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Sunday, June 24, 2012

Sierra Club Sues EPA Over Oklahoma Power Plants

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The Sierra Club filed a lawsuit in Washington, D.C., District Court against the U.S. Environmental Protection Agency on Wednesday, seeking to ensure that the federal agency enforces a state plan that monitors and reduces pollution from Oklahoma coal-fired power plants.

The Sierra Club warned the EPA in February that the lawsuit was coming in 60 days if the agency failed to act, the environmental group said in a statement.

No action was taken, so the Sierra Club followed through, said Whitney Pearson, associate field organizer for group’s Oklahoma chapter.

“Sierra Club brought this citizen suit because EPA must act to either approve or disapprove the state’s plan to address these excess harmful emissions,” Pearson said. “What we ultimately expect out of this action is to end the free pass that large polluters currently have which allows them to emit unlimited amounts of pollution during certain phases of their operations. Because people need to breathe all the time, limits of the amount of pollution that polluters can emit need to apply all the time. This case is one step in getting to that point.”

The EPA will review the details of the Sierra Club lawsuit, said Dave Bary, EPA Region 6 spokesman.

“EPA will discuss with the Sierra Club and the state of Oklahoma the next appropriate steps in this legal matter,” Bary said.

The plants involved include the Oklahoma Gas and Electric Co.’s Muskogee plant, Pearson said. OG&E has another coal-fired power plant, Sooner Station, in Red Rock.

Brian Alford, OG&E spokesman, said the company will have to wait for an outcome.

“So, once we know what this process will be, rest assured we will follow that process, once we know what that is,” Alford said.

All coal plants in Oklahoma emit excess emissions, Pearson said.

“And we are reminding the EPA to help close this loophole so that Oklahomans can breathe cleaner air,” Pearson said.

The coal-fired plants are allowed to pollute above legal levels, said Jenna Garland, associate press secretary with the Sierra Club Southeast and South Central Region.

“Currently, under what is known as a pollution excuse provision, coal plants can turn off pollution controls when starting up, shutting down, or performing maintenance on a malfunctioning plant,” she said.

The loophole allows Oklahoma plants to pump more mercury and smog into the air than in other places around the country, Garland said.

“Although the Clean Air Act requires the EPA to approve or disapprove Oklahoma’s proposed plan to manage these emissions, EPA failed to act by the deadline,” she said.

Coal-fired plants release excess emissions during periods of starting, shutting down and maintenance because operators generally turn off any existing pollution controls during these times, which cause significant emissions spikes to occur, Garland said.

“For example, starting up a coal boiler that has not been running can take hours to bring it up to temperature, and during this time no pollution controls are running on the boiler, so 100 percent of the pollution is going into our air,” she said.

Additionally, engineers at regulatory agencies do not include these excess emissions in a plant’s air permit, Garland said. As a result, they exceed the amount allowed by permit.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Conn. House Passes Firefighter Compensation Bill

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A bill that would make certain local firefighters eligible for workers’ compensation coverage for mental or emotional damage has passed the Connecticut House of Representatives.

State representatives voted 141-to-0 in favor of the bill Wednesday. It now awaits action in the state Senate.

Under the proposed legislation the current workers’ compensation statutes would be expanded to include firefighters who are diagnosed with post-traumatic stress disorder after witnessing the death of a colleague in the line of duty.

To qualify, the diagnosis would need to be made by a licensed and board certified mental health professional.

Connecticut police officers currently receive similar protections.

Republican Rep. Christie Carpino, of Cromwell, spoke in favor of the bill, saying a large percentage of local Connecticut firefighters are volunteers and should have this benefit.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Saturday, June 23, 2012

N.Y.-Based Alleghany Acquires Stake in Manufacturing Firm Bourn & Koch

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New York-based global specialty insurer Alleghany Corporation said its investment management unit acquired a majority stake in manufacturing firm Bourn & Koch. Terms of the transaction were not disclosed.

Alleghany, in addition to its core P/C insurance business, invests in various subsidiaries through its Alleghany Capital Corporation division. Alleghany Capital Corporation’s current investments include: Stranded Oil Resources Corp., an exploration and production company focused on enhanced oil recovery; ORX Exploration, a regional oil and gas exploration and production company; Homesite Group Inc., a national, full-service, mono-line provider of homeowners insurance; and Article One Partners, the world’s largest patent research community.

Bourn & Koch is a privately-held manufacturer and remanufacturer/retrofitter of precision machine tools and supplier of replacement parts for 27 different product lines headquartered in Rockford, Ill.

Notably, Alleghany is also the parent company of reinsurer Transatlantic Holdings. The widely publicized Transatlantic acquisition deal, which was first announced on Nov. 20, 2011, was valued at $3.4 billion. That acquisition was completed in March.

Ratings Recap: National General, Univé Her/Stormher, Radius

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A.M. Best Europe – Rating Services Limited has affirmed the financial strength rating of ‘B++’ (Good) and the issuer credit rating of “bbb+” of the United Arab Emirates National General Insurance Company (P.S.C.) (NGI), both with stable outlooks. Best noted that both ratings “continue to be supported by NGI’s very strong risk-adjusted capitalization, long track record of generating sound technical profits and its established domestic franchise.” However, the report also noted that the ratings take into account “the company’s investment strategy, which is considered to be a source of potential volatility in earnings. NGI is a well-established composite insurer, ranking as the seventh-largest by gross written premiums in 2011.” Best said it expects NGI to be able “to protect its domestic position going forward, growing its top line through increased cooperation with its largest shareholder.” In Best’s opinion, NGI’s “risk-adjusted capitalization is very strong with sufficient room to absorb planned growth over the next two years. The company has demonstrated good ability to generate capital internally, with a long track record of generating sound returns, supported by consistently good underwriting performances.” However, Best also noted that “NGI’s investment portfolio—of which real estate, equities and unquoted investments accounted for 72 percent at year-end 2011—generates volatility in investment income.” As a result Best indicated that “NGI’s ratings are likely to come under negative pressure should the company fail to halt the technical losses in its medical business. Negative pressure also may result should the company’s trend in increased risk and lower liquidity of investments persist. Any upward movement in NGI’s ratings is likely to result from an improvement in its business profile in its domestic market or better diversification of its investment portfolio.”

A.M. Best Europe – Rating Services Limited has affirmed the financial strength rating of ‘A-’ (Excellent) and the issuer credit ratings of “a-” of Onderlinge Verzekerings Maatschappij Univé Her u.a. (Univé Her) and Onderlinge Verzekerings Maatschappij Univé Stormher u.a. (Univé Stormher). Both companies are domiciled in the Netherlands. The outlook for all of the ratings remains stable. The ratings “reflect each company’s excellent risk-adjusted capitalization, good operating performance and good business profile as a specialist insurer within its domestic market,” said Best. However, Best also pointed out that both Univé Her and Univé Stormher “are small in absolute terms and have a client base that is restricted to the 22 Dutch mutual property insurers that own and govern the two companies. As a consequence, geographical and business line diversification is limited. Risk-adjusted capitalization is expected to remain strong for both companies. Univé Her’s risk-adjusted capitalization continues to be enhanced by its members’ account, the reported value of which is expected to be around €14.0 million [$18.4 million] at year-end 2011.” Best explained that the members’ account “acts similarly to a subordinated debt and can be used if the company experiences financial difficulties. In addition to having access to the members’ account, Univé Stormher is expected to report a catastrophe reserve of € 22.4 million [$29.5 million] at year-end 2011, which can be utilized if the company experiences large catastrophe losses. Univé Her is expected to report a small underwriting loss of approximately €700,000 [$920,000] in 2011, as a result of several medium-sized claims. Univé Stormher experienced one claim in 2011 and as a result, overall reported earnings for the company are expected to significantly improve in 2011, with an expected loss ratio in the region of 15 percent (2010: 106.5 percent). Given Univé Stormher’s exposure to catastrophes, technical results are volatile.” However, Best also noted that the “company has an extensive reinsurance program in place with cover up to a one in 200 year event. Univé Her and Univé Stormher maintain their specialist business profiles as the sole property reinsurers for the 22 Univé property mutuals, which own and govern the two companies. Although the client base is limited, the customers are loyal, and neither Univé Her nor Univé Stormher has ever failed to renew an account (with the exception of mergers between mutuals). Both companies possess extensive knowledge of their customers’ business and are able to provide underwriting and claims support as well as competitive prices. In 2012, Univé Her and Univé Stormher are expected to be merged into a limited company, which will be 100 percent owned by Co?peratie Univé U.A. (a mutual holding company with the Univé insureds as members). The merger and restructuring are still subject to final regulatory approval, and completion is expected by the end of June 2012. The merged company will be active retrospectively from 1 January 2012. The members’ account will be repatriated back to the mutual insureds, nevertheless, risk-adjusted capitalization at the new company is expected to remain strong. Upward rating movements at this point are unlikely. Downward rating movements may be triggered if there is a significant reduction in risk-adjusted capitalization as a result of a large catastrophe and/or changes to either company’s client base.”

A.M. Best Co. has assigned a financial strength rating of ‘A’ (Excellent) and issuer credit rating of “a” to Cayman Islands-based Radius Insurance Co., Ltd., both with stable outlooks. The ratings of Radius “are based on its excellent capitalization, a history of profitable business written from a predecessor captive, as well as the position the company holds as the captive insurer for its ultimate parent, Phillips 66,” best explained. “Phillips 66 became a publicly traded company under the ticker symbol, NYSE: PSX, and is the result of ConocoPhillips spinning off the downstream portion of its business to the public. The ratings also consider the level of commitment on the part of its parent, whose management incorporates Radius as a core element in its overall risk management program.” As partial offsetting factors Best cited “Radius’ exposure to large losses due to the limits offered on its policies as well as its significant dependence on reinsurance protection. The business that will be written by Radius has a history of strong underwriting results and operating returns. The company’s loss experience has remained favorable due in part to the strong loss control programs at the parent. Phillips 66 will conduct annual reviews of its potential loss exposures through a specialist in industrial risks. A single occurrence could result in a large loss that approaches Radius’s limits.” However, Best also indicated that the “company has the capital to fund claims in the event of a reinsurance recovery problem. Key rating triggers that could result in positive rating actions would be Radius generating consistent net income, limited losses and meeting and/or exceeding its business plan over the long term. Key rating triggers that could result in negative rating actions would be Radius generating consistent net losses, numerous large claims and/or not executing its business plan over the long term.”

Idaho Man Gets Jail Time For Faking Motorcycle Mishap

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The insurance claim seemed straightforward: Jason Preston said his motorcycle was wrecked.

His clothing was scuffed up to prove it.

But Idaho investigators figured there was something fishy about the Blackfoot man’s story he’d crashed the bike to avoid hitting an animal in July 2011.

So what began as a seemingly ordinary Idaho traffic mishap has resulted in Preston being sentenced to 20 days in jail _ for insurance fraud and damaging insured property.

A 6th District judge suspended Preston’s one-to-four-year prison term.

Idaho Attorney General Lawrence Wasden described Tuesday what really happened.

The 31-year-old placed his motorcycle in his truck, accelerated and pushed it off the back.

Preston’s girlfriend then dragged him down the road.

The case was investigated by the Bonneville County sheriff and Idaho Department of Insurance.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Friday, June 22, 2012

Texas Attorney General Takes on State Farm Non-Renewal Plans

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Texas Attorney General Greg Abbott is taking issue with one of the nation’s largest homeowners insurer’s plan to non-renew thousands of policies for properties along the Gulf Coast.

Abbott said his office is conducting an investigation into State Farm Insurance Co.’s proposal to deny renewed coverage on more than 11,000 policies of Gulf Coast Texans.

“The largest issuer of homeowners insurance in Texas has filed a lawsuit in an attempt to prevent the Attorney General’s Office from investigating its non-renewal of thousands of residential property insurance policies along the Gulf Coast,” Attorney General Abbott said in an announcement released by his office. “Given the number of Texans that are affected, we want to ensure that State Farm complies with the law. If State Farm has not done anything wrong, it’s certainly curious that they would go to court just to avoid the State’s subpoenas.”

In mid-April the Attorney General’s Office sent civil investigative demands — a type of civil subpoena — to State Farm Lloyds of Texas seeking information about the company’s decision not to renew the coastal policies.

State Farm subsequently filed a lawsuit against the AG’s office in an attempt to modify or set aside the AG’s request for information. In the filing, State Farm indicated Abbot had demanded 22 “separate categories of information, involving potentially thousands of pages of documents” to be produced in a week’s time.

While the AG’s office asserted that State Farm’s lawsuit was an “effort to avoid its obligation to provide the information requested by the State,” the company countered that its filing was an effort to “preserve its rights.”

State Farm indicated that it notified the AG’s office before filing the lawsuit, and that the company intended to cooperate and would not go forward with the lawsuit “unless and until it becomes necessary.”

State Farm public affairs representative Patti Kelly confirmed that the non-renewal of around 11,000 Texas coastal policies began on May 1

As to the attorney general’s actions, Kelly said the company could not comment as the matter is in litigation. “However, we have filed suit in an effort to protect our legal rights,” Kelly told Insurance Journal.

Kelly said the company is cooperating with TDI on its market conduct exam of State Farm’s non-renewal activity on the coast.

“The impacted counties are Galveston, Brazoria, Jefferson, Orange and Chambers,” she said. “Even with these changes, State Farm has more policies in coastal counties than any other private insurer. In fact, we serve more customers throughout all parts of Texas than any other insurance provider — showing a commitment to the state that no other carrier can match.”

In the lawsuit filed against the AG’s office, State Farm stated that in December 2011, it provided TDI with “underwriting guidelines for property insurance that modified the eligibility requirements for new business along the Coast.”

State regulators were also “provided additional requested information – prior to implementation,” Kelly said

TDI ultimately “determined the guidelines complied with state law,” State Farm’s lawsuit states.

However, when the company informed regulators in 2012 that it intended to non-renew some 11,300 customers — both residential and commercial — along the coast “consistent with the eligibility requirements for new business” contained in the previously filed underwriting guidelines, TDI opened an investigation.

That investigation is ongoing, according to the company’s lawsuit.

Kelly said that while the company is committed to protecting its Texas homeowners customers, “we must find the appropriate balance between exposure, the resources available to maintain a quality level of service, and our ability to meet our financial obligations. We use detailed models to ensure we have the resources in place to meet all the promises we make to policyholders in Texas.”

Lawmakers OK Limits on Mississippi AG’s Deals with Private Law Firms

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A measure to limit Democratic Attorney General Jim Hood’s ability to control state legal business is on the way to Republican Gov. Phil Bryant.

The Mississippi Senate voted 34-18 Wednesday to pass House Bill 211, after the House voted 64-55 for final passage. Both chambers are controlled by Republicans.

Hood opposes the bill, saying it’s unconstitutional and would cost the state money.

The bill would limit the share of a verdict that would go to private lawyers hired on contingency, normally capping payments at $50 million. It would require the attorney general to appoint outside lawyers if he declines to represent an agency or if there is a “significant disagreement” with an agency head or elected official.

The measure would create a commission of the governor, lieutenant governor and secretary of state to referee disputes. All three of those current officials are Republicans. Commission decisions could be appealed to court.

Republicans have long criticized the practice of hiring outside lawyers, saying attorneys general give lucrative cases to their political allies, who in turn give campaign contributions back to the official. However, the measure would not restrict that practice as tightly as some have wanted in the past.

Hood claims any efforts to limit his power are unconstitutional, pointing to a decades-old court case that supports the view. He has threatened to sue over limits to his power.

Senate Judiciary A Committee Chairman Briggs Hopson, R-Vicksburg,  denies that anything in the bill is unconstitutional.

The issue has surfaced in other states, in part because conservatives and business interests want to limit the power of attorneys general to bring blockbuster lawsuits against corporations. The biggest suit of that kind was the one where Mississippi Attorney General Mike Moore hired Richard “Dickie” Scruggs to sue the tobacco industry. Mississippi settled its litigation in 1997 for an estimated $4.1 billion over time. Scruggs and affiliated lawyers were supposed to rake in a billion dollars in fees over time from the whole $248 billion national settlement. Scruggs later went to prison.

The Mississippi attorney general could still hire outside lawyers and could still pay them on contingency, under the bill. However, the attorney general would be bound by law to publish outside legal contracts, and those lawyers would have to keep time and expense records, down to how they spend as little as six minutes.

The attorney general wouldn’t be able to file suit until giving an elected official or agency seven working days to object. Those agencies would be able to seek other lawyers from the commission.

Hood said in a written statement that the bill is a “short-sighted attempt to strip the people of a constitutionally empowered attorney general and instead hire a barrel full of hand-picked lawyers doing the bidding of a few politically minded individuals. Not only is it a recipe for disaster legally and ethically, it will cost taxpayers millions of extra dollars each year.”

Hopson said the commission could turn down agencies or elected officials that made bad requests.

“This is going to prevent an agency from going out and hiring counsel willy-nilly,” Hopson said.

If the commission approves an outside lawyer, the bill says the attorney general would have to withdraw from representing the agency. However, Hopson said the attorney general could be barred from representing an agency or elected official, but would still be able to represent the state as a whole.

Rep. Cecil Brown, D-Jackson, said the bill would require an expensive legal fight if it becomes law, and that he ultimately believes Hood will prevail because it would be unconstitutional. Brown noted that Hood has won large sums for the state when agencies might have settled for less.

“He has a terrific track record,” Brown said of Hood. “It’s clearly about partisan politics. We do not object to sunshine, we’ve done a lot to create transparency. This is not a transparency bill, this is an attack on Jim Hood and it’s totally unnecessary.”

Hood said the law could lead to agencies settling piecemeal with BP PLC or similar companies that have wronged the state “thereby fracturing Mississippi’s united defense against corporate wrongdoing.”

House Judiciary A Committee Chairman Mark Baker, R-Brandon insisted that Hood’s own politics are getting in the way. He said Tuesday that the attorney general should not have the ability to legislate through his position.

“The people of Mississippi want the attorney general to be the lawyer and the state to be the client,” Baker said.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Thursday, June 21, 2012

BP Wins Delay of Gulf Oil Spill Trial

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A trial to assign blame and damages that could total tens of billions of dollars for the 2010 Gulf of Mexico oil spill has been put off until January, in a setback for the U.S. government, which wanted to try its case this summer.

U.S. District Judge Carl Barbier in New Orleans on Thursday scheduled a trial for Jan. 14, 2013, more than 10 months after it had originally been scheduled.

The decision means the federal government and Gulf Coast states, which also wanted a summer trial, may have to wait longer to recover money from BP Plc and its drilling partners.

It is unclear how the new timetable will affect strategy, or whether it might spur the federal government to press harder for settlements and help local residents seeking money for cleanup or restoration.

“This may spur the government to settle,” said Edward Sherman, a professor at Tulane University Law School in New Orleans. “The Obama administration may want to show its stuff before the November elections.”

However, Carl Tobias, a University of Richmond law professor specializing in product liability, said the delay might make it harder for governments to reach acceptable settlements.

“A delay could give the governments more time to strengthen their bargaining positions, but they lose leverage that comes with having a trial scheduled in the near term,” he said.

A comprehensive trial to resolve claims involving BP, drilling partners Transocean Ltd. and Halliburton Co., federal and state governments, private plaintiffs and others had been scheduled for Feb. 27. It was put on hold while BP negotiated with the private plaintiffs.

Barbier’s order came one day after he granted preliminary approval to BP’s estimated $7.8 billion settlement to resolve economic, property and medical claims by 125,000 individuals and businesses harmed by the spill. He set a Nov. 8 fairness hearing to consider objections before granting final approval.

The April 20, 2010 explosion of the Deepwater Horizon drilling rig killed 11 workers and triggered the largest U.S. offshore oil spill from the ruptured Macondo well, in which BP held a 65 percent stake.

Transocean owned the rig, and Halliburton provided cementing services. About 4.1 million barrels of oil were spilled and not cleaned up, the U.S. government has estimated.

U.S. Department of Justice spokesman Wyn Hornbuckle declined to comment. The offices of Alabama Attorney General Luther Strange and Louisiana Attorney General James “Buddy” Caldwell had no immediate comment.

Ellen Moskowitz, a BP spokeswoman, declined to comment.

Transocean spokesman Lou Colasuonno said that company has “utmost confidence” in its case. Halliburton spokeswoman Beverly Stafford did not respond to a request for comment.

WILL TRIAL REALLY HAPPEN?

BP had urged that a trial on remaining Gulf spill issues be delayed until after the Nov. 8 fairness hearing, to help ensure that any “overlapping or parallel actions” would not distract from administering the settlement with private plaintiffs.

But the governments objected, saying such a delay would be unfair to residents and the broader public interest.

BP previously took a roughly $37.2 billion charge for the spill. The London-based company’s potential liability for violating the federal Clean Water Act alone could reach $17.6 billion if it were found to have acted with gross negligence.

Other companies in the case are Anadarko Petroleum Corp., which owned 25 percent of the Macondo well; Cameron International Corp., which made a blowout preventer, and Schlumberger NV’s M-I Swaco venture, which provided mud services. All have settled with BP.

Mitsui & Co’s MOEX USA unit, which owned 10 percent of the well, has also settled with BP, and in February agreed to pay $90 million to settle with the federal government.

About 311 witnesses have been deposed and 90 million pages of documents have been produced in the case, court papers show.

“You wonder whether there will ever be a trial,” said Tobias, the University of Richmond law professor. “The farther we move past the actual event, it may complicate matters for all sides. Memories fade and evidence could grow stale.”

The case is In re: Oil Spill by the Oil Rig “Deepwater Horizon” in the Gulf of Mexico, on April 20, 2010, U.S. District Court, Eastern District of Louisiana, No. 10-md-02179.

Mass. AG Coakley Advises Teenagers: Don’t Text While Driving

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Massachusetts Attorney General Martha Coakley and officials from across the country are advising teen drivers to be mindful of the dangers of texting while driving.

A texting driver is 23 times more likely to get into an accident than a non-texting driver, officials say.


“Young adults now spend more time texting, emailing, and accessing data on their phones instead of talking, but when they are behind the wheel of a car, they cannot give in to the urge to constantly respond,” Coakley said. “Distracted driving is dangerous and sometimes fatal.”

Five seconds is the average time a driver’s eyes are off the road when texting. That may not sound like much, but when traveling at 55mph, that’s enough time to cover the length of a football field, according to officials.

May is the National Youth Traffic Safety Month, and May 1 was the inaugural Stop the Texts Day. On May 1, together with the National Highway Traffic Safety Administration, the state attorneys general, consumer protection agencies, and the Ad Council, Coakley unveiled new public service advertisements featuring popular NASCAR driver Kasey Kahne.

In July 2010, Massachusetts became the 29th state to ban texting behind the wheel for all drivers and to ban cell phone use while driving for those under the age of 18. But according to a national survey released by the Ad Council, 60 percent of young adult drivers (16-24) said they have texted while driving.

The National Highway Traffic Safety Administration reports that distracted driving is the number-one killer of American teens. In 2010, more than 3,000 people were killed and an additional 416,000 were injured due to distracted driving, which includes texting while driving.

The goal of Stop the Texts Day was to extend the message of the “Stop the Texts. Stop the Wrecks” via social media in an effort to educate young drivers about the risks of texting while driving.

Kelly Named President of P/C Insurance Advisory Organization AAIS

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A national advisory organization serving the U.S. property/casualty industry has named a new president.

Edmund J. Kelly of Boulder, Col. was recently chosen president of the American Association of Insurance Services (AAIS), an organization that develops policy forms and rating information used by more than 700 P/C companies throughout the U.S.

Kelly’s appointment was announced by Paul Baiocchi, the longtime president of AAIS who will continue as chief executive officer of the organization through a period of transition. Baiocchi has been with AAIS for 36 years, 25 of them as president and CEO. He made the announcement of Kelly’s appointment at the 2012 AAIS Main Event executive conference, recently concluded in La Jolla, Calif.

Kelly has a varied career in P/C insurance, including two years as CEO of Paris Re America Insurance Co., seven years as president and chief operating officer of ICAT Holdings LLC (a catastrophe risk entity), four years as chief financial officer for a specialty division of Royal Sun Alliance, and three years as vice president of finance and operations for a workers’ compensation company.

Prior to his insurance career, Kelly worked 11 years as a senior manager for Ernst & Young; he is a certified public accountant.

As president, Kelly will be a member of the AAIS board of directors, as will Baiocchi, as CEO. Other members of the AAIS board elected or re-elected at the Main Event include:

 Christopher Taft, president and CEO of Preferred Mutual Insurance Co., New Berlin, N.Y. (chairman of the board) Herman Bontrager, president and CEO, Goodville Mutual Casualty Co., Goodville, Pa.; R. Douglas Haines, president and CEO of Buckeye Insurance Group, Piqua, Ohio; Stuart C. Henderson, president and CEO of Western National Insurance Group, Edina, Minn.; Judy S. Jackson, a director of NLC Insurance Companies, Norwich, Conn.; Jeffrey B. Kusch, president and CEO of Austin Mutual Insurance Co., Maple Grove, Minn.; Jack Rader, chief marketing officer, Farmers Alliance Companies, McPherson, Kan.; and Richard Zick, president and CEO, Utica First Insurance Co., Utica, N.Y.

Wednesday, June 20, 2012

Settlement Reached in Maine Class-Action Disability Lawsuit

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A federal judge in Maine has approved a settlement in a class action lawsuit on behalf of 40 people with long-term disabilities who wanted opportunities to live outside nursing homes.

District Judge Nancy Torreson on Wednesday approved the settlement in a suit brought against the Maine Department of Health and Human Services in 2009 on behalf of three young men with cerebral palsy who had lived in nursing homes for years. The court allowed others with cerebral palsy, epilepsy and other conditions to join the suit last year.

It claimed the state violated the Americans with Disabilities Act and the Nursing Home Reform Act by not making it possible for them to live outside nursing homes. The settlement requires the state to offer home and community-based services to those individuals.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Kentucky Business Owner Sues Police Over Raids

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The owner of a western Kentucky pizza joint and a suntan parlor is suing Hopkinsville police over drug raids at his businesses.

Luther Anderson, who owns Pizz-A-Roma and Sunkissed Tanning, which share a building in Hopkinsville, claims in the lawsuit that police officers searched the building shared by the two businesses without a search warrant.

Officers raided the building on April 24. Police say they seized 1,215 packages of synthetic drugs and 44 cases of glass pipes.

Anderson also owns The ToyBox in Oak Grove, which Hopkinsville and Oak Grove police raided April 25. Officers say they took two plastic containers of synthetic drugs.

Hopkinsville Police Chief Guy Howie told the Kentucky

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Tuesday, June 19, 2012

Aon Revenues Rise But Profit Dips in Q1

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Risk and insurance brokerage service provider Aon Corp. reported 3 percent revenue growth along with a 3 percent decline in profit for the first quarter.

First quarter net income declined to $238 million from $246 million reported last year. The profit drop was attributed to unfavorable foreign currency movement and investments.

Total revenue increased 3 percent to $2.8 billion from the prior year quarter driven by a 4 percent increase in organic revenue, partially offset by a 1 percent decrease from unfavorable foreign currency translation, the company said.

Total operating expenses increased 3 percent, or $78 million, to $2.4 billion due primarily to a 4 percent increase in organic revenue, the inclusion of $25 million of expenses from acquisitions, and a $13 million increase in intangible asset amortization expense, partially offset by a $29 million favorable impact from foreign currency translation, benefits related to the formal restructuring programs and a $15 million decline in Hewitt Associates related costs.

Risk and insurance solutions total revenue increased 3 percent to $1.9 billion compared to the prior year quarter due to 4 percent organic growth in commissions and fees and a 1 percent favorable impact from acquisitions, net of divestitures, partially offset by a 2 percent unfavorable impact from foreign currency.

Retail brokerage organic revenue increased 4 percent, reflecting revenue growth in both the Americas and International businesses. Americas organic revenue increased 4 percent primarily as a result of strong renewals across all regions and new business growth in Latin America. International organic revenue increased 4 percent driven by growth in Asia, New Zealand and emerging markets, and improved renewal business across continental Europe. Reinsurance organic revenue increased 5 percent due primarily to new business growth in treaty placements globally and a modest favorable impact from pricing internationally, partially offset by higher cedent retentions.

The company completed its change in corporate domicile of the parent company from Delaware to the United Kingdom in the first quarter. In addition, the board authorized a $5 billion share repurchase program and a 5 percent increase to the annual cash dividend.

“Our first quarter results reflect the strongest rate of organic revenue growth since the second quarter of 2007 despite overall results that were unfavorably impacted by foreign currency movement and investments to strengthen our client-serving capabilities,” said Greg Case, president and chief executive officer of the company said.

“We have taken significant steps to position the firm for long-term growth, strong free cash flow generation and increased financial flexibility as highlighted by the completed redomestication to London, the authorization of a $5 billion share repurchase program and a 5 percent increase in our dividend.”

General Star Upgrades XS Follow Form Liability Coverage

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General Star Management Co. has rolled out its revamped XS Follow Form Liability policy. Underwritten by General Star’s Contract P&C Division, coverage is provided on a non-admitted basis in all states by General Star Indemnity Co. or General Star National Insurance Co.

The product is available exclusively via wholesale brokers appointed by General Star.

A new rating tool gives General Star’s appointed wholesalers the ability to rate and quote an account within 60 seconds, including an automated quote letter. Other new features include lower rates for swimming pool exposures and reduced minimum premium for excess “GL only”.

Capacity of $5 million is available.

Judge Blocks $90 Million Insurance Settlement for Lehman Directors, Officers

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With a nod to country singer Kenny Rogers, a federal judge has refused for now to allow insurers for former officers and directors of Lehman Brothers Holdings Inc. to pay $90 million to settle a fraud lawsuit brought by investors.

U.S. District Judge Lewis Kaplan in Manhattan on Thursday directed five former officers of the investment bank, including Chief Executive Richard Fuld, to file financial paperwork by May 10 to help him decide whether the settlement is fair.

Kaplan will review not only whether their combined liquid net worth is less than $100 million, as a mediator had found, but also whether they have other assets that could be tapped to help former Lehman investors recoup their losses on tens of billions of dollars of securities.

“Without knowing whether and to what extent these defendants could withstand a judgment in excess of the insurance money now on the table, the court would be severely handicapped in coming to an informed view on the question before it,” Kaplan wrote.

The judge quoted Rogers’ signature song “The Gambler” to explain his decision.

“You ‘got to know when to hold ‘em’ by pressing on with a lawsuit, ‘know when to fold ‘em’ by taking the best settlement you think you can get, and know ‘when to walk away’ by dropping an unpromising case,” he wrote.

But in class-action litigation, “the named plaintiffs and the lawyers for the class do not have the same right to make those decisions,” he said. “(The court) is obliged to be properly informed before approving a class-action settlement.”

Other onetime Lehman officers subject to the order are former president Joseph Gregory, former chief risk officer Christopher O’Meara and two former chief financial officers, Erin Callan and Ian Lowitt.

If Kaplan approves the settlement, then these officers and nine directors also covered by insurance would pay nothing to settle, yet be released from the investors’ claims.

Israel David, a lawyer for Gregory, declined to comment. Lawyers for the other officer defendants did not immediately return calls seeking comment.

In recent years, a growing number of federal judges has refused to approve settlements because of a lack of information about their fairness.

For example, Kaplan’s colleague Jed Rakoff in November voided a $285 million fraud settlement between the U.S. Securities and Exchange Commission and Citigroup Inc. That decision is being appealed.

In the Lehman case, the investors’ lawyers, mindful of a possible “public hue and cry” from letting Lehman officers off the hook, hired former federal judge John Martin to determine the officers’ liquid net worth. Martin, the mediator, found that this sum was “substantially less” than $100 million.

Kaplan called his former colleague “highly respected” and the conclusion “no doubt well considered and correct,” but said the review did not take into account other assets. This, Kaplan said, required that he take a closer look.

“There is no sound reason why the information that has already been provided to Judge Martin should not be provided to the court (in confidence),” Kaplan wrote.

Lehman filed for bankruptcy protection on Sept. 15, 2008, in what became a major trigger of that year’s global financial crisis. It emerged from Chapter 11 in March.

The case is In re: Lehman Brothers Securities and ERISA Litigation, U.S. District Court, Southern District of New York, No. 08-05523.

Monday, June 18, 2012

Nebraska’s Tierone Banking Company Settles Lawsuit

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A lawsuit that said Lincoln-based TierOne Corp. misled investors has been settled for $3.1 million.

The Lincoln Journal Star reported the lawsuit filed in May 2010 said TierOne issued false or misleading financial statements about the bank company in an effort to boost its stock price.

The stock had traded at $35 a share in 2007 but dropped to $5.50 a share in August 2008. When the lawsuit was filed on May 20, 2010, TierOne’s stock was just 17 cents a share.

TierOne Bank was closed by federal regulators and its assets sold to Great Western Bank.

The settlement will be paid by TierOne’s insurers and covers anyone who bought the stock between Aug. 9, 2007, and May 14, 2010.

The settlement contains no admission of wrongdoing.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

RSA’s Interim Statement Highlights Organic Growth, Strong Financial Position

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UK-based RSA reported continued strong growth and financial strength in its interim management statement covering the first three months of 2012.

 Highlights included the following:
• Net written premiums of £2.2 billion [$3.565 billion] up by 5 percent with all regions delivering good growth
• Rating action and increased volumes drive the top line forward
• IGD surplus remains strong at £1.3 billion [$2.106 billion]; coverage unchanged at 2.0 times
• Net asset value per share including IAS 19 of 107p [$1.74] compared with 104p [$1.68] at 31 December 2011
• Continue to expect to deliver good premium growth and a combined operating ratio (COR) of better than 95 percent in 2012

Highlights broken down by the sectors in which RSA operates were given as follows:
• Scandinavia net written premiums of £667 million [$1.08 billion] up 1 percent – 3 percent at constant exchange
• Canada net written premiums of £303 million [$490 million] up 4 percent – 3 percent at constant exchange
• UK and Western Europe net written premiums of £937 million [$1.518 billion] up 3 percent – 3 percent at constant exchange)
• Emerging Markets net written premiums of £281 million [$455 million] up 20 percent – 21 percent at constant exchange
• Associates net written premiums of £78 million [$126 million] up 15 percent – 20 percent at constant exchange

The bulletin noted that “growth has been led by Emerging Markets, which has again been driven by an excellent performance in Latin America, and good performances in Personal lines in Canada and Scandinavia and Commercial lines in the UK.

“This has been partially offset by reductions in UK Personal Motor and Italy. We continue to benefit from our focus on Specialty and premiums grew by 6 percent at constant exchange across the Group.

“For the full year, we remain confident of delivering good premium growth, a COR of better than 95 percent and investment income of around £500 million [$810 million].”

Group CEO Simon Lee commented: “We have made a good start to the year, building on the organic growth momentum generated in 2011 with premiums up by 5 percent. Growth has been led by our areas of key strategic focus including Emerging Markets, where Latin America was a particular highlight, global Specialty lines and Household and Pet in the UK. For the full year, we remain confident of delivering good premium growth and a combined operating ratio for the Group of better than 95 percent.”

The complete report and further information may be obtained on the company’s website.

Source: RSA

Sunday, June 17, 2012

Rhode Island’s Financial Literacy Program Expanding to 44 Schools

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A financial literacy program for high school students in Rhode Island is getting a boost.

Rhode Island State Treasurer Gina Raimondo said this week that the web-based program, called EverFI, is set to expand to 44 schools over the next year. Currently, the program is used in 19 high schools.

The program teaches students about the importance of credit scores and insurance and the best ways to manage credit cards, loans, investments and savings accounts. It is sponsored by local credit unions.

Raimondo attended a demonstration of the program Monday at North Providence High School. The Democrat says financial literacy is critical to the future success of students.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Suit: Cruise Operator Negligent In Texas Passenger Death

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Carnival Cruise Lines is being sued for negligence by relatives of a woman who bled to death after falling on a water glass in her room last year.

The suit this week in federal court in Galveston, Texas says 39-year-old Angel Holcomb, of Hitchcock, became ill after several drinks at the ship’s casino, became severely drunk and accuses Carnival of failing to ensure she didn’t become impaired.

According to the suit, she went to the bathroom in her room for some water, fell and cut an artery. Her fiancé called for emergency help but the suit alleges crew members weren’t trained properly. She eventually had a heart attack brought on by blood loss.

The Galveston County Daily News reported Thursday Carnival officials declined to comment on pending litigation.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Saturday, June 16, 2012

April Weather Caused $1 Billion in Insured Losses in U.S.: Aon

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A series of severe weather events across central and southern sections of the United States in April caused upwards of $1 billion in insured losses, according to Aon Benfield’s latest edition of its Global Catastrophe Recap report.

During last month’s most notable outbreak, multiple central states sustained widespread tornado, hail and wind damage. At least 94 tornado touchdowns were recorded during a 72-hour stretch.

In Kansas, an EF-3 tornado just outside Wichita affected at least 777 homes and 165 businesses.

Additional tornado damage occurred in southwest Iowa and northwest Oklahoma, killing at least six people. Total insured losses from the outbreak were expected to reach into the hundreds of millions of dollars.

Meanwhile, at least 21 tornadoes and widespread hail in Texas damaged more than 1,100 homes alone in the greater Dallas-Fort Worth metro region. Total economic losses were estimated at approximately $1 billion, while various insurers received at least 105,000 claims with payouts in excess of $650 million.

Best Affirms, Upgrades SCOR’s No. American Subs Ratings; Outlook Stable

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Following its rating actions on the parent company, France’s SCOR SE, A.M. Best has upgraded the issuer credit ratings (ICR) to “a+” from “a” and affirmed the financial strength rating (FSR) of ‘A’ (Excellent) of the group’s non-life North American operating subsidiaries: SCOR Reinsurance Company (New York, NY), SCOR Canada Reinsurance Company (Toronto, Ontario) and General Security Indemnity Company of Arizona, also based in New York. Best has also upgraded the FSR to ‘A’ (Excellent) from ‘A-’ (Excellent) and the ICR to “a+” from “a-” of New York-based General Security National Insurance Company.

In addition Best upgraded the issuer credit ratings to “a+” from “a” and affirmed the financial strength rating of ‘A’ (Excellent) of the North American life operating subsidiaries of SCOR SE  (collectively referred to as SCOR U.S.): Delaware-based SCOR Global Life Americas Reinsurance Company (formerly known as SCOR Global Life U.S. Re Insurance Company) and SCOR Global Life Re Insurance Company of Texas.

The outlook for all of the ratings is stable.

As far as the P/C ratings are concerned Best explained that the “rating upgrades reflect the resilient capitalization and strengthened global reinsurance business profile of SCOR and its subsidiaries.

“Furthermore, the upgrades reflect the group’s strong operating performance and enterprise risk management in challenging market conditions. SCOR’s North American domiciled property and casualty subsidiaries provide geographic diversification for SCOR by providing access to the United States, Canada, Latin America and Caribbean.”

Best also indicated that, although the outlook for SCOR’s North American non-life subsidiaries is currently stable, “positive rating triggers could include continued strong operating profitability and maintenance of strong risk-adjusted capitalization.

“Negative rating triggers could include outsized catastrophe or investment losses in conjunction with a decline in risk-adjusted capitalization.”

Source: A.M. Best

Widow Gets $3.2 Million After Nursing Home Death

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The widow of an 88-year-old Colorado man who died as a result of bedsores he suffered in a Rocky Ford nursing home has been awarded $3.2 million.

An Otero County District Court jury said Rocky Ford-based Pioneer Health Care Center was negligent in the death of Henry Frazier.

According to the Denver Post, Frazier stopped eating, drinking and walking and became bed-bound when he was placed in the nursing home in 2009. He died in 2010.

Nursing homes are required to move bedridden clients every two hours so they won’t develop skin problems or sores.

Colorado Health Department officials later inspected the nursing home and cited the facility for 27 deficiencies after discovering many problems including widescale infections.

Company officials could not be reached for comment.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Friday, June 15, 2012

Burned Couple Settles Wildfire Suit For $6M

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A badly burned Santa Barbara couple has settled their wildfire lawsuit against a property owner for $6 million.

Lance and Carla Hoffman were overtaken by flames and nearly killed in the November 2008 Tea Fire, which was started when partying college students left a campfire unattended in the Montecito hills above their rented home.

The wildfire destroyed more than 200 homes.

The Santa Barbara News-Press reported the couple’s lawsuit claimed Mary K. Robinson and the trust in her name took no steps to prevent trespassing on the property.

Their lawyer David Nye says the Hoffmans have undergone dozens of surgeries and medical bills have reached nearly $5 million.

Attorneys for the owner and the insurer accepted the Hoffmans’ settlement demand on April 19 and agreed to pay in full.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Earnings Report: Flagstone Re

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Selected earnings highlights from Luxembourg-based Flagstone Re for the first quarter of 2012 are as follows:
Q1 2012              Q1   2011          
Gross premiums written ————       $170.2 mn         $352.7 mn
Net premiums written  —————      $ 85.329 mn     $233.925 mn
Net premiums earned  ———–             $113.745 mn    $201.053 mn  
Net income (loss) ——————-        $39.20 mn        ($161.2 mn)             
Operating income (loss)  ————      $7.6 mn             ($148.7 mn)
Net investment gain/loss* ———–     $18.1 mn           $10.8 mn 
Net investment income —————-   $5.1 mn             $9.2 mn
*realized and unrealized

Q1 combined ratio – 97.5 percent (177.6 percent in Q1 2011)

As the above figures indicate Flagstone Re has followed its decision, announced at the end of October, to restructure the company.  The earnings bulletin notes that it “entered into definitive agreements to divest its former Island Heritage and Lloyd’s reportable segments, respectively. The Island Heritage transaction was completed on April 5, 2012, as previously announced. The Lloyd’s transaction is expected to be completed before the end of the second quarter of 2012. These divestitures are part of a strategic business realignment to address changing business conditions, refocus the Company’s underwriting strategy on its property catastrophe reinsurance business and eliminate operations that absorb capital and produce lower returns.”

CEO David Brown reviewed those decisions and the progress that has been made towards implementing them. He stated: “I am pleased to say that we achieved these goals in the first quarter, and have started 2012 with a return to profitability, despite the ongoing challenging environment in the industry. 

“Flagstone’s improved performance this quarter reflects the benefits of improving rates in its core business, which partially offset the reduction in income as the Company pares back its risk levels. It also begins to demonstrate the benefits of our expense saving initiatives, as well as the avoidance of significant exposure to first quarter 2012 loss events.

“Flagstone continues to make significant progress on its business realignment as it establishes a more nimble, cost-effective and opportunistic business. The Company remains focused on leveraging the existing strengths in Flagstone’s core businesses in order to deliver enhanced value for its shareholders.”

The complete report and information on accessing the earnings conference call may be obtained on the company’s website.

Source: Flagstone Re

Thursday, June 14, 2012

Protective Specialty Launches Allied Health Medical Professional Liability Product

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Protective Specialty Insurance Co. will now offer an allied health medical professional liability product. It is designed for both entities and individuals in more than 250 subclasses. In addition to customized insurance protection, policyholders will also receive free pre-claim assistance from Wilson Elser Moskowitz Edelman & Dicker LLP, an insurance defense law firm.

This new product is part of Protective Specialty’s expansion into the professional liability market. The allied health medical professional liability product is complements the company’s existing offerings, which include insurance agents errors & omissions, miscellaneous professional liability, real estate professional liability, architects & engineers professional liability, technology professional liability and lawyers professional liability.

Protective Specialty is a subsidiary of Protective Insurance Co.

Colorado Man Seeks $5 Million From BP For Firing

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A Durango, Colo. man is suing BP claiming he was fired for reporting safety violations by a BP contractor.

Larry Holland, an employee of Grand Junction-based Pure Automation Inc., is seeking $5 million.

BP America told the Durango Herald the company does not believe the accusations.

Holland says company officials tried to get him to retract a report after he told them safety violations last year could have caused a gas explosion that could have killed seven people in a building that had a gas leak.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

OSHA Proposes $137K Fine For Wisconsin Company

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A River Falls, Wis. company is facing $137,000 in potential fines following a trench collapse last year that killed a 19-year-old worker.

The Occupational Safety and Health Administration Five issued five citations this week against Gordy’s Pumping Service.

OSHA says the victim and another worker were working in a 6-foot-deep trench in November when one wall caved in. The other worker wasn’t hurt.

The agency levied five safety violations, including one for failing to take proper precautions to prevent a trench collapse. Gordy’s has 15 business days to comply with the fines, contest the citations or request a conference with OSHA.

A message left with the company was not immediately returned.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Wednesday, June 13, 2012

Atlas Names McQuaid, Junker to Client Consulting Division

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Honolulu, Hawaii-based Atlas Insurance Agency Inc. named Ron McQuaid and Peter Junker as account executives to its client consulting division.

McQuaid and Junker will be responsible for new sales and servicing of commercial clients.

McQuaid has more than 20 years’ experience.  Prior to joining Atlas, McQuaid was president and founder of TransPacific Insurance Services, a Hawaii-based insurance brokerage that specialized in commercial property and casualty insurance as well as personal lines insurance.

Junker has more than 25 years’ experience.

Atlas offers a full range of consulting services in the area of property and casualty insurance.

California State Fund Cancels Layoffs

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California’s State Compensation Insurance Fund is cancelling plans to lay off hundreds of workers, the Sacramento Bee is reporting.

State Fund President and CEO Tom Rowe issued a message to staff that stated 1,300 workers have left since the state’s largest workers’ compensation insurer announced last year it would axe up to 1,800 jobs, according to the Sacramento Bee story, which stated the number of employees remaining is small enough for State Fund to cancel the layoff.

Established in 1914 by the state legislature, State Fund is California’s largest provider of workers’ compensation insurance.

Rowe briefly addressed the attrition when State Fund released its annual report two weeks ago showing just over $1 billion dollars in net premiums earned, a drop from 2010’s figures.

It was in October of last year the entity announced a restructuring of State Fund to be implemented this year, resulting in a reduction in workforce of from 1,500 and 1,800 positions. The restructuring is expected to save the State Fund $200 million a year. Rowe had said following State Fund’s earnings release that many of those workers already took buyouts and voluntarily quit.

Tuesday, June 12, 2012

Reinsurers Resilient Despite Catastrophes, Economic Uncertainty, Says A.M. Best

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In a special report A.M. Best summed up the financial position of the global reinsurance industry as “resilient” in light of  “the volatile economic conditions and the frequent and severe loss events of 2011.”

Best pointed out that the only year that produced larger cumulative insured catastrophe losses than 2011 was 2005, when hurricanes Katrina, Rita and Wilma (KRW), in combination with other, smaller events, produced about $125 billion in industry losses.

“The numerous loss events of 2011 came very close to that tally with approximately $110 billion of losses. This time, however, the market responded without any significant dislocation or squeeze on capacity. The January and April 2012 renewals for the most part were orderly and timely. While pricing, terms and conditions improved for property catastrophe covers, the broader market benefited from a stable supply of reinsurance capacity, and pricing generally remained flat,” Best wrote in its report.

At the end of 2010, market observers questioned what it would take to turn the market. Best said it had posed the same question in April 2011. “The typical answer then was a significant loss of between $50 billion and $100 billion. Little did anyone know that 2011 would produce cumulative losses exceeding $100 billion,” the rating firm said.

Best then examined the often-asked question as to why the market did not turn more broadly, considering all that 2011 offered: significant catastrophe losses, record low investment yields, uncertain financial markets and the downgrade of U.S. sovereign debt.

According to Best, the simple answer is that reinsurance capacity remained ample despite the magnitude of losses and unrelenting headwinds. Reinsurers absorbed their share of losses and ended the year at approximately the same level of capital as they started.

“In fact, few reinsurers experienced cumulative loss impacts beyond their stated loss tolerances. For the majority of global reinsurers, the losses in 2011 amounted to nothing more than a negative earnings event,” Best said.

Best’s report cites several reasons that contributed to this resilience including lessons learned from previous large catastrophic events such as enterprise risk management and more prudent capital management strategies.

Also, Best credits advances in catastrophe and economic capital models. “These tools significantly helped a reinsurer’s ability to better allocate capital within complex risk portfolios. The models, while not perfect, helped keep both individual and cumulative losses in 2011 within stated risk tolerances for most of the global reinsurers,” Best said.

Best said that global reinsurers historically have taken a proactive approach to modeling, avoiding reliance on any one model and in many cases developing their own proprietary cat models. “This has tended to result in a more conservative view of risk,” Best said.

It also appears likely that the reinsurance industry will continue along this path, as ERM practices evolve. Best cited the fact that, historically, reinsurers have considered places such as Australia, New Zealand, and Thailand to be “diversifying, nonpeak zones” in relation to their peak zones. These zones, or “cold spots,” were not expected to produce significant losses, and as a result often were written at lower margins. “That notion now has been challenged, and reinsurance companies have already responded by reallocating capacity and demanding higher rates,” Best said.

Best also cited the “conservative capital management strategies” and the requirements that the industry “maintain rigorous capital stress tests to simulate the impact of catastrophic losses on a company’s capitalization” as additional factors contributing to the reinsurers’ resilience.

Best said reinsurers have tended to maintain a capital cushion in excess of the capital stress hurdle to ease rating agencies’ post-event concerns and maintain financial flexibility. “This cushion enabled reinsurers to withstand the 2008 financial crisis, when asset values eroded, capital markets became constrained, and reinsurers were concerned about their ability to access capital markets. It also played a role in the curtailment of share repurchases despite continued low stock valuations,” Best said in its report.

Source: A.M. Best

Tornado Cost Wichita, Kansas Area $146.3M

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Sedgwick County, Kansas, officials say the tornado that hit Oaklawn and southeast Wichita on April 14 caused an estimated $146.3 million in damage.

County officials say the tornado damaged or destroyed 776 homes and 86 businesses, and affected another 3,481 residences and 165 businesses. That total includes 11 homes that were totally destroyed.

The Wichita Eagle reports mobile homes are not included in that figure because they are classified as personal property. In the Pinaire Mobile Home Park, 92 mobile homes suffered more than 50 percent damage.

Other damage reported was to power poles, traffic signals and street signs.

The city of Wichita is still estimating the cost of repairing a sewer treatment plant that lost much of its roof.

Spirit AeroSystems, which was hit hard by the tornado, said its employees were returning to work after a massive cleanup of tornado damage.

Spirit CEO Jeff Turner says about 1,000 people worked to clean debris, test equipment and make other repairs since the Wichita company took a direct hit from the EF-3 tornado.

The Wichita Eagle reports some production at Spirit resumed on April 20 but full production will start today.

But Turner says work will be a bit chaotic at first as the company ensures all parts and other supplies are available. Suppliers have been told to resume deliveries but Turner says it will take time to rebound from lost production.

And some of the repairs at the plant are temporary until permanent repairs can be made.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Florida Governor Vetoes Cat Fund Tax-Credit Plan

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Florida Governor Rick Scott has chastised state lawmakers for failing to fully consider a controversial plan to use state premium tax credits to help shore-up the state’s homeowners’ reinsurance fund before attaching it to the state budget.

Scott used his line-item veto power to eliminate the Florida Insurance Tax Pre-Payment Program that would have allowed insurers and financial institutions to purchase up to $1.5 billion in tax credits. The money would have gone to help to cover a potential $3.2 million shortfall in the Florida Hurricane Catastrophe Fund.

Sponsored by Senator J.D. Alexander (R-Lake Wales), primarily at the behest of Wells Fargo, the plan was tacked onto the state’s budget during last minute negotiations without consulting other lawmakers and state regulators.

However, the plan came under fire from Cat Fund officials, other lawmakers, and insurers on a variety of financial and administrative issues. Among the concerns expressed was that the plan would have marked the first time the fund ever borrowed money directly from the state, which could have implications on the state’s credit rating.

“While the stated purpose of this program is to provide an additional funding mechanism for the Florida Hurricane Catastrophe Fund, the language was not fully vetted through the committee process,” stated Scott in his veto message.

The plan had envisioned insurers and other financial institutions purchasing tax credits that could have been used to reduce their state premium taxes by paying them up to 10 years in advance. The money then would have been lent to the Cat Fund, which would have been required to pay it back in annual installments.

Cat Fund officials had vocally opposed the plan, which they said was passed without their input.

For starters, they said there is no way to calculate just how much money would be raised by the program or its costs, making it impossible to determine how and where the money would be used.

Cat Fund Executive Director Jack Nicholson said the fund prefers its current structure that relies on bonds where the fund knows upfront how much money is raised and what the interest rates and administrative costs are.

“We prefer to go the pre-event bonding route,” said Nicholson. “It gives us certainty.”

By vetoing the bill, Scott also axed several other noncontroversial proposals aimed at streamlining the process that employers use to claim an exemption from having to purchase workers’ compensation coverage.

Under current state law, up to three corporate officers and three members of a limited liability company that have at least a 10 percent stake in the company can claim not to be covered under a workers’ compensation policy. Among the documents the companies must file with the state is a notarized application and construction company officers must show proof they own a share of the company in the form of a stock certificate.

As of June 2011, more than 1 million exemptions were on file with the state, a number that has dropped due to poor economic conditions. In fiscal year 2010-2011, construction industry exemption applications dropped 9 percent and non-construction exemptions by 9.6 percent.

The bill would have eliminated those two requirements and would have allowed employers to file or a workers’ compensation exemption form electronically. Applicants would have also had to provide their date of birth and their driver’s license number.

The bill would also have deleted a requirement that regulators publish an annual report on the worker’ compensation market.

Monday, June 11, 2012

Maine merchant gets 2 1/2 years in prison for insurance was

The owner of a Kittery, Maine, medical equipment supply company has to 2 1/2 years in prison for health care fraud and lie on an application for a loan from the U.S. small business administration condemned.

Peter Enzinger was sentenced to three years probation and ordered to pay $200,000 in restitution within almost.

A federal judge Enzinger of now defunct companies, seacoast sleep also fine solutions, $50,000 and ordered to pay the company $220,000 in the context of restitution.

Prosecutors say that insurance carriers between 2005 and 2010 the 44-year-old Enzinger cheated by billing products delivered to patients and more expensive products than those actually delivered.

The Bangor Daily News reported that his lawyer said inexperience as an entrepreneur resulted in cash flow problems, which prompted the fraud.

Copyright 2012 associated press. All rights reserved. This material cannot be published, sent, rewritten or redistributed.

Hurricane Recovery Money Redirected to Superdome Upgrades

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The Jindal administration has gotten permission to redirect federal hurricane recovery money from housing aid programs to Superdome upgrades.

Federal approval was discussed on April 19 in the Senate Finance Committee and was confirmed by Christina Stephens, a spokeswoman for the governor’s Division of Administration.

Nearly $7 million is being moved from recovery programs, including fisheries assistance, small business loans and housing aid, to another program that will help pay for improvements to the Superdome, where the New Orleans Saints play.

The proposal needed approval from the federal Department of Housing and Urban Development, which oversees the spending of the billions of dollars in block grant aid allocated to Louisiana after hurricanes Katrina and Rita in 2005.

U.S. Rep. Cedric Richmond, a Democrat from New Orleans, had asked for the money shift to be scrapped, saying the plan was ill-advised because people still are struggling to rebuild more than six years after Katrina.

Gov. Bobby Jindal’s commissioner of administration, Paul Rainwater, said the Disaster Recovery Unit was shifting unused dollars returned after several parishes said they weren’t needed for the programs to which they had been divvied up.

The money is being sent to a local government infrastructure program, and from there, will be used for Superdome repairs and improvements that didn’t qualify for FEMA aid after Katrina. More than $40 million from the fund already has been used on the domed stadium.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Texas Governor Again Renews Drought Disaster Declaration

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Gov. Rick Perry has renewed a proclamation declaring Texas a disaster due to the drought.

Perry renewed the disaster status on April 20, extending a similar proclamation from last July.

The governor initially declared the drought a disaster in December 2010, and a severe lack of rainfall still plagues much of the state.

The proclamation allows municipalities to apply for state assistance in dealing with the drought’s impacts, including fighting and recovering from wildfires. It also officially notes the added strain on state water resources.

Texas endured the worst-single year drought in its history through last summer, and a relatively wet winter has been followed by little rainfall statewide in recent weeks.

The drought also helped fuel the costliest wildfire season in terms of property damage in state history last year.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Sunday, June 10, 2012

New York to Get $61M in Drug Company Settlement on Vioxx

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New York Attorney General Eric Schneiderman says New York will get $61 million from last week’s national settlement with drug maker Merck & Co. to resolve an investigation into the marketing of the painkiller Vioxx.

A federal court has accepted Merck’s guilty plea to one misdemeanor count of violating marketing laws.

The Justice Department says the Whitehouse Station, N.J., company marketed Vioxx as a treatment for rheumatoid arthritis without federal approval for almost three years and made false settlements about its cardiovascular safety.

The drug was taken off the market in September 2004 after evidence showed it doubled the risk of heart attack and stroke.

The company says the government recognized Merck’s cooperation, and it recorded a $950 million charge in October 2010 in anticipation of the settlement agreements.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Returning Soldiers Involved in More Car Crashes: Study

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U.S. military personnel have 13 percent more car accidents in which they are at fault in the six months after returning from overseas duty than in the six months prior, a USAA study revealed on Tuesday.

USAA, a major insurer catering specifically to the armed forces and their families, based its study on 171,000 deployments by 158,000 of its members over a three-year period ending in February 2010, when combat was still raging in Iraq and Afghanistan.

In many cases, USAA found, soldiers took the driving style that kept them alive on the streets of Baghdad and Kabul and applied it to the suburban roads at home.

The results were most dramatic for returning members of the Army and Marines, whose accident rates rose 23 percent and 12.5 percent, respectively. (Rates were up 3 percent for the Navy and 2 percent for the Air Force).

Not surprisingly, given the experience many soldiers had with improvised explosive devices (IEDs) and other roadside obstacles in combat zones, USAA found “objects in the road” to be the most cited of the 13 accident causes it studied.

The insurer also found a direct correlation between the number of deployments and the rate of accidents — those deployed three or more times had 36 percent more incidents, those deployed twice had 27 percent more and those deployed only once had 12 percent more accidents. A 2009 military study found that, since 2001, deployments for reservists had averaged from 8 to 14 months in duration.

There was also correlation by age (soldiers under 22 were involved in more wrecks than those over 29) and by rank (the more senior a soldier the lower the number of accidents).

“USAA has shared its research with each military branch’s safety center commanders. USAA has also shared the study with academics and traffic safety experts and has taken steps to make USAA members aware of the behind-the-wheel risks for returning troops,” the company, which had 8.8 million members as of the end of 2011, said in the report.

The Army’s Office of Public Affairs declined to comment on the results of the study, saying it was the company’s research project and not the government’s.

The USAA survey adds to the growing body of data on the psychological and physical effects of deployment to war zones.

The U.S. Army said in January that violent sex crimes committed by active-duty soldiers have almost doubled over the last five years, due in part to the trauma of war. In March, Army researchers said one in five soldiers returning from Afghanistan or Iraq after a concussion develop chronic headaches.

(Reporting By Ben Berkowitz; editing by Gunna Dickson)

Saturday, June 9, 2012

Strategic Insurance Agency Alliance Adds 5 Midwest Agencies

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AppId is over the quota

The Strategic Insurance Agency Alliance (SIAA) announced it signed five new agencies in the Midwest during March.

The new Midwest agencies are: Mraz Insurance Services of Mokena, Ill.; L&K Insurance Products of La Porte, Ind.; M2 Insurance Agency of Aurora, Ill.; 1st Choice Insurance Group of Gahanna, Ohio; and Pinnacle Midwest Insurance Advisors of Plymouth, Minn.

Nationally, SIAA signed 40 new member agencies in March.

SIAA members created more than $780 million in new premium growth in 2011.

Source: SIAA

Missouri Bill Would Limit Whistleblower Protections

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AppId is over the quota

About a month after Democratic Gov. Jay Nixon vetoed changes to Missouri’s workplace discrimination law, Republicans lawmakers are pushing a pair of scaled-back measures that could make it more difficult for workers to seek legal protection for reporting wrongdoing by their employers.

In March, Nixon vetoed legislation that would have required workers who bring wrongful termination lawsuits to prove discrimination was a motivating factor — not simply a contributing factor — in the employer’s action. If an employer were to wrongfully discriminate, the legislation would have capped the amount of punitive damages a plaintiff could recover at $300,000 or less, depending on the size of their former employer.

Leaders in the Republican-controlled House and Senate have conceded they don’t have enough votes to override Nixon’s action. Instead, the GOP is putting forward two bills that narrow who is eligible for whistleblower protection, when whistleblowers could win a lawsuit against their employer and how much money they could recover.

Nixon’s veto message focused mainly on the parts of the original legislation that related to workplace discrimination, though he did take issue with that measure’s whistleblower provisions, saying they would discourage people from reporting wrongdoing at the workplace.

But the GOP has pressed forward on the new bills, which have been endorsed by a House workforce development committee and could be taken up by the full chamber in the coming weeks.

A “whistleblower” is someone who reports wrongdoing at his or her place of employment. People who make such reports are often given protections to ensure that they are not the target of retaliation from their employers. Missouri does not have an official whistleblower law. Instead, the state’s courts have decided who can sue and how much they can recover based on previous case law.

The new bills would limit “whistleblower” status to someone who reports an act at their workplace that is illegal or that clearly violates the state’s “public policy” as expressed in its constitution, laws, rules and regulations. In order to qualify, the employee would have to make a report directly to a government agency, law enforcement or the company’s human resources department.

A worker also could qualify for whistleblower protections if he or she refused to carry out a direct order from an employer that would break the law.

In a similar fashion to the vetoed workplace discrimination legislation, the new measures would require workers who bring lawsuits alleging that they were fired because of their whistleblower status to prove that was a motivating factor in their employer’s action. It would similarly cap the damages they could recover.

Sen. Brad Lager, the sponsor of the Senate version of the workplace discrimination bill, said the original measure was aimed at protecting employers from frivolous lawsuits and making the state more business-friendly. He said that passing the new whistleblower measure would represent at least partial progress toward that goal and that lawmakers may try to pass a discrimination measure again next year.

“If the majority of the Republican caucus in the Senate feels that this is something worth doing, then we’ll move forward,” said Lager, R-Savannah, of the new bills. “The frustrating part for me is the (discrimination) provisions that have been taken out. Those issues are still important. Those problems still exist. Those challenges are not going away.”

Among those opposed to the new measure is St. Louis attorney Jerome Dodson, who said its limitations on what qualifies as a wrongful act could make it difficult for an employee to decide whether he or she should report an employer in the first place.

“I believe it will have an enormous chilling effect upon employees,” Dodson said.

Whistleblower bills are HB2099 and SB592.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Associated General Contractors of California, Zurich Partner on Program

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AppId is over the quota

The Associated General Contractors of California (AGC-CA) and Zurich have collaborated to provide insurance services for its members.

Under the agreement, Zurich in North America will provide AGC-CA members with insurance products for workers compensation, general liability, auto and property coverages as well as comprehensive safety and risk management services.

AGC represents more than 1,000 construction companies and construction related firms throughout California. AGC members represent some of the state’s smallest business enterprises to some of the nation’s largest construction companies, with annual construction volumes ranging from less than $100,000 to more than $100 million. AGC members perform the majority of non-residential construction, and build the state’s highways and bridges, office buildings, hotels, shopping centers, plants, refineries and manufacturing facilities, as well as schools, colleges and universities, hospitals, retirement homes, and health care facilities.

Friday, June 8, 2012

Current Market Not Yet a ‘Classic’ Hard Market: P/C Executives

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AppId is over the quota

The current property/casualty market is not a “classic” hard market, yet anyway.

While prices are clearly rising in certain lines including property and workers’ compensation, other conditions of a traditional hard market are not in place, according to property/casualty brokerage and insurer executives.

“There are multiple markets out there,” Eric Anderson, CEO, Aon Risk Solutions, Americas, told an audience at the Risk and Insurance Management Society (RIMS) meeting last week in Philadelphia.

A market is defined by more than just pricing, according to the Aon executive. The dynamics include terms and conditions, adequacy of limits, individual carrier appetites, geography and other factors in addition to pricing.

Anderson said Aon’s data is “still tracking a soft market” in several areas. Terms and conditions “are still very competitive” and customers appear able to get whatever limits they need.

“I don’t see customers struggling to get what they need,” he said.

As for pricing, this has not yet attained classic hard market status either. “If you have to ask [if there is a hard market], the answer is ‘no,’” he said.

David J. Bidmead, CEO, Marsh, agreed, characterizing today’s market as one in “active transition” but not yet a classic hard market.

“We are in this period where we are moving from one market to then next,” Bidmead said.

“Increases are happening especially in property and workers’ compensation but so are reductions in other lines and that reality illustrates this is not a classic hard market,” he told the risk managers.

This market is “considerably different” from previous cycles, according to J. Patrick Gallagher, chairman, president, CEO, Arthur J. Gallagher & Co. Whereas previous cycles were “driven by significantly reduced cash flows and fear about the balance sheet…this one is being driven by the income statement and lack of return on investment,” the brokerage leader said.

“This cycle now to me is many cycles,” he said. He likened it to the situation in 1992 after Hurricane Andrew when the property market hardened but the rest of the market did not.

“Underwriters have information on where they are making money and where they are not. They know exactly what their returns are on their portfolio and they’re not going to just write cover to lose money. I don’t find that to be unhealthy,” Gallagher said.

Peter Eastwood, president, CEO, Chartis, Americas, said he agrees it is a “market in transition” with property price increases “leading the charge” along with movement in workers’ compensation and some excess casualty.

He called the move toward higher prices “appropriate and necessary” in light of record catastrophes in 2011 and a long history of carriers not earning their cost of capital. He said the industry has to get to better pricing to earn its cost of capital.

Chartis itself ended 2011 with an overall 4.5 percent increase across all of its U.S. business.

John Lupica, chairman, ACE USA, termed today’s market “rational and stable” while also agreeing it is not yet a classic hard market.

He seconded the analysis that it is an income statement driven market. “A real hard market is a period of excess returns over cost of capital and we are not there for most companies,” Lupica said.

While it may not be a classic hard market with conditions and prices hardening  everywhere, one thing is certain.

“Prices have stopped falling worldwide for sure,” said Shivan Subramaniam, chairman, CEO, of commercial property insurer FM Global.

He said there is good reason that property is leading the way in pricing, citing the 2011 natural catastrophes. More gradual change is acceptable in other lines.

“We don’t want anything dramatic happening. We want a rational pricing situation with capacity. All of us are rooting for a gradual process to get to decent returns,” Subramaniam said.

Risk managers asked if small and middle market businesses are dealing with the same insurance market conditions as large Fortune 100 corporations.

For the most part, the executives said they expect mostly similar conditions.

Marsh’s Bidmead said that middle market businesses have been hurt more by the recession, are more sensitive to price, and are more likely to shop around than bigger accounts. “These clients are really challenging their relationships,” he said.

Chartis’ Eastwood said that generally the small business segment sees less movement—it does not experience either the hardest of the hard market or the softest of the soft market. He said some regional carriers are adding to the supply available to these segments that he agreed are more likely to shop around.

Federal Disaster Assistance Denied for Oklahoma

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AppId is over the quota

Gov. Mary Fallin’s office says her request for federal assistance to individuals and businesses affected by a tornado that killed six in Woodward has been denied.

A news release said that Fallin will now ask the U.S. Small Business Administration for a disaster declaration for Woodward County.

The early morning tornado on April 15 left three girls 10 and younger and three men dead.

Preliminary damage assessments found the storm affected 224 homes and businesses in the county. Of those, 73 were destroyed, 22 had major damage and 21 had minor damage.

An SBA disaster declaration would provide for low interest disaster loans for renters, homeowners and business owners to repair or replace property damaged by the severe weather if it is not covered by insurance or other assistance programs.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Thursday, June 7, 2012

Montana GOP Candidates Embrace Insurance Industry Bills

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AppId is over the quota

Republican candidates for governor said on April 19 at a forum that they would back key insurance industry legislation if elected, and largely held similar positions with each other on a variety of issues.

Most of the GOP candidates attended the event hosted by the National Association of Insurance and Financial Advisors.

The candidates were largely supportive of industry legislation, such as the long-debated proposal to let insurance companies consider gender when evaluating risk. Attempts to repeal the state’s unique “unisex” insurance law banning such risk analysis have failed many times over the years.

The insurance industry argues they could offer lower rates and more competition if Montana conformed to other states. Supporters of the old law, led by Democrats, have argued that it isn’t fair to establish different rates based upon gender, and say the 28-year-old anti-discrimination law has worked well for years.

But the Republicans said they would back the industry at next year’s legislature.

“It is crazy law. You all know that,” former state Sen. Corey Stapleton, who works in Billings as a financial consultant, told a small crowd of industry workers.

Republicans have a crowded primary, topped perhaps by money leaders such as former officeholders Rick Hill, Stapleton and Ken Miller. Hill and Stapleton both appear to be strongly advocating business issues, while the Miller campaign is more aggressively courting the party’s more conservative wing.

Former Washington, D.C., business executive Neil Livingstone, who is putting his own money into the race, is shaking things up with a promise for a “revolution” that brings big change to state government. At the forum, though, he also took a unique position for a statewide candidate and called for the repeal of the state’s term limit law because he argues it creates broken relationships in the legislature and dysfunction.

Otherwise, the candidates largely agreed on issues from reducing government to developing natural resources to bashing the federal health care bill, promising to use the office to challenge it.

Hill, a former congressman, used his opening comments to reinforce his campaign theme that legal and regulatory constraints on business in Montana “act as a wet blanket over our economy.” He says Montana ranks too low in personal wages and cost of doing business. He promised to go through every state program.

“We will eliminate programs, we will find some that need more resources, but we will make them all more efficient,” Hill said.

Former Department of Transportation Director Jim Lynch said he reduced the number of employees at the agency. He left last year amid a dispute with the governor’s office over the hiring of his daughter.

Lynch differed a bit from the other candidates by arguing the state’s laws don’t prevent natural resource and business development. He argued the problem is instead “the attitude in the agencies.”

Political newcomer Bob Fanning of Pray, who had a rocky start to his campaign in trying to secure a running mate, is promising a “states’ rights” ticket and aligns himself with conservative groups like the “Oath Keepers” and touts his support of GOP presidential candidate Ron Paul

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Arkansas Doctor Convicted in Bombing Loses Lawsuit

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AppId is over the quota

An Arkansas doctor convicted in a bombing that nearly killed the head of the state medical board lost a separate wrongful death case on April 20 and was ordered to pay $300,000 to family members of a former patient who died.

Randeep Mann, who ran a pain clinic in Russellville, had his license to prescribe narcotics suspended by the Arkansas State Medical Board after several of his patients suffered fatal overdoses. Jurors in the criminal case found him responsible for the 2009 bombing outside the home of Dr. Trent Pierce, the board chairman, who prosecutors said Mann targeted in retaliation for the board’s decision.

In the separate wrongful death case, Mann was sued on behalf of the estate of Robin Dee Woodall. The trial began April 16 in Dardanelle, The Courier in Russellville reported.

The lawsuit alleged that Mann prescribed Woodall at least 10 different medications before she died in 2003. An autopsy report showed she died of multiple drug intoxication, according to the lawsuit, which sought more than $75,000.

Attorneys pointed to incidents in 2003 and 2006 when Mann was sanctioned by the medical board for violating the state’s medical practices law.

Mann’s lawyers had said they were prepared to defend his care of Woodall. They also argued in court filings that the civil case should have focused only on Woodall’s case, not Mann’s entire medical career.

Mann is incarcerated at federal prison in Pennsylvania, according to the Bureau of Prisons website. He was sentenced to life in prison last year after he was convicted of a weapon of mass destruction count and other charges. Mann is appealing those convictions.

Investigators said they found nearly 100 grenades and a cache of machine guns at or near Mann’s home, though almost all of the firearms were legally registered.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Wednesday, June 6, 2012

Pennsylvania Farmers Highlight Safety on Rural Roads

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AppId is over the quota

Jim Rexroth knows what happens when drivers don’t pay attention to large farm equipment traveling on rural roads.

The Lower Windsor Township, York County, Penn., farmer and his employees at Rexroth Farms have been involved in “small fender benders” several times in the past couple years, he said.

“It was things like farm equipment turning left as a car was trying to pass or a car underestimating the width of something,” he said. “We’d like to prevent these kinds of things if we can.”

Last Wednesday, Rexroth and several officials from various organizations came together at Rexroth Farms to talk about safety on the roads as planting season begins.

There were 92 crashes and four fatalities on Pennsylvania’s roadways involving farm equipment, said Mike Keiser, an engineering executive with PennDOT. By sharing the roads and being patient, drivers can prevent most of these crashes.

“We have to share the roads with a lot of different things,” Keiser said. “We’re all out there together.”

Farmers — who are allowed to drive their equipment on the roads — will often try to get out of the way when they can, but they need drivers to be patient and wait for equipment to find a place to pull over, said Carl Shaffer, president of the Pennsylvania Farm Bureau and a farmer from Columbia County.

“We’re aware we’re slowing down traffic,” he said.

But farmers also need to extra take precautions and make sure they’re doing everything they can to avoid accidents on the road, Rexroth said. The farm “spares no expense” when it comes to adding flashers and lights to their large equipment to alert other vehicles of their presence on the road and avoids traveling during peak driving hours, he said.

“We don’t want to be on the road during (busy) times,” he said.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

ACE Appoints Hollenberg to Head Canada Operations; Brosnan for P/C

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AppId is over the quota

The ACE Group has announced new leadership appointments in its Canadian operations.

Andrew Hollenberg, Regional Senior Vice President, Accident & Health (A&H) and Life for ACE Europe, has been appointed Country President, ACE Canada. He will oversee ACE’s property and casualty, life and accident and health insurance operations in Canada.

Hollenberg joined ACE in 2000 as head of the A&H business in Canada. In his most recent role, he successfully led ACE’s A&H and Life operations in Europe, the Middle East and Africa, comprising 27 countries including the distribution of personal accident, supplemental health, term life, creditor and niche personal lines products to both group and individual customers. He will relocate from London to Toronto.

David Brosnan, Country President, ACE Canada, has been appointed Division President, ACE Canada Property and Casualty and Chief Underwriting Officer, ACE Canada, responsible for the continued success of ACE Canada’s property and casualty franchise. He has more than 25 years of insurance industry experience and joined ACE in 2005. In addition to serving as Country President, ACE Canada for more than three years, he previously served as Division President, ACE Casualty Risk.

Source: ACE Group