Daily Quote: "Procrastination is the natural assassin of opportunity." - - Anonymous
1. Holocaust Claims Process Comes To Successful End - More Than 48,000 Survivors and Heirs Receive Payments KANSAS CITY, Mo. (March 20, 2007) - The International Commission on Holocaust Era Insurance Claims (ICHEIC) announced today that its claims and appeals processes have concluded. More than $300 million in awards were distributed to more than 48,000 Holocaust survivors and their heirs. The ICHEIC was established in 1998 by the National Association of Insurance Commissioners (NAIC), in conjunction with several European insurance companies, European governments, representatives of several Jewish and Holocaust survivor organizations, and the State of Israel to ensure payment of valid insurance claims. The NAIC has led the states’ interaction with the ICHEIC, assisting claimants and their heirs with the process. “In the world of the Holocaust survivor and their families, there is little opportunity to obtain financial compensation for the torture and loss that is part of their wartime histories,” said ICHEIC Vice Chairman and former Pennsylvania Insurance Commissioner Diane Koken. “In point of fact, we will never be able to make true reparation for the horror or misery they endured, but we can and have held insurance companies responsible to pay for the promise of protection offered by Holocaust-era insurance policies.” ICHEIC was charged with expeditiously addressing, at no cost to claimants, unpaid insurance policies issued to victims of the Holocaust. It conducted an extensive worldwide outreach campaign to encourage claimants to file, and more than 70 European insurance companies and partner entities participated in the process. An extensive archival investigation and matching process resulted in member company offers to 8,000 claimants, totaling nearly $100 million on claims that originally did not name an insurance company. ICHEIC also extended $30 million in awards through its Eastern European humanitarian claims process for claims on policies written by companies nationalized or liquidated after World War II and for which no present-day successor could be identified. ICHEIC extended an additional 31,000 humanitarian awards totaling $31 million on eligible undocumented claims that contained a high level of anecdotal information regarding insurance but could not be matched against company records. These awards were made in recognition of the fact that, due to the ravages of war and the passage of time, many claims cannot be substantiated today. For more information about ICHEIC, please visit www.icheic.org. www.naic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. State Farm to accelerate settlements in Mississippi By Ed Leefeldt NEW YORK, March 19 (Reuters) - State Farm Mutual, Mississippi's largest insurer, said on Monday it has started reviewing claims by as many as 35.000 Gulf Coast residents whose homes were destroyed by Hurricane Katrina, in order to speed up the payment process. The company said it would use criteria set out in a failed settlement of a class-action lawsuit. It said the move resulted from a deal, which makes millions of additional dollars available to homeowners in three coastal counties, between the insurer and State Insurance Commissioner George Dale. "The process will put dollars into people's hands more quickly," according to a statement read by company spokesman Fraser Engerman. State Farm said it was beginning an immediate revaluation and payment program for the claims of Mississippians whose homes had been completely destroyed by the August 2005 hurricane, the most expensive storm in history. The announcement came after U.S. District Court Judge L.T. Senter in Mississippi delayed a class-action settlement between Mississippi homeowners represented by attorney Richard Scruggs and State Farm that would have resolved hundreds of claims. Senter said he was not satisfied that all cases would be covered by the settlement and treated fairly. "When I learned that the proposed class-action settlement had stalled, I felt it presented an opportunity to negotiate with State Farm to bring closure for coastal homeowners," Dale said. Dale said that State Farm could potentially reexamine and negotiate more than 35,000 claims, using the proposed class action as a "starting point." Under that settlement, State Farm would have paid Mississippi coastal homeowners at least $50 million and possibly up to $500 million. Mississippi Governor Haley Barbour said he supported the settlement. "This ... should allow hundreds if not thousands of Mississippi homeowners to receive insurance payments from State Farm after these claims are readjusted," Barbour said. Participation by homeowners, renters and commercial properties would be voluntary, Dale said. 'UNNECESSARY COURT BATTLES' Dale has said he wanted to see the claims resolved rather than losing insurers from the state. After the class-action settlement was delayed, State Farm refused to write new homeowner policies in Mississippi and Scruggs, who represented the homeowners, withdrew his request for court approval of the settlement. Scruggs said in a statement that Dale's proposal "has no teeth in it." "Without court supervision, State Farm has no incentive to be fair with the policyholders," said the class action attorney. Scruggs did not explain why he withdrew from the court settlement. Dale said he was also talking to other insurers about expediting the handling of their claims and could make further announcements in coming weeks. Homeowners argue that their properties were destroyed by wind. Private insurers such as State Farm, Allstate Corp. (ALL.N: ) and Nationwide (NFS.N: ) generally cover such losses. The insurers have said "storm surge," a 30-foot wall of water thrown up by Katrina, swept the homes away. Water damage is normally covered by a federal flood insurance program. ((Reporting by Ed Leefeldt; editing by Gary Hill; edward.leefeldt@reuters.com; Reuters Messaging: edward.leefeldt.reuters.com@reuters.net; +1 646 223 6315)) Keywords: STATEFARM MISSISSIPPI/ (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. UK watchdog to simplify general insurance rules LONDON, March 21 (Reuters) - Britain's financial watchdog said on Wednesday it plans to ease rules for the sale of simple insurance such as motor cover, though it could toughen measures around more complex products like insurance for loan repayment. The Financial Services Authority (FSA) said a review had showed risks to consumers varied according to the type of insurance bought and the watchdog said there was a strong case for moving to a "differentiated regulatory regime". "Our insurance rules will be more risk-based and proportionate while continuing to meet our consumer protection objective," FSA Chief Executive John Tiner said. The FSA said it would publish a consultation paper on the possible rule changes in June, with regulation changes likely to come in December. Reporting by Clara Ferreira-Marques; (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Willis Group Chairman and CEO Calls on the Insurance Industry to Embrace Principles-Based Regulation London, UK, March 21, 2007 – Joe Plumeri, Chairman and CEO of Willis, the global insurance broker, addressed the UK’s Financial Services Authority at the Annual Insurance Sector Conference, on the importance of embracing a principles-based rather than a rules-based approach not just to regulation but to running the entire industry. “Principles are values you hold that are non-negotiable. You should know what the right thing to do is and do it with a passion,” said Plumeri. “Otherwise we spend more time mechanically following the rules by making sure the boxes are checked and the forms filled out and not really acting in the best interest of our clients.” “The outcome of a principles-based approach, practiced globally and with regulatory flexibility, will be that clients have confidence and faith in the industry – and that is a must for everyone involved,” Plumeri said. Plumeri spoke of principles driving Willis’ decision to abolish profit and volume based contingent commissions, be transparent with clients and attain contract certainty – for which he praised John Tiner and the FSA’s leadership. Principles are also the foundation of Client Advocacy, Willis’ global service model that ensures that the client is at the center of everything the company does. He also called for a consistent approach to regulation around the world affording clients the same level of industry service no matter where they are conducting business. www.willis.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. PIA's Brevik Says Main Street Agents, Industry Facing 'New Nexus of Challenges' WASHINGTON, March 20 /PRNewswire-USNewswire/ -- In remarks prepared for delivery at a meeting of the Board of Directors of the National Association of Professional Insurance Agents (PIA) April 1 in Arlington, Virginia, PIA National Executive Vice President & CEO Len Brevik says independent agents and the insurance industry are facing "a new nexus of challenges." "There has been a significant deterioration of the insurance industry's standing in the past six months," Brevik says in his prepared remarks. "This is not about quarterly financial reports, which for many carriers have never looked better. The insurance industry in general and professional independent agents in particular today face a new nexus of challenges. These are all coming at us at the same time in the legislative, regulatory and judicial arenas -- all branches of government." Brevik points out that advocates of federal regulation of insurance are taking advantage of public discontent resulting from some claims practices following Hurricane Katrina, leading some in Congress to hold hearings and propose legislation. He says two bills are of most concern to PIA. One would repeal the McCarran-Ferguson limited antitrust exemption for the insurance industry and the other would create federal regulation under a so-called "optional" federal charter. "All this is happening at the same time that several state Attorneys General continue their attempt to legislate how our industry operates by judicial fiat," Brevik states. "They are using a few settlement agreements to try to ban contingent commissions industry wide and impose legally flawed disclosure requirements that would create compliance problems for independent insurance agents." He added that these challenges are requiring PIA to fight on several fronts simultaneously -- opposing federal regulation in Congress, while defending contingent commissions in court and with state Departments of Insurance. "The McCarran repeal proposal is very dangerous because it would effectively negate Congress' 1945 designation of the states as regulators of the business of insurance," Brevik said. "This would throw all disputes between overlapping state and federal systems into the courts. It is a blueprint for chaos in the insurance marketplace." Brevik also observed that it is "interesting to see some of the advocates of optional federal charters in a quandary about McCarran. At first, some of them wanted to get Congress to pair a repeal of McCarran with passage of an optional federal charter, but quickly changed their strategy when they realized the extent of the damage a repeal of McCarran would do to the industry." Brevik's presentation is slated for April 1, several days after PIA members from around the country converge on Washington, D.C. for the association's 25th annual Federal Legislative Summit. www.pianet.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. Firms Need to Invest More in Recruitment and Training of Sales Professionals, According to DePaul Sales Management Study CHICAGO--(BUSINESS WIRE)--Firms are not adequately investing in sales force recruiting, hiring and training, according to a national survey of sales management practices at a broad range of companies conducted by DePaul University’s Sales Leadership Program. Although the majority of firms surveyed said their businesses depend heavily on sales or marketing, the research found that most firms spend little time interviewing sales candidates and firms could not quantify the cost of hiring them. In addition, less than half of the 302 businesses surveyed provide formal training for sales people and most relied on traditional compensation practices that could adversely affect customer relations. “This survey shows why companies are finding it difficult to hire and keep the best sales professionals,” said David Hoffmeister, director of DePaul’s Sales Leadership Program, who worked for more than 30 years as a consumer goods sales executive before joining academia. “Companies slashed their recruiting and training budgets in the 1980s and ‘90s to cut costs, and now they are not spending enough time and money to find and train good sales people. Given the fact that many veteran sales professionals are Baby Boomers who will be retiring soon, firms that want to stay competitive should start making greater investments in hiring, recruiting and training their sales forces.” Most of the firms in the survey use the traditional base salary plus commission formula for compensation, but Hoffmeister suggested that they should consider alternatives because it could undermine relations with today’s savvier customer. “Customers are unhappy with sales people who are motivated by commissions to sell to them rather than serve them,” he explained. “Firms need to think about reshaping their compensation practices so that sales people are rewarded for partnering with customers rather than for sales volume alone.” Findings of the survey include: Recruiting:
Selection, hiring and training:
Motivation and compensation:
Management and performance:
To view the full survey report, go to the Web page: http://newsroom.depaul.edu/news_release/2005-2006DePaulOmnibusSurveyReport.pdf Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Workplace Options Views Recent Foreclosure Crisis as Opportunity for Employers to Educate Their Workforce Providing Employees with Financial Advice before Taking on a Large Mortgage Can Help to Maintain a Sound Work-Life Balance RALEIGH, N.C.--(BUSINESS WIRE)--Recent news reports surrounding a crisis in the mortgage industry are a reminder to employers that financial concerns could negatively impact the emotional well-being of employees. “Time spent worrying about financial pressures due to a foreclosure or other concerns can mean the loss of an employee’s focus and productivity,” said Alan King, president of Workplace Options. King continued, “Phone calls to lending institutions or a search for solutions on the Internet means an employee can’t focus on the job at hand. This is why it is in the employer’s best interest to assist their workforce as much as possible by educating them on mortgage options, pitfalls and the consequences of default.” Workplace Options (WPO), the largest provider of work-life employee benefits in America, recognizes the burden a financial crisis can place on families. Through its Financial Assist program, WPO offers financial support and education programs to employers and their employees. Financial Assist offers access to certified financial professionals as an employee benefit. Services not only include housing education, but debt management, bankruptcy prevention and many other tools needed by employees looking for financial advice and assistance. WPO offers tips for those looking to take on a mortgage for a new home or are considering refinancing. Workplace Options (WPO) is America’s largest provider of work-life services. WPO’s market leading products are recognized for their innovative web delivery, flexibility and affordable pricing. Through its emindhealth division, WPO offers network management solutions that help EAP’s run their businesses more profitably and efficiently. WPO’s United Kingdom division, Employee Advisory Resource (EAR), is a premier provider of work-life services in Europe and offers EAP clients access to an expansive network of behavioral health providers throughout Europe and the World. Learn more at www.workplaceoptions.com. Contacts: Workplace Options, Sandy Egan, 800-699-8011 x2161 Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Taking Care of 'Small' Business: LIFE Foundation Offers Five Insurance Tips to Help Small Business Owners Make Sure Their Businesses are Secure WASHINGTON, March 21 /PRNewswire/ -- Owning your own business can be one of the most rewarding experiences of your life. However, according to a 2005 LIMRA survey, only 1 in 4 small-business owners has a sufficient succession and continuation plan in place. By not having a plan, small business owners are putting at risk the financial futures of their business partners, their employees and their own families. "Many people dream about owning their own business, but that dream can become a nightmare for your loved ones if that asset isn't protected financially," said David F. Woods, CLU, ChFC, president of the LIFE Foundation. "Every small business owner needs to ensure that he or she has adequate insurance coverage to protect their families, their business partners and key employees so that no matter what the future holds, their business can continue to provide for those who depend on it." To help small business owners understand their insurance options, the nonprofit LIFE Foundation offers the following five tips for putting in place a proper plan that will not only protect their business, but themselves and their families. As with any insurance decision, LIFE advises meeting with a professional insurance agent to discuss your individual needs and learn more. Tip #1 - Obtain adequate life and disability insurance to cover all your assets Tip #2 - Protect all of your business's overhead commitments Tip #3 - Have a plan in case your business partner becomes the only partner Tip #4 - Insure your right-hand man (or woman) Tip #5- Take care of your employees, and they'll take care of you For additional information and helpful tips, visit the section of LIFE's website (http://www.life-line.org/smallbusiness) dedicated to small business planning. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. The Atlantic Companies: Renovations Add Risk for Homeowners NEW YORK, March 21 /PRNewswire/ -- Homeowners face increased risks when they renovate or expand their houses, noted Dan Olmsted, president and CEO of The Atlantic Companies, which is best known for the Atlantic Master Plan insurance policy. "Planning and diligence before, during and after construction are the best ways to remedy increased risks of fire, theft, and injury," said Olmsted. The Atlantic Companies is offering advice in the spring 2007 issue of its SafetyWise consumer newsletter, which can be found at http://www.atlanticmutual.com. Additional information about The Atlantic Companies and the Atlantic Master Plan can be found at http://www.atlanticmutual.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Arthur J. Gallagher & Co. Acquires ISG International, Inc. ITASCA, Ill., March 20 /PRNewswire-FirstCall/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today announced the acquisition of ISG International, Inc. headquartered in Cambridge, Maryland. Terms of the transaction were not disclosed. Established in 1977, ISG International is a managing general agent and wholesale insurance broker providing insurance products for independent insurance agents and brokers throughout the United States. They specialize in the Information Technology industry including coverage for IT staffing and services, software development, systems integration, value-added resellers and e-commerce businesses. G. Philip Feldman and his associates will continue to operate from their current location in Cambridge, Maryland under the direction of Joel Cavaness, President of Risk Placement Services, Inc. (RPS), a subsidiary of Arthur J. Gallagher & Co. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Actuaries Should Play Greater Role In Managing Underwriting Cycles, CAS Is Told ATLANTA, March 21 -- With more actuaries occupying senior executive positions across the insurance industry, the profession can play an increasingly significant role in better managing underwriting cycles, Mark D. Lyons, president and chief operating officer of the Arch Insurance Group, told the Casualty Actuarial Society (CAS) at its annual Seminar on Ratemaking. While stopping the cycle completely would be unrealistic and naïve, moderating it is not, said Lyons, who is also an actuary. “Rather than merely accepting the existence of underwriting cycles, throwing up our hands to the gods and deeming them to be beyond our control I submit that we all can play a part in smoothing, if not eliminating, the steep highs and lows associated with the cycle,” Lyons said. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. CNA Pro Introduces Its Investment Management Solutions Product CHICAGO--(BUSINESS WIRE)--The Open Brokerage unit of CNA Pro introduces a new management and professional liability product specifically tailored to address the unique D&O and E&O exposures of the financial/investment community. The Investment Management Solutions product provides coverages which are targeted to hedge funds, mutual funds and investment advisors. “A rapidly changing landscape has increased scrutiny of investment companies and, in turn, investment managers,” said Tom Kocaj, vice president, CNA Specialty Lines. “We are developing a family of coverages designed to protect the financial and investment community from a wide range of liability exposures.” For additional information, call your local agent or visit the website at http://www.cnapro.com/html/Our_Products/OurProducts_DO.html Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Higher asbestos reserves hurt Munich Re U.S. unit MUNICH, March 20 (Reuters) - The U.S. unit of German reeinsurer Munich Re (MUVGn.DE: ) made a net loss of $1.03 billion in 2006, hurt by additional provisions for asbestos claims and a negative tax effect, Munich Re said in its annual report. The world's second-biggest reinsurer, which covers risks for the insurance industry, said it had shored up its reserves for asbestos claims by $600 million. A year ago, the company said it foresaw no further need to add to reserves at American Re. Tax effects cost American Re almost another $1 billion, Munich Re added in its report, published on Tuesday. Nonetheless, American Re's 2006 net loss was less than 2005's loss of $1.5 billion. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Subprime jitters subside as funding found Wed Mar 21, 2007 12:21PM EDT By Pedro Nicolaci da Costa NEW YORK (Reuters) - Fears that turbulence in the high-risk mortgage market would spread eased on Wednesday after two lenders managed to secure enough money to stay afloat. Fremont General Corp. (FMT.N: ) announced it is selling $4 billion of subprime residential loans to an unidentified buyer, a move that drove its battered stock up as much as 19 percent to a session high at $10.45 on the New York Stock Exchange. Meanwhile, hedge fund operator Citadel LP has taken a 4.5 percent stake in Accredited Home Lenders Holding Co. (LEND.O: ), a San Diego-based subprime lender. Accredited's stock climbed more than 10 percent to a session high at $11.91 on Nasdaq. "That consolidation effort makes it less of a contagion," said Mark Ficke, head of U.S. government bond trading at BNP Paribas in New York. Still, troubled lenders were paying a steep price for their newfound cash.(Additional reporting by Burton Frierson) © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Garanti Bank expects $570 mln one-off gain Wed Mar 21, 2007 11:43AM EDT ISTANBUL, March 21 (Reuters) - Turkey's Garanti Bank (GARAN.IS: ) said on Wednesday it expected a $570 million one-off gain from the sale of 80 percent of its insurance arm to Dutch firm Eureko. "There is a cash inflow of more than $600 million. Garanti will be able to write off a one-off gain of somewhere in the neighbourhood of $570 million," said Garanti general manager Ergun Ozen. The sale of 80 percent of the insurance arm for 365 million euros was announced earlier on Wednesday, along with news of a sale of 15 percent of its retirement fund Garanti Emeklilik to Eureko for 100 million euros. Garanti Bank is Turkey's fourth largest lender. ((Reporting by Mustafa Yukselbaba, writing by Thomas Grove; editing by Greg Mahlich; Reuters Messaging: thomas.grove.reuters.com@reuters.net; e-mail: thomas.grove@reuters.com; telephone: +90 212 350 7051)) (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. NEW EXPERT COMMENTARY FROM IRMI.COM There are now nearly 900 risk management and insurance articles on IRMI.com. Below you'll find summaries of some recent additions with links to the articles. THE HONORABLE ENGAGEMENT CLAUSE - Larry Schiffer explains why reinsureds and reinsurers have been moving away from incorporating honorable engagement language in their reinsurance - contracts. http://www.irmi.com/Expert/Articles/2007/Schiffer03.aspx IS OFFSHORE THAT FAR FROM SHORE? - In his Insurance Industry Market Practices column, Pete Polstein looks at the movement of insurance offshore. http://www.irmi.com/Expert/Articles/2007/Polstein03.aspx WHEN AGENTS OR APPLICANTS LIE TO INSURERS - Barry Zalma discusses the case for rescission when full and accurate facts about the risk are not conveyed to the insurer. http://www.irmi.com/Expert/Articles/2007/Zalma03.aspx NOT ANOTHER INSURANCE GIMMICK - Dr. George Head warns that calling hurricanes "floods" and using credit scores for auto premiums strain policyholders' trust. http://www.irmi.com/Expert/Articles/2007/Head03.aspx Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. INSURANCE NEWSLINK Articles Recent articles added to INSURANCE NEWSLINK, the worldwide, strategic concise intelligence database of over 27,000 articles including interviews, uniquely analysed by company, market, research, regulatory, and IT topics. Please click here for a content overview and a 15-day free review. THE TIME EFFECTIVE WAY TO STAY AHEAD
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. The Government Accountability Office (GAO) today released the following reports, testimony, and correspondence: Medicare: Thousands of Medicare Part B Providers Abuse the Federal Tax System. GAO-07-587T, March 20 http://www.gao.gov/cgi-bin/getrpt?GAO-07-587T Highlights - http://www.gao.gov/highlights/d07587thigh.pdf Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. China Life to expand offerings with Guangdong bank -paper BEIJING, March 20 (Reuters) - China Life Insurance Co. (601628.SS: ), the country's top life insurer, is teaming up with Guangdong Development Bank for credit card and other services and is also eyeing acquisition opportunities to expand its financial offerings, an official newspaper reported on Tuesday. The China Securities Journal cited Yang Chao, chairman of China Life (2628.HK: ), which holds a 20 percent stake in the Guangdong bank, as saying his company planned to expand its cooperation with the bank beyond bancassurance. The two would launch long-term strategic cooperation in insurance asset management, bank cards, e-commerce, sharing of their client lists and brand promotion, the paper reported. Beijing has been relaxing restrictions as part of its efforts to modernise the still fragile financial industry. Among the changes, insurance companies have been permitted to buy stakes in banks, and banks can set up insurance companies and fund companies. ((Reporting by Langi Chiang, editing by Ken Wills; yan.jiang@reuters.com; Reuters Messaging: yan.jiang.reuters.com@reuters.net; +86 10 6598 1207)) Keywords: CHINALIFE BANK/ACQUISITION (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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21. Community Rating Issue Divides Pennsylvania Insurers Blues Plans Hope for Passage, While For-Profit Insurers Fear Stifling of Competition, According to a New Report from HealthLeaders-InterStudy NASHVILLE, Tenn., March 21 /PRNewswire-USNewswire/ -- HealthLeaders- InterStudy, a leading provider of managed care industry intelligence, reports Gov. Edward Rendell's proposal to ban medical underwriting in Pennsylvania is reopening a rift between the state's Blues plans and for-profit insurers. According to the latest Pennsylvania Health Plan Analysis, the administration's Prescription for Pennsylvania healthcare reform package requires all health insurers to use "adjusted" community rating for small- group and individual policies, meaning underwriting would be limited to risk factors relating to age, geographic region and family size, and no consideration for medical history and gender. "The argument is that insurers using medical underwriting cherry pick the healthy customers, leaving older and sicker people in community-rated plans, and thereby increasing rates for them," states Chris Lewis, HealthLeaders- InterStudy market analyst and author of the report. "But the for-profit plans in Pennsylvania counter that they need underwriting discretion to compete against the dominant Blues plans and to provide choice to consumers." With two attempts at small-group reform failing two years ago, the state's Blues plans are hoping community rating will finally pass this year. The state's for-profit insurers feel the implementation of a community rating will stifle competition. Blues insurers, however, argue that banning medical underwriting would create more stable and affordable rates for small companies at risk of being priced out of the health insurance market. Business groups are also divided over the issue. The National Federation of Independent Businesses opposes the community rating measure as hurting small businesses, while SMC Business Councils, a Pennsylvania business association, has been arguing for community rating for years. Other news in the Pennsylvania market: -- State officials are moving forward with the decision to scrap the voluntary managed care Medicaid program for people on Medical Assistance, saying the move will save money; health plans, however, fear the move is the beginning of the end of managed care at a fixed amount in the state's Medicaid program. -- Northeast Pennsylvania is emerging as a new hot spot for health plan expansion, as both Aetna and CIGNA HealthCare working to penetrate the market with both HMO and PPO products targeted at small and large employers. About Health Plan Analysis Health Plan Analysis identifies key health plan trends, allowing healthcare businesses to create comprehensive strategic plans and sales strategies at state and local levels. www.HealthLeaders- InterStudy.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Nationwide Announces Investment Community Conference COLUMBUS, Ohio--(BUSINESS WIRE)--Nationwide Financial Services, Inc. (NYSE:NFS), a leading provider of long-term savings and retirement products, will host an investment community conference in New York City on March 27, 2007. The conference will be held at Jumeirah Essex House, 160 Central Park South. The conference will commence with opening remarks at 8:00 a.m. Eastern time, and should conclude at approximately 2:00 p.m. The conference will outline the company’s business strategy and financial outlook. Presenters will include Jerry Jurgensen, chief executive officer, Mark Thresher, president and chief operating officer, Tim Frommeyer, chief financial officer, as well as other members of the senior management team. Members of the investment community are invited to attend. To register, please contact Paulina Dolgov at (480) 614-3107 or pdolgov@christensenIR.com. A simultaneous webcast of the conference will be available from the investor relations section of www.nationwide.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Diamond Hill Investment Stock Moves to Nasdaq Global Market Columbus, Ohio, March 20 /PRNewswire-FirstCall/ -- Diamond Hill Investment Group, Inc. (Nasdaq: DHIL), today announced that its stock is now listed on the NASDAQ Global Market. The company reported that its application for listing was accepted March 15, 2007. Diamond Hill, which will continue to trade under the same symbol, DHIL, had previously been listed on the NASDAQ Capital Market. The NASDAQ Global Market sets higher standards for listing specifically requiring minimum market capitalization, net income and shareholders' equity. www.diamond-hill.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. PBM Lobby Opposes Medicare Part D Reforms Corporate Drug Middlemen Seek to Protect Profits at the Expense of Consumers, Health Providers ALEXANDRIA, Va., March 20 /PRNewswire-USNewswire/ -- Pharmacy benefit managers (PBMs) -- corporate middlemen who control pharmacy benefit plans -- are bilking community pharmacies through their practice of delaying payments of money owed to these health care providers, according to theNational Community Pharmacists Association (NCPA). Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Many Seniors Will Forgo Needed Medical Services if Medicare Advantage is Taken Away Americas Health Insurance Plans logo. (PRNewsFoto) Most doctors say Medicare Advantage cuts would harm seniors; Satisfaction with Medicare health plans rises WASHINGTON, March 20 /PRNewswire-USNewswire/ -- Thirty-five percent of seniors - including 62 percent of low-income seniors - enrolled in Medicare Advantage say they would skip some of the health care treatments they currently receive if the option of choosing a Medicare health plan is taken away, while three-fourths of physicians believe that seniors will be harmed if Congress cuts the Medicare Advantage program. The complete surveys and summaries of findings are available at http://www.ahip.org. America's Health Insurance Plans - Providing Health Benefits to More Than 200 Million Americans Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. ESFI Receives Grant from State Farm Insurance ARLINGTON, Va., March 20, /PRNewswire-USNewswire/ -- The Electrical Safety Foundation International (ESFI) announced today that it has received a $53,000 grant from State Farm Insurance. The grant will be used to further ESFI's mission reduce incidences of injury and death from electrocution and electrical fire. "People often forget about electricity when thinking about safety in their homes, schools, and places of business," said State Farm Manager P&C Underwriting Jamie France. "Electricity causes more than $1 billion in damage every year, and hundreds are injured or killed." ESFI is the only non-profit organization in the United States dedicated solely to electrical safety. Because it is not a member organization, the foundation relies on contributions to fund its educational programs. "We are most grateful to Mr. France and State Farm for this generous gift," said ESFI President Brett C. Brenner. www.electrical-safety.org . Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Phillip Roy Financial Services Announces National Training Seminars for Financial Professionals SARASOTA, Fla.--(BUSINESS WIRE)--Phillip Roy Financial Services, a leading national firm in the sales of annuities and life insurance, has announced a series of training seminars for insurance agents, financial advisors, CPAs, and attorneys focusing on the growing baby boomer demands for insurance and annuity products. These training seminars will feature professional experts in each area and will be free of charge to attendees. Phillip Roy Financial Services will be holding these events at various locations nationally over the next three month period, with events currently scheduled in Tampa, Florida, Los Angeles, California and Kansas City, Kansas. For registration information contact Andre Armstead at 800-254-9482. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Towergroup Announces 2007 Conference Theme: "Globalization: Strategies For A Small World" NEEDHAM, MA, March 20, 2007 - TowerGroup today announced the theme of its 2007 Financial Services Business & Technology Conference and Exhibition: "Globalization: Strategies for a Small World." The event, which will be held from May 30 to June 1, 2007, at The Westin Copley Place Hotel in Boston, Mass., is recognized as one of the top venues for delivering in-depth perspectives on the key issues facing the global financial services industry. The 2007 TowerGroup Conference will offer attendees the opportunity to participate in more than 30 strategic sessions, including general sessions led by featured guest speakers and industry-specific sessions led by TowerGroup analysts. This year's event will again feature an exhibition of some of the financial services industry's leading technology companies and solutions providers. Exhibition and sponsorship opportunities at various levels are still available. For more information, contact Neil Bock at 508-870-9787 or nbock@towergroup.com or visit: http://www.towergroup.com/research/news/page.htm?pageId=1382. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. Pelican Bay State Prison Officers Arrested on Multiple Insurance Fraud Charges California Department of Insurance Shuts Down Crescent City Insurance Agency CRESCENT CITY - Insurance Commissioner Steve Poizner announced today the arrest of two Pelican Bay State Prison Correctional Officers for stealing insurance premium payments and issuing bogus documents to customers of their insurance agency, some of whom were fellow prison employees. Margaret (Maggie) Young, 61, was arrested at Pelican Bay State Prison in Crescent City when she reported for work Tuesday. Jerrold (Jerry) Young, 53, did not report to work as scheduled and CDI officers arrested him in Crescent City a short time later. Both were booked into the Del Norte County Jail. Additionally, CDI moved to shut down their Crescent City insurance agency. "The Young's abused their positions as correctional officers to defraud their colleagues," said Commissioner Steve Poizner. "Their crimes unfairly tarnish all those who are sworn to protect and serve the public." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. New Course on Health Insurance! What's going on with health insurance? Health insurance reform is one of the most significant issues being debated at the state and national levels. Understanding how health insurance is delivered and regulated is critical in today's market. To this end, the NAIC has developed "Fundamentals of Health Insurance," a course that will explore various facets of health insurance and its regulation. Topics include the regulatory framework, types of health products, licensing of plans, premium approval, solvency protections, market practices, consumer protections, fraud, and the senior market. The two-day class is May 10-11 at the Hilton Washington in Washington, D.C. For additional information about course content, as well as about lodging and registration, click here http://www.naic.org/documents/education_2007_fundamentals_health.pdf . Register by March 29 and save $50 off your registration fee! Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. Kaplan Financial Partners with the National Federation of Independent Business to Offer Financial Services Education Chicago and Nashville, March 21, 2007 – The National Federation of Independent Business, the nation's leading small-business advocacy group, will now offer its members a broad array of test preparation and continuing education courses for the insurance, securities and banking industries through Kaplan Financial. Kaplan Financial ( www.kaplanfinancial.com ), a leader in license exam preparation and continuing education for insurance and financial services institutions and individuals, will provide NFIB members live and virtual license exam prep classes, as well as online and self-study continuing education. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 33. Insurance, Service Industries Support Free Trade Agreement with South Korea Washington, D.C. (March 20, 2007) -- Insurance consumers both in the United States and South Korea would gain significantly from a comprehensive free trade agreement (KORUS FTA) between the two nations, says a joint statement issued by the American Council of Life Insurers (ACLI), the American Insurance Association (AIA) and the Insurance Committee of the Coalition of Service Industries (CSI) to the House Ways and Means Trade Subcommittee. The KORUS FTA would allow U.S. life insurance and property-casualty insurance companies to offer products to South Korean consumers and make long-term investments in the South Korean economy, enhancing the quality of life for families, households and workers. We are encouraged with progress being made on elevating standards in the KORUS FTA as key market opportunities will be enhanced, for example through more regularized and transparent regulatory procedures and the allowance of increased foreign currency reserves. www.acli.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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