Daily Quote: "No trumpets sound when the important decisions of our life are made. Destiny is made known silently." - - Agnes de Mille
1. Big "I" Sends Letter to US Chamber of Commerce on Optional Federal Charters The Big "I" was disappointed to learn that The U.S. Chamber of Commerce has endorsed Optional Federal Charters/Regulation. Below is a letter to the President of the Chamber from Bob Rusbuldt, CEO of the Big "I". Mr. Thomas J. Donohue, President, U.S. Chamber of Commerce Dear Tom: I was extremely disappointed to learn that the U.S. Chamber of Commerce’s Commission on the Regulation of U.S. Capital Markets in the 21st Century has decided to embrace the creation of a massive new federal bureaucracy in Washington, D.C. through its support of an optional federal insurance charter (OFC). The Independent Insurance Agents & Brokers of America (IIABA), comprised of more than 300,000 agents, brokers and their employees across the country, strongly urges the Chamber to reconsider supporting such a misguided proposal. As you know, an OFC would necessitate the creation of a new Office of National Insurance (ONI) within the Treasury Department. Currently, there are over 11,000 state officials working to regulate the business of insurance across the country, but the National Insurance Act (NIA) authorizes an unlimited number of new offices and federal government employees to comply with the provisions of a new federal bureaucracy. If there are 11,000 individuals at the state level, we can only imagine how many people it will take to do the same job at the federal level. While the IIABA believes that serious, comprehensive reform of insurance regulation is needed, the creation of such a dual state-federal structure with overlapping bureaucracies and a potential unionized federal workforce would cause many more problems than it would solve. We also find it ironic that the Commission endorses the creation of a federal insurance regulator in the same report as it recommends significant reforms to the existing federal regulator of the securities industry, the Securities and Exchange Commission (SEC). Clearly, the mere existence of federal government regulation is not the panacea for improved U.S. performance in the global marketplace that the Commission would have us believe. As you know, many on Capitol Hill are saying that there will also be a “price” for creation of a new federal regulator. We are concerned that proposals such as a Community Reinvestment Act for insurance, Federal Trade Commission oversight, anti-credit scoring language, mandated all perils policies, new anti-redlining language, new privacy provisions, mandates to write business in certain geographical locations, federal rate regulation, and more would be added to any federal regulation bill. Insurance regulation has always been much more controversial than banking regulation. The claims system and the distribution systems in our industry are radically different than anything in the banking industry, and the regulatory personnel required to handle the thousands of inquiries in any one state is significant, especially in disaster prone states. Property casualty insurance is also very geographic sensitive with hurricanes, earthquakes, tornadoes, hail, and the differences in risks such as auto thefts in a major city vs. rural areas, and much more. Our industry has many state mechanisms from wind pools to joint underwriting associations to catastrophe funds, along with many other idiosyncrasies unique to our industry. Also, we believe divorcing solvency regulation from the guarantee funds does not make much sense. IIABA instead supports targeted federal legislation, or “federal tools,” to streamline the current regulatory system, which will improve efficiencies and help to reduce costs. Federal legislation establishing national standards where necessary would make the appropriate reforms to the marketplace while improving state insurance regulation rather than duplicating it as would occur under federal regulator proposals. Federal legislation that mandates uniformity where needed and when necessary via preemption and national standards would make the appropriate reforms to the marketplace while improving insurance regulation and achieving many of the purported goals of the Commission’s recommendations, without a new federal bureaucracy. The IIABA, our members and our state associations are energized against efforts to create a federal insurance regulator. We are already receiving numerous inquiries from small businesses around the country asking why the Chamber of Commerce, an organization that works to promote the interests of America’s businesses, has endorsed a proposal that would create competitive inequalities, create one of the largest proposed additions to the federal bureaucracy in recent history, and bring new baggage to the insurance regulatory system. We are hopeful that the Chamber will reconsider this position and come to understand that supporting the large bureaucracy which would be created under the NIA is not in the best interests of the nation’s insurance market. Please feel free to contact me if you would like to discuss in more detail our opposition to a federal insurance regulator and our support for targeted federal legislation to implement insurance regulatory reform. Sincerely, Robert Rusbuldt, CEO, www.IAmagazine.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. AIA APPLAUDS U.S. CHAMBER’S CALL FOR INSURANCE OPTIONAL FEDERAL CHARTER WASHINGTON, D.C., March 15, 2007– The American Insurance Association (AIA) today commended a report released by the National Chamber Foundation, which calls for Congress to enact optional federal charter (OFC) legislation for insurers as one of its recommendations for modernizing financial services regulation and keeping U.S. capital markets globally competitive. “It speaks volumes that national business and economic leaders are putting forth bold proposals to help the United States maintain its position as a global financial services leader,” said Gov. Marc Racicot, AIA president. “This kind of meaningful reform of the domestic financial services sector – including property-casualty insurance regulation – is critically important to our nation’s continued economic vitality.” The report specifically states: “The proposed optional federal charter will provide insurance companies with a regulatory option that allows them to avoid many of the costs and inefficiencies of a state-by-state system, increase competitiveness within the insurance market and reduce costs for consumers, and provide insurance companies a launch-point from which they may compete more readily in the global market.” Produced by the Commission on the Regulation of U.S. Capital Markets in the 21st Century, an independent, bipartisan commission established by the U.S. Chamber of Commerce, the report further says, “The Commission supports the efforts currently under way to establish an optional federal insurance charter,” and cites federal legislation introduced during the previous Congress by Sens. John Sununu (R-NH) and Tim Johnson (D-SD), as well as companion legislation introduced in the U.S. House by Rep. Ed Royce (R-CA). The report also notes the expected reintroduction of OFC legislation in the current Congress. Gov. Racicot specifically cited this passage from the report which notes the importance of addressing this issue now: “Our most fundamental recommendation is that policymakers and thought-leaders address these problems now before a crisis arises. We have it within our power to take sensible, effective steps to ensure that U.S. markets are the most fair, efficient, transparent, and attractive in the world. The question is, can we find the political will to take them.” “We applaud the Chamber’s efforts to reform and modernize the federal government’s regulatory approach to financial markets and market participants. We certainly look forward to helping them achieve this goal by working with policymakers at all levels to remove market obstacles imposed by the existing, archaic and dysfunctional state insurance regulatory system, so that markets can function at peak efficiency and empower consumers with the confidence that they are getting the most for their financial services dollar.” www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. TSR Raises Forecast for 2007 Atlantic Hurricane Season El Niño, which moderated storm activity last year, has dissipated. The likelihood for 2007 being an active season increases. London, 20 March 2007 - Tropical Storm Risk (TSR), the award-winning consortium of experts on insurance, risk management and seasonal climate forecasting led by the Benfield UCL Hazard Research Centre at University College London, today increased its forecast for Atlantic hurricane activity in 2007. Based on current and projected climate signals, TSR’s March forecast predicts Atlantic basin and US landfalling hurricane activity to be about 75% above the 1950-2006 norm in 2007, rising from 60% above norm (TSR long-range forecast issued December 2006). This is the highest March forecast for activity in any year since the TSR replicated real-time forecasts started in 1984. According to TSR, whose long-range outlooks for the exceptionally active 2004 and 2005 hurricane seasons and active 2003 hurricane season proved accurate, it is 86% likely that U.S. landfalling hurricane activity in 2007 will be in the top one-third of years historically. The prediction includes: • A 86% probability of an above-normal Atlantic hurricane season, a 11% probability of a near-normal season and only a 3% chance of a below-normal season • 17 tropical storms for the Atlantic basin as a whole, with nine of these being hurricanes and four intense hurricanes • A 85% probability of above-normal U.S. landfalling hurricane activity, a 12% likelihood of a near-normal season and only a 2% chance of a below-normal season • Five tropical storm strikes on the U.S., of which two will be hurricanes • Two tropical storm strikes on the Caribbean Lesser Antilles, of which one will be a hurricane The two main climate factors influencing the TSR hurricane forecast for 2007 are the expected values in August and September for the speed of trade winds which blow westward across the tropical Atlantic and Caribbean Sea and the temperature of the sea waters between West Africa and the Caribbean where many hurricanes develop. The former influences cyclonic vorticity (the spinning up of storms) while the latter provides heat and moisture to power incipient storms. The key factors behind the TSR forecast for an above-average season in 2007 are the anticipated moderate enhancing effect of the July-September forecast trade winds over the Caribbean Sea and North Atlantic region, and of the August-September forecast sea-surface temperature for the Atlantic. Commenting on the forecast upgrade, Professor Mark Saunders, the TSR lead scientist and Head of Weather and Climate Extremes at the Benfield UCL Hazard Research Centre at University College London said: “The El Niño conditions present since September 2006 dissipated rapidly during February. This has increased the expectation since last month that weak La Niña conditions will occur during the summer. As a result, the July to September Caribbean trade wind anomalies are expected to be weaker than thought previously. This factor will increase cyclonic vorticity and cause more storms to be spun up. The sudden El Niño dissipation is the main reason for the TSR forecast for hurricane activity in 2007 rising from 60% above-norm in our long-range forecast last December, and also in our January and February updates to 75% above-norm in our March forecast.” TSR’s April forecast update will be issued on 5 April 2007. TSR forecasts may be accessed through the website www.tropicalstormrisk.com. www.benfieldhrc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Bush's health care plan not most effective: study Mon Mar 19, 2007 4:32pm ET WASHINGTON (Reuters) - At least two of the health care proposals being presented to Congress would cover all or nearly all of the Americans who lack health insurance, and many would lower spending, too, according to an independent report released on Monday. Many of the plans would do more to cover uninsured Americans and lower costs than President George W. Bush's proposals, said the nonprofit Commonwealth Fund, which studies health care issues. Health care has emerged as one of the top political issues of 2007, with groups as diverse as labor unions and major retailers teaming up to propose changes. Several studies have found fault with the current U.S. system -- a free-for-all in which employers provide most health care, government programs provide much of the rest and 47 million Americans are left with no health insurance. "If we don't move to make changes to our failing health care system, the number of uninsured in this country is projected to rise to 56 million by 2013," Commonwealth Fund president Karen Davis said in a statement. "Many of these proposals demonstrate that it is possible to move toward the high performance health care system Americans want and deserve while assuring access to health care for everyone," Davis said. For Monday's report, staffers at the fund analyzed 10 health care plans introduced in 2006 and 2007 in the U.S. Congress, as well as Bush's proposals. California Democratic Rep. Pete Stark's AmeriCare proposal that builds on Medicare and the employer-based system could save families with low and moderate incomes a collective $142.6 billion in 2007 and would cover 47.8 million extra Americans, the study found. Oregon Democratic Sen. Ron Wyden has proposed a bill that would also benefit low- and moderate-income households, to the tune of $78.8 billion, and would cover 45 million uninsured Americans. Under Bush's proposal to help individuals buy their own health insurance with tax breaks, family spending on health care would fall by $31 billion. But the Commonwealth Fund analysis found that families with annual incomes of less than $10,000 would save only $23 in 2007, while families earning $150,000 or more per year would save an average of $1,263 under the Bush plan. Bush's plan would cover only 9 million extra Americans who now lack insurance. The report found that the cost to administer the insurance program nationally would increase by $5.5 billion under Bush's plan, while such costs would fall under other plans. © Reuters 2007. All Rights Reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. American Consumer Institute Finds Consumers Are Not Helped by Redundant and Costly State Insurance Regulations New Study calls for reforms and consideration of an Optional Federal Charter RESTON, Va., March 20 /PRNewswire-USNewswire/ -- American Consumer Institute has completed a report on insurance regulation and finds that consumers are not helped by duplicative and unnecessary state-level regulations that clearly increase premiums, reduce competition and discourage service innovation. Instead, state insurance regulations commonly redistribute insurance costs among consumers, effectively raising premiums for some consumers in order to subsidize high risk, and sometimes wealthy, consumers. The study also finds no sound economic justification for the current 50+ state regulatory systems. While maintaining important consumer safeguards, the study calls for regulatory reforms, including consideration of an Optional Federal Charter. The Institute's study comes on the heals of several recent studies -- one released last month by Senator Schumer and Mayor Bloomberg, another study released last week by the Commission on the Regulation of U.S. Capital Markets, and views and presentations echoed by several lawmakers and professors at last week's Indiana State University's Network Financial Institute summit -- all recommending consideration of an Optional Federal Charter. For a full copy of the report, visit http://www.theamericanconsumer.org. 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6. Health Care Administration Consumes Nearly One-Third of Health Care Costs, Say Hospitals and Insurance Companies -Nationwide survey finds patients want increased efficiency, greater transparency- PITTSBURGH, March 20 /PRNewswire-FirstCall/ -- Administration associated with health care claims and billing accounts for nearly one out of every three dollars that patients spend on health care, according to a nationwide survey of executives from hospitals and insurance companies. In contrast, more than three-quarters (76 percent) of the U.S. consumers surveyed said they think that health care administration should account for just 10 percent or less of total health care costs, with a large majority indicating they would be "highly upset" if those administrative costs were as high as 30 percent. Approximately eight in 10 consumers (79 percent) said they would like to see an itemization of the portion of their health care bills that goes to administration versus clinical care. The health care industry survey of 200 hospital and insurance company executives and 1,000 U.S. consumers was commissioned by The PNC Financial Services Group, Inc., (NYSE: PNC) and conducted by the independent research firm Chadwick Martin Bailey. "While it is possible that consumers do not fully appreciate the cost and complexity of health care administration, hospital and health plan executives identified significant inefficiencies in the business office, describing a medical claims, billing and payment process that is error prone, redundant and costly," said Paula Fryland, executive vice president and manager of PNC's national health care group. Additional survey results include: - Hospital executives reported that one in five claims submitted, on average, is delayed or denied and 96 percent of all claims must be submitted more than once. - Hospitals that do not use electronic billing or claims submission processes reported, on average, resubmitting a claim 11 times or more, or nearly four times more than those hospitals using electronic processes. - Insurance executives surveyed said they go back to hospitals two times, on average, to get all the information needed to pay a claim. - Nearly a quarter of consumers reported having had a legitimate claim denied by their health plan; one in five ultimately paid the claim out of their own pocket. A PNC e-Health Study media kit containing survey highlights and background information is available through PNC's website at http://www.pnc.com/go/presskits. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. New Analysis: Congressional Health Care Proposals Would Cover All Uninsured, and Reduce Total U.S. Health Spending by Up to $61 Billion More Modest Proposals Would Cost the Federal Government Less Up Front, But Would Insure Fewer, Save Less Money For Taxpayers Over Time NEW YORK--(BUSINESS WIRE)--A new analysis of health reform bills in Congress prepared for the Commonwealth Fund Commission on a High Performance Health System shows that many current Congressional health care proposals could significantly reduce the number of uninsured Americans and also decrease overall health care expenditures including those for insurance administration and prescription drugs. The analysis finds that while the plans put forth in Congress vary greatly in their scope, many of them would do more to cover uninsured Americans than the current Administration proposal. This first-ever review of leading Congressional bills and the administration’s proposal concludes that elements of many of the plans proposed in Congress are feasible and would reduce health care costs over time. Representative Stark’s AmeriCare proposal, which would open the Medicare program to everyone, would cover nearly all of the uninsured as would Senator Wyden’s Healthy Americans Act, which would help people purchase coverage through large regional insurance exchanges. President Bush’s plan would cover 1 in 5 uninsured Americans. Proposals selected for inclusion in the report either had the potential to significantly impact the problem, reflected ideas proposed in the Administration’s budget, had bipartisan support or were unique or innovative. The ten-page executive summary and full report are available on the Commonwealth Fund’s Web site, www.cmwf.org. This report, the first of a two-part series, analyzes and compares leading congressional bills to expand health insurance coverage. Part II of the series will analyze and compare congressional bills that seek to improve health care quality and efficiency. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Bank of America CEO gets $92 mln from stock,options Mon Mar 19, 2007 3:24PM EDT NEW YORK (Reuters) - Bank of America Corp. (BAC.N: ) Chief Executive Kenneth Lewis posted a $91.58 million gain from the exercise of options and vesting of stock awards in 2006, in addition to a obtaining a $22.85 million compensation package, as the No. 2 U.S. bank's profit rose 28 percent to a record. Lewis, who turns 60 next month, realized $77.04 million from the exercise of 4.08 million stock options, and had $14.54 million of stock awards vest, according to the bank's proxy filing with the U.S. Securities and Exchange Commission. These awards were in addition to a compensation package comprising a $1.5 million salary, $14.63 million of stock and option awards, $6.5 million of incentive awards, and $219,969 of other compensation, including the use of a corporate aircraft, tax and financial planning, and security provisions. Compensation is based on salary, bonus, the value of stock options and other awards granted during the year, and incentives and perks. Bank of America last month said 2006 profit totaled $21.13 billion, or $4.59 per share, helped by capital markets and investment banking, investment gains and a 148 percent jump in card income following the $34.2 billion purchase of MBNA Corp. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. AMA Asks Justice Department to Block Takeover of Sierra Health Services WASHINGTON, March 19 /PRNewswire-USNewswire/ -- The American Medical Association (AMA) today asked the Department of Justice to block the proposed acquisition of Sierra Health Services by United HealthGroup, and outlined its strong opposition to the merger in a letter to U.S. Attorney General Alberto Gonzales. The AMA has deep reservations about United's goal of dominating the Nevada health insurance market, and in particular the Las Vegas market, by purchasing the state's largest insurer. "Federal authorities must not allow United's blatant grab for dominant market power," said AMA Board Member J. James Rohack, M.D. "The proposed merger would have negative long-term consequences for patients, physicians, hospitals and employers." If the proposed merger is allowed, the AMA estimates that United would control 78 percent of the HMO market in Nevada, and 95 percent of the HMO market in the Las Vegas-Paradise metropolitan area. "United's near-monopoly in the HMO insurance market will deter competition and deny patients and employers a choice among HMO plans," said Dr. Rohack. "Potential competitors will be unable to challenge United's market dominance due to the excessive expense of developing a HMO network from scratch." In its letter to the U.S. Attorney General, the AMA warned that Nevada's projected decline in health insurer competition will allow United to pursue its well-documented single-minded focus on profits. "Without the threat of competition in Nevada, United will be free to raise premiums above market rates and exercise exclusive power over the purchase of medical services," said Dr. Rohack. Federal authorities have acted once before against United to preserve a dynamic and competitive insurance market. The Department of Justice required United in December 2005 to divest holdings in its merger with PacifiCare. "The post-merger market shares gained by United's acquisition of Sierra would be significantly higher than the market shares that forced federal authorities to intercede in United's merger with PacificCare," said Dr. Rohack. The proposed acquisition of Sierra highlights the alarming trend of consolidation within the health insurance industry. Between 1995 and 2005, there were more than 400 mergers involving health insurers and managed care organizations. The AMA has long cautioned that this trend is responsible for a growing market imbalance where patients and physicians are left vulnerable to the demands of a few giant health insurers. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Where did all the money go? Not to safety Tue Mar 20, 2007 7:56AM EDT By Jeremy Gaunt, European Investment Correspondent LONDON (Reuters) - While investors have rattled and stock markets rolled over the past few weeks, safe-haven assets haven't had as much to show for it as might be expected. The implication may be that a wholesale shift in investment trends has not taken place and what seemed like a severe bout of risk aversion may only have been a fleeting moment of doubt. NO CUT AND RUN So where has the money gone? There have been gains in some assets. The Japanese yen (JPY=: ), for example, strengthened against the dollar, which was more than 2 percent weaker on Monday than at the close on February 26. Commodities such as nickel and copper have soared.Yen gains were flattered by a perceived shock to so-called carry trades, where yen-funded high-yield bets were unwound. A shift to cash would also tend to benefit currencies of countries with large external surpluses -- such as Japan. But on the whole money appears to have been shuffled within asset classes rather than across them. For many, the lesson of past corrections has been that the biggest risk may be staying out of the market for too long. "A lot of people learned ... you don't necessarily want to cut and run," the hedge fund specialist said. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. U.S. court overturns class status in Enron suit HOUSTON, March 19 (Reuters) - A federal appeals panel in New Orleans said on Monday that a lower court judge improperly granted class-action status in a $40 billion lawsuit by Enron Corp. investors, a big victory for the investment banks Merrill Lynch and Co Inc. (MER.N: ) and Credit Suisse Group (CSGN.VX: ) that sought to have the ruling overturned. The banks had argued that Judge Melinda Harmon in Houston federal court wrongly allowed investors to allege Merrill Lynch and Credit Suisse were primary participants in the fraud that eventually led to Enron's collapse. In a 53-page ruling, the U.S. Court of Appeals the 5th Circuit wrote that Judge Harmon's decision to grant class- action status to the case was partly based on "legal error" regarding the banks' liability and sent the lawsuit back to the lower court for reconsideration. "We are very disappointed," said William Lerach, a lawyer for the Enron investor plaintiffs. "We respect the court, but we think the decision is clearly wrong." Lerach said the plaintiffs would seek a Supreme Court review of the appeals court's decision. The trial is scheduled to start on April 16. In court papers Merrill Lynch had argued there was no evidence to prove the investment bank was a "substantial or significant factor" in the losses that caused Enron's collapse. In a class-action lawsuit, investors consolidate their complaints, allowing them more clout than if claims were pursued on an individual basis. Lawyers had said a favorable ruling for the deep-pocketed banks would be a massive setback for the plaintiffs. So far, the lawsuit has netted more than $7 billion for investors, including $2 billion or more each from Canadian Imperial Bank of Commerce (CM.TO: ), J.P. Morgan (JPM.N: ) and Citigroup (C.N: ). (Additional reporting by Martha Graybow) ((Reporting by Anna Driver in Houston; editing by Andre Grenon; Reuters Messaging: anna.driver@reuters.com +1 713 210 8509)) (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. UK's Prudential up on renewed AIG bid talk -traders LONDON, March 20 (Reuters) - Shares in UK insurer Prudential Plc (PRU.L: ) rose 3 percent on Tuesday to lead gainers on Britain's FTSE 100 on renewed market talk that U.S. rival AIG (AIG.N: ) was planning a bid for the company at 850 pence, traders said. Prudential declined to comment. AIG spokesman Chris Winans, speaking from New York where the world's largest insurer is based, said his company would not comment on market rumours. ((Reporting by Sitaraman Shankar and Anshuman Daga in London and Ed Leefeldt in New York, editing by David Holmes; +44 207 542 4399; sitaraman.shankar@reuters.com; Reuters Messaging: sitaraman.shankar.reuters.com@reuters.net)) Keywords: PRUDENTIAL SHARES/ (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Pennsylvania Insurance Department Shuts Down Illegal Insurance Network, Recovers $1 Million in Unpaid Claims HARRISBURG, Pa., March 16 /PRNewswire-USNewswire/ -- Through a unique collaboration between state and federal regulators, the Pennsylvania Insurance Department has helped to recover approximately $1 million in unpaid health claims for Pennsylvania policyholders, Acting Insurance Commissioner Randy Rohrbaugh announced today. The department collaborated with the New Jersey Department of Banking and Insurance and the U.S. Department of Labor (DOL) in its action against Nassau Employee Benefits Trust (NEBT), an illegal, unlicensed insurer operating out of New Jersey. "Nassau Employees Benefits Trust violated multiple insurance laws and put thousands of policyholders at risk," Rohrbaugh said. "As a result of our action, the policyholders who were victimized will have their claims paid." Consumers suffered unpaid claims because AllStaffing Inc. of Lansford, Carbon County, enrolled Pennsylvania employers in NEBT. Although it was not a licensed insurer, NEBT issued accident and health coverage to Pennsylvania employers and employees. NEBT became bankrupt and, last month, agreed to the appointment of an independent fiduciary, assigned by the DOL, which is in the process of notifying medical providers that any legitimate covered claims will be paid. According to the consent order, Gerber Life Insurance Company's agent, Elite Brokerage Services, did not ensure that the health plan offered by NEBT was a legitimate, licensed insurer. As a result, all unpaid claims relating to the NEBT plan from January 1, 2005 through Dec. 31, 2005, totaling about $1 million, will be paid by Gerber Life Insurance Company. The Insurance Department also issued a cease and desist order against AllStaffing and revoked the producer license of its president, Stanley Costello. www.insurance.state.pa.us Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Americans Say a Secure Retirement Not Possible for Mid-Income Families BLOOMINGTON, Ill., March 20 /PRNewswire/ -- Nearly half of Americans don't believe it's possible for middle-income families to save for a secure retirement. Another 17 percent aren't sure, leaving only 37 percent believing middle-income families can save enough to live comfortably in retirement. That's according to a new survey by COUNTRY Insurance & Financial Services. The findings include: -- Women see the retirement situation more gravely than men. Nearly seven in ten women (69 percent) are pessimistic or unsure about the retirement prospects of middle-income families. Only five in ten men feel pessimistic or unsure. -- Americans don't take their own advice. Three-quarters (74 percent) say people should start saving for retirement before age 30. However, 62 percent of the same respondents waited until after age 30 or haven't yet started saving for retirement. -- Two reasons keeping people from saving for retirement. They indicate the biggest barriers are a lack of enough money to save and invest (34 percent) and the need to pay off debts (17 percent). "The good news is that Americans recognize the need to begin saving for retirement at a young age. But it's troubling that people aren't putting their advice into practice," says Keith Brannan, director of the Financial Security Office at COUNTRY. "Saving for retirement involves disciplined and consistent saving over time. It is quite achievable if people have a thought-out plan in place." For more information on Americans' sentiments about financial security, please visit http://www.countryfinancialsecurityindex.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. State Laws Continue to Get in the Way of Health Savings Accounts ALEXANDRIA, Va., March 19 /PRNewswire-USNewswire/ -- Some states have insurance laws that conflict with the requirements for Health Savings Accounts (HSAs) and hinder insurers' ability to offer HSA-compatible policies. Some of these laws include mandating coverage of certain benefits below the deductible amounts specified in HSA rules and not exempting the money deposited in HSAs from state taxes. "We are seeing some very interesting HSA legislation this year. For example, recently, Ohio enacted a law that provides mandate-free high deductible health plans for HSAs and now Rhode Island has introduced similar legislation," explained CAHI Director Dr. Merrill Matthews. The Council for Affordable Health Insurance's updated HSA State Implementation Report reviews the state HSA environment and recent legislative action in one concise document. To learn more about current HSA state implementation issues, please go to http://www.cahi.org, and while you're there visit CAHI's HSA Info Center. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Aon Acquires Valley Oak Systems CHICAGO, March 19 /PRNewswire-FirstCall/ -- Aon Corporation (NYSE: AOC) today announced it has completed the acquisition of Valley Oak Systems of San Ramon, California. The terms of the transaction were not disclosed. Valley Oak Systems (VOS), a leader in claims management software, services, and support for the insurance industry, will operate under the Aon eSolutions Group as an independent subsidiary. Its flagship product, iVOS, the "one-system" claims management solution, will integrate with RiskConsole, Aon's risk management information system (RMIS), to share information and provide a comprehensive analysis of claims, policy, and exposure data. www.aon.com www.valleyoak.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Chubb Offers Ethics Training to Agents WARREN, N.J., March 19 /PRNewswire/ -- The Chubb Group of Insurance Companies has developed an ethics training program for its independent agents and brokers. The program consists of a half-day ethics workshop and a quarterly newsletter. "Integrity and ethical business practices are fundamental to Chubb's success," said John J. Degnan, Chubb's vice chairman, chief administrative officer and chief ethics officer. "To retain the hard-earned trust of our mutual customers, it's important that we help our distribution force keep abreast of the latest best practices in this area." Taught by David Schmidt, associate professor of business ethics at Fairfield University's Dolan School of Business, the Chubb Business Ethics Workshop provides participants with an ethical decision framework they can apply to difficult business situations and heightens their awareness of potential ethics issues through case studies. The insurance departments of 38 states have approved the workshop for continuing education credits. Last year, more than 500 agents and brokers participated in the workshop in 13 major U.S. cities. The workshop is scheduled to be held in 19 other cities in 2007. To view the first edition of "Chubb's Ethics and Compliance Newsletter," go to http://www.chubbemail.com/files/ChubbEthics_Issue1.html. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. A.M. Best Methodology: Understanding Universal BCAR — A.M. Best’s Capital Adequacy Ratio for Insurers OLDWICK, N.J.--(BUSINESS WIRE)--The purpose of this report is to document the existing criteria and methodology related to the Universal Best’s Capital Adequacy Ratio (BCAR) model, which is used on those companies that do not file United States or Canadian statutory statements. The objective of A.M. Best’s rating system is to provide an opinion of an insurer’s financial strength and ability to meet ongoing obligations to policyholders. For interactive ratings, A.M. Best believes the balanced approach of evaluating a company on both quantitative and qualitative levels provides a better analysis of a company and also results in a more discerning and credible rating opinion. A company’s quantitative results are evaluated on their own merits and also are compared with industry composites as established by A.M. Best Co. The most important area to evaluate is a company’s balance-sheet strength, which measures the exposure of the company’s capital to its operating and financial practices. An analysis of a company’s underwriting, financial and asset leverage is very important in assessing its overall balance sheet strength. For more information on A.M. Best’s rating methodologies or to download a copy of this methodology report, visit http://www.ambest.com/ratings/methodology.asp. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Good News about Retirement Savings DES MOINES, Iowa--(BUSINESS WIRE)--The results are in. Do-it-for-me retirement savings tools work. The Total View from the Principal Financial Group®, the nation’s 401(k) leader1 and total retirement solutions innovator, reports that the growing popularity of “do it for me” retirement plan tools like automatic enrollment, automatic deferral increases and lifecycle investment options are making a measurable difference in participation and savings. One of the most comprehensive reports on retirement plan trends, The Total View also shows more employers embracing simplicity. A rapidly growing number of plan sponsors are saving time and money by consolidating retirement plans with a single provider as a total retirement solution. To download the full report, visit the Principal Research Center http://www.principal.com/about/news/research.htm#retirement. 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. Phillip Roy Financial Services Announces New White Paper on Annuities SARASOTA, Fla.--(BUSINESS WIRE)--Phil Wasserman, president of Phillip Roy Financial Services, a leading retirement income planning firm, has announced a new research paper on annuities. "Annuities are an area of great interest to the boomer generation and retirees in general," says Wasserman, "and this new research paper helps explain them in plain English." Phillip Roy Financial Services has already disseminated the white paper to over 500 top financial planners nationwide and will continue to offer it free of charge to financial advisors, insurance agents and the public. Copies may be obtained by calling 888-225-8161 or may be downloaded at the company's web site www.philliproyfinancial.com. The white paper covers all different types of annuities, with emphasis on the suitability of an annuity for an individual’s particular needs. It is one in a series of white papers Phillip Roy Financial Services has published on topics relating to retirement income planning. Phillip Roy Financial Services trains hundreds of financial planners, insurance agents and advisors monthly in the use of annuities in retirement income planning. Phil Wasserman also speaks to thousands of retirees yearly on the subject of annuities and life insurance. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. The Standard Opens New Retirement Plans Office in New York PORTLAND, Ore. — March 20, 2007 — The Standard is pleased to announce the opening of a new Retirement Plans sales office in New York City. The new sales office will serve retirement plan sponsors, advisors and other plan intermediaries throughout the state of New York as well as northern New Jersey. Gian (“John”) Bernardi will serve as pension consultant in the New York office. www.standard.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. DocuDent Accident Documentation Kit Proves Ideal Vehicle To Protect Drivers & Insurance Companies From Accident Fraud Must-Have Resource Offers All The Tools Drivers Need To Ensure Accuracy & Safety After A Collision; Kit Takes Dent Out Of $39 Billion In Annual Insurance Fraud LOS ANGELES, CA., MARCH 19, 2007 – Anyone who’s ever been in a car accident knows first-hand that the minutes just following a collision are invariably filled with distress, anxiety, anger, fear and perhaps physical trauma. In other words, the worst possible time for the parties involved to accurately document what took place, how bad the damage is, and which person is to blame. Representing one of the ultimate “why didn’t I think of that?” safety developments to come along since the assembly line days of the Model-T, the patented DocuDent kit is already enthusiastically supported by such important safety entities as Homeland Security, California Highway Patrol, countless police organizations, and such leading insurance companies as Allstate, Farmers, Countrywide, 21st Century and AAA Insurance. www.DocuDent.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Esurance & W!LDBRAIN Showcase First Long-Form Adventure on FX Erin Esurance's Newest Adventure to Debut During the World Broadcast Premiere of 'I,Robot' SAN FRANCISCO, March 19 /PRNewswire/ -- Esurance, the direct-to-consumer personal auto insurance company, discussed its plans for "Carbon Copy," the company's first long-form adventure featuring the company's animated "spokesperson" and special agent, Erin Esurance. Esurance's ongoing animation and creative partner, the award-winning studio, W!LDBRAIN, produced the short feature, a three-minute tale of clones, robotized plants and mad scientists. A shorter two-and-a-half minute version of "Carbon Copy" will debut nationally on the cable network, FX, during the world broadcast premiere of the film, "I,Robot," on March 19 at 7:30 PM ET/PT. The broadcast version features a cliffhanger ending and drives people to www.esurance.com to view the full-length short. After the debut, the broadcast version will also appear during five additional airings of "I,Robot" through April 1. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Agent’s Sales Journal to Introduce New Cover Design, Launch Improved Web Site CLEARWATER, FL (March 16, 2007) – The Agent’s Sales Journal has launched an expanded and redesigned Web site, www.AgentsSalesJournal.com, which boasts new Web-exclusive articles and a slate of other interactive and educational features. The magazine is also unveiling a new look in April that will make the insurance industry’s No. 1 how-to publication more modern and easier to navigate. The Web site will host more than 500 new and archived articles. The practical selling guides that ASJ is well-known for can be downloaded in PDF format, as well. New features, such as an editor’s Weblog and a monthly poll, give readers a chance to interact with ASJ and submit their ideas and advice for inclusion in the magazine. The site will also feature tips and ideas from a new prospecting coach every month and Web-exclusive articles written by industry insiders. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. HR411™ begins series of human resource podcasts SHELTON, Conn. -- HR411™ created a series of EduCasts©—audio training and educational programs —on a variety of human resource practices. EduCast©s can be downloaded and played directly on a computer, digital audio player or other compatible device. The first EduCast, entitled The Hiring Process, covers the entire hiring and recruitment life cycle. Future EduCasts© in this series will cover: Orientation and On-boarding, Employment Law, Performance Management, Employee Compensation, Discipline and Termination, and a Summary Module. www.hr411.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Rosenfeld Einstein Seminar to Address Solutions to Workers Comp Crisis GREENVILLE, SC – March 19, 2007 – Upstate-based Rosenfeld Einstein, a major regional insurance agent/broker, has announced plans to host a complimentary seminar, “Managing Your Insurance Costs and Risk,” on April 12 in Greenville designed to offer organizations with 100+ employees an intelligent alternative to escalating and unpredictable Workers Compensation costs. The seminar, executed in partnership with noted national consultant Captive Resources LLC, will present businesses with information on how to control fluctuating property, casualty, general liability, auto and workers compensation costs, notes Dan Einstein, principal at Rosenfeld Einstein.For additional information on Rosenfeld Einstein, contact Dan Einstein or Mary Barrette at (864) 271-6336 or via email at info@rosenfeldeinstein.com. www.RosenfeldEinstein.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Employer Survey Points to Need For Health Management, Including Incentives for Employees Washington, DC – March 19, 2007 Companies that combine “consumer-directed health plans” with other health-related tactics are more effective than others at controlling health care costs, according to a recent independent survey. Officials from IncentOne, a consultive technology company specializing in incentives-based health and productivity administration solutions, praised the findings. Companies that are best at controlling costs are focused on adopting approaches that involve quality, health improvement and productivity (including the use of incentives), data and evidence, and the appropriate use of health care services, the report, issued last week by Watson Wyatt Worldwide and the National Business Group on Health, found. www.IncentOne.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Converium further substantiates medium-term 14% ROE target, highlighting undervaluation of current SCOR offer ALERT - Zug, Switzerland - March 19, 2007 We would like to alert you to a presentation by Converium's CFO, Paolo De Martin, on March 19 and March 20 with sell-side analysts in Zurich and London. The CFO will provide further details on Converium's road map towards a sustainable 14% ROE by 2009, backed by management's strong and successful track record in turning Converium around. With regards to SCOR's unsolicited offer, Paolo De Martin will specifically highlight Scor's current undervaluation of Converium; the weak acquisition currency of the bidder; and the major execution risks arising from the hostility of the proposed transaction. The presentation can be downloaded on the company's web site www.converium.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. KBC Iberica implements FinArch's Financial Studio compliance solutions Ghent/Madrid - 20 March 2007 - Financial Architects (FinArch), international provider of a Finance Resource Planning (FRP) platform for the finance industry, today announced that KBC Bank NV, Sucursal en España (KBC Iberica), the Spanish branch of KBC Group, selected the Financial Studio solution to comply with regulatory reporting requirements in Spain. www.kbc.com www.finarch.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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