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Page - Benefits Marketing Association - 888-282-1765 1. Allianz to cut about 5,000 insurance jobs--sources FRANKFURT, June 21 (Reuters) - Insurer Allianz (ALVG.DE:) plans to cut about 5,000 jobs as it restructures its German insurance operations, several sources familiar with the situation told Reuters on Wednesday. Discussions between Allianz senior management and employee representatives continued until late on Wednesday, but the bulk of the job cuts appeared to be fixed, the sources said. Several sources, who were all familiar with the details of Wednesday's talks, said management laid out plans to cut some 5,000 jobs in Germany. That would be around 12.5 percent of Allianz's German insurance workforce. "There will be some thousands of cuts and some office closures. The exact details will be released tomorrow," said one source. Allianz declined to comment. It was due to announce details of the impact on jobs of its restructuring programme at around 0500 GMT on Thursday. Allianz is also expected to cut jobs at its Dresdner Bank unit and is will also announce details on Thursday. Speculation about potential job losses at Germany's largest insurer has grown since Allianz unveiled a plan last year to streamline itself on a pan-European basis, including merging separate German insurance operations that employ 40,000. The plan at Germany's largest insurer is to bring its property and casualty, life and health insurance business under one roof, as well as merging separate sales forces, to boost efficiency and cut costs. Allianz Chief Executive Michael Diekmann has said there is no way to avoid restructuring, but the company has pledged there will be no compulsory redundancies until the end of 2007. Sources told Reuters last month that Dresdner Bank, which is carrying out a wide-ranging restructuring of its corporate customer and investment banking business, was considering scrapping hundreds of back office jobs at its investment bank, Dresdner Kleinwort Wasserstein (DrKW). Diekmann promised shareholders last month that Allianz would devote all its attention to improving income and costs at Dresdner, which has lagged rivals in terms of profitability, this year. Dresdner's head Herbert Walter has consistently cut costs at the bank, which had about 45,000 staff five years ago and employs fewer than 30,000 today. (Additional reporting by Michael Able in Munich) © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Labor Department Obtains Court Order Barring Idaho Company and Executives from Service to Employee Benefit Plans SAN FRANCISCO, June 21 /U.S. Newswire/ -- The U.S. Department of Labor obtained a consent order barring the sponsor and service provider of the ePEO Link Inc. Group Accident and Health ERISA Medical Care Plan, and their principals, from serving as fiduciaries or service providers to any employee benefit plan governed by the Employee Retirement Income Security Act (ERISA) in the future. A recent settlement of related actions filed by participating employers will result in payment of approximately $2.37 million towards the ePEO Link plan's unpaid health claims. The settlement covers ePEO Link Inc., which operated out of Couer d'Alene, Idaho, and its principals Roger Jeffrey, Jacqueline Holovka, and Frederick Roh, and Integrated Professional Insurance Services Inc. (IPIS) of Bakersfield, Calif. and its former president Lon Olmstead. "The defendants' misconduct caused workers and their families to be burdened with millions of dollars in unpaid health claims," said Secretary of Labor Elaine L. Chao. "I am pleased that the court barred the defendants from ever again being in a position to harm workers by mismanaging employee benefit plans." The ePEO Link health plan provided health benefit services as a multiple employer welfare arrangement (MEWA) to approximately 1,500 employees of participating employers in 22 states. The department sued ePEO Link and IPIS in 2005, alleging that the defendants failed to properly evaluate and underwrite benefits, collect sufficient contributions to pay promised benefits, adequately fund the plan and maintain reserves, obtain appropriate reinsurance and maintain plan reports and records required by the plan. Olmstead was separately charged with receiving commissions from the plan's contracts with re-insurers. The suit, filed in the federal district court in the Northern District of Oklahoma, resulted from an investigation conducted by the San Francisco regional office of the Labor Department's Employee Benefits Security Administration (EBSA). Tips on health benefits for small employers may be found at EBSA's Web site under http://www.dol.gov/ebsa/newsroom/fshlthinstips.html. http://www.usnewswire.com/ Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Twenty-seven month probe by the Los Angeles County Auto Insurance Fraud Task Force nets 23 total arrests – estimates more than 125 allegedly staged auto collisions, causing an estimated loss of $4 million LOS ANGELES– Insurance Commissioner John Garamendi on Thursday announced the early morning arrests of 20 suspects involved in a staged auto collision ring dubbed “Operation Freeway Squat.” The bust targeted a major auto insurance fraud ring that involved staged auto collisions which has terrorized drivers on Southern California freeways for over two years. As part of the scam, dozens of participants were recruited to participate in a “swoop and squat” staged-collision ring. Hundreds of individuals may have been involved in the ring. The 20 suspects were arrested on multiple counts of insurance fraud, some of which stemmed from staging vehicle collisions. All suspects were booked into the Los Angeles County Jail with bail amounts ranging from $30,000 to $60,000. On June 7, the Los Angeles County Auto Insurance Fraud Task Force (AIFTF) – a task force comprised of investigators from the California Department of Insurance’s (CDI) Fraud Division, California Highway Patrol, and L.A. County District Attorney’s office – served a multiple location search warrant which included one chiropractic clinic, one law office, and three residences. The AIFTF also arrested three suspects on June 7: law office administrator Ramon Alfonso Zanoletti, 52; his wife and clinic administrator Magdalena Zanoletti, 51, both from Santa Clarita; and Dr. Clarence E. Franklin, Jr., 73, of Cathedral City. The suspects were arrested for multiple counts of insurance fraud and were all booked into the L.A. County Jail, each with a $1,000,000 bail. Noting that dozens of people are suspected of participating in this staged auto collision ring, Commissioner Garamendi issued a strong warning. “It is reprehensible to put lives in danger over the reckless pursuit of cash,” said Commissioner Garamendi. “This alleged crime stemmed from greed, pure and simple. Our investigators will examine every scrap of evidence in every case to lock any perpetrators behind bars.” The AIFTF began the initial investigation into the alleged staged collision ring in March 2004, which triggered multiple search warrants and arrests warrants to be served in December 2004. Evidence from this investigation led AIFTF investigators to discover another suspected insurance fraud ring, which involved the Zanoletti couple and Dr. Clarence E. Franklin Jr., and a medical facility known as Franklin Chiropractic located in Los Angeles. AIFTF investigators discovered that Franklin Chiropractic was used in the commission of hundreds of instances of insurance fraud – estimated to have cost several insurance companies millions of dollars. First, Ramon Alfonso Zanoletti would allegedly pay “cappers” for staged collision and non-staged collision cases; then, he would obtain legal representation for these claimants/clients due to the fact he worked in an attorney’s office, according to investigators. Next, Zanoletti would refer the claimants/patients who were injured in the collision to Franklin Chiropractic, where his wife Magdalena Zanoletti worked as the clinic administrator. Investigators said Magdalena Zanoletti would instruct patients to sign in for multiple medical treatments which were never received – in some cases, the patients were instructed to sign-in 30 times or more. She would then generate false medical billings and medical reports, according to the investigation. Dr. Clarence E. Franklin would allegedly sign off on the bogus medical reports indicating he had performed numerous types of examinations, treatments, and consultations when in fact he never rendered these services. These reports were then submitted to the patients’ attorneys for the purpose of filing a false insurance claim. The medical billings were used as a tool to increase the potential settlement amount paid by victim insurance companies. “This was an elaborate insider operation,” said Commissioner Garamendi. “But today’s arrests will help us put an end to these types of staged hazardous collisions, which endanger the lives of innocent people.” Many of the collision cases connected to Alfonso Zanoletti resemble the profile of the Swoop and Squat and Sudden Stop-types of staged collisions which target innocent motorists, usually in light duty commercial vehicles on the L.A. and Orange County freeways and surface streets. In “Operation Freeway Squat,” the stagers of these collisions would allegedly target a victim, maneuver a squat vehicle in front of the victim, and use another vehicle to swoop or “cut-off” the squat vehicle giving the appearance of a legitimate reason to slam on the brakes. The unsuspecting victim is then unable to stop in time before crashing into the back of the squat vehicle. The stagers would also use block vehicles in the lanes adjacent to the victim in order to prevent the victim from swerving or changing lanes to avoid the collision. In addition to commercial vehicles, these stagers are also known to target expensive vehicles, SUVs and elderly drivers. It is estimated that these stagers orchestrated more than 125 auto collisions. Although none of the victims was seriously injured, this type of crime can potentially cause financial, physiological and emotional consequences. www.insurance.ca.gov Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. LIMRA, LOMA, NACII and SOA Unite to Create Innovative, Interactive Critical Illness Insurance Conference PHOENIX, June 21 /PRNewswire/ -- For the first time, four organizations -- LIMRA International, LOMA, the National Association for Critical Illness Insurance, and the Society of Actuaries -- have come together to create a dynamic, broad-reaching event, Critical Illness: Evolving Product, Evolving Market, Sept. 25-27 in Phoenix. This unique, highly-interactive conference will provide a wide array of informative sessions such as strategies for introducing or not introducing critical illness products; lively breakouts in which attendees will get to discuss and debate their companies' perspectives on hot strategic and practical issues; an examination of priority issues by market and discipline bringing together actuarial, underwriting and claims and sales and marketing viewpoints; the reinsurer's perspective; and question and answer time with companies already familiar with the successes and challenges of critical illness products. The United States market is beginning to appreciate that the power of critical illness insurance (CII) extends beyond countries with single payer systems. By and large, current U.S. employer-based health care coverage does not alleviate the financial burden of a critical illness. In fact, the financial strain of both medical and non-medical expenses not covered by medical insurance can be crushing. CII bridges the gap in coverage and can even enable ordinary citizens who need it access to the finest medical intervention in the world. For CII to gain widespread acceptance in the U.S., both consumers and producers must recognize its value. This critical illness insurance conference provides an essential understanding of all the central issues: plan designs, pricing and underwriting considerations, regulatory requirements, claims experience, global trends, selling secrets, market issues and risk management methods. General sessions will powerfully make the case for CII. Concurrent sessions let marketing, actuarial, underwriting, management and operations professionals explore aspects of the product that are most relevant to their interests. To learn more about this important conference, visit http://www.loma.org/CriticalIllness.asp . Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Walker Financial Corporation CEO/President Announces Strategic Initiatives For the Remainder of 2006 - Walker Closes $ 750,000 of Institutional Investor Funding GARDEN CITY, N.Y.,June 14, 2006 -- Walker Financial Corporation (OTC BB:WLKF.OB - News), a marketer of insurance, financial products and other products and services which benefit the baby boomer, senior and minority population segments announced that it’s CEO and President, Mitchell Segal has set forth the Company’s strategic initiatives for the remainder of the 2006 year. “As CEO and President of Walker Financial Corporation, it is my pleasure to announce that Walker has achieved certain milestones that it sought to achieve within the year which will now enable the Company to move forward with various marketing campaigns for a variety of products. 1. Financing: First and foremost the Company has received the financing sought from an institutional investor in the amount of $ 750,000. The Company can access additional capital over the next three years. This will provide the funds necessary to clean up the Company’s balance sheet, build the Company’s sales and marketing force, increase its infrastructure, and provide the capital needed to finance potential acquisitions. 2. Recruitment: We have commenced the recruitment of agencies and agents to become part of our organization allowing them to achieve higher commission structures, qualified leads, licensing and marketing support. We are initially focusing on the recruitment of agencies and agents within New York State and will add other states in the latter part of 2006. 3. Products: We have become licensed nationally to sell a mortgage protection product which pays off a families mortgage in the event that something should happen to the primary wage earner in the family, protecting one of a family’s greatest assets. We will begin to commence direct marketing to families whom have just purchased a home or recently financed their mortgage. 4. Health Insurance: We have decided to make health insurance a new product in 2006 and will commence the hiring of agents in order to build an internal sales and marketing force. 5. Internet: We will be developing a stronger web presence with various internet sites to be launched in the coming months. 6. Acquisitions: We will be looking for strategic acquisitions within our industry to increase shareholder value. 7. Investor Relations: We will be seeking to increase investor interest in the company activities by hiring various investor relation firms in order to enhance our shareholder base. . Now that the Company has secured a long term commitment for capital combined with the introduction of new products should lead to an exciting time period for Walker Financial. Walker Financial Corporation is focusing its efforts on the marketing of financial products and services and non-financial products and services that benefit the baby boomer, senior and minority populations. Through its subsidiary National Preplanning, Inc., it is engaged in the sale of final expense insurance. Through its licensed subsidiary NPI Agency, Inc., Walker earns insurance commissions on the sale of various insurance products. Through its subsidiary American DataSource (``ADS''), the Company is engaged in the business of providing a complete line of administrative services for trust accounts. Walker Financial is currently looking to expand its product offerings by adding various financial products and other services, which may occur through acquisition opportunities, although there can be no assurance that this will occur. Contact: Walker Financial Corporation, Mitchell Segal, 516-832-7000, msegal@walkerfinancialcorp.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. THE COUNCIL SUPPORTS PASSAGE OF SURPLUS LINES REFORM LEGISLATION TO ELIMINATE WIDELY VARYING STATE REGULATIONS WASHINGTON – The Council of Insurance Agents & Brokers said today that legislation to reform the surplus lines market and bring consistency and predictability to the commercial insurance marketplace could be adopted without sacrificing “one iota of consumer protection.” Scott A. Sinder, general counsel for The Council of Insurance Agents & Brokers, testified before the House Financial Services Committee’s Subcommittee on Capital Markets, calling adoption of the legislation “a victory for common sense.” “Commercial insurance regulatory modernization is essential if we are to have a dynamic commercial insurance marketplace that addresses the needs of commercial insureds for the 21st century,” Sinder told the panel. “The Council believes the proposed legislation constitutes a significant step toward that end and supports it wholeheartedly.” “The proposed reform act would fix the system,” Sinder said. “The legislation would streamline regulation and ease regulatory burdens, but without sacrificing consumer protections or a financially sound surplus lines marketplace, which is the most important consumer protection of all.” The Council represents the leading domestic and international commercial insurance agents and brokers who annually place more than 80 percent of commercial property/casualty premiums in the United States and administer billions of dollars of employee benefits accounts. The legislation reforming the surplus lines market was introduced earlier this week by Reps. Ginny Brown-Waite, R-FL, and Dennis Moore, D-KS, and a bipartisan group of co-sponsors including Rep. Richard Baker, R-LA, chairman of the subcommittee. Surplus lines insurance is insurance for unique, unusual or very large risks for which coverage is unavailable in the admitted market in a given state. Although surplus lines is considered an “unregulated” market, Sinder told the subcommittee that in fact, the coverage marketplace is subject to extensive regulation that varies widely from jurisdiction to jurisdiction. “Although the purchase of surplus lines insurance is perfectly legal in all states, the regulatory structure governing such coverage is a morass,” Sinder said. If only a single state is involved, regulatory issues are minimal. But when activity involves multiple states, “full regulatory compliance is difficult, if not impossible,” he said, and “multi-state surplus lines policies are the norm rather than the exception because surplus lines coverage is uniquely able to address the needs of insureds seeking coverage in more than one state.” The difficulty of complying with rules and regulations of at least 55 different jurisdictions is clear if one looks at just a single facet of the regulatory requirements- the payment of premium taxes. Sinder said currently, states have such inconsistent and conflicting approaches regarding the allocation of premium taxes that it can result in double taxation and confusion. For example, some states require 100 percent of the premium tax to be paid to the insured’s state of domicile or headquarters state. Other states require premium taxes to be allocated to multiple states where a company has branches. Because there is no coordination among the states on allocation and apportionment, the determination of how much tax is owed to each state is left to the insurance brokers and the insureds. “If a policy covers property insured in a single situs state and in an apportionment state, double taxation also is unavoidable,” said Sinder. Also, he said, the due dates for premium taxes vary widely across the states, with some requiring payments annually, some semi-annually, some quarterly, some monthly and some 60 days after the transaction. Even states that have the same timetable for payment may have differing due dates, and they also differ with respect to what is subject to tax and what is exempt. Other areas where the varying state regulations pose problems include declinations, meaning what attempts are required to place the coverage with an admitted insurer in a given state before that risk can move to the surplus lines market; insurer eligibility; filings with state regulators involving surplus lines placements; and several producer licensing issues. The proposed legislation would deal with the problems by focusing on the home state of the insured, providing that all premium taxes would be payable to the insured’s home state and that surplus lines insurance transactions would be governed by the rules of that state. “The beauty of the proposal is that it enables surplus lines producers to look to a single standard in a single state for each transaction,” Sinder said. “Although the standard may differ from transaction to transaction depending on the home state of the insured, each individual transaction will have a single standard rather than being subject to the standards of 55 different jurisdictions. Clearly, this will make multi-state compliance significantly less daunting.” “Home state regulation is logical because the risks covered in the non-admitted market are generally commercial lines and are not compulsory,” Sinder said. “We are not talking about auto or homeowners or individual life coverage” but rather a sophisticated commercial market. “The exemption for sophisticated commercial policyholders is a victory for common sense,” Sinder said. www.ciab.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7.
BIG “I”
THANKS HOUSE FOR PASSING ESTATE-TAX BILL H.R. 5638, introduced by Ways and Means Committee Chairman Bill Thomas (R-Calif.), would exempt from tax estates worth up to $5 million, make it easier to pass on the full exemption to a spouse, index the $5 million exemption to inflation, and tax assets beyond the exempted amount, up to $25 million, at the 15-percent capital-gains tax rate. Under existing law, the current estate tax relief will expire on Dec. 31, 2010. Without further legislation, some estate taxes would revert to rates ranging from 20 to 40 percent. The Thomas bill is geared toward gaining the support of 60 members of the Senate, the number required to invoke cloture and avert a potential filibuster. Despite bipartisan, majority support in the Senate, previous estate-tax legislation has failed to pass this procedural threshold. “We appreciate the diligent work of Chairman Thomas and his colleagues in the House to pass permanent estate tax reform,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs and federal relations. “This bill is a good common-ground solution, and we will be working very hard to convince the Senate to move forward. This legislation is very important to our members and small businesspeople across America.” The Big “I” supports the elimination, or at least the significant reduction, of estate taxes to encourage investment and growth in small businesses. This is crucial to the 300,000 Big “I” members across America, many of whom own their own agencies and whose families face significant tax burdens when these businesses are passed along to their heirs. The prospect of heavy estate taxes also diminishes the value of small businesses if they are sold. “The House bill passed today is a great step forward,” says Brendan Reilly, Big “I” assistant vice president for federal government affairs. “Estate-tax reform will help small businesspeople pass their companies on without burdening their loved ones, and also realize the full sale value of their businesses, and that is why we support it strongly. We ask Senators from both parties to join the House in supporting small business by passing this needed legislation.” Founded in 1896, the Big “I” is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of more than 300,000 agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life, health, employee benefit plans and retirement products. Web address: www.independentagent.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. NAIC PRESIDENT CALLS SVO POLICIES “CONSISTENT WITH RESPONSIBLE REGULATION” KANSAS CITY, MO (June 22, 2006) – As the National Association of Insurance Commissioners (NAIC) plans a special joint meeting to discuss the appropriate regulatory treatment for recently issued debt-equity hybrid securities, the Association’s president is standing by the policies of the Securities Valuation Office (SVO). “In the case of hybrid securities, we believe preserving the processes of the SVO is consistent with responsible regulation,” said NAIC President and Maine Superintendent of Insurance Alessandro Iuppa. “As the financial markets continue to innovate, state insurance regulators view the SVO as serving a very important role in our regulatory processes covering financial solvency.” During this month’s NAIC Summer National Meeting in Washington, D.C., the Financial Condition (E) Committee determined the SVO should continue its process for classifying hybrid securities, while regulators evaluate the need to modify the current classification structure utilized in statutory reporting. In a response to criticism by some in the insurance industry, President Iuppa defended the SVO’s functions that are set by guidelines established by regulators, whose primary role is to protect consumers. “The SVO responds directly to specific requests for assistance from state insurance regulators,” said Iuppa. “While some have called for the SVO to cease its classification function, an equal, if not greater number of capital market participants asked the NAIC not to suspend the SVO’s function.” The NAIC will post information about the joint meeting on its Web site, www.naic.org, as soon as details are confirmed. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Validus Reinsurance, Ltd. Raises $150 Million from Issuance of Hybrid Junior Subordinated Deferrable Interest Debentures Hamilton, Bermuda. June 22, 2006. Validus Holdings, Ltd., announced today that it has raised $150 million through a private sale of Junior Subordinated Deferrable Interest Debentures (the “Deferrable Interest Debentures”) as part of a pooled transaction. The Deferrable Interest Debentures have a fixed rate of interest equal to 9.069% per annum through June 15, 2011, and thereafter a floating interest rate of 3-month LIBOR plus 355 basis points, reset quarterly. The Deferrable Interest Debentures mature on June 15, 2036, and may be called at par by the Company at any time after June 15, 2011. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. BYN Services Announces file-BYN: Digital Storage for Consumers and Businesses Flanders NJ June 15, 2006: BYN Services is proud to announce the production release of its new file-BYN service for consumers and businesses (www.file-byn.com). file-BYN will provide secure, electronic storage of all file types: personal legal and financial records, photos, videos etc. Adding files to an account can be done in three ways: via upload, via fax, or to a secure FTP site. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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11. 20 June 2006 - European Reinsurers make a solid start to the year European reinsurers made a profitable start to the year reflecting a quiet first quarter of 2006, according to the latest Benfield European Quarterly report. Europe’s leading reinsurers, notes the 22-page report, presented themselves as well reserved and practising disciplined underwriting. For the first time since 1Q 2004, Europe’s reinsurers reported underwriting profits. Moreover, none of the companies studied saw any adverse development on 2005 hurricane losses. While investment income declined modestly, diluting some of the better underwriting results, profits for the European reinsurers nevertheless rose strongly, driving up the group’s capital base. European reinsures have made sound progress but the outturn could still be influenced by catastrophes. Lewis Phillips from Benfield’s Industry Analysis and Research team cautioned that “some have forecast another above average year for North Atlantic hurricane activity and the European reinsurers remain exposed to other weather related events closer to home throughout the year such as flooding which has been a feature of recent summers.” Benfield, the world’s leading independent reinsurance and risk intermediary, compiles and shares information on Europe’s four major reinsurance groups on a quarterly basis.* A full copy of the report can be viewed online at www.benfieldgroup.com/research. Printed copies can be obtained by contacting IAR@benfieldgroup.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. BIG “I” TESTIFIES IN SUPPORT OF NEW REGULATORY BILL WASHINGTON, D.C., June 21, 2006—The Independent Insurance Agents & Brokers of America (the Big “I”) testified today before the House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises in support of H.R. 5637, the Nonadmitted and Reinsurance Reform Act. Thomas Minkler, president of Keene, N.H.-based Clark-Mortenson Agency, chairman of the Big “I” national Government Affairs Committee and an independent agent, testified in support of the bipartisan legislation introduced this week by Rep. Ginny Brown-Waite (R-Fla.) and Rep. Dennis Moore (D-Kan.). “We believe that overall the bill is the right approach, and we are happy to support it,” Minkler testified. The legislation would create a uniform system of premium tax allocation and collection for surplus lines; provide for regulatory deference to the policyholder’s home state for the nonadmitted market; adopt the National Association of Insurance Commissioners (NAIC) nonadmitted insurance model act on a national basis; create streamlined access to the non-admitted/surplus market for sophisticated commercial purchasers; and rely on the home state for reinsurance solvency oversight while prohibiting extra-territorial application of state law. www.independentagent.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Fiserv Billing and Claims Administration Systems Selected by Grinnell Mutual Reinsurance Chicago, June 21, 2006 – Fiserv Insurance Solutions, a unit of Fiserv, Inc. (Nasdaq: FISV), today announced that Grinnell Mutual Reinsurance Co. of Grinnell, Iowa, has licensed Fiserv Advanced Billing and Claims Workstation, two best-of-breed Web-based systems that will operate in an integrated environment. www.gmrc.com www.fiservinsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. CALIFORNIA’S MANDATORY INVESTMENT REPORTING LEGISLATION IS UNNECESSARY, SAYS AIA SACRAMENTO, CA, June 21, 2006– Legislation, sponsored by California Insurance Commissioner John Garamendi (D), is unnecessary, will increase costs and will further complicate data collection, says the American Insurance Association (AIA). AB 925, authored by Assemblyman Mark Ridley-Thomas (D), requires insurers to report California community-related investments to the insurance commissioner every two years. “California insurers are the largest purchaser of municipal bonds in the state,” said Steve Suchil, AIA, assistant vice president, Western Region. “Insurers have demonstrated their significant commitment to California communities by investing more than $23 billion in state and local bonds, which includes funding for schools, as well as low-income housing and redevelopment. Insurers also are major contributors to California’s General Fund, paying $2.3 billion in premium taxes in 2005-06. In 2005, Commissioner Garamendi himself praised insurers for investing more than $7 billion in emerging and underserved communities.” “The Insurance Commissioner already has the authority to request this information from insurers at any time,” said Suchil. “Nothing in state law prevents him from asking for this information and posting it on the Department of Insurance website.” “AB 925 does not benefit anyone, but it will require insurers to change their data and information collection processes in order to comply,” said Suchil. “This legislation is not necessary and we urge legislators to reject the measure.” AB 925 will be heard in the Senate Banking, Finance and Insurance Committee today at 1:00 p.m. www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. AFS Licenses Myriad's Risk Manager System AUSTIN, Texas, June 22 /PRNewswire/ -- Myriad Development, Inc. is pleased to announce that Advanced Field Services (AFS), a leading national provider of professional information reporting solutions to the P&C insurance industry, has chosen to license Myriad's Risk Manager inspection system to automate the receipt, processing and delivery of property inspection reports for their national field service inspection program. www.myriad-development.com www.afsweb.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Credit is Vital to Your Auto Insurance Rate CLEVELAND, June 22 /PRNewswire/ -- Consumers with good credit can expect to pay an average of $200 less for their auto insurance premium each year, reported Insurance.com today (http://www.insurance.com). The company released the results of a study that showed a correlation between auto insurance premiums and credit score, indicating that consumers with higher credit scores paid less for their auto insurance each year. For the study, Insurance.com looked at quotes and sales on its comparative auto insurance quoting platform over an 18 month period. The data clearly showed that consumers with credit scores above 650 saved an average of $200 for their auto insurance premium compared to consumers with credit scores lower than 650. The study reflects the pricing activity of carriers that participate in the Insurance.com marketplace, the states where Insurance.com quotes and the aggregate profile of consumers who shop with Insurance.com. "Many auto insurance companies use your credit score as a factor in calculating premiums," advised Dave Roush, CEO of Insurance.com. "They have good reasons for doing so, as in their experience, higher credit usually equates to a better insurance risk." As this study shows, managing your personal credit is critical, as it is an important factor in determining your auto insurance rates. Variables such as vehicle type, geographical location, driving history, occupation and other factors also play an important role in auto insurance pricing. "Insurance companies use these factors to determine the price for your auto insurance in different ways," noted Roush, "To make sure you're getting the best coverage at the best price, you have to compare rates before you buy, and find the company that's best for you. Comparing rates saves our customers an average of over $400 on their auto insurance premiums each year. That's significant savings. The Fair Credit Reporting Act (FCRA) requires the three reporting companies - Equifax, Experian, and TransUnion - to provide consumers with a free copy of their credit report once a year. Consumers who wish to monitor their credit rating on a more regular basis may pay to access the credit reports at any time. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. ACE Adds Affordable Environmental Liability Cover to Liability and Package Business for UK Companies LONDON--(BUSINESS WIRE)--June 22, 2006--ACE European Group (ACE) (NYSE:ACE) has today announced that it is offering an extensive and affordable environmental liability cover specifically for smaller and mid-sized private and corporate businesses, as part of its existing liability and commercial package insurance programmes. The new ACE Package Pollution Liability is designed to make it easier and less costly for these companies to manage their environmental related risk and liabilities. ACE provides limits up to GBP 5million for a broad range of protection including both first and third party coverages. ACE Package Pollution Liability will be available as an endorsement to existing UK liability covers and as a new section in commercial package policies from ACE. www.aceeuropeangroup.com www.acelimited.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Finance: Shop smart for long-term care insurance Wed Jun 21, 2006 1:37pm - WASHINGTON (Reuters) - Long-term care insurance isn't new anymore. Insurance companies are getting smarter about how to write their plans, and financial advisers are getting more savvy about how to choose them. But for consumers, it's the same old mind-bending, head-scratching confusion. "Consumers face a bewildering array of LTCI policy choices," reports Bonnie Burns, of the advocacy group California Health Advocates in a paper for the AARP Public Policy Institute. "(They) will find very little independent and objective help or guidance to assist them." Individual insurance companies offer plans of their own design, with unique riders and dozens of variables, making comparisons almost impossible. And consumers who are priced out of the most full featured products can't figure out which features to focus on and where to economize. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Lexington Insurance Company Increases Domestic Property Capacity to $250 Million NEW YORK--(BUSINESS WIRE)--June 22, 2006--Lexington Insurance Company, a member company of American International Group, Inc. (AIG), today announced the company has increased its capacity of commercial domestic property insurance to $250 million from $100 million. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
View INSURANCE NEWSCAST "Sports Pictures Of The Day" View INSURANCE NEWSCAST "Entertainment Pictures Of The Day" Sponsored By:
21. Jackson National Life(R) Strengthens Corporate Giving Program; Jackson National Community Fund to Give $2 Million Over the Next Three Years LANSING, Mich.--(BUSINESS WIRE)--June 22, 2006--Jackson National Life Insurance Company(R) (Jackson) today announced that it will dedicate a portion of its annual pretax profits to support community investment efforts in those locations where the company maintains a strong business presence. Through the newly formed Jackson National Community Fund (JNCF), Jackson and its employees will donate a minimum of $2 million in corporate donations and sponsorships over the next three years to community enrichment programs, institutions of higher learning and charitable organizations - with a focus on organizations, programs and events dedicated to enhancing the lives of children and the elderly. www.jnl.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. 2006 NAREIT Insurance Survey Details Changes Washington, D.C.—Insurance premium costs for real estate investment trusts have not significantly increased from their levels of three years ago, according to the recently published 2006 NAREIT Insurance Survey. The 2006 Insurance Survey provides information about the types of insurance carried by real estate investment trusts (REITs), as well as specific details regarding premiums, limits, deductibles, etc. of various policies. The types of insurance covered in this study include: Directors & Officers (D&O), Employment Practices Liability, General Property, Environmental, Commercial General Liability (CGL), Excess Liability and Workers Compensation. Among the notable findings in the study:
REITs: Building Dividends and Diversification® 1875 I Street, NW, Suite 600, Washington, D.C. 20006-5413, Phone 202-739-9400 Fax 202-739-9401 www.nareit.com www.investinreits.com eturn to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Spanish-Language Now Standard Offering for CIGNA Group Insurance Benefit Materials PHILADELPHIA, June 19, 2006 /PRNewswire-FirstCall/ -- Habla Espanol? More and more, that's the question employers need to consider when thinking about their employee benefits communications. With the Hispanic population growing among the fastest in the United States according to recent Census data, Spanish-language benefit materials are vital for effective employee understanding and program participation. Recognizing this trend, CIGNA Group Insurance recently enhanced its Group Life, Accident and Disability marketing program to include a wide variety of Spanish-language materials as part of its standard offering. Included in the suite of tools now available in Spanish are employee benefit information materials, insurance applications, enrollment and beneficiary designation forms, and more. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Avalon Healthcare Advises, Beware When Buying Individual Health Insurance; Consumers Need to Shop Around and Examine Carriers and Benefit Plans TAMPA, Fla.--(BUSINESS WIRE)--June 20, 2006--Florida based health plan, Avalon Healthcare, advises that with rapid growth of consumer directed health care, consumers purchasing individual health plans need to be careful when selecting an insurance carrier. Catherine Price, Avalon's Consumer Products Manager warns that, "Like buying a house or car, buying health insurance is a big financial decision, probably the second or third largest monthly expense a consumer has. Being selective when buying health insurance is critical so do your homework." www.avalonhealthcare.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. INSURANCE NEWSCAST "White Papers" Consumer-Driven Health Plans: Small but Growing Enrollment Fueled by Rising Cost of Health Care Coverage. GAO-06-514, April 28. http://www.gao.gov/cgi-bin/getrpt?GAO-06-514 -- Highlights - http://www.gao.gov/highlights/d06514high.pdf Social Security Administration: Additional Actions Needed to Prevent Improper Benefit Payments under Social Security Protection Act. GAO-06-196, April 28. http://www.gao.gov/cgi-bin/getrpt?GAO-06-196 -- Highlights - http://www.gao.gov/highlights/d06196high.pdf Veterans' Disability Benefits: VA Should Improve Its Management of Individual Unemployability Benefits by Strengthening Criteria, Guidance, and Procedures. GAO-06-309, May 30. http://www.gao.gov/cgi-bin/getrpt?GAO-06-309 -- Highlights - http://www.gao.gov/highlights/d06309high.pdf Capital Gains Tax Gap: Requiring Brokers to Report Securities Cost Basis Would Improve Compliance if Related Challenges Are Addressed. GAO-06-603, June 13.http://www.gao.gov/cgi-bin/getrpt?GAO-06-603 -- Highlights - http://www.gao.gov/highlights/d06603high.pdf Tax Compliance: Challenges to Corporate Tax Enforcement and Options to Improve Securities Basis Reporting, by David M. Walker, comptroller general of the United States, before the Senate Committee on Finance. GAO-06-851T, June 13. http://www.gao.gov/cgi-bin/getrpt?GAO-06-851T -- Highlights - http://www.gao.gov/highlights/d06851thigh.pdf Hurricanes Katrina and Rita Disaster Relief: Improper and Potentially Fraudulent Individual Assistance Payments Estimated to Be Between $600 Million and $1.4 Billion. GAO-06-844T, June 14 http://www.gao.gov/cgi-bin/getrpt?GAO-06-844T -- Highlights - http://www.gao.gov/highlights/d06844thigh.pdf
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