Business Insurance articles from May 2009

Business Insurance archives from May 2009

Workplace violence prevention important amid layoffs.
May 4, 2009... Byline: COLLEEN MCCARTHY Recent high-profile incidents of violence and the recession are fueling worries about workplace violence, and an increasing number of organizations are assessing their facilities and taking additional steps to...

Employee furloughs can complicate benefits offerings; More employers eye off-work periods as way to cut costs.
May 4, 2009... Byline: JUDY GREENWALD Employers that furlough employees to avoid layoffs during the recession face several decisions with respect to their benefit plans, observers say. A growing number of employers already have introduced furloughs...

Furloughs may complicate admin for savings plans.
May 4, 2009... Byline: Judy Greenwald While health care coverage is the primary benefit affected when employers furlough employees, other benefits also may be changed, observers say. One of those areas is 401(k) plans, said Susan K. Hoffman, an...

Questionable claims on rise.(National Insurance Crime Bureau)(Report)(Brief article)
May 4, 2009... Byline: JEFF CASALE A recent report by the National Insurance Crime Bureau shows the number of questionable claims is up during the first quarter of 2009 compared with the first quarter of 2008, providing a snapshot of what claims analysts...

Management at trucking firm using ERM to grow and diversify company.(R.B. Matheson Trucking Inc.)(enterprise risk management)
May 4, 2009... Byline: Mark A. Hofmann Implementing enterprise risk management is part of the growth strategy at Matheson Inc., according to Deborah M. Luthi, the trucking company's director-enterprise risk management. Sacramento, Calif.-based...

Ship's cook stewing over pirate attacks.(case between cook Richard E. Hicks against Maersk Line for negligence in protecting him)(Brief article)
May 4, 2009... Ships' cooks have long played leading roles in adventures on the high seas. In Robert Louis Stevenson's classic pirates tale "Treasure Island'' the pirates' ringleader, Long John Silver, was the ship's cook before leading a mutiny. More...

Swiss worker says Facebook brings job to unfriendly end.(Brief article)
May 4, 2009... Many employees worry they will be fired for toiling on Facebook during work hours, however, last week one Swiss insurance worker found she could be fired for using the social networking Web site while off sick. The Nationale Suisse...

Flight of fancy chills onlookers.(Brief article)
May 4, 2009... Even though it's said a picture's worth a thousand words, the image of an Air Force One look-alike being pursued by an F-16 fighter jet over lower Manhattan last week can be summed up in one: Terrifying. And the reason for that image may...

KEVIN J. TIERNEY.(appointed by Disability Reinsurance Management Services Inc)(Brief article)
May 4, 2009... NEW JOB TITLE: Westbrook, Maine-based vp and general counsel for Westbrook-based Disability Reinsurance Management Services Inc. PREVIOUS POSITION: Founder of the Falmouth, Maine-based Law Offices of Kevin J. Tierney, Esq., a private...

Hoops star makes play to assist kidney patients.(Alonzo Mourning)(Brief article)
May 4, 2009... Florida lawmakers are going up strong with a measure named for a former National Basketball Assn. star that would provide greater access to medical insurance for kidney disease patients. According to news reports, on Monday the Florida...

School risk managers consider options as concerns over swine flu virus grow.
May 4, 2009... Byline: ZACK PHILLIPS Late last week, Fort Worth Independent School District in Fort Worth, Texas, became the first school district in the U.S. to close all its schools due to concern over the spread of H1N1 flu. Risk managers say...

SENTENCES HANDED DOWN.(insurance fraud case against employees of General Re Corp. and American International Group Inc.)(Brief article)
May 4, 2009... Five former executives of General Re Corp. and American International Group Inc. have been sentenced for their roles in a fraudulent reinsurance deal in 2000. * Ronald E. Ferguson, former Gen Re chief executive officer, two years in prison...

On the Web.
May 4, 2009... RISK MANAGER OF THE YEAR Online package features 2009 honorees Business Insurance and the Risk & Insurance Management Society Inc. jointly presented the prestigious Risk Manager of the Year award and inducted three new members into the...

Risk prevention, mitigation key with product recalls.
May 4, 2009... Byline: MARK A. HOFMANN With product recalls on the rise, there are steps risk managers can take to protect their companies, experts say. Risk prevention and risk mitigation measures are key aspects of managing the risk, but risk...

Now's the time to re-evaluate D&O coverage.(Directors' and officers' liability insurance)
May 4, 2009... Byline: ROBERTO CENICEROS In today's economic environment, policyholders need to investigate more thoroughly the financial stability of their directors and officers liability insurers, experts say. Policyholders also need to ensure...

Online forum addresses mental parity.
May 4, 2009... Byline: JOANNE WOJCIK The challenges the new federal mental health benefit parity law will pose for employers may be considerable, but they are not insurmountable, according to experts who spoke during an online executive forum hosted by...

Affordable benefits in best interests of all.(Brief article)
May 4, 2009... The efforts of Chrysler L.L.C. and perhaps other big auto manufacturers to survive should serve as a cautionary tale to other employers and their organized workforces. Last week, amid massive losses, dwindling cash and poor sales, Chrysler...

Interest in enterprise risk management is growing.(Conference news)
May 4, 2009... Byline: MARK A. HOFMANN Enterprise risk management remains the Holy Grail of risk management. Interest in the discipline is on the rise, as was demonstrated as attendees at the recent Risk & Insurance Management Society Inc.'s annual...

Economy tests Spain's risk managers; Need to balance coverages, cost cuts presents challenge.
May 4, 2009... Byline: ADRIAN LADBURY Facing some of the toughest economic conditions in Europe, risk managers in Spain are struggling to cut costs while maintaining sufficient coverage for their exposures. With gross domestic product shrinking by...

Medical costs pressure Calif. work comp rates; Rating bureau wants 23.7% rate increase; state wants answers.
May 4, 2009... Byline: ROBERTO CENICEROS While California's insurance commissioner contemplates by how much to raise workers compensation rates, insured and self-insured employers in the state face rising claims costs. Medical cost increases,...

Ex-Grace execs dropped from asbestos litigation; Other former officials face criminal charges over asbestos exposure.
May 4, 2009... Byline: SALLY ROBERTS Criminal charges were dropped last week against two of five former W.R. Grace & Co. executives on trial in Montana accused of trying to conceal the health risks associated with mining asbestos-laced vermiculite in the...

Health care reform effort gearing up; Sen. Baucus: Many approaches under consideration, bill likely in June.
May 4, 2009... Byline: JERRY GEISEL The drive to draft and enact comprehensive health care reform legislation is on track, the chairman of the Senate Finance Committee said. "We are on schedule,'' Sen. Max Baucus, D-Mont., said last week, adding...

Former Gen Re exec sentenced to prison; Graham gets one-year term over finite fraud.
May 4, 2009... Byline: COLLEEN McCARTHY The relatively light prison terms imposed by a federal judge on five former executives from General Re Corp. and American International Group Inc. for their role in a sham reinsurance deal are not likely to be...

Bankruptcy may hit Chrysler retiree benefits.
May 4, 2009... Byline: JERRY GEISEL Last week's agreement between Chrysler L.L.C. and the United Auto Workers union on the funding of a retiree health care trust will allow the company to preserve billions of dollars in badly needed cash, but could mean...

In Brief.
May 4, 2009... Swiss Re cat bond covers storms, quakes Swiss Reinsurance Co. has placed a $60 million catastrophe bond to cover the insurer against potential losses from North Atlantic hurricanes and California earthquakes. The bond was issued by Cayman...

Use common sense to stay free from flu.
May 4, 2009... Byline: Regis Coccia Pandemic was a much-talked about risk two years ago, when avian flu appeared to be on the rise, but then it largely fell off the public radar. Now, with the recent outbreak of swine flu, the threat of a pandemic is...

Flu fears trigger crisis response plans; Risk managers work to keep organizations safe and informed.
May 4, 2009... Byline: ZACK PHILLIPS and SARAH VEYSEY Risk managers around the globe are working to reduce the risk to their organizations of a possible influenza pandemic by doing everything from offering basic advice on avoiding infection to ensuring...

Flu outbreak highlights need for crisis planning.(Brief article)
May 4, 2009... THE THREAT OF PANDEMIC has the world's attention, as we report beginning on page 1. An outbreak of H1N1 flu that began recently in Mexico is making its way around the world, with hundreds of confirmed cases and at least nine deathsand...

Experts urge calm, say firms must assess workforce, supply risk.
May 4, 2009... Byline: MARK A. HOFMANN As fears continue to grow about the outbreak of swine flu, being prepared and avoiding panic are two of the most important steps risk managers can take, according to experts. Contingency plans need to be...

Market Moves.(Key & Piskuran Insurance Agency L.L.C)(briefs)
May 4, 2009... Best affirms Ironshore credit ratings HAMILTON, BermudaA.M. Best Co. has affirmed the credit ratings of Bermuda-based insurer Ironshore Inc., citing its acquisition of new management personnel and diversification into lines of business...

Be cautious when choosing new insurers, experts say.
May 4, 2009... Byline: Zack Phillips Risk managers considering changing insurers should consider a few potential pitfalls before making a switch, observers say. The financial troubles of American International Group Inc. and other insurers provide...

GEICO buyer wins drawing.(GEICO Insurance Co)(Conference notes)
May 4, 2009... Timothy Gander, risk manager at GEICO Insurance Co. in Washington, is the winner of a drawing held by Business Insurance during the recent Risk & Insurance Management Society Inc. 2009 Annual Conference & Exhibition in Orlando, Fla. Attendees...

a TIGHTER rein; Risk managers seeking lower prices from vendors during recession.
May 4, 2009... Byline: Roberto Ceniceros As the recession continues to bite, risk managers are trying to rein in their costs by asking a wide range of vendors-from medical service providers to insurers-to cut their prices. Other ongoing risk...

BI accepting nominations for European risk manager award.
May 4, 2009... Business Insurance is accepting nominations for the 2009 European Risk Manager of the Year award. The annual award is intended to recognize excellence in risk management at a Europebased organization, and 2009 will mark the third such...

Drywall disputes trigger lawsuits.
May 11, 2009... Byline: JEFF CASALE At least a dozen U.S. states and the District of Columbia have reported several hundred homes built with tainted drywall imported from China. As more owners of those properties come home to the smell of rotten eggs, the...

Wells Fargo latest firm to freeze cash balance pension plan; Bank joins exodus from defined benefits by large employers.
May 11, 2009... Byline: JERRY GEISEL Banking giant Wells Fargo & Co. is freezing its cash balance pension plan, as big employers accelerate their move away from cash balance and other defined benefit plans. Effective July 1, Wells Fargo employees no...

Tax plan seen affecting P/C industry, but specifics unclear.(property/casualty)
May 11, 2009... Byline: COLLEEN McCARTHY The Obama administration's proposal to curb corporate tax breaks for U.S.-based multinationals is expected to affect the property/casualty insurance industry, but observers say the severity of the impact remains...

Colleges' insurance program developed to cover pandemics.
May 11, 2009... Byline: Mark A. Hofmann The church-affiliated colleges served by the Chicago-based Educational and Institutional Insurance Administrators Inc. had a problem. One of the colleges, Ferrum College in Ferrum, Va., had been approached by...

Liability policies vary on coverage provisions for claims related to H1N1 virus: Experts.(workers compensation rules)
May 11, 2009... Byline: Mark A. Hofmann Business interruption coverage questions aren't the only insurance-related issues likely to arise as the result of a pandemic. General liability, workers compensation, and directors and officers liability policies...

Think about future before freezing plans.(Wells Fargo and Co.)(Brief article)
May 11, 2009... HARDLY A WEEK goes by without an announcement from another employer that it is freezing its defined benefit pension plans. Last week, Wells Fargo & Co., one of the nation's largest banks, said it would freeze its cash balance plan effective...

Stable-value fund protection can be provided in 3 ways.(Brief article)
May 11, 2009... Byline: Judy Greenwald Stable-value investment funds, which are funds invested in a fixed-income portfolio, account for more than one-third of assets in defined contribution plans. Financial institutions, including banks and insurers,...

The real comp fraudster of Orange County.(Devon Lynn Kile and Michael Vincent Petronella)(Brief article)
May 11, 2009... Instead of a Gucci-clad role in the "The Real Housewives of Orange County,'' a woman accused in a $38 million insurance premium scam could end up wearing a prison jumpsuit. Orange County, Calif., authorities recently arrested Devon Lynn...

Copay waiver programs cut health costs, improve productivity.
May 11, 2009... Byline: Louise Kertesz John Miall was the risk manager for the city of Asheville, N.C., in 1998 when it launched "a collaborative effort that engaged physicians, pharmacists, patient educators, employers and patients'' to try to reduce the...

Buyers expected to face tough fight on flu claims; Lack of physical loss would likely thwart interruption claims.
May 11, 2009... Byline: MARK A. HOFMANN and SARAH VEYSEY The number of H1N1 virus cases rose last week amid continuing worries about a possible pandemic, and risk managers may have another reason for concern: difficulty getting coverage for some related...

High court adds clarity with Superfund ruling.(Burlington Northern and Santa Fe Railway Co. and Shell Oil Co. into oil spill cases)(Brief article)
May 11, 2009... DETERMINING WHO is responsible for what portion of the cleanup costs at contaminated sites covered by the Comprehensive Environmental Response, Compensation and Liability Actbetter known as Superfundhas been a vexing question for nearly three...

High court rules for Shell in Superfund case; Ruling limits ability of government bodies to win cleanup costs.(Comprehensive Environmental Response, Compensation, and Liability Act of 1980)
May 11, 2009... Byline: SALLY ROBERTS In what environmental attorneys are calling a landmark decision, the Supreme Court last week limited the government's ability to recoup hazardous waste cleanup costs from potentially responsible parties under the...

Economic problems put brakes on Rx copay waiver trend; Senior management wait for more evidence of health care savings.
May 11, 2009... Byline: LOUISE KERTESZ Employers that have taken the same trail as pioneers in Asheville, N.C., and at Pitney Bowes Inc. by reducing or waiving prescription drug copayments for some conditions remain outside the mainstream, experts say....

Complex processes employed to identify emerging risks Experts develop ways to see evolving threats before losses hit.(Enterprise Risk Management Symposium)(Discussion)
May 11, 2009... Byline: RODD ZOLKOS Signs of emerging risks typically exist well before losses occur, according to several enterprise risk management experts. The trick is to recognize those signs. Speaking at the recent 2009 Enterprise Risk...

XL adapts to changes.(XL Capital Ltd.)(dialogue with David B. Duclos)(Interview)
May 11, 2009... XL Capital Ltd. is emerging from a difficult past 12 months, reflected in its financial results and cost-cutting measures. Amid write-downs on investments, XL in 2008 commenced a staff reduction of 10%. For the first quarter of 2009, XL's...

Managers looks for alternatives to AIG for wrap providers.(American International Group Inc.'s 401K plans services)
May 11, 2009... Byline: JUDY GREENWALD Stable-value fund managers have been trying to find wrap insurance providers other than American International Group Inc., which has been a major factor in the market, observers say. Observers say AIG has been...

Employers fired up over new reality show.(Brief article)
May 11, 2009... Getting laid off is sufficiently stressful all by itself, but some people reportedly will have the added pain of getting the ax on national television. Fox Broadcasting Co. and production company Endemol USA, both in Los Angeles, are...

AIG reports loss, drop in P/C writings.(property/casualty)(American International Group Inc. revenue report)(Financial report)
May 11, 2009... Byline: JUDY GREENWALD NEW YORKAmerican International Group Inc. last week reported a 17.5% first-quarter drop in net premium volume at its general insurance operations, which analysts say is an indication the franchise's value is eroding....

Wacky warnings panned by critics.(Brief article)
May 11, 2009... Would you use a portable toilet seat that hangs off a trailer hitch or, more to the point, would you use such a device if the vehicle happened to be moving? Odds are your answer to the second part of the question would be a resounding...

Chrysler bankruptcy sparks comp concern.(Michigan Self Insurer's Security Fund )
May 11, 2009... Byline: ROBERTO CENICEROS Michigan's workers compensation guaranty fund for self-insured employers would be exhausted if Chrysler L.L.C. reneges on its pledge to keep paying workers comp claims despite its Chapter 11 bankruptcy filing,...

In Brief.(Berkshire Hathaway Inc. reports revenue growth)(workers compensation laws in Florida)(Cincinnati Bell Inc. stops 401K plans)(Financial report)
May 11, 2009... Berkshire reports $1.53 billion 1Q loss Berkshire Hathaway Inc. last week reported it lost $1.53 billion in the first quarter of 2009, due mainly to losses related to its investment in ConocoPhillips Co. The first-quarter loss compares with...

Insurer executives rank economy as top worry; Munich Re survey reveals big change in main concerns.(Survey)
May 11, 2009... Byline: JUDY GREENWALD Insurance industry executives' top worry is the economy, according to a Munich Reinsurance America Inc. survey released last week. Eighty-five percent of the 40 respondents cited poor economic conditions as...

Product & Services.(briefs)(Mercer L.L.C)(http://www.mercer .com/h1n1)(Austin and Stanovich Risk Managers L.L.C.)(http://www.austin stanovich.com/library.htm.)
May 11, 2009... Mercer launches site about H1N1 flu issues NEW YORKMercer L.L.C. has launched an online resource to help organizations prepare for a potential global pandemic of the H1N1 flu virus. The Web site, http://www.mercer .com/h1n1, offers...

On the Web.(Brief article)
May 11, 2009... BI Video Find out all the RIMS 2009 buzz In the latest In Focus video, Business Insurance asked risk managers and exhibitors what was keeping them up at night. Go to www.businessinsurance. com/video. Watch Maurice R. Greenberg's...

ERM conference attracts 400 to Chicago.
May 11, 2009... Byline: Rodd Zolkos The 2009 Enterprise Risk Management Symposium drew more than 400 attendees to Chicago. The April 29-May 1 symposium, held at the Sheraton Chicago Hotel & Towers, explored topics ranging from spotting emerging risks...

Models showed financial risks, but execs ignored warnings: Experts.
May 11, 2009... Byline: RODD ZOLKOS Financial market turmoil of the past 18 months and its effect on companies of all types has left many wondering why risk models failed to predict the various events. But, according to some enterprise risk management...

Switzerland may restrict broker pay; Measure would bar insurers from paying commissions to intermediaries.(Insurance Contract Act)
May 11, 2009... Byline: MICHAEL BRADFORD Swiss risk managers are lining up with their insurance brokers to oppose potential changes to Switzerland's Insurance Contract Act that would alter the way intermediaries are compensated. The Swiss Financial...

Captives to escape haven crackdown.
May 11, 2009... Byline: RODD ZOLKOS The Obama administration went on record last week with plans to crack down on offshore operations of U.S. corporations operating in so-called tax havens, though the proposal was light on specifics. While many sought...

Where is the best place to work in insurance?
May 11, 2009... Byline: Rodd Zolkos So you think your company's a pretty good place to work. Do you think it's one of the best places to work in the insurance business? Do you want to find out? We'll make it easy for you. Go to...

Car insurer will cover "Passenger' as driver.(Swiftcover.com)(Brief article)
May 18, 2009... Iggy Pop, known as the Godfather of Punk with a rock `n' roll career that began in the 1960s, is finding fresh success as an insurance salesman for AXA U.K. P.L.C.'s Swiftcover.com. "Get a Life!'' is the mantra of the online auto insurer's...

Market Moves.(Inter-Atlantic Financial Inc acquires Patriot Risk Management Inc)
May 18, 2009... Inter-Atlantic, Patriot Risk agree to stock transaction FORT LAUDERDALE, Fla.Special-purpose acquisition company Inter-Atlantic Financial Inc. has reached an agreement to acquire the capital stock of Patriot Risk Management Inc., which...

More Spanish companies adopt ERM amid crisis.(Enterprise risk management)(Conference news)
May 18, 2009... Byline: ADRIAN LADBURY Enterprise risk management has risen sharply higher on the board of directors' agenda at Spanish companies, leading practitioners told the annual Spanish risk management conference. Speakers and delegates at the...

Experts predict uptick in pollution prosecutions; W.R. Grace trial loss likely won't dampen enforcement efforts.
May 18, 2009... Byline: SALLY ROBERTS Despite the Department of Justice losing one of the most significant environmental crimes trials it has ever prosecuted, businesses can expect more civil and criminal environmental enforcement activity from the...

Health groups pledge to lower care costs.
May 18, 2009... Byline: JOANNE WOJCIK Viewing it as more of a political gesture than a concrete promise, most economists and members of the employer community remain dubious of the letter sent to President Obama last week by a consortium of health care...

U.S. trade sanctions require exclusion: attorney to AIMU.
May 18, 2009... Byline: Zack Phillips Insurers writing global policies for U.S.-based companies should include a broad exclusion for transactions involving entities or countries that are subject to U.S. trade sanctions or risk violating federal law,...

Europe to stress test large insurers in 2010; Buyers welcome move to examine financial stability.
May 25, 2009... Byline: MICHAEL BRADFORD Europe's largest insurers and reinsurers will undergo a stress test next year that will give regulators and buyers a feel for their financial stability, but it will not determine the claims-paying wherewithal or...