Business Insurance articles from August 2008

Business Insurance archives from August 2008

On the move.(Brian MacLean promoted as president of Travelers Cos. Inc.)(Terrence W. Cavanaugh joins as president of Erie Indemnity Co.)(Robert B. Willumstad joins as chaiman at American International Group Inc.)
August 1, 2008... Brian MacLean, chief operating officer and executive vp of Travelers Cos. Inc., has been promoted to president of the Hartford, Conn.-based company. Mr. MacLean has been Travelers' COO and executive vp since May 2005. He will retain his COO...

Stoked to carve SERFF; NAIC proposal called `hostile takeover'.(Feature: Regulation)(System for Electronic Rate and Form Filing)(National Association of Insurance Commissioners)
August 1, 2008... Byline: Meg Fletcher An online system that speeds insurers' filing of rates and forms and regulators' review of them seems an unlikely takeover target. For the past 10 years, representatives of the industry and regulators have worked...

IN Focus.(managing directors of insurance companies)
August 1, 2008... For insurance industry executives concerned with how shareholders and potential shareholders view their companies, the opinions of the analysts who scrutinize the industry for various banks and investment firms are critically important. Here's...

Insurers' tech spending reflects market reality.(Feature: Gatherings)
August 1, 2008... Byline: Rodd Zolkos SEATTLE-As they weigh business expansion, growth through acquisition and speed to market, insurance companies inevitably confront technology issues forcing them to weigh whether to build, buy or outsource solutions. ...

AIG Global raises limits, capacity on political risk.(Industry News)(American International Group Inc.)(Brief article)
August 1, 2008... NEW YORK-AIG Global Trade & Political Risk Insurance Co. has increased its capacity on political risk insurance policies and trade credit insurance. The unit of New York-based American International Group Inc. will now offer political risk...

SRS starts health care industry practice.(Industry News)(Strategic Risk Solutions Inc.)(Brief article)
August 1, 2008... CONCORD, Mass.-Captive management and consulting services provider Strategic Risk Solutions Inc. has launched a health care industry practice. The new practice will coordinate services to clients in the health care industry regardless of...

Insurance companies among `Best in Show'.(Industry News)(Brief article)
August 1, 2008... CINCINNATI-The Hartford Financial Services Group Inc., Liberty Mutual Group and Farmers Insurance Group were the top winners in the Insurance Marketing & Communications Assn.'s 2008 Showcase Awards, each winning four "Best of Show'' awards in...

ING, Everest team up to provide funeral planning resource benefit.(Industry News)(ING Employee Benefits and Everest Funeral Package L.L.C.)(Brief article)
August 1, 2008... MINNEAPOLIS-ING Employee Benefits has entered into a marketing agreement with Everest Funeral Package L.L.C. under which the companies will offer a comprehensive employee life insurance option providing plan members and their families funeral...

The rewards far exceed any risk.(First Word)(taking care of pets)
August 1, 2008... Byline: Rodd Zolkos I've been reading newspapers and magazines long enough to know this much: If you combine columnists and dogs, you're going to get columns about columnists' dogs. I've been guilty of it myself on more than one...

Three questions.(Industry News)(interview with Kim Weber from Zurich North America)(Interview)
August 1, 2008... The environmental insurance market offers considerable opportunity. But success requires scientific expertise and a keen understanding of local jurisdictions. Recently, Kim Weber, New York-based vp of distribution and market management in...

Client relationships key in soft market.(Last Word)
August 1, 2008... Byline: Darren Pierce A soft market consequently means a highly competitive environment, price wars and slower business. But is a softening market a weakness or an untapped opportunity? What if a producer could win more business from...

Global success requires overcoming local hurdles.(Feature: Gatherings)(insurance seminars)(Conference notes)
August 1, 2008... Byline: Rodd Zolkos TAIPEI, Taiwan-Global insurance players are increasingly seeking to tap what they see as rich opportunities in emerging markets, but doing so successfully means clearing a variety of hurdles including product design and...

ERM creates a stable base for Sarbanes-Oxley compliance.(Tech Focus)(Environmental Resources Management)
August 1, 2008... Byline: Steven Minsky Sarbanes-Oxley isn't new. But judging by the way most CFOs still treat financial controls, you'd think the ink wasn't even dry on the Sarbanes-Oxley Act. CFOs have had years to adapt, but still face big risks of...

Reinsurance placement increasingly electronic.(Cover Focus: Reinsurance Strategies)
August 1, 2008... Byline: Rodd Zolkos Increased efficiency, better data quality and the prospect of better decision-making both by buyers and underwriters are among the key factors driving a steady increase in online reinsurance placement. The benefits...

Playing to win; Reinsurance pricing remains soft despite catastrophe activity.(Cover Focus: Reinsurance Strategies)
August 1, 2008... Byline: Meg Fletcher While global catastrophes are affecting millions of people this year, insured losses so far in 2008 are above-average yet reinsurance pricing remains soft, sources say. Reinsurers are struggling to maintain a...

Brazil ends nearly 70-year monopoly and welcomes foreign reinsurers.(Cover Focus: Reinsurance Strategies)
August 1, 2008... Byline: Meg Fletcher Global reinsurers are flocking to Brazil now that legislation has opened the door to private companies. Reinsurers want to find opportunity and profit while meeting the increasingly sophisticated needs of the...

Reinsurers tap emerging markets.(Cover Focus: Reinsurance Strategies)
August 1, 2008... Byline: Meg Fletcher Reinsurers that are seeking growth are casting their nets wider than in the past. Demands for more competitive pricing and the fallout from the capital and stock markets is hurting reinsurers' profitability in...

Compliance; Risk management tips for CFOs and CROs.(Tech Focus)(chief financial officers and chief risk officer )(Brief article)
August 1, 2008... * Apply ERM to all areas including financial reporting. * Apply ERM to all areas including financial reporting. * Define core processes representing the business. * Use classification categories to roll up all risks by root cause....

When to seek outside help.(Spotlight: Catastrophe Management)
August 4, 2008... Byline: Judy Greenwald When is the right time to bring in a forensic accountant? Some observers say such an expert should be involved before a business interruption policy is even signed. A forensic accountant, they say, can help...

Lies, betrayals, fall at fictional Titanic Insurance.(End Page)
August 4, 2008... Corruption, with deadly implications, at the highest levels of management. A level of deceit so pervasive in the organization that sales staff can't trust management, management can't count on what sales tells them and clients have no idea...

Modeling rests on data; Questions & answers.(Spotlight: Catastrophe Management)(Karen Clark)(Interview)
August 4, 2008... Byline: Mark A. Hofmann Karen Clark is president and CEO of Karen Clark & Co., a Boston consultant specializing in catastrophe risk assessment and model evaluation. Ms. Clark developed the first hurricane catastrophe model and in 1987...

Protect workforce to reinstate post-catastrophe operations; From employees left homeless to those strapped for cash, personal assistance and nontraditional worksites can pay off.(Spotlight: Catastrophe Management)
August 4, 2008... Byline: NICK WHITFIELD Keeping employees safe and productive can be among the most complex aspects of hurricane management. "We learned from Katrina that we can't expect people to come to work when they don't have a home themselves,''...

Experts sharpen focus of cat claims; Forensic accountants wed policy terms, business knowledge.(Spotlight: Catastrophe Management)(Frank Oliver)
August 4, 2008... Byline: JUDY GREENWALD A forensic accountant's job is to determine what a company lost as a result of a catastrophe and to help in pulling together the business interruption claim, say experts. Forensic accountant Frank Oliver, senior...

Employers to review leave policies; Court says broad FMLA policies can bind employer to provide leave.(News)
August 4, 2008... Byline: JUDY GREENWALD CHICAGO-An employer that promises its employees leave under the federal Family Leave and Medical Act can be found liable under state law if it fails to provide that leave, even if the employee was not entitled to the...

London MGA challenges borough's right to place cover with mutual; Issues raised include whether such U.K. public entities must seek bids.(International News)
August 4, 2008... Byline: STUART COLLINS Legal wrangling over how public sector organizations use mutual insurers is set to take the European stage, as one insurer brings the issue to the European Court of Justice. Earlier this year, the United...

Employers spared higher health fees; Mass. lawmakers pass legislation to help fund state health care program.(News)
August 4, 2008... Byline: JERRY GEISEL BOSTON-Massachusetts employers, at least for now, will be spared from having to make larger contributions to help fund part of the state's health care reform law. That's because lawmakers approved budget...

DEAL TERMS.(News)
August 4, 2008... XL Capital Ltd.'s commutation deal reduces its exposure to financial guarantee insurer Security Capital Assurance Ltd. to $1.1 billion. Provisions include: * XL will pay SCA $1.78 billion in cash. * XL will provide 8 million newly...

SCA commutation deal relieves pressure on XL; Insurer still facing problems of soft market.(News)(Security Capital Assurance Inc)
August 4, 2008... Byline: JUDY GREENWALD HAMILTON, Bermuda-XL Capital Corp. Ltd. put a major problem behind it with last week's commutation agreement with financial guarantee insurer Security Capital Assurance Inc., which eliminates a key distraction and...

Sustainability requires conservation mindset.(Viewpoint essay)
August 4, 2008... Byline: Regis Coccia Sustainability is generally a good thing, whether in business or natural resources. The idea of making something last indefinitely, or at least not consuming a resource faster than it can be replenished, is getting...

FEMA aid policy must be clarified to public entities.(Viewpoint essay)(Brief article)
August 4, 2008... WE'RE ALL FOR governmental accountability, particularly when it comes to mitigating and insuring against disasters. But the Federal Emergency Management Agency's modified policy on when and how much aid a public sector entity may receive after...

In brief.(News)(Workers compensation claim frequency continue to decline at a slower rate than during the previous two years)(Increase in the shareholder class action filings due to the credit crisis)(Labor Department and the Securities and Exchange Commission signing a memorandum of understanding to share information affecting retirement plans)
August 4, 2008... Comp claim frequency falls again: NCCI study Workers compensation claim frequency continued to decline during 2007, although at a slower rate than during the previous two years, NCCI Holdings Inc. reported. While a 2.5% decrease in 2007...

When the doctor isn't in the house.(End Page)(Brief article)
August 4, 2008... The same kind of sophisticated technology that doctors have been using to treat sick researchers at the South Pole is helping heal patients in a handful of Texas retail clinics. NuPhysicia L.L.C., a Galveston, Texas-based provider of...

Space market rates rise, but less than expected; Despite losses, market operating 'at two speeds'.(International News)
August 4, 2008... Byline: STACY SHAPIRO The space insurance market is not demanding the stellar rate increases some brokers and underwriters were predicting earlier this year. Although some satellite launch and in-orbit losses have continued to trickle...

Congress can make reform efforts a reality.(Viewpoint essay)(Brief article)
August 4, 2008... SENATE BANKING, Housing and Urban Affairs Chairman Chris Dodd, D-Conn., fully understands the wisdom of Otto von Bismarck's observation that "politics is the art of the possible.'' As we report on Page 3, such an understanding was more than...

FEMA modification of disaster aid rules stuns public entities.(News)
August 4, 2008... Byline: DAVE LENCKUS Public entities susceptible to property damage in successive disasters of the same type no longer can count on federal aid to routinely cover their uninsured losses, following a policy adjustment at the Federal...

FEMA's modified formula for calculating aid limits assistance if a second loss occurs.(News)
August 4, 2008... Byline: Dave Lenckus After the Federal Emergency Management Agency has covered uninsured damage that a public entity sustained in a national disaster, it will limit its future assistance to that entity if the same properties are damaged in...

Hurricane lessons of 2004, 2005 spur 'demand surge' model changes; Data differentiated storm damage from soaring repair and services costs.(Spotlight: Catastrophe Management)
August 4, 2008... Byline: ROBERTO CENICEROS Today's catastrophe models incorporate a better understanding U.S. "demand surge'' than 2004 and 2005, when a series of hurricanes revealed weaknesses in the tools, observers say. Demand surge refers to price...

Time running short for regulatory reform; Senator says passage of surplus lines, insurance information acts possible, but no OFC this year.(News)
August 4, 2008... Byline: MARK A. HOFMANN WASHINGTON-Despite the wishes of many in the insurance industry, passage of comprehensive insurance regulatory reform, including establishing a system of optional federal charters for insurers and producers, appears...

Uncertainty ends at RSA with GM asbestos deal; Insurer says settlement won't affect earnings.(News)(Royal & SunAlliance Insurance Group and General Motors)
August 4, 2008... Byline: ROBERTO CENICEROS LONDON-Last week's settlement between General Motors Corp. and Royal & SunAlliance Insurance Group P.L.C. over coverage for GM's asbestos and environmental claims ends uncertainty over future legal costs faced by...

Forensic accountants mind the knowledge gap; Disaster recovery speeded by familiarity with risk managers' business and specific coverage terms.(Spotlight: Catastrophe Management)
August 4, 2008... Byline: JUDY GREENWALD Forensic accountants' expertise in policy language and experience with insurers can help risk managers ultimately receive the maximum payment possible from a business interruption claim, observers say. They can...

Typhoon insured losses put at less than $100 million.(International News)(Brief article)
August 4, 2008... Byline: Mark A. Hofmann Typhoon Fung-Wong is likely to cause less than $100 million in insured losses in Taiwan, catastrophe modeler AIR Worldwide Corp. estimated last week. The typhoon hit central Taiwan early last week, packing winds...

Suicide compensable if tied to work injury, Nevada high court rules; Causation at issue in suit seeking benefits.(News)
August 4, 2008... Byline: ROBERTO CENICEROS CARSON CITY, Nev.-A suicide sufficiently connected to an industrial injury is compensable under Nevada's workers compensation system, the state's highest court has ruled. State law barring family members from...

Business interruption may cost more than damage; Arrangements and relationships made before cat strikes set the speed, success of recovery efforts.(Spotlight: Catastrophe Management)
August 4, 2008... Byline: NICK WHITFIELD Year-round planning and preparation are essential for risk managers with hurricane-exposed properties as forecasters predict an active hurricane season this year. Two quiet seasons removed from the huge U.S....

Global firms aim to implement consistent loss-control culture; Employers should educate foreign staff on loss control issues.(Spotlight: Catastrophe Management)
August 4, 2008... Byline: MARK A. HOFMANN Sometimes, the North American emphasis on property loss control gets lost in translation as risk managers work to protect overseas operations. Where U.S. and Canadian risk managers stress minimizing physical...

California ruling strengthens homebuilders' risk management; High court finds widely used hold-harmless pacts require subcontractors to defend suits against general contractors.(News)
August 4, 2008... Byline: ROBERTO CENICEROS A California Supreme Court ruling siding firmly with a homebuilder general contractor is based on a widely used hold-harmless agreement that could affect numerous other disputes with subcontractors, attorneys say....

Transit mandate could 'green' Bay Area air.(End Page)(Brief article)
August 4, 2008... Perhaps, one mandate isn't enough. San Francisco, which is being sued over its first-of-its-kind 2006 law that requires employers with employees in the city to spend about $3,600 per worker on annual health care coverage, is considering...

Market moves.(Mutual Assurance Administrators Inc and TPA Pittman & Associates Inc.)(Hylant Group opens new office)(AlphaStaff Group Inc. partners with Zurich North America)
August 4, 2008... TPA acquires benefits firm MEMPHIS, Tenn.-Mutual Assurance Administrators Inc., a third-party administrator focusing on claims administration for self-funded benefit plans in Oklahoma City, has acquired employee benefits firm and TPA...

Oldest profession looks for coverage.(End Page)(escort services Victoria Independent Providers looks for insurance company)(Brief article)
August 4, 2008... The operators of a Victoria, British Columbia, escort service say they are looking for an insurer to provide their "sex trade workers'' with health and dental benefits. But the workers are independent contractors, which is making the...

Rebate laws cause stir; Statutes cited in broker compensation debate.(News)
August 4, 2008... Byline: SALLY ROBERTS Although contingent commissions and full disclosure took center stage at last month's producer compensation hearings held in New York, the state's anti-rebate statutes had a supporting role in the discussions and...

Express Scripts, CIGNA settle N.Y. drug lawsuit; PBM allegedly inflated prescription costs.(News)
August 4, 2008... Byline: KRISTIN GUNDERSON HUNT NEW YORK-Express Scripts Inc. and CIGNA Corp. have settled a lawsuit brought by New York state that accused the pharmacy benefit manager of inflating prescription drug costs for the state's largest employee...

On the web.
August 4, 2008... BI VIDEO Expert offers insights on business interruption Business Insurance interviews John Dempsey, managing partner of forensic accountant and consultant Dempsey Partners, on how to mitigate business interruption risks, which can...

Employers spared higher health fees; Mass. lawmakers pass legislation to help fund state health care program.(News)
August 4, 2008... Byline: JERRY GEISEL ***** Correction: Due to a production error, the last paragraph was incomplete in the Aug. 4 Business Insurance article, "Employers Spared Higher Health Fees.'' The final paragraph was: Gov. Patrick has proposed...

College retiree health care program plans to expand benefit offerings; Rise in retiree health care costs, flexibility of plans raises interest.(Benefits Management)
August 11, 2008... Byline: KRISTIN GUNDERSON HUNT A program designed to make retiree health care plans more affordable for colleges and universities intends to expand its offerings to early retirees in 2009 and perhaps even nonprofits in 2010, officials say....

Rising prices at pump help improve health.(Viewpoint essay)
August 11, 2008... Byline: Joanne Wojcik Which costs more today, a fill-up or a checkup? Depending on the kind of vehicle you drive, it could very well be the fill-up. In fact, when asked to name the single biggest issue facing them daily, regional...

'Patient capital' investments rev the economic engine.(Benefits Management)
August 11, 2008... Byline: Joanne Wojcik Besides funding pensions for retired government workers, many of the large public-sector defined benefit pension plans also serve as engines for economic growth. That's because most public pension funds invest a...

Revised law in Italy favors buyers; Ability to cancel policy penalty-free effectively kills long-term contracts.(International News)
August 11, 2008... Byline: MICHAEL BRADFORD MILAN, Italy-A change in Italian law that allows commercial policyholders to break long-term contracts-traditionally written for 10-years-has forced insurers and brokers to focus on service standards and not just...

CAFA decision plugs legal loophole; Tort reform advocates say 'mass action' ruling a victory for defendants.(News)
August 11, 2008... Byline: MARK A. HOFMANN CHICAGO-Tort reform advocates say a first-of-its-kind appeals court ruling that so-called "mass actions'' can be moved from a state court to a federal court has plugged a large loophole in the federal Class Action...

Siemens sues ex-execs in scandal; Insurers have yet to determine whether potentially huge claim is covered.(International News)(Case overview)
August 11, 2008... Byline: RICHARD MILLER MUNICH, Germany-Siemens A.G.'s recent decision to sue former executives linked to a corruption scandal adds yet another strand to an already complex and potentially expensive claim made against the company's...

Insurance official was inside man for Twin Towers high wire act.(End Page)(Barry Greenhouse)(Brief article)
August 11, 2008... It took an "inside man'' to pull off a high wire act more than 30 years ago. Barry Greenhouse, former assistant director of research with the New York State Insurance Department, offered his ID and access to his 82nd floor office at the...

Up close; Garrett Hanrahan.(Comings & Goings)(Brief article)
August 11, 2008... NEW JOB TITLE: Dallas-based chief executive officer of Global Aviation in North America for Willis Group Holdings Ltd. PREVIOUS POSITION: Executive vp of Aon Aviation in Dallas and Southwest regional managing director. VITAL...

Marsh turnaround plan starts to show through; Broker announces more job cuts, revamps placement process.(News)(Marsh & McLennan Cos. Inc.)
August 11, 2008... Byline: SALLY ROBERTS NEW YORK-Recovery efforts at Marsh Inc. appear to be well under way as Marsh & McLennan Cos. Inc. last week reported better-than-expected second-quarter results, driven by strong revenue and margin improvement at its...

Products & services.(Integro Ltd. introduces insurance)(Lexington Insurance Co. offers insurance program)(Risk Management Solutions Inc introduces interactive terrorism risk management system )
August 11, 2008... Integro policy covers hedge fund investors NEW YORK-Integro Ltd. has introduced insurance to protect institutional investors from hedge fund losses due to fraud. Hedge Shield covers institutional investors should hedge fund assets be...

Judge overturns verdict against Apollo; Reaction mixed on securities fraud ruling.(News)(Case overview)
August 11, 2008... Byline: DAVE LENCKUS PHOENIX-Securities fraud attorneys disagree about the potential ramifications of a federal judge's decision last week to overturn a pro-plaintiff jury verdict in a rare securities fraud case that went to trial. ...

Frozen pension plan sales could help employers.(Viewpoint essay)(Brief article)
August 11, 2008... SHOULD EMPLOYERS be allowed to sell their frozen defined benefit pension plans to financial services companies? As we report on page 1, this question is hypothetical in the United States following a Treasury Department ruling that federal...

Senate set to move on ADA reform measure; Widely supported bill would offer workers broader protections.(News)(Americans with Disabilities Act)(Law overview)
August 11, 2008... Byline: MARK A. HOFMANN WASHINGTON-The outlook for Senate legislation that would extend the coverage of the Americans with Disabilities Act remains bright despite the shrinking legislative calendar, according to Capitol Hill observers. ...

Soccer fan sues team over angst.(End Page)(Brief article)
August 11, 2008... Fans of Italian soccer champions Inter Milan like to talk trash. Inter Milan supporters displayed banners when Napoli came to town last October, poking fun at the southern Italian city's trash crisis and calling Naples the "sewer of...

ADA HIGHLIGHTS.(News)(Americans with Disabilities Act )(Brief article)
August 11, 2008... Highlights of the ADA Amendments Act of 2008, S. 3406, as introduced in the Senate: * Defines a person with a disability as one who has a physical or mental impairment that "substantially limits'' one or more of the major activities of the...

Health reimbursement arrangements still an appealing choice; A major advantage for employers: Such accounts can be established without adopting a high-deductible health plan.(Benefits Management)
August 11, 2008... Byline: KAREN PALLARITO A relative newcomer to the health benefits arena, health savings accounts have quickly become popular among employers but haven't curbed plan sponsors' use of health reimbursement arrangements. In fact, some...

ADA amendments merit prompt action.(Americans with Disabilities Act)(Viewpoint essay)
August 11, 2008... DESPITE THE RAPIDLY shrinking legislative calendar, Congress will still have time to enact a piece of critical employment-related legislation when lawmakers return from their August recess. That's the ADA Amendments Act, a version of which...

Workplace tantrum no bar to comp claim.(End Page)(Brief article)
August 11, 2008... A part-time United Parcel Service Inc. "unloader'' claimed he broke his hand while pumping himself up for his day's work by punching things. Even though the employer presented "credible evidence'' that Joseph Lause injured himself while...

Storm forecasters increase estimates; Early cyclone activity prompts move.(News)
August 11, 2008... Byline: Mark A. Hofmann Hurricane forecasters are increasing the number of hurricanes they believe will form during this year's Atlantic hurricane season. The forecasting team at Colorado State University said last week that it...

New Aon fee per policy riles buyers in Germany; Broker: Transparent charge defrays added costs.(International News)
August 11, 2008... Byline: RICHARD MILLER HAMBURG, Germany-Germany's commercial insurance buyers association has criticized a new annual e100 ($156) per policy fee being charged by Aon Jauch & Hubener GmbH, which the Hamburg-based broker has imposed to...

Rate cuts continue in 2nd quarter.(News)(Brief article)
August 11, 2008... Byline: JEFF CASALE A recent survey by the Risk & Insurance Management Society Inc. shows that it is still a buyer's market for commercial insurance, with single-digit declines in average premiums in the second quarter of 2008. The...

GM's D&O settlement partially covered; Automaker accused of improper accounting, overstating income.(News)(General Motors Corp.)
August 11, 2008... Byline: DAVE LENCKUS DETROIT-Automaker General Motors Corp. has some directors and officers liability insurance to cover its portion of a proposed $303 million securities fraud class action settlement. In its Aug. 7 10-Q filing for the...

Auto dealer RRG halts legal battle with Calif. Cost of protracted litigation reason for pullout.(News)
August 11, 2008... Byline: JERRY GEISEL SACRAMENTO, Calif.-A small Montana-domiciled risk retention group providing medical stop-loss coverage to California auto dealers is ending its legal battle with the California Department of Insurance and will stop...

IRS slams door on pension transfers; Administration unveils proposal to allow them.(News)
August 11, 2008... Byline: JUDY GREENWALD WASHINGTON-An Internal Revenue Service and Treasury Department ruling last week will stymie for now any effort by defined benefit pension plan sponsors to transfer their frozen plans to financial services firms, say...

Plaintiffs argue corrective disclosure triggered drop in company's stock price.(News)
August 11, 2008... Byline: Dave Lenckus The Apollo Group Inc. case centers on what is considered a corrective disclosure, or the revelation of either a company's misrepresentation or omission of information that would have been pertinent to investors. ...

Restructuring expected as AIG reports loss; Cost-cutting efforts, sale of some units may follow as credit market woes hurt insurer.(News)(Financial report)
August 11, 2008... Byline: ROBERTO CENICEROS NEW YORK-American International Group Inc. may divest several noncore businesses as it restructures to conserve capital, analysts predict following a dismal earnings announcement last week. The extent of the...

In brief.(News)(XL Capital Ltd. closing a capital-raising deal)(Alliant Insurance Services Inc. hiring team of property/casualty and employee benefit specialists from Wells Fargo Insurance Services)(Tower Group Inc. acquiring CastlePoint Holdings Ltd)
August 11, 2008... Calif. court strikes down noncompete agreements California law prohibits employee noncompete agreements unless the agreement involves the sale of a business, the California Supreme Court said last week. The opinion in Edwards vs. Arthur...

Error and omissions.(Errors and omissions)
August 11, 2008... Due to a production error, the last paragraph was incomplete in the Aug. 4 Business Insurance article, "Employers Spared Higher Health Fees.'' The final paragraph was: Gov. Patrick has proposed that employers be required to pass both tests...

Pension transfer framework issued by Treasury, IRS.(News)(Brief article)
August 11, 2008... Byline: Judy Greenwald While the Treasury Department and the Internal Revenue Service said last week that transferring frozen defined benefit plans to financial institutions is not permissible under current law, the Bush administration...

Public entities generally keep traditional pension plans; Cost and labor contracts are main reasons why adoption of defined contribution plans has lagged the private sector.(Benefits Management)
August 11, 2008... Byline: JOANNE WOJCIK Concerns about whether public entities will be able to meet their future pension obligations are prompting lawmakers nationwide to scrutinize government workers' retirement benefits, with some states legislating ways...

Corporate interest rises in funding benefits through captives; Compared with purchasing coverage in commercial markets, employers can save up to 10% on costs.(Benefits Management)
August 11, 2008... Byline: JERRY GEISEL The corporate drive to fund employee benefit risks of U.S. employees through captive insurance companies is slowly picking up steam. The advantages of captive benefit funding-chiefly cost savings and improved cash...

Workers laid low by Rx scam.(End Page)(Brief article)
August 11, 2008... If they weren't in pain before, they probably are now. More than 50 people-mostly governmental employees in Miami-were arrested last week in a health insurance scam dubbed "Operation Copay'' that involved the powerful prescription pain...