Daily Quote: Change your thoughts and you change your world." - - Norman Vincent Peale
Stocks plunge on fears about China and growth Tue Feb 27, 2007 5:01PM EST - By Ellis
Mnyandu - With an hour left to trade, the Dow Jones industrial average fell more than 500 points as investors pummeled stocks with the biggest exposure to Chinese demand, including Caterpillar Inc., whose shares slid 3.6 percent. But by the close, the Dow had cut some of that loss. Traders said the late-hour slide may have been triggered by program trades heading toward the close. Tuesday's sell-off wiped out the year's gains for all three major U.S. stock indexes. "There seems to be just an air of nothing is safe anymore, there's nowhere to go and people are rotating into bonds as a safe haven," said Andre Bakhos, president of Princeton Financial Group in Princeton, New Jersey. The Dow Jones industrial average slid 416.02 points, or 3.29 percent, to 12,216.24. The Standard & Poor's 500 Index was down 50.33 points, or 3.47 percent, at 1,399.04. The Nasdaq Composite Index was down 96.65 points, or 3.86 percent, at 2,407.87. For the year to date, the Dow was down about 2 percent, while the S&P 500 was down about 1.36 percent and the Nasdaq was down about 0.31 percent. On Tuesday, the die for the trading day was cast when China's Shanghai Composite Index dropped almost 9 percent on fears that the government would crack down on speculation that has driven stock prices there to record highs. Before Wall Street's opening bell, there was more bad news. A government report showed a much bigger-than-expected drop of 7.8 percent in January's new orders for U.S.-made durable goods, which added to concerns about a slowdown in economic growth. Durable goods are big-ticket items, including home appliances and computers, intended to last three years or more. In one sign of how shaken investors were, the CBOE Volatility Index, known as Wall Street's "fear gauge," surged 70.5 percent to a session high at 19.01 and then retraced its steps a bit to end at 18.31, a gain of 64.2 percent. At one point, the Dow fell as much as 546.20 points, or 4.32 percent, to a session low at 12,086.06. Howard Silverblatt, senior index analyst at Standard & Poor's, said the stock market's tumble wiped out more than $430 billion in the S&P 500 stock values, narrowly matching the value of share buybacks by S&P 500 companies last year. All 30 stocks in the blue-chip Dow average finished in the red as investors dumped shares of companies with big exposure to the Chinese economy. During the session, all three major U.S. stock indexes broke below their 60-day moving averages -- a sign that the momentum that has carried U.S. stocks through a record run higher from July has begun to stall. Exxon Mobil Corp. was the biggest decliner in both the Dow and the S&P 500, with its stock falling 4.7 percent, or $3.57, to $71.83 on the New York Stock Exchange. Caterpillar Inc., the U.S. heavy equipment maker that does extensive business in China, dropped 3.6 percent, or $2.43, to $64.83, also on the NYSE. The Philadelphia Stock Exchange's semiconductor index ended down 3.1 percent, its second sharpest one-day slide this year. Shares of technology bellwether Cisco Systems Inc. dropped 5.6 percent, or $1.53, to $25.71. The stock was among the biggest losers in both the Nasdaq 100 and the S&P 500. Volume was heavy on the NYSE, where about 2.41 billion shares changed hands, well above last year's estimated daily average of 1.84 billion. On the Nasdaq, about 3.02 billion shares traded, sharply exceeding last year's daily average of 2.02 billion. The market's breadth was overwhelmingly negative, with more than six stocks falling for every stock that rose on the NYSE. On the Nasdaq, more than 10 stocks slid for every one that gained. (Additional reporting by Emily Chasan) © Reuters 2007. All rights reserved. 1. The Hurricane Law Group Announces Class Action Lawsuits Against Allstate Floridian Insurance Co., Citizens Property Insurance Corp. and State Farm Florida Insurance Co. Lawsuits Seek an Estimated $100 Million in Payments for Building Permits for Floridians Whose Homes Sustained Hurricane Roof Damage BOCA RATON, Fla.--(BUSINESS WIRE)--The Hurricane Law Group today announced that it has commenced class action lawsuits against Allstate Floridian Insurance Co. (“Allstate”), Citizens Property Insurance Corp. (“Citizens”) and State Farm Florida Insurance Co. (“State Farm”) on behalf of Floridians whose homes were insured by these providers during the past five years and who suffered roof damage caused by a hurricane or other natural disaster. While similar in nature, a separate suit was filed against Allstate, Citizens and State Farm (three suits in total) in Florida State Court. The common allegation in each lawsuit is that the named insurance provider failed to pay and/or properly adjust claims in Florida by ignoring requirements to obtain a building permit prior to commencing roof repair or replacement. The result of this failure is that policyholders were undercompensated for their losses by not being paid for permitting costs. The three suits combined will impact an estimated 200,000 policyholders who were not paid for building permits for damages suffered during the various hurricanes which ravaged Florida over recent years. A copy of each suit is available at www.hurricanelawgroup.com. “It is common knowledge that a building permit is required for roof replacement in Florida,” stated Paul Berger, Managing Attorney of the Hurricane Law Group. “A building permit can cost anywhere from $100 to $1000 or more. By failing to pay for 200,000 building permits, we estimate that Allstate, Citizens and State Farm have profited perhaps as much as $100 million at the expense of the citizens of this state.” “It is unconscionable that these insurance providers are not paying for building permits as required under the terms of their policies,” continued Berger. “Allstate and State Farm are enjoying record profits at the expense of Floridians who are still recovering from years of devastating natural disasters. They spend millions telling us that `we are in good hands' or `like a good neighbor' they are there when we need them, however, as alleged in the suits, we believe that their actions are the exact opposite and that they are putting corporate profits ahead of policyholders.” Allstate, Citizens and State Farm are the three largest homeowners insurance providers in Florida. Collectively they insure millions of Floridians across the state and collect billions in annual insurance premiums. While these suits were brought in Florida on behalf of Florida policyholders, the Hurricane Law Group believes that Florida may be just the tip of the iceberg, and it is likely that similar non-payments were made in other states costing policyholders perhaps as much as $1 billion in lost insurance proceeds. The firm is currently conducting an investigation into practices in other states. The Hurricane Law Group strongly suggests that all Floridians who suffered hurricane or tornado damages review their insurance claim summaries to see if they were compensated for their permit costs. The firm is offering a free consultation with an attorney to review damage evaluations for anyone who believes that they were underpaid or has any questions on their claim or how the lawsuits may impact them. Floridians can call toll free 1-888-FLA-CLAIM (888-352-2524) to arrange an attorney review. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Marsh CEO Urges World’s National Oil Companies to Address Risks DUBAI, U.A.E.--(BUSINESS WIRE)--As the national oil companies and their control of at least 80 percent of the world’s known oil reserves continue to grow in importance, they face a number of risks that must be addressed strategically, according to Marsh, the world’s leading risk and insurance services firm. Speaking at the opening of the Marsh National Oil Company conference in Dubai today, Brian Storms, Chairman and CEO of Marsh Inc, said: “The world’s desire for environmentally-friendly energy sources appears to be rising faster than global temperatures. This is a growing risk to all energy producers – one that goes well beyond a fire at a plant, or a tanker that runs aground. What’s important for you as large producers of hydrocarbons is to view this risk honestly and address it strategically. “The normal tendency would be a bias for action, where you might jump to a tactical, defensive position. But there is a ‘new world’ view of risk – specifically, how to find opportunity in the kind of global changes we’re seeing…where risks and potential liabilities can be turned into a competitive advantage over those companies that don’t move to address them.” In his speech, Mr Storms cited the example of a major energy client, with significant assets in the northern hemisphere, which undertook a comprehensive risk assessment and prioritization exercise. While previously the subject of climate risk had only been an abstraction, the review found that potential impact of climate change represented massive exposures. With many facilities situated either on areas of permafrost or in proximity to the arctic ice shelf, a potential thawing induced by climate change would present significant new risk. Understanding this risk and prioritizing its potential impact, allowed the client to take measures to address it. Mr Storms also cited other potential risks faced by national oil companies including the potential for a terrorist act to halt distribution, the effects of a major natural disaster on production, the concentration of supply chains – especially due to the threat of avian flu as well as a variety of operational risks, reputation risks, strategic risks and financial risks. Mr Storms added: “Frankly, insurable risks, while frequently complex, are the easiest to plan for. Uninsurable risks – climate change, for example – require far more foresight and creative solutions. Among the most vital elements of this risk identification process is the analysis of the value chain. That requires mapping and dissecting supply and distribution networks to understand every potential point of failure. We have the capability to deliver value to a company that goes beyond the pure placement of insurance.” www.marsh.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. China stocks plunge 8.8 percent By Andrew Torchia - SHANGHAI (Reuters) - Chinese stocks plunged nearly 9 percent on Tuesday, erasing about $140 billion of value in their biggest fall for a decade, amid fears that authorities would crack down on speculation that drove shares to record highs. Traders said the slide did not appear to be triggered by concrete news. Institutions scrambled in hectic trade to lock in large gains made early this month, while some funds sold to raise money to pay dividends in March. The tumble came a day after the main index jumped to an all-time high, bringing its gains for this year to 14 percent. The market soared 130 percent last year, making it the world's best-performing major market. "This kind of terrifying fall means the market has become abnormal," said analyst Chen Huiqin at Huatai Securities, adding that shares could take a while to stabilize even if negative rumors about government policy proved false. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. No easy exit from commodities for pension funds Tue Feb 27, 2007 9:37AM EST By Jane Merriman LONDON (Reuters) - A slide in oil and other commodity prices early this year has fed speculation that big money investors have fled these markets -- but longer term players are happy to sit tight. Analysts say hedge fund activity contributed to the dive in oil prices from a record of $78.40 for U.S. crude in July last year to a 20-month low of $49.90 in January. But pension funds, insurance companies and other institutional investors do not move in and out so quickly. These investors have long-term horizons and can take months or even years to enter a new market and probably take just as long to leave. "Pension funds are a slower breed than most," said Mark Mathias, chief executive of boutique commodity fund manager Dawnay Day Quantum. In any case it is premature to talk of these funds getting out of commodities when in most cases the institutional investors have only just decided to enter the asset class. Paul Horsnell, Head of Commodities Research at Barclays Capital, estimated only about a third of one percent of invested assets was in commodities as opposed to stocks and bonds. "For every 1,000 pounds ($1,956), you get three pounds in commodities...Somehow there is a debate about a stampede," he said. "It's always in commodities we have stampede and panic talked about." Horsnell said there was a tendency to lump together short-term investors such as hedge funds with institutions with a longer view. VOLATILITY Commodities -- such as oil, metals and agricultural products -- have a reputation for extreme price volatility that appeals to speculators with an appetite for big risks. These assets have become more mainstream in investment terms in the past two to three years as their value in diversifying a portfolio has become increasingly established. "I think commodities have developed over the last 2-3 years as a more general asset," said Olivier Jakob of oil market research consultancy Petromatrix. But he said pension funds with a multi-year investment horizon would not react to changes in prices over a single month. "Commodities can offer good returns and they are also part of the diversification of the portfolio." Pension funds do detailed research before they make investment choices and have to get trustees to agree to any changes in strategy or investment in a new area. Most British pension funds, for example, still have to make the decision to come into commodities, unlike some of their counterparts in continental Europe. But last year J Sainsbury, Britain's third biggest food retailer, as well as fund manager Hermes, which manages BT Group's pension fund, said they would take the plunge. "Insurance companies and pension funds have very long investment horizons -- 30 years or so," said Torsten de Santos, of Barclays Capital. He said once they have invested, even a negative performance would not see them leave immediately, since they rebalance portfolios on a quarterly or annual basis and they might even inject more money if prices are low. A Barclays Capital survey of institutional investors points to assets under management in commodity products reaching $120-$150 billion by the end of 2008, assuming $100 billion currently invested. Pension funds and insurers have got into commodities via indexes such as the Goldman Sachs Commodities Index, which has been heavily weighted to energy. Money invested in commodity indexes is estimated to have risen to around $110 billion from around $70 billion at the end of 2005. But last year returns from index-style investing in oil suffered from the structure of the market, where the nearby contracts were at a discount to those for future months because of plentiful supplies -- known as a contango. The contango has already narrowed and could shrink further if oil inventories decline. "We have a chance to see a much more positive environment for investing in indexes compared with last year," said Jakob. "If stocks continue to draw down we should see a further narrowing of the contango and in that case it then becomes a no brainer to be in a passive index." © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. CalPERS Launches Prefunding Plan for Retiree Health Benefits SACRAMENTO, Calif.--(BUSINESS WIRE)--The California Public Employees’ Retirement System (CalPERS) today announced the creation of a new trust fund that allows public employers that contract with CalPERS for employee health benefits to prefund the future cost of their retiree health insurance benefits and other post-employment benefits (OPEB). Called the California Employers’ Retiree Benefit Trust Fund, the prefunding plan allows participating employers to make regular periodic contributions into the trust fund. The contributions are invested so that they will grow. In the future, participating employers will be able to use investment earnings to pay for retiree health benefits, similar to the CalPERS pension plan in which three out of four dollars paid for retirement benefits come from investment earnings instead of current taxpayer dollars and employer contributions. “Public employers recognize that prefunding their future retiree health benefit costs is responsible financial management,” said CalPERS Board President Rob Feckner. “CalPERS has a proven track record of outstanding investment returns at very low cost.” In addition to health insurance, other post-employment benefits can include dental, vision, hearing, and other health-related benefits. They can also include life, disability, and long-term care insurance. A new government accounting rule called Governmental Accounting Standards Board Statement 45 (GASB 45) requires government employers to begin reporting future OPEB liabilities in their financial statements. Unlike retirement benefits, which are prefunded, most public employers currently pay their retiree health insurance premiums annually, referred to as “pay-as-you-go.” Prefunding these costs allows employers to assume higher investment returns, which results in lower annual expenses and a smaller unfunded liability for OPEB costs. “There is no question that prefunding future retiree health benefit costs offers many benefits to public employers,” said George Diehr, Chair of the CalPERS Board’s Health Benefits Committee. “The CalPERS prefunding plan offers expertise, experience, and excellent value to our employers.” www.calpers.ca.gov Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. Market Street Advisors Joins DTCC’s Growing Service for Managed Accounts NEW YORK--(BUSINESS WIRE)--The Depository Trust & Clearing Corporation (DTCC) announced today that Market Street Advisors has joined the list of firms linking to DTCC’s new Managed Accounts Service, a centralized platform that streamlines communications and reduces risk associated with opening and maintaining managed accounts. Other firms participating in a pilot of this new service include Citigroup Smith Barney, the industry’s largest managed accounts sponsor, Citigroup’s Global Transaction Services and Vestmark. Managed accounts encompass a variety of financial products designed for high-net-worth investors that include separately managed accounts, multi-style portfolios, and unified managed accounts, among others. The market is growing rapidly – assets rose 25% in 2006 to $856 billion, and forecasts project assets will reach $1.5 trillion by 2011. Currently, the work flow that occurs among investment managers, sponsoring broker/dealers and service providers is based on faxes, phone calls and the manual movement of paper. DTCC’s Managed Accounts Service will automate that communication and link all trading parties through one connection to a central platform. www.dtcc.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. USI Holdings Corporation Closes Acquisition of H.W. Gates Agency, Inc. BRIARCLIFF MANOR, N.Y.--(BUSINESS WIRE)--USI Holdings Corporation (NASDAQ: USIH) today announced the acquisition of Memphis, TN-based H.W. Gates Agency, Inc. ("Gates"). Gates provides property & casualty insurance products and services to businesses throughout the Memphis Metro area. Gates is expected to contribute approximately $1.0 million of revenues to USI on an annual basis. www.usi.biz Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. GMAC Insurance to Offer Specialized RV Coverage Through Independent Agents Across the Nation America’s #1 RV Insurance Specialist Provides Unique Coverage Designed Specifically for RVs ST. LOUIS--(BUSINESS WIRE)--Today, GMAC Insurance announced the nationwide rollout of its specialized RV insurance through independent agencies. The move comes as part of a GMAC Insurance initiative to expand its product offerings sold through approximately 10,000 independent agencies across the country. As America’s No. 1 RV Insurance Specialist1, GMAC Insurance has sold its RV insurance directly to RVers since 1978. Over the past decade, RVing has become an enormously popular hobby, with approximately 1 in 12 American households owning RVs. GMAC Insurance is now providing these consumers with another convenient way to purchase its RV coverage – from their trusted local independent agent. What’s more, customers can reduce their premiums by as much as 20% by purchasing their automobile and RV insurance on one GMAC Insurance policy. www.gmacinsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. House Majority Leader To Speak To Big “I” Hoyer will address agents on April 26 WASHINGTON, D.C., Feb. 26, 2007—House Majority Leader Steny Hoyer (D-Md.) will speak to members of the Independent Insurance Agents & Brokers (the Big “I”) during its Legislative Conference & Convention in April. With more than 1,200 independent agents and brokers from across the country in attendance, Hoyer will be a featured speaker at a breakfast on April 26 along with House Minority Whip Roy Blunt (R-Missouri). The Big “I” Legislative Conference & Convention is the insurance industry’s premier legislative meeting. This year’s event will take place April 25 through 27 at the Marriott Wardman Park Hotel in Washington, D.C. www.independentagent.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Demystifying Operational Risk - 2007 Global Seminar Schedule In response to strong client interest, we have decided to hold another nine Demystifying Operational Risk seminars across the globe in 2007. These seminars are being organized in partnership with OpRisk & Compliance magazine. As you may know, our two-day seminars are almost universally regarded as the best and most comprehensive practical training on operational risk management available in the industry. All our seminars follow the same program so please choose the date and location that is most convenient for you. Here is the full schedule of events for 2007: New York - April 4, 5 Rome - May 7, 8 - Bangkok - June 13, 14 Johannesburg - June 20, 21 Sao Paulo - August 15, 16 Toronto - September 19, 20 Singapore - October 22, 23 Frankfurt - November 8, 9 Dubai - November 22, 23 Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. U.S. Risk Acquires E.M. Morrow Agency Dallas, Tex. — Feb. 27, 2007 — U.S. Risk Insurance Group, Inc. (www.usrisk.com), today announced that it has expanded its California operations by acquiring E.M. Morrow Insurance General Agency, Inc., in Oakland, Calif. E.M. Morrow has served the California property and casualty market for 30 years, specializing in property and general liability coverages for a variety of risk. The agency's management, including principal David Barkley, will continue to operate the agency. It will become a subsidiary office of U.S. Risk of California, Inc., which does business as USRisk Brokers Insurance Services, Inc., and is headquartered in Irvine, Calif. www.usrisk.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Sales Targets Are Missed by More Than Half the Sales Team In 50% of Companies Globally: TAS Index Global Study Europeans Tops in Sales Effectiveness; Sales Management, Reps Disagree on What’s Working; Methodology Users Strong Performers SEATTLE--(BUSINESS WIRE)--The TAS Group, the world leader in sales effectiveness solutions, today released results of its TAS Index Global Sales Effectiveness Benchmark Study 2007, which shows that in 50% of companies globally, less than half of the sales team achieves its sales targets. In addition, the report notes that American salespeople lack deal-closing skills compared to their European and Asian counterparts. It also finds that sales management and sales reps have widely differing perspectives on what’s working and what’s broken, salespeople employing sales methodologies perform much better than those who don’t, notes which industries have the most effective sales teams – and which are the worst, and more. The TAS Index ™ is a global barometer of sales productivity and effectiveness. The TAS Index Global Sales Effectiveness Benchmark Study 2007 helps sales leaders determine the absolute and relative effectiveness of their sales organizations. See today’s other announcement, The TAS Group Introduces TAS Index: First Global Sales Effectiveness Benchmark System. The TAS Index is being made available to companies at no cost at www.tasindex2007.com. www.thetasgroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. “The Travelers Companies, Inc.”, “TRV” and Travelers Red Umbrella Now Official SAINT PAUL, Minn.--(BUSINESS WIRE)--The St. Paul Travelers Companies, Inc. (NYSE:STA) has changed its name to The Travelers Companies, Inc. and will begin trading on the New York Stock Exchange under the ticker symbol “TRV” (NYSE:TRV) immediately following the opening bell on Tuesday morning, Feb. 27, at 9:30 a.m. EST. In addition, the company has closed its previously announced agreement to reacquire the familiar red umbrella trademark from Citigroup Inc. Travelers will immediately begin to phase in the red umbrella logo in its advertising and marketing materials, although the company does not expect to complete the transition for a number of months. www.travelers.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. XL Capital Ltd Announces $1 Billion Share Repurchase Program HAMILTON, Bermuda, Feb. 26 /PRNewswire-FirstCall/ -- XL Capital Ltd (NYSE: XL) (the "Company") today announced that on February 23, 2007, the Board of Directors (the "Board") of the Company approved a new share repurchase program, authorizing the Company to repurchase up to $1 billion of its Class A ordinary shares. The Company expects the purchases to be made from time to time in the open market or in privately negotiated transactions, and that such repurchases will be funded from cash and/or the proceeds from the issuance of securities. The timing and amount of the share repurchases under the program will depend on a variety of factors, including market conditions, legal requirements and other factors. The repurchase program may be modified, extended or terminated by the Board at any time. The new repurchase program includes the unused dollars ($135.4 million) allocated to the share repurchase program authorized by the Board in January of 2000. www.xlcapital.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. First Command Offers Six Financial Tips for the Newly Single FORT WORTH, Texas--(BUSINESS WIRE)--If your marriage has ended and you’re single again, make sure all your financial arrangements reflect your new status. First Command Financial Services offers a few tips to help you get your new financial life off to a good start. Tip #1: Change Your Beneficiary. A divorce may not have an automatic effect on beneficiary designations. So, unless you want your ex-spouse to get all your money, make sure you change beneficiary designations on your retirement accounts and life insurance policy and in your will. Tip #2: Remove Your Spouse’s Name from Joint Credit Card Accounts. You also should notify credit bureaus of your divorce so that future reports will be based only on your credit use. Tip #3: Adjust Your Investment Strategy. If your investment goals have changed, you may want to shift your assets into less — or more — risky investments. Also, make sure the amount and frequency of your investments are appropriate for your new income and goals. Tip #4: Review Your Retirement Plans. Your retirement years may look very different without your spouse in the picture. You may want to start making additional contributions to your 401(k) or IRA to maintain your current lifestyle after retirement. Tip #5: Make Sure the QDRO Is Received. If your divorce settlement determined how future pension and/or retirement plan benefits will be divided, your ex-spouse’s employer may need to receive a Qualified Domestic Relations Order (QDRO). Make sure the plan administrator gets the QDRO so you’ll be able to receive your benefits. Tip #6: Contact the Social Security Administration. Even though your marriage ended, your ex-spouse’s work record may entitle you to receive additional benefits. www.firstcommand.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Guardian and Health Net Transition Healthcare Solutions Brand to Health Net NEW YORK--(BUSINESS WIRE)--The Guardian Life Insurance Company of America (Guardian), a leading provider of employee and voluntary benefits to small and mid-sized companies, and Health Net, Inc. (NYSE:HNT), among the nation’s largest publicly traded managed health care companies, today announced their plans to transition the Healthcare Solutions brand and medical product membership over to Health Net. Following receipt of regulatory approval, the companies expect to complete the transition in the third quarter of 2007. Terms of the transaction were not disclosed. The Guardian-Health Net joint venture markets products under the Healthcare Solutions (HCS) brand, focusing exclusively on small group customers – companies in New York, New Jersey and Connecticut with between 2 and 50 employees. The HCS product has been distributed by Guardian and utilizes Health Net’s provider network, with administrative services split between the companies. www.healthnet.com www.GuardianLife.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. News From USW: USW Obtains Payment to Retirees of General Fireproofing After Many Years, Retirees to Finally Receive $840,000; More to Come YOUNGSTOWN, Ohio--(BUSINESS WIRE)--News From USW: The United Steelworkers (USW) today said that the hourly retirees of General Fireproofing are receiving $840,000 on a claim advanced by the USW to account for the value of negotiated health insurance benefits terminated shortly after the company entered Chapter 11 Bankruptcy in 1990. The USW expects a second disbursement to retirees later this year, though the amount has not yet been determined. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Producers Not Selling Long-Term Care Insurance To Be Focus Of Industry Association Meetings California LTC Sales Summit To Kick-Off Nationwide Campaign The vast majority of insurance agents and brokers who sell life, health, Medicare Supplement, annuity and investment products still do not offer long-term care insurance to their own clients. To meet the growing consumer interest in the product, the American Association for Long-Term Care Insurance has scheduled a series of 1-day training programs specifically for non-LTC specialists interested in simplified selling. The first two conferences will be held in California on April 10 and 12, 2007. "Between 80 and 90 percent of long-term care insurance policy sales today are made by producers who sell only one or two policies a year typically to their own clients," states Jesse Slome, executive director of the Association. "Most producers are unaware of the significant tax and product changes that have occurred in the past 12 months or the simplified sales processes that successful LTC specialists use." Producers with clients in their 50s and 60s who don't inform their clients about LTC protection are increasingly likely to find they have purchased one of the newer, lower-cost offerings from a competitor," Slome notes. "That's not just a lost sale but a potentially lost client." Unlike other insurance or financial products that can be revisited or replaced, once long-term care insurance is purchased it rarely pays to switch carriers due to attained-age premiums. The industry Association has scheduled one-day training conferences in Northern California (South San Francisco) for April 10 and Southern California (Anaheim) for April 12. Early registration is $99 and includes lunch, 4 hours of continuing education and free parking. Details are available online at www.AALTCI.org/success or by calling the Association at (818) 597-3227. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. PIANJ supports DOBI’s TREE plan Plan would promote competition in all locations throughout the state TRENTON, N.J.—The Professional Insurance Agents of New Jersey Inc.’s President Andrew Anderson, CIC, recently told the Department of Banking and Insurance that PIANJ supports its proposed new rules to establish a Territorial Rating Equalization Exchange plan, which would promote competition between insurance companies across the state and provide incentives to write insurance policies in certain geographic areas. “PIANJ supports the proposal and agrees that such a plan is needed to promote sustainable competition in all areas of the state, especially the urban territories,” said Anderson, in a written comment. The TREE plan will work in conjunction with the redrawing of the state’s territorial rating map. The Legislature had mandated that the 60-year-old map be redrawn as part of the 1998 Automobile Insurance Cost Reduction Act and the Territorial Rating Commission currently is working on developing the new maps. Once the new maps are established, insurance companies will file rates based on the new territories. By law, the rates for the new territories cannot be “significantly disproportionate” to those in effect in 1998 when AICRA was enacted. The TREE plan will ensure that the new rates comply with AICRA’s mandate. The TREE would operate as an unincorporated association governed by a voting-member committee of 11, comprised of eight insurance company representatives; two automobile insurance producers; and one public member; with the insurance commissioner, or his representative, serving as an ex-officio, non-voting member. Under the TREE plan, an equalization charge would be levied on all companies. The money collected then would be used to supplement premium received by an insurer that writes a policy in one of the ZIP codes designated by the governing committee. Insurers then would have no financial reason to limit writing in certain geographic areas. 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. Gilsbar, Inc. to Manage Employee Benefits for TABASCOR Manufacturer McIlhenny Company FOR IMMEDIATE RELEASE: Covington, LA, February 2, 2007 McIlhenny Company, the manufacturer of the internationally known TABASCO(r) brand products, has selected Gilsbar, Inc. to administer its self-funded medical and dental plans for its benefit plan participants. Gilsbar's medical management company, MedCom Care Management, will provide Utilization Review and Large Case Management services for the group. www.gilsbar.com or call 1-800-445-7227 Ext. 830 to find out how 360 Benefit Plan Management(r) can transform your company or organization's benefit plan. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. ConnectYourCare Launches Web-based Self-Service Onboarding for Small- and Mid-sized Employers Benefit Professionals and Brokers Help Themselves with CDH Expresssm to implement world-class account-based health plan administration Hunt Valley, MD, (February 26, 2007) – ConnectYourCare, a leading provider of account administration solutions for employers, simplifies the Consumer-Directed Healthcare (CDH) account implementation process for small- to mid-sized employers and brokers with the introduction of CDH Expresssm. With this ground-breaking product, benefit administrators can use CDH Express to establish CDH accounts and enroll employees in Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), and Health Savings Accounts (HSAs) in a few simple steps. The solution enables ConnectYourCare to offer its robust CDH platform solution to the underserved small and mid-sized markets. www.ConnectYourCare.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Eastern Financial Florida Credit Union Selects Independent Financial to Expand Investment Products and Services PURCHASE, NY (February 26, 2007) – Independent Financial Marketing Group, Inc. today announced that Eastern Financial Florida Credit Union has selected it to expand the investment and insurance product offerings for Eastern Financial members. Through this agreement, Eastern Financial’s 950 member companies and 215,000 individual members will have access to these new wealth management and retirement planning solutions, including annuities, mutual funds and 401k plans. “Our members now have new wealth management and retirement planning solutions,” said Steve McGill, President and CEO of Eastern Financial.“This relationship allows our members to benefit from more investment choices in-house along with Independent Financial’s industry expertise, service administration and commitment to innovation in its financial product offerings.” Eastern Financial, the largest credit union in South Florida, ranks among the top 35 credit unions in the nation. Founded in 1937, Eastern Financial is a full-service financial institution with over $2.4 billion in assets. www.ifmg.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. MarketScout Opens Office in Chicago Dallas - February 26, 2007 -- MarketScout Corporation, a Dallas, Texas-based eInsurance Exchange specializing in the distribution of property and casualty insurance products, has announced the opening of a Chicago location to facilitate its growth in the Midwest. “We will expand all of our offerings via the Chicago office with an initial focus on high net worth Personal Lines, Workers’ Compensation and Tough Liability placements, said Krista Tankersley, Executive Vice President of MarketScout. “We were lucky to secure a talented team of underwriters who can hit the ground running.” www.marketscout.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Preferred Club Program Named Best Club Insurance Provider For 5th Consecutive Year West Chester, Pa.–February 26, 2007–Tiger Woods is not the only one in the golf industry to post an impressive winning streak recently. For the fifth consecutive year, the Preferred Club Program ( www.preferredclub.com ) received the Award of Excellence for “Best Insurance Provider to the Club Industry” from The Boardroom, the official magazine of the Association of Private Club Directors (APCD). Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Vimo Signs Partnership Deal with Association of Health Insurance Advisors (AHIA) AHIA Member-Brokers Gain Access to Vimo's Health Insurance Leads at Substantial Discount MOUNTAIN VIEW, Calif., Feb. 27 /PRNewswire/ -- Vimo today announced a new partnership deal with AHIA, the Association of Health Insurance Advisors. The joint marketing agreement offers AHIA's member-brokers discounted access to the river of health insurance leads that Vimo generates as part of the operations of Vimo.com, the Internet's leading comparison-shopping site for health care, plans and services. In exchange, AHIA will use its network to dramatically raise Vimo's profile amongst the nation's 300,000+ independent insurance agents. AHIA members interested in the discounted lead program can call Vimo at 650-230-0073 to sign up. www.vimo.com www.ahia.net Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Blue Cross and Blue Shield of Florida Announces 'Florida Blue,' a New Concept Retail Store for the Health Insurance Market Blue Cross and Blue Shield of Florida logo. (PRNewsFoto) JACKSONVILLE, FL UNITED STATES 06/17/2005 JACKSONVILLE, Fla., Feb. 26 /PRNewswire/ -- Blue Cross and Blue Shield of Florida (BCBSF) today unveiled "Florida Blue(SM)," a new concept in retailing geared to assist consumers' navigation of the health insurance market. The store is located at 4624 Town Crossing Drive, Suite 137, in the St. John's Town Center in Jacksonville. Florida Blue will sell health and ancillary products such as dental and life insurance currently available through BCBSF and its subsidiaries, as well as provide educational and informational seminars for consumers on health care and health coverage related issues. The company said the store, one of the first of its kind nationally, is a new concept in the health insurance arena and is one additional component of BCBSF's move to a consumer-empowered retail environment. www.bcbsfl.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Benefit Advisors Network: Demonstrated Ability to Deliver Increased Growth and Profitability by Providing Members Distinguishing Competitive Advantages PORT ST. LUCIE, Fla.--(BUSINESS WIRE)--Benefit Advisors Network (BAN), a national consortium of premier group benefit broker and consulting firms, continues to provide opportunities that enable their members to serve clients in unique ways. One member premiered their “Role in Improving Health Status” program, teaming brokers, the BAN medical team and vendors recently at their educational conference in Orlando. “This innovation completely changes the dynamic of the broker from the role of trying to mitigate rate increases to bringing actionable solutions designed to minimize escalating health care costs, decrease absenteeism and increase productivity,” noted John O’Connell, Principal C.M. Smith. www.benefitadvisorsnetwork.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. AI Risk® Introduces Radiology SolutionsSM, A Portfolio of Insurance Policies Tailored for Diagnostic Radiology Facilities NEW YORK--(BUSINESS WIRE)--A.I. Risk Specialists Insurance, Inc. (AI Risk®), a member company of American International Group, Inc. (AIG), today announced the introduction of AI Risk Radiology SolutionsSM, a portfolio of property and casualty insurance coverages written specifically to address risks of diagnostic radiology facilities. These coverages will be underwritten by the AIG Healthcare Department of AI Risk. For more information on Radiology Solutions, contact Dan McGinnis at (212) 770-1172 or daniel.mcginnis@aig.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. State Farm(R) Invests More Than $3 Million in Youth-led Projects Youth Advisory Board addresses social, financial, educational and safety issues with action BLOOMINGTON, Ill., Feb. 26 /PRNewswire/ -- The State Farm Youth Advisory Board, in partnership with State Farm, announced today that it will award $3,054,715 for youth-led, service-learning based projects to 44 organizations across the United States and Canada. www.statefarm.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. NAVA to Host Conference on New Industry-Backed Annuity Sales Standards NAVA to Provide Software Product and Service Providers with Guidelines to Develop STP-Compliant Solutions for Insurance Carriers, Distributors RESTON, Va.--(BUSINESS WIRE)--NAVA today announced that it is hosting a conference to educate software product and service providers on its recently announced Straight Through Processing (STP) standards. The goal of the conference is to create an open forum to discuss the information and guidelines necessary to develop future STP-compliant solutions for the annuity industry. The NAVA Technology Vendor Conference will be held on Tuesday, March 6, 2007 at the Dulles Hyatt Hotel in Herndon, Virginia from 9:00 a.m. to 4:00 p.m. Technology providers developing solutions in the following areas are encouraged to attend: electronic signature technology, interactive and electronic forms, workflow solutions, electronic document delivery, document management, and records management. Those interested should contact NAVA for details and how to register. www.RetireOnYourTerms.com www.navanet.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. Guaranteed Health Cost Savings, At Least 20 Percent, for Large Employers MINNEAPOLIS, Feb. 26 /PRNewswire/ -- Oswald Companies is guaranteeing at least 20 percent savings on health insurance costs for large employers (300+ employees) who follow their revolutionary new C.U.R.E.(TM) program. The introduction to this offering is: WHAT: The C.U.R.E WHEN: 11:30 a.m.-1:30 p.m. on Tuesday, March 20, 2007 WHERE: Hilton Hotel Minneapolis 1001 Marquette Avenue South, Minneapolis, Minn. WHO: RSVP with Rochelle Sevchek, 800.466.0468 The Midwest's leader for risk management and insurance brokerage, Oswald Companies is introducing a breakthrough solution to ever-increasing healthcare costs called the C.U.R.E. It offers employers the opportunity to provide risk reduction vehicles, on-site personalized health assistance for employees along with an insurance component that rewards employees who achieve certain goals. In addition to savings, the new offering is flexible and can adapt to an employer's existing insurance carrier, and offers comparable reductions in Worker's Compensation insurance costs. www.oswaldcompanies.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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