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1. Insurers criticize bill to create US disaster fund By David Lawder - WASHINGTON, June 28 (Reuters) - A bill to create a U.S. catastrophic insurance fund to help pay claims from another major hurricane or a massive earthquake drew praise from some consumer advocates and state regulators, but criticism from insurers on Wednesday. At a House Financial Services subcommittee hearing, Florida Insurance Commissioner Kevin McCarty said a federal fund to backstop state catastrophic insurance funds would provide the capital needed to keep insurers afloat and stabilize the housing market in the event of a disaster of unprecedented proportions. "The prospect of mega catastrophes -- i.e. the big one (earthquake) hitting California, a category 3 or 4 hurricane hitting New York, the New Madrid Fault leveling the Midwest -- create risks that could simply destroy an insurance company or potentially the entire industry," McCarty said. He said a federal backstop, funded from policyholder premiums based on local risks and with incentives for improved building standards and emergency preparedness, could help avoid devastation to the U.S. economy. A bill proposed by Florida Republican Reps. Virginia Brown-Waite and Clay Shaw would create the Consumer Hurricane and Earthquake Protection Fund, which would provide lower-cost reinsurance to state catastrophic insurance funds, thus reducing the cost of homeowners insurance across the country. Brown-Waite, a member of the panel's housing subcommittee, said high property insurance costs in Florida, hit by several major hurricanes in the last two years, were becoming a significant problem for state homeowners, many of whom now pay more for insurance than property taxes. A replay of the 1938 "Long Island Express" hurricane would result in damages of $100 billion in the area east of New York City, while another San Francisco earthquake on the scale of 1906 could result in more than $400 billion in reconstruction costs, said retired Admiral James Loy, co-chairman of ProtectingAmerica.org, an emergency preparedness advocacy group. But insurance officials said the industry has coped well with the massive costs of Hurricanes Katrina and Rita and other devastating storms in recent years.They cautioned against creating another federal program along the lines of the heavily indebted National Flood Insurance Program and said non-flood disaster insurance was better handled by the private sector as long as it was priced according to the real risks of coastal exposure. The House of Representatives on Tuesday passed legislation to shore up the flood program, hammered in last year's Gulf Coast hurricanes, raising its borrowing capacity to $25 billion from $20.8 billion and requiring the nation's flood maps, which determine where homeowners must buy such insurance, be redrawn. Marc Racicot, president of the American Insurance Association, which represents property and casualty insurers, said he disagrees with the premise that a large-scale natural catastrophe is uninsurable by the private sector. Even since Katrina struck in August 2005, about $28 billion in new capital had entered the insurance market, he said. "It is important to recognize that new government programs are no panacea for natural catastrophe risk and that such programs can encourage and lead to inefficient allocation of capital, unfair subsidization and increased and unwise building in catastrophe prone regions," Racicot said. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Title insurance rates cut after Spitzer settlement Thu Jun 29, 2006 11:49am ET NEW YORK, June 29 (Reuters) - The New York State Insurance Department approved 15 percent rate reductions for title insurance companies on Thursday after an investigation into illegal rebates and referral fees by New York State Attorney General Eliot Spitzer and the department. Title insurance is required by banks and mortgage agencies to make sure that a home buyer has clear title to a property before they finance it. "These title insurance rate reductions will save consumers hundreds of dollars when they close on the purchase of a new home," said Superintendent Howard Mills. "New Yorkers have been paying too much for title insurance for too long." Spitzer said he would continue to probe title insurance and try to eliminate illegal practices that were inflating rates. On May 23, Spitzer said he had settled a two-year probe of illegal payments by Fidelity National Title Group Inc. (FNT.N: Quote, Profile, Research) and First American Corp (FAF.N: Quote, Profile, Research) to agents and favored customers. Both companies agreed to pay fines and change their practices. Fidelity National and First American were among the title insurers who agreed to lower their rates by 15 percent immediately. Other title insurers who dropped rates by similar amounts were LandAmerica Financial Group Inc. (LFG.N: Quote, Profile, Research), Stewart Title Companies (STC.N: Quote, Profile, Research) and Washington Title Insurance Co. Both Fidelity National and First American had been required by the settlement to reduce their rates by at least 15 percent going forward for properties they insure that are valued at no more than $1 million. New Yorkers who purchase an upstate property for $200,000 will now pay on average $952 for title insurance, down from $1,120. The percentage rate decreases remain the same, but the dollar savings are higher, for buyers in downstate counties. The new rates take effect immediately. Title insurers in New York collected an estimated $1.2 billion in written premiums in 2005, the insurance department said. The probes into title insurers revealed evidence of illegal schemes by which real estate developers would have their title insurance fees waived or discounted in other states in exchange for giving their New York business to Fidelity National Financial Group or First American Title Group companies, Mills and Spitzer said. These discounts were not available to home purchasers and small businesses, who in effect subsidized the illegal rebates by paying higher title insurance rates in New York, according to Mills and Spitzer. The investigation also found that Fidelity National and First American paid illegal referral fees to their customers' representatives. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Citigroup cuts insurance, capital goods June 29 (Reuters) - Citigroup analyst Tobias Levkovich on Thursday cut his view on insurance and capital goods sectors and upgraded telecom services, food and staples retailing and healthcare equipment and services. Levkovich is now "underweight" on insurance compared with "market weight" earlier. A research note from the brokerage cited earnings risk, valuation and higher interest rates for the change in his view on the sector. The lowering of capital goods sector -- to "market weight" -- was due to earnings revisions and valuation concerns, the research note said. (Reporting by Supriya Kurane and Ameya Karve in Bangalore) © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. FDIC extends comment period for 3 rules to Aug. 16 WASHINGTON, June 29 (Reuters) - The Federal Deposit Insurance Corporation on Thursday extended the comment period for three proposed rules on deposit insurance assessments until Aug. 16. The proposed rules would implement a one-time assessment credit for eligible insured depositary institutions, payment of dividends from the Deposit Insurance Fund, and procedural and operational changes to the assessment to determine and collect from insured institutions. The Deposit Insurance Reform Act of 2005 law requires that the FDIC move to implement credit and dividend rules by Nov. 5. The original deadline for comment was July 17. © Reuters 2006. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. USI Holdings Corporation to Appeal Copyright Infringement Dispute BRIARCLIFF MANOR, N.Y.--(BUSINESS WIRE)--June 28, 2006--USI Holdings Corporation (Nasdaq: USIH) ("the Company") announced that, yesterday, a jury returned a verdict against USI MidAtlantic, Inc. ("USIM"), a subsidiary of the Company, in the amount of approximately $16.6 million in a copyright infringement case. The case, William A. Graham Company v. Thomas P. Haughey and USI MidAtlantic, Inc. (U. S. District Court, Eastern District of Pennsylvania, CA No. 05-612) was brought in Federal District Court in Philadelphia in February 2005. The plaintiff alleged that USIM and Mr. Haughey used materials derived from plaintiff's copyrighted insurance manuals to solicit and obtain insurance business. Mr. Haughey had been employed by plaintiff prior to his becoming employed by a predecessor of USIM. The plaintiff sought damages representing all of the commissions earned by USIM and Mr. Haughey from every client that received any proposal that contained any information copied from plaintiff's manuals. Following the trial judge's rulings favorable to USIM and Mr. Haughey on summary judgment, the case was tried to a jury during the week of June 19, 2006, and the jury returned its verdict against USIM yesterday. The jury also returned a verdict against Mr. Haughey in the amount of approximately $2.2 million. The Company previously notified its insurance carriers of the plaintiff's claim. Certain of the insurance carriers have denied coverage under their policies, others are evaluating their positions, and one carrier has provided some coverage. David L. Eslick, Chairman, President and CEO of the Company stated, "We could not disagree more strongly with the jury's conclusion that our subsidiary, USIM, or Thomas Haughey infringed Graham's copyright or that the commissions we received were attributable to the use of Graham's materials. We intend to pursue vigorously avenues for post-trial relief from the judgment and will continue to pursue aggressively USIM and Tom Haughey's coverage under applicable insurance policies." The Company intends to file a motion with the trial court to set aside or significantly reduce the judgment. If the Company's motion is denied, the Company intends to pursue an appeal. The Company is currently evaluating the judgment, including the Company's litigation and insurance coverage options. If the Company subsequently determines that a contingency reserve is required, the amount will be reflected in the second quarter financial statements. As of March 31, 2006, we had not established a contingency reserve on this case based on the information we considered at the time. We therefore expect that our contingency reserve will increase, and that an increase could be material and could negatively impact the Company's financial results for the second quarter of 2006. www.usi.biz Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. Consumer-Driven Health Plan Movement Likely to Impact Voluntary Market According to an Eastbridge Study AVON, Conn.--(BUSINESS WIRE)--June 29, 2006--Many carriers today seem more convinced than ever of the positive impact that consumer-driven health plans will have on voluntary product sales. According to a recent Eastbridge study, 39 percent of voluntary carriers surveyed believe that long-term care plan sales will increase as a result of the introduction of Health Savings Accounts (HSAs). This number is up from just 24 percent in 2004. In addition, almost six in ten think we will see an increase in the sale of hospital indemnity, supplemental medical, and mini-med plans due to the move toward consumer-driven healthcare. This number is up from 44 percent in 2004. "Health Savings Accounts and high-deductible health plans help employers reduce costs, but the move to higher deductibles is often frightening to employees," says Gil Lowerre, president of Eastbridge. "We know that employees sometimes feel these new plans leave 'gaps' in insurance coverage that employees may not feel comfortable filling themselves. Voluntary products are one way that employees can fill those gaps." "We are seeing carriers develop or revamp some of their voluntary plans (like hospital indemnity plans) to fit into this market," says Bonnie Brazzell, vice president of Eastbridge. "In fact, almost twenty percent of respondents in our study see hospital indemnity plans as a 'growth' product for their companies over the next few years," adds Brazzell. Limited benefit medical plans are another example of products that are expected to increase as the medical market changes. "Thirty-five percent of the carriers we surveyed," notes Gil Lowerre, president of Eastbridge, "expect limited benefit medical plans to be a 'growth' product in the voluntary market." While most limited benefit plans would not fit under HSA an, they are quickly becoming an important voluntary benefit to cover those employees not eligible for an employer's core medical plan. The 2006 Worksite Product Trends Frontline Report updates our 2002 and 2004 studies on the same topic. Where applicable, the current study draws comparisons between this year's results and those of the past two studies. Eastbridge Insight and Information Partner Companies as well as participants in the survey receive the Frontline Report free of charge.Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada. http://www.eastbridge.com/ Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. News From USW: New Benefit Is Latest Innovation in USW's Continuing Commitment to Retirees' Security PITTSBURGH--(BUSINESS WIRE)--June 29, 2006--News From USW: An innovative trust fund set up to benefit retirees who lost health care coverage in the bankruptcies of four steel companies - Bethlehem, LTV, Acme Metals and Georgetown Steel - is announcing a new benefit. A portion of the assets of the trust, now known as the Mittal Steel USA Voluntary Employee Beneficiary Association (VEBA), will be used this year to reimburse as many as 75,000 eligible beneficiaries and spouses for part of their 2006 Medicare Part B monthly premiums. "The creation of this new benefit," said USW President Leo W. Gerard, "is further proof that the union has never given up the fight for the rights of our retirees, despite the fact that they've been abandoned by their former employers and given cruel short shrift by the bankruptcy courts." The fund will reimburse retirees and surviving spouses for part of the Medicare Part B monthly premiums paid during the first six months of this year. Premiums are typically $88.50 a month for Medicare beneficiaries. The actual amount of the reimbursement will depend upon the number of VEBA beneficiaries and spouses who apply for the benefit. But the minimum reimbursement payment will be $40 per month, or $240 for any eligible individual who paid Medicare Part B premiums for all of the first six months. The cash payments will be distributed to eligible applicants in December, 2006. Thomas Duzak, director of pension and benefits for the USW, said the new one-time benefit will be paid for from a surplus in the fund resulting from favorable steel industry conditions. Duzak also urged eligible retirees to enroll in a Prescription Drug Program established for VEBA beneficiaries in March 2005. The monthly cost is only $10 per person, and the benefits are, on average, equal to or better than the standard benefits under Medicare. Retirees who are not already enrolled for prescription drug coverage are urged to contact the VEBA at 1(877) 474-8322. The VEBA trust was established in 2002 through negotiations between the United Steelworkers and International Steel Group (ISG), which has since been acquired by Mittal Steel USA.The VEBA is funded by contributions from Mittal, based on company earnings and steel tonnage. Benefits are jointly determined by the USW and Mittal, depending on funds available in the trust and the needs of eligible retirees. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Health Net Enters into $500 Million in Debt Facilities to Refinance Its Senior Notes LOS ANGELES--(BUSINESS WIRE)--June 28, 2006--Health Net, Inc. (NYSE:HNT) today announced that on June 23, 2006, it began a series of transactions for the purpose of refinancing its $400 million Senior Notes due 2011 (the "Senior Notes"). www.healthnet.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Nonqualified Retirement Plans: New Rules, New Look In the wake of Enron and Sarbanes-Oxley, executive compensation has received increased public attention – along with increased regulatory scrutiny. Two new regulations impact how and where deferred compensation plans are used (IRC Section 409A) and how nonqualified stock options fit into the picture (FAS 123(R)). In the July 2006 issue of the Journal of Financial Service Professionals, Stephen B. Parrish, JD, CLU, ChFC, RHU, examines four of the most popular nonqualified executive retirement plans – deferred compensation, stock options, executive-bonus plans and split-dollar plans – in light of the new rules. Parrish begins his article with a discussion of what hasn’t changed under IRC Section 409A, and presents his list of nine key elements in table form.He notes that the new rule is aimed at how executive compensation plans are established and executed, and posits that deferred compensation plans, which offer a variety of benefits, are likely to continue to thrive.However, he says, they will have to be more carefully designed, monitored and administered – particularly since noncompliance penalties are very steep and target the executive. The future for nonqualified stock options under FAS 123(R) is less certain, Parrish says.Perceived abuses in these plans have led to concerns in the areas of disclosure and accounting, which in turn led to the revision of FAS123(R).Now companies must first value and then expense the options, both of which can be problematic.As a result, he notes, stock options may be used more selectively, or may simply be replaced with other incentives.A comparison of nonqualified stock option and defined-contribution deferred compensation – from both the company and executive perspective – is presented in graphic form. While there are no new tax or accounting rules that impact executive-bonus plans, the author notes that the trend toward S corporation status and equalization of corporate and individual tax rates has made them more attractive in many situations.The use of life insurance policies with a heavy cash-accumulation element is discussed, as are restrictive endorsements on policies, which may be best eliminated or lessened.Parrish foresees a bright future for after-tax programs such as executive-bonus plans, particularly in light of proposed SEC disclosure regulations. Corporate compensation committees are likely to be considering the relative merits of deferred compensation plans versus executive-bonus plans.Parrish provides an example that can serve as a decision tree, and presents the implications of various choices side-by-side in graphic form. Finally, a discussion of split-dollar plans is presented.Differing goals for these plans – maximizing retirement income or providing a death benefit -- impact how and where they are used. The author says that the future for these plans may be brighter than initially assumed after final regulations were issued in 2003, but notes that there are still clouds on the split-dollar horizon – including a possible overlap between the final regulations and Section 409(A). parrish.steve@principal.com www.financialpro.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. NAMIC Testifies Before House Subcommittee on Natural Catastrophes and the Housing Market WASHINGTON (June 28, 2006)—Congress can play a constructive role in assisting the private market to ensure that the nation’s homeowners are prepared for the next major natural catastrophe said a National Association of Mutual Insurance Companies (NAMIC) witness in testimony before a House Financial Services Subcommittee here today. Tim Russell, president of Baldwin Mutual Insurance Company and Mayor of Foley, Alabama testified before Subcommittee on Housing and Community Opportunity hearings on “America’s Housing Market: Prepared for the Next Natural Catastrophe?” Russell discussed his unique perspective on the devastation caused by natural disasters such as Hurricanes Katrina and Ivan, which are the worst natural disasters in Alabama history, and the challenges that face insurers and government policymakers in preparing for and managing large-scale natural disasters. “I wish I could sit here before this Committee and say that the worst is behind us,” Russell said.“However, according to hurricane forecasters, the increases we have seen in hurricane frequency and severity are expected to continue for at least another decade.” Russell’s testimony can be accessed at NAMIC Online at http://www.namic.org/pdf/060628russelltestimony.pdf Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. NAIC TESTIFIES BEFORE CONGRESS ON NATURAL CATASTROPHE PREPAREDNESS KANSAS CITY, MO (June 28, 2006) - Speaking today on behalf of the National Association of Insurance Commissioners (NAIC), Kevin McCarty, Commissioner of Insurance Regulation for the State of Florida, testified before a key subcommittee of the House of Representatives on the role of insurance in preparing for large natural catastrophes.Commissioner McCarty commended the Subcommittee on Housing and Community Opportunity for holding the hearing and examining the issue of natural catastrophe preparation and response. “Large natural catastrophes are a national economic problem, not simply a local insurance problem,” said Commissioner McCarty, who also chairs the NAIC Catastrophe Insurance Working Group. “Congress and the states need to work together to develop a comprehensive plan today to better manage and mitigate the natural catastrophic events of tomorrow. “Although insurance will always be the catalyst of economic recovery following natural catastrophes, much can and should be done prior to these events to minimize their impact,” McCarty said. “Effective and enforced building codes, mitigation incentives and better land use policies are all steps to managing our national response to natural catastrophes.” Commissioner McCarty’s testimony highlighted a resolution passed during the NAIC Summer National Meeting in June that calls on Congress to consider these and other measures for dealing with natural disasters.McCarty also outlined some of the concepts being considered by the NAIC’s National Catastrophe Plan, including tax-deferred catastrophe reserves, state catastrophe funds, and a federal catastrophe backstop. “When the next natural catastrophe occurs, the ability of the affected housing markets and regional economies to endure and recover is going to be dependent, in part, on what we do here today and the decisions we make in the days to come,” McCarty said. www.naic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. AIA URGES CONGRESS TO ASSIST, NOT REPLACE, PRIVATE INSURANCE MARKET FOR NATURAL CATASTROPHE RISK WASHINGTON, D.C., June 28, 2006– American Insurance Association (AIA) President Gov. Marc Racicot told a congressional panel today that, despite record losses in 2005 – and given the necessary tools – the private property insurance market can continue to manage natural catastrophe losses. “Despite last year’s $70 billion in insured losses from natural disasters, approximately $28 billion in new capital has entered the U.S. property insurance market since Hurricane Katrina struck,” Racicot testified during the U.S. House Financial Services Subcommittee on Housing and Community Opportunity’s hearing entitled, "Is America's Housing Market Prepared for the Next Natural Catastrophe?" “Although the property insurance market currently is under some stress in several Atlantic and Gulf Coast states,” Racicot acknowledged, “we strongly believe the solution to this stress lies in improving – not displacing – private sector ability to serve homeowners and businesses in the path of potential storms.” Having seen first-hand the “terrible and heartbreaking destruction Hurricane Katrina inflicted upon Gulf Coast residents, businesses, and communities,” Racicot said, “the time has come for America to have a frank, tough and perhaps politically unpopular discussion about how best to manage natural catastrophes going forward.” AIA has constructed a reform agenda including both federal and state initiatives to meet head-on the challenge of managing natural catastrophe risk.
Turning to legislation introduced by Rep. Ginny Brown-Waite (R-FL) and Rep. Clay Shaw (R-FL), Racicot noted that the “AIA also has analyzed the Brown-Waite Shaw Homeowners’ Insurance Protection Act, H.R.4366, and respectfully disagrees with the premise that government must step in and displace large segments of the private property insurance sector.” Racicot concluded his testimony by saying that “creation of state and/or federal catastrophe funds would do very little to solve the many, complex issues surrounding natural catastrophe risk. To the contrary, such funds could supplant and discourage private markets, cause unfair subsidies, increase unwise building in catastrophe-prone regions and compromise the property insurance infrastructure that has served our nation so long and so well.” www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. House Passes National Flood Insurance Reform WASHINGTON (June 28, 2006)—The National Association of Mutual Insurance Companies (NAMIC) commends the House of Representatives for seeking swift action to reform the National Flood Insurance Program (NFIP).By a vote of 416 to 4 late yesterday afternoon, the House overwhelming approved H.R.4973, the Flood Insurance Reform and Modernization Act of 2006 (FIRM). H.R. 4973 aims to strengthen the program – funded by premiums and administered by insurance companies – which has an estimated $25 billion debt from claims arising from Hurricanes Katrina, Rita and Wilma. “It is important for Congress to address problems with the program soon, given that we are already in a new hurricane season,” said NAMIC Senior Federal Affairs Director Justin Roth.“This bill provides the framework for a federal flood insurance program that will be able to continue to serve policyholders in need of flood insurance while protecting American taxpayers.” The bill mandates several common-sense reforms that represent a promising start toward reforming the program:
The havoc wreaked by the 2005 Gulf Coast hurricanes has raised important questions about how Americans should prepare for and respond to natural disasters in the future.The likelihood of more frequent and severe natural disasters in the near term, combined with the continuing population growth and development in areas vulnerable to natural disasters, pose significant challenges for government policymakers, insurers, realtors, home builders, mortgage lenders and property owners. In December 2005, NAMIC formed a task force on natural disasters to address these challenges.Among its findings, the task force concluded that the NFIP should be maintained, subject to the following reforms:
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Best's Review Survey: Insurance Professionals Believe the National Flood Insurance Program Leaks Badly OLDWICK, N.J.--(BUSINESS WIRE)--June 29, 2006--Voices from across the insurance industry are calling for major changes to the National Flood Insurance Program, such as an increase in maximum coverage limits, mandating of stricter building codes and compliance, and the inclusion of additional living expenses, according to a recent survey by Best's Review. Results of the survey appear in the July 2006 issue of the magazine. More than two-thirds of the respondents said they were from insurance companies or agencies, brokerages or adviser organizations. One thing that a majority of respondents agreed upon: the flood insurance program needs help. Only 27.4% of respondents said the program should be fully privatized. A little more than half of the respondents asked that the program expand mandatory coverage to include those with mortgages through state banks that aren't federally insured, and for those who own their homes. Another 50.2% would like to see the elimination of subsidies for commercial properties and second homes. To decrease the amount of recurring claims from repetitive loss properties, more than half of the respondents said they'd like to see the program offer government aid to homeowners in floodplains to either raise their properties substantially, or move out. Mandates for retrofitting for hurricane protection also figured largely among respondents, as did the inclusion of replacement cost of contents and business interruption coverage. Several respondents also called for the elimination of subsidies for second homes, vacation properties and nonresidential properties, saying taxpayers should not have to foot the bill for those who cannot afford to insure such structures. www.ambest.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. BIG “I” PRAISES HOUSE FOR PASSING FLOOD BILL Legislation includes many important coverage provisions WASHINGTON, D.C., June 27, 2006—The Independent Insurance Agents & Brokers of America (the Big “I”) hails today’s House passage of H.R. 4973, the Flood Insurance Reform and Modernization (FIRM) Act of 2006. The bill contains a number of Big “I”-backed provisions. Some of the new Big “I”-backed reforms included in the legislation are:
“We are very pleased that the House has moved forward on comprehensive flood insurance reform,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs and federal relations. “We thank the House for passing this vital legislation, which will not only help consumers who are vulnerable to flooding, but also shore up the NFIP for many years to come.” www.independentagent.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. LifeCare® Poll: Career Overtakes Finances as Leading Cause of Stress for Most WESTPORT, Conn., June 28, 2006 -- According to a new poll conducted on LifeCare®, Inc.'s, private web site during the month of April, "job/career" has replaced "finances" as the leading cause of stress for most people. Thirty-two percent of respondents identified their job as their biggest stressor, while 24 percent selected finances. Finances consistently led job/career in past polls by LifeCare, a leading creator of high-quality life management services. The reason for this turnaround? "First, people are being asked to do more with fewer resources, which means working longer hours and taking on more responsibility," said LifeCare CEO, Peter G. Burki. "Naturally, that's going to raise stress levels. But it's also important to note that 'job/career' is more of a catch-all category than any of the others. It encompasses time management, work/life balance, compensation, relationship issues with bosses and co-workers, personal happiness and more. Add that all together and it's easy to see why job/career would top the poll results." The other leading causes of stress respondents cited were:
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. PATIENT INFORMATION RESOURCES APPENDIX ADDED TO ODG June 26, 2006 –Work Loss Data Institute announces a new appendix to Official Disability Guidelines Treatment in Workers’ Comp called, “Patient Information Resources.”This enhancement to ODG contains prescreened links to credible patient-friendly treatment resources available on the Web. Patient Information is provided for all workers’ comp conditions including those pertaining to Ankle & Foot, Burns, Carpal Tunnel Syndrome, Elbow, Eye, Forearm, Wrist, & Hand, Head, Hernia, Hip & Pelvis, Knee & Leg, Low Back, Neck & Upper Back, Pain, Shoulder and Stress/Mental. The links are followed by a short description or excerpt from each of the website’s contents so, without having to filter through hundreds of online and hardcopy resources, healthcare providers can quickly provide their patient with a personal aid to recovery by printing the list of selected links or clicking on the links and printing the most relevant pages within the selected websites. ODG’s Patient Information Resources section efficiently connects the patient and provider to pertinent information such as a basic understanding of the injury, self-help methods for speeding recovery and suggested therapies for regaining functionality and productivity. www.worklossdata.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Brooke Franchise Corporation Utilizes Claritas Inc. to Enhance Location Selection Process OVERLAND PARK, Kan., June 28 /PRNewswire-FirstCall/ -- Brooke Franchise Corporation, a subsidiary of Brooke Corporation, announced that it has enhanced the location selection process for its independent insurance agents through the use of site analysis software from Claritas Inc., a marketing information resources company. www.claritas.com www.brookecorp.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. ING updates ING TermSmart to Make it Easier for Consumers and Producers ING lowers pricing, eases underwriting requirements, and enhances product features MINNEAPOLIS, June 28 /PRNewswire/ -- ING today announced that it has made significant improvements to its ING TermSmart products, including lowering its pricing, adding an underwriting class, and liberalizing certain underwriting guidelines. ING TermSmart and ING TermSmart*NY are issued by ReliaStar Life Insurance Company and ReliaStar Life Insurance Company of New York. "Our re-entrance into the term market is picking up steam and our competitors are paying attention," said Alan S. Lurty, senior vice president of commodity markets for ING's Life Business Group."Our new pricing along with other improvements to the ING TermSmart products will unquestionably make these among the most competitive term life insurance products on the market." Late in 2005, ING announced that it was looking to significantly increase its term life insurance business with more competitive pricing and the introduction of new products.The company recently announced that it introduced a new instant-issue product through banks and credit unions, and it indicated it will roll out additional term offerings later this year. www.ing.com/us 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. Enwisen Helps W.L. Gore & Associates Achieve 100% Paperless Enrollment by Integrating “Content-in-Context” Communications and Decision Support with PeopleSoft Self-Service June 28, 2006 – Novato, CA – Enwisen, the leading vendor of on-demand HR Communications solutions, announced today that W. L. Gore & Associates, the innovative company that brought products such as ELIXIR® guitar strings and GORE-TEX® fabrics to the world, has successfully deployed Enwisen’s AnswerSource Knowledge Center to achieve a 100% paperless enrollment environment for their nearly 5,000 associates. www.enwisen.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Blue Cross and Blue Shield of North Carolina Experienced Astonishing Growth in 2005 NASHVILLE, Tenn., June 28 /PRNewswire/ -- HealthLeaders-InterStudy, a leading provider of managed care industry intelligence, finds that North Carolina's Blue Cross and Blue Shield plan added 180,000 members in 2005, boosting its membership to over 1 million for the first time. The details of such rapid membership growth, and which specific insurance products drove such growth, is revealed in the new release of Managed Market Surveyor, a healthcare market intelligence product that examines the details of health plan enrollment growth.www.HealthLeaders-InterStudy.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Health Insurers Work With American Board of Internal Medicine (ABIM) to Reduce Physician Quality Data Reporting Burden PHILADELPHIA, June 28 /PRNewswire/ -- Recognizing the need to reduce redundancy in reporting of physician performance data, UnitedHealthcare, Aetna and Horizon Blue Cross Blue Shield of New Jersey will begin incorporating ABIM's Maintenance of Certification program data into their physician recognition and incentive programs over the next several months. This initiative will enable more than 100,000 internists and subspecialists nationwide to more easily qualify for recognition and potential pay for performance rewards, and will create the potential for improvements in health care for millions of Americans. www.abim.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Surgeon General's Report Reinforces Need for Tobacco Tax Initiative in California; Secondhand Smoke a Serious Health Hazard That Can Lead to Disease and Premature Death in Children and Nonsmoking Adults SACRAMENTO, Calif.--(BUSINESS WIRE)--June 27, 2006--Surgeon General Richard H. Carmona released a new report today on the harmful effects of secondhand tobacco smoke. The report, titled "The Health Consequences of Involuntary Exposure to Tobacco Smoke," is the first such report by the Surgeon General's office in 20 years. The 1986 report marked the first comprehensive scientific analysis of the health data surrounding secondhand smoke. The new report builds upon the previous study and reinforces years of scientifically irrefutable evidence on the health hazards of secondhand smoke, calling for continued vigilance in promoting smoke-free zones. (Copies of the report can be found at www.surgeongeneral.gov.) Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. National Health Partners Announces New Membership Growth of over 90% and over 160 New Members Per Day HORSHAM, Pa.--(BUSINESS WIRE)--June 28, 2006--National Health Partners, Inc. (OTCBB: NHPR), a leading provider of unique discount healthcare membership programs, announced today that sales to new members in June have increased by over 90% from the same period in May. National Health Partners, Inc. is a national healthcare savings organization that provides discount healthcare membership programs to uninsured and underinsured people through a national healthcare savings network called "CARExpress." www.nationalhealthpartners.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Donations Being Collected for Bashas' Workers: Health Care Costs Too Much to Handle PHOENIX, June 28 /PRNewswire-FirstCall/ -- For years Bashas' workers have been collecting donations for worthy causes and those in need. Now they need help from the community. On Wednesday (6/28) volunteers will be collecting donations for workers at Bashas'-owned stores [Bashas', FoodCity and A.J.'s]. Contributions will go toward helping employees pay for new, dramatically higher costs of health care coverage shifted to them by the Bashas Corporation. All funds collected will go to Labor's Community Service Agency, 5818 North Seventh Street, #202, Phoenix, AZ 85014 WHAT: Volunteers collecting donations for Bashas' employee's. WHEN: Wednesday, June 28, 2006, 11:30am - 12:30pm WHERE:Corner of N. 3rd Street & E. Van Buren Street, Phoenix Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Willis North America Prices Senior Notes Offering NEW YORK--(BUSINESS WIRE)--June 27, 2006--Willis Group Holdings Limited (NYSE: WSH) announced today that its subsidiary, Willis North America Inc., priced a $300 million public offering of Senior Notes at 6.75 percent due 2016. www.willis.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. LDI, Ltd. Moves 401(k) Plans to New York Life Investment Management WESTWOOD, Mass., June 28 /PRNewswire/ -- The Retirement Plan Services division of New York Life Investment Management LLC (NYLIM), announced today it has been appointed to administer The Retirement and Savings Plan for the employees of LDI, Ltd. LLC, FinishMaster Inc. and Tucker Rocky Distributing. LDI, Ltd., based in Indianapolis, Indiana, is a holding company that owns Tucker Rocky and is the majority shareholder of FinishMaster. www.nylim.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. NAMIC Skewers Consumer Reports ‘Investigation’ of Credit-Based Insurance Scoring INDIANAPOLIS (June 28, 2006) – An article in the August 2006 issue of Consumer Reports that purports to reveal a dark “secret” about automobile insurance premiums actually misleads consumers, according to Neil Alldredge, NAMIC Senior Director of State Advocacy. “It’s common knowledge that insurance companies have been using credit data for years as part of the underwriting and rating process,” said Alldredge.“The Consumer Reports article rehashes false claims and specious arguments that were put to rest long ago after insurance scoring was subjected to rigorous analysis by university researchers and government agencies such as the Texas Department of Insurance.” www.namic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. CPCU SOCIETY 2006 ANNUAL MEETING OFFERS LATEST IN PROPERTY/CASUALTY EDUCATION MALVERN, PA—June 28, 2006— CPCUs can learn about the latest property and casualty insurance topics at the CPCU Society’s 62nd Annual Meeting and Seminars, taking place in Nashville, Tenn., September 9–12. It is the premier professional development event of the property and casualty insurance industry. www.cpcusociety.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. PIANJ and PIANY work to stop endorsements in official mailings, see progress GLENMONT, N.Y.—Since the inception of a controversial move by the Department of Motor Vehicles, the Professional Insurance Agents of New York State Inc. has taken the position that it is improper for the DMV to include ads from automobile insurers, such as GEICO, when it mails out drivers’ auto registration renewals. Sparked by a similar situation in New Jersey, where the state Turnpike Authority instituted a similar program, the Professional Insurance Agents of New Jersey Inc. has initiated a similar counteraction. “When a government agency sends out official documents with advertisements, it could be perceived as an endorsement of the advertiser’s products—which is wrong,” said J. Carlos “Shawn” Viaña, president of PIANY. “PIANY has worked diligently to educate state policyholders about this issue and effect positive change. We are encouraged by recent progress.” www.piaonline.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. Summit '06 Scheduled for September Industry event will provide resources and professional development for life, health and annuity distributors to "Work Smarter. Live Larger." Indianapolis, IN - Insurance agents and agency managers who want to expand their insurance marketing skills are invited to register for Summit '06. Open to all insurance distributors regardless of product line or carrier affiliation The Summit will take place September 25-27, 2006, at the MGM Grand Hotel & Casino in Las Vegas, Nevada. The Summit is an industry-wide professional development conference, organized by Business Media Group. Attendees will benefit from professional speakers and product sales training seminars to boost their insurance income-earning potential. Featured guest speakers include: - Larry Winget, International Hall of Fame speaker, best-selling author of"Shut Up, Stop Whining & Get a Life" and host of A&E's "Big Spender," the financial makeover reality show - Bill Cates, "The Referral Coach," whose articles appear regularly in insurance publications as well as "Success," "Entrepreneur" and "Selling Power" magazines - Dr. Lowell Catlett, back by popular demand, renowned futurist/economist, author and consultant - James Ray, management consultant and highly-acclaimed author of "The Million-Dollar Mindset" The Summit's agenda includes seminars about reaching potential customers and developing relationship- and referral-based sales. Conference speakers will provide tips for recruiting, motivating and retaining a successful sales team, along with tactics to manage time, money and sales resources. There is no registration fee for The Summit. The event's exclusive sponsor, the Conseco insurance companies, will pay for registration fees, food, beverages and training for attendees at The Summit. For full details and to register, interested agents may visit www.summit06.com or contact the event organizer at summit06@businessmediagroup.com. Ron Bendes, senior vice president of health sales for the Conseco insurance companies, said, "The Summit is a cost-effective and information-packed event where agents and agency managers can learn valuable sales strategies. This program is designed to provide practical tips for agents, whether they're seasoned industry professionals or new to the business. "Based on popular demand from last year's attendees, Conseco is pleased to return as the sponsor for this important industry event," Bendes continued. "In fact, Summit '06 has moved to an even larger venue to accommodate the greater response from agents who 'Expect Bigger Things' from Conseco. We look forward to the opportunity to meet with producers representing all products in our industry." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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