House Of Blues Foundation Room reception added to Workplace Benefits Renaissance 2007 schedule! The Foundation Room at HOB New Orleans is a members-only secluded club with unparalleled elegant space for professional and personal entertaining. Attendees of Workplace Benefits Renaissance 2007 will be welcome to participate in a special no-host reception and/or dinner on Tuesday evening, 02/13/07 from 7:00 - 10:00 p.m. If you haven't been to any of the HOB Foundation Rooms, they are extra-special and this will be a great networking opportunity for workplace benefit professionals.
The complete information is available at www.workplacebenefits.org and you can apply for a 1-year complimentary membership if you are interested. There is also a short 6-minute audio of the association's approach to the workplace benefits market. Daily Quote: "Surround yourself with the best people you can find, delegate authority, and don't interfere." - - Ronald Reagan
1. Scruggs Katrina Group and State Farm Take Major Step to Resolve Mississippi Hurricane Katrina Claims State Farm Claims in 3 Coastal Counties Will Be Reconsidered GULFPORT, Miss., Jan. 23 /PRNewswire/ -- State Farm will participate in a court supervised resolution process to reconsider and fully resolve claims from Hurricane Katrina in three Mississippi coastal counties. The process is part of an agreement reached through the settlement of a class action lawsuit against the insurer by families who believe their damage laims were not adequately resolved. This agreement can affect some 35,000 Mississippi families, if approved by the U.S. District Court in Mississippi overseeing hurricane litigation. The agreement is the result of lengthy negotiations between State Farm, the largest property insurer in the state, and the Scruggs Katrina Group. U.S. District Judge L.T. Senter, Jr., who is presiding over hurricane litigation, has been asked to give preliminary approval to the settlement plan. "This agreement can bring prompt and fair relief to residents of the three coastal counties who filed a claim with State Farm," said attorney Richard Scruggs of the Scruggs Katrina Group. "Thousands of families now have a second chance to have their claims reopened and receive money to rebuild," added Don Barrett, an attorney also involved in the negotiations. The process applies to State Farm policyholders -- including homeowners, renters and owners of business properties -- in Hancock, Harrison, and Jackson counties, who experienced property damage as a result of Hurricane Katrina. These policyholders will have an opportunity to have their cases reconsidered and receive speedy payment for losses under the court-supervised program. If, after filing a settlement form and receiving an offer from State Farm under this resolution process, policyholders are not satisfied and reject the offer, they can request arbitration, which unlike mediation is binding and is not subject to appeal for both State Farm and the policyholder. Homeowners will have the opportunity to decide if they wish to participate in this class settlement. The agreement was immediately praised by Senator Trent Lott (R-Miss), himself a State Farm policyholder who suffered homeowner damage as a result of Katrina. "We've been waiting for a development like this. This is good for Mississippi and is so important to people along the Gulf Coast and in South Mississippi in getting on with their lives and rebuilding their homes," said Lott. "This is a big step in the right direction," said George Dale, Commissioner of Insurance for the State of Mississippi. "I'm pleased that this agreement will quickly put money into the hands of those along the Gulf Coast without lengthy litigation." "Our goal has always been to resolve these matters quickly, fairly and efficiently," said Jeffrey W. Jackson, Vice President - Corporate General Counsel, State Farm Insurance. "This settlement offers policyholders who resided in the areas most impacted by the unprecedented storm an opportunity to have their claims reviewed, share any additional information, and, if they choose, have their cases resolved through binding arbitration." State Farm will initiate the resolution process by notifying all policyholders impacted by this agreement. Policyholders will have 60 days to register for participation in the process, which is designed to have participants paid before the end of this calendar year. Richard Scruggs and Don Barrett will serve as lead attorneys for the class action settlement. www.scruggskatrinagroup.com www.statefarm.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Aetna Applauds President’s State of the Union Focus on Health Care Calling it a “good start,” first insurer to support an individual insurance requirement says that ensuring access to high quality care for all Americans should be top domestic priority HARTFORD, Conn.--(BUSINESS WIRE)--Aetna (NYSE: AET), the first national health insurer to support an individual insurance requirement nearly two years ago, expressed support today for elements of the President’s efforts to address the challenge of the uninsured. These efforts, coupled with bi-partisan leadership and proposals from various governors and other thought leaders, dramatically increase the possibility for success. While early in the deliberative and legislative process, the ultimate impact of the State of the Union speech will be a true national dialogue on the most important issue facing Americans of every age and economic circumstance. www.aetna.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Consumer-Directed Wellness Expert Hails President’s Health Care Recommendations Calls for Public Education Campaign on What it Takes for Consumer-Directed Health Care to Succeed CHICAGO--(BUSINESS WIRE)--Health-care recommendations outlined in President Bush’s State-of-the-Union address and expanded upon in documents issued by the White House represent a giant step towards addressing the nation’s health-care cost crisis, but lingering questions remain as to what actually is required to make private health insurance more affordable and increase the number of Americans with health insurance. Arthur C. Carlos, president and CEO of Destiny Health, said the President’s plan to reform the tax code corrects a long-standing inequity. “Up until now Americans who purchased health insurance privately were not allowed the same tax deductions as those insured through employers,” he said. “That was unfair as well as unwise, and the President’s plan to allow a standard deduction for health insurance regardless of how it is acquired will have the important effect of making coverage affordable to many of the 47 million Americans who currently are uninsured.” Carlos also singled out the President’s declaration that “private health care is the best way to meet their (Americans’) needs,” and his call to remember “that the best health care decisions are made not by government or insurance companies, but by patients and their doctors.” www.destinyhealth.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. AAFP Statement on President Bush's 2007 State of the Union Address: 'Bush Pressed 'Restart' On Health Care Reform Discussion' WASHINGTON, Jan. 23 /PRNewswire-USNewswire/ -- President Bush pressed "restart" on the long-stalled national discussion about health care reform tonight. By putting an innovative proposal to expand health care coverage on the table, he joined America's family physicians and other health care providers, industry leaders, governors of both parties and everyday Americans who know that the health care status quo, with ever-increasing costs and numbers of uninsured, is no longer acceptable. We applaud the President's recognition that "the best health care decisions are not made by government, but by patients and their doctors." America's family physicians are always supportive of efforts to expand health care coverage for the people in this country. The President's tax proposal may make it more affordable for some uninsured individuals to purchase health insurance on their own. Reauthorizing the States Children Health Insurance Program will help America take care of our most vulnerable -- children in families of modest means. Investing in a modern health information infrastructure, long an AAFP priority, is an important prerequisite to support quality improvements and reduce medical errors. And passing common sense medical liability reforms, as called for by the President tonight, will help restrain skyrocketing costs and keep good doctors in their practices. These are solid steps that will improve health care in America. America's family physicians call on our elected leaders in Washington to use this opening to consider the fundamental health system reforms that America needs and deserves. The American people will not be well served until every one of us has affordable access to a "patient-centered medical home" provided by a family physician or another primary care doctor. www.aafp.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. NAR Is Encouraged by President's Health Coverage Provision in State of the Union Address WASHINGTON, Jan. 24 /PRNewswire-USNewswire/ -- "Providing health insurance for all Americans working for small businesses or as independent contractors is a priority for the National Association of Realtors(R), and we are pleased to see that President Bush has made access to affordable coverage a cornerstone of his State of the Union address and his 2007 agenda," said NAR President Pat Vredevoogd Combs. With nearly 30 percent of its 1.3 million members unable to obtain affordable health insurance, NAR is committed to working with the president and this Congress to get small business health-care legislation enacted as quickly as possible. Combs, in testimony earlier this month, noted that the self-employed and those who work for the growing number of small businesses that cannot provide employee heath insurance "must not be held hostage by an insurance delivery system that clearly doesn't work for them." NAR, along with other organizations and associations, has advocated legislation that would allow small businesses to band together through their respective trade associations to strengthen the purchasing power and lower the cost of health insurance for their members. "The president has taken a step forward in laying out his health coverage plan, which includes language that will allow small businesses to pool together, strengthen their buying power and cross state lines. There are many details to iron out and differing view points to be addressed, but the good news is the real work starts now," said Combs. http://www.REALTOR.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. USW Rejects Bush Health-Care Proposal Tax Scheme Fails to Expand Coverage for All, Erodes Employer Plans PITTSBURGH, Jan. 23 /PRNewsnwire-USNewswire/ -- Leo W. Gerard, President of the United Steelworkers (USW), said American workers know a raw deal when they hear one and tonight's State of the Union proposal by President Bush of a so-called standard tax deduction for health insurance doesn't set any benchmarks for covering the uninsured while "sticking it to workers who have employer health care coverage." "Congress should reject this plan out of hand," Gerard said. "It not only erodes employer coverage, where two out of three Americans now receive their health benefits, it's a back-door attempt to saddle union workers with a tax for the health care benefits they negotiate through collective bargaining." "This proposal makes it more apparent than ever," Gerard added, "that the Bush Administration doesn't have a clue about how to address the needs of middle class and working Americans, who are being hammered by health care costs running totally out of control." The USW president said Americans are ready for big ideas to the health- care crisis, yet this Administration seems "obsessed with policies that widen the growing gap between the wealthy and the great majority of working Americans." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. BCBSA Response to State of the Union Address WASHINGTON, Jan. 23 /USNewswire-PRNewswire/ -- The following is a statement from Scott P. Serota, president and CEO, Blue Cross and Blue Shield Association: The Blue Cross and Blue Shield Association (BCBSA) applauds President Bush's focus on healthcare during the State of the Union address and his desire to take on two issues facing the American public today -- the rising cost of healthcare and the increasing ranks of the uninsured. Research conducted by BCBSA in the past has found that the uninsured population is diverse and, as a result, requires a multi-faceted approach to increasing the number of Americans with health coverage. Since 2004, BCBSA has advocated a targeted approach to address the varied needs of the uninsured. In addition, BCBSA recently joined with 15 other major healthcare stakeholders as part of the Health Coverage Coalition for the Uninsured (HCCU) in announcing a consensus uninsured proposal. The balanced, bipartisan HCCU proposal combines tax credits and public-program enhancements that, if enacted, would make coverage available to nearly half of the 47 million uninsured in America. HCCU's two-phased proposal would first expand coverage to children and then to adults. BCBSA looks forward to hearing more about the president's proposals and working with the administration and the Congress to pursue meaningful, bipartisan reforms that will improve access to quality, affordable coverage for all Americans. http://www.BCBS.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. AHIP Statement on State of the Union Address WASHINGTON, Jan. 23 /PRNewswire-USNewswire/ -- America's Health Insurance Plans (AHIP) President and CEO Karen Ignagni made the following statement regarding the health care agenda outlined in President Bush's State of the Union address tonight: "We strongly support a level playing field in which individuals can purchase health care coverage with pre-tax dollars. Currently the tax code fails to assist individuals unless they spend in excess of 7.5 percent of their adjusted gross income on health care. Enacting common-sense tax incentives for individuals will go a long way toward helping millions secure and maintain the coverage they need. "This plan also recognizes that states are an essential partner in any program to cover the uninsured. Federal incentives that provide a helping hand to states that tackle this problem are a great way to spur progress. This effort can also encourage states to re-examine costly mandates that limit health plans' ability to offer more affordable coverage options to consumers and employers. "Momentum is building to begin expanding access this year. The President has put forth a bold vision. Leaders in Congress are also thinking big. Now is the time to jumpstart this discussion and we look forward to working with the Administration and the Congress on this issue." More Information on Expanding Access to Health Care Coverage AHIP's Board of Directors last November issued A Vision for Reform, a reform plan designed to give all Americans access to affordable health care coverage. For more information please visit http://www.ahipbelieves.com. AHIP is also a member of the Health Coverage Coalition for the Uninsured and strongly supports its new plan to cover the uninsured. For more information please visit http://www.coalitionfortheuninsured.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. President's Health Care Proposal Fails to Address Children's Health Needs WASHINGTON, Jan. 23 /PRNewswire-USNewswire/ -- The Children's Defense Fund (CDF) today commended President Bush for attempting to address the nation's urgent health care needs in tonight's State of the Union Address. While acknowledging the need to address health care is a refreshing step in the right direction for this administration, CDF President Marian Wright Edelman was disappointed the president failed to address the health care needs of the more than 9 million uninsured children in the United States. "The proposal outlined by the president fails to even address the urgent need to cover the more than 9 million uninsured children and millions more who are underinsured," said Edelman. "Tax deductions do little for most families. The president's plan would force many parents to choose between paying for health care or other family needs. We need to be more direct in dealing with the health care crisis, especially for the sake of our children." Tax deductions can actually erode employer-based coverage, encouraging states to reduce coverage under Medicaid and the State Children's Health Insurance Program (SCHIP). The president's tax deductions could also weaken, not increase, the coverage of children without making health insurance any more affordable for most families. By contrast, a CDF proposal would control costs for low- and middle-income families and provide states with financial incentives to enroll children. Earlier this month, CDF released a plan that would provide health care coverage to all children in America. The full details of CDF's proposal are available at http://www.childrensdefense.org/healthychild. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Health Centers Respond to President Bush's State of the Union Address WASHINGTON, Jan. 23 /PRNewswire-USNewswire/ -- Community Health Centers across the country commend the President for making health insurance coverage a top priority for his Administration, and for calling on Congress to address this matter. We have always maintained that what every American needs and deserves for good health -- in addition to a healthy lifestyle -- is affordable and adequate health insurance coverage AND a regular source of primary health care -- a health care home. That is what Community Health Centers are for 16 million low-income Americans today, and we deeply appreciate the President's support of Community Health Centers over the past 6 years. With bipartisan support from Congress, an additional 5 million Americans have gained access to a health care home at a community health center over that period. We are also very supportive of mechanisms to provide federal support to the states for initiatives to extend affordable insurance coverage to their residents. In fact, we have endorsed a bill, the Health Partnership Act (S. 325/ H.R. 506), which would accomplish that goal. To their credit, the bipartisan sponsors of this legislation have taken pains to ensure that it would enable states to provide both adequate coverage and improved access to primary health care. All that is needed is to fund those efforts. While we have not seen the details of the President's plan, we are concerned that his proposed tax policy changes could unintentionally trigger a serious erosion of current coverage without making health insurance more affordable to most Americans who lack that coverage today. In particular, the tax changes proposed could lead both those who have adequate coverage today, and those who may seek to gain coverage with the tax benefits proposed, to pursue insurance policies that fail to cover crucial preventive and primary health care, which have been proven to be the MOST cost-effective care of all, because they lower the need for specialty care, reduce hospital admissions, and provide a vital, less costly alternative to emergency rooms. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Statement by Shay Bilchik on the President's State of the Union Address WASHINGTON, Jan. 23 /PRNewswire-USNewswire/ -- Following is a statement of Shay Bilchik, president and CEO of the Child Welfare League of America, on the President's State of the Union Address "Each year we wait in anticipation of the President's annual State of the Union address -- looking for leadership, commitment, compassion and an understanding of the needs of America's vulnerable children and most importantly some _expression_ of his willingness to do something about it. Sadly we were again disappointed when no such plan materialized. "While we are pleased that the President has raised the critical issue of expanding access to health care, his narrowly tailored plan falls far short of a comprehensive solution and would undermine crucial federal safety net programs currently providing health care for the poor and uninsured. Proposed changes to the tax code will not benefit the majority of uninsured, as most pay minimal or no taxes. Additionally, the second part of the President's health care proposal could reallocate up to $40 billion thereby eliminating Medicaid funding essential to keeping hospitals open and other providers available to treat large numbers of uninsured children and low-income families. The President has made it clear that no additional federal funding should be used to support his health care proposal, and in doing so, continues to propose policies and regulations which abdicate the federal government's responsibility to ensure a health care safety net for our most vulnerable citizens. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Statement of SEIU President Andy Stern Re: State of the Union Address WASHINGTON, Jan. 23 /PRNewswire-USNewswire/ -- Andrew L. Stern, International President of the largest health care union in North America, released the following statement today regarding President Bush's State of the Union address: "When every man, woman, and child in America has health care, the state of the union will be good. On this and every issue, America's future is not a matter of chance. It is a matter of choice. Unfortunately, the choices the President laid out tonight won't create the new American Dream." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Largest Women's Business Group Survey Finds Entrepreneurs Support Bold Health Insurance Overhaul WASHINGTON, Jan. 23 /PRNewswire-USNewswire/ -- Women Impacting Public Policy (WIPP), a bi-partisan women's business group, last week issued a bi-partisan national survey that demonstrates support for sweeping changes in health insurance. WIPP President and Co-founder Barbara Kasoff, is available to discuss early survey results as they relate to tonight's State of the Union Address. A sample of insightful survey findings are: * A majority of women entrepreneurs believe that businesses should not be the main provider of coverage * 55% of those surveyed believe that passage of health insurance incentives would help reduce the number of uninsured Americans * 62% strongly believe that allowing individuals to shop for health insurance across state lines would result in providing more individuals with health insurance "Access to affordable health insurance is one of the most recurrent and pressing issues for women business owners. This survey validates the need for a bold change," said Kasoff. "By addressing innovative healthcare policies early, WIPP has demonstrated its leadership and the insight that 15.6 million women business owners have on the nation's pulse." WIPP is the nation's largest bi-partisan women's business group with well over half a million members and is the public policy voice in Washington, DC, for 46 Women in Business associations. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Bush Health Plan No Cure, Says Economic Policy Institute WASHINGTON, Jan. 23 /PRNewswire-USNewswire/ -- In tonight's State of the Union Address, President Bush is expected to propose new tax incentives to encourage more Americans to purchase health insurance on their own in the private market. In an analysis just posted to the Economic Policy Institute's website, economist Elise Gould reveals the glaring deficiencies in the administration's proposal: It will further undermine the already eroding system of employer-paid coverage, does little to increase the overall number of people with health coverage, and will -- despite the administration's claims that this is a progressive plan -- continue to put quality health coverage beyond the reach of the Americans who need it most. Policy Memo: http://www.epi.org/content.cfm/pm119 Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Bush Health Ideas Would Help Too Few and Harm Middle Class, Says Group Plan Would Tax Families With High Premium Costs Without Curbing Insurers' Bloated Spending and Discriminatory Practices SANTA MONICA, Calif., Jan. 23 /PRNewswire-USNewswire/ -- Among the domestic themes billed as prominent in President Bush's State of the Union speech tonight is federal health care reform, which he outlined in his radio address Saturday. Unfortunately, his chief solutions are based on tax deductions that would encourage financially strapped families to buy policies that, while they have lower premiums, are likely to leave them deep in medical debt, said the Foundation for Taxpayer and Consumer Rights. Many middle-class families with higher-quality insurance would find themselves subject to a new tax. Bush also called for Congress to allow the sale of degraded "junk insurance" nationwide to individuals and employers, said FTCR. Such a law would weaken patient bills of rights in many states and could leave families owing tens or hundreds of thousands dollars because such policies often do not limit how much patients must pay out of pocket. Bush proposes a tax deduction on individual policies up to $7,500 a year for singles and $15,000 for families. Above that, employees getting coverage through employers above that amount would be taxed. This harms people who pay very high premiums because they are older or ill, as well as businesses with an older or sicker work force. "Call it the cancer tax," said Jerry Flanagan, health director of FTCR. "Bush's scheme leaves out families that can't afford any insurance, and harms people who are charged very high premiums because they may have a job or a health condition that marks them for huge surcharges. In addition, rising insurance costs would, probably within a few years, overtake any tax benefit for families, much as the alternative minimum tax once meant to keep millionaires from evading federal income taxes is now eating into middle-class incomes." All but unnoticed, Bush also signaled that he will make another push for "Association Health Plans" to be sold nationally, overriding and undercutting protections in state patients bills of rights. In his radio speech, Bush said: "We are working to pass Association Health Plans, so that small businesses can insure their workers at the favorable discounts that big businesses get." That statement is far from the whole truth, said FTCR. The measure that Bush favors was defeated in the Senate last year by FTCR and other patient rights groups because although it purports to create a buying pool that would give small businesses more choice and purchasing power in the health care market, it would actually give for-profit health insurers still greater control over price and treatment options. "Insurers could circumvent state health insurance regulation to price employers and families out of their current health plans and replace them with inferior policies," said Flanagan. "Insurance companies would be allowed to sell this junk insurance to individuals and employers at higher rates based on health, occupation, age and where they live, even though this type of discrimination is currently illegal in many states." Such plans often pay far too little to actually cover hospital stays and sophisticated treatments for serious illness, and they fail to limit what patients pay out of pocket, unlike almost all group policies sold today, said FTCR. Dana Christensen of Playa Del Rey, California, was featured in a 2006 PBS "NOW" expose of such junk insurance. She bought an "association health plan" after being told it would cover medical catastrophes and was left with nearly half a million dollars in unpaid medical bills when her husband, Doug, died of bone cancer. "Awareness and debate of the desperate need for health reform must lead to actually covering people who can't afford the greed-driven private insurance market," said Judy Dugan, research director of FTCR. "Bush's own Treasury Department states that only 5 million of the nation's 47 million uninsured people might gain coverage under this tax proposal, and we doubt even that figure. Even worse, people who now have good insurance will pay a tax penalty, one that grows as medical inflation overtakes their tax deduction. And in a desperate search for insurance they can afford, people will have to buy junk policies that don't begin to cover their costs when they fall seriously ill." FTCR believes that any broad health reform must start with reining in, not encouraging, the unfairness and bloated finances of insurers and HMOs. Specifically, FTCR says insurers must: * Take all comers rather than denying policies based on health history, occupation and even medications taken, as they now do in the individual market in California and many other states. Currently, applicants may be denied for something as minor as taking Lipitor, a common cholesterol drug, and their policies are often rescinded later for minor, even inadvertent omissions on a complex insurance application. * Price policies on broad community characteristics rather than individual health status. This is known as community rating, sharing risk in a large population rather than cherry-picking individuals likely to cost insurers little or nothing. * Submit health insurance rate changes to public review and approval of regulators, to prevent administrative waste and profiteering that make insurance premium increases the biggest driver of medical inflation. California already conducts such reviews of auto insurance under Proposition 103, saving motorists billions of dollars, without effect on the competitiveness and availability of such insurance in the state. Unless insurance companies' spending is curbed, the rest of the medical industry has little reason to examine its own pricing practices. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. AHIA BACKS REFORMATION NOT REPLACEMENT FALLS CHURCH, VA — The Association of Health Insurance Advisors (AHIA), the health insurance division of the National Association of Insurance and Financial Advisors (NAIFA), applauds the President’s call for reliance on the private health insurance market in his State of the Union Address. “AHIA has long supported tax incentives for individuals and was pleased to hear the President include them in his January 23rd address” states AHIA President, Lawrence E. Lounds, CLU, ChFC, LUTCF. “Affordable Choices” grants designed to give states flexibility to get private health insurance to those most in need as well as the encouraged expansion of Health Saving Accounts (HSAs) were both of interest to AHIA. “Providing Federal incentives to assist states in addressing the uninsured – especially encouraging states to re-examine expensive benefit mandates – is a favorable means of expanding affordable coverage to consumers and employers” continues Lounds. AHIA actively supports efforts to make health insurance more affordable and accessible. AHIA continues to believe that a reformed private health care delivery system is the best means to ensure choice, quality and affordability. “Reformation not replacement is what we need” concludes Lounds. AHIA is hopeful we can move the debate to consensus and action and looks forward to working with the Administration and Congress on improving our nation’s health care delivery system. www.naifa.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Florida Lawmakers’ Efforts to Appease Homeowners Could Have Chilling Effect, NAMIC Says INDIANAPOLIS (January 23, 2007) - Legislation designed to bring rate relief to Florida homeowners may ultimately have the opposite effect, according to the National Association of Mutual Insurance Companies (NAMIC). The 167-page package passed yesterday evening and is expected to be signed by Governor Charlie Crist. NAMIC supports a provision in the bill that eliminates the “Panhandle exemption” to the statewide building code to make it a code that is truly enforced statewide. However, there are several serious concerns about the situation going forward. Rather than solving the state’s insurance crisis, the bill will more likely serve to increase rates in the future because there will be less competition in the market. It would also put Florida taxpayers on the hook for storms in the near future. WWW.namic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. WellPoint profit jumps 23 percent NEW YORK, Jan 24 (Reuters) - Health insurer WellPoint Inc. (WLP.N: 012507) said on Wednesday profit rose 23 percent, in line with estimates, on strong enrollment in its national accounts and tighter controls on administrative expenses, although medical cost trends worsened. Shares of the company, which ranks No. 1 in membership in the U.S. market, dipped as much as 3.9 percent after WellPoint cited issues with several government businesses for its worse-than-expected medical cost ratio. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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21. Federal Court Rules that City of Sterling Heights Is Entitled to $10.33 Million to Indemnify a Settlement Without Needing to Prove the Precise Value of Covered and Uncovered Settled Claims Sterling Heights, MI (January 23, 2007) - In a written opinion issued January 19, 2007, United States District Court Judge Nancy G. Edmunds of the Eastern District of Michigan has ordered United National Insurance Company to pay the City of Sterling Heights over $10 million for coverage claims arising out of a $31 million March 2004 settlement with Hillside Productions, Inc., owners/operators of the Freedom Hill Amphitheatre located in Sterling Heights. Judge Edmunds has set a March 23, 2007 trial date for the City's remaining claims, including the City's claim that United National breached the covenant of good faith and fair dealing in its handling of the City's claim. Judge Edmunds had previously determined that United National's insurance policies provided coverage for the Freedom Hill dispute. The new ruling settles a disagreement over various methods that could be used to determine the amount of United National's liability. The decision follows settlements totaling $18,750,000.00 with two other insurance companies which insured the City. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Atlantic Mutual Earns Top Spot In 2006 New York Auto Insurance Report New York (January 23, 2007) – Atlantic Mutual earned the top spot for having the lowest rate of auto insurance consumer complaints in a report issued December 2006 by the New York State Insurance Department. The ranking is based on the ratio of upheld complaints to premiums in 2005. Atlantic Mutual had zero complaints upheld. Among all companies included in the report over the past five years, Atlantic Mutual has had the fewest total number of upheld complaints. “What you’re seeing is our emphasis on service for Atlantic Master Plan policyholders,” noted Dan Olmsted, president of Atlantic Mutual. “The consumers we serve in the affluent personal lines market often have complex needs and substantial assets to protect. They demand quality service, and we deliver, from the needs assessment—by the independent agents that represent us—all the way through to claim settlement. The high ranking is independent proof of our excellence, and it reflects the outstanding service we provide in all our states.” Each year, New York State investigates thousands of complaints from auto insurance consumers and decides which are of merit (“upheld”). The annual auto complaint ranking is considered by the New York State Insurance Department as a tool consumers can use to evaluate competing insurance companies. For more information, visit www.ins.state.ny.us. About Atlantic Mutual Atlantic Mutual offers property-casualty insurance products for individuals with substantial assets to protect. Its flagship product is the Atlantic Master Plan. The Atlantic Mutual Insurance Co., formed in 1842, is a mutual insurance company owned by its policyholders. Its products are sold through independent agents. Additional information about Atlantic Mutual can be found at www.atlanticmutual.com or www.AtlanticMasterPlan.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Euler Hermes ACI Acquires United Mercantile Agencies (UMA) January 23, 2007 (OWINGS MILLS, MD) – Euler Hermes ACI, North America's leading provider of trade credit insurance, has announced the acquisition of United Mercantile Agencies (UMA), a leader in commercial collections and accounts receivable management services. UMA was founded in 1917 and is headquartered in Louisville, KY with regional offices in White Plains, NY and San Francisco, CA. Employing more than 100 associates, the company offers a suite of receivables management services that include commercial third party collections, receivables management outsourcing, international collections, and other debt mitigation services. Euler Hermes ACI is North America's oldest and largest provider of trade credit insurance and risk mitigation solutions. The company protects and insures more than $125 billion in U.S. trade transactions annually. For more information about Euler Hermes ACI, visit www.eulerhermes.com/usa www.unitedmerc.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. CPCU SOCIETY RELEASES RESULTS OF MEMBER POLL ON INDUSTRY’S FUTURE AND ITS EFFECT ON CAREERS MALVERN, PA, JANUARY 23, 2007—The CPCU Society—the professional association for more than 26,000 chartered property casualty underwriters—released the results today of a November survey of its Member Opinion Panel. In this first survey of a two-part series on insurance career outlooks, members of the Panel were asked for their views on the industry’s future, and what any impending changes would mean for their careers. In the poll of 181 CPCU Society members, panelists were asked to rate the likelihood that they, and their segments of the business, would experience the following: · Continued consolidation of the financial services industry, resulting in fewer independent insurance organizations, more insurance companies owned by non-insurance entities, and more cross-selling of insurance and other financial products; · More regulatory pressures, compounded by a growing risk of class action litigation; and · Greater integration of productivity-enhancing technology into day-to-day insurance operations, such as the use of the Internet for direct marketing and call centers for customer service. The Web-based survey results show that 97 percent of the CPCU Society respondents feel they are well prepared to handle the industry’s changes, based on their training and experience. However, these Society members are concerned about the preparedness of their industry to deal with the upcoming wave of retiring Baby Boomers. Combined with a projected shortfall in the number of new entrants with the necessary technical and subject skills, 66 percent of survey respondents foresee an “experience gap” as very likely to form in the next five years if nothing is done. Their suggested countermeasures include more aggressive recruiting efforts; improved training; retaining retiree capital via consulting, mentoring, and flexible scheduling; more competitive compensation and benefits; and enhanced positive visibility for the industry and its career options. “It’s become very clear that education of its employees will be critical to the success of the industry’s future,” says Betsey L. Brewer, CPCU, 2006-2007 president of the CPCU Society. “Employers must recruit the best and brightest, especially applicants who hold a professional designation, like the CPCU, and/or have significant industry experience,” she says. For detailed results of this CPCU Society Member Opinion Panel survey, go to the Society’s web site at www.cpcusociety.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. America Tops 11 Countries in Retirement Savings AXA's Global Retirement Scope Survey Reveals Americans Lead in Retirement Savings but Lag in Pension Security January 23, 2007 – The U.S. leads the world in saving for retirement according to a global retirement survey by AXA Equitable, an AXA Group company. U.S. workers save on average $696 a month for retirement, more than double the amount saved by workers in Germany, Italy and France, and nearly 10 times the amount saved by workers in China. Eight of 10 working Americans surveyed have already started saving for retirement. Americans are well positioned when it comes to retirement. Out of 11 countries surveyed, with more than 6,900 respondents, U.S. retirees are happiest, travel the most, receive the highest income, save the most for retirement, have the highest percentage of home ownership and believe they have the best financial situation. The average age to begin saving was a mere 30 years old in the U.S., a good sign for a population that doesn't see old age occurring until age 81, up from 79 in last year's survey. Most retirees started their retirement at age 58, leaving a long period to enjoy life and devote time to themselves and others. To access the entire survey conducted by AXA Equitable, go to www.axaonline.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Kingsway announces the acquisition of Mendota Insurance Company TORONTO, Jan. 24 /PRNewswire-FirstCall/ - (TSX:KFS, NYSE:KFS) Kingsway Financial Services Inc. ("Kingsway") today announced it has reached a definitive agreement to acquire Mendota Insurance Company ("Mendota"). Mendota is a wholly owned subsidiary of The St. Paul Travelers Companies, Inc. The transaction includes Mendota's wholly owned subsidiaries, Mendakota Insurance Company and Mendota Insurance Agency, Inc. The transaction is scheduled to be completed following receipt of regulatory approvals. Terms of the transaction were not disclosed. It is anticipated that the purchase price will be funded through internal sources, a portion of which may include Kingsway's existing undrawn credit facilities. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. INSURANCE NEWSLINK Articles Recent articles added to INSURANCE
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Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. NEW EXPERT COMMENTARY FROM IRMI.COM There are now over 800 risk management and insurance articles on IRMI.com.Below you'll find summaries of some recent additions with links to the articles. PERSONAL AND ADVERTISING INJURY LIABILITY COVERAGE IN THE CGL (Part 1) - Craig Stanovich examines Coverage B of the CGL. Part 2 will discuss applicable exclusions. http://www.irmi.com/Expert/Articles/2007/Stanovich01.aspx MOLD IS NOT COVERED AS AN ENSUING LOSS OF LEAKING WATER - Kent Holland relates a Texas case holding no coverage for an excluded category of loss that follows from a covered loss. http://www.irmi.com/Expert/Articles/2007/Holland01.aspx INSURANCE AGENT LIABILITY IN KATRINA LITIGATION - Dr. Tim Ryles looks at standards applicable to agent liability, particularly as respects advice given on flood insurance. http://www.irmi.com/Expert/Articles/2007/Ryles01.aspx WRAP-UPS AND THE ISSUE OF COLLATERAL (Part 1) - Rich Resnick looks at some technical issues regarding what collateral is and the reasoning behind why underwriters require it. http://www.irmi.com/Expert/Articles/2007/Resnick01.aspx NATURALLY OCCURRING HAZARDS CAN BE "HAZARDOUS" TO CPL COVERAGE - Buying a CPL policy is a very sound alternative for financing environmental loss, but there are pitfalls. Jeff Slivka explains. http://www.irmi.com/Expert/Articles/2007/Slivka01.aspx INSURANCE FRAUD FAILS IN L.A. SUPERIOR COURT - Barry Zalma relates the importance of insurer preparation, a thorough investigation, and use of competent counsel when facing a potentially fraudulent claim. http://www.irmi.com/Expert/Articles/2007/Zalma01.aspx Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Aetna Introduces New Plans in Northeastern Pennsylvania KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Aetna (NYSE: AET) announced today that it has received state approval to begin offering a new portfolio of HMO-based and PPO-based health plans in 13 Northeastern Pennsylvania counties, effective April 1. Aetna provides health benefits to more than 1 million members in Pennsylvania. www.aetna.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. Texas Department of Insurance, Division of Workers' Compensation Selects The Medical Disability Advisor to Optimize Return-to-Work Outcomes for Employers WESTMINSTER, Colo., Jan. 23 /PRNewswire/ -- The Texas Department of Insurance, Division of Workers' Compensation adopted its final rule on December 29, 2006 establishing the state-wide adoption of return-to-work guidelines; the DWC selected Reed Group's The Medical Disability Advisor: Workplace Guidelines for Disability Duration, Fifth Edition, by Presley Reed, MD. This rule establishes that beginning May 1, 2007, health care providers will be required to use The Medical Disability Advisor return-to-work guidelines (MDA) when providing non-network health care to injured or ill employees in the workers' compensation system. Serving one of the nation's largest workers' compensation markets, the adoption of the MDA guidelines for Texas will optimize return-to-work outcomes for employees in a medically appropriate timeframe. To obtain additional information on the MDA return-to-work guidelines in Texas, visit http://www.rgl.net/states/Texas.aspx. www.reedgroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. New Ethics Rules Mean Some CEOs Will Be Hunting for a New CPA, Says GROCO's Olsen FREMONT, Calif.--(BUSINESS WIRE)--The following is an opinion editorial provided by Alan L. Olsen, CPA, MBA, Managing Partner of Greenstein, Rogoff, Olsen & Co.: The relationship between a chief executive and his accountant is an extremely important one. An outside accountant can be one of your most trusted business advisors and a key to your success. That’s one of the reasons why a new initiative by the Public Company Accounting Oversight Board (PCAOB) is creating a stir in the offices of CEOs across the land. Established by the Sarbanes-Oxley Act, the PCAOB is charged with establishing rules for — among other things — auditing, quality control, ethics, and independence. In April of this year the PCAOB issued a set of seven rules for auditors of public companies. Though focused primarily on tax services, these rules also address ethics and independence. The Rule in Question Rule 3523 is entitled “Tax Services for Persons in a Financial Reporting Oversight Role.” In a nutshell, this rule states that an audit firm must maintain its independence by not providing tax services to any person in an audit client firm who fills a “Financial Reporting Oversight Role” (FROR). In layman’s terms, this means that CEO’s, CFOs, controllers, and others cannot have the company’s CPA firm do his or her personal taxes, or those of his spouse or dependents. Using the same firm to perform both services would create at minimum the appearance of a conflict of interest. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. PCMA: Part D Plans Projected to Save Seniors, Medicare Program $469 Billion over Ten Years WASHINGTON, Jan. 23 /PRNewswire-USNewswire/ -- Medicare prescription drug plans (PDPs) achieved higher-than-expected savings of 29 percent during 2006 and are on track to save Medicare and its beneficiaries $469 billion over the 2006-2015 period if current performance is maintained, according to a new analysis from PricewaterhouseCoopers (PwC) released today by the Pharmaceutical Care Management Association (PCMA). To build on the success of Part D, PCMA also outlined a four-point plan for reforms that could generate additional savings for working families, seniors, and private and public programs. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 33. Aon Reinforces Commitment to Large Global Companies and the London and Bermuda Markets CHICAGO and LONDON, Jan. 23 /PRNewswire-FirstCall/ -- Reinforcing its commitment to large global companies and the London and Bermuda markets, Aon today announced a series of changes that will simplify its organization and greatly enhance the company's world class global risk management and insurance brokerage capabilities. To help bring to clients all its global capabilities within a single unified service platform, Aon has announced the creation of a new business unit to be called Aon Global. Aon Global will consist of the company's former Global Large Corporate business unit, Captives Services Group, International Risk Management Group (IRMG), Risk Consulting and Risk Engineering business units among others. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 34. MIB Life Index Reports North American Life Insurance Activity Off 6.5% in December Applications down 3.8% in 2006 WESTWOOD, Mass., Jan. 24 /PRNewswire/ -- Applications for individually underwritten life insurance in North America were off -6.5% in December, year- over-year, according to the MIB Life Index(SM). This marks the tenth consecutive month where 2006 activity was below that of the same month in 2005. Overall, 2006 application activity trailed that of 2005 by -3.8%. Coupled with declining years in 2005 (-3.3%) and 2004 (-2.3%), the industry is experiencing a three-year decline of -9.0% in applications for individually underwritten life insurance. www.mib.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 35. ACA Capital Granted License to Conduct Investment Management Business in UK NEW YORK--(BUSINESS WIRE)--ACA Capital Holdings, Inc. (NYSE: ACA) today announced that its wholly-owned subsidiary, ACA Capital Management (U.K.) Pte. Limited, has been granted a license by the Financial Services Authority to provide investment management services in relation to collateralized debt and loan obligations in the United Kingdom. This license authorizes the company to manage these pooled assets to market counterparties and intermediate customers throughout the United Kingdom. www.aca.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 36. Mutual of Omaha Policies Now Available Online OMAHA, Neb.--(BUSINESS WIRE)--Mutual of Omaha has launched a Web site where consumers can receive information on insurance, free rate quotes and purchase a variety of Mutual of Omaha insurance products – all online. The site, www.mutualofomahabuyonline.com, is a one-stop shop for consumers who prefer a less-traditional avenue for purchasing insurance. “We recognize that some people are not only comfortable with researching online, they actually prefer to purchase online, too,” said Tom Graham, senior vice president of Direct-to-Consumer Marketing at Mutual of Omaha. “We want to provide access to our products that serves the consumer when, where and how they choose.” The site currently offers accidental death insurance, cancer insurance as well as adult and juvenile life insurance through Mutual of Omaha and its life insurance affiliate, United of Omaha. www.mutualofomaha.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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