifesto
of the dealmaker is simple; reality is negotiable." - - Timothy Ferriss
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We are Chipping Away at the
Limited Nature of Mini-Med Plans!
Telephone Medical Consultation from CallMD —
A new value-added benefit to all Foundation One plans
effective September 1st!
- CallMD provides a nationwide network of medical doctors
available for four free telephone consultations and, if
appropriate,
for the issuing of non-narcotic prescription drugs.*
- Members have access to doctors for routine medical needs
without having to take the time to go to a doctor’s office.
- Employers have found this to be a popular employee benefit,
and
a substantial advantage for the company. By enabling
employees
to connect to a doctor from home or work, absenteeism and
sick
leaves are reduced, and overall productivity improves.
- Service is available 24 hours a day, 7 days a week.
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Call us today for
more information: 877-712-4004, ext. 3
website: www.found1ins.com
email: info@found1ins.com
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Limited
Benefit Healthcare Solutions Since 1999 |
Foundation One Security is
underwritten by: American Fidelity Assurance Company,
Oklahoma City, OK.
Policy limitations and exclusions apply.
CallMD is not part of the fully insured benefits provided by
American Fidelity Assurance Company.
*Some states do not allow CallMD physicians to issue
prescriptions. |
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1.
Tokio Marine To Buy
Philadelphia Consolidated Holding Corp (PHLY.O) For $4.7 Billion |
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By David Dolan
TOKYO (Reuters) - Tokio Marine Holdings Inc (8766.T) will buy
property and casualty insurer Philadelphia Consolidated Holding
Corp (PHLY.O) for about $4.7 billion, in the largest acquisition
by a Japanese financial firm in the United States.
Japan's largest
property and casualty insurer said it would pay $61.5 in cash
for each share of Philadelphia Consolidated, a 73 percent
premium to Tuesday's closing price of $35.55.
Saddled with
sluggish growth at home and unburdened by subprime investments,
many cash-rich Japanese firms are once again hunting for
opportunities abroad.
Fox-Pitt Kelton
Cochran Caronia Waller was the financial adviser to Tokio
Marine, while Merrill Lynch (MER.N) assisted Philadelphia
Consolidated.
(Reporting by
David Dolan, Yumiko Nishitani, Nathan Layne and Elaine Lies;
Editing by Hugh Lawson/Rory Channing)
© Thomson Reuters 2008 All rights reserved |
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2. State Insurance Regulators Levy $20 Million
Fine Against HealthMarkets |
KANSAS CITY, Mo. (July 24, 2008) — State insurance regulators, working
together through the National Association of Insurance Commissioners (NAIC),
today announced the details of a $20 million regulatory settlement
agreement between 29 jurisdictions and HealthMarkets, Inc., and its
affiliated companies, MEGA Life and Health Insurance Company, Mid-West
National Life Insurance Company and Chesapeake Life Insurance Company.
The regulatory settlement follows a three-year multi-state exam that
found multiple problems involving consumer disclosure, oversight and
training of agents, claims handling and complaint-handling practices.
HealthMarkets faces up to $10 million in additional penalties if it
fails to meet performance standards outlined in the settlement.
The multi-state examination was initiated by Washington State Insurance
Commissioner Mike Kreidler and Alaska Insurance Director Linda Hall in
2005 and coordinated through the NAIC’s Market Analysis Working Group.
“This is a good multi-state settlement that addresses some serious
violations of our consumer protection laws,” said Montana State Auditor
John Morrison, who chairs the NAIC Market Regulation and Consumer
Affairs Committee. “By coordinating our efforts through the NAIC, we are
better able to expedite a collective regulatory response that protects
consumers on a nationwide basis.”
According to the terms of the settlement, the companies must implement
an outreach program that includes the following:
Sending a notice to all policyholders with policies issued prior to Aug.
1, 2005, that includes a toll-free number, mailing address and e-mail
address where policyholders can ask questions about their coverage. The
notice also must include a Web site address for each company.
Ensuring each method of communication is staffed by someone able to
provide detailed information about the policyholder’s specific plan.
Establishing a Web site with a “frequently asked
questions” section, general coverage descriptions, a listing of contact
information and information on how to appeal a claim or file a
grievance.
In addition, the companies must report progress twice a year through
Dec. 31, 2009, on performance standards targeted for improvement. Led by
Washington, the other states involved in overseeing the insurer’s
ongoing activities are Alaska, California and Texas.
There are 13 areas in need of improvement, including:
Agent training and oversight
Claims handling
Identification of company
Transparency of the companies’ relationship with associations
Complaints and grievances
Cancellation, nonrenewal and discontinuance notices
Establishing and maintaining a compliance program
The multi-state examination was initiated as a
collaborative action under a single umbrella through the NAIC because
the companies were the targets of separate investigations and consumer
lawsuits in several individual states. Although violations were
documented and fines levied in individual state exams, the companies’
actions and complaint histories had not significantly improved at the
time the multi-state examination was initiated.
The examination covers a five-year period ending Dec. 31, 2005, and
stemmed from the volume, scope and nature of complaints made against the
companies by consumers in many states.
According to the findings, the companies targeted their sales to
self-employed individuals and sold the health plans through
associations. MEGA agents sold policies through the National Association
for the Self-Employed (NASE), and Americans for Financial Security (AFS).
Mid-West agents sold plans through the Alliance for Affordable Services
(AAS). In many instances, the agent or the company did not adequately
explain the benefits covered by the health plan.
The $20 million penalty will be divided among the participating
jurisdictions based on the companies’ premium volume.
To date, jurisdictions that have adopted the settlement agreement
include: Alabama, Alaska, Arkansas, Arizona, California, Colorado,
Connecticut, District of Columbia, Florida, Hawaii, Idaho, Indiana,
Kansas, Louisiana, Minnesota, Montana, North Carolina, Nebraska, New
Jersey, Oklahoma, South Carolina, South Dakota, Texas, Utah, Vermont,
Washington, West Virginia, Wisconsin and Wyoming. Additional states may
join the settlement before an Aug. 18, 2008, deadline.
Click
HERE for a copy of the regulatory
settlement agreement.
Click
HERE for a copy of the market
conduct examination report.
www.naic.org
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3.
Insurance Commissioner
Poizner Announces Recovery Of $56.25 Million From Continental Casualty
Company Workers’ Compensation Surety Bond For California Insurance
Guarantee Association
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SACRAMENTO – Insurance Commissioner Poizner today announced the
California Insurance Guarantee Association (CIGA) has been reimbursed
nearly $56 million by Continental Casualty Company for payments
previously made to injured workers.
“I’m happy to announce that more than $50 million has been recovered for
CIGA,” said Commissioner Poizner. “This is an example of how the system
is supposed to protect policyholders when insurance companies fail. I
want to thank our legal team for its hard work on the case and saving
ratepayers a potential additional assessment.”
The California Insurance Guarantee Association was created to pay the
claims of insolvent property and casualty insurance carriers that are
licensed to do business in the state of California. After Superior
National Insurance Company (SNIC) failed, CIGA stepped in and paid more
than $500 million in workers’ compensation claims. SNIC had purchased a
$50 million surety bond from Continental Casualty Company (CCC)
guaranteeing the obligations of SNIC. CCC balked at paying the amount
owed. After several years of litigation, the case was successfully
settled with Continental paying the sum of $56.25 million. After
deducting litigation related expenses, the California Insurance
Guarantee Association received nearly $56 million for payments
previously made to injured workers. |
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4.
Great Florida Bank
Offers $50 Million in Federal Deposit Insurance Corporation (FDIC)
Coverage Through CDARS® |
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CORAL GABLES, Fla.--(BUSINESS WIRE)--Great Florida Bank (NASDAQ:GFLB)
announced today that customers can now access up to $50 million in FDIC
insurance coverage at Great Florida Bank. This additional coverage is
available as a benefit through CDARS®, the Certificate of Deposit
Account Registry Service. With CDARS®, Great Florida Bank can provide a
customer with the smartest, most secure and convenient way to invest in
large dollar FDIC-insured certificates of deposit.
“With the ups and downs of the economy and the stock market, CDARS® is
an ideal investment option for customers looking to invest large dollar
amounts in FDIC insured CDs with a competitive return,” stated Gary
Laurash, Great Florida Bank’s Chief Financial Officer and Treasurer.
“FDIC insurance offers our depositors great protection. Since the FDIC
was created in 1933, not one person has lost a single dollar in an
FDIC-insured account.” Laurash continued, “Through CDARS®, depositors
are protected for up to $50 million. Everyone can benefit from this
additional coverage -- retirees, business owners and professionals,
townships and municipalities, nonprofit organizations, those planning
for retirement and really anyone who wants a safe, secure and
FDIC-insured investment. If you have ever heard the saying ‘As safe as
money in the bank,’ you know how valuable FDIC insurance coverage is. At
Great Florida Bank, we are delighted to offer you many times the
coverage that most other banks can,” said Laurash.
CDARS® is a deposit placement service. Deposits placed through the CDARS®
service meet the pass-through insurance coverage guidelines established
through the FDIC. To offer CDARS®, Great Florida Bank belongs to a
special financial network called the Promontory Interfinancial Network,
LLC. When a customer places a large deposit with Great Florida Bank, the
Bank arranges for the placement¹ of funds into CDs issued by other
network member banks -- in increments of less than $100,000 to ensure
that both principal and interest are eligible for full FDIC insurance
coverage. Customers benefit from the ease of working with only Great
Florida Bank, and receiving only one account statement.
For more information, please call 866-514-6900, or visit one of our 28
Solution Centers. Visit
www.greatfloridabank.com to find a location near you. |
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5.
Millions of Americans
Face $100,000-Plus Annual Hit for College and Long-Term-Care Combo |
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LTC Insurance Offers Relief
KIRKLAND, Wash., July 24 /PRNewswire/ -- Millions of American couples
may be in for sticker shock when their kids reach college age. It's not
just the rising annual cost of college, $23,712 for 2007-08, up 6.2%
from last year, for a private four-year institution, according to the
College Board. It's also the escalating cost of long term care for their
parents, their other set of potential dependents. Add today's average
annual cost of nursing-home care -- $77,000, according to the MetLife
Mature Market Institute -- to the college bill and you get a whopping
$100,000-plus!
The current cost of public four-year college is $6,185, according to the
College Board. That brings the college-LTC combo to "only" $83,000, but
the sticker shock is still huge, especially for families trying to
scrimp on college. "Long term care is by far the heavier burden," says
Jonas Roeser, Senior Vice President of Marketing & Operations of LTC
Financial Partners LLC (LTCFP), one of the nation's most experienced
long term care insurance agencies.
"Most couples, and their financial advisors, fail to confront this huge
potential problem," says Roeser. "They anticipate the college bill, but
fail to think about the even bigger bill for long term care." That
oversight could rock the financial foundation of many households, he
believes.
Information on long term care options, including alternative carriers,
is available from Roeser's organization. "We have 530-plus long term
care specialists, licensed in all states, ready to answer questions and
give specific policy advice," he says. The experts may be found at
http://www.ltcfp.com or 866-471-4072.
Roeser's experts also work with couples' financial advisors to include
LTC protection in estate plans. |
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6.
Since You Care Guide:
Becoming an Effective Advocate for Care Available Free from the Metlife
Mature Market Institute |
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WESTPORT, Conn.--(BUSINESS WIRE)--The MetLife Mature Market
Institute® has advice for caregivers about acting on behalf of a loved
one with regard to health care matters. The recently updated guide,
Becoming an Effective Advocate for Care, from the Institute’s series of
Since You Care guides, is available free to the public.
The 20-page booklet has practical advice for those who represent a loved
one and a list of print and online resources with physicians and other
health care professionals, insurance companies, hospitals, nursing homes
and home health care agencies.
“With the many advances in medical care, people with significant health
problems and disabilities can extend their lives for many more years.
Family members will therefore be called upon more and more to advocate
for their loved ones – a task that can be stressful and challenging for
almost everyone,” said Sandra Timmermann, Ed.D., director of the MetLife
Mature Market Institute. “This publication will be useful in answering
questions and providing information on meaningful steps families can
take to effectively communicate their loved one’s needs and make sure
they receive appropriate medical attention and quality care.”
The guide includes advice for: talking with physicians and insurance
company personnel, working with hospital staff and hospital discharge
planners, advocating when a family member is dealing with a terminal
illness or receiving care at home, in a nursing home or assisted living
facility. It also contains two record-keeping tools on which to enter a
care recipient’s health care, insurance and personal information. One
tool lists information that is pertinent to those providing direct care
services, e.g. home health aides. The other has data to be shared with
health care providers, such as emergency personnel, hospitals and new
doctors a care recipient may be seeing.
For a free copy of the Since You Care guide: Becoming an Effective
Advocate for Care, call (203) 221-6580, e-mail:
MatureMarketInstitute@metlife.com, or download the guide from
www.maturemarketinstitute.com, by searching under “All Publications”
and selecting “Since You Care guides” from the drop down menu. You may
also write to request a copy from the MetLife Mature Market Institute,
57 Greens Farms Road, Westport, CT 06880.
For more information about the MetLife Mature Market Institute, visit:
www.maturemarketinstitute.com.
Editor’s note: The Since You Care guide: Becoming an Effective Advocate
for Care is available at:
http://www.maturemarketinstitute.com/; search under “All
Publications” and select “Since You Care guides” from the drop-down
menu.
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7.
New Eastbridge Report
Looks at Voluntary STD products |
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AVON, Conn.--(BUSINESS WIRE)--Voluntary disability has always been an
important part of worksite sales. In fact, in 2007, voluntary short-term
disability accounted for the largest percentage of any single product
sold on a voluntary basis. VSTD sales totaled an estimated $820 million
in 2007.
But strong sales also mean strong competition! Carriers who are serious
about this market must have up-to-date product features, competitive
pricing and underwriting, and some type of “differentiator” that makes
their product stand out from others in the market.
The objective of the 2008 Voluntary Short-Term Disability Plans
Spotlight Report is to help carriers stay current on the ever-changing
voluntary STD market. With this data, carriers can compare their
company’s product features and benefits, underwriting guidelines, and
administrative practices against those of other carriers in the
marketplace.
The report is divided into three sections. The first section provides an
overview of the report’s structure, along with key findings and
recommendations. The second section (Carrier Marketing and Results)
provides general information on each carrier’s results, competitors,
persistency, penetration, competitive challenges, etc. The third section
(Product Details by Carrier) takes a close look at the practices of 24
voluntary short-term disability providers, including:
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Product structure
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Underwriting parameters
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Costs
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Distribution and commissions
[Note: In order to protect the confidentiality of the carriers profiled,
all data is reported anonymously by assigning each carrier a random
number.]
The report is now available for purchase for $4,000. More information
about the report, including the table of contents, is available on the
Eastbridge website (www.eastbridge.com).
To purchase the report, e-mail us at
info@eastbridge.com or phone
(860) 676-9633. |
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8.
Allstate Profit Plunges
On Catastrophe Losses |
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By
Lilla Zuill
NEW YORK (Reuters) - Allstate Corp (ALL.N), the largest publicly
traded U.S. home insurer, said on Wednesday net income plunged in the
second quarter, hit by the highest level of second-quarter catastrophe
losses in its 77-year history.
Catastrophe losses for the quarter rose more than 60 percent to $698
million, fueled by unusually high tornado activity, similar to the first
quarter, as well as a surge in wind and hail storms, Chief Executive Tom
Wilson told Reuters.
After a respite in 2006 and 2007, the United States has been pummeled by
natural disasters so far in 2008. Insurance trade group ISO earlier this
week said second-quarter catastrophes alone were expected to cost
insurers more than $6 billion.
The worst may be yet to come with the third quarter typically the most
active period for U.S. catastrophes. Wilson said Allstate had already
deployed 3 mobile response units to Texas where the second hurricane of
the season, Dolly, came ashore earlier on Wednesday.
Dolly, the second hurricane this year, is stirring concern that the 2008
season could be more active than usual since hurricanes typically form
later in the season, which runs through November.
Since January, Allstate shares have fallen roughly 10 percent, compared
with a decline of more than 23 percent in the Standard & Poor's
insurance index .
(Editing by Mark Porter, Gary Hill)
© Thomson Reuters 2008 All rights reserved |
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9.
New York Insurance
Association Testifies At Producer Compensation Hearing |
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ALBANY, N.Y.— Ellen Melchionni, CAE, president, New York Insurance
Association, Inc. (NYIA) testified at the public hearing conducted by
the New York State Insurance Department and the Office of the Attorney
General on July 23, 2008 in Albany, N.Y.
The joint hearings were scheduled in Buffalo, Albany and Manhattan to
gather information on compensation arrangements for insurance agents and
brokers, specifically covering such issues as contingent and
supplemental commissions, producer compensation disclosure and deceptive
or anti-competitive practices. The Buffalo hearing occurred on July 14,
2008 and the hearing in Manhattan is July 25, 2008.
NYIA provided information on behalf of its property and casualty
insurance company members stressing that disclosure of compensation
should be voluntary as the marketplace is the best determinant of
whether this type of disclosure is valuable and necessary. Two
overarching principles are the basis for NYIA’s viewpoint: the
substantial effectiveness of New York’s current laws, which provide
insurance consumers protection and the proven and numerous benefits of
New York’s competitive marketplace.
NYIA’s testimony is available at the following link:
http://www.nyia.org/php/members/docs/NYIA%27s_Testimony_Brokers%27_Comp_7-23-08.pdf.
A
webcast of the hearings can be viewed at
http://www.totalwebcasting.com/live/nysins/.
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10.
IIABNY Chair tells
Commission: Don’t Lump Us with Mega-Brokers
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Neal L. Sullivan Testifies that Past Illegal Activity Should Not
Jeopardize Independent Insurance Agents and Brokers
(DeWitt, New York, July 23, 2008) — Neal L. Sullivan, CPA, chair of the
Independent Insurance Agents & Brokers of New York, Inc., insisted that
past “illegal and dishonest” dealings by former employees of mega
brokers should not punish the future of the independent insurance
distribution method. Sullivan’s testimony before a joint public hearing
explained that mega broker clout helped contribute to former New York
Attorney General Eliot Spitzer’s investigation and charges of illegal
steering and bid-rigging practices.
The New York State Insurance Department and New York State Office of the
Attorney General conducted the Albany hearing on July 23. The hearing
addressed allegations that contingent commissions—sometimes referred to
as profit sharing—create a conflict of interest for consumers. Also in
question is disclosure to the client of this compensation.
The IIABNY Chair pointed out that the market influence of Willis, Aon
Corp. and Marsh & McLellan, “the three largest brokers in the world,”
allowed for front-end commission arrangements—payments that were
available only to the industry’s mega brokers. “We understand that these
types of arrangements could lend themselves to so-called steering of
business by unethical brokers to insurance companies with the most
lucrative compensation arrangements,” said Sullivan. IIABNY, other trade
groups and the insurance industry as a whole supported Spitzer’s
prosecution of the wrongdoers. In settlements with Spitzer, the three
brokerages renounced these practices while a number of insurance
companies agreed to end the payment of contingent commissions.
As
a result, some of the mega brokers have claimed that contingent
commissions create an unfair business advantage. Sullivan found it
“difficult to have any sympathy for the situation they now face, nor is
it appropriate to paint the entire insurance community with the same
brush.”
Awarded at years end, contingent commissions reflect an overall
performance involving growth, loss ratios and profitability. These
factors do not reflect specific policies and therefore disclosure of
this type of commission when writing the policy could not be accurate.
Sullivan, who is also president of Sullivan Financial Group, Inc., in
Mahopac, New York, stated IIABNY’s position of voluntary rather than
mandatory disclosure, and available “when requested by the customer.”
In
addition, because independent agents and brokers write business with
multiple companies, mandatory disclosure would single them out and not
“captive agents or direct writer employees who represent only one
company.”
Sullivan cited the recent Liberty Mutual Insurance Company decision
(People v. Liberty Mutual Ins. Co.) by a New York State Supreme Court,
Appellate Division, First Department. The court determined “contingent
commission agreements between brokers and insurers are not illegal.” The
decision further explained that Liberty Mutual “had no duty to disclose
the existence of the contingent commission agreement.”
To
view Sullivan’s submitted testimony, go to
http://ny.iiaa.org/Legislation/Sullivan_Testimony072308.pdf
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11.
PIANY's Bailey
Testifies At Albany Compensation/Disclosure Hearings |
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July 24, 2008
ALBANY, N.Y.— Professional Insurance Agents of New York State Inc. past
President John W. Bailey, CIC, of the George Bailey Agency, Dryden,
N.Y., testified yesterday on behalf of the association at a joint public
hearing on producer compensation and disclosure. The hearing was the
second in a series of three this month held by the New York State
Insurance Department and Attorney General’s office. Bailey, and seven
others spoke to the panel, comprised of three representatives from the
NYSID and AG’s office each.
Eight individuals testified at the hearing, held in Albany, representing
producer and company groups from the property/casualty and
life/disability sectors; as well as Mercer Health & Benefits and State
Farm.
Bailey was joined by other associations in reiterating PIA’s
long-standing position that contingent commissions are legal, effective
compensation for producers that benefit New York state’s consumers and
economy. He told the panel that, beyond their inherent ethical behavior,
a competitive market ensures that agents act in best interests of the
consumer.
Pressed by the attorney general about whether contingents are an
incentive to agents to steer business, Bailey responded, “There simply
is no innate advantage in trying to place business in anything but the
most appropriate and competitive market… The reality is there are a lot
of different types of exposures; and our goal is to bring the best
product to our client. It simply doesn’t benefit us in an extremely
competitive market, to place business with the wrong carrier.”
Bailey and several testifiers pointed out contingent commissions, paid
by insurance companies to retail independent insurance agents, are not
the same as “placement service accounts,” which certain mega-brokers
used in bid-rigging schemes and which the attorney general investigated
and settled in 2004.
Nearly all of the eight speakers spoke in favor of transparency at some
level in transactions with clients, however, some, including David
Rahill, representing Mercer Health & Benefits LLP, a subsidiary of Marsh
& McLennan Companies, Inc., called for a “level playing field,” either
by the elimination of contingency agreements across the industry or by
altering the settlements that bind certain brokers against such
compensation, as a result of the Attorney General’s investigations and
subsequent agreements in 2004.
PIA testified that voluntary disclosure exists in the market, and that
mandating disclosure would mislead consumers, perhaps implying that
producers’ compensation is negotiable between the customer and the
agent. To the contrary, “our compensation is set by the companies and
approved by the Insurance Department as part of the rate approval
process,” Bailey explained.
Bailey’s full written testimony can be found at:
www.pia.org/GIA/NY/testimony_compensationdisclosure.pdf.
A
third hearing is scheduled to take place Friday, July 25 in New York.
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12.
Guy Carpenter Publishes
Update on Tropical Cyclone Conditions In Western North Pacific
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Study Produced by Asia-Pacific Climate Impact Centre at
City University of Hong Kong Finds Threat in Neutral Status
New York, July 24, 2008
Guy Carpenter & Company, LLC, the leading global risk and reinsurance
specialist, today announced the publication of Updated Prediction of
Seasonal Tropical Cyclone Activity over the Western North Pacific for
2008. This is the second report produced by the Guy Carpenter
Asia-Pacific Climate Centre at City University of Hong Kong (GCACIC),
launched in June this year.
The report describes how El Niño-Southern Oscillation (ENSO) is an
important predictor of the number of tropical cyclones affecting the
western North Pacific and the South China Sea. While 2007 was a strong
La Niña year, 2008 shows a weakening of this event such that the ENSO
condition is in a neutral status. Historically, such a condition (La
Niña becoming neutral) generally suggests a near- to above-normal
tropical cyclone activity, whereas other predictors indicate a slightly
above-normal activity.
When considering all of the predictors, the GCACIC has forecasted a
normal to slightly above-normal year for all tropical cyclone categories
for the entire Western North Pacific during 2008. As such, the
predicted total number of tropical cyclones remains at 30, consistent
with April estimates. Similarly, the predicted number of typhoons
remains at 19.
“These predictions would suggest that the La Niña event we witnessed in
2007 is unlikely to persist for the rest of the 2008 season,” said James
Nash, CEO of Guy Carpenter’s Asia Pacific Region. “Thus, the number of
tropical cyclones is expected to be at slightly-above or near-normal
levels.”
The GCACIC (http://www.cityu.edu.hk/gcacic/)
is a leading regional hub for research on climate-related threats,
catastrophic risk assessment and severe climatic event predictions for
the Asia-Pacific region. www.guycarp.com |
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13.
H.I.G. Capital
Announces Agreement to Acquire PMSI |
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MIAMI--(BUSINESS WIRE)--H.I.G. Capital, L.L.C., a leading global private
equity investment firm announced today that it entered into a definitive
agreement to acquire PMSI from AmerisourceBergen Corporation. The
closing of this transaction is expected to occur during the third
quarter of 2008.
Based in Tampa, Florida, PMSI is one of the nation’s largest providers
of specialty managed care services and products for workers’
compensation and catastrophically injured populations. PMSI provides an
integrated portfolio of services in Pharmacy (PBM), Medicare Set-Asides,
Medical Services and Equipment, and Clinical Services that promote
quality care for injured workers while helping contain costs and control
utilization for its clients, which include workers’ compensation
insurance companies, self-insured corporations, third-party
administrators (TPAs) and government insurance entities.
www.higcapital.com |
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15.
Brownyard Adds Workers’
Comp to Security Guard and Pest Control Programs in California |
|
Bay Shore, N.Y.—July 23, 2008—The Brownyard Group (
www.brownyard.com ), a
Program Administrator providing specialized insurance coverage for
select industry groups, announced today that it is offering Workers’
Compensation Coverage in California for its Security Guard and Pest
Control Programs.
Coverage for both programs is written through Arch Insurance Company,
rated “A” (Excellent) by A.M. Best, and can be written unsupported or as
part of a package. |
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16.
Insurance Commissioner
Poizner Deploys Insurance Experts To Aid Fire Survivors At Butte County
Assistance Center
|
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SACRAMENTO ? Insurance Commissioner Steve Poizner announced today that
he will deploy Department of Insurance (CDI) consumer information
experts to help Butte County fire survivors with recovery efforts.
“The last thing fire survivors should have to worry about after losing
their homes and belongings is a daunting recovery process,” said
Commissioner Poizner. “That’s why I have deployed my Department of
Insurance consumer information experts to the fire zones – to aid fire
survivors during this difficult time.”
Governor Schwarzenegger announced the creation of a one-stop local
assistance center in Butte County yesterday. Commissioner Poizner is
sending CDI staff to the one-stop assistance center to respond to any
insurance-related questions and concerns survivors may have as they work
to rebuild their lives in the wake of the destructive wildfires in Butte
County. Consumer information experts will answer insurance questions;
help fire survivors understand their coverage, provide advice for filing
a claim and assist with filing a complaint if necessary. www.oes.ca.gov |
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17.
Insurance Commissioner
Poizner Warns Sacramento Drivers To Be Alert For Staged Auto Collisions
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Schemes Used by Scam Artists Endanger Other Drivers, Cost Unsuspecting
Public
SACRAMENTO With summer vacation looming and many Californians
traditionally driving more frequently or longer distances, Insurance
Commissioner Steve Poizner warned area drivers to be alert for staged
auto collisions. In 2007-2008, 14,623 referrals out of 23,734 insurance
fraud referrals received by the California Department of Insurance - 61
percent - were for suspected automobile insurance fraud.
More than $182 million could have been lost by insurance companies in
2007-2008 if the auto insurance fraud was not discovered. Actual loses,
however, are subsequently built into the insurance companies' pricing
structures.
In
Sacramento there were 802 suspected fraudulent claims (SFCs) in
2007-2008. That's down from 856 SFCs in 2006-2007 but up from 788 in
2005-2006. In Sacramento County, potential losses were $5.6 million in
2007-2008 up from $5 million in 2006-2007 and comparable to the $5.8
million in potential losses in 2005-2006.
There are primarily three schemes typically used in staged collisions:
o Panic stop
o Start-and-stop
o Swoop-and-squat
www.insurance.ca.gov. |
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18.
Dividend Declared for
Oregon Participants in the Liberty Northwest Property & Liability
Restaurant Program |
|
Portland, Ore. (July 23, 2008) – The Liberty Northwest Board of
Directors recently declared a 10 percent dividend of premiums earned for
restaurants participating in the Oregon Restaurant Association (ORA)
Safety Group Dividend Property & Liability Program.
This dividend applies to ORA members who were policyholders from October
1, 2006 to October 1, 2007. It is the largest dividend in the history of
the program, and is the eighth consecutive dividend declared for this
group, reflecting the tremendous performance of its participants.
For nearly 25 years Liberty Northwest has partnered with ORA to offer
its group workers’ compensation program to members – a retrospective
rating plan that has returned over $80 million to ORA members since its
inception. In 1999, Liberty Northwest began offering the Safety Group
Dividend Property and Liability Program to ORA members.
www.libertynorthwest.com |
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19.
Life of the South
Becomes Fortegra Financial Corporation |
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JACKSONVILLE, Fla., July 23 /PRNewswire/ -- The Board of Directors of
Life of the South Corporation voted unanimously to change the name of
the company to Fortegra Financial Corporation announced Richard
Kahlbaugh, President and Chief Executive Officer.
"There are many reasons for the name change. After consulting with many
investment bankers, we determined that a name without a regional
reference was more appropriate as we continue to drive to an initial
public offering. Equally compelling has been our success in expanding
our footprint. We now conduct business in over thirty (30) states and
have the authority to conduct business in over forty (40) states.
Finally, we are completing an acquisition that will give us a
significant presence in the southwest and the west coast," explained
Kahlbaugh.
Mr. Kahlbaugh made it clear that the name change and rebranding is
limited to the holding company. "While we are changing the name of the
holding company, the operating entities will maintain their brand. The
name change will be completely transparent to our customers and the
markets they serve. More importantly, we remain committed to maintaining
our business model and our customer-focused service which has been the
hallmark of our brand."
http://www.fortegrafinancial.com |
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20.
INSURANCE NEWSCAST "Pictures Of The Day"
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Dolly downgraded to tropical storm in South
Texas. Strong winds caused by Hurricane Dolly strike palm trees and cars
in Matamoros, Mexico, July 23, 2008. REUTERS/Tomas Bravo
Read Entire Story!!!
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Cuba silent on Russian bomber report: Fidel
Castro. Former Cuban leader Fidel Castro talks during a meeting with his
brother Cuban President Raul Castro and Venezuela's President Hugo
Chavez in Havana June 17, 2008. REUTERS/Estudios Revolucion/Handout
Read Entire Story!!!
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Strong quake jolts north Japan, 107 hurt.
Tombstones that collapsed during the earthquake are seen at Choryuji
temple in Hachinohe, northern Japan July 24, 2008. REUTERS/Issei Kato
Read Entire Story!!!
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China security forces vow to thwart Games
threats. Paramilitary police attend an oath-taking rally to ensure the
safety of the 2008 Beijing Olympic Games outside the National Stadium,
also known as the Bird's Nest, in Beijing, July 23, 2008. REUTERS/Darren
Whiteside
Read Entire Story!!!
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C. V. Muralidhar (R), inspector general of
India's Border Security Force, speaks as Brigadier General M. A. Bari,
deputy director general of Bangladesh Rifles, looks on during a news
conference after a three-day border co-ordination meeting in the eastern
Indian city of Kolkata July 24, 2008. During the three-day meeting, the
discussion was broadly focused on women and children trafficking, drugs
and narcotics smuggling, flow of fake currency notes, illegal migration,
unprovoked firing, and trans-border crimes including cattle smuggling,
fence breaching and kidnapping, a joint press statement said. REUTERS/Parth
Sanyal (INDIA)
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US Democratic presidential candidate Senator
Barack Obama (D-IL) (L) meets with German Chancellor Angela Merkel in
Berlin July 24, 2008. REUTERS/Jim Young (GERMANY) US PRESIDENTIAL
ELECTION CAMPAIGN 2008 (USA)
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A member of audience waves a U.S. flag as
Republican presidential candidate U.S. Senator John McCain (R-AZ) is
introduced at a campaign picnic outside the Maine Military Museum in
South Portland, Maine July 21, 2008. REUTERS/Brian Snyder (UNITED
STATES) US PRESIDENTIAL ELECTION CAMPAIGN 2008 (USA)
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New England farms blossom in cheese renaissance.
Cheesemaker Peter Dixon holds a round of cheese being aged at Consider
Bardwell Farm, where artisanal cheeses are made from goat and cow's
milk, in West Pawlet, Vermont in this June 30, 2008 file photo.
REUTERS/Brian Snyder/Files
Read Entire Story!!!
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Hindu priests perform "Astottara Shatha Kundali
Mukha Varun Yagam", a special prayer for rain, to appease the rain god
in the southern Indian city of Hyderabad July 24, 2008. The southern
part of India witnessed low rainfall this year, local media reports
said. REUTERS/Krishnendu Halder (INDIA)
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A cheetah observes the plains in Masai Mara game
reserve July 24, 2008. The annual zebra and wildebeest migration is
expected to attract a large number of tourists after the post-election
violence when many cancelled their holidays to the country. REUTERS/Radu
Sigheti (KENYA)
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