Daily Quote: “They can conquer who believe they can." -- Dryden
1. Buffett, Gates unite on $60 billion foundation
Berkshire Hathaway Chief Executive Warren Buffett (L) is seen with Microsoft Chairman and Chief Software Architect Bill Gates during a news conference at the Seventh Annual Microsoft CEO Summit in Redmond, Washington in this May 21, 2003 file photo. Buffett on Monday signed over much of his $44 billion fortune to the Bill & Melinda Gates Foundation, uniting the world's two richest people in a bid to fight disease, reduce poverty and improve education. REUTERS/Anthony P. Bolante Mon Jun 26, 2006 1:33pm ET - By Jonathan Stempel - NEW YORK (Reuters) - Warren Buffett on Monday signed over much of his $44 billion fortune to the Bill & Melinda Gates Foundation, uniting the world's two richest people in a bid to fight disease, reduce poverty and improve education. The roughly $30.7 billion donation doubles the Gates Foundation's size to $60 billion, five times larger than any other U.S. charitable group and larger than the gross domestic product of Kuwait. Bill Gates, the world's richest man, co-founded and remains chairman of giant software company Microsoft Corp.. His friend Buffett, 75 and the world's second-richest man, built his fortune running Berkshire Hathaway Inc., an insurance and investment company. "I am not an enthusiast for dynastic wealth, particularly when the alternative is 6 billion people having much poorer hands in life than we have," Buffett said at a signing ceremony with the Gateses at the New York Public Library's main branch. Gates, 50, this month said he plans in July 2008 to step down from his day-to-day Microsoft role to focus on his foundation, one of the goals of which is to improve access to technology in U.S. public libraries. Buffett pledged 10 million Berkshire Class B shares to the Gates Foundation. He also pledged 2.05 million Class B shares to foundations in the name of his late wife, Susan, who died in 2004, and for his three children, Susie, Howard and Peter. The total donations of about $37.1 billion amount to roughly 85 percent of Buffett's net worth, and constitute the largest single act of U.S. charitable giving ever. Buffett made the donations fewer than four months after he said Berkshire's board had identified a successor for him. Gifts to the Gates Foundation will be made in stages, and are conditioned on money being distributed the year it is donated. The foundation gave away $1.36 billion in 2005, so Buffett's first gift of $1.5 billion, in July, may double its spending. "This is his life's work," Gates said at the ceremony. "Now that the money is going to be as much Warren's as the money my job helped generate, it's almost scary." He prompted laughter when he added: "If I make a mistake with my money, it doesn't feel the same." Time magazine last year named the Gateses and Irish singer Bono of the band U2 its "Persons of the Year" for 2005, citing their charitable and philanthropic pursuits. "I've watched Bill and Melinda Gates for a number of years," Buffett said. "It was clear that an outstanding mind with the right goals was focusing intensely with passion (and) heart on improving the lot of mankind." HIGHER VALUE? Both Buffett and Gates emphasized the importance of keeping philanthropy separate from Berkshire's day-to-day operations. Buffett's donations of Berkshire shares means the ultimate value of his gifts will be tied to the company's share price. "I would be surprised, disappointed, if we can't manage Berkshire well enough so the increase on value, on average, (isn't) more than 5 percent a year." Buffett said. Berkshire owns large stakes in such blue-chip companies as American Express Co. and Coca-Cola Co. and owns some 50 businesses, including Dairy Queen ice cream, Fruit of the Loom underwear and Geico auto insurance. Berkshire shares have lagged the Standard & Poor 500 index over the last two years, but have far outgained the benchmark since Buffett took over Berkshire, then a struggling textile maker, in 1965. The shares fell as much as 2.9 percent on Monday as investors looked toward Buffett's eventual retirement, and the possible sale by the foundations of Berkshire stock to help fund giving. "Those who are selling haven't thought this through," said Thomas Russo, a principal at Gardner, Russo & Gardner, which owns Berkshire stock. "Warren will no longer have to distract himself with charitable donations, and can focus on the company." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Developer Silverstein sues over WTC insurance cash
This artist rendering shows an aerial view from East River of the updated design for the 'Freedom Tower' for the World Trade Center Site in New York which was unveiled on June 29, 2005. In the latest twist in an acrimonious battle over rebuilding the World Trade Center, developer Larry Silverstein on Monday sued insurers to demand they pay for the buildings destroyed in the September 11 attacks. FOR EDITORIAL USE ONLY REUTERS/Courtesy of Skidmore, Owings & Merrill LLP NEW YORK, June 26 (Reuters) - World Trade Center developer Larry Silverstein and the Port Authority of New York and New Jersey on Monday sued insurers to demand that they pay up on the buildings destroyed in the Sept. 11 attacks. Some insurers have suggested they might not make future payments owed for redevelopment because the original plan has been changed. Silverstein and the Port Authority, which owns the 16-acre site, say the money is essential to rebuilding. The lawsuit, filed in the Supreme Court of the State of New York, demands that the insurers honor their payments even though an initial rebuilding plan was replaced by a new one agreed to in April. The insurance companies named in the suit include St. Paul Travelers (STA.N:), Zurich American Insurance Co. (ZURN.VX:) and Allianz AG (ALVG.DE:). Silverstein leased the World Trade Center shortly before the attacks and has the right to rebuild the complex. The developer and the insurers still have not resolved other lawsuits over how much the companies owe. "The financing of the redevelopment plan ... depends in large part from the property/rental value insurance," the latest lawsuit says. "The defendants, however, have persistently sought to shirk their contractual obligations to pay insurance coverage." Silverstein and the Port Authority said in the suit that they are seeking to establish that the reworked plan to develop the site "cannot provide an excuse for any defendant to avoid its obligations." The lawsuit in the latest twist in almost five-years of wranglings between Silverstein and the insurance companies since the twin towers were destroyed in the Sept. 11 attacks. Clashes over designs and security have repeatedly stalled rebuilding and many of the latest fights have also revolved around the financing. Republican Mayor Michael Bloomberg has said a few insurers believed Silverstein's new pact violated their insurance covenants because he will no longer own the Freedom Tower. Instead, the Port Authority now will own the 1,776-foot (540-metre) Freedom Tower, meant to symbolize the post-Sept. 11 revival, although Silverstein will still build it. © Reuters 2006. All Rights Reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. CUSTOM BENEFIT PROGRAMS (CBP) CHANGES ITS NAME TO UNIVERS WORKPLACE BENEFITS HAMMONTON, NJ – The nation’s largest benefit communications and enrollment provider, Custom Benefits Programs, Inc. (CBP), today announced it is changing its name to Univers Workplace Benefits. In the past 24 months, CBP has expanded its geographic footprint and capabilities through the integration of several highly respected workplace communications and enrollment companies, according to Univers Chief Executive Officer Greg Morano. “This is a great time to unify all of our partners under one brand and bring much needed clarity to our marketplace” said Morano. “Even for small emerging companies, successfully communicating benefits and executing a successful enrollment requires a variety of capabilities. Our new name best represents what we provide: a wide variety of solutions from one reliable source.” Along with the name change, the company is adopting the tagline: “The Difference is U.” “This positioning message accurately expresses the difference of competency and experience we deliver; it reflects the vital role of our client in the planning and execution process; and it recognizes the importance of the employee we are communicating with” said Morano. Univers Workplace Benefits is the leading provider of benefit communications and enrollment solutions to employer groups ranging in size from 50 employees to over 100,000. Focused on elevating benefit knowledge and the enrollment experience of the nation’s workforce, Univers conducts business in all 50 states and Puerto Rico. The company’s business unit that specializes in unions and associations will continue to operate under its current name, Future Planning Associates. The company’s new Web address is www.universworkplace.com The nation’s leading benefit communications and enrollment solutions provider, Univers Workplace Benefits is dedicated to enhancing the benefit knowledge and enrollment experience of the nation’s workforce. Headquartered in Hammonton, New Jersey, Univers has offices in Orlando (FL), Atlanta (GA), Nashville (TN), Denver (CO), Phoenix (AZ), New York City (NY), Columbus (OH) and Cincinnati (OH). Univers is a wholly owned subsidiary of USI Holdings Corporation, Inc. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Benefits See Little Change from 2005 2006 Benefit Survey Shows Cost of Healthcare Remains Key Concern for Organizations (Alexandria, Va., June 26, 2006)—In 2006, employers maintained or increased benefits such as well-baby programs and chiropractic insurance, according to results from the Society for Human Resource Management's (SHRM) 2006 Benefits Survey released today. Human Resource (HR) professionals surveyed indicated the main healthcare concern for their organization was cost of health benefits. The survey identified ways in which healthcare plan design has changed. The respondents indicated the top four changes were: increased co-pays and/or co-insurance costs (66 percent); increased participant cost (59 percent); increased deductibles (56 percent); and increased amount plan participants pay for prescription drugs (55 percent). However, despite increasing costs, it does not appear as though many organizations will eliminate healthcare, in fact only four percent of the respondents said their organization considered eliminating healthcare coverage. Most benefits remained the same in 2006 from 2005 while others had minor fluctuations. The following is a brief overview:
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Fitch Exposure Draft: Equity Credit For Hybrids & Other Capital Securities Fitch Ratings is providing to the market for comment an enhanced, streamlined and updated methodology with respect to equity credit for hybrid securities across all corporate and financial sectors. The agency believes the new methodology offers improved transparency and consistency with a set of global principles that will meet the needs of all capital markets participants. The equity credit for outstanding instruments will be reassessed pursuant to the new standards. This may result in revisions to the equity credit previously assigned. Feedback on this exposure draft is sought from all interested parties, including investors, issuers, investment bankers including those who design and structure hybrids, and regulatory bodies. Written feedback is sought by no later than 1 August 2006, preferably by e-mail to: hybrids@fitchratings.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. Great-West to buy Metropolitan retirement plans TORONTO, June 26 (Reuters) - Great-West Lifeco Inc. (GWO.TO:) said on Monday it will buy 401K and and other defined benefit plan businesses from Metropolitan Life Insurance Co. The company, which said the transaction will be accretive to earnings starting in 2007, will gain 300,000 participants and $7.5 billion in retirement plan assets as part of the deal. ($1=$1.12 Canadian) © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. INSURANCE NEWSLINK Articles Recent articles added to INSURANCE NEWSLINK, the worldwide, strategic concise intelligence database of over 27,000 articles including interviews, uniquely analysed by company, market, research, regulatory, and IT topics. Please click here for a content overview and a 15-day free review. THE TIME EFFECTIVE WAY TO STAY AHEAD
8. CONSUMER REPORTS WARNS DRIVERS ABOUT THE SECRET SCORE BEHIND AUTO INSURANCE RATES Yonkers, NY — Everyone knows that if you hit another car, your auto insurer will probably raise your premiums. But Consumer Reports warns that even drivers who have spotless driving records and have never had an at-fault accident may be faced with higher premiums if they run into a new breed of credit score used by insurers. Known as credit-based insurance scores, these numbers are computed from bill-paying and loan data collected by the major credit bureaus. They have become as important in determining annual premiums as driving records and neighborhoods. Consumer Reports’ investigation found that scores and their uses vary among insurers and that credit-based insurance scoring could cost many drivers hundreds of extra dollars. Credit scores used by insurance companies weigh credit data differently from traditional lender scores. As a result, insurance scores can penalize even those consumers who use credit reasonably. No standards; Little disclosure Few insurers routinely disclose scores or what role they play in setting premiums. Consumer Reports sought and obtained scoring models filed with regulators in Florida, Michigan, and Texas used by 9 of the 10 largest U.S. auto insurers. CR found that there are no standards. Each company uses different models and weighs different credit-report information. Some big companies find scoring useful only for new customers, not renewals, while others may use it for both. Moreover, CR notes that the credit data from which the scores are derived have a reputation for being inaccurate and out of date. Despite such problems, most states allow insurance scoring, and efforts to limit or ban it have been met with aggressive lobbying by insurers. Advocates from Consumers Union, the publisher of Consumer Reports, have been urging legislators and regulators in several states to ban the use of credit scoring to underwrite homeowners and auto insurances policies. Those efforts have met with opposition from insurers. This year, insurance industry lobbyists helped to squelch legislation to end credit scoring in Colorado, Delaware, and Minnesota. More information about Consumers Union’s advocacy position on the issue is available at www.ConsumersUnion.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Asset Allocation Tools Are Lacking at Many Mutual Fund Firms Says New Report from Corporate Insight New York, NY – June 26, 2006 – Despite the fact that asset allocation is one of the core concepts of successful portfolio management, many mutual fund firms do not provide tools to help investors with this important undertaking. In a new report, Corporate Insight takes an in-depth look at asset allocation tools provided by eighteen mutual fund firms. “We were surprised to find that only nine of the eighteen mutual fund firms we track provide asset allocation tools to their investors and advisors, and of those nine, only four firms put all the pieces together to provide valuable resources for both clients and prospective investors alike,” said Chris McNeil, Senior Analyst at Corporate Insight and author of the Mutual Fund Monitor report. “We believe the overall value of an asset allocation tool is directly correlated with their level of sophistication. During our research, we came across a variety of different tools that range from complex to extremely limited. Among the most useful tools were those that allow users to create comparisons between current and target portfolios.” In this fifty-three page comprehensive report, Corporate Insight examines asset allocation tools from eighteen mutual fund companies using the following criteria:
http://www.corporateinsight.com/. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. BANK INSURANCE NEWS IN BRIEF - JUNE 26, 2006 TODAY'S BANK INSURANCE NEWS IN BRIEF" is provided each week courtesy of Michael White Associates @ www.bankinsurance.com. To read these stories, visit http://www.bankinsurance.com/editorial/news/default.htm
Benefits Marketing Association Benefits Marketing Mania 2006 - View Meeting Details
11. NEW YORK LEGISLATURE ADJOURNS WITH MAJOR ISSUES UNRESOLVED ALBANY, NY, June 26, 2006 –The New York State Legislature recessed its regular session with important insurance issues unresolved, according to the American Insurance Association (AIA).“Important auto insurance and workers’ compensation reform legislation that would have improved New York’s insurance market for consumers and businesses was left undone,” said Gary Henning, AIA assistant vice president, Northeast Region. “Even worse, the legislature passed a bill that will actually increase workers’ compensation costs,” added Henning. www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. New strategies for real estate terror insurance Mon Jun 26, 2006 3:48pm ET - By Susan
Cornwell - WASHINGTON (Reuters) - The United States
might have something to learn from Old Europe, at least in the area of
terrorism risk insurance for American hotels, office buildings and
shopping malls. But politics poses another challenge. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. BIG “I” SUPPORTS REPRESENTATIVES’ REQUEST ON TERROR RISK ISSUES Seven House members want examination of key issues to help ensure insurance availability WASHINGTON, D.C., June 26, 2006—The Independent Insurance Agents & Brokers of America (the Big “I”) supports a call by seven House members for an examination of a number of key issues related to terrorism risk insurance. The seven representatives, in a letter to Treasury Secretary John Snow, requested that the upcoming report of the Presidential Working Group on Financial Markets (PWG) examine and address five key issues. These include the following:
Signers of the letter included Reps. Pete Sessions (R-Texas), Richard Baker (R-La.), Deborah Pryce (R-Ohio), Sue Kelly (R-N.Y.), Eric Cantor (R-Va.), Vito Fossella (R-N.Y.) and Michael Ferguson (R-N.J.). The signers note, in their letter, that only a limited amount of private-sector terrorism reinsurance is available; that the unique and unpredictable nature of terrorist attacks makes it difficult for insurers to calculate risks; that the current marketplace for terrorism insurance is imperfect; that ways of encouraging greater take-up risks need to be explored to expand capacity and risk-spreading capability; and that NBCR attacks can vary so widely in their effects that there is an inability to predict with any certainty or probability the severity of such an event. “This letter accurately assesses the state of the marketplace as it relates today to the thorny issue of terrorism risk insurance,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs and federal relations. “It is virtually impossible to assess when or where an attack may come, and how much damage it will cause, and this makes it extremely difficult for the insurance marketplace to adequately provide coverage for such an event. The seven representatives are to be commended for raising these issues, and we support their call for the exploration of solutions to these concerns.” Also in the letter, the seven representatives pose a number of questions, including the following:
“These seven members deserve credit for asking tough questions about the terrorism risk insurance marketplace, both now and when the federal backstop expires,” says Brendan Reilly, Big “I” assistant vice president for federal government affairs. “These questions need to be asked now so that we have the answers if and when we need them. Terrorism risk poses a tremendous number of uncertainties, and we need to address those uncertainties as best we can, so that we can find ways to insure against this risk. We believe there is a federal role in this discussion, and we encourage the Treasury Department and the President’s Working Group to address these important issues.” www.independentagent.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. CompWest Insurance Company’s Parent, CWI Holdings, Inc., SAN FRANCISCO, CA -- June 26, 2006 -- CWI Holdings, Inc., the parent organization of CompWest Insurance Company, today announced the issuance of $20,000,000 of trust preferred securities in a private placement by CWI Holdings 2006 Statutory Trust I, a Delaware statutory trust that is wholly-owned by the Company and was formed for this purpose. Established in September 2004, CompWest Insurance Company is a leading provider and innovator of workers’ compensation insurance, protecting more than 1,200 businesses throughout California. www.compwestinsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Retirement Income Industry Association (RIIA) Unveils Solution to Solve Financial Advisors' Income Planning Education Needs; Organization Signals Intention to Lead Retirement Income Industry's Educational Efforts BOSTON--(BUSINESS WIRE)--June 26, 2006--With the leading edge of the Baby Boomer generation now sixty years of age, financial advisors must take concrete steps to assure that they are well prepared to serve the retirement security needs of tens of millions of Americans. Unfortunately, few financial advisors have been provided the tools, insights, and perspective necessary to properly place retirement assets into an income distribution mode. Today, the Retirement Income Industry Association (RIIA) announced its intention to change that by unveiling an advanced retirement income planning educational program designed to convey the specialized knowledge financial advisors must acquire if they are to succeed in the coming income distribution era. Called Delivering Retirement Income Solutions, the program is an overview of the key risks and issues retirees face and provides guidance to help advisors uncover client needs so they can deliver the right investment and risk management solutions. This educational offering will be the first in a series of programs that will result in an Industry Designation accrediting financial advisors as "Retirement Income Specialists." www.riia-usa.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Demand from Employees for Identity Theft Protection and Legal Benefits on the Rise; Benefit Solutions by GE helps employers serve needs of their employees SCHAUMBURG, Ill.--(BUSINESS WIRE)--June 25, 2006--As employers strive to broaden their benefit portfolios, demand is growing for benefits that go beyond traditional health and dental discount programs. Most notably, employees are increasingly calling for help in the areas of identity theft protection and legal protection. "It's clear that employees at many organizations need help," said Eric Kirchner, national sales leader for Benefit Solutions by GE, GE's line of employee health discount and legal benefit products. "There is a huge and growing demand for programs that can help employees defray the high costs of healthcare, as well as reduce the threat from a variety of other risks." According to the Federal Trade Commission, identity theft is one of the fastest growing and most personally devastating non-violent crimes in the United States. Meanwhile, when it comes to legal matters, studies show that taking time away from work to resolve legal issues is a leading cause of costly employee work absences. Among the cost-effective options available for employees through Benefit Solutions by GE are identity theft protection and legal assistance benefit programs. GE's identity theft protection helps employees guard against the menacing risk of fraud, while GE's legal assistance benefit programs give employees peace of mind and help businesses combat a leading cause of absenteeism and employee stress. In a recent study conducted for GE, 55 percent of employers were "significantly interested" in GE's legal assistance benefit program for employees. Of those, 81 percent considered the plan to be "comprehensive." "Employees are spending money and time on benefit and personal issues today more than ever before," said Kirchner. "So businesses are looking for useful, cost-effective enhancements to their benefit programs. That's where GE can help." "Employees are asking for more voluntary benefits," Kirchner said. "We can provide employers what they need to round out their benefit portfolios, so they can recruit great new employees and take better care of the ones they have." Benefit Solutions by GE provides a portfolio of non-insurance health discount options that can be incorporated separately or as a group, including dental, vision, prescription, legal and supplemental options. Employers are able to select the benefits that best suit their businesses while providing employees meaningful, on-the-spot savings. Benefit Solutions by GE, part of GE Consumer Finance, is a leading provider of convenient employee benefit options including health discount programs, dental discount plans and innovative legal coverage. For more information, call 1-847-605-4853 or e-mail eric.kirchner@ge.com. www.geconsumerfinance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. CAA Grows to 35 Members With LKL Insurance AUSTIN, Texas, June 26 /PRNewswire/ -- Combined Agents of America, LLC (CAA) today announced it has welcomed Lynn, Kiecke, Lackey Insurance Group, Inc. as its 35th member agency. CAA is a managing general agency (MGA) committed to strengthening the independent insurance agency system through profitable growth, quality and service for its member agencies.www.lklinsurance.com www.combinedagents.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. ING Introduces Instant-Issue Term Life Insurance To Be Sold at Banks and Credit Unions ING makes it easier for consumers to access life insurance MINNEAPOLIS, June 26 /PRNewswire-FirstCall/ -- ING today announced that it has introduced ING Instant Term, term life insurance available for immediate issue that will be sold through bank and credit unions. The company says it aims to create an easier way for low- and middle-income customers to buy life insurance. According to a study by LIMRA International(1), 26 percent of U.S. households with less than $75,000 of household income have no life insurance coverage at all. That figure rises to almost 50 percent for households that make less than $35,000. With ING Instant Term life insurance, which is issued by ING's ReliaStar Life Insurance Company, individuals interested in a policy see designated branch staff at a participating financial institution and answer a series of quick questions about themselves and their medical history. No medical exams or lab tests are required. Customers who qualify will leave their financial institution's branch with their policy in-hand. "As a nation, our population is underinsured, with just two-thirds(1) of individuals owning a life insurance policy," said Alan S. Lurty, head of commodity products for ING's U.S. Life Business Group. "The ING Instant Term product makes it easier for a person to walk into a branch uninsured or underinsured, and if they qualify, walk out with a policy that can help protect a family's financial security." Many Americans procrastinate buying life insurance LIMRA's study suggests that easier access might help insurance ownership given that procrastination is a leading cause of a lack of coverage. According to the report, for those who said that they might buy life insurance in the near future, 60 percent of respondents said that they simply "haven't gotten around to it." Thirty-four percent replied that they had never been approached to purchase life insurance(1). Lurty commented, "The simplicity and speed of the process will make it easier for banks and credit unions to offer insurance to their customers. In turn, that makes it that much easier for the average American to obtain a policy." Available for periods of 10, 15, 20 or 30 years, ING Instant Term life insurance has premiums that are guaranteed to remain level during that period*. After the level term period, coverage can continue until age 95 with annually increasing premiums. Customers can choose coverage of up to $250,000 (certain restrictions apply to applicants over 50 years old). Individuals wanting to learn more information about life insurance, including a life insurance needs calculator, may visit www.ing.com/us/lifeinsurance. Financial institutions interested in offering ING Instant Term can contact Al Lurty at 610-425-3868, or al.lurty@us.ing.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. NationsHealth Continues Cost Containment and Efficiency Initiatives SUNRISE, Fla., June 26 /PRNewswire-FirstCall/ -- NationsHealth, Inc. (Nasdaq: NHRX, NHRXW, NHRXU) announced today that its ongoing efforts to continually improve operational effectiveness have resulted in further streamlining the operations of both its Insurance Services and Pharmacy Products business lines.The Insurance Products business currently provides customer service and marketing and enrollment services to CIGNA HealthCare for its CIGNATURE Rx Medicare prescription drug plan. As a result of management's implementation of operational improvements and business process initiatives, along with the end of the CMS Prescription Drug Plan open enrollment period, NationsHealth was able to significantly reduce the number of employees serving this business line. These actions are expected to immediately decrease operating expenses for this business line by approximately $1 million per year. www.nationshealth.com 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. First American Announces $300 Million Increase in Stock Repurchase Program SANTA ANA, June 26 /PRNewswire-FirstCall/ -- The First American Corporation (NYSE: FAF), America's largest provider of business information, today announced that its board of directors has amended its current repurchase plan to provide for the repurchase of an additional $300 million of the company's currently issued and outstanding common shares. First American has been in the process of repurchasing $200 million of its shares under a buy-back plan approved in May 2004 and revised in May 2005. To date, the company has repurchased approximately $122 million in First American stock under that plan. The balance of $78 million will be combined with the new repurchase authorization, permitting the company to purchase up to $378 million in First American shares.www.firstam.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. DSS Survey Finds, Despite Negative Press Surrounding Part D, Seniors Are Happy With Coverage FORT WORTH, Texas, June 23 /PRNewswire/ -- DSS Research today announced the findings of the latest wave of its quarterly, national SeniorTrax(TM) survey. The fourth wave, completed in mid-April, concluded that notwithstanding negative press, enrollees are satisfied with their Part D coverage. CMS says that 38.2 million eligibles or 90% of the total eligible population had enrolled by May 15th."Despite the continual drumbeat of negative press around Part D, our survey shows that seniors are by and large satisfied with their Part D coverage," says Roger Gates, president and CEO of DSS Research. Other findings from the survey:
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Darwin to Offer AAPC Members Professional Liability Coverage FARMINGTON, Conn., June 23 /PRNewswire-FirstCall/ -- Darwin Professional Underwriters, Inc. (Darwin) (NYSE: DR) and the American Academy of Professional Coders (AAPC) have collaborated to offer AAPC medical coders professional liability coverage tailored expressly to their needs. Darwin's distinctive named perils policy customizes coverage to meet the unique needs of each policyholder. AAPC members can choose two policy limit options, $500,000/$500,000 or $500,000/$1 million. The policy includes contingent bodily injury coverage and offers a $25,000 punitive damages sublimit (the sublimit is available where punitive damages are permitted by applicable law, and when available the sublimit is within the limit of liability). Prior acts coverage is also available. "Although medical coders are not on the front lines of medical management in terms of diagnostics, patient care or patient supervision, the responsibility to administer critical patient data rests on their shoulders," states Nicole Haggerty, vice president for Darwin. "As such, privacy-related exposure could occur. It is crucial for coders to understand the potential exposures covered by professional liability insurance. Darwin's policy is created for the specific needs of each individual policyholder. Coverage for medical coders fuses contingent bodily injury and professional liability coverage grants into one policy." Rockwood Programs, Inc. (Rockwood) will administer this product on behalf of AAPC. For more information on this product, visit http://www.rockwoodinsurance.com or call Rockwood at 800-318-9065. www.darwinpro.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Universal Insurance Selects EasyLink Document Capture and Management Services to Streamline Underwriting and Policy Administration Processes PISCATAWAY, N.J.--(BUSINESS WIRE)--June 26, 2006--EasyLink Services Corporation (NASDAQ: EASY), a leading global provider of services that power the exchange of information between enterprises, their trading communities and their customers, today announced that Universal Insurance Company, a member of The Seibels Bruce Group, Inc., has selected EasyLink's Document Capture & Management Service to provide workflow services for their most critical business processes. www.seibels.com www.EasyLink.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. GLOBAL LEADERS NAMED TO INSURANCE HALL OF FAME New York, New York -- June 26, 2006 – Two insurance leaders have been named to the prestigious Insurance Hall of Fame by the International Insurance Society, Inc. They will be honored in Chicago, July 17, 2006, at the annual seminar of the International Insurance Society at the Westin Chicago River North hotel. They are: · Orio Giarini, Switzerland Geneva Association · Siegfried Sellitsch, Austria Wiener Staedtische The Insurance Hall of Fame is sponsored in New York by the International Insurance Society, Inc., a non-profit educational enterprise of insurance executives with almost 1000 members representing 90 nations. The Insurance Hall of Fame was instituted in 1957 by the Griffith Foundation for Insurance Education, Columbus, Ohio and later moved to The University of Alabama. There are 116 laureates in the Insurance Hall of Fame, including the most recent, from over 20 countries. The qualifications for installation in the Hall of Fame include exceptional contributions to the advancement of insurance locally or globally and innovation in developing insurance benefits for the well being of society and individuals. Members are selected by the membership of the International Insurance Society in a secret, independently-audited ballot. Also honored in Hong Kong will be Arthur Bailey (1905-1954), the pioneer in using the “Bayesian approach” to credibility theory for property-liability insurance companies. He will receive the Dr. John S. Bickley Founders’ Award Gold Medal for Excellence, named in honor of the Founder of the International Insurance Society and an Emeritus Professor at the University of Alabama in the USA. Orio Giarini, the first Secretary General of The Geneva Association, is being honoured for his work in developing the organization into the premier risk and insurance research institute, an organization highly respected throughout the insurance industry worldwide. His innovative concepts have influenced the insurance world and general thinking about risk and insurance economics. His academic endeavors include associate professorships of economics at the European Institute of the University of Geneva, and the University of Geneva. Dr. Siegfried Sellitsch, who joined Wiener Staedtische in 1966, has enjoyed a long and productive career as the “face” of the insurance industry in Austria and throughout Europe, particularly pioneering in Eastern European countries. He has been active in the Austrian Insurance Association, has served on the Boards of the Austrian Actuarial Society and the Vienna University of Technology and he has been a constant voice on Austrian financial policy. Biographies, photos and videos about the Insurance Hall of Fame and its recipients are available at www.InsuranceHallofFame.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Agents speak up in record numbers in PIACT’s fifth annual Company Performance Survey HARTFORD, CONN.—A record number of nearly 200 Connecticut insurance agents took part in the Professional Insurance Agents of Connecticut Inc.’s fifth annual Company Performance Survey, which was conducted earlier this year, via PIACT’s Web site. Companies were rated by agents on 16 different performance items. PIACT recognizes the top five companies for each performance item. Companies that consistently have shown strong performance in a variety of areas since the survey’s launch in 2002 are Chubb Group and NLC Insurance Cos., which again showed their versatility by placing among the survey’s top five companies in multiple performance categories. This year, Atlantic Mutual and Chubb Group (personal) ranked consistently strong, each scoring among the top five companies on 10 of the survey’s 16 performance items. Also scoring well were Chubb Group (commercial) NLC (personal), Peerless (commercial), Progressive and St. Paul Travelers (personal), which ranked among the top performers on seven or more of the 16 criteria. Scoring high in four or more categories were Andover Cos., The Hanover Insurance Group (commercial), NLC (commercial), St. Paul Travelers (commercial) and The Hartford (commercial). Overall top-scoring companies in 2006 for all performance items combined, earning a total score of 60 or higher, are Atlantic Mutual, Chubb Group (commercial and personal), St. Paul Travelers (commercial and personal), Peerless (commercial), Progressive, The Hartford (commercial and personal), The Hanover Insurance Group (commercial), NLC (personal), Safeco (commercial) and Zurich (commercial). The highest possible overall score was 80. Four companies were added to the survey this year: Atlantic Mutual, Harleysville/ Worcester, Utica First and Vermont Mutual. The participants ranked an average of six companies each. “For the last five years, PIACT has used this survey to gauge independent agents’ perceptions of what makes a company great,” said John V. DiMatteo, CFP, CCPS, president of PIACT. “It’s a combination of people, technology, and a saleable combination of product and price. Additionally, agents also measure how genuinely the company supports their agency and the agency system.” http://www.piaonline.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. U.S. DISTRICT COURT JUDGE RULES COUNTERSIGNATURE STATUTE IN VIRGIN ISLANDS IS UNCONSTITUTIONAL CHARLOTTE AMALIE, ST. THOMAS – A federal judge today ruled that the countersignature law in the Virgin Islands is unconstitutional, giving The Council of Insurance Agents & Brokers another victory in its battle to eliminate provisions forcing non-resident insurance brokers and agents to pay fees to a resident agent in order to do business in that jurisdiction. The decision gives The Council a clean sweep in its decades-long battle to eliminate all countersignature laws in U.S. states and territories. The judge threw out the law in a ruling from the bench. The Virgin Islands case was the final Council lawsuit to come to a hearing. The Virgin Islands still has a right to appeal the judge’s ruling, so The Council cautioned brokers and agents to continue following the countersignature law requirements until the ruling is final. Previously, countersignature laws in Florida, South Dakota, Nevada and Puerto Rico have been struck down by federal judges in those jurisdictions, and the West Virginia legislature repealed its law rather than defend it in court. The rulings tossing out the countersignature laws in Nevada and Puerto Rico are still in the appeals process and are not yet final. www.ciab.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Faithful Embrace FaithGuard WEST DES MOINES, Iowa, June 26 /PRNewswire/ -- FaithGuard, an auto and homeowners insurance policy with specific benefits for churchgoers, has been on the market for just one year and so far it is proving to be popular among the faithful. While GuideOne Insurance, one of America's largest insurers of churches, has a long history providing consumers with auto and homeowners insurance, it launched the unique personal lines product for churchgoers last spring. The company is currently adding new FaithGuard policies at a rate of more than 160 per day. www.GuideOne.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29.
INSURANCE NEWSCAST "White
Papers" Mobilizing the Workforce to Attract and Retain Customers: How Ease of Doing Business Helps, By Nort Salz and Paul Croke, founding partners of Deep Customer Connections, Inc., a firm dedicated to helping p-c carriers improve their agency relationships and, consequently, their business performance. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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