Insurance Services Agency Blog

Insurance Services Agency Bloghttp://www.billupsagency.com/blog/View Insurance Services Agency's Website Blogen-uspostmaster@www.billupsagency.comInsurance Website Builder - www.insurancewebsitebuilder.comurn:uuid:787527c8-a8df-4a61-8682-e0c7e33ef0feurn:uuid:c0d94588-3983-4126-95d5-18db42e74137Distracted Driving=Cell Phone Use Distracted Driving Stems From More Than Cell Phone Use, Insurers Say December 16, 2011 Using a cell phone while driving is not the only distraction leading to automobile crashes today, says a group of insurance carriers. While the U.S. Nati...Fri, 16 Dec 2011 12:38:19 -0600<div id="article-header"> <h1>Distracted Driving Stems From More Than Cell Phone Use, Insurers Say</h1> <div class="publish-date">December 16, 2011 </div> </div> Using a cell phone while driving is not the only distraction leading to automobile crashes today, says a group of insurance carriers. <div class="post-227741 post type-post status-publish format-standard hentry category-national tag-claims tag-distracted-driving tag-pc-companies tag-personal-lines" id="post-227741"> <div id="article-content"> While the U.S. National Transportation Safety Board’s (NTSB) call for a national ban on cell phone use while driving brings needed attention to the issue, the discussion should focus on how to reduce all forms of distracted driving, according to the Property Casualty Insurers Association of America (PCI). “Cell phone usage is only one of many bad habits that are distracting American drivers,” said Robert Passmore, senior director of personal lines for PCI . “Distracted driving is a serious problem and in our increasingly mobile world, it is becoming the norm. As we have seen with other motor safety issues such as seatbelt use and drunk driving, there is no single answer to addressing the problem of distracted driving.” Passmore says the issue of distracted driving should be addressed on multiple fronts including laws, enforcement, public education, but mostly the driver’s personal responsibility. According to the Insurance Information for Highway Safety (IIHS), 35 states and the District of Columbia have banned texting while driving and half of these bans were enacted in 2010. Ten states have enacted hands-free laws restricting the use of hand-held cell phones. Beginner drivers are restricted from using cell phones in 30 states. A new Harris Interactive/HealthDay poll found that a large majority of adult drivers in the United States admit to being dangerously distracted while behind the wheel. Specifically 86 percent of adults admitted to eating/drinking while driving, 59 percent talk on a non-hands-free cell phone, 41 percent set or adjust their GPS device, and 37 percent text. Additionally, a quarter of respondents said they have driven after having two or more drinks, and 44 percent said they’ve felt sleepy while driving, “sometimes even momentarily dozing off.” Smaller percentages (7 percent and 12 percent, respectively) said they drive this way “sometimes or often.” “This poll makes it clear that cell phones are not our only distraction,” said Passmore. “However, the pervasive use of cell phones and other devices while driving has changed how we operate in our cars.” In today’s fast paced world, cars have become high speed mobile offices, Passmore added.  Distracted driving of all kinds – including operating navigation systems, eating and drinking as well as grooming – can all serve as distractions that compromise safe driving. “As this national debate continues in the media and around dinner tables we need to go back to the basics, change expectations while driving and reject the pressures to do anything else while operating a car,” Passmore said. PCI is composed of more than 1,000 member insurance companies that write over $180 billion in annual premium. Member companies write 44.3 percent of the U.S. automobile insurance market. </div> </div>urn:uuid:cfd5cc30-0970-44b9-8833-c0fc581b3117Top 10 Most/Least Stolen VehiclesTop 10 Most, Least Stolen Vehicles and Loss Payments August 26, 2011 The Cadillac Escalade luxury SUV is the vehicle most likely to be targeted by thieves, according to the Highway Loss Data Institute, an insurance-funded group. Here are the vehicle...Fri, 26 Aug 2011 13:28:27 -0500Top 10 Most, Least Stolen Vehicles and Loss Payments August 26, 2011 The Cadillac Escalade luxury SUV is the vehicle most likely to be targeted by thieves, according to the Highway Loss Data Institute, an insurance-funded group. Here are the vehicles most and least likely to be targets, and the average loss payment per claim: <h5>MOST LIKELY</h5> 1.      Cadillac Escalade – four versions ($10,555) 2.      Ford F-250 crew cab 4WD ($9,496) 3.      Chevrolet Silverado 1500 crew cab ($4,948) 4.      Ford F-450 crew cab 4WD ($11,701) 5.      GMC Sierra 1500 crew cab ($6,022) 6.      Chrysler 300 ($5,509) 7.      Ford F-350 crew cab 4WD ($9,088) 8.      Chevrolet Avalanche 1500 ($6,689) 9.      GMC Yukon ($6,645) 10. Chrysler 300 HEMI ($8,294) <h5>LEAST LIKELY</h5> 1.      Audi A6 4WD ($16,882) 2.      Mercury Mariner – 2009-10 model years ($1,970) 3.      Chevrolet Equinox – 2010 model year ($2,069) 4.      Volkswagen CC – 2009-10 model years ($7,098) 5.      Chevrolet Equinox 4WD – 2010 model year ($4,870) 6.      Lexus RX 350 – 2010 model year ($6,084) 7.      Saturn Vue ($3,747) 8.      Chevrolet Aveo – 2009-10 model year ($7,642) 9.      BMW 5 series 4WD ($12,200) 10.  Mini Cooper Clubman mini ($1,883) urn:uuid:5fe87a85-0c12-4720-9021-6c8c1db15688Allstate Agents Unionize...HAHAHAHA!!!Allstate Agents Hope Unionization Sparks Changes at Insurer By Andrew G. Simpson | July 26, 2011 Some unhappy Allstate Insurance agents who say the insurer controls them like employees even though they are independent contractors are moving to affil...Tue, 26 Jul 2011 13:04:36 -0500Allstate Agents Hope Unionization Sparks Changes at Insurer By <a href="http://www.insurancejournal.com/author/andrew-simpson/">Andrew G. Simpson</a> | July 26, 2011 Some unhappy Allstate Insurance agents who say the insurer controls them like employees even though they are independent contractors are moving to affiliate with a union. The National Association of Professional Allstate Agents (NAPAA) claims that the giant insurer is manipulating independent contractor rules, terminating long-time agents, cutting agency compensation, and driving down agent morale. Mississippi-based NAPAA, which claims to have about 1,200 members or about 10 percent of Allstate’s nationwide agency force, has scheduled a membership vote over the coming weeks, with results expected to be known Aug. 17. The vote will be on whether to form a guild, which would then affiliate with the Office and Professional Employees International Union (OPEIU), which has 125,000 members and is itself tied to the AFL-CIO. Allstate does not appear concerned about the move, pointing out that the group represents only a fraction of its agency force across the country. The company says courts and the IRS have recognized the independent contractor status of its agents. It also disputes the claims of a high number of terminations and low morale, maintaining “growth opportunities have never been better” for its exclusive agents. Forming a guild of self-employed workers would give NAPAA members more legislative access and lobbying resources to advance their interests but it would not give them any collective bargaining leverage with the insurer, according to Nicole Korkolis, communications director for OPEIU. Jim Fish, NAPAA executive director, acknowledges that even as guild members the agents will still lack bargaining clout but says they hope Allstate will take the group more seriously as a guild. “I mean, currently, as a group, we can’t bargain with them and they don’t recognize us as an entity at all, actually. They think we’re a bunch of disgruntled agents. I guess, and you know, in a way that’s probably true because we’re not happy with the status quo,” Fish told Insurance Journal. He said that by gaining access to the AFL-CIO’s lobbying resources, the agents might be able to earn more respect. “We don’t have the lobbyists to go in there and support a bill; well, they do,” Fish said. Fish sees the vote as a referendum on company management. “Agent morale at Allstate has hit rock bottom, which cannot be good for the company, the agents or the shareholders. This is not a matter of political philosophy; it’s a matter of defending the interests of ill-treated small business owners,” he said in announcing the vote. He said the vote would be “proof positive that agents are extremely unhappy with the status quo at Allstate.” Allstate, however, dismisses the significance of the vote. “This group’s indication that it will seek a vote from its members to affiliate with the OPEIU would seem to be an internal issue for them. Their members include only a small fraction of Allstate’s current agency owners,” said company spokesperson Meghann Dowd. Fish said the move comes after years of complaints by NAPAA members about how they have been treated by the company under CEO Tom Wilson. Some of its members claim they are facing a 20 percent cut in their compensation. Others have joined his group because Allstate has threatened to terminate them for failure to meet production requirements. “We’re seeing a lot of agent terminations for not meeting what the company calls ‘expected results,’ which are quotas, basically, production quotas. Of course, as independent contractors, you’re not supposed to have production quotas,” he said. Fish said the company is terminating or forcing the sale of agencies on a “regular basis” as part of a plan to get more agencies with $3 million to $4 million in business. “Well, that’s pretty hard to do for some of these guys who are sitting out there with a million dollar book and trying to grow that to $3 or $4 million. You can’t do it overnight. You can’t do it in three years. You can’t do it a lot of times in five years unless you spend a lot of money advertising and these agents don’t have those kinds of resources to build their books. Technically, it’s not that they don’t want to, it’s just that some of them don’t have the financial capacity to do it,” said Fish. Several long-time Allstate agents are suing the insurer. Paul Mattus, of Camp Hill, Pennsylvania, began selling Allstate insurance in 1983 from booths at Sears. He continued with the company when all of its agents moved into offices. Then he agreed to become an independent contractor and invested money in his agency. In April, Mattus sued the company, alleging that Allstate engaged in an unlawful hostile takeover of his business and his clients. He said Allstate gave him until May 1 to either sell his business or receive less than 10 per cent of the value of the business as a termination payment. New Jersey Allstate agent Mario DeLuca is in a similar situation. DeLuca filed suit against Allstate New Jersey Insurance Co. in the Superior Court of New Jersey alleging the company has violated the state’s franchising law. DeLuca maintains that his agreement with Allstate constitutes a franchise relationship under New Jersey law. “DeLuca’s case is only the tip of the iceberg,” said Fish. He said several other long-term agents in New Jersey have received warning or termination letters as well. Jacqueline Jackson-DeGarcia, attorney for Mattus, said her client is not alone and that there is potential for a class action lawsuit on behalf of the wronged agents. Allstate denies it is terminating a lot of agencies but it does acknowledge that having more $3 million to $4 million-size agencies is one of its goals. “We know that agencies of a certain size are better able to provide the superior customer experience our customers tell us they need. We’ve seen that agency locations in the range of $3 million to $4 million in premiums have the scale to support the staff and other resources needed to provide superior levels of customer service,” said Dowd. She said the company has set long-term growth and performance goals to “put more agencies on a trajectory toward this agency size” and management is working with agency owners to help them reach this model. In addition to the terminations, these agents have complained about other conditions that they argue make them employees, not independent contractors as Allstate classifies them. “They [Allstate] still control the hours that agents work. The office has to be open 24 hours a week, so if it’s a one man office, obviously, he has got to put 44 hours a week in. Not a terrible schedule, but it’s just mandated and it’s not supposed to be if you’re an independent contractor. They control the scripts. They give agents the scripts about how they’re supposed to sell policies,” said Fish. Fish said Allstate also pressures agents to adopt what is called a “branded retail environment” and, in most states, it blocks them from placing accounts with other insurers. Independent contractors are supposed to “be able to be a little entrepreneurial and run their business as they see fit, but that’s not possible with Allstate,” according to Fish. Allstate maintains that the company is on firm ground classifying the agents as independent contractors. “Allstate agents are independent contractors who run small businesses. Many are incorporated,” said Dowd. She said Allstate’s agents’ status as independent contractors has been reviewed and affirmed by the Internal Revenue Service, the National Labor Relations Board, the Equal Employment Opportunity Commission and several federal courts. The company also denies it is cutting all agents’ compensation by 20 percent, but does acknowledge that it is “reviewing all components of agency owner compensation to create a model that better rewards higher performing agencies and aligns more closely with competitive industry practices.” As for agent morale, that’s fine, too, the insurer says. “Growth opportunities have never been better for Allstate’s exclusive agency force committed to providing superior customer service,” Dowd said. Allstate (10.4%) still ranks second to State Farm (18%) in share of the private passenger auto insurance market share, according to A.M. Best. But in the past several years competitors including Progressive and Geico have been gaining on it, demonstrating particular success adding customers through Internet sales. Compared to some others, Allstate has been late to online distribution and just last month it agreed to pay $1 billion to acquire online sellers Esurance and Answer Financial to help it catch up on digital sales. The company’s homeowners’ results have also been hammered by billions of dollars in losses from tornadoes and other natural catastrophes this year– as have those of other insurers. But Fish blames the treatment of agents under the direction of CEO Wilson for part of the company’s slide. “It is since he came on board that they’ve lost a million households; that’s a lot of households to lose. Why are they losing those households? Because maybe he’s getting rid of these agents who have 92 percent retention ratios and casting them aside,” Fish said. At the same time Allstate is trying to shed agents, it is looking to add agents in certain parts of the country. In April, Allstate said it wanted to open nearly 50 new agency offices in Florida, with about half in north Florida. The company has about 1,000 exclusive agents in the state. In February, the company publicized a plan to appoint 54 Colorado agency owners by the end of 2011. Allstate said its new and existing agencies in the state would also hire more than 80 licensed sales professionals through the year. In March, Allstate launched a recruitment campaign across the West, seeking 15 exclusive agents in New Mexico, 34 in Arizona, 19 in Nevada and 20 in Utah. This strategy also irks NAPAA. “Isn’t that a strange phenomena? “ asked Fish. “Well, we think that what they’re doing is deliberately getting rid of their older agents to bring on younger, Twitter enabled agents that are younger. I guess they feel that they have more get up and go. Yet, the agents that they’re terminating have loss ratios in the 40s or less. They have retention ratios of 92 percent and higher. And the production the production doesn’t stink. It’s not terrible. They aren’t meeting the goals that the company wants, but you know a lot of agents can’t do that even if they’re newer agents, so we think that a lot of it is age related.” In 2009, CEO Wilson brought in Joseph Lacher, a Travelers executive, to turn around the auto and home business. But last week, Lacher abruptly left the company — a move that concerned analysts and investors and sent Allstate’s stock tumbling. Allstate has been silent on why Lacher left. CEO Wilson told investors last month that returns at Lacher’s unit were inadequate. There were other reports that Lacher had criticized Wilson in a private meeting with agents. Fish said he thinks there was “some acrimony” between Lacher and Wilson. Even though Lacher was the person in charge of the auto and home insurance agent force, Fish doesn’t hold him responsible for conditions. “We think that it’s Tom Wilson who needs to go and somebody needs to come in and really revamp the whole thing because we need someone who values the agents. Joe Lacher did,“ said Fish. This is not the first time Allstate agents have tried to unionize. The group tried it nine years ago, in 2002, but lost its argument that the agents are not independent contractors before the NLRB. “We contended that we were employees and lost by one vote at the NLRB. And George Bush had just been elected, so he had already stacked the board with his appointees, and of course, you know he was not in favor of unions,” said Fish. If the guild vote succeeds, the Allstate group would be the only insurance affiliation for the OPEIU, which counts pilots and podiatrists among its members. OPEIU had some Prudential employees as members up until two years ago under collective bargaining but then they became independent contractors, according to the union’s Korkolis.urn:uuid:78e30d1b-6d98-4fc4-9001-18bad6a60cf6TX Lawmaker Cxl's State Farm Policy Over Refund IssueTexas Lawmaker Cancels State Farm Policy Over Refund Issue April 14, 2011 Texas State Rep. Joaquin Castro of San Antonio has announced he is terminating his policyholder relationship with State Farm Insurance Co. because of the company’s persi...Thu, 14 Apr 2011 12:58:32 -0500Texas Lawmaker Cancels State Farm Policy Over Refund Issue April 14, 2011 Texas State Rep. Joaquin Castro of San Antonio has announced he is terminating his policyholder relationship with State Farm Insurance Co. because of the company’s persistent refusal to pay back customers that have been overcharged on their premiums. He has been a State Farm policyholder for more than 10 years. “Texans already pay some of the highest insurance rates in the entire country and State Farm still refuses to do what is right by their customers,” Castro said in an announcement released by the Texas House of Representatives. In 2003, the Texas Legislature adopted <a href="http://www.insurancejournal.com/news/southcentral/2003/06/11/29736.htm" target="_blank">Senate Bill 14</a>, a measure intended to better regulate homeowner’s insurance rates in Texas by creating a “file-and-use” system. Prior to this measure, Texas homeowners insurance premiums had increased more than 45 percent over three years. As a result of the Legislature’s action, the Texas Commissioner of Insurance conducted a comprehensive review of homeowner’s insurance rates, and instructed more than <a href="http://www.insurancejournal.com/news/southcentral/2003/09/16/32342.htm" target="_blank">30 insurers </a>to reduce their rates. State Farm is the only company that still refuses to comply. On April 11, State District Judge Tim Sulak ruled in favor of the Texas Insurance Commissioner, requiring State Farm to <a href="http://www.insurancejournal.com/news/southcentral/2011/04/12/194302.htm" target="_blank">refund nearly $350 million </a>to Texas policyholders. State Farm has indicated they will appeal the case to the 3rd Court of Appeals. This is the latest action in a prolonged battle that has dragged on for years. “It is estimated that this ruling could impact over 50,000 policies in Bexar County alone,” said Castro. He continued, “With the extra $200 that someone can save from paying less for insurance, they could pay for health insurance, part of their mortgage or groceries.” Castro’s policy cancellation will take effect June 1, 2011.urn:uuid:1a9320cc-94d4-49f0-926d-c0286b78b3faJapan's Tragedy A Reminder of Need for Business Interruption InsuranceJapan's Tragedy A Reminder of Need for Business Interruption Insurance Amy O'Connor                           &nbs...Thu, 17 Mar 2011 13:30:29 -0500<h1>Japan's Tragedy A Reminder of Need for Business Interruption Insurance</h1> <div style="border-bottom: #ccc 1px solid; padding-bottom: 5px; padding-left: 0px; padding-right: 0px; margin-bottom: 1.2em; padding-top: 5px;" class="clearfix"> <div class="span-12">Amy O'Connor                                                                                                                                                                 March 16, 2011</div> </div> The human, social and economic devastation in Japan from the massive earthquake and tsunami is overwhelming and business losses are just beginning to be tallied. United States companies that purchase products or supplies from Japanese companies or have operations in Japan have a bumpy road ahead of them and business interruption coverage could be critical to helping these businesses getting back on their feet. "It's inevitable that there will be hundreds of millions of dollars of losses to American companies for sure," said Finley Harckham, senior partner for Anderson Kill & Olick, a law firm in New York. Harckham says businesses are now trying to figure out how long the disruption will last and if they have adequate inventory to cover that time period, which should all become clear in the next couple weeks. "The companies that are going to be affected pretty much know it now but the question will be what is the scope of the losses rather than whether there will be losses," he said. It is too soon to know what the reaction from the insurance industry will be to this event in terms of a hardening market or a pullback of capacity for business interruption coverage, says Pam Ritz, president of Risk Specialty Agency, but insurers are going to be extra careful in the coming months. "It will be about 30 to 60 days before everyone realizes what the overall financial impact of the earthquake is, but I do think we will see insurers being very cautious in those 30 to 60 days," she said. "There are a lot of renewals coming up in April in regards to worldwide reinsurance and they will be affected by Japan." U.S. companies should also check their policies to make sure their business interruption coverage protects them in the event of an earthquake or other event like a tsunami. Insurance experts agree that the biggest challenge when it comes to business interruption is educating clients on why they need the coverage. "It is very, very difficult to have those discussions with customers and widen their perspective as to how their business can be interrupted beyond the scope of physical damage to their facility," says Ritz. "Customers still believe that everything is covered under the standard commercial package policy so communicating to customers is so important." The catastrophe in Japan is just one more example of why this coverage is important to businesses and agents need to be able to explain this to their clients. "We still find that it's terribly difficult educating the channel of distribution," Ritz says. "It requires knowledge on the part of carriers and agents on those products. Contingent business interruption coverage requires agents to be very eloquent and come up with financial examples and other examples so the client can see and assess their business in aspects beyond physical damage." Terry Tadlock, president of Coastal Plains Insurance in South Carolina, agrees. "Education is absolutely one of the biggest problems in this market," he says. "When I teach business income, I ask people what is more important, the building you are in or the money you make? Yet we still spend countless hours just talking about property." Harckham says that in order for an insured's contingent business interruption coverage to be triggered here in the U.S., the insured would have to have coverage for earthquake or flood. "The way it works is you have to have coverage for your own property that would have applied if the damage was suffered by your own company," he said. "U.S. companies have to have some earthquake or flood coverage to trigger this coverage." In addition to having the earthquake or flood coverage, companies would also have to have blanket coverage. "It gets kind of confusing because lots of American companies have flood or earthquake coverage for specific regions but don't have blanket coverage," says Harckham. "If they don't have it for all of their operations, that could be a problem." Tadlock says another issue could be that earthquakes are excluded by most property forms, and insureds have to have bought it back to be covered. Even then it wouldn't be triggered unless the company had a specific endorsement for it. Tadlock says that most people do not buy back the endorsement unless they feel that they are in an exposure area, and as always, you cannot buy the coverage after the fact. "The problem with earthquake coverage is it's very inexpensive where they don't expect it to hit and in places with exposure, it's quite pricey." Harckham says hopefully one good thing that can come out of the Japan tragedy is an increase in coverage that will protect insureds' businesses. "It's a good wake up call for American businesses to be thinking about this coverage and focusing on it at renewal time, which they haven't done in the past," he said. "Or looking at triggers like flood, and whether they are covered domestically or overseas. Insured's need to know if they have the coverage they need."urn:uuid:ac24f391-7fa1-4f07-8391-0b157c8f114eSoft Market Is Ending, Really It Is, Says SNL FinancialSoft Market Is Ending, Really It Is, Says SNL Financial   By Andrew G. Simpson | March 10, 2011   Could the soft market finally be over? A new analysis concludes that insurance prices are rising and the prolonged soft market is ending, cont...Thu, 10 Mar 2011 12:26:31 -0600Soft Market Is Ending, Really It Is, Says SNL Financial   By Andrew G. Simpson | March 10, 2011   Could the soft market finally be over? A new analysis concludes that insurance prices are rising and the prolonged soft market is ending, contrary to earlier reports from other analysts. Virginia-based SNL Financial says personal lines pricing is definitely hardening and commercial lines is moving in that direction such that premium increases can be expected in the coming quarters. U.S. property/casualty industry premiums in the fourth quarter grew at their fastest rate since 2006 in response to underwriting losses, unfavorable reserve development and an improving economy, Jon Wright, SNL Financial’s director of insurance, said in an interview with Insurance Journal. This means buyers could see higher premiums as 2011 continues, particularly in business lines like personal auto and homeowners insurance, said Wright. The commercial lines segment is also coming out of its pricing slump, according to the SNL analyst. “For commercial lines, what we’re seeing is we’re still seeing declines in premiums year-over-year, but what we’re looking at is a point and a half whereas a year ago we might have been seeing nine, 10 percent decline year-over-year. What we’re seeing is moving along that curve to where we should see flat to increases over the next several quarters,” Wright said. After analyzing data for 95 percent of the industry, SNL Financial found that the U.S. insurance industry’s negative returns on underwriting continue to deepen and the short-term boost from over-reserving for prior years is running out. Wright said 2010 saw overall premium growth, a trend that SNL analysts expect to continue in 2011. Direct premiums written increased 2.9 percent and net premiums increased 4.0 percent from the fourth quarter in 2009, according to the SNL report. Underwriting losses totaled $2.4 billion, of which $750 million came from additions to reserves for prior years. The SNL view that the market has turned appears to contradict other recent reports that have concluded the soft market is not yet over and won’t be for some time. Average renewal premiums for commercial lines were largely unchanged during the fourth quarter of 2010 and that may remain the case for a while, according to the RIMS Benchmark Survey, which was administered by Advisen. That risk managers’ report, issued the first week of February, cautioned that a turn in the market is not imminent. The RIMS/Advisen conclusion was consistent with a report from insurance broker Marsh released about a week earlier. It said that soft commercial market conditions that persisted throughout the U.S. in 2010 would continue into 2011. Intense competition among insurers, abundant capacity, and relatively few insured catastrophe losses continued through 2010 and are forming the market conditions for 2011, the Marsh report said. SNL Financial believes it came to a different conclusion because its data is better. It said it analyzes financial information from 2,500 property/casualty insurers. “We’re not just looking at broker-based business; we’re looking at everyone,” said Wright. In terms of what’s ahead, Wright said he expects the first quarter will show the hardening trend continuing. “I think we’re going to see continuance of deterioration of underwriting losses, fewer reserves released, continuance of low investment yields. And so, each of those three things are pointing towards a hardening market and a continuance of that,” he told Insurance Journal. urn:uuid:6f9a7826-d8f0-4ab9-85d1-9f6c39fbb1d0Insurance FraudInsurance Fraud Starts with Unexpected Offer of Repair Services February 8, 2011 Each year consumers pay more for their auto and homeowners insurance policies as a direct result of fraud. Unnecessary auto glass repairs, exorbitant towing charges, ...Tue, 08 Feb 2011 13:13:54 -0600Insurance Fraud Starts with Unexpected Offer of Repair Services February 8, 2011 Each year consumers pay more for their auto and homeowners insurance policies as a direct result of fraud. Unnecessary auto glass repairs, exorbitant towing charges, needless home repairs, total roof replacements, sinkhole damage, solicitation of accident victims — these and other kinds of insurance scams contribute to an annual loss amount estimated to be $30 billion just within the property/casualty industry. According to the industry’s National Insurance Crime Bureau, repair scams have one common element—a solicitation from an individual offering repair services. If a homeowner has requested an inspection or if an insurance company has authorized a vendor to conduct an inspection, that’s one thing. But an unsolicited, unexpected and random “inspection” visit from a service provider, whether it’s a glass repair technician, a roofer, or a structural engineer looking for sinkhole damage to your home could be the first step in a fraud scam. That is why NICB advises consumers to always consult their insurance company or agent first before allowing anyone to perform any inspection or repair work that will be “covered” by their insurance. NICB says that an unsolicited contact is a key indicator of possible fraud. Someone knocking on doors for a roof inspection; a glass repair technician offering “free” repair work; a contractor offering an unsolicited estimate for replacing storm-damaged siding—all of these are potentially fraud precursors. That is why NCCI tells consumers, “If you didn’t request it—reject it.” NICB cites other scenarios where consumers should be on the alert. In auto accident solicitations, the innocent people involved in the accident often receive a phone call from a representative of the attorney or medical provider encouraging them to seek representation or treatment to get the care and money they deserve. In some instances, the caller may falsely represent themselves as being from the person’s insurance company. In other situations the innocent people involved in the accident can even be approached at the scene. Not everyone who makes unsolicited contacts with homeowners or people involved in an auto accident is looking to rip someone off. But NICB says “it is an unfortunate sign of the times that when we find examples of repair or auto accident solicitation scams, they began with an unsolicited visit or contact.” When considering home repairs, NICB recommends that consumers consider these tips before hiring a contractor:  <ul> <li>Contact their insurance provider first </li> <li>Get more than one estimate </li> <li>Get everything in writing. Cost, work to be done, time schedules, guarantees, payment schedules and other expectations should be detailed </li> <li>Demand references and check them out </li> <li>Ask to see the salesperson’s driver’s license and write down the license number and their vehicle’s license plate number </li> <li>Never sign a contract with blanks; unacceptable terms can be added later </li> <li>Never pay a contractor in full or sign a completion certificate until the work is finished and ensure reconstruction is up to current code </li> <li>Make sure they review and understand all documents sent to their insurance provider </li> <li>Never let a contractor pressure them into hiring them </li> <li>Never let a contractor interpret the insurance policy language </li> <li>Never let a contractor discourage them from contacting their insurance provider</li> </ul>   NICB recommends that consumers involved in an auto accident work with their insurance provider and, if they do need legal representation or medical care, that they don’t select an attorney or medical provider based on the advice of a person unknown to them. urn:uuid:2f718bcc-4a7d-4b3b-8dc2-45da4e94f0e4OK Lawmaker-Texting While Driving BanOklahoma Lawmaker Proposes Texting While Driving Ban January 21, 2011   Texting while driving would be illegal in Oklahoma under a bill being proposed in the House.   State Rep. Danny Morgan, D-Prague, unveiled the bill Jan. 19, flanked b...Fri, 21 Jan 2011 16:08:59 -0600Oklahoma Lawmaker Proposes Texting While Driving Ban January 21, 2011   Texting while driving would be illegal in Oklahoma under a bill being proposed in the House.   State Rep. Danny Morgan, D-Prague, unveiled the bill Jan. 19, flanked by members of law enforcement, health officials and insurance and wireless telephone company executives.   Morgan’s measure, House Bill 1316, will make it a criminal violation for all persons aged 18 and under to use a cell phone while driving (except emergencies), prohibits all drivers, regardless of age, from texting while driving, and prohibits all drivers from using a cell phone while driving in an area designated as school crossing zone. It also would ban the use of a cell phone in a construction zone. All violations will be a primary offense.   Morgan says he anticipates bipartisan support for his measure and dismissed the contention that the bill infringes upon personal liberty. He said driving in Oklahoma is a responsibility, “not a God-given right.”   Representative Sue Tibbs, R-Tulsa is a principal co-author of the bill.   Oklahoma Highway Patrol spokesman George Brown says texting while driving has led to numerous fatalities in the state. urn:uuid:df428bf7-8a5e-4818-8c35-9f697ffca57fInsurers 'Low-Balling' Auto Claims for BI Report: Some Insurers 'Low-Balling' Auto Insurance Claims for Bodily Injury December 29, 2010  Some insurance companies that use computerized systems to process their claims are making unfair, "low-ball" claims offers to people injured in auto...Thu, 30 Dec 2010 12:21:51 -0600Report: Some Insurers 'Low-Balling' Auto Insurance Claims for Bodily Injury December 29, 2010  Some insurance companies that use computerized systems to process their claims are making unfair, "low-ball" claims offers to people injured in automobile accidents, according to a consumer advocacy group. The Consumer Federation of America (CFA) is warning Americans that Colossus software and other similar programs used by insurers evaluate general damages for many bodily injury claims such as pain, suffering and anguish, but fail to estimate "special" damages such as past or future bills related to losses and reductions in wages or liability-related questions, or issues like the credibility of witnesses. Advising consumers to protect themselves against underpayments, J. Robert Hunter, CFA director of insurance, said, "Consumers should be very vigilant when dealing with automobile bodily injury claims generated by computer programs." He said insurers can adjust their computer systems to generate claims' 'savings' without adequately examining the validity of each claim. When adjusting a bodily injury claim, an adjuster typicall sorts through medical records and determines which of the approximately 600 Colossus injury codes best reflect the bodily injuries sustained by the consumer, according to CFA. Depending on the severity value accompanying the injury code and dollar value that has been assigned by the insurer for each severity value point, the software provides a dollar value range to the adjuster for general damages. "Some insurers also can tune the programs so that the claims that are made are 'low-balled' to save costs, even if a higher offer may be justified for some consumers. Further, adjusters sometimes receive incentives for settling claims at or near the range stipulated by Colossus," CFA said. Insurers that CFA says use Colossus include: AAA Mid=Atlantic, ACE INA, Allstate, American Family, American National, Atlantic Mutual, California State Auto, CAN, Grange, Great American, Hartford, HDI, Horace Mann, ICW, Motorists, Nationwide, Ohio Casualty, Safeco, State Auto, USAA, Utica, Westfield, White Mountain and Winterhur Swiss. Insurers that use IQ, a similar software, include Allianz, Fireman's Fund and GEICO. Insurers that use COA, a similar software, include Automobile Club of CA, Liberty Mutual and Progressive. CFA is recommending consumers protect themselves from unjustifiably low claims' offers by: • Find out if the offer is generated by a computerized system like "Colossus." Allstate is required to disclose this information, but disclosure is voluntary for other insurance companies. • Ask to see the high and low offers generated by the system. • Do not accept any offer less than one in the "high" end of the range. • If the insurer does not agree to an offer at the high end of the range, consider filing a complaint with the state insurance commissioner or seeking legal help. Read more: http://www.insurancejournal.com/news/national/2010/12/29/116020.htm#ixzz19cX4EFm0urn:uuid:b48eb7e4-042e-46fb-b1cf-74eb9c46b080TX Unmplymnt Ins Tax Rates to RiseTexas Unemployment Insurance Tax Rates to Rise for 2011 December 9, 2010  The standard minimum unemployment insurance (UI) tax rate paid by Texas employers in calendar year (CY) 2011 will be 0.78 percent, up from 0.72 percent in CY 2010, the T...Thu, 09 Dec 2010 13:01:57 -0600Texas Unemployment Insurance Tax Rates to Rise for 2011 December 9, 2010  The standard minimum unemployment insurance (UI) tax rate paid by Texas employers in calendar year (CY) 2011 will be 0.78 percent, up from 0.72 percent in CY 2010, the Texas Workforce Commission (TWC) announced. The taxes replenish the Texas Unemployment Compensation Trust Fund which provides unemployment insurance for Texas workers who lose their jobs through no fault of their own. TWC said the increase in the employer tax rate increase was necessary to offset two years of higher UI benefit payments. Taxes would have been significantly higher without the actions taken by the commission, including use of a public bond sale and suspending the deficit tax component of the tax rate. The minimum UI tax rates are paid by 213,000 or 63 percent of all experience-rated employers. An employer paying the standard minimum tax will pay $70.20 in tax per employee in CY 2011 compared with $64.80 in tax per employee in CY 2010. The maximum UI tax rate, paid by 2.2 percent of Texas experience-rated employers, is 8.25 percent, down from a maximum rate of 8.60 percent in 2010. The average tax rate of 2.03 percent for 2011 is up from 1.83 percent in 2010, while the average experience tax rate of 1.96 percent, an increase from 1.74 percent in 2010. TWC said Texas employer UI taxes at the minimum rate remain lower than many other states. Alaska employers at its minimum tax rate pay $201 per employee; Arkansas employers at its minimum tax rate pay $100 per employee; and Illinois employers at its minimum tax rate pay $89 per employee, according to the commission. Read more: http://www.insurancejournal.com/news/southcentral/2010/12/09/115541.htm#ixzz17du1wJbOurn:uuid:76dc314d-ee76-400d-b84b-66ae5f0a3b97TARP Cost $25 Billion TARP Bailout Cost to Taxpayers Down to $25 Billion November 30, 2010 The U.S. Troubled Asset Relief Program, which risked up to $700 billion of government funds to bail out troubled banks and automakers, will cost taxpayers a mere $25 billion, ac...Tue, 30 Nov 2010 13:42:04 -0600TARP Bailout Cost to Taxpayers Down to $25 Billion November 30, 2010 The U.S. Troubled Asset Relief Program, which risked up to $700 billion of government funds to bail out troubled banks and automakers, will cost taxpayers a mere $25 billion, according to an estimate released Monday by the nonpartisan Congressional Budget Office. CBO's latest assessment of the widely reviled program is lower even than the Obama administration's own estimate of less than $50 billion, which was criticized as too rosy after it was issued at the end of September. "Clearly, it was not apparent when the TARP was created two years ago that the cost would turn out to be this low,'' CBO said in its report. With bailed-out firms returning to health, the government will spend less than previously thought on assistance to insurer American International Group (AIG) and automakers like General Motors, CBO said. Additional stock repurchases by formerly troubled Wall Street firms and lower-than-expected participation in mortgage programs has also lowered the cost, CBO said. With the country still struggling to emerge from the deepest recession since the 1930s, many backers of the bailout have paid a heavy political price. Republicans like Senator Bob Bennett and dozens of Democrats lost their seats this year in part due to their support for the program. urn:uuid:2afdd73c-77ba-4353-bc0e-0c4e038a34eaNew Web-based Atlas Details Hazards of Living on Texas CoastNew Web-based Atlas Details Hazards of Living on Texas Coast October 29, 2010 One of every four Texans lives along the coast; Texas has 16 major ports and more than 3,300 miles of bays and estuaries. Those are just a few facts available in a new a W...Fri, 29 Oct 2010 15:00:25 -0500<h1 style="margin: auto 0in;">New Web-based Atlas Details Hazards of Living on Texas Coast</h1> October 29, 2010 One of every four Texans lives along the coast; Texas has 16 major ports and more than 3,300 miles of bays and estuaries. Those are just a few facts available in a new a Web-based atlas of the 18-county Texas coast produced by a Texas A&M University at Galveston professor. Sam Brody, who heads the Center for Texas Beaches and Shores at the Galveston campus, has spent the last five years creating the atlas. Thanks to grants from the Texas General Land Office, Sea Grant and NOAA, volumes of information that were never before available are now a mouse click away. "We believe this is the most complete work of its kind ever created about the Texas coast," Brody says. The spatial database includes comprehensive information about every area of the Texas coast down not only to the city block, but also to any individual house or lot on that block. One feature of the atlas shows the hazards of living along the Texas coast - and there are plenty. Flood zones are prevalent in most coastal areas and beach erosion - in some areas, the shoreline is disappearing at the rate of 10 feet per year - transportation issues, population issues and other hazards are detailed in the atlas. Also detailed are development and land-use patterns and where future growth is likely to occur along the Texas coast. The atlas includes a "what if" scenario dealing with storm-water runoff in Galveston County. Brody says this atlas component can help users understand the consequences of developing a specific parcel before the shovel hits the ground. It shows areas that are very susceptible to hurricane damage and how much damage might occur if a hurricane makes landfall. "The Galveston-Harris County area is one of the most flood-prone areas in the United States," Brody says. "Also, erosion is a huge problem that is not going away any time soon, plus there are huge risks associated with storms, flooding and other weather-related issues. Brody says the Texas coast is one of the fastest-growing coastal regions in the country. The atlas is constantly updated, and Brody hopes to expand it further with future research funding. The coastal atlas is a collaborative project between the Center for Texas Beaches and Shores and the Hazard Reduction and Recovery Center (HRRC) at Texas A&M. Walter Peacock, director of the HRRC, also helped to create the atlas. urn:uuid:d758b1bc-55f1-4b98-aaea-669bcce70923Poor Service Leads to Fraudulent Insurance Claims, Survey FindsPoor Service Leads to Fraudulent Insurance Claims, Survey Finds More than half (55 percent) of U.S. consumers say poor service from an insurance company is more likely to cause an individual to commit fraud against that company, according to a surv...Wed, 22 Sep 2010 13:07:17 -0500Poor Service Leads to Fraudulent Insurance Claims, Survey Finds More than half (55 percent) of U.S. consumers say poor service from an insurance company is more likely to cause an individual to commit fraud against that company, according to a survey by Accenture. The survey also reveals a significant increase in claims filed, with nearly half of U.S. adults (47 percent) saying they had filed property/ casualty insurance claims at some time, up from less than one-third (29 percent) in a similar survey conducted in 2003. The proportion of individuals who have filed an insurance claim increases with age and income the survey shows. For example, among people over 55, more than 60 percent have filed a claim, and people earning more than $100,000 per year were much more likely (59 percent) than people making less than $50,000 per year (40 percent) to file a claim. Men are more likely to have filed a claim than women: 50 percent of male survey respondents say they've filed a claim as opposed to 44 percent of women respondents. Also according to the survey of more than 1,000 adults, more than three quarters (76 percent) of consumers said that people are more likely to commit insurance fraud during an economic downturn than they are in more normal times, up from 66 percent in 2003. While 83 percent of the Americans surveyed in 2003 believed insurance companies were capable of identifying or preventing fraud, only 72 percent think so today. More than two-third of respondents (68 percent) said they believe insurance fraud occurs because people believe they can get away with it, up from 49 percent in 2003.   "The potential increase in the likelihood of fraudulent claims is driven by both the consumer's desire to recover monies and as retaliation against poor service," said Michael A. Costonis, executive director of Accenture's Insurance practice in North America. "This creates a significant challenge for insurers to examine every aspect of claims service delivery, including the way they review and analyze potentially fraudulent claims and the service touch points with their policyholders. Doing this correctly will help insurers stay competitive and attract and keep customers in this tough economic environment."   According to the individuals surveyed, insurance fraud occurs because of peoples' need for money (cited by 60 percent of respondents), or because they believe they are paying too much for insurance (42 percent). One-third of respondents said that those committing fraud do so in order to make up for the deductible they would have to pay. Among the survey's other key findings:      • More than half (56 percent) of respondents say that they would likely report someone who has committed insurance fraud, while one respondent in five is uncertain about their position on this issue.      • While consumers who have recently filed a claim were most likely to have done so through an agent (48 percent) or through a call center (46 percent), the survey indicates that people are making greater use of the Internet to file claims. According to the survey, the number of Internet-based claims has increased from nearly zero in 2003 to 7 percent today. U.S. adults over the age of 34 prefer dealing with agents, while younger individuals prefer direct channels such as phone and Internet, according to the survey.      • Approximately one U.S. adult in ten (11 percent) knows someone who has inflated the value of his or her insurance claim. The proportion of people who know someone who has inflated the value of a claim is highest among the youngest survey participants (19 percent of respondents aged 18-24) and the wealthiest (19 percent of individuals with incomes over $100,000). urn:uuid:45aaf72b-01f2-4f3e-9cf3-5e3184758dcfIt's Not Our Fault We Went BankruptFormer Lehman CEO: It's Not Our Fault We Went Bankrupt September 1, 2010   Lehman Brothers' bankruptcy had nothing to do with Lehman Brothers, according to Dick Fuld, Lehman Brothers' former CEO. Instead, Fuld argued at a public hearing today, ...Wed, 01 Sep 2010 13:20:51 -0500<h1><a href="http://www.npr.org/blogs/money/2010/09/01/129575287/former-lehman-brothers-ceo-i-told-you-so">Former Lehman CEO: It's Not Our Fault We Went Bankrupt</a></h1> <h1></h1> September 1, 2010   Lehman Brothers' bankruptcy had nothing to do with Lehman Brothers, according to Dick Fuld, Lehman Brothers' former CEO. Instead, Fuld argued at a <a href="http://www.fcic.gov/hearings/09-01-2010.php" target="_blank">public hearing</a> today, Lehman went bust because the financial world wrongly lost confidence in the bank, and the government failed to effectively intervene. He doesn't mention <a href="http://www.npr.org/blogs/money/2010/03/repo_105_lehmans_accounting_gi.html" target="_blank">Repo 105</a>, the accounting gimmick that Lehman used to hide billions of dollars in debt, according to a court-ordered postmortem of the bank. In fact, in 1,680 words of prepared <a href="http://www.fcic.gov/hearings/pdfs/2010-0901-Fuld.pdf" target="_blank">testimony</a>, Fuld devotes exactly 15 words to what Lehman did wrong. And those 15 words are immediately followed by an explanation of why Lehman's errors didn't contribute to the bankruptcy: In retrospect, there is no question we made some poorly timed business decisions and investments, but we addressed those mistakes and got ourselves back to a strong equity position ... There is nothing about this profile that would indicate a bankrupt company. Here's the story of the Lehman bankruptcy, according to Fuld: <a name="more"> </a> The market was wrong to lose confidence in Lehman Brothers. Lehman's demise was caused by uncontrollable market forces and the incorrect perception and accompanying rumors that Lehman did not have sufficient capital to support its investments. Lehman suggested that the government ban naked short selling, or allow Lehman to convert to a bank holding company, or let it take deposits. The government refused, though it later wised up. Each of those requests was denied at the time. Tellingly, though, each measure was later implemented in some form for other investment banks during the days and weeks following Lehman’s bankruptcy filing. So Lehman went bankrupt. This loss of confidence, although unjustified and irrational, became a self-fulfilling prophecy and culminated in a classic run on the bank starting on September 10, 2008, that then led Lehman to file for bankruptcy four days later, in the early morning hours of September 15.urn:uuid:17474637-66c5-4e6d-a813-b174c813f59dWorst Not Over for U.S. Comm Prop MrktsS&P: The Worst Not Over for U.S. Commercial Property Markets August 23, 2010 E-mail Post Comment Print Article Reprints The slump in the U.S. commercial property market didn't quite plumb the depths of the downturn in residential real estate,...Mon, 23 Aug 2010 12:38:58 -0500S&P: The Worst Not Over for U.S. Commercial Property Markets August 23, 2010 E-mail Post Comment Print Article Reprints The slump in the U.S. commercial property market didn't quite plumb the depths of the downturn in residential real estate, but although there are signs that home prices are nearing the bottom, commercial real estate could fall further. According to an article published by Standard & Poor's Ratings Services, titled "U.S. Commercial And Residential Property Markets May Have Seen The Worst Of Their Slumps," despite a surge in foreclosures in the U.S. commercial real estate market, there were fewer defaults in commercial mortgage-backed securities (CMBS) than the rating agency originally expected. "We still see fundamentals in the market declining--if at a slower pace--and we might see more delinquencies in CMBS," S&P says in the article. As the U.S. economic recession spurred job losses and store closings, the commercial property market suffered sharp reductions in construction and steep decreases in prices. But although prices tumbled 39 percent from their peak--an even bigger drop than seen in residential real estate--the decline was tempered because there aren't as many commercial mortgages as there are residential loans, the article said. In addition, loan-to-value ratios in the commercial market weren't as high as those in the residential sector as lenders learned from the drubbing they took in the late 1980s. "The problem is severe but not quite as bad as in the residential market, and at this point it doesn't look quite as bad as we thought it might be," Standard & Poor's Chief Economist David Wyss said. "There's a more normal pattern in CMBS and commercial real estate because commercial real estate has always (been) a very cyclical business, and this has been a really bad cycle." Amid diminished demand for new strip malls, office buildings, and the like, companies with well-positioned portfolios will probably benefit, in S&P's view, in what could be an active year for debt sales by REITs and homebuilders. After a six-month dearth of issuance leading up to March of last year--during which there was no issuance by REITs--Standard & Poor's rated $9 billion in REIT debt from June to December 2009, and sellers matched that amount in first half of 2010. REITs are using much of this debt to build war chests to take advantage of opportunities that arise. Read more: http://www.insurancejournal.com/news/national/2010/08/23/112662.htm#ixzz0xS4XZvTR urn:uuid:8a1ae318-273d-429b-ad19-b40477170de3WOW!Billions for Iraq reconstruction unaccounted for; lax oversight blamed More than 95 percent of $9.1 billion cannot be accounted for  Baghdad, Iraq (CNN) -- A federal audit of $9.1 billion targeted for reconstruction in Iraq cannot account for m...Wed, 28 Jul 2010 09:13:49 -0500Billions for Iraq reconstruction unaccounted for; lax oversight blamed More than 95 percent of $9.1 billion cannot be accounted for  Baghdad, Iraq (CNN) -- A federal audit of $9.1 billion targeted for reconstruction in Iraq cannot account for more than 95 percent of it, a federal report said Tuesday. The report, by the Special Inspector General for Iraq Reconstruction, blamed "weaknesses in DoD's [the Department of Defense's] financial and management controls" and called on the Pentagon to improve its financial and management controls. The audit centered on the Development Fund for Iraq (DFI), which was established in May 2003 by the Coalition Provisional Authority (CPA). After the CPA was dissolved in June 2004, the Iraqi government authorized the U.S. government to administer the funds used for reconstruction. The Pentagon managed the DFI funds until the end of 2007, when its authority was withdrawn. The special inspector general reviewed records from eight Defense Department organizations that received DFI funds. "This situation occurred because most DoD organizations receiving DFI funds did not establish the required Department of the Treasury accounts and no DoD organization was designated as the executive agent for managing the use of DFI funds," the report concluded. "The breakdown in controls left the funds vulnerable to inappropriate uses and undetected loss." urn:uuid:db7534ba-8466-4c15-a8ce-08c8cbbf0b62Top Chef Sues BPTop New Orleans Chef Sues BP Over Seafood Losses June 28, 2010 Susan Spicer, one of New Orleans' most prominent and highly regarded chefs, has sued BP Plc for damages to restaurants that have lost normal seafood supplies because of the Gulf of Mex...Mon, 28 Jun 2010 12:47:35 -0500Top New Orleans Chef Sues BP Over Seafood Losses June 28, 2010 Susan Spicer, one of New Orleans' most prominent and highly regarded chefs, has sued BP Plc for damages to restaurants that have lost normal seafood supplies because of the Gulf of Mexico oil spill. Spicer, who runs the restaurant Bayona in New Orleans' French Quarter, is seeking class-action status on behalf of restaurants and others in the seafood industry that have suffered damage since the April 20 explosion of the Deepwater Horizon drilling rig. In a complaint filed late Friday in New Orleans federal court, Spicer's lawyer Serena Pollack said the restaurants depend heavily on the availability of local seafood. Because of the spill, they expect to lose customers because of lower tourism and convention business, contamination fears and significantly higher prices, the 18-page complaint said. "Much of plaintiff's business is based on the unique quality of Louisiana seafood, as well as the chain of delivery of that resource from the initial harvester (be it fisherman, oyster grower or shrimper),'' Pollack wrote. "Because this chain of delivery can not be maintained, plaintiff's business has been, and continues to be, materially damaged.'' BP spokesman Mark Salt said the British company does not comment on litigation. Bayona opened in 1990, and according to its website has since 1995 been one of New Orleans' top five restaurants in the Zagat Survey. Spicer has received a James Beard Foundation award, and appeared as a judge on Bravo's "Top Chef'' and Food Network's ''Iron Chef America.'' She has also opened the New Orleans restaurants Herbsaint and Cobalt. The lawsuit seeks compensatory and punitive damages from BP. It also names as defendants Transocean Ltd, which operated the rig; Cameron International Corp, which provided a blowout preventer; and a Halliburton Co unit that provided cementing services. More than 250 lawsuits have been filed over alleged damage from the oil spill, according to the Westlaw database. Westlaw is a unit of Thomson Reuters.urn:uuid:25679ae1-e629-43f5-854a-2ea5ad85559dNFIP Will Cover Hurricane-Driven Oil Damage, FEMA ConfirmsNFIP Will Cover Hurricane-Driven Oil Damage, FEMA Confirms By ARTHUR D. POSTAL Published 6/9/2010 Subscribe to Property & Casualty  NU Online News Service, June 9, 11:45 a.m. EDT WASHINGTON—The National Flood Insurance Program w...Wed, 09 Jun 2010 11:18:51 -0500NFIP Will Cover Hurricane-Driven Oil Damage, FEMA Confirms By ARTHUR D. POSTAL Published 6/9/2010 Subscribe to Property & Casualty  NU Online News Service, June 9, 11:45 a.m. EDT WASHINGTON—The National Flood Insurance Program will pay claims for damage to homes and contents from oil driven ashore during hurricanes, its officials have announced. In a statement, Rachel Racusen, press secretary to the Federal Emergency Management Agency, which runs the flood program, said, “The mixing of oil and other pollutants in flood water is not unusual during a storm.” She added, “Damage caused by these pollutants in flood waters is covered under the NFIP, subject to the provisions in the Standard Flood Insurance Policy.” Effectively, Ms. Racusen confirmed what Mississippi Insurance Commissioner Mike Chaney told state residents in a statement released Tuesday by his office. In the statement, Mr. Chaney said that to recover damages stemming from the additional risks oil poses should a hurricane strike, claimants seeking payment under the NFIP must prove there is a flood as defined in the standard flood insurance policy. If that can be proven, Mr. Chaney said, damage caused by pollutants to commercial policies is limited to $10,000. Home and condo payments will be limited to policy limits, and oil or water with oil in the yard is not covered. Mr. Chaney further said that the cost of complying with any local or state ordinance, including one that requires special removal methods for oil, is specifically excluded, with the exception of certain floodplain management mitigation requirements. Moreover, Mr. Chaney said, there will be no coverage for testing for, or the monitoring of, pollutants unless there is a law or ordinance requiring it.urn:uuid:41bae91a-c25d-4b04-a894-38bdbd9542f1Senate Approves Financial Reform Bill Senate Approves Financial Reform Bill May 21, 2010  The U.S. Senate approved a sweeping Wall Street reform bill Thursday night, capping months of wrangling over the biggest overhaul of financial regulation since the 1930s. By a vote of 59-3...Fri, 21 May 2010 12:35:34 -0500Senate Approves Financial Reform Bill May 21, 2010  The U.S. Senate approved a sweeping Wall Street reform bill Thursday night, capping months of wrangling over the biggest overhaul of financial regulation since the 1930s. By a vote of 59-39, the Senate approved S. 3217, the "Restoring America's Financial Stability Act," legislation meant to address the issues that caused the recent financial crisis. The Senate bill must now be merged with a measure approved in December by the U.S. House of Representatives. Only then could a final package go to President Obama to be signed into law, something that analysts said may happen next month. Changes proposed in both bills threaten to constrain the banking industry and reduce its profits for years to come. However, regulatory reform legislation leaves day-to-day regulation of the insurance market at the state level, a move supported by the insurance industry. "We believe the House and Senate have both made the correct decision in recognizing the strength of the state regulatory system for insurance," said Robert Rusbuldt, president and CEO of the Independent Insurance Agents and Brokers of America. "Property/casualty insurers played no role in creating the crisis and pose no systemic risk to the overall economy." The existing state-based resolution mechanism remains in place and policyholders will remain covered by the state guaranty fund system. The Senate reform legislation passed late last night recognizes that the property/casualty insurance industry does not pose systemic risk, according to Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA). "While we continue to have concerns with certain provisions in the bill, we appreciate the distinction made between insurers and others in the financial sector," Pusey said. "Given the importance of these reforms, AIA will remain active to ensure that the unique nature of insurance is preserved through any conference activity and into the bill's implementation." Issues of interest to surplus lines insurers and agents were also addressed in both the House and Senate financial reform legislation. Both bills include language from the NonAdmitted and Reinsurance Reform Act — surplus lines regulatory reform provisions that aim to make buyer access to the surplus lines market quicker and more efficient, as well as streamlining the payment of surplus lines taxes on multi-state risks for surplus lines brokers. "Senate approval of the language is a giant step toward achieving needed reforms of surplus lines regulation," said Richard Bouhan, executive director of the National Association of Surplus Lines Offices (NAPSLO). "This is an issue NAPSLO, and the industry, has worked on for many years and we are glad to see the language included in the bill." In addition, the reform legislation would eliminate duplicative compliance requirements on surplus lines policies that insure risks across state lines. The bill reduces surplus line broker costs by clarifying that only one state, the home state of the insured, regulates a multistate surplus line transaction, according to NAPLSO. The bill includes a fairly strong set of provisions to improve regulatory oversight of ratings agencies, make them legally liable when they fail to follow appropriate procedures, reduce conflicts of interest, and reduce reliance on credit rating agencies. Some consumer advocates had hoped the bill would do more in this area. "We do have concerns," said Consumer Federation of American Director of Investor Protection Barbara Roper Roper. "Particularly that the legislation fails to give the SEC any regulatory authority over rating agency methodologies and procedures and rushes to reduce reliance on ratings without first determining how they are used and whether adequate alternatives exist." Even so, CFA said it believes the bill takes important steps to both improve the reliability of ratings and to reduce the financial system's vulnerability to ratings failures. President Obama said the final version of the bill would hold financial firms accountable but not stifle the free market. "Over the last year, the financial industry has repeatedly tried to end this reform with hordes of lobbyists and millions of dollars in ads, and when they couldn't kill it they tried to water it down. ... Today, I think it's fair to say these efforts have failed,'' Obama said. "We've still go some work to do,'' he added. "The House and the Senate will have to iron out the differences between the two bills.'' DOW JONES TUMBLES On Wall Street Thursday, the Dow Jones industrial average slid 3.6 percent, hurt by fears of Europe's debt crisis retarding global economic recovery, but also by uncertainty over U.S. financial reform, traders said. Barney Frank, head of a key House panel, told CNBC it was important to complete reform soon to ease uncertainty. Frank, the Democratic author of Wall Street reform in the House, on Thursday drew an early negotiating line ahead of impending talks with the Senate on a final package. In letters to senior Senate Democrats that were obtained by Reuters, Frank said certain House proposals on financial firm regulation and bank trading limits must be preserved. He said the House proposals were important to his home state of Massachusetts and that "none of them threaten or weaken the broad objectives of comprehensive reform ... I will insist that they be maintained in the final bill.'' The letters were addressed to Senate Democratic leader Harry Reid and Banking Committee Chairman Christopher Dodd, the Democratic author of the Senate bill. Both will likely be key players, along with Frank, in the House-Senate talks. "I look forward to working with my colleagues in the House to produce a strong bill,'' Dodd said in a statement. DODD HOPES FOR JULY 4 VOTE Dodd said he hoped the Senate would be able to vote to approve a final House-Senate package by July 4. Republicans worked to delay and water down the bill over months of closed-door negotiation and open debate, arguing it was an overreach of government into the private sector. The Senate bill "places layer upon layer of unnecessary new regulations on financial institutions that will undoubtedly have a chilling effect on the ability of American families and businesses to access credit,'' said Republican Senator Judd Gregg in a statement after the vote. Last-minute maneuvering on the Senate floor killed two controversial amendments: one to tighten proposed restrictions on risky trading by banks, and another exempting car dealers that do not finance their own lending to auto buyers from oversight by a new federal consumer watchdog. Republicans withdrew the auto-dealer amendment, offered by Senator Sam Brownback, so that the bank trading amendment, offered by Democrats Jeff Merkley and Carl Levin, would not come to a vote. It is opposed by major financial firms. The House bill already contains a watchdog exemption for auto dealers, opening the door to a deal in conference. Expecting such a move, Levin told reporters beforehand that it showed "the power of Wall Street'' at work in Congress. urn:uuid:ea995d75-3c5a-4e57-ac95-1ad40926f0eb7 Steps to Living Debt Free7 Steps to Living Debt Free When debt consumes our life, we feel it everywhere -- in our bank accounts, at the grocery store, and most definitely in our marriage. But there are painless ways to get your life and finances back on track. Here's where ...Wed, 19 May 2010 14:51:42 -05007 Steps to Living Debt Free When debt consumes our life, we feel it everywhere -- in our bank accounts, at the grocery store, and most definitely in our marriage. But there are painless ways to get your life and finances back on track. Here's where you should start. 1. Quit buying on credit. Put your credit cards on ice (some people actually pop them in a bowl of water in the freezer), then stick to cash. If you can't afford to buy with what's in your wallet — or on a debit card — pass it by. Don't Miss: Been Laid Off? How to Keep Your Finances Afloat 2. Post your debts. Make a list of the amounts you owe on each credit card and tape it to the refrigerator. Next to each debt, write the interest rate and the minimum monthly payment required (or the larger monthly payment you intend to make). List the debts in order of size, the smallest first. (If you're paying off a big medical bill or student loan, include that too.) Then, every month, pay the fixed amounts you put on the list. As the bills shrink, your creditors will reduce the minimum payment. After all, they want to keep you paying for as long as possible. But don't succumb. The key to this get-out-of-debt strategy is keeping your payments level, so you'll be reducing more of the principal every month. When one credit card is clean, apply that payment to your other cards. After a few months, you'll be surprised at how rapidly those debts have declined. Don't Miss: Helpful Hints for Sticking to a Budget 3. Find cheaper consumer credit. If you're paying high interest rates on your credit cards — some creditors charge as much as 25 percent — it may make sense to transfer your debts from your present cards to one of the new low- or no-interest cards. But be sure to read the fine print. The teaser rate on many of these cards doesn't last long — usually six months. So shifting debt is best for people who know they can pay it off before the rate goes up. Don't Miss: Never Pay Credit Card Late Fees Again If you do transfer, be vigilant about paying on time. Just one late payment will immediately push you to a higher rate. And don't forget to cancel your old card or you'll soon be racking up charges on it again. 4. Don't play games. It can be tempting to borrow from one card to pay off another. But you'll just be digging a deeper hole for yourself. In addition, you pay more in interest rates and fees on cash advances. Don't Miss: Try This Plan to Get Your Credit Back on Track 5. Beware the home equity loan. If you wipe out your credit card debt by borrowing against your house, you'll probably run up your cards all over again. Then you'll have credit card debt and a higher mortgage payment. Once you're living on cash rather than on credit, you might consider a low-rate home equity loan to pay off the remaining debt. Don't Miss: Learn How to Lower Home Bills and Expenses 6. Get help. If you can't make it through a month without using your card, or if you can't seem to make any progress digging out of debt yourself, go to a reliable credit counselor. For a modest fee, a counselor will negotiate with your creditors to lower the interest rate or stretch out payments. You pay a monthly check to the counseling firm, and then it doles out the agreed amount for each bill. Your best bet is to use one of the 140 affiliates of the National Foundation for Credit Counseling (800-388-2227 or nfcc.org), a well-regarded credit counseling network. Or, you can call each creditor yourself and work out your own payment plan. A warning: There are lots of disreputable credit counselors out there. To protect yourself, don't choose one who claims you'll pay 75 percent less than you owe (you'd be walking away from some debts, which will wreck your credit rating), tells you to quit making your payments while the "counselor" negotiates (you'll be dunned and possibly sued), urges bankruptcy when it's not necessary, or demands a substantial fee up front. Don't Miss: Warning! Beware of Advice That Can Get You in Deeper Debt 7. Keep your eye on the big picture. Now that you're on your way to getting your credit card debt under control, here are some guidelines for managing the rest of your debt. A new home shouldn't cost more than two and a half times your gross annual income. And remember — the bigger the house, the more expensive the yearly upkeep. Total monthly debt repayments shouldn't exceed 36 percent of your gross monthly income, including credit card payments, car payments (including a lease), home expenses (interest, principal, taxes, and insurance), and any other long-term loans. Your combined interest payments on all loans should be less than 3 percent of your gross annual income. If you're paying up to 5 percent of your income, think about taking on another job; finding a cheaper, fixed-rate mortgage; or moving to a less expensive house. At 9 percent, there may be no option but bankruptcy. How do you control your credit and work to stay out of debt? What are your penny-pinching tricks? urn:uuid:a52f5075-62a4-472b-9ddb-20d419e2df3dWarren Buffett, Defender Of Goldman Sachs Warren Buffett, Defender Of Goldman Sachs May 3, 2010 By Jacob Goldstein Warren Buffett has this image as a no-nonsense, middle-America value investor. But these days he's defending Goldman Sachs and Moody's, and pushing to block rules that w...Mon, 03 May 2010 15:42:48 -0500<div class="storytitle"> <h1>Warren Buffett, Defender Of Goldman Sachs</h1> </div> <div class="postinfo" sizset="63" sizcache="23"> May 3, 2010 </div> <div class="postcontent" sizset="64" sizcache="23"> <div class="story" sizset="64" sizcache="23"> By Jacob Goldstein Warren Buffett has this image as a no-nonsense, middle-America value investor. But these days he's defending Goldman Sachs and Moody's, and pushing to block rules that would require a more cautious approach to the derivatives business. Given his business interests, this is only natural. <a name="more"></a> "I haven't seen anything in Goldman's behavior that makes it any more subject to criticism than Wall Street generally," Buffett said at a news conference yesterday, the <a href="http://online.wsj.com/article/SB10001424052748704608104575218071029226354.html">WSJ reports</a>. He explicitly addressed Abacus, the deal at the center of the <a href="http://www.npr.org/blogs/money/2010/04/sec_accuses_goldman_sachs_of_f.html">SEC's lawsuit</a> against Goldman: "I have no problem with that Abacus transaction. If there were other things that were hugely troublesome, I haven't seen them." During the crisis, Buffett's Berkshire Hathaway loaned money to Goldman; in exchange, Berkshire got warrants entitling it to buy billions of dollars worth of Goldman stock at $115 per share. Goldman shares have fallen sharply in the past few weeks, but they're still <a href="http://npr.wikinvest.com/wikinvest/export/v3/?frame=NPRTearsheet&action=getFrame&search=NYSE:GS">trading above $145</a>. So Berkshire is in the money on its warrants. Still, the higher the shares rise, the more Berkshire stands to profit. Berkshire also owns a large stake in Moody's, one of the big ratings agencies. Buffett said this weekend that the agencies are "incredibly wonderful businesses," and added that their "pricing power is significant." The agencies' business model -- they're paid by people who stand to benefit from a high rating -- has been criticized, particularly given the fact that lots of high-rated securities fell apart during the bust. Buffett, who has criticized the risk that derivatives can create, has also been <a href="http://www.npr.org/blogs/money/2010/04/what_warren_buffett_wants_from.html">pushing to block new rules</a> that would require companies to set aside collateral -- money they might need to pay off existing derivatives contracts. In his <a href="http://www.berkshirehathaway.com/letters/2008ltr.pdf">letter to shareholders this year</a>, Buffett explained that Berkshire gets to hold more than $8 billion in "float" from its derivatives business. He added that the company only has to post small amounts of collateral against its derivatives contracts -- allowing it to plow much of the $8 billion into profitable investments. New collateral rules could eat into those profits. </div> </div>urn:uuid:41ed7a7a-ecc3-4a0a-8325-6235e72097acHealth Care Reform Affects Small BizHow Health-Care Reform Will Affect Small Business Assessing the law's long-term impact on small employers and the self-employed, from access to health exchanges, tax credits, and tax hikes By Karen E. Klein   The health-care reform law, all 2...Thu, 22 Apr 2010 09:36:46 -0500<h1>How Health-Care Reform Will Affect Small Business</h1> <h2>Assessing the law's long-term impact on small employers and the self-employed, from access to health exchanges, tax credits, and tax hikes </h2> By <a href="http://www.businessweek.com/bios/Karen_E._Klein.htm">Karen E. Klein</a>   The health-care reform law, all 2,400-plus pages of it, will take eight years to be fully implemented. Some self-employed people and small employers will begin to feel the impact almost immediately. Others won't notice changes for a few years. Here are the major adjustments.   <h3>Preexisting Conditions</h3>   By June, a temporary high-risk pool will be established so that uninsured people with medical conditions can buy insurance coverage at reduced rates. Starting this fall, insurance companies will no longer be able to put lifetime limits on coverage or rescind coverage, except in cases of fraud. By 2014, insurance companies will be barred from rejecting individuals because of preexisting conditions. That's welcome news for cancer survivor Susan Carrier, a self-employed marketing writer and blogger based in Altadena, Calif. Treatment that included a stem-cell transplant was covered through her husband's employer-sponsored policy, but they have since separated. Should they divorce, she says, "it's encouraging to know that my preexisting conditions won't prevent me from obtaining coverage."   <h3>Health Exchanges</h3>   Beginning in 2014, individuals and small businesses will be able to shop for coverage in new state-run health exchanges. About 25 million people are projected to use the exchanges. Paula L. Johnson, a self-employed graphic designer in Pasadena, Calif., says she is likely to be one of them. She currently pays $723 monthly for health coverage through <a href="http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?capId=173830">Kaiser Permanente</a>. "The monthly premium is so high I will have to find something else next year," she says. Her premiums have jumped by $100 per month for the past few years, squeezing her budget. "If I can get lower-cost insurance, I can save more for retirement," she says.   <h3>Companies With Fewer Than 50 Employees</h3>   These small ventures, which make up 96% of U.S. businesses, are exempt from the mandate that requires larger enterprises to provide health benefits by 2014 or pay a $2,000 penalty per employee. Merely knowing that the 50-employee threshold exists may discourage growing enterprises from adding full-time employees, says Jim Garland, CEO of <a href="http://www.sharpdetails.com/">Sharp Details</a>, which cleans private planes. The company, based at Washington's Dulles Airport with operations along the East Coast, is growing and needs more help, but Garland is wary about crossing the 50-full-time-employee threshold and having eventually to provide health benefits. He currently has 35 full-timers and 23 part-timers. He provides 100% coverage to his management team and 50% to additional employees who elect to be covered. Garland predicts that many small companies will find a way to stay under 50 employees because of the insurance mandate. "They'll break up their operations into separate companies, hire more part-timers, or do whatever they have to" to stay in business, he says. Another result of reform that Garland will feel personally is a tax hike for high-income individuals, starting in 2013. The law is funded in part by a 0.9% (from 1.45% to 2.35%) tax increase on wages over $200,000 for individuals and $250,000 for married couples. The same taxpayers face a 3.8% tax on unearned income, starting in 2013. Garland says he resents the fact that his taxes will go up while he won't benefit directly from reform. "Part of the idea of how this is going to be paid for is by taxing people just like me," Garland says. "It seems the more successful you are, and the more risk you take on, the more burden you bear." <h3>Tax Credits for The Smallest Companies</h3> Businesses that pay more than 50% of employees' health benefits, have fewer than 26 employees, and pay average annual wages of less than $50,000 can claim a tax credit of up to 35% of the cost of premiums from the 2010 tax year through the 2013 tax year. The credit will go up to 50% in 2014 and can be used for two consecutive years after that. One entrepreneur who says the credit may spur him to offer benefits is Paul Ward, CEO of <a href="http://www.mediamechanic.net/index_frmset.php">Media Mechanic</a>, a Web design and multimedia agency based in a suburb of Portland, Ore. Ward is currently insured through his wife's employer and cannot afford to provide coverage for his two employees. The tax credits may change things. "I'm looking at the 35% tax credit this year and that's a fairly good chunk. That brings it down to where now it will make more sense to buy a premium for myself and my team," he says. Some 4 million businesses are expected to be eligible for the credit this year, and the Congressional Budget Office estimates that the credit could save small businesses $40 billion by 2019. Tammy Rostov already buys health coverage for herself and her five full-time employees at her Richmond, Va., retail store, <a href="http://www.rostovs.com/">Rostov's Coffee & Tea</a>, but the cost has increased so much that she has considered dropping it in recent years. Getting tax credits will help, but she says she would probably continue to offer insurance even if reform had not passed. "It's still something I would offer through the business because that's always been important to me. But this year I had to think about it hard because it got so expensive, I wasn't sure I could do it," she says. <h3>letting employees shape their plans</h3> Liz Parker, who founded the <a href="http://www.tulsarib.com/">Tulsa Rib Company</a> in Orange, Calif., in 1981 with her husband, has 17 full-time employees. She is looking forward to getting tax credits for the coverage she already offers, which has put her at a price disadvantage against competitors, few of which cover employees. Parker hopes that small businesses will get prices comparable to larger businesses when they are able to buy pooled coverage through the small business exchanges. "I've been at a great disadvantage, but now there's an end in sight," she says. By 2014, she will decide whether to continue offering group coverage or let her employees buy their own health insurance, perhaps with a pay raise to help. Individual employees could buy the coverage they need rather than having her choose a group policy that isn't necessarily a good fit for everyone. "It's a horrible feeling having to pick and choose the coverage options for everyone," Parker says. Lani Hay is president of <a href="http://www.lmt-inc.com/Default.aspx">Lanmark Technology</a>, an IT company based in Vienna, Va., that specializes in government contracting work. The former U.S. Naval aviator opened a one-woman shop in 2003 and now employs 150. Hay already provides insurance but worries that her costs will increase dramatically from now to 2014, when she'll gain the option of buying into an exchange. <h3>risk: tax increase on unearned income</h3> "In the past three years, my health costs have increased each year by double digits. That cuts right into the profit margins of my company," Hay says. "For any small business, whether it has 10 or 500 employees, it's a challenge having enough working capital. But to be competitive and attract the same employees as the bigger guys, we have to offer the same benefits package they do." Another worry plagues R. Michael Johnson, president and CEO of <a href="http://www.businessweek.com/smallbiz/content/apr2010/4271302">Cox Industries</a>, a midsized lumber company in Orangeberg, S.C. He provides a generous benefit package for his 400 employees, but the company relies on family shareholders and outside investors, some of whom will be affected by the tax increase on unearned income for wealthy individuals. "The 3.8% tax on unearned income will increase the earnings requirements on [subchapter S corporations] such as Cox to satisfy the risk our shareholders take by investing in small businesses like ours," Johnson wrote in an e-mail. "This small percentage seems benign, due to the small number and putting it on 'unearned income,' but this income is earned. In fact, our team works hard every week to earn this income and reward the shareholders that patiently leave their capital in the business." Another thing that worries Johnson is his calculation that he might save up to $2 million if he were to drop his employee benefits and instead pay the $2,000 per-head penalty. "We are not even remotely considering this option, but I hate to think that new legislation would actually make dropping our plan more appealing to businesses like ours," Johnson says. urn:uuid:1dd7a16c-fbad-4048-a8dd-0123806647d8Poor State Farm Sues TDIState Farm Sues Texas Department of Insurance Over Web Postings April 1, 2010 State Farm Insurance has filed a lawsuit against the Texas Department of Insurance after the state agency took the unprecedented move of publicizing on its Web site recent...Thu, 01 Apr 2010 13:07:33 -0500<h1>State Farm Sues Texas Department of Insurance Over Web Postings</h1> April 1, 2010 State Farm Insurance has filed a lawsuit against the Texas Department of Insurance after the state agency took the unprecedented move of publicizing on its Web site recent rate hikes by the company. Texas' largest insurer is seeking to protect from disclosure certain information that State Farm said could benefit its rivals in the insurance industry. Department spokesman Jerry Hagins says the agency's position is that all documents associated with a rate filing are public information. State Farm has filed twice in the past year for homeowners <a href="http://www.insurancejournal.com/news/southcentral/2009/07/16/102280.htm" target="_blank">rate increases in Texas</a>. Posted on the agency's were two proposals filed over the last eight months that increase homeowner premiums an average of 13 percent. Hagins tells The Dallas Morning News that the decision to post was partly the result of increases filed so close together. The company has been embroiled for years in disputes over its homeowners rates in Texas. In November 2009, TDI ordered State Farm Lloyd's (SFL) to refund a total of <a href="http://www.insurancejournal.com/news/southcentral/2009/11/17/105391.htm" target="_blank">$310 million</a> to policyholders after finding that the insurer had overcharged customers beginning in 2003. State Farm subsequently <a href="http://www.insurancejournal.com/news/southcentral/2009/11/30/105627.htm" target="_blank">appealed the order</a>, which halted repayments until the courts resolve the case. The company recently filed for average <a href="http://www.insurancejournal.com/news/southcentral/2010/03/31/108626.htm" target="_blank">9.9 percent rate increase</a> request for homeowners coverage in Louisiana, where it has a little more than 300,000 policyholders. In February, Insurance Commissioner Jim Donelon rejected the company's request for an average <a href="http://www.insurancejournal.com/news/southcentral/2010/02/11/107298.htm" target="_blank">19.1 percent rate hike</a>. Donelon said that increase would be unreasonable. urn:uuid:5df5999d-c8e8-43f2-ae71-23e70e33f489Free Health CareFree Health Care: Right or Privilege? Written by Daily Reckoning - 3/24/10 The French media reports the passage of the health care reform bill as though it were the Emancipation Proclamation. Now, Americans have finally entered the modern world, th...Wed, 24 Mar 2010 11:41:04 -0500<h2 class="posttitle">Free Health Care: Right or Privilege?</h2> Written by <a href="http://dailyreckoning.com/">Daily Reckoning</a> - 3/24/10 <div class="entry clearfloat"> The French media reports the passage of the health care reform bill as though it were the Emancipation Proclamation. Now, Americans have finally entered the modern world, they seem to say. Now, Americans have access to health care as a matter of right. We’re suspicious of anything the French papers think is a good idea; they’re as bad as The New York Times. That people think they have a “right” to health care just goes to show how little people think at all. “Rights” only make sense when they can be applied universally, without causing a “wrong” to someone else. You can have a right to own property, for example, because everyone can enjoy the right under the same terms and conditions. You can have a right to say what you like too…as long as everyone can say what he likes. But if you have the right to a cat scan, someone must have an obligation to make the machine…to put it in service…to run it…to maintain it…to offer it to you…and to interpret the results, etc. Who is this poor slave who has been shackled to your service? According to the advertising, the health care bill is supposed to work miracles. It is supposed to reduce businesses’ health care costs, reduce the federal deficit, and lower insurance premiums. Of course, it will do none of those things. “Now we’re really screwed,” says Jules, 22. “All you baby boomers are going to get more health care freebies and my generation is going to have to pay for it. Not only that, I’m going to have to buy health care insurance for myself. “And the country is going down the tubes, too. It’s going to be just like every other government boondoggle program. It’s going to cost a fortune and make things worse. You know, I can’t believe they passed that bill. It was outrageous. They bribed everyone to get the bill passed. And even then, they couldn’t get Republicans to vote for it.” France has a system of public health care that seems to work fairly well. On the two occasions when we’ve needed it…we found it efficient and dignified. One time, we were taken to the hospital in an ambulance; the local doctor thought we were having a seizure, a stroke or a brain tumor. It turned out to be an inner ear infection…but the service was good. No waiting. No problems. We were given tests…and it went away. Another time, Edward’s front teeth were knocked out in an accident while playing with the boy next door… He was rushed to hospital where the teeth were surgically re-implanted. Again, everything went well. But France is not the USA and the French system is not at all what the Obama team has come up with. The French system works as well as it does because the French are very critical, intolerant and demanding…of themselves as well as each other. At least, they used to be… It is still rare to see a very fat person in France. People are expected to take care of themselves. They are expected to eat properly. Unlike the English, they do not drink to excess. And unlike Americans, they do not shoot each other on street corners. The concept of behaving “correctly” applies to ones’ health as well as to everything else. People are expected to act correctly – that is, in ways that do not put too much strain on the public health system. What’s more, there is little ambulance-chasing by lawyers in France. Doctors and hospitals do not live in fear of lawsuits…and, in our experience, pharmacists give out advice, and medications, fairly freely. Regards, <a href="http://dailyreckoning.com/author/bbonner-2/" title="Bill Bonner" target="_blank">Bill Bonner</a> for The Daily Reckoning </div> urn:uuid:ec08badb-9805-4ee5-8630-82e67511c8b2Obama Signs Health Care BillObama Signs Health Care Bill By ARTHUR D. POSTAL NU Online News Service, March 23, 2:48 p.m. EDT WASHINGTON—President Obama has signed the historic bill reforming regulation and financing of health care, saying the bill provides "reforms ...Tue, 23 Mar 2010 16:26:28 -0500<h1>Obama Signs Health Care Bill </h1> <div id="articleSubtitle"> By <a href="http://www.property-casualty.com/Pages/Property-Casualty-Magazine-Author.aspx?key=ARTHUR D. POSTAL">ARTHUR D. POSTAL</a></div> <div style="display: block;" id="articleDate" jQuery1269378520503="5"> <div class="subscribeButton"><a href="javascript:void(0)" class="stbutton stico_rotate" title="ShareThis via email, AIM, social bookmarking and networking sites, etc." st_page="home"></a> </div> </div> <div> <div id="ctl00_PlaceHolderMain_ArticleWithPagination1" WebPart="true" __WebPartId="{f294abb0-7b40-41b8-b411-7dee65a29e9a}" __MarkupType="vsattributemarkup"> <div id="Pagination"> NU Online News Service, March 23, 2:48 p.m. EDT WASHINGTON—President Obama has signed the historic bill reforming regulation and financing of health care, saying the bill provides "reforms that generations of Americans have fought for and marched for and hungered to see." The bill is the Patient Protection and Affordable Care Act, (H.R. 3590.) At the same time, the reconciliation measure the Senate is considering to finance the reforms cleared a major hurdle when the Senate parliamentarian ruled informally that a provision of the bill imposing an excise tax on so-called “Cadillac plans would not violate budget rules. Democrats needed the ruling in order to pass the bill with a simple 51-vote majority. Otherwise, the bill would have needed 60 votes in order to limit debate, votes Republicans say they would not provide. <div id="bodyAd"><noscript></noscript></div> It also allows Democratic incumbents in predominantly Republican states to bolster their reelection chances by voting against the measure. At the same time, several Democratic officials and lobbyists projected that Democrats can count on 52 votes for the reconciliation package—and that the final vote will likely occur before the Senate leaves Friday for the two-week Easter recess. In his comments at the signing ceremony, President Obama said that, “Today, after almost a century of trying -- today, after over a year of debate -- today, after all the votes have been tallied, health insurance reform becomes law in the United States of America." While some aspects of the bill won't go into effect for years, Obama stressed that a "host of desperately needed reforms will take effect right away, this year," particularly the restrictions on insurance companies. Obama said the bill enshrines "the core principle that everybody should have some basic security when it comes to their health care." The nonpartisan Congressional Budget Office said the legislation would extend coverage to 32 million Americans who lack it, ban insurers from denying coverage on the basis of pre-existing medical conditions and cut deficits by an estimated $138 billion over a decade. If realized, the expansion of coverage would include 95 percent of all eligible individuals under age 65. Meanwhile, insurance industry officials continued to provide a mixed reaction to the legislation. For example, David Sampson, president and chief executive officer of the Property Casualty Insurers Association of America, lauded Congress’ decision to exclude from the bill provisions repealing the exemption from antitrust provisions afforded to health insurers under the McCarran-Ferguson Act. “We appreciate that Congress recognized repealing McCarran-Ferguson would not provide any benefits to the consumer or the insurance marketplace,” he said. Tom Currey, president of the National Association of Insurance and Financial Agents, said that NAIFA members “are pleased that Congress has recognized the positive role that health insurance agents can play in helping small businesses and individuals acquire appropriate health insurance plans,” noting that the bill makes it possible for agents to continue to perform their traditional role. At the same time, he had mixed comments about the reconciliation measure that passed the House Sunday and is now being considered by the Senate. “The so-called ‘sidecar’ bill strengthens the individual mandate, and we support that,” Mr. Currey said. On the other hand, he said, “We think the proposed 3.8 percent Medicare tax on the unearned income, including annuity payments, of higher income earners, sets a very bad precedent and should be dropped from the reconciliation package.” Mr. Currey argued that, “We need to encourage people to put at least some of their retirement funds into lifetime annuities – not discourage them. This proposal will certainly do the latter.” Janet Trautwein, CEO of the National Association of Health Underwriters, said the bill that became law today “does little” to truly rein in healthcare costs. She also said the bill contains “an unworkable individual mandate which will encourage people to wait until they are sick to purchase coverage, causing premiums to skyrocket significantly for everyone.” </div> </div> </div> urn:uuid:3c730455-86af-4fbf-87d0-45a61236dc1dTexting A&M Student Ordered to Pay $22MJury: Texting A&M Student Caused Fatal Crash; Ordered to Pay $22M March 22, 2010 A jury that decided a Texas A&M University student was texting while driving and caused a deadly wreck has ordered him to pay $22 million in damages. The victim...Mon, 22 Mar 2010 14:15:32 -0500<h1>Jury: Texting A&M Student Caused Fatal Crash; Ordered to Pay $22M</h1> March 22, 2010 A jury that decided a Texas A&M University student was texting while driving and caused a deadly wreck has ordered him to pay $22 million in damages. The victim, Megan Small of Houston, was a senior at Baylor University and was driving to Waco when the November 2007 accident happened near Calvert. The investigation indicated a vehicle driven by Reed Vestal crossed the center line and struck Small's vehicle head-on near Calvert. Phone records indicated Vestal sent and received 15 texts and made seven calls in the 45 minutes before the wreck. <div style="width: 300px; float: right; margin-left: 8px; clear: right;"> <div class="adv"> <div style="position: absolute; visibility: hidden; top: 0px; left: 0px;" id="beacon_292ca3f04e"><img width="0" height="0" alt="" style="width: 0px; height: 0px;" src="" /></div> </div> </div> The damages will be shared with Small's friend Laura Gleffe, who was driving another car that rolled during the crash. Small family attorney Hunter Craft says Vestal declared bankruptcy prior to the civil trial in Franklin. An attorney for Vestal did not immediate comment on the verdict. urn:uuid:107540cd-ef91-404e-9de7-fe08ee7ee808Notes from The Cheap SeatsMen vs. Women: Who Really Are the Safest Drivers? As it turns out...women (shocking). But it's a close race. To figure out whether men or women have "safest-driver" bragging rights, the Insurance Institute...Wed, 10 Mar 2010 17:20:41 -0600<h3>Men vs. Women: Who Really Are the Safest Drivers? </h3> <table style="width: 677px;" border="0" cellspacing="0" cellpadding="0" width="677"> <tbody> <tr> <td valign="middle"></td> </tr> </tbody> </table> As it turns out...women (shocking). But it's a close race. To figure out whether men or women have "safest-driver" bragging rights, the Insurance Institute (II) looked at almost 2 million consumers who requested auto insurance quotes since January 1, 2009. Of those 2 million, 52 percent were men and 48 percent were women--a solid sampling of each. <div id="more" class="entry-more"> II then compared the percentages of men and women who reported driving infractions in three categories: DUIs, all other types of moving violations (such as speeding tickets), and at-fault accidents. The numbers shook out as follows: <style> table.inswebTable { border:1px solid #000; font-family:Arial; margin-top:20px; width:400px; font-size:12px; text-align:left; } table.inswebTable th { padding:4px; background:#ccc; text-align:left; } table.inswebTable td { padding:4px; text-align:left; } table.inswebTable .percentage { color:#c00; } </style> <table class="inswebTable" border="0" cellspacing="0" cellpadding="0"> <tbody> <tr> <th> </th> <th>Men</th> <th>Women</th> </tr> <tr> <td>Percent who reported at least one DUI</td> <td class="percentage">0.93%</td> <td class="percentage">0.48%</td> </tr> <tr> <td>Percent who reported at least one moving violation</td> <td class="percentage">7.41%</td> <td class="percentage">6.57%</td> </tr> <tr> <td>Percent who reported at least one at-fault accident</td> <td class="percentage">4.00%</td> <td class="percentage">4.29%</td> </tr> <tr> <td>Total</td> <td class="percentage">12.34%</td> <td class="percentage">11.34%</td> </tr> </tbody> </table> Men were almost twice as likely to have a DUI on their record, and were almost a full percentage point more likely to have a moving violation. On the other hand, women were slightly more likely to have an at-fault accident. Overall, men were a full percentage point more likely to have some kind of infraction. That equates to almost 20,000 more men than women reporting incidents on thier records. Conclusion? According to this data, women do appear to be safer drivers. This data also supports the reasoning behind the fact that women tend to pay lower auto insurance rates than men. When comparing a random man with a random woman, you simply can't know who will be the safer driver. But when you look at a large sample, men are probably better off riding shotgun. It uses an algorithm based on actual insurance rates that are filed with each state to estimate a rate for any driver and any vehicle. With that said, you still will never find a man willing to give up his driver's seat to a woman, especially when it comes to road trips. The last time I did that I woke up from a nap with my wife screaming there was an outlet mall in 2 more exits...give me a break! </div>