Daily Quote: However beautiful the strategy, you should occasionally look at the results.” - - Winston Churchill (British Orator, Author and Prime Minister during World War II. 1874 - 1965) Miss. AG Hood plans to stop State Farm cutbacks NEW YORK, Feb 16 (Reuters) - Mississippi Attorney General Jim Hood said that he would propose state legislation that would stop State Farm Mutual Automobile Insurance Co. from refusing to write new homeowner policies in the state. In a press conference on Friday Hood called the nation's largest home insurer a "robber baron" that committed "decadent actions." (Reporting by Ed Leefeldt, editing by Martin Golan; edward.leefeldt@reuters.com; Reuters Messaging: edward.leefeldt.reuters.com@reuters.net; +1 646 223 6315) (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 1. U.S. Department of Labor Announces $2.5 Million Competition for Long-Term Care Training WASHINGTON, Feb. 16 /PRNewswire-USNewswire/ -- The U.S. Department of Labor's Employment and Training Administration (ETA) today announced a grant competition for approximately $2.5 million to be invested in training for the healthcare industry's long-term care sector under the President's High Growth Job Training Initiative. "Frequent medical advances and the graying of America are signs that the future of healthcare increasingly lies with the caring professionals who work in long-term care," said Assistant Secretary of Labor for Employment and Training Emily Stover DeRocco. "In regions throughout the country, the workforce investment system stands ready to partner with and respond to the needs of long-term care providers." Awards made through this competition will support industry-driven training solutions that address the long-term care sector's workforce challenges. Chief among them are high turnover rates and the need to build a pipeline of skilled workers for the future. Each solution must take place as part of a regional strategic partnership among long-term care employers, education and training providers, and the workforce investment system, as well as other public and private sector partners who bring critical assets to the table. Proposed solutions should take full advantage of promising workforce development models, practices, and tools. Solutions must either take an existing model or approach to scale in the region or adapt a solution that has been demonstrated to have positive impact in another region. A competitive solicitation for grant applications (SGA) appears in today's edition of the Federal Register and can be accessed online through http://www.doleta.gov/sga/sga.cfm. Prospective applicant conferences will be conducted on March 5, 2007. The competition for grants will remain open through April 5, 2007, with awards to follow. For more information on the Department of Labor's employment and training programs, please visit http://www.doleta.gov. The President's High Growth Job Training Initiative is a strategic effort to better prepare workers to take advantage of opportunities in high growth sectors of the American economy. Working with industry leaders, critical workforce gaps and issues are identified and solutions are created in cooperation with employers, educational institutions and the public workforce system. For more information, please visit http://www.doleta.gov/BRG/JobTrainInitiative/. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Court Rejects Insurance Industry Attack on Garamendi Good Driver Regulations SANTA MONICA, Calif., Feb. 15 /PRNewswire/ -- In a Thursday decision, a Sacramento Superior Court rejected an insurance industry attack on good driver regulations adopted by Insurance Commissioner Garamendi last fall. Insurance companies filed a lawsuit to block the regulations, which implement 1988's Proposition 103 requirement that insurers base auto insurance premiums on a motorist's driving record rather than where he or she lives. Garamendi issued the rules after three years of public hearings and study in response to a petition by consumer and community groups. Consumer advocates say that by forcing insurers to comply with the new regulations, this ruling will protect good drivers throughout California who have been overcharged due to the unfair ZIP code rating scheme allowed under the old rules, which were developed by disgraced former Insurance Commissioner Chuck Quackenbush. Although the insurers' lawsuit asking the Court to block Garamendi's rules claims that the rules could not be implemented fairly, some insurance companies have already filed rating plans with the Department of Insurance that comply with the new rules. In July, Auto Club of Southern California adopted a new pricing formula and USAA announced in August it was complying with the new rules. In both instances, the companies announced that the vast majority of their customers would also see rate decreases. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Disappointed By California Ruling, AIA Considers Legal Options SACRAMENTO, Feb. 16, 2007 – The American Insurance Association (AIA) issued the following statement in response to yesterday’s ruling by Sacramento Superior Court Judge Loren McMaster to grant the motion for summary judgment in the case of AIA vs. Garamendi. The following statement can be attributed to Ken Gibson, vice president, AIA Western Region. “While disappointed with Judge McMaster’s ruling today, the fact still remains that the substantive merits of this case have yet to receive a full hearing in court. The fact also remains that as the regulations in dispute are more fully implemented, the unfair and arbitrary impact on thousands of auto insurance policyholders will be increasingly revealed. Once implemented, these regulations will force rural and suburban drivers to subsidize urban drivers that present a higher risk. Going forward, AIA will assess its options and determine the course of action which is in the best interests of policyholders.” www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Blue Shield of California Calls Realtors' Lawsuit Frivolous 'You can call it a spare bedroom all you want, but it's still a closet' SAN FRANCISCO, Feb. 15 /PRNewswire/ -- Blue Shield of California responded today to a lawsuit by the California Association of Realtors, issuing the following statement by attorney Steve Madison of Quinn Emanuel Urquhart Oliver & Hedges, LLP. "Instead of trying to get into compliance with the terms of their contract, the Realtors Association is trying to intimidate Blue Shield by filing a frivolous lawsuit and trumpeting it in a press release filled with outrageously over-the-top distortions. But the truth will always win out in the end -- no matter how many times you call something a spare bedroom, at the end of the day it's still a closet. Here are the facts we're looking forward to presenting in court: Fact #1: There's only one way to count -- CAR's lawyers are spinning novel theories concerning the requirement that 75% of participating members sign up for a Blue Shield plan. But the law and the contract are crystal clear that the relevant numbers are the number of members signing up with Blue Shield and the number of members getting any health plan through the Association. On that basis, CAR is at less than 75% participation with us, and in violation of the contract. Fact #2: It's not even 'he said/she said' -- We know that our numbers are right, because CAR gave them to us themselves. This action was triggered by the Association voluntarily informing us last fall that their participation was below 75%, and subsequently providing us with documentation that confirmed it. Fact #3: No one is losing their health coverage -- Every CAR member who had coverage with Blue Shield should be able to get uninterrupted coverage through CAR, Blue Shield or another health plan guaranteed. In addition to other coverage options provided by CAR, everyone who has had coverage from Blue Shield should be legally entitled to Guaranteed Issue healthcare coverage in two ways: (1) from any California carrier in the small group market if the employer is a small group under California law, or (2) from any carrier in the individual market, including Blue Shield. The Realtors are trying to sell their story without anyone looking too closely at the details. But this case just isn't going to pass a reasonable inspection." CONTACT: David Seldin, Director of Corporate Communications, 415-229-5366, david.seldin@blueshieldca.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Fitch Survey: Slowing Economy Top Concern of U.S. Fixed Income Investors Fitch Ratings-New York-13 February 2007: Institutional fixed-income investors have grown less confident about U.S. credit market conditions over the past six months, with weak overall economic activity, higher corporate leverage, and shareholder-friendly activities cited as top concerns, according to a survey conducted by Fitch Ratings together with the Institutional Investor Fixed Income Forum. While opinions varied across U.S. asset classes and sectors, investor views of emerging market conditions were notably less negative than six months ago. Economic weakness jumped to first among macroeconomic factors cited as being a high risk to U.S. credit markets, a reversal from its last-place showing in the June 2006 survey. Against the backdrop of weaker economic fundamentals, institutional investors are expecting no let-up in the trend toward higher corporate leverage. In fact, 88% of respondents to the December survey anticipate corporate leverage will increase over the next 12 months, up from 77% in June. Concerns about shareholder-friendly activities, including leveraged buyouts (LBOs) and mergers and acquisitions (M&As), also increased. A full 59% of respondents ranked shareholder-friendly activity as a high-risk concern, well above the 31% garnered by the next nearest risk factor. In addition, 83% of respondents expect higher default rates over the next 12 months, up from 60% in the previous survey. 'Insight into investor views is critical in assessing credit availability. The results of this new survey offer a fresh look at evolving investor sentiment at a particularly important point in time when the credit cycle is expected to enter a more mature and less benign phase' said Mariarosa Verde, Managing Director, Fitch Credit Market Research. The full survey results and analysis can be found in the report 'Weak Economic Activity Moves to the Forefront of Credit Investor Concerns,' available on the Fitch Ratings web site at www.fitchratings.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. AIA APPLAUDS CONGRESSIONAL INTRODUCTION OF STATE INSURANCE REGULATION BILL WASHINGTON, D.C., Feb. 16, 2007 – The American Insurance Association (AIA) saluted yesterday’s U.S. House Financial Services Committee introduction of the "Non-admitted and Reinsurance Reform Act of 2007" (H.R. 1065) as a good step toward modernizing state insurance regulation. The legislation would apply single-state regulation and uniform standards to surplus lines brokers in the specialty insurance market, also referred to as the "non-admitted" market. "AIA is strongly committed to reform of the current state-based regulatory system including the "Non-admitted and Reinsurance Reform Act of 2007," said Drew Cantor, AIA vice president and director, federal affairs. "We also support comprehensive reform through an optional federal charter (OFC) and we look forward to reintroduction of vitally important OFC legislation in both chambers this year. We believe that comprehensive reform of the current regulatory regime is critically needed." "Surplus lines brokers and admitted insurance companies share the same frustrations with doing business in inconsistent and disparate regulatory systems," Cantor continued. "The reforms in this legislation aim to improve availability for customers in this market segment." The bill also contains reinsurance provisions which charge the ceding insurer’s home state regulator with making the so-called "credit for reinsurance" determinations. It also would prohibit state insurance regulators from applying its laws to reinsurance agreements of ceding insurers domiciled in other states. Cantor expressed appreciation toward bill sponsors U.S. Reps. Ginny Brown-Waite (R-FL) and Dennis Moore (D-KS) for "once again bringing attention to the need for insurance regulatory reform." www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. EasyLink Announces Settlement of Litigation PISCATAWAY, N.J.--(BUSINESS WIRE)--EasyLink Services Corporation (“EasyLink”) (NASDAQ: EASY) today announced that a prior litigation matter has been settled. The litigation titled Dynamic Depth Inc. v. EasyLink Services Corporation claiming infringement of United States Patent No. 5,461,488 was settled on February 8, 2007 on a mutually acceptable basis. The terms of the settlement are confidential. The terms of the settlement will have not a significant effect upon the Company or its business. www.EasyLink.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Health Affordability Talk, But No Regulatory Walk in Wake of $1 Million Dollars in Industry Contributions to Committee Members, Says FTCR SANTA MONICA, Calif., Feb. 15 /PRNewswire-USNewswire/ -- At a state Senate hearing today addressing Governor Schwarzenegger's plan to require all Californians to buy health insurance, administration representatives refused to give a dollar amount for how much health policies would cost under the proposal and rebuffed questions about the need for regulation of insurance premiums to make them affordable for people who would be required to buy coverage. Committee chair Senator Sheila Kuehl raised the issue of regulating health insurance in the same manner that auto insurance is regulated under Prop 103. The Foundation for Taxpayer and Consumer Rights (FTCR) again urged her to author a bill providing such regulatory oversight though she recently declined to do so. No senator FTCR has approached has been willing to author health insurance rate regulation. (Senator Kuehl was the only committee member who did not rake in significant contributions from the medical-insurance complex). "If legislators want to make health care affordable they should look to Prop 103 -- which has saved drivers $23 billion since 1988 -- unless the $1 million in campaign contributions has kept affordability off the table," said Jerry Flanagan of FTCR. "Though politicians intend to require individuals to buy health insurance, no legislator has yet championed the issue of regulating insurance rates, or requiring insurers, doctors and hospitals to make public - - and defend in public -- the rates they charge." In lieu of regulating what insurers can charge, gubernatorial representatives called for cutbacks on health insurance coverage and high out- of-pocket costs for consumers. "At the hearing, the governor's staff repeatedly said they have faith in the market to keep premium costs down," said Judy Dugan, research director for FTCR. "That is exactly what the oil industry told us about gasoline prices even as Californians paid pump prices of $3.38 per gallon last spring." The 11 members of the Senate Health Committee have received $998,978 in campaign contributions from health insurers, doctors, hospitals, and drug companies since 2005. Health care corporations and providers have the most to gain from a plan that requires Californians to buy insurance but allows insurers and HMOs to charge whatever they choose. Under the plan proposed by the governor, a family of four with income of $60,000 would be required to pay full price for coverage -- averaging $11,500 per year (20% of their income) for premiums alone -- or face tax penalties. The governor's proposal to require that 85% of health insurance premium revenue go to health care has to be paired with regulatory review of proposed rate increases in order to ensure that policies are affordable. Otherwise the 85% limit will perversely encourage insurance companies and HMOs to overpay doctors and hospitals so insurers can reap more revenue. For example, keeping 15% of a $15,000 premium will make more fiscal sense to insurers than 15% of a $10,000 premium. FTCR said the Senate and Assembly health committees are seen as big opportunities for fundraising that leave members with big obligations to their political sponsors. The top cash getters, Democrats Leland Yee (San Francisco) and Gloria McLeod (Chino) and Republican Samuel Aanestad (Grass Valley) each received significant contributions from health insurers, hospitals, doctors and drug manufacturers. Negrete McLeod, who received $36,000 from insurers and HMOs, was one of four Democrats to vote against a bill last year, heavily opposed by health insurers, that would have capped the amount of money that patients pay out of pocket when they get sick (AB 2281). As an assembly member, Negrete-McLeod also refused to cast a vote on a bill that would have reformed the anti- consumer health insurance mandatory arbitration system. That bill died in committee. Yee, who received two-dozen contributions from acupuncturists and acupuncture clinics, authored a bill last year that would have barred acupuncturist assistants from performing acupuncture. The bill was vetoed by Governor Schwarzenegger. Total Contributions by Industry: -- HMOs, health insurers and underwriters have contributed: $188,539 -- Pharmaceutical companies have contributed: $181,012 -- Doctor, dentist and practitioner lobbying groups: $496,477 -- Hospitals & clinics: $132,949 Contributions by Senator: -- Sheila Kuehl, Chair (D): $6,950 -- http://www.ConsumerWatchdog.org/resources/Kuehl.pdf -- Samuel Aanestad, Vice Chair (R): $106,550 -- http://www.ConsumerWatchdog.org/resources/Aanestad.pdf -- Elaine Alquist (D): $52,884 -- http://www.ConsumerWatchdog.org/resources/Alquist.pdf -- Gilbert Cedillo (D): $44,499 -- http://www.ConsumerWatchdog.org/resources/Cedillo.pdf -- Dave Cox (R): $70,001 -- http://www.ConsumerWatchdog.org/resources/Cox.pdf -- Abel Maldonado (R): $61,950 -- http://www.ConsumerWatchdog.org/resources/Kuehl.pdf -- Gloria Negrete McLeod (D): $194,405 -- http://www.ConsumerWatchdog.org/resources/Negrete-Mcleod.pdf -- Mark Ridley-Thomas (D): $70,700 -- http://www.ConsumerWatchdog.org/resources/Ridley-Thomas.pdf -- Darrell Steinberg (D): $88,899 -- http://www.ConsumerWatchdog.org/resources/Steinberg.pdf -- Mark Wyland (R): $80,850 -- http://www.ConsumerWatchdog.org/resources/Wyland.pdf -- Leland Yee (D): $221,289 -- http://www.ConsumerWatchdog.org/resources/Yee.pdf The Foundation for Taxpayer and Consumer Rights (FTCR) is California's leading public interest watchdog. For more information visit us on the web at: http://www.ConsumerWatchdog.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Connecticut Citizens Fight for Justice from Auto Insurers HARTFORD, Conn., Feb. 15 /PRNewswire-USNewswire/ -- Recent and upcoming reports on CNN illustrate how difficult it can be for auto accident victims to get fair compensation from insurance companies, even in seemingly straightforward and minor cases. The network's 18-month investigation which aired this week on "Anderson Cooper 360" found that tactics to "delay, deny and defend" form the strategy of many auto insurance companies. The story outlined how insurances companies will offer to pay a fraction of actual expenses from an accident. If you are in a minor impact crash and get hurt, former insurance industry insiders told CNN, insurance companies will most likely try doing the same thing to you: delay handling your claim, deny you were hurt and defend their decision in drawn-out court battles. Connecticut citizens do not escape these maneuvers. "I believe that insurance companies count on the fact that eight times out of 10, the claimant will either simply go away or hire an attorney who won't try the case," said Joe Mirrione, a New Haven attorney who has plenty of "horror stories" about insurance companies. "They figure that even if they lose those two other claims, they come out ahead in the end." In fact, according to the Consumer Federation of America, many insurers now employ programs designed to systematically underpay claims. Computer-directed programs like "Colossus" and "Claims Outcome Advisor" allow insurers to determine the amount of overall claims' savings they want to achieve before claims are assessed for legitimacy. CNN Transcript from Feb. 7, 2007 show: (You will need to scroll down 1/3 of page) http://transcripts.cnn.com/TRANSCRIPTS/0702/07/acd.02.html Consumer Federation of America: http://www.consumerfed.org/pdfs/White_Paper_Releaseupdate010807.pdf Contact: Neil H. Ferstand, executive director of the Connecticut Trial Lawyers Association, 860-522-4345 Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Clark Consulting Amends Asset Purchase Agreement; Increases Purchase Price for Sale of Business Units BARRINGTON, Ill., Feb. 15 /PRNewswire-FirstCall/ -- Clark Consulting (NYSE: CLK), a national firm dedicated to helping companies keep their best people through integrated compensation, benefits and funding solutions, today announced that Clark, Inc., a Delaware corporation (the "Company"), entered into a new Asset Purchase Agreement (the "New Sale Agreement"), dated as of February 14, 2007, by and among the Company, Clark Consulting, Inc., a Delaware corporation and wholly-owned subsidiary of the Company, Clark Wamberg, LLC, a Delaware limited liability company ("C-W Co.") and Tom Wamberg, Chairman and Chief Executive Officer of the Company, as a joint obligor with C-W Co. www.clarkconsulting.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. ARA Applauds Senator Lott for His Efforts to Stem Title Fraud and Abuse and Provide Consumers with Access to Total Loss Vehicle Data FAIRFAX, Va., Feb. 15 /PRNewswire-USNewswire/ -- The push for VIN Disclosure legislation in 2007 took a major step forward with Senator Trent Lott's, (R-MS) introduction of the "Consumer Access to Total Loss Vehicle Data Act" (S.545). Senator Lott's bill exemplifies his commitment to stem total loss vehicle related fraud, theft and other illegal total loss vehicle activities. ARA applauds Senator Lott for his leadership in the effort to stem the abusive practices associated with title fraud. The "Consumer Access to Total Loss Vehicle Data Act" (S.545) would make available to consumers and to State and local law enforcement information about automobiles that insurers have declared a total loss. The legislation directs the National Highway Traffic Safety Administration to require insurers to disclose information pertaining to these vehicles, including through online auto services. "An estimated half million vehicles were damaged by Katrina, and there is evidence that these cars are being cleaned up and sold to unsuspecting consumers," Senator Lott said. "Many of these cars are unsafe and shouldn't be on the roads. And consumers are overpaying for vehicles they believe are sound." www.a-r-a.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. AIA SUPPORTS MASSACHUSETTS ASSIGNED RISK PLAN BOSTON, Feb. 15, 2007 – The proposed assigned risk plan in Massachusetts should be implemented to provide a fair and transparent system for assigning high risk drivers to insurers, the American Insurance Association (AIA) said today in testimony before the Division of Insurance. The hearing came as a result of a decision by the new administration of Gov. Deval Patrick to suspend the implementation of the assigned risk plan that started in December under the previous administration. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Big “I” Supports Surplus Lines Bill Legislation is a crucial first step towards producer licensing uniformity WASHINGTON, D.C., Feb. 15, 2007—The Independent Insurance Agents & Brokers of America (the Big “I”) supports a recently reintroduced surplus lines bill, H.R. 1065 sponsored today by Rep. Dennis Moore (D-Kan.) and Rep. Ginny Brown Waite (R-Fla.), as a crucial first step for uniformity in producer licensing. “The Big “I” supports this legislation, which is an excellent example of pragmatic reform that utilizes targeted, federal tools to improve the state-based regulatory system,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs and federal relations. “We support this type of approach to help bring needed reforms to the regulatory system.” The legislation singles out two areas—surplus lines regulation and reinsurance supervision—where there is general consensus for reform. Independent insurance agents and brokers play a crucial role in surplus lines (or nonadmitted) insurance, which provides coverage for unique or hard-to-place property-casualty risks. “The nonadmitted marketplace continues to function as a crucial ‘safety valve’ for the entire insurance market,” says Tom Koonce, Big “I” assistant vice president for federal government affairs. “The existing state-based regulatory system has some inefficiencies that disrupt the nonadmitted marketplace regarding the allocation and remittance of premium taxes, licensing of nonresident surplus lines brokers, and duplicative regulation of the nonadmitted market. This legislation will correct this.” Additionally, the bill streamlines surplus lines regulation by making the insured’s home state the source of regulation for individual surplus lines transactions. The legislation’s second title would seek to reduce overlapping, multiple-state regulation of both reinsurer financial condition and credit-for-reinsurance on the balance sheets of ceding insurers. This is important to the Big “I” due to its reaffirmation of state regulatory system, which the Big “I” supports, with modifications such as those contained in this bill. In the 109th Congress, similar legislation passed the House on a unanimous 417-0 vote, and the Big “I” is hopeful that this legislation will also receive such favorable consideration this session. “We believe that the unanimous House vote of 417 to 0 to approve this legislation last year is testament to the support that can be generated for federal legislation reforming state insurance regulation. This consensus legislation contrasts sharply with proposals such as the ‘optional’ federal charter, which is very controversial both within the industry and on Capitol Hill,” Symington says. “Four hundred and seventeen House Members supported targeted reform last year, and we believe this action speaks volumes about the proper approach to reform the insurance market.” www.independentagent.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. AAMGA Praises Introduction of Insurance Surplus Lines Bill The American Association of Managing General Agents (AAMGA) hailed introduction of the Non-Admitted and Reinsurance Reform Act of 2007 in the US House of Representatives today. Culminating on the success of efforts last year, the AAMGA was joined by NAPSLO, Big I, RIMS and the AAMGA-member state stamping and surplus line offices, and other industry groups in moving toward introduction of HR 1065, the initiative to reform state surplus lines regulations in respect of the payment of multi-state premium taxes. Congressman Dennis Moore (D. KS) and Congresswoman Ginny Brown-Waite (R.FL), who sponsored last year’s initiative of H.R.5637, again co-sponsored the Bill’s introduction. The provisions are essentially the same, with the exception of revising the definition of a “qualified risk manager.” AAMGA has been working on Capitol Hill since the new Congress convened to move the Bill forward in both the House and Senate, and has had discussions with members of the House Financial Services Committee, and the Senate Banking, Housing and Urban Affairs Committee. AAMGA believes a companion Bill can be introduced in the Senate shortly. “At a time when the insurance marketplace is under scrutiny, efforts like this will streamline industry efficiencies and provide greater access to surplus lines for consumers,” said AAMGA President Scott Anderson of Concorde General Agency in Fargo, ND. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. BIG “I” URGES CAUTION ON Mccarran ACT CHANGES Repeal of McCarran-Ferguson Exemption could reduce availability of insurance WASHINGTON, D.C., February 15, 2007—The Independent Insurance Agents & Brokers of America (the Big “I”) today calls on Congress not to support proposals that would completely repeal the McCarran-Ferguson antitrust exemption for the business of insurance. The Big “I”, the nation’s largest insurance association, argues that significant changes to the exemption could have negative implications for insurance purchasers. Legislation that would alter the exemption was introduced concurrently today in the U.S. Senate and the House of Representatives. “We are concerned that an outright repeal of the antitrust exemption in McCarran-Ferguson could have a negative impact on small and medium sized insurers in the marketplace resulting in reduced competition and potentially decreasing the availability and increasing the cost of insurance for consumers,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs and federal relations.” The Big “I” testified before the Senate Judiciary Committee in June 2006 that the financial condition and state of competition and consumer choice in today’s insurance marketplace are quite high, and that direct state insurance supervision and law enforcement, in conjunction with the qualified application of federal antitrust law has served both the industry and consumers well. It urged the committee, at a minimum, to await the report of the Antitrust Modernization Commission, established by Congress two years ago to study a variety of antitrust issues, including the multiplicity of exemptions and privileges currently existing. “There is little evidence indicating that wholesale changes to the McCarran-Ferguson antitrust exemption are needed or even desirable,” says Tom Koonce, Big “I” assistant vice president for federal government affairs. “We urge Congress to think very hard and deliberately before taking any action that could harm insurance consumers and affect competition, particularly the ability of small and medium sized insurance companies to compete in the marketplace.” www.independentagent.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Insurance Commissioner Steve Poizner Praises Superior Court Decision On Auto Rating Factors SACRAMENTO --- California Insurance Commissioner Steve Poizner praised Superior Court Judge Loren McMaster’s decision today to uphold the Department of Insurance’s victory on auto rating factors. The judgment concerns the weight to be given to automobile rating factors in an insurer’s rating plan, amendments which went into effect last August. “Today’s judgment is a victory for California ratepayers and for the Department of Insurance,” said Insurance Commissioner Steve Poizner. “A driver’s insurance premiums should be primarily based upon their driving record, not simply the zip code in which they live.” The ruling is the latest victory in a long battle over auto rating factors. Over the past several months, some of the state’s largest auto insurers – including Auto Club of Southern California and USAA – filed applications to lower rates significantly for consumers. “The intent of Proposition 103 has been upheld today,” said Commissioner Poizner, noting, “But there is still work to do. With my background in the high-tech industry, I look forward to exploring more innovative ways to arrive at the best possible rating system for auto rates.” Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. NAMIC Testifies Before Florida Office Of Insurance Regulation; Defends Use Of Education And Occupation In Underwriting INDIANAPOLIS (February 15, 2007) – The National Association of Mutual Insurance Companies (NAMIC) disputed claims made by the Florida Office of Insurance Regulation (OIR) that auto insurance companies use education and occupation underwriting criteria to charge higher premiums to their minority and low-income customers . “Insurance companies do not collect information about race or income, nor are they engaged in an effort to make coverage unavailable or unaffordable on the basis of race or income,” said Liz Reynolds, NAMIC’s State Affairs Manager for the Southeast, in a hearing before the OIR on Friday. “They are, however, in the business of competing with other insurers to most effectively match rate to risk and garner market share in the process.” NAMIC research conducted and released in a public policy paper in 2004 points out that “the foundation of the business of insurance underwriting and rate-making is classifying policyholders by risk. Since insurers make decisions based on actuarial and business principles that group policyholders for the reason of treating similar policyholders similarly, any potential correlation to race is not part of the risk assessment process. This renders the disparate impact test an unreliable means by which to identify illegal discrimination. As the Seventh Circuit states in NAACP v. American Family Mutual Insurance Co., 978 F2d 287 (7th Cir 1992), ‘[r]isk discrimination is not race discrimination.’” “Insurers need to be able to engage in this function (underwriting) as freely as possible in order for insurance markets to work properly, which ultimately benefits consumers and society in general,” Reynolds stated. www.namic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. SITE Insurance Training Professional Designation (ITP) - SITE awards the 40th ITP designation SAN FRANCISCO—The Society of Insurance Trainers & Educators (SITE) awarded the 40th Insurance Training Professional (ITP) designation at its Board meeting February 2, 2007. The designation, which the Society first offered in 2005, recognizes professionalism in insurance training. The only designation of its kind, the ITP requires each candidate to demonstrate proficiency in insurance knowledge, have a minimum of 5 years training experience, provide evidence of successful training practice through study or other course work, and adherence to the SITE Code of Ethics. Candidates must also be SITE members.ranks, and extend our heartfelt congratulations to the 40 designees for their hard work.” To find out more about the designation, or to see a list of designation recipients, visit: http://www.insurancetrainers.org/guests_index.php (click on the ITP tab). SITE is a non-profit, professional membership organization dedicated to training and education in the insurance industry. The 50-year-old professional association has a membership of more than 800 trainers and educators from the insurance industry. Contact: Lois Markovich @ ED@insurancetrainers.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. PIANJ CEO/Advantage Conference: When agents and companies partner, it’s a win-win-win situation Establishing a plan grows business for agents, companies; creates value for consumers TRENTON, N.J.—Independent insurance agents and company representatives, intent on gaining a bigger share of the market, turned out in record numbers to take part in the annual CEO/Advantage Conference of the Professional Insurance Agents of New Jersey Inc. Entitled “Maximizing your partnership: The collaborative sales process,” the event was held Tuesday, Feb. 13, 2007, at Forsgate Country Club, Monroe Township, N.J. The panel included Paul Monacelli, CIC, CPIA, PIANJ past president; Lloyd “Skip” Daigle, vice president, enterprise development, Travelers; Steve Anderson, president, The Anderson Network Inc.; and Peter van Aartrijk Jr., CIC, managing director, The van Aartrijk Group LLC. Panelists discussed how independent insurance agents and insurance carriers need to collaborate to increase marketing and sales; combat direct sellers; provide greater value to their customers; and modify their business practices to work within the changing insurance market. At the beginning of the conference, Monacelli, who moderated the event, summed up its purpose. “We are here because we are concerned about the state of the insurance industry,” he said. “The times are changing … and we need to rediscover the entrepreneurial spirit. Success depends on a written [marketing] plan. Without a written plan you only have hope, and hope is a bad plan.” Monacelli and other panelists recommended hiring young people and harnessing their wisdom about how people their age prefer to research, buy and communicate with providers of products and services. Daigle noted that a bigger agency is not necessarily better—especially if there isn’t “growth of business.” He indicated that 40-60 percent of all insurance agencies have seen a decline in customer growth. But by working together with their insurance carriers, agents can find ways to work against captive agents and direct writers. “If agents grow, carriers grow,” said Daigle. “And, the carrier field representative has to find a way to help agents grow.” www.pia.org 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. PIANY members endorse proposals to aid coastal homeowners GLENMONT, N.Y.-Members of the Professional Insurance Agents of New York State Inc. who do business in coastal areas have endorsed a number of ideas that could help them find adequate insurance coverage for homes located close to the water. The agents were asked to rate and comment on proposals based on suggestions the association solicited from members over the past few months, according to Ellen D. Kiehl, Ph.D., CAE, PIANY assistant executive director for Government & Industry Affairs. "We listened to members, took their suggestions, and sought additional feedback on these ideas," Kiehl said. "This process will shape PIANY's policy recommendations as we tackle the issue of improving our members' ability to provide insurance for New York state's homeowners in 2007." PIANY compiled a list of proposals affecting several sources of property insurance, including standard, New York licensed homeowners insurers, the New York Property Insurance Underwriting Association, the Coastal Market Assistance Program and companies that are not licensed to do business in New York state. www.pia.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Health Insurance and Employee Benefit Professionals from across Texas Will Take Their Message to the Texas Legislature Next Tuesday as Part of the 13th Texas Association of Health Underwriters “Day at the Capitol” HOUSTON--(BUSINESS WIRE)--TAHU president Mike Rivera of Houston said TAHU members will take real world ideas and suggestions to legislators as they confront the twin dilemmas of making health insurance more affordable and reducing the number of Texans who don’t own a comprehensive insurance plan. “Our message is one for less government regulation in health care and health insurance,” said Rivera. “There are numerous examples of other states and countries which have gone down the government-controlled health care road and are paying for it dearly now. We will be advising our state representatives and senators not to add Texas to the list” Some of the specific issues the TAHU members will be carrying to the Capitol include: We are against any kind of clearinghouse, “connector” or other government-run mechanism designed to market health insurance directly to individuals and employers. “Texas already has a much better system – it’s called the insurance agent. With all due respect, insurance agents do a much better job of connecting the citizens of Texas with health insurance than any government employee could possibly do”, added Rivera. For “transparency” in the costs of health care. No one is more powerful than a consumer armed with good information, especially as he tries to stretch his health care dollar. TAHU supports reasonable legislation to give Texans the ability to learn what medical procedures and services will cost in advance of receiving them. For Health Savings Accounts and especially Health Savings Accounts as an option for state employees. Other states provide clear evidence that this is a wise choice for everyone – the state employer, the state worker, and the taxpayer – as ten states have now added this feature, including one state that had a 10-15% participation rate by its workers. “HSAs return health care decisions and control of health care spending back to the consumer and that’s where it ought to be,” Rivera noted. For Long Term Care Insurance Partnerships. These new federally-authorized arrangements will prevent a person from having to “spend down” their personal assets in order to qualify for Medicaid by drawing on a private LTC plan first and should have a very favorable impact on reducing the overall cost of the Medicaid program to the State. Rivera noted that TAHU members work on the front line in health insurance every day. “We are excited to be a resource for members of the Legislature and are anxious to contribute our experience and expertise.” TAHU is a statewide association of almost 2,000 employee benefits and health insurance professionals. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Blue Cross of California Launches Comprehensive Dental PPO Networks In California THOUSAND OAKS, Calif., Feb. 15 /PRNewswire/ -- Blue Cross of California (Blue Cross) today announced that Dental Blue(R) has become one of the largest dental PPO networks in the state with more than 18,600 provider locations across California. Dental Blue is a dental insurance program from affiliate BC Life & Health Insurance Company that gives employers - and their employees - the power to choose a dental plan tailored to meet their needs and budgets. Designed to help increase access and affordability, Dental Blue features three tiers of provider networks with multiple price points, giving employees the freedom to access a larger network with controlled out-of-pocket costs. Now including 18,607 provider locations across the state, Dental Blue offers nearly 4,000 dental specialists, which participate in all three levels of the network. Dental Blue also offers discounts for a range of popular services, such as teeth whitening and braces. www.bluecrossca.com www.wellpoint.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Blue Cross and Blue Shield of North Carolina Programs Help Members Keep Money in their Pockets and Stay Healthier CHAPEL HILL, N.C., Feb. 15 /PRNewswire/ -- North Carolinians saved at least $80 million last year in direct out-of-pocket prescription costs when Blue Cross and Blue Shield of North Carolina (BCBSNC) told them to skip the copayment on generic drugs. The 2006 generic copayment waiver was part of a coordinated effort -- which also included free flu shots and electronic prescribing -- to help members improve their health and save money. In 2006, generic drugs were prescribed 58 percent of the time for BCBSNC members, up from 46.8 percent in 2004, the last time the company told members to put away their wallets when choosing a generic drug over a brand name drug, as prescribed by their doctors. Generic drugs are just as effective as brand name drugs but cost up to 80 percent less through BCBSNC's pharmacy programs.www.bcbsnc.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Carilion and UnitedHealthcare Reach New Agreement ROCKVILLE, Md., Feb. 15 /PRNewswire/ -- Carilion and UnitedHealthcare have agreed to a new contract that offers UnitedHealthcare customers in Southwestern Virginia access to Carilion's extensive regional network in the Roanoke, New River and Shenandoah valleys. Under this new agreement, UnitedHealthcare customers enrolled in Choice, Choice Plus, Select, Options PPO plans, MD-Individual Practice Association Inc. plans, Optimum Choice Inc. plans, and MAMSI Life and Health Insurance Company plans will now have access to Carilion's regional network that includes six hospitals, 67 physician practices and more than 400 physicians. Carilion also provides the largest cardiothoracic surgery practice in the area. "UnitedHealthcare's acquisition of John Deere Health Care, one of our original partners, created an opportunity for us to broaden and strengthen the terms of our strategic payer arrangement to a larger group of people in our region," said Carilion spokesperson Eric Earnhart. "We look forward to a long and beneficial association with UnitedHealthcare, based on our shared commitment to quality, service and value." www.unitedhealthcare.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. CIGNA International Introduces Group Health Program for Retirees Living Outside Their Home Countries PHILADELPHIA, Feb. 15, 2007 /PRNewswire-FirstCall/ -- Retirees living outside their home countries now have access to a new CIGNA International Expatriate Benefits (CIEB) global program for retirees and their eligible dependents. The program provides primary medical, dental, and vision benefits for covered individuals in the United States and abroad whose employers are CIEB clients. "Employers have been asking for a retiree program. There is a growing demand for private benefits plans as more retirees choose to live abroad," said Glenn Maykish, vice president - Sales. "CIEB is happy to be able to accommodate this market demand as we continue to introduce innovative solutions to the international benefits arena." In the United States, the Medicare program generally does not provide coverage for beneficiaries living overseas. Social security programs of other countries frequently provide limited or no coverage for beneficiaries who reside outside of their home countries. Under the new program, CIEB clients that have purchased a medical policy for their expatriate workforce on assignment outside their home countries can elect to extend benefits to their retiree population. Retiree benefits are typically modeled on the benefits available under the group's expatriate policy. Retiree coverage is not available to companies without a current expatriate benefits policy. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Top Executives in Banking, Insurance and Finance to Present at International Symposium SAN JUAN, Puerto Rico, Feb. 16 /PRNewswire/ -- A group of experts in international insurance and banking, capital markets and the regulatory industry will address participants on international business opportunities available through the International Insurance Center and the International Banking Center of Puerto Rico, at the 2007 Puerto Rico International Symposium, to be held February 22 and 23, 2007 at the Hotel Condado Plaza & Casino in San Juan. This year, the Office of the Commissioner of Insurance will share sponsorship of the event, with the Office of the Commissioner of Financial Institutions and the Department of Economic Development. "We are confident this effort at marketing Puerto Rico as the "Bridge of the Americas" will stimulate entry into our market of more international banking and insurance institutions to promote greater economic growth for the country and creation of new and better employment opportunities for Puerto Ricans," Padilla concluded. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. GSI Hosts CavemansCrib.com for GEICO GEICO's Caveman gets new bachelor pad at GSI KANSAS CITY, Mo., Feb. 16 /PRNewswire/ -- When GEICO sought an apartment for their prehistoric spokesperson that could accommodate unlimited visitors, they turned to GSI. The newly launched site, http://www.cavemanscrib.com, is housed in GSI's new state-of-the-industry AirWorld Technology Center in Kansas City, Missouri. www.geico.com www.gsihosting.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Outsourcing Benefits Made Accessible to Mid-Market Lenders NDS Infoserv & TPG The Performance Group ® CONCORD, N.H.--(BUSINESS WIRE)--NDS InfoServ (NDS) a global provider of IT and BPO services has teamed with TPG The Performance Group ® (TPG), a management consulting firm, specialists in the mortgage banking industry, to enable mid-sized mortgage lenders to adopt business process outsourcing (BPO) services that are affordable, rapidly implemented, and proven to enhance competitive advantage. www.ndsinfo.com www.tpgltd.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. AH&T and NASDAQ Partner to Serve Public Companies Leesburg, VA (February 15, 2007) – Today AH&T Insurance and Carpenter Moore, a wholly owned subsidiary of The Nasdaq Stock Market, Inc. announced an exclusive alliance that will help public companies in the Mid-Atlantic region address their risk management needs and ensure that their assets, executives, and boards are adequately insured. This partnership brings together AH&T’s deep expertise as one of the nation’s largest independent insurance brokers with the tremendous resources of Carpenter Moore, including a proprietary library of data, benchmarking and coverage statistics on public companies. Through this alliance, AH&T Insurance is the exclusive insurance broker in the Mid Atlantic region with access to these insurance resources. “Traditional insurance strategies are failing to keep up with the complex liabilities today’s companies are facing. Comprehensive solutions that look at wording, limit levels and allocation, corporate governance and claims management are necessary to avoid unexpected unfunded liability,” commented Keith Martinsen, executive vice president for management liability, insurance advisory and brokerage at Carpenter Moore, “AH&T’s knowledge and capabilities in these areas are among the best in the industry and we look forward to working with them.” For additional information, please contact David Schaefer of AH&T Insurance at (703) 737-2222 dschaefer@ahtins.com or Keith Martinsen of Carpenter Moore at (212) 381-6457 keith.martinsen@nasdaq.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. January housing starts down 14.3 percent Fri Feb 16, 2007 9:03AM EST - WASHINGTON (Reuters) - The pace of U.S. home construction fell 14.3 percent in January, the sharpest drop since October that bucked two months of increases and that was much worse than economists had expected, a government report on Friday showed. The Commerce Department said housing starts clocked an annual pace of 1.408 million units in January compared to 1.643 million units in December. Economists had forecast January housing starts to fall to a 1.60 million unit pace from December's originally reported pace of 1.642 million units. Building permits, which offer a clue to future construction plans, fell 2.8 percent to a 1.568 million unit pace. Economists were expecting building permits would register a 1.593 million unit pace, down from the revised 1.613 million unit pace of December. Despite the gloomy data, a survey of builders' confidence issued this week showed an up tick for February. A private survey of homebuilders' sentiment rose in February to its highest level since June 2006. The National Association of Homebuilders/Wells Fargo Housing Market Index jumped to 40 in February from 35 the previous month. Economists had predicted the index to remain unchanged. Readings below 50 indicate more builders view market conditions as poor rather than favorable. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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