Business Insurance back issues from March 2008:
Data-enabled decisions; Reinsurers making greater use of software to better quantify risks and premiums.(Cover Focus: Reinsurance Technology)
Mar 01, 2008; ... Byline: Meg Fletcher ***** Correction: In the story titled "Data-enabled decisions'' that ran in the March issue of Industry Focus, the name of Erie Insurance Group and its location in Erie, Pa., were misspelled. ***** Technological innovation ...
FINITE EXECS GUILTY; Fraud convictions raise questions about potential for new cases.(News)
Mar 03, 2008 ... Byline: DOUGLAS McLEOD HARTFORD, Conn.-Five former executives of General Re Corp. and American International Group Inc. sat grimly in a Hartford, Conn., courtroom last week after a federal jury found them guilty of fraud in helping AIG inflate its loss reserves with a ...
Most offshore domiciles see moderate growth in 2007.(Spotlight: Captive Solutions)
Mar 03, 2008 ... 1. Bermuda Captive count: 958 New captives in 2007: 32 Captives closed in 2007: 63 As the longtime captive leader, Bermuda remains the world's largest captive domicile. In 2007, however, Bermuda saw a net decrease in captives of 31 as ...
U.K. quake claims could hit $60 million.(International News)(Brief article)
Mar 03, 2008; ... Byline: Sarah Veysey MARKET RASEN, England-Insured losses from the earthquake that struck the United Kingdom last Tuesday could reach 30 million pounds ($59.4 million), according to initial estimates. Catastrophe modeling company Risk Management Solutions Inc. said ...
Italy changes tort law to allow new mass suits; Law not expected to have huge liability impact.(International News)
Mar 03, 2008; ... Byline: MICHAEL BRADFORD ROME-A new law in Italy that broadens plaintiffs' access to the courts for class action lawsuits is a toned-down version of the legislation consumer advocates had supported-and not the liability bombshell risk managers and insurers had feared. ...
Court says Mesirow contingents suit can proceed; State court allows fiduciary duty claim but bars fraud charge.(News)(Mesirow Insurance Services)
Mar 03, 2008; ... Byline: SALLY ROBERTS CHICAGO-An Illinois Appellate Court has ruled that a lawsuit against Mesirow Insurance Services Inc. alleging breach of fiduciary duty in connection with undisclosed contingent commissions can proceed. Crystal Lake, Ill.-based DOD Technologies ...
Pension funding revisions proposed; Labor Department considers speeding up employee contribution transfers.(News)(Brief article)
Mar 03, 2008; ... Byline: JERRY GEISEL WASHINGTON-The Labor Department has proposed a revised rule that would require small employers to speed up the transfer of employee contributions to pension and welfare plans and said it is considering doing the same for large employers. Under ...
Seasoned owners look to expand range of coverages in captives; Increased benefits business seen as key area for potential growth.(Spotlight: Captive Solutions)
Mar 03, 2008; ... Byline: GLORIA GONZALEZ and DAVE LENCKUS Many owners of long-established captives have grown comfortable with expanding the risk profiles of their captives, pulling third-party risks such as employee benefits into their facilities as well as retaining much more of their own ...
Health care organizations tap captives to fund safety programs.(Spotlight: Captive Solutions)
Mar 03, 2008; ... Byline: GLORIA GONZALEZ Captives have become an important vehicle for health care organizations that are seeking ways to improve patient safety and claims experience. While several health care organizations initially created captives in response to the hardening of ...
Big Apple brings in more fruit to help fight flab.(End Page)(Brief article)
Mar 03, 2008 ... Produce peddler chants of "Strawberries, blueberries, cherries,'' and "Watermelon! Watermelon! Got `em red to the rind!'' may soon be heard again on the most impoverished streets of New York. The City Council voted last week to issue 1,000 new permits to produce cart vendors as ...
Supreme Court ruling lowers bar for ADEA lawsuits; Justices say claimants' ability to bring bias suits not tied to EEOC's response to filed charges.(News)
Mar 03, 2008 ... Byline: MARK A. HOFMANN WASHINGTON-A Supreme Court decision last week that makes it easier for employees to sue their employers for alleged discrimination under the Age Discrimination in Employment Act could have been worse for employers, say employment law experts. ...
N.Y. regulator eyes ways to cut health care costs; Backs prior approval of health cover rate hikes.(News)
Mar 03, 2008; ... Byline: GLORIA GONZALEZ NEW YORK-New York Insurance Superintendent Eric Dinallo said he hopes a planned lawsuit against UnitedHealth Group Inc. will lead to greater disclosure of health care reimbursement rates but said other changes are needed to drive down health care costs in ...
Errors and omissions.
Mar 03, 2008 ... A story in the Feb. 11 issue, "Nearly One-quarter of Employers Offer Voluntary Life Cover,'' contained two errors. The percentage of employers offering voluntary life insurance was 23% in 2006 compared with 28%, not 22%, in 2002, according to LIMRA International. In addition, 13, not 18, ...
Online Poll at www.businessinsurance.com.(Opinions)
Mar 03, 2008 ... In the current soft market, how much premium do you plan to fund through a captive? More than usual: 38% About the same: 38% Do not use a captive: 25% Next ...
Greater transparency needed to heal industry.(Commentary)
Mar 03, 2008; ... Byline: Paul Winston The guilty verdicts in two closely watched trials in recent weeks-one accusing brokers of improperly rigging bids for excess liability insurance programs and the other alleging executives at General Re and AIG conspired to create a fraudulent finite risk ...
Sentences depend on calculation of loss.(News)
Mar 03, 2008; ... Byline: DOUGLAS McLEOD HARTFORD, Conn.-The defendants in the General Re Corp. finite trial are facing potentially long prison terms, but how long will depend in large part on a federal judge's view of how much financial damage resulted from the allegedly sham reinsurance deal at ...
Supreme Court to rule on punitives in Exxon Valdez case; Arguments hinge on whether maritime law allows $2.5 billion award.(News)
Mar 03, 2008 ... Byline: MARK A. HOFMANN WASHINGTON-The Supreme Court is weighing the question of whether a $2.5 billion punitive damage award stemming from the 1989 Exxon Valdez oil spill should be allowed to stand. The justices last week heard arguments in Exxon Shipping Co. vs. ...
Claims event draws 670.(News)(Conference news)
Mar 03, 2008; ... Byline: Colleen McCarthy NEW YORK-About 670 people attended the 2008 Eastern Claims Conference in New York Feb 24-26. The event featured discussions on health care claims management, life ...
Court limits coverage in WTC owner's policy; Rare clause excludes cover for leased properties.(News)
Mar 03, 2008; ... Byline: DAVE LENCKUS NEW YORK-In the latest insurance ruling stemming from the destruction of the World Trade Center, a federal judge has barred the complex's owner from tapping its coverage under an unusually constructed policy to fill gaps in the WTC leaseholders' coverage. ...
Products & services.
Mar 03, 2008 ... AI Risk Specialists offers excess auto liability NEW YORK-AI Risk Specialists Insurance Inc., a wholly owned brokerage subsidiary of American International Group Inc., has introduced LexExpress, excess auto liability insurance developed to address the needs of small to midsize ...
DEFENDANTS FOUND GUILTY.(News)
Mar 03, 2008 ... Ronald E. Ferguson, Robert D. Graham, Christian M. Milton and Elizabeth A. Monrad, guilty on 16 counts: * One count of conspiracy * Seven counts of securities fraud * Three counts of mail fraud * Five counts of making false statements to the SEC ...
Captives urged to take steps now to comply with Solvency II; Domiciles assess how change in capital requirements may affect different insurance entities owned by E.U.-based parents.(Spotlight: Captive Solutions)
Mar 03, 2008; ... Byline: MICHAEL BRADFORD European captive owners that face big changes in their operations under proposed changes to European capital rules have a chance to smooth the way to the new regulatory environment if they take steps now to determine how it will affect their operations, ...
UnitedHealth wins OK to buy smaller rival; Sierra deal revamped to allay monopoly fears.(News)
Mar 03, 2008; ... Byline: GLORIA GONZALEZ WASHINGTON-UnitedHealth Group Inc. has won approval of its $2.6 billion acquisition of Sierra Health Services Inc. by agreeing to divest a relatively small portion of its business, but future transactions of this size may be problematic due to antitrust ...
ACQUISITION APPROVED.(News)(UnitedHealth Group Inc. acquires Sierra Health Services Inc.)
Mar 03, 2008 ... UnitedHealth Group Inc. secured approval of its acquisition of Sierra Health Services Inc. with a series of concessions that include its agreement to: * Divest its individual SecureHorizons Medicare Advantage health maintenance organization plans in the Las Vegas area and not ...
Onshore domiciles continue to see growth in captives.(Spotlight: Captive Solutions)
Mar 03, 2008 ... 1. Vermont Captive count: 567 New captives in 2007: 32 Captives closed in 2007: 28 Vermont is one of the nation's smallest states, but it towers over its U.S. competitors as a captive domicile. Four years after its captive law ...
Criminal convictions pose hiring dilemma; Employers must weigh risks to their business of hiring ex-cons to avoid running afoul of bias laws.(News)
Mar 03, 2008; ... Byline: JUDY GREENWALD An applicant apparently meets the qualifications to be an administrative assistant, but a background check finds a 10-year-old conviction for sexual abuse of a child. Is the employer obligated under law to offer him the job? That would depend ...
Smaller firms face data theft risks; Hackers try new targets as big companies tighten security: FTC official.(News)(Federal Trade Commission)
Mar 03, 2008; ... Byline: COLLEEN McCARTHY NEW YORK-Identity theft and data security breach incidents are on the rise, but many companies are not prepared to deal with this risk, according to an official with the U.S. Federal Trade Commission. "This is a very serious risk that can ...
Cat bond deals increase in '07: Study.(International News)
Mar 03, 2008; ... Byline: JUDY GREENWALD NEW YORK-Catastrophe bonds have become an integral part of catastrophe risk management, with 2007 marking the third consecutive year that cat bond transactions set a record in terms of size and the number issued, a report shows. "Cat bonds have ...
Coverage mess doesn't mar Silverstein, Willis relations.(End Page)(services of Willis Group Holdings Ltd.)(Brief article)
Mar 03, 2008 ... If World Trade Center developer Larry A. Silverstein was ever upset with Willis Group Holdings Ltd. over the coverage fiasco that followed the Sept. 11, 2001, terrorist attack, he appears to have gotten over it. Mr. Silverstein last week announced that Willis has placed the ...
Prescription fraud losses escalate; Insurers, third-party payers urged to step up efforts against drug abuse.(News)(Coalition Against Insurance Fraud)(Report)
Mar 03, 2008; ... Byline: COLLEEN McCARTHY NEW YORK-The illegal use of prescription drugs is reaching epidemic levels and health insurers are only beginning to realize their losses associated with this, according to the author of a recent report by the Washington-based Coalition Against Insurance ...
In brief.(News)(Michigan Legislature approves formation of captive insurance companies)(American International Group Inc.)(Peter Zaffino appointed at Guy Carpenter and Company Inc.)(Financial report)
Mar 03, 2008 ... Michigan passes law to allow captives The Michigan Legislature has given final approval to legislation allowing the formation of captive insurance companies in the state. The state's Senate last week unanimously accepted a measure the House of Representatives approved ...
Courts should overturn San Francisco health law.(Opinions)(Brief article)
Mar 03, 2008 ... THE ARCHITECTS of San Francisco's health care spending ordinance may have thought the measure would reform the system, but at least one provision may result in just the opposite. Under the law, which a restaurant trade group is challenging in court, employers must make what the ...
Politician runs into problems over campaign financing.(End Page)(cases of Rick Renzi)(Brief article)
Mar 03, 2008 ... Did a congressman embezzle money from his family's insurance agency to fund his political career? That's a question a jury eventually may get to ponder concerning charges brought late last month against Rep. Rick Renzi, R-Ariz., and two associates. A federal grand jury in ...
Viewers say show reneged on deal.(End Page)(viewers file cases against NBC Universal Inc.)(Brief article)
Mar 03, 2008 ... The home viewer Lucky Case Game portion of the popular NBC game show "Deal or No Deal'' constitutes illegal gambling under Georgia law, argue players who want their money back. Michael and Michelle Hardin filed a lawsuit last June against the producer of the show, NBC Universal ...
States learning the value of welcoming captives.(Opinions)(Brief article)
Mar 03, 2008 ... Not that long ago, a company or trade group operating in the United States had to go offshore to set up a captive insurer. The reason was simple: No state had an attractive captive statute. Those days are gone. Today, the fastest growing domiciles in the world are in ...
On the web.
Mar 03, 2008 ... CAPTIVES 2008 Captive Solutions extras online To hear more about the development of captives, listen to podcasts with John Wilson of Three Rivers Insurance Co. and Jack McCarthy of CRICO/Risk Management Foundation. Directories of captive managers and domiciles are at ...
Errors and omissions.(Correction notice)
Mar 03, 2008 ... ***** Correction: An item in the March 3 issue misidentified the law firm of Dewey & LeBoeuf L.L.P. ***** A story in the Feb. 11 issue, "Nearly One-quarter of Employers Offer Voluntary Life Cover,'' contained two errors. The percentage of employers ...
Organic grocery chain offers surgery abroad in 'dialogue' with U.S. medical community.(Benefits Management)(Hannaford Brothers Co.)
Mar 10, 2008; ... Byline: Roseanne White Geisel Perhaps it's no surprise that Hannaford Bros. Co., the Northeast's largest certified organic grocery chain, is miles ahead of other large companies in offering a medical tourism option in its employee health plan. Scarborough, ...
Successful medical tourism rests primarily on design.(Benefits Management)
Mar 10, 2008; ... Byline: Roseanne White Geisel Benefit managers can take certain steps to ensure that integrating a medical tourism option into an employer-sponsored health plan is successful and worthwhile. The first step is to "analyze the potential impact that offering the benefit ...
Few U.S. employers book passage on the ship of medical tourism; Estimates vary widely on savings achieved by surgery performed abroad.(Benefits Management)
Mar 10, 2008; ... Byline: ROSEANNE WHITE GEISEL Despite the cost savings floated by the medical tourism industry, few employers have plunged into the unknown waters surrounding the integration of medical tourism into group health plans. Medical tourism is the term used for patients ...
Captive owners strongly urged to find their voice in Solvency II; E.C. official: Take part in upcoming quantitative studies.(International News)
Mar 10, 2008; ... Byline: MICHAEL BRADFORD LUXEMBOURG-The European Union's proposed revamp of insurance regulation, as it stands now, is not a captive-friendly framework and captive owners need to raise their concerns with the proposed directive, experts advise. The "spirit and ...
Industry veterans open reinsurance brokerage; Fox, Stanard launch Alpha Re to target catastrophe business.(News)
Mar 10, 2008; ... Byline: JUDY GREENWALD SHELTON, Conn.-Insurance industry veterans Rod Fox and James N. Stanard have started a new reinsurance intermediary, Alpha Re, Mr. Fox said. Alpha Re, which may change its name later, began operations on Feb 1. The company so far has focused on ...
Alert.(News)
Mar 10, 2008 ... Business Insurance has learned of instances recently where persons misidentifying themselves as BI reporters have contacted insurance industry executives, seeking ...
On-the-job sleepiness blamed on extra work.(End Page)(surveys of National Sleep Foundation )(Brief article)
Mar 10, 2008 ... Wipe the drool from your face and shake the dreams from your head: It's time to get back to work. A recent survey by the National Sleep Foundation discovered that 29% of respondents fell asleep or became "very sleepy'' at work in the past month, which isn't good for ...
Franken to pay workers comp fine but keeps right to appeal.(End Page)(Brief article)
Mar 10, 2008 ... Al Franken is both a funny guy and a candidate for the Minnesota Democratic Farmer Labor Party nomination for the U.S. Senate. But the "Saturday Night Live'' comedian-turned-politician found himself facing a serious charge last week involving alleged failure to provide workers ...
Supreme Court allows Rezulin suit to go to trial.(News)
Mar 10, 2008 ... Byline: DAVE LENCKUS WASHINGTON-A divided U.S. Supreme Court last week allowed a group of plaintiffs to sue the manufacturer of the diabetes drug Rezulin in a case that centered on when federal laws supersede state laws. In a one-sentence ruling, the high court on ...
Medical homes aim to improve delivery of care.(Benefits Management)
Mar 10, 2008; ... Byline: Joanne Wojcik The patient-centered medical home is a health management model in which each patient has an ongoing relationship with a primary care physician who serves as their personal "health coach,'' leading a team of medical professionals that takes collective ...
Plans based on incentives.(Benefits Management)(Brief article)
Mar 10, 2008; ... Byline: Kristin Gunderson Hunt Value-based health care benefit plans are designed around offering employees financial incentives and disincentives to encourage healthy behaviors to get the maximum value for every dollar spent. Employers gauge the value of various ...
Market moves.(Exante Financial Services changes name to OptumHealth Financial Services)(services of Humana Inc.)(BB&T Insurance Services Inc. plans to acquire Burkey Risk Services )
Mar 10, 2008 ... OptumHealth rebrands financial services arm GOLDEN VALLEY, Minn.-OptumHealth, a Golden Valley, Minn., division of UnitedHealth Group Inc., has changed the name of Exante Financial Services to OptumHealth Financial Services. "The name change reflects our belief in the ...
Insured losses near $2B from Windstorm Emma.(International News)(Brief article)
Mar 10, 2008; ... Byline: STUART COLLINS BOSTON-Insured wind losses from Windstorm Emma, which tore across parts of Central Europe on March 1, could cost as much as $1.99 billion, with Germany and Austria accounting for more than half the total. According to Boston-based catastrophe ...
Ex-Willis exec accused of stealing $2.2 million; Captive management senior vp faces charges of bank, wire fraud.(News)(Kenneth MacKay was an employee of Willis Group Holdings Ltd.)
Mar 10, 2008; ... Byline: SALLY ROBERTS BURLINGTON, Vt.-A former senior vp of Willis Group Holdings Ltd.'s Vermont-based captive management operations was arrested last week on charges that he stole more than $2.2 million from Willis and its clients. In a criminal complaint filed in ...
Discrimination filings with EEOC the highest since 2002; Race still No.1 issue; retaliation overtakes gender at No. 2.(News)(Equal Employment Opportunity Commission)(Report)
Mar 10, 2008; ... Byline: SALLY ROBERTS WASHINGTON-The U.S. Equal Employment Opportunity Commission in fiscal year 2007 received the highest number of discrimination charge filings in five years, the agency reported last week. The federal agency received 82,792 private-sector ...
Pilot programs examine medical home concept.(Benefits Management)(UnitedHealth Group Inc.)
Mar 10, 2008; ... Byline: Joanne Wojcik Insurers, employer groups and even the federal government have initiated pilot programs around the United States to determine whether medical homes can stem the rising cost of health care. UnitedHealth Group Inc., for example, was among the first ...
'Medical home' shifts emphasis to patient-centered care; Approach taps coordinated, comprehensive service delivery directed by a primary physician, who may receive a bonus.(Benefits Management)(International Business Machines Corp.)
Mar 10, 2008; ... Byline: JOANNE WOJCIK When an IBM Corp. executive suddenly developed chest pain, he made an appointment with a cardiologist, who performed a battery of tests that had inconclusive results except an unidentifiable abnormality in the neck region. The cardiologist ...
Promoting medical consulting programs raises utilization rates significantly.(Benefits Management)(EMC Corp. )
Mar 10, 2008; ... Byline: Gloria Gonzalez Employers that actively inform employees about medical consulting benefits have the highest rates of utilization, vendors and benefit managers say. Medical consulting companies offer decision support services that give employers a way to help ...
Returns on medical consulting services worth cost: Employers; Programs help employees make informed health care decisions, avoid unnecessary treatments.(Benefits Management)
Mar 10, 2008; ... Byline: GLORIA GONZALEZ Medical consulting companies that advise employees are gaining popularity among benefit managers for their ability to empower employees to take control over health care decisions while avoiding costly, unnecessary or inadequate treatment. ...
Shipowner pays $2M to help fund oil cleanup.(News)(Regal Stone Ltd. )(Brief article)
Mar 10, 2008; ... Byline: JUDY GREENWALD SAN FRANCISCO-The insurer of a ship that spilled fuel oil into San Francisco Bay following a November accident has made an initial payment of $2 million in compensation. San Francisco City Attorney Dennis Herrera said in a statement last week ...
Value-based plans an investment in a healthy workforce; Programs give employees financial incentive to seek preventative services, disincentive to pursue ineffective care.(Benefits Management)
Mar 10, 2008; ... Byline: KRISTIN GUNDERSON HUNT Value-based health benefit plans are increasing in popularity, employee benefit consultants say, as medical costs continue to rise and cutting benefits seemingly provides little relief. The burgeoning concept calls upon employers to ...
Health insurer payment info sought.(News)(UnitedHealth Group Inc.)(Aetna Inc.)(WellPoint Inc.)(CIGNA Corp.)
Mar 10, 2008; ... Byline: JOANNE WOJCIK NEW YORK-New York Attorney General Andrew Cuomo is broadening his investigation into health insurers' practices related to payments for out-of-network services, issuing new subpoenas to several companies seeking additional information. Mr. Cuomo ...
Weigh Internet sources carefully when hiring.(Opinions)(usage of online social networks by employers)(Brief article)
Mar 10, 2008 ... Mining social networking sites for information on potential employees is another example of how business and pleasure aren't always easily mixed. As we report on page 1, more and more employers are using Web sites such as Facebook and MySpace-which were designed for people to ...
Preferential treatment undermines parity goal.(Opinions)(laws of Congress. House regarding mental health services)(Brief article)
Mar 10, 2008 ... WHILE MANDATED MENTAL HEALTH care benefits parity legislation is probably an idea whose time has come, we don't think the approach favored by some parity advocates is the way to achieve it. As we report on page 1, the House of Representatives last week approved parity ...
Low-income uninsured bet cover on lottery.(End Page)(Oregon Department of Human Services )(Brief article)
Mar 10, 2008 ... It may not be as macabre as Shirley Jackson's legendary short story "The Lottery,'' but the folks in Oregon are using a drawing to decide who will or will not be covered by the state-subsidized health plan for low-income residents. Because of budget cuts, the Standard Benefit ...
N.Y. seeks more data on comp payments; Employers may face added admin costs as reforms continue.(News)
Mar 10, 2008; ... Byline: ROBERTO CENICEROS ALBANY, N.Y.-New York employers would face a bigger administrative burden if plans to increase workers compensation claims data requirements go into force, but the changes will make the system more efficient, state officials say. The ...
Mental parity bill steps closer to law; Measure would force employers to upgrade health care benefits.(News)(Congress. House)
Mar 10, 2008; ... Byline: JERRY GEISEL WASHINGTON-Federal legislation that would mandate mental health benefits receive insurance coverage equal to other health care benefits is heading to a congressional conference committee, which likely will agree on a compromise bill, benefit experts say. ...
In brief.(News)(laws and rules of Lloyd's of London)(Congress. Senate. Committee on the Judiciary approves a legislative bill)(tax policy of Internal Revenue Service)
Mar 10, 2008 ... Proposed reforms would broaden access to Lloyd's The U.K. government would widen access to Lloyd's of London and allow managing agents once again to own brokers, under a slew of market reform proposals released last week. One proposal would "allow managing agents to deal with ...