Business Insurance articles from June 2009

Business Insurance archives from June 2009

Foreclosures create new risks for banks.
June 1, 2009... Byline: ROBERTO CENICEROS Many U.S. banks are facing new liabilities as they begin to sell off inventories of foreclosed construction projects taken over from homebuilders who exited the market leaving behind uncompleted housing tracts....

Hard market for offshore rigs drives firms to self-insure.
June 1, 2009... Byline: ZACK PHILLIPS Some offshore energy firms renewing their windstorm cover in the Gulf of Mexico have opted to self-insure all or many of their facilities in the face of tough pricing and terms that insurers say are necessary to...

Tough economy brings the summertime blues.
June 1, 2009... Byline: Regis Coccia June 1 traditionally marks the start of the Atlantic hurricane season, which each year is monitored closely by the property insurance industry and risk-conscious travelers. Besides the startling realization that...

AIG to sell majority stake in reinsurer Transatlantic.
June 1, 2009... Byline: COLLEEN McCARTHY American International Group Inc.'s plan to sell most of its stake in reinsurer Transatlantic Holdings Inc. through a public stock offering is expected to be a positive development for both companies and marks...

Mighty mouse attempts to save Virginians from storms, taxes.(Brief article)
June 1, 2009... When the Virginia Tax Department needed to draw attention to a sales tax holiday on hurricane preparedness-related items, it turned to viral video and a superhero of sorts. In a YouTube video at www.youtube.com/watch?v=g12C6SlIoss,...

Errors & Omissions.
June 1, 2009... A story in the May 18 issue, "Vote on Aviation Liability Won't Secure Loss Caps,'' misstated details of a proposed compensation fund for aviation terrorism claims. Under the proposed structure, airlines would pay the first layer of a loss up to...

In Brief.(Workers' compensation law)(Retirement insurance)
June 1, 2009... Dinallo to resign as N.Y. regulator Eric Dinallo, superintendent of the New York Insurance Department since January 2007, will resign in July to become a visiting professor at New York University's Stern School of Business. Mr. Dinallo is...

Crisis, flu risks, medicare changes all add challenges to public entities.(Interview)
June 1, 2009... Public entity risk managers are dealing with several issues as the financial crisis unfolds and the threat of a flu pandemic lingers. Public Risk Management Assn. President-elect Ron Hayes, risk manager for the Calcasieu Parish School Board in...

A change in pressure; Public entities await action on FEMA aid.
June 1, 2009... Byline: DAVE LENCKUS Hurricane season arrives this week with no word from the Federal Emergency Management Agency on how or when it plans to reconcile inconsistent regulations that govern federal disaster relief for public entities that...

U.K. considers changes to civil litigation system.
June 1, 2009... Byline: SARAH VEYSEY Proposed changes in the way costs are imposed in civil litigation in the United Kingdom could lead to an increase in class action-style lawsuits, some legal experts say. The proposals also could result in less use...

Up Close Comings & Goings; MARYA PROPIS.(Lexington Insurance Co.)
June 1, 2009... NEW JOB TITLE: Boston-based vp of Lexington Insurance Co. and chief operating officer for Risk Specialists Cos. Inc. PREVIOUS POSITION: New York-based senior vp of AIU Holdings Inc.'s the Commercial Insurance Group's sales and marketing...

High court pick shows no slant on business.
June 1, 2009... Byline: JUDY GREENWALD Companies likely would find Sonia Sotomayor an even-handed judge of business issues if she joins the U.S. Supreme Court, observers say. Judge Sotomayor, whom President Obama nominated last week to fill the...

Airline says pilots wanted to be richer, not poorer.(Brief article)
June 1, 2009... Nine Continental Airlines pilots who apparently thought their pensions were in jeopardy allegedly decided to ditch their wedding vowssort of. Houston-based Continental filed a lawsuit in federal court May 20, alleging the pilots and their...

Workers skimp on care to save money: Study.
June 1, 2009... Byline: JERRY GEISEL The recession is leading some employees to cut back on their use of health care services, research shows. The National Business Group on Health surveyed more than 1,500 employees working at large companies and...

On the web.(Business Insurance)(Public Risk Management Asscciation has appointed Ron Hayes)(Directory of Public Entity Risk )(Brief article)
June 1, 2009... BI BLOGS Join an online conversation with editors You already rely on Business Insurance's editors for the industry information you need. Now you can get their unfiltered opinions and observations on the issues that matter most to you...

SONIA SOTOMAYOR HAS VARIED RECORD IN BUSINESS CASES.(Brief article)
June 1, 2009... Byline: Judy Greenwald Business-related cases in which U.S. Supreme Court nominee Sonia Sotomayor has been involved as both a federal district court and appeals court judge include: * In her 1995 opinion as a district court judge in...

Momentum builds on health reform; Leaders in Congress press for early vote on system overhaul.
June 15, 2009... Byline: JERRY GEISEL The drive to enact sweeping health care reform is about to kick into high gear. This week, at least one congressional panelthe Senate Health, Education, Labor and Pensions Committeeis set to begin debating a reform...

Shareholders vote down Max/IPC merger deal; Rejection opens door for Validus, other bidders.
June 15, 2009... Byline: COLLEEN McCARTHY Shareholders of IPC Holdings Ltd. last week voted against a planned merger with Max Capital Group Ltd., bucking management's recommendation and opening up the possibility of a hostile takeover by rival bidder...

Renewal, changes likely on block exemption.
June 15, 2009... Byline: MICHAEL BRADFORD Europe's Block Exemption Regulation as it applies to insurance pooling arrangements likely will be renewed, but it appears the section allowing cooperation on standard policy conditions will be allowed to expire,...

Reality checks: Contestants win benefits.(Brief article)
June 15, 2009... Does participating in a reality show based on seduction grant contestants the right be treated as employed workers entitled to fringe benefits such as overtime? According to a recent BBC report, a French court says reality show contestants...

Market Moves.(Galileo Weather Risk Management Advisors L.L.C)(Hiscox USA has opened a new office in Miami)
June 15, 2009... Galileo purchased from insurance company NEW YORKThe founders and principals of Galileo Weather Risk Management Advisors L.L.C. have purchased the company from the Hamilton, Bermuda-based White Mountains Insurance Group Ltd. As part of...

Redbird mad over fake tweets.(Brief article)
June 15, 2009... Twitter has everyone aflutter, particularly for celebrities who can be impersonated on the micro-blogging service. Tony La Russa, manager for the St. Louis Cardinals, found out firsthand just how easy it is to be impersonated. Someone...

Up Close Comings & Goings; DANA DRAGO.(Interview)
June 15, 2009... NEW JOB TITLE: Boston-based senior vp and general distribution manager for Liberty Mutual Insurance Co.'s Middle Market. PREVIOUS POSITION: Boston-based vice chairman of Consumer and Business Banking for Providence-based Citizens Financial....

Employers need to be involved with reform.(Brief article)
June 15, 2009... The rubber is about to hit the road in the drive to enact health care reform legislation. At least one congressional committee this week will begin debating and soon will vote on a health care reform bill. If the process seems fast,...

Patience is a virtue for health reform advocates.(Nonadmitted and Reinsurance Reform Act )(Brief article)
June 15, 2009... THE DECISION OF Senate leaders to devote their energies to health care reform for the next few weeks means many other critical issues, notably financial services regulatory reform, will be put on hold in that chamber. While delay on regulatory...

Web site tries to downgrade rating agencies.(Brief article)
June 15, 2009... It's been called a financial crisis, a credit crisis, a meltdown, or just a flat-out mess. With AAA-rated companies being crippled by debt and some dissolving completely, Jesper Andersen and Toby Segaran thought there had to be a better,...

Insurance reform delay not so bad: Observers; Congress' focus on health care reform may mean it can deliberate more thoughtfully.
June 15, 2009... Byline: MARK A. HOFMANN Even though health care reform has emerged as Congress' No. 1 issue over the near term, advocates of insurance regulatory reform aren't overly concerned that their issues will languish on the legislative back burner...

Global firms consider additional cover for overseas execs; Local regulations, increase in lawsuits trigger change.
June 15, 2009... Byline: ZACK PHILLIPS Risk managers for U.S.-based multinational companies with directors and officers in foreign countries increasingly are considering buying D&O liability insurance for individual countries, rather than relying on their...

IRS issues more guidance on COBRA premium subsidies; Elected officials, military reservists qualify for payments.(Consolidated Omnibus Budget Reconciliation Act)
June 15, 2009... Byline: JERRY GEISEL New guidance from the Internal Revenue Service answers more questions that have been raised about the federal COBRA premium subsidy. Under that subsidy, included as part of a broader economic stimulus bill...

Air France crash may drive up rates; Loss adds pressure to already firming aviation market.
June 15, 2009... Byline: ZACK PHILLIPS The fatal June 1 crash of an Air France flight may cause further price increases in the aviation insurance market, although it is too early to say for sure, according to observers. Air France Flight 447...

Maryland regulator set to consider compulsory broker pay disclosure; New York still mulling similar move one year after public hearings.
June 15, 2009... Byline: SALLY ROBERTS Maryland Insurance Commissioner Ralph S. Tyler last week said he is considering mandating producer compensation disclosure in the state and soon will invite interested parties to discuss the issue with him. The...

PUSH BEGINS.
June 15, 2009... Key issues for employers in health care reform legislation * Will employees be allowed to opt out of employer plans and into a public plan? * Will employers be mandated to offer health care coverage, and what requirements will...

Mixed opinions on XL/Berkshire agreement; Berkshire unit to back XL's Side A D&O liability policies.
June 15, 2009... Byline: ROBERTO CENICEROS XL Capital Ltd.'s announcement last week that Berkshire Hathaway Inc. will back its insurance policies protecting corporate boards and executives could fuel further doubts about XL's financial strength, some...

In Brief.
June 15, 2009... Hartford to raise funds; CEO Ayer will retire Hartford Financial Services Group Inc. said it plans to raise up to $750 million by periodically selling shares of its common stock. The insurer also formally announced it would receive $3.4...

Ozzy bites head off former bandmate.(Brief article)
June 15, 2009... Ozzy Osbourne isn't paranoid, he's just a little worried, or maybe just a little ticked off. Mr. Osbourne, front man for heavy metal band Black Sabbath and reality television star, sued former Black Sabbath guitarist and band mate Tony...

Retail health clinics may be a passing fad.
June 15, 2009... Byline: Joanne Wojcik As Joni Mitchell once sang, "You don't know what you've got till it's gone.'' I finally got the chance to visit a retail clinic in a neighborhood grocery store and now I'm learning they may be nothing more than a...

Proposed Amlin/Fortis acquisition welcomed; Move will help Fortis grow: Risk managers.(Fortis Corporate Insurance N.V)
June 15, 2009... Byline: ADRIAN LADBURY Dutch risk managers last week welcomed the proposed acquisition of Fortis Corporate Insurance N.V. by London-based Amlin P.L.C. The move will strengthen Amstelveen, Netherlands-based Fortis, which has a...

On the Web.
June 15, 2009... BI BLOGS Join an online discussion with our editors Now you can get Business Insurance's editors' unfiltered opinions and observations on the issues that matter most to you and join the conversation with comments of your own. Go to...

Now is the right time to establish ONI.(Brief article)
June 29, 2009... THE OBAMA ADMINISTRATION'S call for an Office of National Insurance within the Treasury Department couldn't have come at a better time. As we report on page 4, the administration's white paper on financial services regulatory reform really...

Place your bid for lunch with Buffett.(Warren Buffett)(Brief article)
June 29, 2009... People who'd like to chat with the Oracle of Omaha over steaks, burgers and ice cream sometime next year can bid to have lunch with Warren Buffett, the chairman and chief executive officer of Berkshire Hathaway Inc. Mr. Buffett holds an...

Up Close Comings & Goings; MARCIA BENSHOOF.(IMA Financial Group Inc.)
June 29, 2009... NEW JOB TITLE: President of IMA of Colorado, a Denver unit of Wichita, Kan.-based IMA Financial Group Inc. PREVIOUS POSITION: Chief business officer of Denver-based Pinnacol Assurance. GOALS FOR NEW POSITION: My goals are to advance...

Communicating changes requires delicate touch; Transparency is key when telling workers of benefits cuts.
June 29, 2009... Byline: LOUISE ESOLA As companies hurt by the recession turn to benefit and workforce cuts, experts say communicating harsh changes must be dealt with delicately and informatively to avoid hurting employee morale. Salary freezes,...

Audits of usage of health care benefits require time, money and follow-through.
June 29, 2009... Byline: Kristin Gunderson Hunt While employers are beginning to grasp the savings resulting from health care audits, they are trying to get a handle on their involvement in the auditing process. "Audits do take time and energy on...

Addition by subtraction; Employers turn to health care plan audits in drive to reduce costs.
June 29, 2009... Byline: KRISTIN GUNDERSON HUNT Benefit departments seeking to cut costs are looking within, and many are auditing their health care costs with hopes of finding immediate savings. "With the economy in the tailspin it's in right now,...

Mandated coverage of autism gains ground; Questions remain about regulations for new federal parity law.(Mental Health Benefits Parity and Addiction Equity Act)
June 29, 2009... Byline: JUDY GREENWALD Momentum is growing at the state level to mandate that group health plans offer coverage for autism, experts say. Legislation that would establish a federal autism mandate also has been introduced in Congress,...

Debate rages on over whether inoculations are to blame for autism spectrum disorders.(National Childhood Vaccine Injury Act of 1986)
June 29, 2009... Byline: Judy Greenwald It has been a long and bitter confrontation: On one side are the parents who are convinced their children's autism has been caused by inoculations; on the other are the vaccine manufacturers and others who contend...

"INSURANCE DEPARTMENT' SCAMMERS TARGETING AGENTS.(insurance agents regulations for preventing fraud and scams)(Brief article)
June 29, 2009... Being an imposter is nothing new, but posing as an Oklahoma Insurance Department employee is certainly out of the norm. Oklahoma Insurance Commissioner Kim Holland last week warned insurance producers and adjusters to be on the lookout for...

Reviews mixed on regulatory overhaul plan.
June 29, 2009... Byline: MARK A. HOFMANN Supporters of wide-ranging insurance regulatory reform have cause for hope and concern as Congress prepares to consider the Obama administration's plan to overhaul regulation of the financial services industry. ...

Willis to raise cash with Gras Savoye stock sale; But broker still aims to take majority stake in French partner.
June 29, 2009... Byline: SALLY ROBERTS Willis Group Holdings Ltd.'s decision to try to sell part of its stake in Gras Savoye & Cie could help the brokerage avoid a potential liquidity issue should it be obligated under its agreement to purchase the...

In Brief.
June 29, 2009... Panel OKs 401(k) fees bill, adds DB funding relief Legislation the House Education and Labor Committee approved last week to improve disclosure of fees and other information to 401(k) plan participants became a vehicle for temporary relief...

Password rule for job applicants gets backspaced.(Brief article)
June 29, 2009... People applying for jobs with Bozeman, Mont., no longer have to provide their Internet user names and passwords when seeking employment with the city. Faced with a major outcry, the city has formally eliminated a hiring policy that had...

Health reform effort picks up momentum; Revised bill cuts cost to $1 trillion, ensures near-universal cover.
June 29, 2009... Byline: JERRY GEISEL Congressional progress in drafting health care reform legislation has been much slower than top lawmakers predicted, but the pace of activity soon could pick up. Only a few weeks ago, Sen. Max Baucus, D-Mont., the...