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For example, you can download an entire week's INSURANCE NEWSCAST audio summaries and listen to them in your car on a CD in a little over an hour. www.insuranceradio.net Daily Quote: "Fortune befriends the bold." - - John Dryden 1. Zach Scruggs's Statement Regarding Attorney General Hood's Insurance Proposal JACKSON, Miss., Feb. 16 /PRNewswire-USNewswire/ -- We at Scruggs Katrina Group applaud Attorney General Jim Hood's efforts to prevent State Farm and other insurers, who made $50 billion in net profit last year, from cherry picking its insurance coverage in Mississippi. We also applaud the efforts of Senator Lott, Congressmen Taylor and Congressman Thompson to repeal the insurance industry's anti-trust exemption. It is essential we prevent this kind of industry coercion from happening in Mississippi and other states. The Insurance Commissioner of this state should not allow a company the size of State Farm to stop writing new homeowner's policies in Mississippi but continue selling profitable auto insurance policies. The fact is State Farm, Allstate, Nationwide, and other insurance companies owe thousands of families on the Mississippi Gulf Coast millions of dollars for unpaid Hurricane Katrina damage claims. It is wrong for any insurance company to stop issuing homeowner's and commercial policies as punishment for having to pay owed claims. Our primary goal in last month's settlement presented to the U.S. District Court in Mississippi was to get thousands of families who have not filed lawsuits compensated for denied claims in a fair and balanced manner so that State Farm would continue its coverage on the Gulf Coast. Now families on the Gulf Coast and other taxpayers will have to pick up State Farm's Katrina tab. We are still hopeful we can work out a resolution with Attorney General Hood, State Farm and the Court. The coast cannot rebuild until these unpaid insurance claims are resolved and a stable insurance market is in place. We at Scruggs Katrina Group will continue working toward these goals. For more information go to the website at http://www.scruggskatrinagroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. TowerGroup Analyst Toplines Implications of State Farm Decision to Cease Writing New Homeowner / Commercial Policies in Mississippi Another insurance giant pushed by a distressed marketplace. Who Will Take their Place? NEEDHAM, Mass., Feb. 16 /PRNewswire/ -- State Farm's announcement on Wednesday, February 14, that it will stop writing new homeowner and commercial insurance in Mississippi is just the latest in a series of actions taken by major U.S. property and casualty insurers to limit exposure to risk from catastrophes. The move by State Farm is a direct response to its ongoing legal battles over damage claims from 2005's Hurricane Katrina. According to Karen Pauli, a senior analyst in the Insurance practice at TowerGroup, "State regulators and consumers still have not faced the fact that some very tough decisions have to be made about population concentration in catastrophe zones." Karen Pauli is available to comment on this development and the impact it will have on consumers and the insurance industry as a whole. Pauli makes the following observations: * Hurricane Katrina engendered a spirit of collaboration and creative problem solving between government, consumers and insurance carriers. That spirit of collaboration faded during a relatively catastrophe-free year in 2006. TowerGroup believes this has resulted in a return by many state officials to their prior contentious relationships with insurers - which in turn has caused a carrier backlash in which they are taking aggressive measures to manage enterprise risk exposure. * TowerGroup believes that years of individual state insurance rate suppression in catastrophe-prone areas have driven carriers to take the last available step to protect their corporate assets -- exiting those markets. * TowerGroup concludes that market actions taken by State Farm, Allstate and other top U.S. Property & Casualty insurers will drive federal legislators to consider a national catastrophe fund, despite the fact that there are many in the government who would like to avoid this emotionally charged subject. Pauli can also speak to such issues as: how insurers will likely handle high risk zones going forward; whether more insurers will walk away from entire regions of the country; and actions state governments may take to try to avert or reverse pull-back by insurers. Her recent work on this topic includes two research reports: "Property and Casualty Catastrophe Management: Technology Tools to Mitigate Unpredictable Risk" and "Property and Casualty Insurance: Convergence in Catastrophe." Please contact Jorge Lavina directly at +1.212.455.8041 or jlavina@cooperkatz.com if you'd like to arrange an interview with Pauli or review her research. www.towergroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Settlement Between Allstate & Minority Customers Approved by Federal Court Judge Minority Customers to benefit TAMPA, Fla., Feb. 16 /PRNewswire/ -- Attorneys representing Allstate's minority customers announced today, a Texas Federal Court issued final approval for a nationwide class action settlement regarding its credit scoring practices. "This is a great day for Allstate's minority customers," said lead plaintiff's attorney Christa Collins, of the law firm James, Hoyer, Newcomer & Smiljanich, PA. "This is a groundbreaking settlement, because Allstate has agreed to change the way it uses credit information to price insurance. We believe this change significantly benefits Allstate's minority customers." According to the court, Allstate has millions of African American and Hispanic customers who are affected by the settlement nationwide. "The bottom line," said Collins, "is many of Allstate's minority customers stand to save significant dollars in their premium payments as a result of the credit scoring changes." The case was filed in 2001 in U.S. District Court, Western District of Texas, San Antonio Division. It was brought by six Allstate customers who represented a nationwide class of African Americans and Hispanics. These individuals alleged they were discriminated against when issued automobile and/or home insurance, by being charged higher premiums based on Allstate's use of credit scoring. "We're very proud," said lead plaintiff Jose DeHoyos. "We're very happy to be part of something that will really make a difference, not only for ourselves, but for so many others in the same situation." In a lengthy opinion, Federal Judge Fred Biery concluded that settlement was "powerful" and cited that it allowed "individuals as private litigants to challenge and ultimately change corporate practices they regard as discriminatory and as a result to bring about important social change." As a result of the settlement, minorities will benefit from the following: * Allstate will implement a new credit scoring formula. * Allstate will notify eligible policy holders that they can participate in an appeals process that may result in a premium reduction, when their credit score was negatively affected by life hardships like divorce, loss of a job, death of a spouse, etc. * Class members may be eligible for a 50 to 150 dollar payback on prior premium payments based on how their credit score was affected by the old formula. * The National Urban League and National Council of LaRaza will distribute educational credit information developed through the settlement. "It's been a long fight, but well worth the results," concluded lead plaintiff's attorney Collins. James, Hoyer, Newcomer & Smiljanich, PA is an investigative, law firm that represents individuals, organizations and governments. Visit the firm's website at http://www.jameshoyer.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. ''Cracking the Code'': The Hartford Deciphers New Pension Legislation to Help Customers Unlock Its Many Benefits Holistic, Comprehensive Educational Campaign on the Pension Protection Act Identifies New Ways for Americans to Plan and Save for Retirement SIMSBURY, Conn.--(BUSINESS WIRE)--The Hartford Financial Services Group (NYSE: HIG) announced today that its Retirement Plans Group has embarked on a full-scale, multi-faceted campaign to help financial professionals, retirement plan sponsors and plan participants “crack the code” of the Pension Protection Act of 2006 and convert opportunity into action. The Act, signed by President Bush last August, has been labeled by government leaders as the most sweeping reform of America’s pension laws in over 30 years. Changes enacted by the Pension Protection Act start this year and will be felt for years to come. www.thehartford.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Scor buys Converium stake, has full bid rebuffed Mon Feb 19, 2007 7:25AM EST By Douwe Miedema ZURICH (Reuters) - French reinsurer Scor (SCOR.PA: ) grabbed hold of a third of its rival Converium (CHRN.S: ), but the Swiss firm rejected a full takeover offer that valued its business at 3.1 billion Swiss francs ($2.51 billion). Scor said on Monday it remained keen on a full merger between the two groups, but Converium said the unsolicited bid at 21 francs per share did not reflect its strength now that it had returned to health after years of financial turmoil. "The directors are unanimous in their rejection of this proposal, which they believe fundamentally fails to recognize the value of Converium's franchise and growth prospects," the company said in a statement. Scor said the combined companies would create a top-five global reinsurer -- a company that insures other insurers -- but its shares dived as investors questioned the financing of the deal and the strategic rationale behind it. (Additional reporting by Sudip Kar-Gupta in Paris) © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. Allianz minority buys offer hope of cash to come Mon Feb 19, 2007 10:45AM EST By Jonathan Gould FRANKFURT, Feb 19 (Reuters) - Allianz's (ALVG.DE: ) 10.5 billion euro ($13.8 billion) bid to buy in minority stakes at its French and German insurance units has disappointed some shareholders, but the moves offer hope of a bigger profit pay-out next year. Germany's biggest insurer last month unveiled plans to buy the 42 percent of French unit AGF (AGFP.PA: ) and the 9 percent of Allianz Leben (ALLG.SG: ) it did not already own, financing the deal with 7.5 billion euros in cash and 3 billion in shares. The offers look likely to absorb much of the record 6.85 billion euros in net profit that analysts on average expect Allianz to post when it reveals its 2006 earnings on Thursday, even if no sweetener is required. Many investors say Allianz is already paying too much and that the money could have been put towards a share buyback or raising the group's 18 percent dividend payout ratio, which is low compared with its international peers' total payout of 35-40 percent. ((Reporting by Jonathan Gould; editing by Paul Bolding; Reuters Messaging: jonathan.gould.reuters.com@reuters.net; +49 69 7565 1242)) ($1=.7608 Euro) Keywords: ALLIANZ MINORITY/ (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Lloyds TSB considers sale of Abbey Life -report LONDON, Feb 18 (Reuters) - Lloyds TSB (LLOY.L: ) is aiming to put its Abbey Life insurance subsidiary up for sale with an expected price tag of around 1 billion pounds ($2 billion), the Financial Mail on Sunday newspaper said, citing City sources. Lloyds TSB, Britain's fifth-largest bank and biggest provider of unsecured loans, has instructed bankers to draw up a sales prospectus and sound out potential buyers for the life fund that closed to new business in 2000, the newspaper said. It quoted City sources saying potential bidders would be invited to make first round offers in the next few weeks. A Lloyds TSB spokeswoman said the company did not comment on rumour and speculation. Analysts have expected Lloyds TSB, which reports on Feb. 23, to consider selling off this part of its business but a sale is not seen in the short term. Any sale is expected to attract interest from major industry players, including Resolution, Swiss Re and Pearl Group, the Financial Mail on Sunday said. ((Reporting by Rachel Sanderson, editing by Greg Mahlich; London newsroom, +44 20 7542 7717, Fax: +44 20 7542 9025)) ($1=.5131 Pound) Keywords: LLOYDS ABBEY/SALE © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Citigroup says considering listing on Tokyo bourse TOKYO, Feb 19 (Reuters) - Citigroup (C.N: ) said on Monday it was considering listing on the Tokyo Stock Exchange as part of its efforts to expand in Japan. Last month, the U.S. financial conglomerate announced plans to form a Japanese holding company and double its retail branch network in the country. Listing on the Tokyo bourse would allow it to make acquisitions more easily, opening another route to growth in the world's No.2 economy. "Citigroup is committed to Japan for the long term and has been reviewing its business strategies which could include listing Citigroup on the TSE," the bank said in a statement. It said nothing had been decided. Citigroup was responding to a report on Sunday in the Nikkei business daily that quoted an unnamed Citigroup executive as saying the bank had started preparations to list its deposit receipts (DRs) on the TSE. The listing, which would allow investors in Japan to buy and sell Citigroup shares indirectly, was expected later this year, the Nikkei said. Citigroup is seen as a top candidate to buy Japan's Nikko Cordial Corp. (8603.T: ) if the TSE decides next month to revoke the scandal-hit brokerage's share listing. The bourse is considering whether to delist Nikko, Japan's third-largest brokerage, over accounting problems at its merchant banking unit. Citigroup owns about 5 percent of Nikko and the two companies share an investment banking joint venture, Nikko Citigroup. ((Reporting by Jonathan Soble, editing by Michael Watson; Reuters Messaging: jonathan.soble.reuters.com@reuters.net; jonathan.soble@reuters.com; +81-3-3432-8971)) Keywords: CITIGROUP JAPAN/LISTING (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Ex-Merrill bankers aiming to avoid 2nd Enron trial
Fri Feb 16,
2007 8:29PM EST Lawyers for Daniel Bayly, Robert Furst and James Brown told U.S. District Judge Ewing Werlein in Houston that they would like to resolve the case without a second trial. The three men were convicted in November 2004 of conspiracy and fraud charges connected to the sham sale in 1999 of three electricity-producing barges in Nigeria by Enron to Merrill. But in August, the U.S. Court of Appeal for the Fifth Circuit in New Orleans overturned wire fraud and conspiracy convictions against Bayly, Furst and Brown, while upholding Brown's conviction on perjury and obstruction charges. Prosecutors opted not to appeal the higher court's ruling on the convictions, but the three men may be retried on charges related to their participation in the barge deal. "I'm looking for a civil resolution not a criminal resolution," Dan Cogdell, who represents Brown, told reporters after the hearing. Assistant U.S. Attorney Arnold Spencer told the court that only one discussion on the matter had taken place and he was "still in the process of digesting that." Meanwhile, prosecutors are preparing a new, narrower, set of charges in the case. Judge Werlein, describing the case against the bankers as "pretty ancient," urged the government to examine where its money and time are best spent and wished them well in their conversations, adding, "I hope you will be able to be successful." The judge set a new pretrial hearing on the matter for March 29. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. AIG, NY-NJ agency get pact for Newark terminal deal NEW YORK, Feb 16 (Reuters) - The New York-New Jersey Port Authority and American International Group (AIG.N: ) on Friday said they preliminarily agreed to let the insurer buy Dubai Ports World's stake in the Port Newark container terminal. The high-profile deal, which aims to ease security concerns raised last year by the prospect of a company owned by the United Arab Emirates owning U.S. port assets, almost broke down on Tuesday due to the agency's demand for $83 million. The agreement in principle, which must be formally approved by the Port Authority's board, obliges the AIG affiliate making the purchase to invest a minimum of $50 million in the port. ((Reporting by Joan Gralla; Reuters Messaging: joan.gralla.reuters.com@reuters.net; e-mail: joan.gralla@reuters.com; +1-646-223-6345)) Keywords: NEWYORKNEWJERSEY/PORTS (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Bush: fixing health care is "urgent priority" Sat Feb 17, 2007 11:14AM EST By Caren Bohan WASHINGTON (Reuters) - President George W. Bush said on Saturday it was crucial to rein in U.S. health care costs that are surging at twice the rate of wages and urged the Democratic-led Congress to work with him on the issue. "I am confident that if we put politics aside, we can find practical ways to improve our private health care system," Bush said in his weekly radio address. He called health care an "urgent priority" and said rising costs were putting a burden on families and businesses. Some 47 million Americans -- nearly a sixth of the population -- do not have health insurance and there has been a growing movement among states such as California and Massachusetts to try to tackle the problem. In a proposal that received a chilly response from many Democrats, Bush wants to use tax breaks to encourage people who lack health insurance to buy it on their own. The plan would also impose taxes for the first time on some people with the most expensive employer-provided coverage. That has led some prominent Democrats such as New York Rep. Charles Rangel, who chairs the House of Representatives Ways and Means Committee, to criticize it as a tax hike on the middle class. Bush said on radio he was encouraged by a letter sent to him earlier in the week by a bipartisan group of 10 senators offering to work with him on expanding health care coverage. The senators, led by Oregon Democrat Ron Wyden, outlined several goals, including making sure all Americans have access to affordable health care and changing tax rules for health care that "disproportionately favor the most affluent." Bush said he looked forward to hearing more. WYDEN ALSO HAS A PLAN Wyden has introduced legislation for universal health coverage, but the Bush administration has touted its proposal as one that would reduce the number of uninsured without mandating health care for all. "I'm glad the president is talking about health care, and I hope the White House will soon agree to the first item on our bipartisan letter -- you cannot fix American health care without quality, affordable health coverage for all," Wyden said in statement responding to Bush's radio speech. Bush's plan would give all families a standard $15,000 tax deduction for health care. But those with coverage valued above that level would have to pay taxes on the difference. The president said his proposal would provide a "level playing field" for people who have health insurance, whether they buy it on their own or get it through their jobs. But critics, including many labor unions, contend the plan would worsen the problem of the uninsured by eviscerating the system of employer-provided coverage. To highlight his proposal, Bush plans to tour a hospital in Tennessee and meet at the White House with a panel of health care experts next week. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Legislation to Modify Antitrust Exemption for Insurers Could Hurt Consumers and Small P/C Carriers, NAMIC Official Says INDIANAPOLIS (Feb. 16, 2007)—The National Association of Mutual Insurance Companies (NAMIC) strongly opposes legislation to modify the insurance industry’s antitrust exemptions in the McCarran-Ferguson Act. NAMIC believes the proposal is unnecessary and would hurt consumers. “The Insurance Industry Competition Act of 2007, as introduced by Sens. Lott, Leahy and Specter would introduce a system of dual regulation to the insurance industry, ultimately leading to federal regulation of insurance,” said Marliss Browder, NAMIC Senior Federal Affairs Director. “This could threaten the viability of small insurers and lead to reduced competition, higher insurance costs and less availability for some high-risk coverages for consumers.” It is anticipated that identical legislation will be introduced in the House of Representatives by Reps. Gene Taylor, D-Miss., Pete DeFazio, D-Ore., and Bobby Jindal, R-La. Enacted in 1945, the McCarran-Ferguson Act entrusts states with the authority and responsibility to regulate the business of insurance. States regulate virtually every aspect of insurance, from licensing, to market practices, to financial solvency. Additionally, every state has an Unfair Trade practices Act providing the authority to investigate and, if appropriate, correct and punish unfair practices. The existence of the exemption promotes competition in the insurance marketplace by allowing companies to exchange critical data regarding losses and other factors, allows development of standardized policy language, facilitates participation and oversight of state guaranty funds, permits state control over liquidations and enables the development and operation of assigned risk plans. It establishes a careful and well working balance between regulation and antitrust enforcement for the state regulated insurance industry and ensures parity with other financial services industries. The Act does not include a blanket exemption from antitrust laws, but provides a targeted exemption for certain limited insurance activities. The Act has been subject to extensive court interpretation over the past 60 years. Altering it would put the effective functioning of the industry in jeopardy. “Specifically, changes could curtail insurers’ ability to exchange critical data, endangering market participation by smaller insurers and making it more difficult for carriers to enter new markets,” Browder said. “Threats to standardization of policy language would make it more difficult for consumers to compare policies and prices. Barriers to operation of assigned risk plans and guaranty funds would undermine the functioning of insurance markets.” While the proposed legislation would allow exceptions to the federal anti trust laws when the conduct is “within the business of insurance and is pursuant to a clearly articulated policy of a state that is actively supervised by the state,” there is nothing in it to prohibit the Federal Trade Commission from attempting to change state regulatory language. “Congress should be wary of the unintended consequences of changes to the current limited antitrust exemption,” Browder said. “Any change to the existing antitrust regime could decrease market stability, reduce affordability and availability of products, stifle innovation and expansion, diminish industry efficiency, and ultimately, inhibit rather than increase competition in the insurance marketplace.” www.namic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. 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Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Bank Insurance News In Brief - February 19, 2007 TODAY'S BANK INSURANCE NEWS IN BRIEF" is provided each week courtesy of Michael White Associates @ www.bankinsurance.com. To read these stories, visit http://www.bankinsurance.com/editorial/news/default.htm.
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. A.M. Best Comment: January 2007 Renewals – Higher Net Retentions and Peaked Rates OLDWICK, NEW JERSEY, U.S.A., Feb. 16, 2007—A number of European global insurers have recently published their January 2007 renewal experience, which mainly affects European treaties. Most global reinsurers are anticipating strong 2006 earnings, thanks to a benign 2006 catastrophe season but also because of an attractive pricing environment following hurricanes Katrina, Rita and Wilma in 2005. However, these developments are leading to increased competition in the market with ample capacity widely available. In addition, improving capitalisation and earnings are allowing primary insurers to retain more risks—a trend that was already noted at the January 2006 renewals and one that is exacerbating the situation. Notwithstanding this, the softening of premium rates in Europe appears to be moderate, and pricing levels remain favourable. In A.M. Best’s view, global reinsurers continue to instill underwriting discipline and have reduced their exposure to lines of business that they regard as inadequately priced. In addition, SCOR’s improved financial strength has enabled it to regain clients it had lost during financially difficult times. www.ambest.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Alabama Credit Union League First Association in Nation to Provide New Security Breach Program at No Charge ACUL to Provide 81 Credit Unions New Security Breach Service at No Cost BIRMINGHAM, Ala.--(BUSINESS WIRE)--The Alabama Credit Union League (ACUL) announced today that effective immediately it will provide a new Security Breach Response program to 81 of its participating member credit unions at no cost. This decisive move represents a concerted effort on the part of the ACUL to proactively address the possible contingent damages created from future security breaches. The ACUL has partnered with Identity Theft 911, the leading provider of identity theft resolution and educational services, to provide this new service to those of its members belonging to the Credit Union Service Center network and/or those participating in the ACUL Card Services program. www.identitytheft911.com www.acul.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. LifeLock Achieves World’s Highest Security Certification Arizona-based firm is one of the first U.S. companies to become ISO 27001 certified Tempe, AZ (February 19, 2007) – LifeLock, the nation’s first identity theft prevention company, has added another first to its impressive resume. In January the organization became one of the first U.S. companies to achieve ISO 27001 certification, the highest security standard for data handling and processing provided by the International Organization for Standardization (ISO). The ISO 27001 standard sets the requirements for a top-rate Information Security Management System (ISMS). Adhering to this standard helps identify, manage and minimize the range of threats to which information is regularly subjected. www.lifelock.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Medicare Patients: Keep an Eye on Your Insurance Coverage Knee and hip arthroplasty out-of-pocket expenses may increase SAN DIEGO, Feb. 16 /PRNewswire/ -- Medicare recipients who become candidates for total hip or total knee replacement in the next decade will likely see their out-of-pocket expenses increase according to a study presented today at the 74th Annual Meeting of the American Academy of Orthopaedic Surgeons. Medicare represents the single largest payor for hip and knee arthroplasty in the United States and this provider's coverage decisions affect not only patients, but also surgeons, hospitals and taxpayers. www.aaos.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. State-by-State Analysis of Medicare Part D Finds Low-Income Nursing Home Residents Have a Poor Chance of Being Enrolled in the Best Available Drug Plans Most Could Be Enrolled in a Better Plan at No Cost If They Were Allowed to Receive Help From Their Caregivers WASHINGTON, Feb. 19 /PRNewswire-USNewswire/ -- An analysis released today by the Long Term Care Pharmacy Alliance (LTCPA) finds most low-income nursing home residents have a poor chance of being enrolled in the Medicare Part D plan that best covers their medications -- and most could immediately switch to a better plan at no cost if they were allowed to receive help from their caregivers. Under the Medicare Part D prescription drug program, low-income nursing home residents who are "dual eligible" for both Medicare and Medicaid are qualified to have their medicines covered at no cost as long they are enrolled in one of several drug plans recognized as "below benchmark" in cost by the federal government's Centers for Medicare & Medicaid Services (CMS). These "Duals" represent about two-thirds of the nursing home population. The LTCPA analysis finds those below benchmark cost plans vary greatly in terms of the drugs they cover and the restrictions they put on access to those medicines. Using the online plan finder CMS provides to beneficiaries to evaluate drug plans, LTCPA compared how below benchmark cost plans covered 10 drugs commonly prescribed to long-term care residents. The results varied dramatically from very good to very poor. A copy of the full report is available at http://www.ltcpa.org. 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21. Blue Cross and Blue Shield Association Applauds House Bipartisan Effort to Cover Uninsured Children Statement From Scott P. Serota, President and CEO, Blue Cross and Blue Shield Association WASHINGTON, Feb. 16 /PRNewswire-USNewswire/ -- The following is a statement from Scott P. Serota, president and CEO of the Blue Cross and Blue Shield Association: The Blue Cross and Blue Shield Association (BCBSA) applauds Rep. Rahm Emanuel's leadership of a bipartisan effort in the U.S. House of Representatives to expand health coverage options for America's uninsured children. The proposal builds on the recommendations of the Health Coverage Coalition for the Uninsured (HCCU), a coalition comprised of BCBSA and 15 other influential national organizations. The HCCU recommendations call for a balanced, private/public sector approach to expand healthcare coverage, starting with children. According to current estimates, about 74 percent of uninsured children are already eligible to receive benefits under the State Children's Health Insurance Program (SCHIP) -- under current rules -- but are not enrolled. This proposal would expand SCHIP by streamlining the enrollment process, setting up a "one-stop shopping" system, and providing new tax credits to reach a large number of America's children who do not have health insurance. BCBSA is committed to working with this bipartisan group and others to advance solutions to reduce the number of Americans without health insurance. www.BCBS.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Newly Enhanced myCIGNA.com Launched Personal CIGNA HealthCare Member Website Adds Features, Resources BLOOMFIELD, Conn., Feb. 19, 2007 /PRNewswire-FirstCall/ -- Today CIGNA HealthCare has launched a complete redesign of its member Website, http://www.myCIGNA.com. The revamped site offers CIGNA HealthCare members quicker and easier access to their personal health information, plan benefits and transactions detail, and quality and/or cost information for hospitals, outpatient facilities, specialists and prescription medications tailored according to the individual member's health and plan. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. AAA Announces Membership of 50 Million at Start of Today's Daytona 500 Race One in Four Drivers Now Belongs to Nation's Largest Paid-Membership Group DEARBORN, Mich., Feb. 19 /PRNewswire/ -- AAA, founded 105 years ago by a handful of fledgling automobile clubs, marked the start of the 49th running of the NEXTEL Cup Daytona 500, in which rookie driver David Ragan piloted the No. 6 AAA Ford Fusion, by announcing it now serves 50 million members. Today's announcement means AAA retains its title as the largest public service, paid- membership organization in North America. www.AAA.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. BCBSM and U-M Health System launch Michigan HealthQuarters, a New Organization Devoted to Improving Michigan's Health Care Joint venture created as part of M-CARE sale begins search for its first executive director and undertakes U-M employee diabetes quality project as its first effort ANN ARBOR, Mich., Feb. 19 /PRNewswire/ -- A new Michigan organization is dedicated to improving the quality of the state's health care system, and transforming the way patient care is delivered in the state and beyond. Called Michigan HealthQuarters LLC, it is a joint venture of Blue Cross Blue Shield of Michigan and the University of Michigan Health System.www.med.umich.edu www.bcbsm.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. John Hancock Launches Venture Vision(R) Level Load Variable Annuity BOSTON, Feb. 16 /PRNewswire-FirstCall/ -- John Hancock Annuities has announced the addition of the Venture Vision variable annuity to its product lineup. Venture Vision, which unlike many deferred annuities does not impose a surrender charge on withdrawals, became available through John Hancock's distribution network in most states effective Monday, February 12. "Venture Vision's structure, commonly referred to as 'C-Share' or 'Level Load,' will broaden the appeal of our products to those customers who want the benefits of a variable annuity, but prefer to retain the flexibility of the no back-end sales charge design," said Hugh McHaffie, President of John Hancock's Wealth Management Group. www.manulife.com www.jhannuities.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. John Hancock Re-Prices its Accumulation Universal Life Insurance Product BOSTON, Feb. 16 /PRNewswire/ -- John Hancock has re-priced its Accumulation UL policy, a universal life insurance policy designed to meet the needs of high net worth individuals and business owners who are seeking death benefit protection and the potential to accumulate significant policy cash value. With its improved pricing, the new Accumulation UL offers better cash value accumulation potential, attractive retirement income and high early surrender values, at all ages and funding patterns. www.manulife.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. The New Protector of Independent Women: Long Term Care Insurance KIRKLAND, Wash., Feb. 16 /PRNewswire/ -- As a growing number of women live alone, millions must look out for themselves without a partner to assist them. They can handle it, but what if they have a spell of bad luck, like Paula Taylor? Ms. Taylor, a single professional woman, suddenly found herself in a wheelchair after an accident, unable to walk or work for several months. "How can independent women like Paula look out for themselves when they're incapacitated?" says Cameron Truesdell, CEO of LTC Financial Partners LLC, the nation's most experience long term care insurance brokerage. "Where does the money come from to get them though the down times?" www.ltchotline.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. ABA Insurance Program Introduces Privacy Liability And Expense Coverage For Community Banks WASHINGTON, February 19 – The American Bankers Association today announced that the ABA-sponsored insurance program, underwritten by Progressive Casualty Insurance Co., has introduced a new privacy liability and expense coverage to address bankers’ concerns regarding privacy and identity theft issues. The new product covers banks’ liability arising from unauthorized access to confidential customer data and also provides reimbursement for expenses incurred by banks when notifying customers, reissuing accounts and providing credit monitoring services to monitor potential fraud. The ABA-sponsored insurance program, which celebrates its 20-year anniversary this month, offers directors and officers’ liability, financial institution bond, Internet banking liability, employment practices liability and other related insurance products for community banks. The program will also deliver checks this month to 900 ABA member banks sharing $4.5 million in profits from the American Bankers Professional and Fidelity Insurance Company, the bank-owned, mutual insurance company that reinsures the program. www.aba.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. Insurance Commissioner Steve Poizner Announces Orange County Insurance Fraud Arrests ORANGE COUNTY – Insurance Commissioner Steve Poizner announced today the arrests of five people in four separate cases of insurance fraud in Orange County. “Today’s announcement of multiple arrests illustrates that we will find fraud wherever it exists,” said Insurance Commissioner Steve Poizner. “Our investigators are combing through the county, in search of those who seek to fleece the system. If you cheat the system, you could be next.” The arrests include: • The arrest of an Irvine man for filing an insurance claim for rental car payments he allegedly made to himself. James Toufic Assali, 32, was arrested at his residence on January 23, 2007 by the Irvine Police Department on three felony counts of Insurance Fraud, and one felony count of Attempted Grand Theft. Assali was booked into the Orange County Jail, and his bail was set at $20,000.00. According to Orange Regional Office of the CDI Fraud Division Investigators, James Toufic Assali submitted a fraudulent rental car invoice to Infinity Insurance claiming $5,235.00 in rental charges. The invoice showed payment for the vehicle was to be made to “Fortis Rental Solutions.” When Assali was questioned about the invoice, he said he never heard of the company Fortis Rental Solutions and that his wife had made all of the car rental arrangements. During the CDI investigation, documentation discovered indicated that Fortis Solutions was a company that was registered and owned by James Toufic Assali since November 20, 2003. A pre-trial hearing is set for Assali in February 2007. • The arrest of an Irvine couple, Cynthia Irvine, 43, and Barry Irvine, 45, on three felony counts of insurance fraud. According to CDI Investigators, on June 13, 2006, Cynthia Irvine backed out of a parking space and struck another vehicle, causing property damage and alleged injuries to both occupants. After the accident, she called the Automobile Club of Southern California and obtained insurance coverage for her vehicle, as she was uninsured at the time of the accident. Later that same evening, Barry Irvine called the other party and informed them that he and his wife were uninsured and asked them to report a loss date of June 14, 2006, as that was the date their policy would take effect. However, the other party had already reported the loss on June 13, 2006 to their own carrier, Ameriprise Insurance. Cynthia then called Automobile Club and informed them that she had been in an accident. However, she reported the date of loss as June 14, 2006, the date her new automobile policy took effect. Bail was set at $20,000 each. A pre-trial hearing is set for the Irvines in February 2007. • Oscar Godinez, 23, arrested on January 25, 2007 in Anaheim and transported to the Orange County Jail in Santa Ana. He was charged with four felony counts of Insurance Fraud; two misdemeanor counts of Falsely Reporting a Crime; and one misdemeanor count of Hit and Run with Property Damage. Bail was set at $30,000. According to Investigators, on July 11, 2006, Oscar Jimenez Godinez crashed his vehicle into a parked/unoccupied vehicle in the city of Santa Ana, fled the scene of the accident and returned to his home. Godinez then called the Santa Ana Police Department and reported that his vehicle had been stolen from his residence. On the same day, Godinez also called his insurance company, AIG Insurance, and reported that his vehicle had been stolen from his home. During the CDI investigation, Godinez admitted that he was involved in the hit- and- run accident. A pre-trial hearing is set for Godinez in February 2007. • Julie Jo Lagos, 29, was arrested at her residence in Brea, CA on January 25, 2007, and charged with six counts of Insurance Fraud and one count of Hit- and- Run. Bail has been set at $25,000.00. If convicted, Lagos could be sentenced to up to five years in state prison. According to investigators with the Orange Regional Office of the CDI Fraud Division, Julie Lagos was involved in an auto collision on April 13, 2006. At the time of the collision, Lagos was uninsured because her policy had been cancelled due to non-payment. Minutes after the collision, Lagos contacted Auto & Home Insurance Plus and purchased a new policy by telephone but failed to disclose to Auto & Home Insurance Plus that she had been involved in the collision. On April 20, 2006, Lagos contacted her insurance company to report that she had been in a traffic collision April 13, but misrepresented the time of the collision so she could claim it on her insurance. Lagos made numerous misleading statements in support of the claim, including that she was not in the area at the time of the hit-and-run. Witness statements and a check of Lagos’ employment records indicated that she was, in fact, in the area of the collision when it occurred. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. Feeding your brain: new benefits found in chocolate Mon Feb 19, 2007 6:22AM EST By Julie Steenhuysen SAN FRANCISCO (Reuters) - As if people needed another excuse to like chocolate, new studies suggest a specially formulated type of cocoa may boost brain function and delay decline as people age, researchers said on Sunday. Scientists, speaking at the annual meeting of the American Association for the Advancement of Science in San Francisco, presented results from early studies testing the effects on the brain of flavanols, an ingredient found in cocoa. Funded by candy maker Mars Inc., which provided a specially formulated liquid cocoa concoction for the research, the studies suggest that flavanols increase blood flow to the brain and may hold promise for treating some vascular impairments. Mars, a private company, has made a study of the health benefits of cocoa. Its CocoaVia line of chocolates, made with a process that retains flavanols, have been shown in clinical trials to have benefits for the heart. The latest research also suggests benefits for the brain. Ian Macdonald of Britain's University of Nottingham Medical School, conducted a small brain imaging study on young, healthy women to see whether flavanol-rich cocoa helped boost cognitive function during challenging mental tasks. Although the beverage did not improve their performance on the tests, it did increase blood flow to their brains for a two to three-hour period, Macdonald said. He believes more research might show that increased blood flow could benefit older adults and those who have cognitive impairments, such as fatigue or even mini-strokes. A U.S. study of healthy adults over 50 also found a marked rise in blood flow. It was conducted by Harvard Medical School researcher Dr. Norman Hollenberg, who has studied the effects of cocoa and flavanols on Panama's Kuna Indian population. Hollenberg believes that, while promising, the brain benefit needs to be verified. "The only way we can prove something is working is a large clinical trial," he said. Meanwhile, the researchers cautioned against rushing out to binge on the special Mars line of chocolates. "It is a modest calorie load but it is a calorie load," Macdonald said. "As long as you are doing something to earn that 100 calories, then that's fine." © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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