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1. USI Holdings Corporation to Be Acquired by Goldman Sachs Capital Partners for $17.00 Per Share in Cash in $1.4 Billion Transaction BRIARCLIFF MANOR, N.Y.--(BUSINESS WIRE)--USI Holdings Corporation (NASDAQ: USIH) today announced that it has entered into a definitive merger agreement to be acquired by GS Capital Partners, a private equity affiliate of Goldman, Sachs & Co., in a transaction valued at approximately $1.4 billion, including repayment of USI’s existing debt obligations. USI’s Board of Directors, on the unanimous recommendation of a special committee, has approved the transaction and will recommend that USI’s stockholders approve the proposed merger. Under the terms of the merger agreement, USI stockholders will receive $17.00 in cash for each share of USI common stock they hold, representing a premium of 20.5% to the average closing share price for the 30 calendar days prior to October 24, 2006, the day USI announced that it had formed a special committee in response to an indication of interest received from a private equity firm in acquiring all of USI’s outstanding common stock. The special committee engaged in a process which included receipt of indications of interest from several potential acquirors, including GS Capital Partners. The transaction is expected to close in the second quarter of 2007, subject to the receipt of stockholder and regulatory approvals and satisfaction of other conditions. David Eslick, USI’s Chairman and Chief Executive Officer, said, “After careful analysis, the special committee and board have endorsed this transaction as being in the best interest of our stockholders. Our new partner is a world-leading private equity firm that believes in our commitment to investing in our people and is committed to working with us to deliver the most value for our clients and customers. USI’s success is driven by the ongoing efforts of our sales professionals and employees. I want to thank them for their efforts and assure them we will remain focused on sustaining profitable growth by delivering outstanding products and services to our clients.” Henry Cornell, a Managing Director at GS Capital Partners, said, “Goldman Sachs has a long and successful record of investing in the financial services industry. We know that the success of our investment will be dependent on the talents and commitments of USI’s employees. We look forward to investing in the continued growth of USI, in this next chapter.” Lazard Frères & Co. LLC is acting as financial advisor, and Dewey Ballantine LLP is acting as legal advisor, to the special committee. Lazard has provided a fairness opinion to the special committee. Goldman, Sachs & Co. is acting as financial advisor, and LeBoeuf, Lamb, Greene & MacRae LLP as legal advisor, to GS Capital Partners. About USI Holdings Corporation Founded in 1994, USI is a leading distributor of insurance and financial products and services to businesses throughout the United States. USI is headquartered in Briarcliff Manor, NY, and operates out of 68 offices in 19 states. Additional information about USI may be found at www.usi.biz. About Goldman Sachs Founded in 1869, Goldman Sachs is one of the oldest and largest investment banking firms. Goldman Sachs is also a global leader in private corporate equity and mezzanine investing. Established in 1991, the GS Capital Partners Funds are part of the firm’s Principal Investment Area in the Merchant Banking Division. Goldman Sachs’ Principal Investment Area has formed 12 investment vehicles aggregating $35 billion of capital to date. For more information, please visit www.gs.com/pia. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Swiss Re Obtains USD 705 Million of Extreme Mortality Risk Protection Through Its Vita Capital Programme NEW YORK, Jan. 16 /PRNewswire/ -- Swiss Re has transferred USD 705 million (denominated in USD and Euros) of extreme mortality risk to the capital markets through its Vita Capital securitisation programme. Swiss Re experienced strong interest in this, its third mortality catastrophe bond, which has been issued privately to institutional investors. Part of the issuance will be used to replace cover provided by Swiss Re's first Vita issuance, which expired at the end of 2006, with the balance providing additional protection against extreme mortality risks. Swiss Re's Chief Executive Officer, Jacques Aigrain, comments: "This securitisation enables Swiss Re to manage peak mortality exposures in a sustainable and capital-efficient manner, and is another example of how Swiss Re is addressing its strategic objective of reducing earnings volatility." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Hannover Re transfers risk to financial markets By Jonathan Gould - FRANKFURT, Jan 16 (Reuters) - German reinsurer Hannover Re (HNRGn.DE: ) on Tuesday shifted more of its risk to the capital markets, which it said would free up capacity to underwrite other profitable catastrophe risks. The world's fourth-largest reinsurer said it had raised the volume of last year's "K5" risk securitisation to $520 million, tapping new and existing investors for an extra $106 million of capital. Hannover Re said it had also extended its traditional protection covers used to protect against peak exposures such as natural catastrophes, adding that this meant there would be no need to use structured covers in the future. "With these latest transactions, we have made our portfolio even more weather-proof," said Hannover Re Chief Executive Wilhelm Zeller in a statement. "We are optimally placed to benefit from the further profitable market opportunities that will open up in worldwide catastrophe business going forward," he added. Hannover Re and other reinsurers like Munich Re (MUVGn.DE: ) have seen big price rises for reinsurance cover in the U.S. property catastrophe market as an after-effect of the devastating series of hurricanes that struck the U.S. Gulf Coast region in 2005. Zeller last week said he expected another "vintage year" in 2007, with return on equity well above 15 percent, after earlier predicting the company would comfortably beat that target in 2006. Alongside the world's biggest reinsurer Swiss Re (RUKN.VX: ), Hannover Re has been active in transferring reinsurance risk to the capital markets, placing 13 securitisations since 1994. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Commerce Bancorp probed by Fed, OCC; profit rises Tue Jan 16, 2007 9:51am ET - NEW YORK (Reuters) - Commerce Bancorp Inc. (CBH.N: ), a fast-growing Northeast U.S. bank, on Tuesday said federal regulators have opened an investigation into transactions involving company officials. The Cherry Hill, New Jersey-based company, which operates mainly in New Jersey, New York and Pennsylvania, also said fourth-quarter profit rose 68 percent, as it began to recover from earnings pressure resulting from a tough interest-rate environment. Commerce said the probe by the U.S. Federal Reserve and the Office of the Comptroller of the Currency "will include but not be limited to transactions with its officers, directors and related parties, including transactions involving bank premises." The company said it is cooperating fully. On November 1, Commerce had said it was no longer being investigated by federal prosecutors in Philadelphia. It had been enmeshed in June 2004 in a municipal "pay-to-play" corruption scandal over the trading of Philadelphia city contracts for cash and gifts. Two former Commerce executives were convicted. © Reuters 2007. All Rights Reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Parker Waichman Alonso Mark, LLP Retained by Hundreds of Hurricane Katrina Victims Whose Insurance Claims Have Been Denied Firm Continues to Evaluate New Cases From Hurricane Victims in Alabama, Florida, Louisiana and Mississippi NEW YORK, Jan. 11, 2007 (PRIME NEWSWIRE) (PRIMEZONE) -- Parker Waichman Alonso Mark, LLP ( www.yourlawyer.com ) announced that it has been retained by hundreds of clients in Alabama, Florida, Louisiana and Mississippi whose insurance claims related to damage caused by Hurricane Katrina were denied. Under state and federal laws, insurance companies are required to resolve claims with their insureds in good faith and with fair dealing. Unfortunately, thousands of insurance policyholders are unable to put their lives back together because of widespread improper damage claim denials. Parker Waichman Alonso Mark, LLP is assisting policyholders whose property insurance claims have been denied, or who have not yet filed a claim but who plan to in the future. The firm is providing legal representation to these policyholders in order to quickly obtain the compensation their insurance coverage provides. If your Katrina-related insurance claim was denied, or if you plan to file a claim, you can request a free case evaluation by visiting http://www.katrinaclaimdenial.com or http://www.yourlawyer.com/topics/overview/Katrina_Insurance_Claims . Case evaluations are also available by calling Parker Waichman Alonso Mark, LLP at 1-800-LAW-INFO (1-800-529-4636). Alabama, Louisiana, Mississippi, and a majority of other states, have laws governing how insurance companies must deal with claimants. In fact, Louisiana makes it mandatory for insurers to make a written offer to resolve a property damage claim within 30 days after receipt of a "satisfactory proof of loss" for the claim. If the insurance company fails to do this, the company may be liable for penalties of up to 25% on the amount due. Other states have similar laws punishing insurance companies that unfairly deny or delay payment on valid claims. "Insurance companies often use their own narrow interpretations of policy language to deny legitimate claims from individual policyholders," said Jerrold Parker, founding partner of Parker Waichman Alonso Mark, LLP. "Unfortunately, the insurance industry has been successful in convincing many claimants that their damage is not covered by their insurance policy. Policyholders should not rely on the conclusions of their insurance company without having their claim and insurance policy thoroughly reviewed by an attorney. Insurance companies tend to treat claimants more fairly when they are being represented by an attorney." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
Workplace Benefits Renaissance 2007 The people and organizations involved in the sales and service of Workplace Benefits have a premier opportunity to network and learn at the Workplace Benefits Renaissance Meeting to be held on the corner of Bourbon and Canal Street in the heart of the French Quarter at the Astor Crowne Plaza Hotel, New Orleans, La. The dates are February 13, 14, & 15, 2007. This will be the 10th Benefits Renaissance Meeting, but the first under the “Workplace Benefits Association” label. Expected attendance is 125 of the leading Workplace Benefit vendors and 800 total workplace benefit consultants. The Members of the Workplace Benefits Association strive to bring an integrated solution through a master plan that involves a standardized employer guide and checklist. This procedure ensures that no important area is overlooked while providing the flexibility for each employer and employee to create an individual solution to their benefits and financial planning. The registration fee for attendees is $299.00, (licensed agents register two for the price of one!) This discount is provided because the 100+ sponsors and exhibitors want to meet with licensed producers. www.workplacebenefits.org 6. PIANH comments on Insurance Department's rule proposals CONCORD, N.H.-The Professional Insurance Agents of New Hampshire Inc. recently submitted comments regarding two rule proposals issued by the New Hampshire Insurance Department. The proposals seek to amend Chapter Ins. 1000: Claims Settlement and Chapter Ins. 3700: Standards for Safeguarding Customer Information. Claims settlement. PIANH supports the changes to Ins. 1000, which are intended to establish separate claims/settlement rules for property/casualty and non-property/casualty insurance, but offered suggestions to clarify the rule. "The proposed rule fails to clearly establish the timeframe in which an insurer must initially inform an insured or claimant that it needs particular documentation or information to make a complete decision regarding a claim," said PIANH President Judy George, CIC. "PIANH suggests new wording to require an initial letter requesting additional information, if necessary, to be sent within 30 days from the date of acknowledgment of the claim. This would avoid an undue delay by the insurer in asking for the outstanding information." Another of the association's concerns with Chapter Ins. 1000 relates to an exception to insurers' requirement to send delay letters. According to PIANH, the proposed rule should be amended to obligate the insurer to send a delay letter within a set number of days from the date the letter requesting additional information or documentation was sent, rather than from the date the insurer receives the requested information. PIANH acknowledges that an insurer's obligation to send delay letters cannot continue indefinitely if the claimant is unresponsive. An appropriate limitation could provide that an insurer may disclaim coverage when the insured fails to provide the requested information within a set amount of time after receipt of the insurer's letter. Safeguarding customer information. PIANH also supports the changes to Chapter Ins. 3700, which incorporate the security breach notification requirements of H.B. 1600. The bill, passed in 2006, requires people engaged in business in New Hampshire to notify customers of any security breach that compromises the confidentiality of their personal information. However, PIANH is concerned with the substance of the notice prescribed by the proposed rule. Although the intent of the section is to provide the aggrieved customer with information that can be helpful in limiting the damage caused by a security breach, the information and recommendations required by this section should come from a credit-reporting agency, not the licensees subject to the rule. For example, the proposed rule obligates the licensee to recommend that the customer review bank statements; describe how to place a fraud alert; and explain how to obtain a credit report. "The rule would be clearer if it required the licensee's notice to advise the customer to contact a credit-reporting agency and ask for further information," said George. "Such a directive will reduce the chance that a licensee mistakenly will provide the wrong information to the customer, as could be expected in the absence of a standardized notice." www.pia.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. THE PCS REVIEW OF 2006 CATASTROPHES AND INSURED LOSSES JERSEY CITY, N.J., January 16, 2007 — In the past year, ISO’s Property Claim Services (PCS) unit identified 33 catastrophe events. Together these events cost insurers an estimated $8.8 billion. PCS also estimates that insurers received 2,272,000 claims for damage to personal and commercial properties and vehicles. Personal lines claims accounted for 58 percent of the total, while commercial lines claims were at 9 percent and vehicle claims at 33 percent. Losses from catastrophe events declined sharply in 2006 but were nonetheless at their sixth highest level since 1997. The frequency of catastrophe events rose last year to its second highest level in a decade. The 2006 hurricane season produced only one storm of catastrophe proportions, Tropical Storm Ernesto, which caused close to $250 million in insured property damage. The National Hurricane Center recently reported that a tropical system that formed in July was not appropriately named as a tropical storm. The storm formed on July 17 approximately 210 nautical miles southeast of Nantucket, Massachusetts. It reached tropical storm strength with winds of 45 miles per hour later that day. It became extratropical the next day. With this storm added to the count, the 2006 season included ten storms. Five of them were hurricanes, with two reaching major hurricane status. These numbers reflect the long-term average for tropical systems. Third-Quarter Update PCS originally reported that the estimate for insured property damage related to seven catastrophes in the third quarter tallied $971 million, at the time the third lowest amount for the period in the last ten years. However, PCS employs a resurvey process through which it measures any development of insured damage over time. As a result, the estimate for insured damage during the quarter has risen to a total of $1.251 billion due to an influx of claims. Even with this updated information, the quarter still ranks as the third lowest in the last decade, following far behind the especially costly hurricane seasons of 2004 and 2005 and the terror attack of 2001. Fourth-Quarter Update The year 2006 ended with six catastrophes identified by PCS in the last quarter. The frequency of events in this quarter tied the six events in 2002 as the most in any fourth quarter since 1998. The estimated insured property damage in this quarter ranks fourth highest since 1998 at $1.19 billion. Three of the six events resulted from severe weather, including wind, hail, tornadoes and flooding. Two of the events were classified by PCS as winter storms, since the perils included freezing, snow and ice. PCS also broke into new territory in the fourth quarter when it assigned a separate serial number for workers compensation claims that can be filed by rescue and recovery workers who toiled at the site of the World Trade Center in 2001. ISO’s PCS unit defines a catastrophe as an event that causes $25 million or more in insured property losses and affects a significant number of policyholders and insurers. www.iso.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. NAMIC ‘Disappointed’ in Judge’s Ruling Against State Farm INDIANAPOLIS (Jan. 12, 2007) - A federal court’s ruling against State Farm Mutual Automobile Insurance Company could ultimately mean higher rates for consumers, according to the National Association of Mutual Insurance Companies (NAMIC). The case, Broussard v. State Farm, is one of thousands of lawsuits stemming from Hurricane Katrina. Despite expert testimony showing damage to the home of Norman and Genevieve Broussard was clearly caused by water — which was not covered by the policy — rather than wind, U.S. district Judge L.T. Senter said State Farm must pay $2.7 million in actual and punitive damages to the couple. “We are disappointed in the decision,” said Robert Detlefsen, NAMIC’s vice president of public policy. “Insurers need to be able to rely on their contract language to determine appropriate rates.” Detlefsen also pointed out that the wording in policies is pre-approved by state insurance regulators. “Changing the terms of a policy after the fact is extremely costly, since insurers have not collected premiums for the additional losses,” Detlefsen said. “If this practice were allowed to become routine, insurers would have to cover the unexpected costs through higher rates on policyholders.” State Farm is evaluating its next steps and will likely appeal the decision. www.namic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. UK's Prudential seeks clarity on inherited estate LONDON, Jan 16 (Reuters) - Prudential Plc (PRU.L: ), Britain's second biggest insurer, says it wants greater clarity on the inherited estate of its long-term fund after a report that it has moved a step closer to distributing excess cash from such 'orphan assets'. "We've said for many years that we're seeking clarity on our inherited estate, but when we've got anything to say we'll come out and say it," a spokesman for Prudential said. Tuesday's Financial Times said Prudential had started looking for someone to represent the interests of policyholders, a key step in the process of any reattribution of what is known as the inherited estate or orphan assets -- money built up in a with-profits fund that is above the amount needed to meet current and future policyholder commitments and other obligations. The money usually acts as working capital for the funds, providing investment flexibility and cushioning investors from a stock market fall. But some insurers have opted to distribute or reattribute the excess money to policyholders. Prudential valued its inherited estate at about 9.7 billion pounds ($19.1 billion) as at the end of June, an increase of 700 million pounds from the end of 2005. But the issue is complex. Prudential said in July it was not considering any distribution of the inherited estate to policyholders or shareholders. But a reattribution of the funds could free up capital held in them for use elsewhere in the group. Policyholders are typically given incentive payments to agree to the company reattributing the funds, with the policyholder advocate taking the lead in negotiating with the firm on clients' behalf as to the size of the payments. Merrill Lynch analysts estimated a reattribution of Prudential's estate could create additional value to shareholders of about 2.5 billion pounds ($4.92 billion), or near 100 pence per share. By 0936 GMT Prudential shares were up 0.4 percent at 723-1/2 pence, outperforming a slightly weaker UK share market (.FTSE: ). Aviva (AV.L: ), Britain's biggest insurer that had an approach for Prudential rejected last year, is considering whether to reattribute surplus assets in two of its funds. Analysts estimate that Aviva could reattribute over 4 billion pounds. And on Monday Hugh Osmond's closed life insurance consolidator Pearl Group said 1 million of its policyholders will share a payout of over 500 million pounds ($980 million) as it starts distributing excess cash. © Reuters 2007. All Rights Reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. PayFlex and Wal-Mart Offer Tracking System for Flexible Spending Account Debit Cards World's Largest Retailer Leads Initiative to Provide Consumer Convenience OMAHA, Neb., Jan 16 /PRNewswire-USNewswire/ -- PayFlex Systems USA, Inc., a leading administrator for employee benefit programs, today announced that Wal-Mart has implemented an Inventory Information Approval System that automatically identifies and verifies "FSA eligible" purchased items at the point of sale. The announcement comes on the heels of a Revenue Ruling by the IRS that requires certain "big box" discountretailers to ensure FSA Debit cards are being used for appropriate FSA expenditures. "This is great news for consumers with Flexible Spending Accounts (FSAs) and for those administrators like us at PayFlex that are required to verify FSA participants are using their money appropriately." said Mark Huber President and CEO of PayFlex. "The fact that Wal-Mart, the world's largest retailer, has embraced this technology means that others will soon follow and will create a more seamless process for consumers." IRS Revenue Ruling 2006-69, which was released back in April 2006, provided further clarification surrounding debit cards and their inability to be used at non-healthcare related merchants unless the merchant has implemented a tracking system by January 1, 2007. More recently, the IRS released Revenue Ruling 2007-2, which provides transition relief and an additional 12 months until December 31, 2007 for the retail world to comply. PayFlex, which processes over a half a billion dollars in annual claims, reported that over 15% of their respective consumer FSA purchases occur at big-box retail locations. "As you can see by the numbers, this is not a small matter and we are very excited about Wal-Mart's leadership in this area to better serve all of our consumers," added Huber.www.payflex.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Use Less, Pay Less: A Simple Concept That Reduces the Cost of Car Insurance Now Available to Michigan and Oregon Drivers Progressive Direct’s Usage-Based Discount Program, TripSense®, Can Help Drivers Save Up to 25 Percent Off Insurance Premium MAYFIELD VILLAGE, Ohio--(BUSINESS WIRE)--Instead of driving to work every day, Yang Zhang walks or bikes to save on gas and other car-related expenses. What he’s doing is simple: By using his car less, he’s paying less to operate it. And now, The Progressive Direct® Group of Insurance Companies, which sells auto insurance directly to consumers over the phone and on the Internet, has a new way for Michigan and Oregon drivers to pay less by using less. It’s called TripSense and it’s an innovative, usage-based discount program that can save drivers up to 25 percent off their premium depending upon how much and when they drive. According to the National Association of Insurance Commissioners, Michigan drivers pay about $980 a year for car insurance, while Oregon drivers pay about $750. With this program, Michigan and Oregon drivers who earn the maximum TripSense discount could save $245 and $188 a year on their insurance bills respectively. www.progressive.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Accounting Reform and the Fallout for Defined-Benefit Plans NEWTOWN SQUARE, PA—“New defined-benefit pension accounting rules are likely to negatively impact financial statements, debt covenants and stock prices, and give plan sponsors the incentive to seek less volatile pension asset allocations. These new accounting rules will only provide additional incentives for managers to freeze, reduce, or terminate defined-benefit plans,” according to Scott E. Stickel, PhD, CPA and James J. Tucker, III, PhD, CPA. This statement introduces their article “New Accounting Rules for Defined-Benefit Pension Plans: Impact and Fallout,” which appears in the January 2007 issue of the Journal of Financial Service Professionals. In the article, Stickel and Tucker dissect the likely effects of Statement of Financial Accounting Standards (SFAS) No. 158, issued by the Financial Accounting Standards Board (FASB), on benefit plans and investment portfolios. Publication of SFAS No.158 marks the completion of phase one of a planned two-phase project by FASB to review and revise long-standing accounting rules for pensions and other postemployment benefits. This phase focuses primarily on moving the funded status of defined-benefit plans from the footnotes to the balance sheet. The authors note that the new accounting rules will require financial advisers to more closely scrutinize the financial health and funded status of pensions, as they are likely to significantly reduce stockholder equity for many companies and increase the volatility of stockholder equity in the future. Since under the new rules, pension plans have an increased and negative impact on stockholder equity, they posit that companies will continue to downsize defined-benefit plans. They note that advisers also need to consider whether their clients are likely to receive promised pension benefits. The authors discuss how SFAS No. 158 eliminates from the balance sheet the “income smoothing” effects of overly optimistic pension assumptions, including treating deferred costs and losses as assets. The impact of transferring such deferred items from net pension assets to stockholder equity is presented in a table. www.financialpro.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Fermat Capital Management, LLC, Chooses AIR’s Catastrophe Modeling Systems for Catastrophe Bond Risk Management BOSTON--(BUSINESS WIRE)--AIR Worldwide Corporation (AIR) today announced that hedge fund manager Fermat Capital Management, LLC (Fermat), has chosen AIR’s catastrophe risk management systems to complement its catastrophe bond investment portfolio management. Fermat, one of the largest investors in catastrophe bonds, has licensed CATRADER®, AIR’s catastrophe risk modeling application, and ALERTTM, AIR’s online real-time loss estimation service. www.air-worldwide.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14.
New Report Links High Credit Card Debt to Medical Expenses NEW YORK, Jan. 16 /PRNewswire-USNewswire/ -- As health care costs continue to rise faster than incomes, families are turning to credit cards to pay for medical care, according to new research by Demos and the Access Project. The public policy groups published the findings today in a report entitled "Borrowing to Stay Healthy: How Credit Card Debt Is Related to Medical Expenses." Based on data from a national survey of low- and middle-income households with credit card debt, "Borrowing to Stay Healthy" illustrates that those who identified medical expenses as a factor in their credit card balances had much higher credit card debt than those who did not. Americans with insurance, the report shows, increasingly find themselves paying unmanageable out-of-pocket expenses for health care-and do not have assets or income safety nets to cover the extra, often significant costs. "Too many working people are piling up debt on high interest credit cards, and risking their financial security, simply because they have the misfortune of getting sick," said Mark Rukavina, Director of the Access Project and co- author of the report. "We can't let this happen in America." Key findings from the report include:
Among the medically indebted, young adults between the ages of 18 and 34 had the highest level of average credit card debt ($13,303) of any age group. Credit card debt levels of medically indebted young adults ($13,303) were also considerably higher than credit card debt levels for non-medically indebted young adults (7,450). The medically indebted are more likely to be called by bill collectors than the non-medically indebted (62 percent versus 38 percent). "American families are running out of options and turning to credit cards to meet necessary medical expenses," said Cindy Zeldin, report co-author and Federal Affairs Coordinator for the Economic Opportunity Program at Demos, "Congress should address this new and serious consequence of our nation's growing health care crisis before more families go into debt, and risk their financial stability, to get the medical care they need." "Borrowing to Stay Healthy" outlines reforms addressing several key factors that will only exacerbate the medical debt crisis in coming years. To view the full report, "Borrowing to Stay Healthy: How Credit Card Debt Is Related to Medical Expenses," visit http://www.demos.org or http://www.accessproject.org; individual case studies are included in the appendix of the report. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. PhRMA Expands Efforts to Help Uninsured WASHINGTON, Jan. 16 /PRNewswire-USNewswire/
-- The Pharmaceutical Research and Manufacturers of America, through its
Partnership for Prescription Assistance (PPA), is expanding its
educational efforts today aimed at making uninsured Americans aware of
programs that are available to help them better afford their
prescription medicines and finding healthcare services in their
community. PhRMA is debuting its 2007 national advertising campaign today featuring television talk show host Montel Williams. The campaign is aimed at reaching those who lack health coverage and informing them of the assistance available through the Partnership for Prescription Assistance. Since April 2005, the PPA has helped more than 3.2 million uninsured and low-income Americans find programs that provide prescription medicines for free or nearly free. The PPA, sponsored by America's pharmaceutical research companies, is the largest private-sector effort connecting low-income, uninsured and underinsured patients to more than 475 public and private patient assistance programs, including more than 180 programs offered by pharmaceutical companies. "In addition, the PPA provides information on nearly 10,000 free healthcare clinics and has connected more than 100,000 patients with clinics and health care providers in their communities," said Tauzin. Patients in need can visit the PPA's easy-to-use Web site (http://www.pparx.org) or call the toll-free phone number (1-888-4PPA-NOW) where trained operators field calls in more than 150 languages. Over 2,500 brand-name and generic prescription medicines are available through participating patient assistance programs. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. New TRAK GAP Analysis Calculator Fills Void in Illustrating Retirement Shortfall to Federal Employees Developed With Input From Leading Trainer on Federal Retirement Benefits PORTLAND, Ore., Jan. 16 /PRNewswire/ -- With the new TRAK-Gap Analysis calculator from Trust Builders, Inc., (formerly known as The Annuity People, Inc.) advisers in the federal retirement marketplace will finally be able to instantly illustrate retirement shortfalls to their federal employee prospects with vivid clarity. Ed Dressel, president of The Trust Builders, said the new gap calculator comes pre-loaded with illustrations for both the Federal Employee Retirement (FERS) plan and the Civil Service Retirement System (CSRS) plan, including calculations for the Federal Thrift Savings Plan (TSP), Federal Employees' Group Life Insurance (FEGLI) and Catch-62. The TRAK-Gap Analysis Calculator was developed with assistance from Federal Employee Benefits Specialists, Inc., a division of the Snow-Cap Agency, which is the leading trainer of financial planners on federal benefits. "We train advisers how to quickly capture a client's benefits portrait, but we haven't had an illustration tool for them to use to quickly and vividly illustrate whether their client was on target for a comfortable retirement or not," said Judy Snow, president of the Snow-Cap Agency. "The TRAK-Gap Analysis Calculator fills that void for our advisers and their clients." The demo can be downloaded at http://www.TRAKCentral.com/downloads.html. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Orange 21 Announces Agreements to Settle Securities Litigation CARLSBAD, Calif.--(BUSINESS WIRE)--Orange 21 Inc. (NASDAQ:ORNG) today announced that it has reached an agreement to settle the consolidated securities class action currently pending in the United States District Court for the Southern District of California against the Company and certain of its current and former officers and directors. The settlement will resolve litigation that has been pending since March 2005. If the settlement is approved by the Court, following notice to the class, $1.4 million will be paid to the class of plaintiffs and for plaintiffs’ attorneys’ fees from proceeds of Orange 21’s directors’ and officers’ insurance. No amounts will be paid by the Company. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Four More Business Health Coalitions to Host HPM Bootcamp Employers Learn to Recapture Profits via Healthier Employees DENVER--(BUSINESS WIRE)--A veritable alphabet soup of regional employer health coalitions from the Midwest and Northern Plains to the Northeast and South will serve their members a unique nationwide series of three-day, intensive training sessions geared toward corporate leaders in search of a hands-on approach to implementing health and productivity management (HPM) strategies. Among those that have just signed on to host HPM Bootcamp, whose first of 18 events will kick off Feb. 20-22, 2007 at the Bethesda Marriott in Bethesda, Md.: St. Louis Area Business Health Coalition (BHC), Buyers Health Care Action Group (BHCAG), New York Business Group on Health (NYBGH), and Georgia Healthcare Leadership Council (GHLC). Similar organizations that previously agreed to host events in their area include the MidAtlantic Business Group on Health (MABGH) in Greenbelt, Md., and Employers Coalition for Healthcare Options (ECHO) in Huntsville, Ala. Featuring university-style learning events with insights from national experts who promote an evidence-based and outcomes-driven focus, HPM Bootcamp will be sponsored by Wyeth Pharmaceuticals, Healthways, Inc. and The Fort Hill Company. HPM Bootcamp is educationally accredited to offer valuable and significant CE, CME and HR credits upon completion of each course. Please see the entire 2007 schedule at www.HPMbootcamp.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Nine Florida Nonprofit Organizations to Receive $651,890 in Grants From the Blue Foundation JACKSONVILLE, Fla., Jan. 16 /PRNewswire-USNewswire/ -- The Blue Foundation for a Healthy Florida, the philanthropic affiliate of Blue Cross and Blue Shield of Florida (BCBSF), has approved $651,890 in grants to be awarded this winter to nine nonprofit Florida organizations that are successfully addressing health care needs in their communities."The grant recipients are reaching Floridians who often do not have access to traditional health care options," said Susan Towler, executive director of The Blue Foundation for a Healthy Florida. "By offering innovative solutions to critical health issues in Florida's communities, each organization is making a difference in the lives of those in the greatest need."www.bluefoundationfl.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
21. DTCC Launches AccuBasis Service to Provide Accurate Cost-Basis Information NEW YORK--(BUSINESS WIRE)--The Depository Trust & Clearing Corporation (DTCC) and NetWorth Services, Inc. have launched a new Web-based information service, called AccuBasis, that provides cost-basis information quickly, accurately and efficiently for a broad variety of financial service firms and their customers. Investors need cost-basis information to properly report gains or losses when filing tax returns and in determining the unrealized gains or loss of a securities position. While researching cost-basis information has traditionally been difficult, time-consuming and expensive, AccuBasis automates and streamlines the research process and delivers accurate, adjusted cost-basis information in a matter of minutes. DTCC and NetWorth formed a strategic alliance in November to offer the service. www.dtcc.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Global 360 to Host Webinar on 'How Insurance Organizations Can Benefit From BPM' DALLAS, Jan. 16 /PRNewswire/ -- Global 360, Inc., a leading provider of business process management (BPM), intelligence and optimization solutions, today announced it will host a Webinar on Wednesday, Jan. 17, to discuss how sophisticated BPM solutions can help insurance companies around the world achieve long-term business process competitiveness. What: Webinar: "How Insurance Organizations Can Benefit from BPM" When: Wednesday, Jan. 17, 2007 - 12:00 - 1:00 p.m. EST Who: John Williams, Senior Vice President, Operations, AIG Small Business, Brian Yost, Business Systems Officer, AIG Small Business Where: To register for the Webinar, please visit: http://www.global360.com/webinar/insurance/ Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Renaissance Life & Health Insurance Company of AmericaSM assumes assets of its Indiana affiliate The acquisition will increase the company’s leverage as a nationwide insurance benefits provider OKEMOS, Mich., Jan. 15, 2007 — Renaissance Life & Health Insurance Company of America (Renaissance America), a member of the Renaissance family of companies, announced today it has assumed all the business of its affiliate, Renaissance Life & Health Insurance Company (RLHIC), which is based in Indiana. “This assumption allows us to provide insurance benefits throughout the U.S. and enhance our product offerings, strengthening our position as a nationwide benefit provider,” said Dr. Phil Wenk, president of Renaissance Holding Company. “We will continue to look for ways to better ensure the health of our members as well as provide them value-added services, like the Renaissance Value Card.” www.RenaissanceFamily.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Artizan and Peachtree Special Risk Brokers Reinvent How Agents Sell Professional Liability Insurance New Website Teaches Agents How to Market and Sell Key Lines of Business. WINDSOR, CT - Artizan Internet Services and Peachtree Special Risk Brokers, LLC today announced the rollout of a new Web resource center for Executive Lines / Professional Liability. The secured site ( www.psreli.com ), jointly developed to educate agents and help them sell this important but complicated line of business, will be operated by the Specialty Resource Broker, Peachtree as part of the value-added collection of services they offer their appointed agents. Marc Dodson, Vice President of the Executive Liability Division for Peachtree, spent years working for both carriers and wholesalers focusing on the professional liability industry. "85% of all Executive and Special Risk policies have a fatal flaw in the coverage," Dodson stated. "These are extremely important lines of business for clients. They open doors to increased coverage rounding and better customer service, but too many agents simply don't understand them and too few MGAs and wholesalers provide enough data to accurately educate their agents," Dodson continued. A survey completed for AUGIE, the ACORD®-User Groups Information Exchange, supports that, indicating that over 60% of licensed agents don't write any type of executive or specialty lines coverage, leaving that market to other agents and brokers. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Esurance Customers Can Monitor Repairs Online SAN FRANCISCO, Jan. 16 /PRNewswire/ -- Esurance, a direct-to-consumer personal auto insurance company, announced its implementation of AutoWatch, a unique Web-enabled system that allows customers to monitor their vehicle's progress throughout the repair process. Esurance feels that its technology-savvy customer base will appreciate the new feature. Gary Tolman, Esurance President & CEO, explained, "Our Web-savvy customers prefer to handle things online, at times when it's convenient for them to do so. With AutoWatch, our customers can see their car's progress 24/7." www.esurance.com www.AutoWatch.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Health Care Leader CIGNA Proudly Donates $1 Million to Help Build Martin Luther King, Jr. National Memorial in Washington, D.C. PHILADELPHIA and BLOOMFIELD, Conn., Jan. 14, 2007 /PRNewswire/ -- CIGNA, a leader in health and related benefits, has donated $1 million to help build a lasting memorial to Dr. Martin Luther King, Jr. in Washington, D.C. The announcement will be made tomorrow on Martin Luther King Day by Harry E. Johnson, Sr., president of the Washington, D.C. Martin Luther King Jr. National Memorial Project Foundation, Inc. www.buildthedream.org www.cigna.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. MEDRISK’S NETWORK OF EXPERT PHYSICAL MEDICINE PROVIDERS EXPANDS INTO 10 ADDITIONAL STATES KING OF PRUSSIA, PA. (Jan. 16, 2007) – MedRisk’s Expert Physical Medicine Provider Organization for workers’ compensation has expanded into 10 additional states. Under the Expert Provider Organization (EPO) arrangement, physical therapists, occupational therapists and chiropractors agree to a unique reimbursement structure based on diagnosis and the chronicity and severity of work-related injuries. This system controls cost through the clinical management of utilization and ensures quality practice standards.www.medrisknet.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Missing From The LTCI Picture: Many More Marketers To Spread The Word On The Need For the Product by John Wane, President, American Independent Marketing, Yakima, Wash., and Lenny Anderson, President, GoldenCare USA, Inc., Plymouth, Minn. Pictures can be seen in different ways. The same is true of the long-term care insurance (LTCI) market. Some view it as a tough market. We see it as vibrant, ever growing, and full of opportunity. With over 111 million seniors and baby boomers, plus millions of young working adults as potential prospects, how could it be otherwise? There is, however, another picture we want you to see. And that is the millions of individuals without LTCI. If you fully understand the problem, we guarantee it will stir your emotions. And we also believe that when people are informed the odds are they may be facing huge long-term care expense in the future without any means to pay for it, they will purchase the LTC coverage they need. But they won’t do anything until someone tells them what those odds are. While there are large numbers of well-educated agents already selling LTCI, the industry needs many, many more of them in order to reach out to those millions of potential prospects who should certainly hear our story. They should understand that our government does not, nor can it, cover the long-term care needs of all our citizens. Yes, Medicaid will cover some long-term care expense, but it is a program for those with little, if any, money or assets. So, it’s doubtful any of your clients or prospects would qualify for Medicaid. And those who already have individual or group health insurance plans are in for a big surprise—their policies will not cover long-term care expense. Nor will Medicare. So, what it all comes down to, excluding the ultra wealthy who choose to self-fund their possible long-term care needs, is that most of the nation’s 111 million seniors and boomers, plus those millions of young working adults, need LTCI. But most of them don’t know that because they’ve never been contacted! Granted, most LTCI agents are doing a superb job in spreading the word about the product, but they can only see a limited number of people on any given day. And the audience for the product is so huge—possibly the largest ever available to the industry—only a small percentage of those needing coverage are being contacted. That’s why we urge those of you who are not currently selling LTCI to add it to your portfolio. But before taking the product into the field, learn all you can about the market, the products, and the people you will serve. There are many valuable information sources—including carriers offering the coverage, the National Association of Health Insurance Underwriters (NAHU), Arlington, Va.; Health Insurance Association of America (HIAA), Washington, D.C.; and insurance marketing organizations specializing in LTCI offering seminars and education courses (including online). When you are ready, begin contacting your current clients and prospects. You may be surprised to find that many of them will be interested to hear what you have to tell them. If you continue to prospect for the coverage with dedication and persistency, we believe you will also be pleased with the amount of new commission and renewal income you will soon be adding to your bottom line. John Wane can be reached at info@AIMforLTC.com. Lenny Anderson can be reached at info@goldencareusa.com. Wane and Anderson together have recruited more than 50,000 producers and conducted thousands of LTC seminars for producers, brokers, and other financial services professionals. Online training is available at http://goldencareusa.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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