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Page - Benefits Marketing Association - 888-282-1765 1. Insurers may pay for misuse of stock options By Ed Leefeldt - NEW YORK, June 13 (Reuters) - Insurers providing liability insurance to corporate directors and officers may have to pay for legal expenses -- and perhaps even multimillion-dollar damage awards -- for company officers that manipulated stock options to benefit their managers, industry executives said. The U.S. Securities and Exchange Commission and federal prosecutors are investigating scores of companies - many of them high-technology firms - for possible options abuses. Backdating means retroactively setting the grant date and exercise price of options to before a rally in the underlying shares, making the options worth more. "It is definitely going to affect us as D&O (director and officer liability) carriers," said Jim Nestheide, vice president of financial and professional services at St. Paul Travelers Cos. Inc. (STA.N:). "At least 71 companies have been named, and 18 to 20 companies already sued." In some cases, probably most, D&O carriers will have to pay the cost of suits against company officers and directors. If shareholders can prove they were damaged by executives who took corporate profits they weren't entitled to, things could get worse. "If their accounting has been irresponsible, they could have to restate earnings," said John Rafferty, head of the D&O practice at Hartford Financial Services Group Inc. (HIG.N:). "That could result in shareholder class action lawsuits." Such lawsuits typically have settlements of $10 million, but a few of them get settled for much bigger sums, and costs could be much higher in some cases, insurance executives warn. "It's a potential reopening of the same can of worms that we saw with Enron (Corp. (ECSPQ.PK:)) and Worldcom (Inc. (MCWEQ.PK:))," said Robert Hartwig, chief economist with the Insurance Information Institute. "The financial damage is smaller. But it sure smells to high heavens." The issue has the potential to stunt the growing D&O market, where billions of dollars in premiums are written each year, said executives. D&O covers the officers and directors of virtually every company in case they are sued and found to be personally liable. Or, inversely, it could help insurers in this specialized market. "Even without knowing the extent of the losses, it will be an incentive to raise rates," said Donald Light, an insurance analyst with Celent LLC. American International Group Inc. (AIG.N:) and Chubb Corp. (CB.N:) lead the D&O market, in which Ace Ltd. (ACE.N:), Hartford and St. Paul are also major players. The problem for insurers is that the federal probe is still in its early stages. "It's unclear to us," said John Doyle, who heads National Union, the AIG unit that provides D&O. "Many of these cases are still being investigated and shareholder lawsuits can go on for years." Insurers said they will be watching SEC Chairman Christopher Cox for signals on how big the scandal will get. The SEC is now investigating "spring-loading" of options, which are issued just before good news comes out, according to lawyers familiar with the situation. D&O carriers said they would be more careful in issuing policies in the future. "It's not necessarily a question of price, but whether any underwriter would be even willing to offer coverage to a company that didn't have strict policies and procedures regarding stock options," said Mark Schussel, a spokesman for Chubb. On Monday, online job site Monster Worldwide Inc. (MNST.O:) and four other companies disclosed new inquiries into options granting, widening the federal probes. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Corp. health insurance rates rise more slowly-study NEW YORK, June 13 (Reuters) - Preliminary rates that U.S. employers will pay health insurers in 2007 for coverage are rising in double-digits again, although such rates are increasing at a slower pace, a study said on Tuesday. Preliminary data for next year gathered by Hewitt Associates, a human resources services company, showed initial rate increases averaging 11.7 percent. That compares to increases of 12.4 percent in 2006, 13.7 percent in 2005 and 16.7 percent in 2004. "It's very, very good news that it's coming down, but nobody's going to be real thrilled with a double-digit increase," said Paul Harris, senior health-care strategist for Hewitt. The preliminary results are from offers made from insurers to their employer clients that take effect beginning next year, Harris said. Such preliminary rates come before negotiations, and final increases could be lower, he said. "If the pattern follows prior years, we would expect to end up at about 7 or 8 percent," Harris said. That compares to a final 2006 increase of 10 percent. Hewitt said the preliminary rate information comes from data collected from 160 large companies representing more than 1 million employees. Certain regions of the country showed higher initial rate increases. For example, the preliminary analysis showed a 13.7 percent rise for the Western United States compared to 10.9 percent at this time last year, and a 11 percent increase in the Southeast compared to 9.4 percent. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. HMO Rate Increases Continue to Decline for Fourth Consecutive Year, According to Hewitt Associates; U.S. Employers Remain Focused on Managing Costs Preliminary* HMO Rate Increases 2004-2007 by Region (Graphic: Business Wire) Final HMO Rate Increases for 2006 by Region (Graphic: Business Wire) LINCOLNSHIRE, Ill.--(BUSINESS WIRE)--June 13, 2006--Preliminary information from Hewitt Associates, a global human resources services company, shows that 2007 HMO rates will increase approximately 11.7 percent -- representing the fourth consecutive year of declining rate increases. As U.S. companies begin to negotiate HMO plan rates for 2007, data from Hewitt Health Resource(TM) (HHR) -- a Web site that captures HMO rate information for nearly 160 large companies representing more than 1 million employees and annual premiums of nearly $4 billion -- shows that initial 2007 HMO rate increases are averaging 11.7 percent(1) compared with 12.4 percent in 2006 and 13.7 percent for 2005. After plan changes, negotiations and terminations, the final average HMO rate increased by 10 percent in 2006 (see attached chart). "Although there has been a steady decline in the level of HMO rate increases over the past several years, double-digit increases are still very difficult for employers to absorb," said Paul Harris, senior health care strategist, Hewitt Associates. "The good news is that there do not appear to be market pressures that might cause rates to begin increasing again. We are continuing to work closely with employers in developing benefit programs that make the most of their current resources, while still providing their employees with high-quality health care coverage." www.hewitt.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. RNK Capital and Swiss Re Structure First Insurance Product for CDM Carbon Credit Transactions - Insurance Instrument Mitigates Kyoto-Related Transaction Risk for Global Carbon Credit Trading - NEW YORK, June 13 /PRNewswire/ -- RNK Capital LLC (RNK), a New York-based private investment firm specializing in the U.S. and international environmental markets, and Swiss Re, the world's leading and most diversified global reinsurer, today announce they have jointly implemented the carbon markets' first insurance product for managing Kyoto Protocol-related risk in carbon credit transactions. The insurance product enables RNK to mitigate a key risk factor in carbon credit transactions and enhance the value of RNK's carbon credits portfolio. The insurance product, which was developed by Swiss Re and RNK, covers Kyoto-related risk to carbon credit purchases by RNK. The policy, issued by Swiss Re subsidiary European International Reinsurance Ltd., provides coverage for the risks related to Clean Development Mechanism (CDM) project registration and the issuance of Certified Emission Reductions (CERs) under the Kyoto Protocol's CDM. These risks include the failure or delay in the approval, certification and/or issuance of CERs from CDM projects by United Nation Framework Convention on Climate Change (UNFCCC). "RNK Capital invests in CDM and Joint Implementation projects that other investors will not consider due to project and system risks that cannot be efficiently spread to the market," said Robert Koltun, portfolio manager and managing member. "Swiss Re's coverage of project registration and issuance risks complements RNK Capital's ability to assess, value and invest in climate change projects. Kyoto-related risk is the only part of the risk equation we were previously unable to mitigate or manage. This insurance policy allows RNK to invest in carbon emissions reduction projects at an even earlier stage of the process, and to commit a greater share of fund resources." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Sedgwick CMS and Fidelity National Financial Announce Acquisition of CompManagement MEMPHIS, Tenn., and JACKSONVILLE, Fla., June 13 /PRNewswire-FirstCall/ -- Sedgwick CMS Holdings, Inc., the parent company of Sedgwick Claims Management Services, Inc. (Sedgwick CMS), the leading provider of innovative claims and productivity management solutions, has signed a definitive agreement to acquire CompManagement, Inc. (CMI) and its affiliated companies through a merger of a subsidiary of Sedgwick CMS Holdings with CMI's parent company, Security Capital Corporation (AMEX: SCC), for a cash purchase price of approximately $191.5 million. Today's announcement comes jointly from Sedgwick CMS and from Fidelity National Financial, Inc. (NYSE: FNF), a principal equity holder of Sedgwick CMS Holdings, Inc. along with Thomas H. Lee Partners, L.P. and Evercore Capital Partners. CMI and its affiliates provide third-party claims administration (TPA) and a variety of related claims, risk and benefits consulting services to clients nationwide. Combined 2005 revenue was $145 million. www.sedgwickcms.com www.fnf.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. Precis Announces Intent to Acquire Insurance Sales and Marketing Organization GRAND PRAIRIE, Texas, June 13 /PRNewswire-FirstCall/ -- Precis Inc. (Nasdaq: PCIS) announced today that it has entered into a non-binding letter of intent to acquire Insuraco USA, L.L.C., a Fort Worth, Texas company providing web-based technology, specialty products and marketing for the insurance and financial services industry. Precis Inc. is a provider of access to affordable healthcare services to the ever growing number of uninsured and/or underinsured in the United States. It is estimated that over 45 million Americans are currently without healthcare coverage. Insuraco is a wholly-owned subsidiary of Insurance Capital Management, Inc. ("ICM") and specializes in selling major medical individual health insurance and specialty medical and benefit plans for affinity groups, associations, employers and other groups. Insuraco commenced operations in 2004. Peter W. Nauert, the founder and Chief Executive Officer of ICM and Insuraco, would be named Chief Executive Officer of Precis at the close of the transaction. Prior to founding ICM, Mr. Nauert served as Chief Executive Officer of Ceres Group, Inc., QQLink, and Pioneer Financial Services, Inc. www.precis-pcis.com, www.accesshealthsource.com www.care125.com www.icmusa.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. DocuSign(R) Settles Patent Infringement Suit SEATTLE, June 13 /PRNewswire/ -- DocuSign, Inc. ( www.docusign.com ), the leading on-demand, electronic signature service, today announced that it has successfully defended one of its core patents in an intellectual property lawsuit against Yozons, Inc. The federal district court lawsuit was concluded in a settlement reached on January 23, 2006. Under the terms of the settlement, Yozons is required to pay DocuSign a royalty on revenues generated from its online e-signature solution. The settlement also confirmed the validity and enforceability of DocuSign's patent (US patent No. 6,289,460).The patented DocuSign technology revolves around the fundamental way that electronic documents are managed and signed using the Internet. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. SURVEYS INDICATE PROGRESS TOWARD MARKET REGULATION REFORMS Examinations are more targeted, less costly WASHINGTON, D.C. (June 13, 2006) – The National Association of Insurance Commissioners (NAIC) is encouraged by the survey results indicating state insurance regulators have made progress in instituting market regulation reforms. State departments of insurance and industry trade organizations recently conducted separate surveys as a way to collect information on the changes in type, cost and duration of market conduct activities from 2003 to 2005. Data from the surveys indicate states have decreased the use, length and cost of market examinations while increasing actions along the continuum of regulatory options. The state survey found that examinations with company-paid expenses of over $100,000 fell dramatically, by 67 percent, from 2003 to 2005, and the number of examinations lasting longer than one month has decreased by 33 percent. Industry surveys found similar results. State regulators are more often using a wider range of regulatory options, such as interrogatories and inquiries, which generally require less time and resources for companies, the surveys indicated. www.naic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. AIR Worldwide President and CEO Warns Members of Congress and Staff of Increasing Natural Catastrophe Risk BOSTON, Jun. 13, 2006 - AIR Worldwide President and CEO, Karen Clark, will advise Members of Congress and their senior staff today that hurricanes and earthquakes have the potential to cause insured losses in excess of $150 billion and total economic losses approaching $500 billion. Ms. Clark is participating in a seminar at the U.S. Capitol Building hosted by the Congressional Research Service (CRS) titled “Insuring and Mitigating Risks of Large-Scale Disasters: Is Federal Disaster Insurance Needed?” “There are many potential natural catastrophe scenarios resulting in insured property losses exceeding $100 billion,” said Ms. Clark. “Examples include a Category 5 hurricane making landfall in Miami, which could result in insured losses of more than $130 billion, and a large magnitude earthquake in the Central U.S., which could result in insured losses of more than $150 billion.” Ms. Clark will provide an overview of the financial threat posed to insurers, policyholders, and the economy as a whole by increasing insured property values in high-risk areas. AIR estimates the total value of properties has roughly doubled over the past 10 years and expects this trend to continue in the foreseeable future. “There is a one percent probability of an insured property loss exceeding $100 billion this year,” said Ms. Clark. “That may appear small to some, but the probability of experiencing this loss or greater over the next 10 years is almost 20 percent when the continual growth in the number and value of exposed properties is included.” The CRS seminar will examine how insurance companies cope with large-scale natural disasters, and discuss the role of the government and private sectors in financing and managing catastrophe risk. For more information on the insured value of coastal properties, see AIR’s recent report The Coastline at Risk at www.air-worldwide.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. NAIC ADOPTS ENHANCED “MODEL AUDIT RULE” WASHINGTON, D.C. (June 12, 2006) – The National Association of Insurance Commissioners (NAIC) has voted to amend its Model Regulation Requiring Annual Audited Financial Reports, commonly known as the Model Audit Rule. The amendments relate to auditor independence, corporate governance, and internal control over financial reporting. The adopted revisions require that insurance companies have an audit committee and indicate that some audit committee members may need to be independent from management. The adopted revisions also require that insurance companies with $500 million or more in direct and assumed premium file a report with the state insurance department regarding its assessment of internal control over financial reporting. The scheduled effective date is January 1, 2010. www.naic.org/press_home.htm Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Industry Leaders UnumProvident, Matria Healthcare Launch Disease Management Partnership CHATTANOOGA, Tenn. (June 12, 2006) – UnumProvident (NYSE: UNM) today announced it has joined with Matria Healthcare (NASDAQ: MATR) to create a new disability and disease management partnership aimed at helping employers combat rising healthcare costs and improve workforce productivity. “UnumProvident’s partnership with Matria is significant as it brings together the expertise of the industry’s leading disability carrier and disease management provider to create a valuable service that helps our customers respond more effectively to health and productivity issues,” says UnumProvident President and CEO Thomas R. Watjen. Under the new alliance, UnumProvident will link its disability claims management expertise with Matria’s innovative disease management programs to better supplement and manage the care of employees with chronic or high-cost health conditions. In addition to the direct healthcare costs attributed to employees with chronic conditions, the indirect costs to employers of absenteeism and decreased productivity are significant. “Employers are moving beyond traditional and largely unsuccessful methods of trying to control spiraling healthcare costs in favor of condition or disease management, which addresses both costs and employee productivity,” says Kevin McCarthy, executive vice president of risk operations for UnumProvident. “In response to their changing needs, we have created an objective approach that can help employers see and manage the full spectrum of cost drivers for disability and medical. Not only can we then respond to employers’ specific needs, but ultimately we can impact employee health and productivity.” www.unumprovident.com www.matria.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Democrats Trying to Hide Half-Billion Dollars for Illegal Immigrant Healthcare in State Budget, States Assemblyman Chuck DeVore, Who Demands Removal Before Budget Vote SACRAMENTO, Calif.--(BUSINESS WIRE)--June 12, 2006--Assemblyman Chuck DeVore is demanding that legislative Democrats remove a $500 million budget allocation for illegal immigrant healthcare from the proposed state budget. This Saturday during the Legislative Budget Conference Committee meeting, Democrats expanded the Healthy Families program to cover illegal immigrants and families of four with annual incomes of about $53,000. "At a time when California has billions of dollars in debt, the last thing our state should be doing is increasing healthcare entitlements for illegal immigrants," explained Assemblyman DeVore. "Whatever government subsidizes, it gets more of -- we should not increase the incentives to illegally come to California." The Healthy Families program provides low-cost health insurance. Under federal rules, illegal immigrants and families of four making more than $44,000 a year are ineligible for the program. For more information please visit his website at www.assembly.ca.gov/devore. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Latino Advocacy Group Blasts Catholic Healthcare West's 'Zip Code List' Excludes Latinos in East L.A. From Uninsured Plan LOS ANGELES, June 13 /PRNewswire/ -- Embattled not-for-profit hospital giant Catholic Healthcare West (CHW) was accused of "codifying economic racism and blatantly discriminating against uninsured Latinos" after it was uncovered that CHW will only offer discounted pricing to uninsured patients who live in specific Zip codes in California, Arizona and Nevada, while excluding residents of East Los Angeles of the 90022 and 90023 Zip Codes, according to public documents filed in California state court. "CHW has created another ridiculous barrier so uninsured patients will be stuck paying four to five times more than what an insurance company would pay for the exact same care," said K.B. Forbes, Executive Director of the Consejo de Latinos Unidos, a national advocacy group that assists and educates uninsured patients. "CHW has indeed created a fool-proof way to offer a discount program for no one." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Catholic Healthcare West's Discount Plan for the Uninsured Excludes 99% of the Uninsured Congressional Investigators Alerted About Embattled Hospital Giant's 'Price-Gouging Protection Policy' SAN FRANCISCO, June 12 /PRNewswire/ -- In a stinging rebuke of three Congressional probes, embattled not-for-profit hospital giant Catholic Healthcare West (CHW) filed a proposed discount program for the uninsured that would exclude anyone who had had or could have qualified for health insurance 24 months prior to when emergency hospital services were rendered, according to public documents filed in California state court. "CHW has created an insidious plan that would intentionally exclude 99 percent of the uninsured patients who enter their hospital without insurance," said K.B. Forbes, Executive Director of the Consejo de Latinos Unidos, a national advocacy group that assists and educates uninsured patients. "CHW has gone three steps backwards and appears to be engaged in a deliberate campaign to deceive uninsured patients, congressional investigators, and the media by creating a bureaucratic, draconian discount program that benefits no one except, of course, CHW." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Lexington Insurance Introduces New Warehouse Legal Liability Insurance; New Coverage Enhances Lex TransportPlus(sm), a Suite of Policies for Logistics and Transportation Industries NEW YORK--(BUSINESS WIRE)--June 13, 2006--Lexington Insurance Company, a member company of American International Group, Inc. (AIG), today introduced Warehouse Legal Liability insurance, a new policy providing coverage for the warehousing, trucking and logistics industries. The new policy addresses legal liability that may arise from the loss of property in the insured's custody*. Warehouse Legal Liability insurance can be purchased alone or as part of Lex TransportPlus, a product suite that includes motor cargo, vehicle physical damage, building personal property, business interruption, and other logistics-focused insurance coverages from Lexington and other AIG member companies. Defense costs are paid outside of the policy limits. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. XL Insurance Announces New D&O Product For UK Market LONDON, June 13 /PRNewswire-FirstCall/ -- XL Insurance Ltd, a subsidiary of XL Capital Ltd (NYSE: XL) ("XL"), announced today that its UK-based professional lines business has added a new product specifically tailored to the directors and officers insurance market in the UK. The new product, known as "A PLUS D&O UK", was revealed today at UK-based Association of Insurance and Risk Managers (AIRMIC) annual conference in Bournemouth. The product is designed specifically for UK domiciled companies, taking into consideration recent changes to the Companies Act in the UK and increasing corporate governance duties and responsibilities. The new policy also provides excess difference-in-conditions coverage above an existing D&O liability policy. www.xlcapital.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. AMA Adds Individual Responsibility to Plan to Cover the Uninsured; New Policy Calls for All Americans to Purchase Health Insurance CHICAGO, June 13 /U.S. Newswire/ -- Today, the American Medical Association (AMA) voted at its Annual Meeting to support individual responsibility as an additional approach to cover the more than 46 million uninsured Americans. "The uninsured live sicker and die younger than the rest of Americans primarily because they do not seek care before their health status reaches crisis proportions," said AMA Board Member Ardis Hoven, M.D. "Physicians, policymakers and others must work together to extend health care coverage to all." http://www.usnewswire.com/ /© 2006 U.S. Newswire 202-347-2770/ Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. New Research from EBRI: Study Details Impact of Reform Alternatives on Social Security Benefits WASHINGTON, June 13 /U.S. Newswire/ -- The nonpartisan Employee Benefit Research Institute (EBRI) today published another in a series of studies examining how potential changes in Social Security could affect future benefit levels. The new article, appearing in the June 2006 EBRI Notes, examines the changes in the distribution of benefit levels Social Security recipients would receive under each of five different reform alternatives. In addition, the article calculates for each beneficiary the amount of savings that would need to be accumulated in order to purchase a payout annuity (an insurance product that provides a regular lifetime stream of earnings) to compensate for the decrease Social Security benefits that would occur under these alternatives compared with current law. The article is available at http://www.ebri.org. The June article builds on a study published in the April 2006 EBRI Notes, which examined changes in the distribution of Old-Age and Survivors Insurance benefits (the primary Social Security program) under the same five reform alternatives. The April article noted that any changes in Social Security could have a dramatic effect on the percentage of elderly living below the poverty level. The April article is available at http://www.ebri.org/pdf/notespdf/EBRI_Notes_04-20061.pdf EBRI published two studies in 2005 examining the impact of various Social Security reform options: -- The July 2005 EBRI Notes contained an article which concluded that protecting disability benefits would mean deeper cuts elsewhere: If disability benefits were to be preserved at current-law levels, retiree benefits could be faced with cuts of an additional 25 percent to 40 percent (or an equivalent increase in revenue) above what would be needed to close the funding gap in the Social Security program. The article is available at http://www.ebri.org/pdf/notespdf/EBRI_Notes_07-20051.pdf -- The May 2005 EBRI Issue Brief was devoted to a comprehensive study showing how various policy options, including the creation of individual accounts, and other variables could affect Social Security benefit levels. The May 2005 study built on work done by EBRI on individual accounts beginning in 1981 and is available http://www.ebri.org/pdf/briefspdf/0505ib.pdf http://www.usnewswire.com/ /© 2006 U.S. Newswire 202-347-2770/ Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Health Policy Institute of Ohio: Almost Two-Thirds of Ohio Seniors Lack Dental Insurance, Almost Half Lack Vision Coverage COLUMBUS, Ohio, June 12 /U.S. Newswire/ -- Almost two-thirds of Ohio seniors lack dental insurance, while almost half lack vision coverage. These are just a few of the findings of a new data brief from the Health Policy Institute of Ohio. The Institute analyzed data from the 2004 Ohio Family Health Survey, which showed that the overall uninsured rate for all Ohioans is 10.7 percent, or 1.2 million people. While this means the vast majority of Ohioans have access to some form of health coverage, the data also shows that the number of Ohioans who lack specific types of health care coverage--such as dental, vision, mental health, and prescription medication coverage--is much greater that the number who are uninsured. For example, while almost no Ohio seniors are uninsured (due to Medicare coverage), people age 65 and older lack other health coverage at extremely high rates, with 65.7 percent of seniors lacking dental insurance, 49.0 percent without vision coverage, and 28.8 percent without prescription medication coverage. In addition, adults ages 18 to 64 are more likely than children to lack coverage for these health services, with 42.7 percent of adults and 23.3 percent of children lacking dental insurance, 36.2 percent of adults and 25.6 percent of children lacking vision insurance, 20.9 percent of adults and 8.5 percent of children lacking prescription medication coverage, and 23.3 percent of adults lacking mental health coverage (data was no available for children's mental health coverage). Many factors affect whether or not individuals are able to get the health care services they need. Research does show, however, that having health insurance coverage is of critical importance to receiving health care services. For more information on this data brief, including additional data on differences of health coverage based on poverty, health status, gender and race/ethnicity, see http://www.healthpolicyohio.org/publications/insurancecoverage.html. http://www.usnewswire.com/ /© 2006 U.S. Newswire 202-347-2770/ Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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21. Federal Action Needed to Enroll More Low-Income Seniors, Disabled Persons in Program to Pay Their Medicare Premiums WASHINGTON, June 12 /U.S. Newswire/ -- Federal action is needed to enroll more low-income elderly and disabled people in the Medicare Savings Programs, which can help pay their Medicare premiums and other charges, according to a report released today by an independent expert panel of the National Academy of Social Insurance (NASI). The roles and responsibilities of federal and state governments need to be sorted out, the panel said, and additional federal financing should be provided. "Increasing enrollment in the Medicare Savings Programs is vital in reducing financial barriers to health care for low-income Medicare beneficiaries," said Jack Ebeler, chair of the study panel and president of the Alliance of Community Health Plans. "Better aligning the Medicare Savings Programs with Medicare's low-income prescription drug subsidy offers an opportunity to increase enrollment in both programs." The panel's conclusions are described in detail in its final report, Improving the Medicare Savings Programs, which is available for download free-of-charge from the NASI Web site at http://www.nasi.org. http://www.usnewswire.com/ © 2006 U.S. Newswire 202-347-2770/ Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Williams in $290 million class-action settlement Tue Jun 13, 2006 8:21am ET - NEW YORK (Reuters) - Natural gas and pipeline company Williams Cos. Inc. (WMB.N:) on Tuesday said it has struck a deal to settle class-action lawsuits filed for people who bought Williams stock between July 2000 and July 2002. Williams said it will pay $290 million to settle, subject to court approval, with anywhere from $145 million to $220 million of that in cash and the rest funded by insurers. The settlement does not include any admissions of liability or violations of securities laws. The company said it expects a second-quarter after-tax charge of $98 million to $148 million, or 16 cents to 24 cents per share. Preliminary approval from a federal court in northern Oklahoma is expected as soon as mid-August. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. RiverSource Investments Launches New Mutual Funds Including RiverSource Retirement Plus(SM) Series MINNEAPOLIS--(BUSINESS WIRE)--June 13, 2006-- RiverSource Investments, LLC, a subsidiary of Ameriprise Financial, Inc. (NYSE:AMP), launched 10 new mutual funds: eight RiverSource Retirement Plus Series target-date funds-of-funds, RiverSource(SM) Disciplined International Equity Fund and RiverSource(SM) Disciplined Small and Mid Cap Equity Fund. The funds are currently available to both institutional retirement plan sponsors and to individual investors through Ameriprise financial advisors. www.ameriprise.com www.riversource.com/investments Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. XN Financial Expands Service in High Net Worth Market With XN Private Client Services Web Platform BOCA RATON, Fla.--(BUSINESS WIRE)--June 13, 2006--XN Holdings, Inc., parent company of XN Financial and XN Risk Insurance Services, today announced the launch of XN Private Client Services on the web at www.xn.com/pcs. Leveraging its success with International assignees, XN Financial tailored XN Private Client Services to the unique insurance product and service needs of high net worth individuals. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. BCF Technology Announces Partnership with OneBeacon Insurance Group; New Partnership Will Enable the Implementation of Industry-Leading Web Services for New Business Quoting CHARLOTTE, N.C.--(BUSINESS WIRE)--June 13, 2006--BCF Technology, Inc., a leading provider of Web Services, integration & aggregation of data, competitive intelligence information, and single sign-on technology solutions for insurance and financial services announced today that OneBeacon Insurance Company, a leading insurer and a member of the OneBeacon Insurance Group, has chosen the BCF Technology TRANSIT-Web Services (WS) platform for new business processing. www.bcftech.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. MemorialCare Joins American Excess Insurance Exchange, Risk Retention Group; Group is Managed by Premier Insurance Management Services, Subsidiary of Premier Inc. Healthcare Alliance CHARLOTTE, N.C.--(BUSINESS WIRE)--June 13, 2006--MemorialCare, a five-hospital system anchored by Long Beach Memorial Hospital in Long Beach, CA, has joined the American Excess Insurance Exchange, Risk Retention Group. As one of 17 owners of the AEIX Risk Retention Group, MemorialCare will benefit from enhanced control over its insurance coverage and premiums, ownership in the profits of AEIX, and the opportunity to receive future return of premiums paid in the form of dividends. www.premierinc.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Humana Military Healthcare Services Contributes $100,000 to the Pentagon Memorial Fund LOUISVILLE, Ky., June 13 /PRNewswire/ -- Humana Military Healthcare Services, Inc. (HMHS), the TRICARE South Region managed care support contractor, recently contributed $100,000 to the Pentagon Memorial Fund. As a Department of Defense (DoD) contractor, HMHS understands the importance of the Pentagon to the military community. www.humana.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Automated Benefits Corp. Signs Additional U.S. Insurance Company WATERLOO, Ontario, June 13 /PRNewswire/ -- Symbility Solutions, a wholly owned subsidiary of Automated Benefits Corp. (TSX VENTURE: AUT) today announced First Insurance Company of Hawaii, Ltd. (FICOH) has selected the Symbility mobile claims solution to improve the accuracy and speed of its claims processing by allowing the on-site collection of loss information. www.symbilitysolutions.com www.autoben.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Rental Car Confusion: Do Consumers Really Need the Collision Damage Waiver? PEMCO's Northwest Insurance Poll reveals almost a quarter of Washington drivers buy additional insurance coverage they might not need SEATTLE, June 12 /PRNewswire/ -- One out of five Washington drivers might be wasting money by purchasing the additional Collision Damage Waiver (CDW) offered by rental car companies, according to PEMCO's latest Northwest Insurance Poll. "Almost half of Washington drivers rented a car for personal reasons in the past three years," said Jon Osterberg, PEMCO's spokesperson. "Of those drivers, 20 percent bought additional rental car insurance coverage they might not have needed." The drivers who purchased the CDW might have already been covered either by their existing auto insurance policy or by a credit card company, noted Osterberg. Still, additional rental-car coverage is entirely appropriate for some people and situations, depending on their existing coverage and their tolerance for risk. Under most auto insurance policies, coverage carries over to a rental car, provided the car is driven within the United States, the driver is authorized by the rental car company to drive the car, and it is driven under temporary circumstances. "While most auto insurance policies will cover physical damages incurred while renting a car, it's important that consumers contact their insurer to verify coverage," said Osterberg. "In most cases, the limits on their policy carry over to a rental car. For example, if they don't have collision coverage on their regular policy, they aren't covered for a collision in a rental car." Many consumers are surprised to learn they also have collision protection through their credit card company. Most major credit card companies automatically provide rental car protection if the entire transaction is completed with a credit card. "The intent is to provide supplemental insurance that augments consumers' existing auto insurance coverage," said Osterberg. In most cases, for the credit card coverage to be activated, consumers must decline the CDW offered by the rental car company, and the car must be rented under the name of the cardholder. Most credit card companies limit the rental car period to 15 consecutive days or less. www.pemco.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. American National Introduces the First Indexed Annuity With a Lifetime Income Rider Galveston, Texas – June 12, 2006 - American National Insurance Company of Galveston, Texas introduced a new indexed annuity today, the ANICO Strategy Indexed Annuity, which is the first Indexed Annuity to feature a Lifetime Income Rider. This Rider guarantees an income for life, even if the annuity value declines to zero! In addition to the Lifetime Income Rider, two other Riders are available—a Return of Premium Rider and an Enhanced Death Benefit Rider. www.img.anicoweb.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. NAIC Sarbanes-Oxley Proposal Faces Uphill Battle in the States - NAMIC will continue to advocate against the measure (Washington, D.C. June 12, 2006)--In a plenary session held Sunday at its summer national meeting, the National Association of Insurance Commissioners (NAIC) voted to approve a proposal to apply elements of the federal Sarbanes-Oxley Act (SOX) to non-public insurance companies. The new requirements are included in a set of changes to the Model Audit Rule that each state could adopt if lawmakers agree the provisions should be enacted. After two years of contentious debate, the proposal approved Sunday is significantly less burdensome and costly than earlier versions. www.namic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. InVEST Awards Student Scholarships; Announces Teacher, Volunteer Winners ALEXANDRIA, VA (June 12, 2006)—InVEST, the only education program that strengthens the insurance industry by developing a large pool of qualified recruits, has awarded more than $42,000 in scholarships to a select group of 34 high school and community college graduates who are pursuing insurance-related degrees. Each year, InVEST prepares more than 6,000 students for insurance-related jobs with a hands-on curriculum taught in high schools and community colleges. “The students make excellent candidates for jobs at agencies, carriers and vendors providing services to the industry,” said Rod Evans, chair of InVEST and president of Evans & Associates in Kinston, N.C. www.InVESTprogram.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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