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New headlines added throughout the day, so stop back for updates on key rulings and more. By LexisNexis Insurance Center Staff HARTFORD Conn. – (AP) A judge has rejected requests to overturn the convictions of former insurance executives in a scheme to manipulate financial statements of the world's largest insurance company. Four former General Re Corp executives and a former American International Group Inc. executive were convicted of conspiracy, securities fraud, mail fraud and making false SEC statements.
By LexisNexis Insurance Center Staff WASHINGTON – (AP) A poorly run Pentagon program for providing workman's compensation for civilian employees in Iraq and Afghanistan has allowed defense contractors and insurance companies to gouge American taxpayers, a House oversight committee said May 15. A House committee report says insurance companies alone have pocketed $600 million in excessive profits over the past five years.
By LexisNexis Insurance Center Staff CHENGDU, China – (Business Insurance) The earthquake that struck parts of China’s Sichuan province earlier this week could result in the largest insured losses in China’s history, Newark, Calif.-based catastrophe modeler Risk Management Solutions Inc. said May 14. RMS predicted that total property damage in thte area is likely to range between $10
By LexisNexis Insurance Center Staff NEW YORK – (Reuters) American International Group Inc. Chairman Robert Willumstad said May 14 the global insurance giant’s directors stand behind Chief Executive Officer Martin Sullivan, fending off concerns raised by investors frustrated by two quarters of record losses. Willumstad also denied that comments expressing concerns about management included in a
By LexisNexis Insurance Center Staff MIAMI – (Reuters) A Florida court on May 14 reaffirmed the state’s ban on Allstate Corp. issuing new insurance policies in the state and denied the insurer a rehearing in the case. Florida’s insurance commissioner said the First District Court of Appeal lifted a stay on the suspension of the license that had been in effect while Allstate appealed the s
By LexisNexis Insurance Center Staff WASHINGTON – (Business Insurance) The maximum contributions that can be made to health savings accounts will increase next year, the Internal Revenue Service said May 13. In addition, the minimum deductible imposed on health insurance plans linked to HSAs and the maximum out-of-pocket expenses that employees can be required to pay also will rise, the IRS said.
By LexisNexis Insurance Center Staff NEW YORK – (Business Insurance) While increased federal insurance regulation is “inevitable,” the chances of legislation creating an optional federal charter for insurers are slim in the near term, according to a report Fitch Ratings released May 13. Fitch says “continued strong opposition from several influential constituencies, election-year uncertainties and continued divisiveness in Washingto
By LexisNexis Insurance Center Staff WASHINGTON – (AP) Companies working on Iraq reconstruction have been accused of padding their profits through an insurance scam, leading to a criminal probe and hurried changes in the way many contracts are handled by the U.S. Army, according to internal military documents obtained by The Associated Press. Continue reading >>
By LexisNexis Insurance Center Staff TALLAHASSEE Fla. – (AP) Two major investment firms will advise Florida on financing its hurricane catastrophe insurance fund although Gov. Charlie Crist tried to exclude them May 12.
Crist wanted to keep Lehman Brothers and J.P. Morgan from joining the "cat fund" i
By LexisNexis Insurance Center Staff LAS VEGAS – (AP) Casino owner Pinnacle Entertainment Inc. has settled a lawsuit with two insurance companies over Hurricane Katrina damage. Allianz Global Risks U.S. Insurance Co. agreed to pay $48 million on top of $5 million it already paid to Pinnacle to satisfy a $50 million policy, according to documents filed May 12 with the Securities and Exchange Commissio
By LexisNexis Insurance Center Staff WASHINGTON – (AP) The Senate agreed May 12 to write off and hand over to taxpayers more than $17 billion in debt that a FEMA flood insurance program accumulated after being devastated by Katrina and other 2005 hurricanes. The bill to extend the National Flood Insurance Program for five years also includes other measures. Continue reading >>
By LexisNexis Insurance Center Staff Our Web Interface Team will be in Center City, Philadelphia, in the first week of June to test the legal Web centers. We are looking for your feedback on the current centers and interested in learning how we can make improve your experience moving forward.
If you would like to share your views and participate i
By LexisNexis Insurance Center Staff LAKELAND, Fla. – (Business Insurance) The workers’ compensation exclusive remedy rule bars a lawsuit by the parents of a 16-year-old sexually assaulted by the manager of a retail store where their daughter worked, Florida’s Second District Court of Appeal ruled May 9. Doe v. Footstar Corp. alleged the manager sexually assaulted the girl in the course of his employment.
By LexisNexis Insurance Center Staff BOSTON – Insurance Commissioner Nonnie S. Burnes on May 8 denied the FAIR Plan’s request for a 25% increase in coastal homeowners’ insurance rates, bringing to a close a rate proceeding before the Division of Insurance that began in March 2007. The Commissioner’s decision prevents hikes in homeowners’ insurance premiums for FAIR Plan p
By LexisNexis Insurance Center Staff OAKLAND, Calif. – (Business Insurance) California’s Division of Workers’ Compensation on May 9 proposed to increase permanent disability benefits by an average of 16 percent as part of changes to the state’s permanent disability rating schedule. Workers comp reforms required the disability rating schedule to be based on empirical data that ties w
By LexisNexis Insurance Center Staff ATLANTA – (Business Insurance) Small employers purchasing high-deductible health insurance plans linked to health savings accounts and insurers offering those plans will receive tax breaks under legislation signed into law May 7 by Georgia Gov. Sonny Perdue. Under the measure, an employer will receive a $250 annual tax credit for each employee enrolled in an HSA p
By LexisNexis Insurance Center Staff WASHINGTON – (Business Insurance) The Senate has overwhelmingly rejected an amendment that would expand the National Flood Insurance Program to cover windstorm as well as flood damage. The 74-to-19 vote came late May 7 during debate on legislation that would extend the NFIP beyond September, when it is slated to expire unless reauthorized. Continue reading >>
By LexisNexis Insurance Center Staff NEW YORK – (Reuters) The Starr Foundation, controlled by former American International Group Inc. Chief Executive Maurice R. Greenberg, has sued the insurer, claiming it misrepresented its exposure to credit default swaps. The lawsuit, filed May 7 in New York State Supreme Court in Manhattan, alleges fraud and seeks at least $300 million in damages.
By LexisNexis Insurance Center Staff WASHINGTON – (AP) Call it Obamacare or call it Clintoncare. But don't call it "socialized medicine." And don't think that the health care systems that Barack Obama and Hillary Clinton have promised to put into effect if they get elected would be anything like the universal health coverage offered in Great Britain or Canada. Continue reading >>
By LexisNexis Insurance Center Staff Meckler Bulger & Tilson (MBT) has joined an exclusive new LexisNexis insurance content development initiative: the LexisNexis Expert Content Provider Program for Insurance. The purpose of the program is to gather an elite group of thought leaders in the practice of insurance law to develop c
By LexisNexis Insurance Center Staff COLUMBIA S.C. – (AP) The South Carolina Senate gave approval May 7 to a 50-cent per pack increase to the state's cigarette tax, setting aside the new money for health care. Nearly all the money would be spent on expanding the state's Medicaid program and creating a voucher system for lowest-income residents to get private health insurance. Continue reading >>
By LexisNexis Insurance Center Staff WASHINGTON – (AP) Agents selling private health insurance plans to the elderly and disabled would be barred from cold-calling, door-to-door solicitations and pitching products outside hospital waiting rooms or pharmacies, under a federal rule proposed May 8.The rule is designed to make it harder to pressure Medicare beneficiaries into signing for insurance they do
By LexisNexis Insurance Center Staff HARRISBURG, Pa. – (U.S. Newswire) Acting Insurance Commissioner Joel Ario on May 8 announced a 40-state settlement with Conseco Inc., which was necessary due to a pattern of consumer harm in the company's long-term care insurance business. The settlement concludes a multi-state market conduct examination led by Pennsylvania, Illinois, Indiana, Texas and F
By LexisNexis Insurance Center Staff HARLEYSVILLE, Pa. -- Theodore A. Majewski has been named president and chief operating officer of Harleysville Life Insurance Company. In this new expanded role, Majewski also will continue in his leadership of Harleysville Insurance’s personal lines operations, a role he has held since 2003.
“I am
By LexisNexis Insurance Center Staff HAMILTON, Bermuda -- Argo Group International Holdings Ltd. on May 5 announced that Jay S. Bullock will join Argo Group as chief financial officer.
Bullock, 43, will be based in Bermuda and will report directly to Argo Group president and chief executive officer Mark E. Watson III. Bullock’s appointment w
By LexisNexis Insurance Center Staff RICHMOND, Va. -- Markel Corporation on April 30 announced that its Board of Directors has elected Anthony F. Markel as Vice Chairman and Paul W. Springman as President and Chief Operating Officer effective May 1, 2008.
Markel has been asso
By LexisNexis Insurance Center Staff NEW YORK -- QBE on May 1 announced that it has completed its previously announced acquisition of North Pointe Holdings Corporation, a Southfield, Michigan based property and casualty insurance group.
This acquisition represents another significant event for QBE and will furth
By LexisNexis Insurance Center Staff TAMPA, Fla. -- Sagicor USA Inc. has appointed Rick D. Miller to the position of Sales Director - East Division of Sagicor Life Insurance Company. Miller will lead the growth and development of Sagicor Life Sales Division for the Eastern region of the United States. He will report directly to the Sagicor Life Insurance's Divisional General Manager, George Estock
By LexisNexis Insurance Center Staff GUANGZHOU, China -- CNinsure Inc. on May 5 announced the signing of definitive agreement to acquire 60% equity interests of Guangxi Xingfu Insurance Agency Co., Ltd., a leading insurance agency based in Guangxi Province. The acquisition also marks CNinsure's footprint in the 13th province.
Continue reading >>
By LexisNexis Insurance Center Staff NEW YORK -- Gary Hirschkron has been appointed President of AXA Partners, the life insurance business unit of AXA Distributors, LLC. based in Farmington, CT. The announcement was made May 5 by Jamie Shepherdson, Executive Vice President of AXA Equitable Life Insurance Company and President of AXA Distributors, LLC., the company's proprietary life insurance and annuity wholesale distribution organi
By LexisNexis Insurance Center Staff MINNEAPOLIS, Minn. -- Ivan Gilreath has been named president of ING Employee Benefits effective June 1, replacing Curt Olson, who was recently named chief executive officer for ING Life Korea, according to an announcement by Catherine Smith, CEO of ING's U.S.-based Life insurance businesses. Gilreath has been chief operating officer for ING Employee Benefits since joining the company in 2006.
By LexisNexis Insurance Center Staff HARTFORD, Conn. – (Business Insurance) Legislation given final approval May 6 by the Connecticut Legislature would open up the health insurance program covering state employees to Connecticut municipalities, nonprofit organizations and employers in the state with fewer than 50 employees. The Senate approved the legislation on a 22-12, largely party-line vote. Continue reading >>
By LexisNexis Insurance Center Staff LONDON – (Business Insurance) European companies might need to pump billions more euros into their pension funds to meet proposed new accounting rules, Allianz Global Investors said May 6. The implementation of Solvency II rules “could be the final nail in the coffin for defined benefit schemes,” an Allianz spokesperson told journalists at a meeting in London.
By LexisNexis Insurance Center Staff WASHINGTON, DC -- John F. Rathgeber, president and chief executive officer of Arch Reinsurance Company, was elected Chair of the Board of Directors of the Reinsurance Association of America on May 2, 2008.
Elected to serve with Rathgeber a |