Daily Quote: “Twenty years form now you will be more disappointed by the things you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover. -- Author Unknown
1. TOWERGROUP UNDERSCORES NEED FOR INNOVATION AMONG FINANCIAL INSTITUTIONS LOOKING TO DIFFERENTIATE, DRIVE RESULTS BOSTON, MA (TowerGroup Annual Conference), June 1, 2006 - Players in the global financial services industry must invest in innovation to drive competitive differentiation both with other financial institutions and adjacent industries - as well as to achieve bottom line results. This is a common thread running through all four sector-specific track sessions kicking-off the 2006 TowerGroup Financial Services Business & Technology Conference & Exhibition. The Conference, themed "Differentiation - Execution - Results," is being held in Boston through June 2nd with more than 600 financial services industry professionals in attendance. According to TowerGroup, the financial services industry as a whole risks losing ground to breakthrough innovations from adjacent industries. "For all the gloom that followed the Internet bust, networked technologies and services are being actively implemented in varied and creative ways across numerous industries," said Guillermo Kopp, vice president of the Cross-Industry practice at TowerGroup - a point underscored in his opening session. "We expect to see a renewed thrust in technologies such as broadband mobility, integrated risk management, information security, business process management and service oriented architectures - all as enablers of a strategic transformation of financial services business models." Below are highlights of the other opening track sessions: Insurance "Alongside the traditional business drivers such as profitable growth, optimizing business performance, and meeting regulatory and compliance demands, seizing and sustaining a competitive advantage and gaining true market leadership position are truly top of mind for insurance industry CEOs," said Deborah Smallwood, managing director of the TowerGroup Insurance practice. "The industry is recognizing that profitable growth is achievable, speed to market is more critical than ever, and reducing complexity in both the business and the IT environment is a must. New business models that support both scope and scale are emerging, with service orientated architecture (SOA) and supporting technologies in place at many carriers." Smallwood noted that over the next 18 months to three years, TowerGroup expects to see a separation among the leaders and followers - with a select few insurers demonstrating true differentiation and strong market position. "Many of the leaders already have a vision and plan. Now, it is all about flawless execution," she said. To request copies of these presentations, or to arrange an interview with Eckenrode, Hegarty, Kopp or Smallwood, please contact Jorge Lavina at +1.212.455.8041 or jlavina@cooperkatz.com - or via his mobile phone while on-site at the TowerGroup Conference at +1.917.386.4213. www.towergroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. White and Williams Insurance Attorney Looks At First Katrina Coverage Decisions Philadelphia, PA -- June 1 -- Randy J. Maniloff, a Partner at White and Williams, LLP in Philadelphia has published "Hurricane Katrina and Insurance Coverage: First Words From The Bench; Playing it Down the Senter" in the June issue of Mealey's Litigation Report: Catastrophic Loss. The article examines how Judge L.T. Senter, Jr. of the Southern District of Mississippi is addressing the difficult coverage issues surrounding Hurricane Katrina. On May 24, Judge Senter issued a decision in Tuepker v. State Farm, addressing the availability of insurance coverage under a homeowners policy for property damage caused by Hurricane Katrina. This is the second case involving homeowners coverage for Katrina damage in which Judge Senter has issued an opinion. He issued opinions in March and April in Buente v. Allstate In general, these decisions held that coverage is available for damage caused by wind, but not flooding. However, Maniloff’s article looks at the detail behind these decisions, addresses how they may affect coverage determinations in future cases and examines the issues that the parties are still likely to dispute. The Buente and Tuepker decisions are far from the last word on the availability of insurance under homeowners policies for damage caused by Hurricane Katrina. But because they may be the first, and address certain issues of policy interpretation that will likely be common in many claims, they are sure to be studied closely by policyholders and insurers involved in Katrina coverage disputes -- and cited by both sides for any support that they offer. (For additional information, or a copy of the article, contact Randy J. Maniloff, White and Williams, LLP, 215-864-6311 or maniloffr@whiteandwilliams.com .) Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. A.M. Best Report: A 'Mega-Cat' Hurricane Would Be Fatal to Some Insurers and a Financial Hardship to Consumers OLDWICK, N.J.--(BUSINESS WIRE)--June 1, 2006--A new Special Report from the A.M. Best Company on the impact of a possible "mega-cat" hurricane--$100 billion or more in insured losses--finds that the financial consequences would be serious and widespread for the insurance industry and the public. Possible scenarios include unusually intense hurricanes striking portions of the Eastern United States, from the Northeast to Florida. Insured claims could surpass $100 billion, wreaking havoc on insurer financials. Indeed, anywhere from 20 to 40 insurers could be vulnerable to failure from that magnitude of U.S. insured property losses, according to A.M. Best's statistical analysis in "2006 Annual Hurricane Study: Shake, Rattle and Roar." The new report assesses how the U.S. property/casualty industry might be affected by a potential, perhaps likely, $100 billion-plus insured property loss--almost twice the catastrophe losses from last year's hurricane season. Beyond the obvious impact on insurers' financial solvency, policyholders could see delayed payment of claims and difficulty finding affordable coverage. Some insurers, facing scarce and more costly reinsurance, would seek to mitigate their exposures in high-value coastal areas. With the property/casualty industry's 2005 policyholder surplus at $434 billion, a loss of 20% or more of that amount begins at $87 billion. To help assess how losses of that magnitude would impact today's industry, A.M. Best asked the leading catastrophe modelers--AIR Worldwide Corp, Eqecat Inc. and Risk Management Solutions Inc.--for several examples of credible catastrophe events. Each included a variation on a Northeast hurricane hitting the New Jersey or New York areas and a Florida hurricane making landfall close to Miami. Insured property losses under various scenarios and models ranged from $95 billion to $146 billion. While the insurance industry in aggregate could weather such a financial storm, individual insurer rating downgrades and financial impairments likely would soar, A.M. Best found. Anywhere from 20 to 40 insurers, or 3% to 7% of all insurers with catastrophe-related exposure, would be vulnerable to failure. At the high end, impairments would nearly equal all catastrophe-induced insurance failures of the past 37 years, reaching roughly three times the number seen after Hurricane Andrew in 1992. Colorado State University climatologists William M. Gray and Philip J. Klotzbach predict nine Atlantic hurricanes for the 2006 season--five of them intense, or Category 3, 4 or 5. The probability of a major U.S. hurricane landfall is estimated at 55% above average. The build-up of population and real estate development in highly vulnerable areas means it is only a matter of time before insured property losses top $100 billion from one event or a combination of events in one year, according to A.M. Best. Companies at greatest risk of impairment tend to be thinly capitalized insurers with a Vulnerable Best's Rating (B or below) or some companies not rated by A.M. Best. Conversely, at higher Best's Rating levels, the risk of an insurer facing financial impairment as a result of catastrophic losses decreases. At the time of this publication, four insurer failures have been tied directly to the one-two punch of the 2004-2005 storms. An excerpt from the report, which includes a video, is available at www.bestweek.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Gravely & Pearson, L.L.P. Files $10 Million Lawsuit Against Allstate Insurance Whistleblower Case SAN ANTONIO, May 31 /PRNewswire/ -- Gravely & Pearson, L.L.P., filed a lawsuit today in the Bexar County District Court against Allstate Insurance Company for wrongful termination and defamation of Fred Klecka, a former adjustor in Allstate's Special Investigation Unit (SIU) or Fraud Unit. In July 2005, Klecka was fired by Allstate for refusing to commit an illegal act. The wrongful termination followed months of retaliation by Allstate management in the form of unfair assignments, unjust scrutiny and criticism of Klecka's work and the imposition of requirements that were not placed on other workers. The treatment was calculated to make Klecka quit. When Allstate realized Klecka would not quit, they fired him. Klecka, having worked inside the elite Allstate Fraud Unit, was responsible for investigating and handling claims where there was a concern about fraud. In early 2003, Klecka discovered that an Allstate employee had not only issued an improper claim payment to a company that the employee owned and operated, but that the same individual was sharing in other improper claim payments in excess of a million dollars with an outside entity for work that was never done on hundreds of claim files. The retaliation first began in 2004. After being interviewed by the United States Federal Bureau of Investigation (FBI), Klecka refused to comply with Allstate's illegal order that he not cooperate with the FBI in their investigation into Allstate's claim department or he would lose his job. Allstate feared that the FBI might uncover information in its investigation that could expose other employees and Allstate to criminal charges. Allstate also did not want the details of the improper claim payments to be disclosed to the hundreds of policyholders affected by the scheme. Klecka's cooperation and assistance led to a fraud and embezzlement investigation by the FBI and the indictment, arrest and pending sentencing of the two parties responsible for the fraudulent scheme. Unfortunately, Klecka's cooperation with the FBI also led to his own wrongful termination for refusing to commit an illegal act. As a result of Allstate's illegal conduct, Klecka has suffered damages in the form of lost wages and benefits, emotional distress and mental anguish. The lawsuit alleges damages up to $10 million. Representing the plaintiff, Gravely & Pearson, L.L.P. has demanded a trial by jury in an effort to recover actual damages and exemplary damages for Allstate's malicious conduct. "Mr. Klecka was fired for doing his job," said Matthew Pearson, one of Klecka's attorneys. "Fortunately, the law protects people like Mr. Klecka who had the courage to stand up to a powerful company like Allstate, risk his career, and do the right thing." www.gplawfirm.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. INSURANCE COMMISSIONER ANNOUNCES $3 MILLION SETTLEMENT AGREEMENT WITH LANDAMERICA FINANCIAL GROUP, INC. AND ITS AFFILIATES (CARSON CITY) – Insurance Commissioner Alice A. Molasky-Arman announced today that she has reached an agreement with LandAmerica Financial Group, Inc.; the parent company of Lawyers Title Insurance Corporation, Commonwealth Land Title Insurance Company, Transnation Title Insurance Company, LandAmerica Reinsurance Services, Inc., Commonwealth Land Title Insurance Company of New Jersey, Land Title Insurance Company, and the Title Insurance Company of Nevada, concerning illegal title insurance rebating. LandAmerica has agreed to a settlement of approximately $3 million, the majority of which will be refunded to Nevada’s consumers who were affected. In addition, the company will pay $560,280 in administrative fines and $239,720 toward a consumer education program concerning title insurance. The settlement stems from allegations by Division staff that LandAmerica Financial Corporation ceded a percentage of title insurance premiums to certain captive reinsurance companies to negotiate illegal rebates to banks, builders and realtors and to steer business back to the title companies. “The development of an educational program to help consumers understand title insurance is long overdue,” said Molasky-Arman. “The settlement agreement is a step in the right direction. I expect the company’s continued cooperation as we move forward to evaluate the appropriateness of rates being charged.” As part of the settlement, LandAmerica agreed to stop engaging in the captive reinsurance arrangements, as well as any similar captive reinsurance arrangements in Nevada. Further, LandAmerica will conduct reasonable due diligence in locating affected Nevada homeowners/buyers. The company has until May 26, 2007 to complete the refund process. LandAmerica neither admitted nor denied the allegations in the Order issued by the Commissioner. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article Top Reasons to Join Colonial as a District Sales Manager Are you
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www.coloniallife.com. 6. HURRICANE BACKGROUNDER: CLAIMS AND PROPERTY LOSS INFORMATION JERSEY CITY, N.J., June 1 Back-to-back devastating hurricanes in the last two years battered the U.S., claiming lives, destroying property and uprooting thousands from their homes to seek temporary shelters. The National Oceanic and Atmospheric Administration (NOAA) predicts an active hurricane season in 2006, with 13 to 16 tropical storms forming over the Atlantic Ocean. Ten of these could become hurricanes. Dr. William Gray, noted meteorologist at Colorado State University, is predicting that 17 named storms will form this year, compared with 28 last year. The hurricane season, which officially begins today and runs through the end of November, exposes tens of millions of people living along the U.S. Eastern Seaboard and the Gulf Coast to property losses from hurricanes and tropical storms The attached fact sheet is a useful source of background material for your coverage of natural disasters in the coming months. The information is compiled from ISO’s Property Claim Services (PCS) database on property losses for natural and man-made disasters. The fact sheet highlights significant information on past catastrophic events, including hurricanes, and the cost of insured property damage those events produced. ISO spokespeople are available to provide estimates and analyses of catastrophe losses. AIR Worldwide Corporation (AIR), ISO’s catastrophe modeling subsidiary, can also assist you in your coverage of hurricanes and other catastrophes. Using sophisticated computer models, AIR provides insured property loss estimates to the media in the immediate aftermath of a landfalling hurricane. Additionally, AIR’s scientists, engineers and catastrophe risk experts are available to comment on the impact of hurricanes throughout the season. Contact Michael Gannon at (617) 954-1857 or mgannon@air-worldwide.com. www.air-worldwide.com. PROPERTY CLAIM SERVICES: CATASTROPHE FACT SHEET • Top 10 Hurricanes and Estimated Insured
Loss (adjusted to 2005 $$): Note: Due to the continual increase in the number and value of insured properties in coastal areas, the estimated loss from a recurrence of a historic hurricane would be considerably higher than the trended loss. • 10 Most Intense Hurricanes, Categories 5 and 4 (1900?2005) — Measured by Saffir-Simpson Hurricane Disaster-Potential Scale Florida (Keys) ? 1935 Category 5 Camille ? 1969 Category 5 The Saffir-Simpson Hurricane Disaster-Potential Scale classifies hurricanes on their intensity and damage potential under five categories, with Categories 5, 4 and 3 being the most destructive. The scale does not measure insured property losses. • A Decade of Hurricane Losses (1996?2005) — Events and Estimated Insured Losses (adjusted to 2005 $$): Year Number of Hurricanes Insured Losses 2005 6 $53.7 billion * No wind event met the PCS catastrophe definition ? which is a single incident or a series of related incidents, man-made or natural disasters, that causes insured property losses of at least $25 million and affects a significant number of policyholders and insurers. Note: Due to the continual increase in the number and value of insured properties in coastal areas, the estimated loss from a recurrence of a historic hurricane would be considerably higher than the trended loss. • Top 10 Catastrophes and Estimated Insured Losses (adjusted to 2005 $$): Hurricane Katrina – Aug. 2005 $38.1
billion * Net of workers compensation and general
liability; insurers incurred fewer personal property claims than
anticipated; doesn’t include life and health insurance. • A Decade of Catastrophes (1996?2005) — Events and Estimated Insured Losses (adjusted to 2005 $$) Year Number of Events Insured Losses 2005 24 $58.7 billion Note: Due to the continual increase in the number and value of insured properties in coastal areas, the estimated loss from a recurrence of a historic hurricane would be considerably higher than the trended loss. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Best's Review: Advice Not Given May Come Back to Haunt Agents OLDWICK, N.J.--(BUSINESS WIRE)--June 1, 2006--In the many insurance-coverage disputes over damage from Hurricane Katrina, some lawsuits alleged the agent was at fault for not telling the policyholders they needed flood insurance. These cases are the kind of legal action that could trigger errors-and-omissions insurance claims from independent agents in any flood-affected area, according to the June issue of Best's Review. If the lawsuits don't gain ground with insurers, plaintiffs' attorneys may well turn their gaze to agents and brokers. But they will have to prove misrepresentation, either deliberate or unintentional, to win, said Ann Spragens, general counsel for the Property Casualty Insurers Association of America. How early cases alleging agent and broker misconduct are settled will determine whether more are filed in the near future. As the 2006 hurricane season begins, the June issue of Best's Review also looks at how carriers have handled the record number of claims they received last year, particularly from New Orleans and surrounding Louisiana communities. With adjusters working under unimaginable conditions, insurers have settled most personal lines claims, but are looking at a long road for some commercial claims, especially business interruption. Best's Review is published by A.M. Best Co., for insurance professionals, including home office executives, agents, brokers and others who are affiliated with the industry, including bankers, lawyers and educators. Other highlights of the June issue include:
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Protective to Acquire Western General BIRMINGHAM, Ala.--(BUSINESS WIRE)--May 31, 2006--Protective Life Corporation (NYSE: PL) ("Protective") today announced that one of its subsidiaries, Lyndon Insurance Group, Inc. has signed a definitive agreement to acquire the vehicle extended service contract business of Western General, which consists of the stock of three companies and some additional assets for a cash purchase price of $33 million at closing plus contingent consideration based on future performance. The transaction, which is expected to close in the third quarter of 2006, is subject to regulatory approval and other customary conditions to closing. Western General is headquartered in Calabasas, California and is an industry leading provider of vehicle service contracts nationally, focusing primarily on the West Coast market. Western General currently provides extended service contract administration for several automobile manufacturers and provides used car service contracts for a publicly-traded national dealership group. The acquisition includes approximately 90 employees primarily located in California with significant experience in the market. Western General's management team, including its President, Robert M. Ehrlich, will continue to manage and operate the business going forward. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. NCOIL TO CONSIDER JOINT NCOIL-NAIC MEGA-CATASTROPHE PLAN, TO PURSUE UNITED EFFORT Troy, New York, May 31, 2006?Recognizing that the nation must do more to adequately prepare for catastrophic natural events, legislators at the National Conference of Insurance Legislators (NCOIL) July 20 through 23 Summer Meeting in Boston, Massachusetts, will consider a multi-layered system for disaster management. The plan, contemplated as a joint NCOIL-National Association of Insurance Commissioners (NAIC) effort, was announced today by NCOIL Past President Sen. Steven Geller (FL) and Florida Insurance Commissioner Kevin McCarty. In unveiling the proposal, Sen. Geller, who currently serves as chair of the NCOIL Subcommittee on Natural Disaster Insurance Legislation, said, “I am particularly pleased that NCOIL and the NAIC will further their commitment to a nationwide program by examining this proposal at their upcoming meetings.” “NCOIL is a long-time advocate for a national approach, as we recognize that the private insurance and reinsurance markets simply could not handle a $100 billion event. Unless we act,” Sen. Geller said, “Hurricane Katrina could be just a taste of what would happen to our local economies.” Layer One of the multi-level proposal would require a property insurance checklist that clearly identified coverage limits, would change IRS tax code to allow for insurer tax-deferred catastrophe reserves, and would establish rate structures that promote mitigation. Layer Two would create optional state or regional catastrophe funds to offer reinsurance to the private market at risk-reflective rates and would allow for appropriate building code policies. Finally, Layer Three would institute a federal reinsurance program to offer coverage to state/regional catastrophe funds. The federal backstop, funded by actuarially sound premiums, would provide reinsurance when insured losses ranged from $25 billion to $50 billion. According to NCOIL President Rep. Frank Wald (ND), the issue is critical to legislators across the country, as all states are exposed to some form of natural disaster. “We look forward to consideration of the draft proposal in July, and we thank Sen. Geller for his tireless work on behalf of NCOIL.” www.ncoil.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. PUBLIC SECTOR EMPLOYEES CAN GET EASY ACCESS TO VOLUNTARY LEVEL TERM LIFE INSURANCE Colonial Supplemental Insurance offers post-enrollment guaranteed issue life insurance to employees in qualifying public sector accounts. COLUMBIA, S.C. (June 1, 2006) — It’s now easier for employees in public sector accounts to purchase level term life coverage. Colonial Supplemental Insurance announces a post-enrollment guaranteed issue offer for new public sector accounts with 100 or more employees. As long as the account has 10 percent participation, employees and family members can get level term life insurance regardless of their health situations.* With a voluntary level term life product, employees can choose higher coverage amounts at lower premiums to protect their families during life stages where employees’ coverage needs are greater. Mortgage payments, child care, saving toward retirement, children’s college expenses—term life insurance benefits can help families cover these life stages when financial demands are high in the event of a premature death. Colonial’s post-enrollment guaranteed issue offer includes the following policy face amounts: • $50,000 for issue age 15-50 “This guaranteed issue offer can help public sector entities enhance their benefits programs,” says Monica Francis, assistant vice president of product marketing for Colonial. “Public sector entities that currently provide and pay for group term life can provide a voluntary life product to help employees meet any additional coverage needs, or they can decrease their group life coverage and allow employees who need it to purchase additional voluntary coverage.” And because Colonial’s product is voluntary, employers don’t have to worry about administrative hassles, such as employee census, renewals and coverage reductions as an employee ages. Colonial’s level term life is a payroll-deducted, individual term life insurance plan that offers level death benefits, guaranteed cost of insurance rates and level premium paying periods. It’s guaranteed renewable to age 95, convertible to age 75 and portable, which means employees can take the coverage with them if they change jobs or retire. Colonial’s product is available for sale in all states, including Washington, D.C. * Coverage may vary by state. Issue age, face amount limits and other exclusions apply. For more information about Colonial’s products and services or opportunities with the company, contact Monica Francis at (803) 798-5555, ext. 8448, e-mail her at MLFrancis@ColonialLife.com or visit www.coloniallife.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. AIA COMMENDS BUSH VETO OF FLORIDA NO-FAULT LAW EXTENSION Law Now Scheduled to Sunset October 2007 ATLANTA, June 1, 2006 -Gov. Jeb Bush yesterday vetoed legislation (SB 2114) that would have extended the state’s no-fault auto insurance law for an additional two years, a move praised by the American Insurance Association (AIA). The law is now scheduled to sunset October 2007; Florida then will return to a traditional tort system for settling auto claims. “Gov. Bush saw the issue the way AIA did: without significant reform, the no-fault law was not worth saving,” said Cecil Pearce, AIA vice president, Southeast Region. “AIA and others in the industry have for several years urged legislators to pass substantive reforms aimed at removing the ongoing, growing fraud and abuse from the no-fault’s personal injury protection (PIP) system. Otherwise, the true beneficiaries of no-fault continue to be trial lawyers and shady medical providers – not consumers. AIA came to the conclusion last fall that key reforms necessary to fix the system, such as attorney fee reform and a medical fee schedule, were not achievable this session,” said Pearce. “That view turned out to be correct.” Instead, the Legislature decided to delay the law’s effective repeal date to January 1, 2009. After amending the law more than 50 times since no-fault was first instituted in 1971, in 2003, the legislature passed and the governor signed a bill repealing the no-fault law, effective October 2007. With his veto of SB 2114, the repeal date remains October 1, 2007. www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Indianapolis Agency Joins ISU Network Principal Doug Walker announced that Walker & Associates Insurance Agency of Indianapolis, IN has joined the ISU Insurance Services Network of Independent Agencies. Established in 1960, the newest ISU Licensee has evolved into a full-service multiple line insurance firm servicing over 8,000 clients in central Indiana. ISU International is a growing national network of over 90 of the most professional independent agencies with offices coast-to-coast and combined annual premiums in excess of $1 billion dollars. All ISU Insurance Services Member offices remain independently owned and locally operated while utilizing the collective strengths and resources of a national firm, which the network provides. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Governor Bush Vetoes No-Fault (PIP) Legislation; NAMIC Advocated for Veto INDIANAPOLIS (May 31, 2006)—An official of the National Association of Mutual Insurance Companies (NAMIC) today called Florida Gov. Jeb Bush a “courageous leader” after he vetoed the bill that would have extended the sunset of the state’s no-fault insurance law for another two years. www.namic.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. PIANJ and PIANY launch “Take Back Personal Lines” campaign GLENMONT, N.Y.—To help consumers understand the benefits of purchasing insurance policies through professional independent insurance agents, the Professional Insurance Agents of New Jersey and New York State launched a “Take Back Personal Lines” campaign. It also is designed to remind consumers that the best insurance policy for them is not always the least expensive policy. The Professional Insurance Agents of Connecticut and New Hampshire are expected to launch similar campaigns this year. To track its successes and offer members the latest materials on the Take Back Personal Lines campaign, PIANJ and PIANY launched a members-only Web site: www.piaonline.org/COMM/personal/indexnj.shtml, in New Jersey and www.piaonline.org/COMM/personal/indexny.shtml, in New York. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. CHOICE Administrators® Introduces Kaiser Permanente Choice Solution (ORANGE, CA – May 31, 2006) —CHOICE Administrators®, the nation’s largest administrator of employee-choice health benefit programs, today introduced Kaiser Permanente Choice Solution, available to California employers through licensed brokers, General Agents, Kaiser Permanente and CHOICE Administrators®. This new employee-choice product for employers with 2-50 employees offers seven Kaiser Permanente benefit plan designs all in one program, offering employees a broad selection of healthcare options and giving the employer the benefit of one simplified monthly bill and easy administration. The Kaiser Permanente Choice Solution Web site, www.kpchoicesolution.com, offers tools for brokers, employers and members. Brokers can manage their accounts online and receive assistance anytime, 24/7. Employers and Members can log in to get instant access to helpful health related information, links and special offers. www.choiceadmin.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. New England Flooding, Gulf Coast Hurricanes can Happen in New York, says Independent Insurance Agents, Brokers of NY (DeWitt, New York, May 31, 2006) — Thousands forced from both homes and communities as the worst flooding in 70 years wreaks havoc in the region. Torrential rains threaten dams across sections of three states. Governors of the affected areas ask Washington leaders for assistance. This paints a picture of the Gulf Coast in the days following Katrina, or more recently, the spring rains that soaked New England. New York state, with its similar climate, geography and terrain to that of New England, could easily encounter the same heavy precipitation and winds that pounded its neighboring states. The Independent Insurance Agents & Brokers of New York, Inc. advises that national weather organizations such as the National Oceanic & Atmospheric Administration are predicting an active 2006 Atlantic hurricane season, which begins on June 1. IIABNY, the not-for-profit trade association representing 1,900 independent insurance agencies and brokerages across New York state, cautions property owners and renters to prepare for stormy weather well in advance and take necessary steps to avoid financial catastrophe. Contact your insurance agent to determine if your property’s insurance is adequate, and add coverage to reflect home improvement that may have increased its value. Also, consider buying flood insurance. Homeowners insurance does not cover flood losses, and flood coverage is available from most agents. The Federal Emergency Management Agency administers the National Flood Insurance Program, which enables property owners in participating communities to obtain this important protection. Keep in mind that flood insurance does not take affect until 30 days after its purchase. Renters can also protect their belongings through renters and flood insurance. To learn more about evacuation, securing your home, storm surges and many other disaster related topics, visit NOAA’s Website, at http://www.nhc.noaa.gov/HAW2/english/intro.shtml. IIABNY offers a list of independent agents on its Website, www.iiabny.org. At the top of the home page on the right, click on the “Find an Agent” link. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Keeping Current Now Available as Pod Cast Newtown Square, PA - Keeping Current, the highly respected source of practical guidance and expert commentary on current tax cases and rulings produced by the Society of Financial Service Professionals (FSP), is now available via pod cast. This quarterly audio production, which has been keeping financial professionals abreast of the latest tax cases and court rulings since 1970, is supported by an in-depth Web site ( www.keepingcurrent.com ) that provides access to supporting documents, case studies, court rulings and commentaries, as well as a listing of recommended articles from leading journals. In addition, the site hosts a searchable database of back issues. www.financialpro.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Fairlane Financial Corp and North American Company for Life and Health Insurance Partner to Market New "Baby Boomer" Product Ft. Lauderdale, FL June 1, 2006 -- Fairlane Financial has announced the creation of a Baby Boomer fixed annuity The Boomer Annuity, developed by Fairlane and North American Company for Life and Health (NACOLAH). The "Boomer" product reflects a shared commitment of providing new sales opportunities in a new target market. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Prudential Financial Finalizes Its Acquisition of Allstate Financial's Variable Annuity Business NEWARK, N.J.--(BUSINESS WIRE)--June 1, 2006--Prudential Financial, Inc. (NYSE: PRU) today announced the closing of its acquisition of Allstate Financial's variable annuity business through a reinsurance transaction. This makes Prudential the third largest provider of advisor-sold* variable annuity products as measured by assets under administration and management and the fourth largest as measured by sales (Source: VARDS as of 12/31/05). Prudential's initial investment in the business, reflecting total consideration to Allstate, related taxes, and capital requirements, is approximately $591 million. This amount reflects a price adjustment paid to Allstate for market movements between signing and closing. Over the course of a transition period of up to 24 months from closing, Prudential will assume the administration of Allstate Financial's in-force variable annuities, with account values of approximately $17 billion (value as of March 31, 2006). www.prudential.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
21. Seniors Can Still Enroll in Medicare Health Plans, Even After May 15 Deadline; Medicare Advantage Enrollment Still Open; Plans May Save Seniors Money on Prescription Drugs LOUISVILLE, Ky.--(BUSINESS WIRE)--June 1, 2006--Although the May 15 Medicare prescription drug plan (PDP) enrollment deadline has passed, many seniors eligible for Medicare may still enroll through June 30 in Medicare Advantage plans. These plans offer comprehensive medical benefits and may help seniors save money on prescription drugs. After June 30, the ability to enroll in Medicare health plan will be limited to those who meet certain criteria specified by the Centers for Medicare and Medicaid Services (CMS) until the next enrollment period, which begins November 15, 2006. "With all of the publicity surrounding the May 15 deadline, many people are unaware they may still be able to enroll in a Medicare Advantage plan, through June 30," said Steve Brueckner, vice president for senior products for Humana. "More than four million consumers still have the opportunity to sign up for Medicare health plans, if they have not already used all their enrollment elections. They need to know their options so they can choose the best, most cost-effective plan based on their individual needs." www.humana.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Transurance Services Announces New Property Insurance Product ''Property Transurance (SM)'' TRUMBULL, Conn.--(BUSINESS WIRE)--June 1, 2006--Transurance Services, LLC is now offering a new insurance product for large companies called Property Transurance. This product helps to pay the collateral or indirect costs companies incur following large property losses. With every large insurable property loss there are numerous indirect costs that are not covered by property insurance. "Many expenses are too difficult to describe or quantify to include in a traditional insurance policy. Other costs are not provable or are deemed too discretionary to be covered by traditional insurance. Companies need funds that they can use to pay for these costs, as they see fit, without qualification. Property Transurance provides these funds," said Bruce B. Thomas, managing director, Transurance Services. www.transuranceservices.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Montpelier Re Holdings Ltd. Announces Terms of Forward Equity Transaction HAMILTON, Bermuda--(BUSINESS WIRE)--June 1, 2006--Montpelier Re Holdings Ltd. (NYSE: MRH) (the "Company") announced today the terms of its two equity forward sale agreements under which it is entitled to sell common shares to an affiliate of Credit Suisse Securities (USA) LLC (the "forward counterparty") for proceeds of approximately $180 million (or $205 million if the underwriter exercises its over allotment option). Under the terms of the two forward sale agreements, the Company will sell an aggregate of between 9,796,388 and 15,694,800 common shares (or between 11,132,259 and 17,835,000 common shares if the underwriter exercises its over allotment option in full) to the forward counterparty, subject to the Company's right to cash settle or net share settle such agreements. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. State Auto Insurance Offers Policyholders Identity Theft Protection Program; Joining the Fight against ID Theft Crime COLUMBUS, Ohio--(BUSINESS WIRE)--June 1, 2006--The State Auto Insurance Companies announced today they will be providing their homeowner and farmowner policyholders with their new Identity Theft Protection Program. Partnering with Arizona-based Identity Theft 911, policyholders will have a full-range of services at their fingertips, at no additional cost. Augmenting the program of identity fraud-related resolution, State Auto policyholders will also receive assistance in recovering or re-creating missing personal identification after the occurrence of a natural disaster or other mishap. In addition, State Auto will provide an endorsement, Identity Fraud Expense reimbursement coverage, also at no additional cost. www.identitytheft911.com www.stateauto.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Willis Re to Collaborate with Accurate Environmental Forecasting NEW YORK--(BUSINESS WIRE)--June 1, 2006--Willis Group Holdings (NYSE: WSH), the global insurance broker, today announced an exclusive reinsurance intermediary relationship with Accurate Environmental Forecasting, a provider of numerical weather prediction based hurricane hazard products. The new information will offer Willis Re primary insurance clients an independent scientific view of hurricane climate forecasts and the potential financial impacts of hurricanes when they threaten the U.S. coastline. "The volume of information that is emerging regarding the influence of climate on hurricanes demands that insurers remain informed and fully review the implications on their catastrophe risk," said Julie Serakos, who leads Willis Re's global catastrophe modeling practice. "Access to AEF scientists and their detailed forecast products will enable our clients to gain deeper insights into a wider range of climate outcomes that could affect their reinsurance needs." In advance of an active hurricane season, the AEF information will enable Willis Re clients to consider the effect of many probable climate scenarios on their catastrophe risk, complementing the average increase in hurricane activity that was introduced in commercial catastrophe models this spring. "The latest research on Atlantic sea surface temperatures shows that hurricane activity over the next several years is expected to be above the historical average," said Isaac Ginis, President and CEO of AEF. "We are excited to make our research on the risk implications of elevated hurricane frequency available to primary insurers through our strong relationship with Willis Re." AEF's hurricane forecast information is expected to be available to Willis clients this hurricane season. www.willisre.com http://www.accufore.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. The Hartford Licenses AdminServer's Policy Administration Solution; AdminServer System to support retirement products CHESTER, Pa.--(BUSINESS WIRE)--June 1, 2006--AdminServer, Inc. announced today that The Hartford Fire Insurance Company (The Hartford) has licensed AdminServer's policy administration system, further strengthening the company's growing technology platform. www.AdminServer.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Securian Launches Innovative Annuity Using NaviSys Home Office(R); SecureLink Fixed Indexed Annuity Offers Fixed Interest Based on Equity Index Performance with a Minimum Interest Rate Guarantee EDISON, N.J.--(BUSINESS WIRE)--June 1, 2006--NaviSys, Inc., the market leader in front-to back-office solutions for life insurers, today announced that Securian Financial Group, Inc. is using NaviSys Home Office(R) to support a new annuity product. SecureLink is a fixed indexed annuity offering fixed interest based on equity index performance with a minimum interest rate guarantee. NaviSys Home Office is a next-generation, rules-based policy administration solution that enables insurers to quickly launch and efficiently administer the full range of life insurance and annuity products. www.securian.com www.navisys.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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