Daily Quote: "Words once spoke can never be recalled." - - Wentworth Dillon
Key Benefit Resources: (877) 907-5511, sbell@keybenefitresources.com, www.keybenefitresources.com 1. Client Alert: Will Katrina’s Winds Blow Away McCarran’s Antitrust Exemption? On February 15, 2007, Senators Patrick Leahy, Arlen Specter and Trent Lott introduced the Insurance Industry Competition Act (S.618) (the same bill in the House is H.R.1081) which would repeal the federal antitrust exemption in the McCarran-Ferguson Act. The McCarran Act now provides that the federal antitrust laws apply to the business of insurance only to the extent that the business is not regulated by state law or if the conduct in question involves boycott, coercion or intimidation. The proposed Act would allow the full enforcement of the federal antitrust laws by the Justice Department, the Federal Trade Commission and private plaintiffs against insurance companies and others engaged in the business of insurance, thereby jeopardizing participation in joint industry activities regulated by state law. The proposed Act completely eliminates McCarran’s limited antitrust exemption. This limited immunity was designed to allow the individual states to regulate the business of insurance, even by authorizing joint insurer conduct if a state so desired. The proposed Act would end this exercise of federalism inherent in McCarran’s accommodation of state regulation and would impose the dictates of the federal antitrust laws on the regulated business of insurance. As such, the proposed Act would subject insurance companies to possibly differing federal and state regulation of the same activities. Any clash between federal antitrust dictates and a state’s regulatory system would render problematic the joint activities that the states now deem to be protective of the interest of insurance consumers and the maintenance of a healthy and efficient insurance marketplace. Read entire report: http://www.lordbissell.com/Newsstand/2007-04_Katrina_GurleyCoughlin.pdf Contributing Authors Joseph E. Coughlin, 312.443.0343, jcoughlin@lordbissell.com John C. Gurley, 312.443.0318, jgurley@lordbissell.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. NAMIC: Antitrust Report ‘Troublesome’ WASHINGTON (April 4, 2007) — A new report calling for a review of the McCarran-Ferguson Act is troubling, said the National Association of Mutual Insurance Companies (NAMIC). While the report — by the Antitrust Modernization Commission — does not recommend repealing the antitrust exemption provided to insurance companies under the Act, its suggestion for Congress to carefully review it and other exemptions could ultimately lead to higher costs for consumers. “Many of the statements in the report indicate a lack of understanding of the business of insurance,” said Carl Parks, NAMIC’s senior vice president for federal affairs. “There are several statements that incorrectly characterize the McCarran-Ferguson antitrust exemption.” For example, the commissioners contend that McCarran-Ferguson and other exemptions lead to higher prices, reduced output, lower quality, reduced innovation, and less competition. They also argue that a decision to provide an exemption is a decision to sacrifice competition and consumer welfare. “The exact opposite is true in the case of the nation’s 5,000 insurers,” Parks said. “It is the presence of the exemption that has fostered a vibrant and competitive marketplace affording consumers greater choice, lower prices, higher quality and more varied products and increased innovation, while ensuring a sound and stable marketplace.” The report incorrectly contends that immunities and exemptions benefit relatively small special interest groups and spread their costs to the broad consuming public. Actually, McCarran-Ferguson benefits all insurance consumers and serves to safeguard consumer welfare, Parks said. NAMIC found other problems with the report. The commissioners state that solvency should not serve as justification for antitrust exemptions. In fact, solvency is an integral component of consumer welfare and protection in the property/casualty context, Parks explained. The report also discounts fears of litigation and legal uncertainty. “Essentially, the report says that insurers have nothing to fear from being subject to the antitrust laws as long as the cooperative behavior in which they’re engaged has pro-competitive effects,” said Robert Detlefsen, NAMIC’s vice president of public policy. “The report is unduly confident that courts with little or no experience adjudicating insurance issues would be able to distinguish clearly between pro-competitive and anti-competitive practices. We are not nearly as optimistic about this prospect as is the commission.” Detlefsen further said the report does not address the negative consequences for insurers and consumers that would result from the legal uncertainty and expense of private antitrust litigation to settle such questions if the exemption were to be repealed. “The main problem with the report is that (a) it assumes that courts applying a rule of reason analysis to alleged antitrust violations by insurers will actually make reasonable decisions; (b) it discounts the impact that costly and protracted antitrust litigation would have on companies and consumers; and (c) it ignores the extent to which the threat of litigation would inhibit insurers from acting cooperatively even if they thought that eventually their actions would survive antitrust scrutiny by the courts,” Detlefsen continued. Ironically, Commissioner Jonathan M. Jacobson, who wrote a separate statement calling for the repeal of the insurance antitrust exemption as well as exemptions applying to three other industries, also opined that “the Commission would have better served the country through a more focused review of these four [exemptions] than by relying purely on the generalist overview reflected in our official recommendations.” “We couldn’t agree more,” said Detlefsen. “Had the Commission more carefully examined the implications of repealing the limited insurance antitrust exemption, it’s likely that Commissioner Jacobson would have reached a different conclusion.” NAMIC opposes any changes to the McCarran-Ferguson Act and will continue to work with members of Congress to inform them on the effects of the limited antitrust exemption on the insurance industry and America’s insurance consumers. www.namic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. The Disquiet After the Storm: NAPCO® Sees Restlessness in Large Property Market EDISON, NJ (April 3, 2007) – Even a year of profitability has not settled the large property insurance market for buyers, especially for catastrophic coverage near coastlines and in earthquake zones, finds a new research report from NAPCO® LLC. “While the chaos and dysfunction that followed in the wake of Hurricane Katrina have moderated, capacity is still tight and prices are still high” in 2007, said David Pagoumian, president and chief operating officer of NAPCO, a wholesale insurance brokerage firm specializing in property cover. In this environment, agents and brokers who take a wait-and-see position may miss chances for improving terms and conditions, the report noted. “Opportunities exist to improve property insurance programs. Uncovering them, however, is not easy,” Pagoumian stated. “Catastrophe-exposed property remains the key exception to the trend of abundant capacity and softening prices” in the property/casualty insurance industry, said Pagoumian. The “turbulence” in the property insurance market during 2006 stood in stark contrast to the relatively calm weather and earthquake conditions during the year, added Pagoumian. “After the severe retrenchment from catastrophe-prone zones that followed a record $62 billion in insured catastrophe losses in 2005, established insurers are analyzing how best to deploy their newly replenished capital for growth under difficult conditions.” The March 2007 report is titled “Dazed and Confused” and is part of the NAPCO “State of the Market” Property Insurance Insights series. The report includes data on catastrophic property insurance trends and analysis of weather, earthquake, terrorism and other factors affecting the large property insurance marketplace. The report can be found online at www.NAPCOllc.com or by calling (732) 549-5222. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. NEW I.I.I. WEB SITE HELPS SMALL AND MID-SIZED BUSINESSES UNDERSTAND THEIR INSURANCE NEEDS NEW YORK, April 4, 2007—Tips to help small and medium-sized businesses understand their insurance needs and prevent losses are provided in the Insurance Information Institute’s (I.I.I.) new Web site Insuring Your Business: A Small Business Owners’ Guide To Insurance. With over seven million small businesses in the U.S., ranging from construction firms to grocery stores to home-based businesses, all have one thing in common: Without the right insurance coverage, each could be wiped out by a disaster or a lawsuit. In addition, almost all businesses are accountable for the safety of their workers and bear responsibility for injuries suffered on the job. This resource was designed to help business owners decide what kinds of insurance they need for their particular business. The guide, which can be accessed at http://www.iii.org/smallbusiness, provides information on what coverages businesses should consider such as a business owners policy (BOP), as well as what business owners should know about risk management and loss control. The Web site also features a section on insurance for specific businesses including artisan contractors, business offices, construction, e-commerce, farm or ranch, food service business, home-based businesses, lodging business, manufacturers, non-profit organizations, professional practices, real estate and rental properties, retail stores and service businesses. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. GlobalOptions Groups’ Emergency Preparedness Expert Participates in Panel to Provide Guidance for Cities in Extreme Health Event NEW YORK--(BUSINESS WIRE)--GlobalOptions Group, Inc. (OTCBB: GOPG), a leading provider of domestic and international risk management services, today announced that Barry Scanlon, Senior Vice President & Partner of James Lee Witt Associates, participated in a working group to develop a guideline for Community Engagement in Health Emergency Planning. “The cities around the country best able to face tornados, earthquakes, hurricanes, and now, pandemic flu see disasters as a grassroots issue, and not something simply left to those in charge,” said Scanlon. “Mayors, governors and policymakers everywhere need to read this report. Community officials need to engage grassroots organizations to be part of this process.” The group concluded that community engagement – defined here as structured dialogue, joint problem solving and collaborative action among formal authorities, citizens at-large, and local opinion leaders around a pressing public matter – can augment officials’ abilities to govern in a crisis, improve the application of communally held resources in a disaster or epidemic, mitigate against communitywide losses, and help accelerate recovery. “Preparedness means more than personal stockpiling,” says Monica Schoch-Spana, PhD, a social scientist with the Center for Biosecurity who chaired the Working Group. “Encouraging self-sufficiency can be counterproductive when the entire community’s well-being is at stake. Officials need to work with citizens and civic groups before disaster strikes to promote all the ways the public can contribute, including taking part in policy decisions, building volunteer networks, getting support for tax or bond measures that limit vulnerability and improve health and safety agencies, and yes, having family emergency plans, too.” The report can be found in the Spring 2007 issue of Biosecurity & Bioterrorism and online at the Center for Biosecurity’s Web site www.upmc-biosecurity.org. www.globaloptionsgroup.com www.wittassociates.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. Chubb's Position on Law Firm Blogs WARREN, N.J., April 4 /PRNewswire/ -- "The Chubb Group of Insurance Companies was recently the subject of some confusing media reports about the company's willingness to insure blogs. As a leading insurer of law firms across the country, we make it a priority to be on top of emerging trends that affect law firms," said James L. Rhyner, worldwide lawyers professional manager for Chubb Specialty Insurance. "Today, more and more law firms are establishing blogs. Chubb does insure this new form of communication -- and will continue to do so within select parameters." Depending on the way law firms use technology, a blog can create a minimal to significant level of added risk. "In that regard, managing risk associated with a blog is an appropriate part of the underwriting function -- and Chubb takes its underwriting responsibilities seriously," said Rhyner. Chubb has found that law firm blogs fall into two general classes: informational and advisory. * An informational blog presents information or offers a forum for discussing issues in a neutral, unbiased way. This type of blog offers information similar to that found in an article or presented by an individual in a seminar -- informational blogs do not provide advice to a specific individual on a unique matter. Typically, these blogs pose a minimal level of risk from Chubb's underwriting perspective. * In an advisory blog, however, a law firm offers advice. By its nature, then, it increases the risk of a malpractice lawsuit against the firm. An advisory blog can potentially establish an attorney-client relationship, possibly bypassing such safeguards as determining the suitability of a potential client and checking for possible conflicts of interest. As always, Chubb's underwriters will evaluate each submission on its own merits. Chubb provides insurance coverage for 90% of the law firms listed in The American Lawyer's AM Law 200. It also offers brokers and law firm customers free loss management guidance, including A Lawyer's Guide to Managing E- Lawyering Risks and Managing Legal Malpractice. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. PhRMA Statement on the Medicare Prescription Drug Program WASHINGTON, April 4 /PRNewswire-USNewswire/ -- Pharmaceutical Research and Manufacturers of America Senior Vice President Ken Johnson issued the following statement on the AARP's campaign to modify the Medicare prescription drug program: "AARP's misguided efforts to alter the Medicare prescription drug benefit continue despite overwhelming evidence that the program is working for seniors and taxpayers alike. Most troubling is that the policy changes the group seeks -- allowing Medicare to 'negotiate' drug prices -- threatens to do more harm than good for patients in need of potentially life-saving medicines. "Medicare Part D's track record speaks for itself. For the first time ever, more than 90 percent of seniors and other beneficiaries have comprehensive prescription drug coverage. Seniors also are experiencing significant savings. "According to the Centers for Medicare and Medicaid Services (CMS), seniors are saving on average $1,200 a year on their medicines. Seniors themselves report that their monthly out-of-pocket spending on medicines has dropped 54 percent since the program began, according to a poll by Public Opinion Strategies. "Equally as important, seniors are satisfied with their drug coverage. In fact, some 80 percent of seniors are satisfied with their Medicare prescription drug coverage, according to several independent polls sponsored by organizations such as AARP, J.D. Power and Associates, the Medicare Rx Education Network, and Kaiser Family Foundation. "Robust competition among Medicare drug plans continues to drive down costs for both seniors and taxpayers. According to CMS, average premiums are $22 a month -- 46 percent less than previously estimated. "In addition, the non-partisan Congressional Budget Office (CBO) estimates Medicare Part D will cost 26 percent less over the next 10 years than earlier forecasts, meaning taxpayers will save $265 billion. www.phrma.org For information on how innovative medicines save lives, visit: http://www.innovation.org For information on the Partnership for Prescription Assistance, visit: http://www.pparx.org For information on the danger of imported drugs, visit: http://www.buysafedrugs.info Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. New Federal Income Tax Deduction for Mortgage Insurance Premiums Will Benefit Many 2007 Home Buyers New deduction for 2007 tax year is something buyers should factor into home-financing calculations WASHINGTON, April 4 /PRNewswire/ -- Many consumers will enter this year's spring home buying season with a new tax deduction that can put extra money in their pockets when they file their taxes next year. The reason: a new federal tax deduction allows many qualified families to write-off premiums for private and government mortgage insurance on loans that close in 2007. This is the first time that homeowners with low down payment loans will be able to deduct the cost of their mortgage insurance premiums, resulting in an average annual tax savings ranging between $300 and $350 for taxpayers taking the deduction. Under the new law, passed by Congress and signed by President Bush late last year, private mortgage insurance (PrivateMI) premiums are fully tax deductible for borrowers who buy or refinance a home this year if their adjusted gross income is $100,000 or less. Families with incomes of more than $100,000 and up to $109,000 will be eligible for a reduced deduction. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. GREENSTEIN ROGOFF OLSEN & CO WARNS OF COMMON TAX FILING MISTAKES "Top Ten Filing Mistakes" made on self-prepared income tax returns, according to the IRS. FREMONT , California, April 4, 2007 – With the federal tax filing date looming just a week and-a-half away, Alan Olsen, Managing Partner at Greenstein Rogoff Olsen & Co., one of the Bay Area's top CPA firms, released the IRS's "Top Ten Filing Mistakes" made by those who prepare their own income tax returns. If you are preparing your own return this year, be sure you don't fall into one of these common traps: 1. Choosing the wrong filing status. 2. Failing to include or using incorrect social security numbers. 3. Failing to use the correct forms and schedules. 4. Failing to sign and date the return. 5. Claiming ineligible dependents. 6. Failing to pay and report domestic payroll taxes. 7. Failing to report income because it was not included on a Form W-2, Form 1099 or other information return. 8. Treating employees as independent contractors. 9. Failing to file a return when due a refund. 10. Failing to check liability for the alternative minimum tax. www.groco.com GROCO : Trusted Advisors to the Highly Successful — Since 1964. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. CNP Assurances Completes the Acquisition of 94% of Spanish Insurer Skandia Vida PARIS, April 4 /PRNewswire-FirstCall/ -- CNP Assurances, France's leading personal insurer, has today completed the acquisition of 94% of Spanish insurer Skandia Vida S.A. de Seguros y Reaseguros ("Skandia Vida") from Skandia Insurance Company Ltd, a subsidiary of Old Mutual plc. The transaction, which was announced on 20 December 2006, has been cleared by the Spanish regulatory authorities. The acquisition is in line with CNP Assurances' international development strategy, which focuses primarily on southern Europe, giving the Group a foothold in the Spanish individual life insurance market alongside its operations in Italy and Portugal. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. AIG Private Client Group Introduces Admitted Group Excess Liability Insurance NEW YORK--(BUSINESS WIRE)--AIG Private Client Group, a division of the personal lines property and casualty insurance subsidiaries of American International Group, Inc. (AIG), today announced an admitted Group Excess Liability insurance program. Group Excess Liability insurance is designed to help protect the personal assets of highly compensated individuals at corporations, law and investment firms, family offices and other organizations with a concentration of high-net-worth members. Its admitted status can benefit policyholders with cost savings and facilitate policy administration for agents and brokers. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Priority Health Purchase of Care Choices Receives State Approval GRAND RAPIDS, Mich.--(BUSINESS WIRE)--The purchase of Trinity Health’s Care Choices HMO, Care Choices PPO and Preferred Choices PPO health plans by Priority Health, a Grand Rapids, Michigan based health plan received approval from the Office of Financial and Insurance Services. As a result, Priority Health will begin serving more than 122,000 members, 83 hospitals, 1,500 employer groups and 7,300 physicians in Eastern Michigan. priorityhealth.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Integro Forms International Insurance and Reinsurance Unit NEW YORK & LONDON--(BUSINESS WIRE)--Integro Ltd., a New York-based insurance brokerage and risk management firm, today announced the formation of an international insurance and reinsurance business unit to be based in London. This group will offer unique worldwide insurance and reinsurance business capabilities for independent brokers and partners. Its members will have access to the global markets without limitation. www.integrogroup.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Lexington Insurance Company Forms London-Based Casualty Mid-Layer Excess Unit NEW YORK--(BUSINESS WIRE)--Lexington Insurance Company, a member company of American International Group, Inc. (AIG), today announced its London operation has formed a new Casualty Mid Excess unit offering $50 million in capacity. The unit will focus on non-lead layer excess casualty programs with attachment points of $25 million or greater. The new capacity will not diminish existing capacity already committed on a risk layered program from Lexington. For further information on the new Casualty Mid Excess unit, please contact, Peter Bone, Senior Vice President, at 011 44 207 954 8716 or peter.bone@aig.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Allianz Life Insurance Company Of North America Partners With Aguilar Productions To Present Hispanic Marketing Conference. April 24-25 ST. PAUL, Minn., April 4 /PRNewswire/ -- The 11th annual Hispanic Marketing Midwest conference, produced by Aguilar Productions, and presented by Allianz Life will be held at Saint Paul RiverCentre on April 25th, from 8am to 4pm. For conference information on the web go to http://www.aguilarproductions.com, or call 651-665-0633 Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. MetLife Introduces Full Service Dental Benefits Plan for Retiree Market NEW YORK--(BUSINESS WIRE)--MetLife today announced a new dental plan to help employers meet the needs of their retirees. MetLife’s Full Service Dental for Retirees is a turnkey offering that bundles standard and enhanced dental plans along with participant marketing, enrollment, customer service, record-keeping and billing services. Retirees pay 100% of the premium. Dental coverage is seen as a valued benefit by employees of all ages, and today’s retirees, who, in general, are living longer and healthier lives than previous generations, are looking for continued access to affordable oral health care. “Continuing dental benefits into retirement — especially with a plan that provides the freedom to use any dentist — allows retirees to maintain trusted relationships with their dentists as well as helps reduce the financial obstacles that can prevent obtaining appropriate oral health care. Employers can play a critical role as MetLife research indicates maintaining dental benefits coverage is very important to pre-retirees and retirees,” said Michael Schwartz, MetLife vice president, Dental Product Management. www.metlife.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Maryland Board of Public Works Approves Pharmacy Benefit Management Contract Agreement Covers More Than 200,000 Maryland Beneficiaries ROCKVILLE, Md.--(BUSINESS WIRE)--HealthExtras, Inc. (NASDAQ:HLEX) – The Maryland Board of Public Works today unanimously approved a pharmacy benefit management contract with HealthExtras’ pharmacy benefit management subsidiary, Catalyst Rx. The multi-year contract will be effective July 1, 2007, and will cover more than 200,000 members. www.healthextras.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. LTC Consultants Announces 'Build Your Brand' LTCI Book Authoring Program NASHVILLE, Tenn., April 5 /PRNewswire/ -- Phyllis Shelton, founder of LTC Consultants, announced a brand-new industry program for long-term care insurance professionals - the "Build Your Brand" Book Authoring Program. "Our goal is to enable financial service professionals who are serious about the LTCI industry to author a book filled with exceptional information about long-term care and long-term care insurance - customized with the representative's personal information and stories throughout the book. It's a great way to add credibility to one's practice by having his or her own book available to give away to LTCI prospects," according to Shelton. After completing a template with information such as author bio, company, contact information and local community or family LTC stories, Shelton's company takes that information and incorporates it into a complete 250-page book on long-term care insurance entitled LONG-TERM CARE: Is YOUR Family Protected? The book includes chapters such as Features of a Good LTCI Policy, Alternatives for Financing Long-Term Care, LTCI Partnership Programs, Medicare Benefits including Medicare Part D and Medicare Advantage, and includes a chapter on Medicaid and the impact of the Deficit Reduction Act on LTC benefits. Those interested in receiving additional information should email bill@ltcconsultants.com or call LTC Consultants at 800-400-1118. www.LTCConsultants.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Market Barometer - March 2007 Rates Keep Falling The property casualty market is continuing to soften. Outlining some of the reasons for the trend, Richard Kerr, CEO of MarketScout, explained, “The softening of the market is due to seven drivers: · Major insurance companies are reporting strong profits. · Many admitted carriers are now writing business which was previously written in the non-admitted market. · There is an influx of new capacity via start up insurance companies. · Florida has passed legislation which will result in billions of dollars of new property capacity. · The stock market remains strong. · Corporate earnings are strong. · There have been no major catastrophe losses in almost 18 months. As a result, property and casualty rates are down 12% for March 2007.” The findings of MarketScout’s barometer are further supported by surveys conducted by The National Alliance for Insurance Education and Research. These surveys were conducted during CIC and CRM institutes held across the United States in March 2007. The barometer is compiled by MarketScout, a Dallas, Texas based electronic insurance exchange which underwrites and distributes hundreds of product lines to its 58,000-member agency network across the United States. Over 40 "A" Rated carriers participate in the MarketScout exchange platform at http://www.marketscout.com. 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. Executives in the Voluntary/Worksite Market See Positive Growth for the Market, According to the Latest Study by Eastbridge Consulting Group, Inc. AVON, Conn.--(BUSINESS WIRE)--In a recent survey of top worksite executives, Worksite Marketing: An Executive Perspective 2007, top executives in companies expect voluntary/worksite sales (for the industry) to grow at an average of 10 percent per year for the next five years. Among the respondents, the range of answers ranged from a low of three percent to a high of 25 percent. This is a positive sign for the industry since, in recent years, some have questioned a leveling off of worksite sales. But the executives were even more positive about their own companies’ prospects for growth. The average annual expected growth for the respondents’ own company was 17 percent per year over the next five years. Here the range was from a low of two to three percent to a high of 50 percent. In general, executives of medium-sized companies (new business annualized premium of $10- $49) expect the highest growth rates for their company, an average of 19 percent. Small companies aren’t far behind at 16 percent. The lowest estimates for growth of both the industry and their company came from large companies. They expect an eight-percent growth for the industry and 13 percent for their company. The study, Worksite Marketing: An Executive Perspective, is conducted by Eastbridge Consulting Group bi-annually. The survey tracks the executives’ thoughts and insights on the obstacles facing the industry today as well as what they might expect for the future. It also explores the executives’ opinions on other topics based on market trends. This year’s report summarizes the feedback gained from 31 key executives (28 companies and 3 anonymous responses). The report was provided free of charge to Information Partner, Insight Customers, and participants. Companies interested in becoming an Insight or Information Partner Company can call Eastbridge at (860) 676-9633 or email info@eastbridge.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Frankenmuth Mutual Insurance Company Announces Free Identity Theft Service for Policyholders FRANKENMUTH, Mich.--(BUSINESS WIRE)--Frankenmuth Mutual Insurance Company, a company rated among the top 50 insurers in the nation by the Ward Financial Group, announced today that they will be providing their Homeowners and Personal Auto policyholders with free identity theft resolution services in the event they become the victim of the nation’s fastest growing crime. Partnering with the Arizona-based firm, Identity Theft 911™, Frankenmuth Mutual’s policyholders will have access to a full-range of services and proactive education at no additional cost. www.fmins.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. AXIS Capital Releases Revised 2006 Financial Supplement Reflecting AXIS Insurance Reorganization PEMBROKE, Bermuda--(BUSINESS WIRE)--AXIS Capital (NYSE: AXS) today announced the release of a revised financial supplement for the quarter and year ended December 31, 2006, which reflects modifications to reporting of its Insurance segment as a result of its recently announced reorganization. The revised supplement has been prepared to facilitate comparable analyses amongst periods and is available on the Company’s website at www.axiscapital.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Citizens Insurance Company of America Launches Connections(TM) Home in Michigan HOWELL, Mich., April 5 /PRNewswire/ -- Citizens Insurance Company of America today announced the launch of a new homeowners insurance product, Connections(TM) Home, in Michigan. This announcement follows the launch of Connections Home by its affiliate, The Hanover Insurance Group, in Connecticut, Illinois, Maine, New York, Ohio and Tennessee, where the product has increased homeowners' quotes for the company since its launch. Connections Home makes it easier for agents to sell and retain more business by providing a total account solution, competitive coverage packages, enhanced premium choices, an expanded appetite and reliable, more convenient service. The introduction of Connections Home completes Citizens' total account solution for personal lines, giving the company's agent partners the products they need to sell and retain more business. www.hanover.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Risk And Insurance Management Society, Inc. Offers Identitysweep To Members RIMS Offers Leading-Edge Identity Theft Protection Created by MyPublicInfo to 10,000 Risk Professionals New York, N. Y. – April 4, 2007 – The Risk and Insurance Management Society, Inc. (RIMS) announced that it will offer the MyPublicInfo Inc. signature identity theft prevention service, IdentitySweep, as a discounted special benefit to RIMS members. IdentitySweep uses identity scoring, an innovative new method of fraud prevention, to search databases and chat rooms for Social Security numbers, debit card numbers, credit card numbers and other consumer information that may be hacked, stolen, or breached. IdentitySweep is available to RIMS members at www.mypublicinfo.com/RIMS. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. NAMIC Presents Benjamin Franklin Public Policy Award to Members of the 109th Congress WASHINGTON (April 5, 2007) — The National Association of Mutual Insurance Companies (NAMIC) today announced the recipients of its Benjamin Franklin Public Policy Awards. Through their consistent support of legislation that encourages less onerous regulation, litigation, and taxation, the members of Congress selected to receive this prestigious award have demonstrated their commitment to the principles of free markets and a competitive insurance environment for consumers. “NAMIC is honored to present this award to members of Congress who have consistently demonstrated their unwavering support and leadership on behalf of our members, insurance consumers, and the property/casualty insurance industry,” said Carl Parks, NAMIC’s senior vice president for government affairs. “The award recipients’ understanding and support of the insurance industry have helped to successfully protect the free and open market environment that has existed since Dr. Franklin started the first successful mutual insurance company.” The award honors Benjamin Franklin and his commitment to public service. In 1752, Franklin and other leading citizens of Philadelphia founded America’s first successful mutual insurance company, the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. This public policy award was established in 2003 and first presented to members of the 107th Congress to coincide with the 250th anniversary of the Contributionship. “NAMIC looks forward to another successful season presenting this award to lawmakers who have demonstrated leadership in Congress on insurance issues,” Parks said. www.namic.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Fidelity Life Association Introduces Lifetime Benefit Term at National Benefit Partners’ 2nd Annual Conference. OAK BROOK, IL., March 15, 2007 -- Fidelity Life Association and its worksite distribution partner, National Benefits Partners, announced the introduction of its Lifetime Benefit Term product at the National Benefits Partners’ 2nd Annual Meeting, March 1-3 in San Antonio. Worksite Lifetime Benefit Term provides employees and spouses term coverage through age 120 with rates favorable enough to allow for face amounts 10% to 30% higher than cash value products. The product combines an Initial Death Benefit which is guaranteed to age 70 or 25 years, whichever is longer, with Paid-Up Term Benefits which begin accumulating after 5 years. After age 70 or 25 years, whichever is longer, the Initial Death Benefit is guaranteed for 50% of the initial amount. Also, the Initial Death Benefit is paid-up at age 100 based on current assumptions; however, in most cases it will be fully paid-up prior to that age. For additional information about Fidelity Life Association worksite products, call Brian Jund at 714-255-0280 or email at bjund@nationalbenefitpartners.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Converium response to SCOR offer to be expected within the legally required period Zug, Switzerland - April 5, 2007 Converium, a leading international professional reinsurer, issued the following statement today in response to the announcement by its competitor, SCOR S.A., that SCOR commenced a tender offer for outstanding registered shares of Converium. The Board of Directors will make its recommendation regarding the offer and state its reasons for such position within the time legally required after the commencement of the tender offer. Accordingly, the Converium Board of Directors urges its shareholders to defer making a determination with regard to the tender offer until they have been advised of the Board of Directors' position. Converium shareholders are strongly advised to carefully read Converium's solicitation/recommendation statement when it becomes available regarding the tender offer by SCOR because it will contain important information which should be considered before any decision is made with respect to the tender offer. Copies of the solicitation/recommendation statement will be filed by Converium with the Securities and Exchange Commission and will be available at the SEC's web site at www.sec.gov, or at the Converium website at www.converium.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Companion Life Dental Plans Now Include Implant, Adult Orthodontia Coverage, as Well as Hearing and Vision Discounts Columbia, S.C. - Companion Life Insurance Co. has begun including coverage of implants and adult orthodontia in its group dental plans. The company also is offering discounts on hearing and vision services to all those enrolled in its dental plans. Implants are covered under major services in Companion Life's Voluntary Dental Premier Plan for groups of three or more employees and in Dental by Design plans for groups of 10 or more employees. Adult orthodontia is available as an option in Dental by Design for groups of 10 or more employees. www.CompanionLife.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. IIABNJ OFFERS ONLINE INSURANCE PRELICENSING COURSE Trenton, NJ, April 5, 2007… The Independent Insurance Agents & Brokers of New Jersey (IIABNJ) has received approval from the New Jersey Department of Banking & Insurance for an online Property & Casualty insurance pre-licensing course. Recent changes to insurance licensing regulations made by the NJ Department of Insurance permit participants to obtain their New Jersey Property & Casualty Insurance License online; previously potential licensees could only take the course in a classroom.www.iiabnj.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. Buyout firm Carlyle to launch hedge fund: source Thu Apr 5, 2007 8:14AM EDT LONDON (Reuters) - Private equity firm Carlyle Group (CYL.UL: ) is moving into the hedge fund business with plans to launch a $1 billion fund with a wide-ranging investment strategy, a person familiar with the situation said on Thursday. Carlyle, which has more than $56 billion under management, already has 48 funds in four areas: buyouts, venture capital, real estate and leveraged finance. Its foray into hedge funds will be called Blue Wave, said the source, who asked not to be named. The source declined to comment on the timing of the hedge fund's launch, but said a newspaper report indicating next month was inaccurate. Carlyle declined to comment. The $2 trillion hedge fund industry often clashes in the dealmaking arena with private equity firms when such investors take significant stakes in buyout targets and either hold out for a higher price or block a takeover. Hedge funds typically make short-term bets on the rise and fall of a security while private equity buys companies with the goal of managing them better and selling them at a profit a few years later. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. Mulally gets $28 mln amid $12 bln Ford loss Thu Apr 5, 2007 11:15AM EDT By Poornima Gupta DETROIT (Reuters) - Ford Motor Co., which posted a loss of $12.7 billion last year, said on Thursday Chief Executive Alan Mulally received $28.18 million compensation in 2006, including an $18.5 million bonus. Mulally, a former Boeing Co. executive, replaced Ford family scion Bill Ford Jr. as chief executive last September. Chairman Bill Ford, who was CEO for the first eight months of 2006, did not receive any cash salary, bonus, or stock awards for 2006 as he had made a commitment in 2005 to forgo any new remuneration until the company's auto unit made sustained profits. However, the company took an expense of $9.95 million last year related to Bill Ford's previous stock and option awards. The No. 2 U.S. automaker disclosed in an annual proxy on Thursday that CEO Mulally was awarded $7.5 million hiring bonus and $11 million to offset the compensation he gave up for ending his tenure as head of Boeing's commercial plane division. He also received 4 million stock options last year, but at least three million of those are currently out of the money, meaning Mulally will have to wait until the company's fortunes turn around before he can cash in on the package. Ford Americas President Mark Fields was granted a total compensation of $5.57 million last year. Ford's Chief Financial Officer Don Leclair was granted $4.4 million. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 33. Google's executive billionaires take $1 salaries Thu Apr 5, 2007 3:04AM EDT SAN FRANCISCO (Reuters) - Google Inc. (GOOG.O: ) paid its top three executives a token 2006 salary of $1 each for the third year running, and bonuses of $1,723 a piece, according to the company's annual proxy filed on Wednesday. The pay-package belies the wealth of co-founders Larry Page and Sergey Brin and Chief Executive Eric Schmidt, who together own two-thirds of the voting stock of Google, which has a market capitalization of nearly $150 billion. © Reuters 2007. All rights reserved Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 34. FCC kills plan to examine use of phones on planes Tue Apr 3, 2007 6:55pm ET WASHINGTON (Reuters) - The Federal Communications Commission said on Tuesday that it has terminated a proceeding that considered the use of cellular phones on airplanes. The FCC had been examining an existing rule that requires cell phones to be turned off once an aircraft leaves the ground in order to avoid interfering with cellular networks on the ground. However, after gathering comments from industry and the public, the FCC said there was insufficient technical information on whether cell phones would cause harmful interference. It would be premature to seek further comment at this point as airlines, manufacturers and wireless providers are still researching the use of cell phones and other portable electronic devices on planes, the FCC said in an order issued on Tuesday. The agency said it may reconsider the issue at a later time if "appropriate technical data is available." Federal Aviation Administration rules also restrict the use of cell phones to prevent interference with the aircraft's navigation and communication systems. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 35. Wal-Mart expands personal well-being programs Thu Apr 5, 2007 7:27am ET NEW YORK (Reuters) - Wal-Mart Stores Inc. (WMT.N: ) on Thursday said it was expanding its employee-established effort on "Personal Sustainability Projects." PSPs are worker-driven efforts through which employees develop individual goals to improve their health and the environment. The projects include workers making healthier food choices, volunteering in their communities and using environmentally friendly products in their homes. Staff will also work together at a store level on sustainability measures designed to improve the local community. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 36. Subprime problems clouding outlook: Fed's Fisher Wed Apr 4, 2007 5:44PM EDT By Alister Bull AUSTIN, Texas (Reuters) - Problems in the subprime mortgage market have not spread but are clouding the outlook for housing and the U.S. economy as a whole, Federal Reserve Bank of Dallas President Richard Fisher said on Wednesday. "Thus far, the damage from the subprime market has been largely contained. ... Quality problems have arisen primarily for adjustable-rate subprime loans, which are only about 8.5 percent of home mortgage debt outstanding," he told the Austin Mortgage Bankers Association. "Nevertheless, because 40 percent of homebuyers last year were non-prime ... borrowers, housing markets may feel some short-term pains, making it less clear whether housing construction has bottomed and how long the housing downturn may last. Fortunately, the financial system and the economy are strong enough to weather this storm," he said. But Fisher, who is not a voting member of the U.S. central bank's policy-setting committee this year, also stressed that inflation remained the main threat to the economy. "There is no denying that this kind of situation dampens economic growth ... I would like to see inflation lower than it currently is," he told reporters after the speech. "I am hopeful inflation will moderate, but we must always remain vigilant," he said. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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