Missouri Senator seeking insurance inspection business

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Aftershocks 2011 earthquakes continue in Virginia

Virginia still aftershocks of earthquakes last summer.
The US Geological Survey says that a 3.1 magnitude aftershock Sunday, 25 March, Southwest has occurred about 8 km at 23: 21 by Louisa and 8 km south-southwest of mineral.
Mineral was the epicentre of the earthquake of 5, 8-brightness, launched on 23 August 2011.
No damage was reported.
Dozens of aftershocks have occurred since the earthquake. Seismologists say that aftershocks can continue for months.
Copyright 2012 associated press. All rights reserved. This material cannot be published, sent, rewritten or redistributed.

Motorcycle safety campaign under way in Delaware

State officials have launched a public awareness campaign about the safety of motorcycles.
The respect your ride campaign includes right-traffic monitoring and activities awareness of police station in Delaware. It runs until September.
The police crashes leads patrols on roads with a high number of motorcycle, affected with an emphasis on acceleration and motorcyclists.

The campaign includes also posters, stickers and radio and online-show to share with focus on safety of motorcycles and promote the driver the road with motorcyclists.
A highlight of the campaign is an April 28 his motorcycle awareness day in Dover.
State officials note that eight there 18 motorcycle fatalities in Delaware last year than in the year before.
Copyright 2012 associated press. All rights reserved. This material cannot be published, sent, rewritten or redistributed.

Field and Ross Retire from CompWest

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CompWest Insurance Co. COO und Mitgründer Ron Field und Lynn Ross, Vice President für Marketing und Business Development, sind von der San Francisco, Kalifornien-basierten Unternehmen in den Ruhestand.
Des Feldes Ruhestand ist effektiv 13. April. Er wird weiterhin als Auftragnehmer für einen reibungslosen Ubergang seiner Verantwortung arbeiten. Ross Ruhestand ist am 31.12. wirksam. Sie bleibt in ihrer aktuellen Rolle bis zum Ende des Jahres zu ermitteln ihr Ersatz.
CompWest werden beide Positionen füllen. Die Feldposition wird durch ein Vice President of Produktmanagement und versicherungstechnische ersetzt werden.
CompWest ist in Lansing, Mi.-basierten Unfall Fonds Holdings Inc., ein Arbeiter ' Ausgleich Versicherer.

Grants for lead remove 3 Indiana cities

The cities of South Bend, Elkhart, and Fort Wayne were awarded scholarships worth$ 2.3 million to clean up lead from vulnerable homes, public awareness about lead poisoning, childhood and training for workers in lead security methods.
The Centers for disease control and prevention according to heavy demands to lead can cause coma, convulsions, and death, while lower levels reduce intelligence, impair hearing and can cause other problems.
Director Jon Gant the U.S. Department of housing and urban development of the Office of healthy homes and lead hazard control, says that the grants show that a priority is safe and healthy homes.
South Bend is planning the funds use 350 residential units, clean up, while 300 in Fort Wayne and 140 in Elkhart is cleaned up.
Copyright 2012 associated press. All rights reserved. This material cannot be published, sent, rewritten or redistributed.

Michigan Lawmakers Again OK Motorcycle Helmet Repeal

Another attempt make Michigan an act of a State legislator, the motorcyclists wear helmets required.
The Senate gave final legislative approval to a lifting of the ban on Wednesday 24-14 vote. The measure continues to the Republican Governor, Rick Snyder, and it is not clear whether he will sign it.
Snyder has said he wants only the helmet law in the context of the broader auto insurance reform to tackle. But proposals for more radical reform seem gridlock in the legislature.
The pending helmet proposal would drivers allow, 21 or older without helmets, if they meet certain insurance and experience conditions.
The legislator has bills to repeal the mandatory motorcycle helmet State law previously, passed but the Bills twice by then Governor Jennifer Granholm.
Copyright 2012 associated press. All rights reserved. This material cannot be published, sent, rewritten or redistributed.

Arbitron To Pay $400,000 In Lawsuit Over Ratings

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Radio audience ratings company Arbitron Inc. says it is paying $400,000 to settle a case in California in which it was accused of under-representing black and Hispanic listeners in its surveys in the state’s largest cities.
Lawyers for the state and the cities of Los Angeles and San Francisco said Arbitron’s “Portable People Meters” system “dramatically” under-recruited from those populations when it began in 2008.
Arbitron found participants mainly by calling land-line telephones, a process that tends to under-represent minority populations.
The government attorneys said the shortfall of black and Latino participants resulted in a sharp drop in advertising rates and revenue for many radio stations that serve black and Hispanic communities.
The settlement announced Monday mandates that Arbitron change its methods by December to count minority listeners more accurately.
Portable People Meters have been controversial since their introduction.
In 2009, Arbitron settled lawsuits brought by the states of New York and New Jersey claiming the company’s marketing and commercialization of the service violated consumer fraud and civil rights laws. The company agreed as part of that $490,000 settlement to take steps to ensure its ratings panels are racially diverse.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Battle Over Building In Puget Sound Flood Plains

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A federal judge is hearing arguments over whether to stop the federal government from issuing flood insurance policies for new development in flood-prone areas around Puget Sound.
The National Wildlife Federation alleges the Federal Emergency Management Agency has failed to ensure that its flood insurance program protects endangered salmon and orcas. The group is seeking a preliminary injunction that would temporarily block new development in important habitat areas in about 70 Puget Sound river valley communities.
In 2008, federal fisheries experts concluded that FEMA’s flood insurance program encourages destructive construction in floodplains and harms critical salmon habitat. They outlined reforms that FEMA should implement.
In court filings, FEMA officials say the agency has complied and made substantial changes to its program.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Maryland House, Senate Pass Health Exchange Bill

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The Maryland General Assembly has passed a measure to create a framework for a health insurance marketplace to provide coverage to the uninsured.
The House of Delegates and state Senate voted 94-44 and 35-12, respectively, for the bill Monday.
The measure builds on legislation passed last year to create the health care exchange, a mandate of federal health care reform. It sets up standards and regulations to run the program. Maryland has about 700,000 uninsured residents.
Democratic supporters say the state needs to be prepared to implement the law by the January 2014 deadline under federal law.
Republican critics of the measure say Maryland is moving too fast, because the law is being challenged in the Supreme Court. The high court began hearing arguments Monday.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

As a whole, to continue to work well leaking gas cap

French oil producer total that it would mud pumps, into a well said, to stop a gas leak at its Elgin platform in the North Sea, after a reconnaissance team found that the conditions were safe enough to allow the operation.
Operations to inject mud into the well before you connect it are expected to begin at the end of next week and several days, a source of close to the matter said.
"The recon mission to complex by a team of a total expert and entrepreneur, specialist of Elgin has confirmed that the planning for an operation to well intervention, the leaking, the G4 well under control as planned can be continued," said total in a statement on Friday.
The leak is an estimated 200,000 cubic metres of natural gas into the air per day, make a highly explosive cloud to the platform spit. Workers on the platform were evacuated when the leak was reported for the first time on 25 March.
The reconnaissance team of experts was flown by helicopter and found no presence of gas on the main platform, which houses workers living area, and no gas on the 90-feet [approx. 290 feet] bridge, which connects with the production platform where has the wellhead was leaking.
The structural condition of the platform was unchanged, since the plant as a whole scored evacuated was found.
The team of experts now give total management a detailed debriefing to well intervention plan to develop.
The French company plans in the meantime could perform even a parallel operation of two relief wells, drilling a longer and more expensive option, take up to six months.
The leak started after increased pressure in a well, which was previously been limited.
As a whole has the leak is so far a day does it cost $2.5 million, and it has almost 7 percent declined, because billions of euros from its circulation tap stock anti-pollution the leak was reported, said.
The crew of eight on board the helicopter was a mixture of personal total and Houston-based wild well control.
Firefighters and engineers from the Houston-based company are specialists in disasters such as oil rig explosions and named "Intrepid" of Hollywood.
The UK North Sea of dwindling oil and gas companies driving unstable reservoirs at high pressure and heat, tap, while security checks and maintenance are behind schedule, a North Sea rig tester, works for the industry told of Reuters.

Conn.-based Research Firm MKM Partners Hires Insurance Analyst

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MKM Partners, a research firm, appointed industry veteran Harry Fong as executive director in its equity research department to cover insurance companies.
Fong is an experienced insurance analyst with strong corporate and buy-side relationships. He has been covering the sector for more than 30 years, including at Ticonderoga/Soleil, Calyon and Deutsche Banc Alex. Brown. At MKM Partners, he will help expand the firm’s coverage of the financials sector.
MKM Partners is an institutional equity research, sales and trading firm headquartered in Stamford, Conn., with additional offices in New York, Boston, San Francisco and Cleveland as well as in Austin, Tex., and Grosse Pointe, Mich.

Minnesota legislators taps insurance agent for University Board

The Minnesota legislature chose an insurance agency owner, serve on the University of Minnesota Board of Regents.
Thomas Devine served as a Regent during a recent joint House Senate elected Convention.
He replaced Steve Sviggum, who resigned his seat on the Executive Board, as of its conflict with the appointed role full time job concerns were. Sviggum, a former State legislator, is chief spokesman for the Minnesota Senate Republican of caucus.
12 Board sets policy and budgets for the four-campus University. Members are not paid.
Life in Chanhassen Devine. He is a graduate and regional agency David in EDINA.
Copyright 2012 associated press. All rights reserved. This material cannot be published, sent, rewritten or redistributed.

Virginia Insurance Fraud Arrests Going Up

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The Virginia State Police insurance fraud program just released their 2011 annual report, which shows the number of arrests for insurance fraud and other related crimes, such as arson and forgery, is continuing to increase — up eight percent over 2010.
Since 1999, Virginia State Police special agents have made 2,185 arrests for insurance fraud and related offenses. Last year, the agents made 231 arrests for insurance fraud and other related offenses.
Since 1999, more than 4,000 fraud investigations have been undertaken and special agents have made a total of 2,185 arrests.
Additionally, 91 cases were presented to the commonwealth’s attorneys and 143 cases were adjudicated in 2011 – an increase for the third year in a row.
As required by Virginia law, the Virginia State Police investigates suspected fraud in property and casualty lines of insurance, as well as suspected workers’ comp fraud. The 2011 statistics show 1,259 property fraud-related notifications were received. Of the 627 notifications received involving injury and casualty fraud, 146 were for fraudulent workers’ compensation claims.
In 2011, the courts ordered restitution of more than $148,000. Court-ordered restitution since 1999 has surpassed $14 million, and suspected false insurance claims reported, both attempted and collected, have topped $139 million.
Source: Virginia State Police Insurance Fraud Program

Ratings of Minnesota’s Austin Mutual Insurance Downgraded

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A.M. Best Co. has downgraded the financial strength rating to B (Fair) from B++ (Good) and issuer credit rating to “bb” from “bbb” of Austin Mutual Insurance Co. (Austin Mutual) of Maple Grove, Minn. The outlook for both ratings is negative.
The rating actions reflect Austin Mutual’s poor fourth quarter operating results, whereby underwriting performance and accounting adjustments led to significant declines in surplus well below projected levels. Consequently, risk-adjusted capitalization sharply declined to a level no longer appropriate for a secure rating.
This follows a continuing trend of underwriting losses during the recent five-year period, which were driven by increased frequency and severity of weather-related and automobile liability losses.
Management has begun to execute several aggressive strategic initiatives to improve the company’s underwriting performance. However, despite some improvement in early 2012 results due to milder weather patterns, it remains to be seen whether successful execution of these business plans will materialize into a longer positive trend of profitable results.
As a result, A.M. Best remains concerned with Austin Mutual’s volatile underwriting performance and potential for further erosion of capital, as its business continues to face ongoing exposure to weather-related events and challenging competitive market conditions.
Before the negative outlook is removed, Austin Mutual will need to significantly improve its operating performance and risk-adjusted capitalization.
Further negative rating actions may occur if Austin Mutual’s poor underwriting performance persists in 2012, causing a further deterioration of its risk-adjusted capitalization.
Source: A.M. Best

Salcedo, Anderson Join Sullivan Brokers

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Sullivan Brokers Wholesale Insurance Solutions hired Edgar Salcedo as a broker and Carrie Anderson as an associate broker in the firm’s casualty practice group.
Salcedo specializes in habitational, hospitality, products and retail. Both Salcedo and Anderson will work out of the firm’s Los Angeles office.
Sullivan Brokers is a nationwide wholesale brokerage specializing in healthcare liability, professional liability, management liability, transaction liability, environmental and casualty lines.

Washington Gouverneur unterzeichnet Versicherung Exchange Bill in Recht

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Gov. Chris Gregoire on Friday signed into law a bill setting rules for insurers preparing for the state’s online insurance exchange.
Online insurance exchanges are key to the federal health care overhaul signed into law by President Barack Obama in 2010. The state exchanges for individual and small-group plans are set go live on January 1, 2014.
“All citizens in this nation deserve health care, not just those who can afford it,” said Gregoire. “To those who say they are not supportive of the Affordable Care Act, then what?”
Twenty-six states, Washington among them, have signed on to a lawsuit seeking to overturn the act. Attorney General Rob McKenna signed on Washington state as opposing the act against Gregoire’s wishes.
They argue that a government requirement that individuals buy health insurance is unconstitutional. The U.S. Supreme Court will start hearing arguments in the case on Monday.
If the act is overturned in its entirety, the state’s exchange could still be put in place but federal funding, including a planned major expansion of Medicaid, would likely be lost. State Insurance Commissioner Mike Kreidler said that his office is committed to getting the exchange in place on schedule.
“If we slowed down to be anxious, we’d be in trouble,” Kreidler said. “It’s the law, and we’re proceeding as quickly and as prudently as we can.”
Insurance exchanges will work as online marketplaces, such as those widely used for airplane tickets and hotels, where consumers can compare different plans’ coverage options and prices. Under the new law, carriers will be able to sell plans outside of the exchange but won’t be allowed to target the young and the healthy by offering only cheaper plans with higher deductibles.
Gregoire vetoed a portion of the bill that would have shuttered the exchange if it were no longer self-sustaining, citing an “undue risk of litigation.”
The insurance industry is divided over the exchange law, with some companies, including Group Health, saying it creates a level playing field. Others, including Premera Blue Cross and Regence BlueShield, complain that it stifles the free market.
Catastrophic plans, available to younger people of limited means, would be available only inside the exchange.
The exchange law also stipulates that the state will use its largest small group insurance plan – currently the Regence BlueShield Innova plan – as its benchmark plan for determining its essential benefits.
Under the federal law, all plans will have cover emergency care, hospitalization, prescription drugs, mental health care and maternity care. Initially, the Obama administration was expected to provide states with a definitive list of essential benefits, but it left that task to the states until at least 2016.
The exchange measure was opposed in the Legislature by most Republicans, who say it is unnecessary for the state to go further in setting rules for the exchange beyond what the federal government has done, particularly while many specifics of health care reform remain unresolved and the Supreme Court has yet to weigh in.
Without a state-run exchange, the federal government would either step in to run the state exchange or select a nonprofit entity to do so.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Idaho Among 9 States Cited For Big Insurance Hikes

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The U.S. Department of Health and Human Services has listed Idaho among nine states where insurance companies are seeking increases in premiums deemed excessive under new federal guidelines.
HHS Secretary Kathleen Sebelius singled out those states last week after the agency completed it monitoring of rate increases, a function called for under the 2010 federal health care overhaul.
The legislation gives the agency authority to review rate increases and requires companies to justify rate hikes exceeding 10 percent.
“It’s time for these companies to immediately rescind these unreasonable rate hikes, issue refunds to consumers or publicly explain their refusal to do so,” Sebelius said, according to the Idaho Statesman.
Sebelius didn’t identify the two Idaho companies with excessive increases, but Blue Cross of Idaho has proposed increases of 13 and 14 percent, and divisions of Assurant Health, including John Alden Life Insurance Co. and Time Insurance Co., have proposed 16 percent rate hikes, according to the agency’s website.
Companies have also proposed increases deemed unreasonable in Arizona, Louisiana, Missouri, Montana, Nebraska, Virginia, Wisconsin and Wyoming. The excessive rate hikes would affect more than 42,000 residents across those states.
The agency said insurance rates were unreasonable in Idaho and the other states because the insurers wouldn’t be using enough of the premium dollars “for actual medical care and quality improvements, and because the justifications were based on unreasonable assumptions.”
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Study: Access to Local Underwriters Critical for Small Commercial CSRs

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At a time when many insurance carriers are centralizing their underwriting models and interacting more through technology, a recent survey has found that agency small commercial customer service representatives and account managers still find direct access to local underwriters extremely critical to doing their jobs quickly and efficiently.
The survey, commissioned by Massachusetts-based The Hanover Insurance Group Inc., ranked access to local underwriters and as the single most important consideration in building relationships with an insurance provider.
Fully 98 percent of customer service representatives rated underwriter access as very important (71 percent) or important (27 percent).
The Hanover commissioned the study to better understand the evolving needs of small commercial customer service representatives and provide insights to how the company can further align and support this critical agency role.
In addition, the study found underwriter visits and calls to the agent to be the most effective means of communication between CSRs and carriers, compared with emails, company newsletters, internet postings and other electronic means of communications.
The study also concluded that customer service representatives believe underwriters understand their role within the agency more than any other carrier representative, with 94 percent stating that underwriters understand what they do.
The Hanover recently announced enhancements to its small commercial operating model, which included the redeployment of small commercial underwriters in the field.
The study was conducted by The Pert Group, an independent consulting and research firm with broad experience in financial services industries. Results for this survey are based on online interviews conducted in late 2011, among small commercial customer service representatives.
Source: The Hanover Insurance Group Inc.

Judge Orders Feds to Begin Proceedings to Remove Antibiotics in Animal Feed

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A federal judge on Thursday ordered U.S. regulators to start proceedings to withdraw approval for the use of common antibiotics in animal feed, citing concerns that overuse is endangering human health by creating antibiotic-resistant “superbugs”.
U.S. Magistrate Judge Theodore Katz ordered the U.S. Food and Drug Administration to begin proceedings unless makers of the drugs can produce evidence that their use is safe.
If they can’t, then the FDA must withdraw approval for non-therapeutic use of those drugs, the judge ruled.
The FDA had started such proceedings in 1977, prompted by its concerns the widespread use in livestock feed of certain antibiotics – particularly tetracyclines and penicillin, the most common. But the proceedings were never completed and the approval remained in place.
“In the intervening years, the scientific evidence of the risks to human health from the widespread use of antibiotics in livestock has grown, and there is no evidence that the FDA has changed its position that such uses are not shown to be safe,” Katz wrote.
The lawsuit was filed by environmental and public-health groups including The Natural Resources Defense Council, Center for Science in the Public Interest and the Union of Concerned Scientists in the Manhattan federal court in May.
The plaintiffs argued that using common antibiotics in livestock feed has contributed to the rapid growth of antibiotic-resistant bacteria in both animals and humans.
Antibiotic-resistant infections cost Americans more than $20 billion each year, the plaintiffs said, citing a 2009 study from the Alliance for the Prudent Use of Antibiotics and Cook County Hospital.
In his ruling, Katz ordered the FDA to follow through on the process it started in 1977 but only formally abandoned in December last year. The FDA said the proceedings were outdated and that it intended to pursue other regulatory strategies for coping with potential food-safety problems.
“The FDA has not issued a single statement since the issuance of the 1977 (notices) that undermines the original findings that the drugs have not been shown to be safe,” Katz wrote.
The FDA could not be immediately reached for comment outside regular business hours on Thursday.
The case is Natural Resources Defense Council et al. v. FDA, in the U.S. District Court for the Southern District of New York, no. 11-3562.

N.H. Resident Pleads Guilty to Filing Fraudulent Claim

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A New Hampshire woman pleaded guilty this month to filing a fraudulent claim on her renter’s policy. The suspicious claim was made in 2009 and was subsequently investigated by the New Hampshire insurance department’s fraud unit.
State authorities said Tammiann Searle of Kittery, Maine, pleaded guilty in the Hillsborough County, Northern District Superior Court, to a Class B felony insurance fraud. As part of the plea, she received a sentence of one-and-a-half to three years at the state prison, and was fined $4,000. All of the prison sentence and $3,000 of the fine were suspended for two years upon good behavior.
Searle was also required to make restitution of $24,139.00 to Liberty Mutual Insurance Corporation.
In 2009, Searle reported that the contents of her apartment were damaged beyond repair after water from firefighting efforts in the apartment upstairs, leaked down through the ceiling and walls.
To receive money from her renter’s policy with Liberty Mutual, she signed a false proof of loss form and concealed property from inspection by Liberty Mutual adjusters by claiming that it had been taken to the dump because it was destroyed by water damage. She was paid by Liberty Mutual to replace all the items she claimed were destroyed.
But the insurance department’s fraud unit found many items which were supposedly destroyed. Some items were found in the possession of Searle’s friends. These included high-end bedroom, living room and dining room furniture sets, a flat screen TV and other furnishings.

N.Y.-based Guy Carpenter CEO Moczarski to Take On Additional Role

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Marsh & McLennan Companies Inc. said Alexander Moczarski, CEO of Guy Carpenter, has assumed the additional role of chairman at Marsh & McLennan Companies International. Moczarski will continue to be based in New York.
Alexander Moczarski

Moczarski’s new responsibilities include oversight of the company’s international strategy, as well as its expanding group of country corporate officers located around the world. Guy Carpenter is a reinsurance intermediary unit of Marsh & McLennan Companies.
Prior to leading Guy Carpenter, Moczarski served as CEO of Marsh’s international division. Moczarski joined Marsh in 1993 as director of planning and development for Argentina and Chile. He has more than 30 years of experience in the insurance industry.
Marsh & McLennan Companies provides a wide range of insurance-related brokerage, consulting, and risk management services. Its businesses include Marsh, the insurance broker and risk advisor; Guy Carpenter, a risk and reinsurance specialist; Mercer, human resources and financial services provider; and Oliver Wyman, a management consultancy. For 2011, the company posted $993 million in net income.

Paulson Says Hartford’s Plan Is Just ‘A First Step’

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John Paulson, a billionaire hedge fund manager and the largest shareholder of The Hartford Financial Services Group, says the company’s plan to exit most of its life insurance businesses is a good start — but just a first step.
Paulson wants to see more changes at The Hartford to clearly delineate the P/C and non-P/C businesses.
Paulson’s hedge fund, Paulson & Co. Inc., issued a statement Wednesday saying that it supports the insurer’s actions, “not as a conclusion of the strategic review, but as a first step in creating a clear delineation between The Hartford’s P/C and non-P/C businesses.” Paulson & Co. owns 8.5 percent of The Hartford.
“We are pleased that The Hartford is taking steps to focus on core operations and to divest or discontinue non-core and capital intensive businesses,” according to the statement from Paulson & Co.
“We believe that putting the variable annuity business in runoff and selling the non-core individual life, retirement plans and broker dealer businesses will raise cash, free up capital, permit de-leveraging and increase its financial flexibility.”
“Successful execution of these plans will strengthen the company’s ability to separate the P/C and non-P/C businesses in the future, which we continue to believe would create the greatest short-term and long-term shareholder value and strengthen the company.”
Paulson would like to see more changes at The Hartford going forward, according to the statement.
“While we appreciate the extensive work of The Hartford’s board and management, we do not believe the positive actions announced today address the main problem with The Hartford’s undervaluation: the lack of interest from P/C analysts and P/C investors in The Hartford’s best-in-class P/C business due to its affiliation with unrelated, low-return and complex businesses,” Paulson & Co. stated.
“We do not believe today’s actions will materially increase P/C investor interest in The Hartford.”

Jury Awards Northern California Woman $22M in Medical Suit

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A jury has awarded a Menlo Park woman $22 million in damages in her medical malpractice lawsuit against the Palo Alto Medical Foundation.
Forty-eight-year-old Robyn Frankel was paralyzed from her neck down after undergoing a procedure several years ago to check the blood flow in a vein in her brain.
Her attorney, Jeff Mitchell, told the Palo Alto Daily News that Frankel had gone in to the medical foundation seeking treatment for migraines, and the procedure was unnecessary.
The Santa Clara County jury found the medical foundation negligent and issued the award for economic losses and suffering on Monday.
Mitchell says the money will help Frankel pay for her care.
The Daily News reports that the medical foundation and its attorney did not respond to its requests for comment.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Penn State to Cover Subpoenaed Employees’ Expenses

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Penn State says it will reimburse the legal expenses of employees who received subpoenas from state attorneys prosecuting the child sex abuse case against former assistant football coach Jerry Sandusky.
The university suggested Tuesday that those who received subpoenas retain their own attorneys, saying fees would be paid out of a university insurance policy. It’s unclear how many people were served with subpoenas last week.
Trustees have also asked former FBI director Louis Freeh to lead a separate internal investigation. A report could be issued by this fall.
The trustees said Tuesday that the board could review the report to ensure that important areas were investigated and there were no factual gaps, but that the work would be solely done by Freeh’s team.
Sandusky has denied the sex abuse allegations.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Idaho House Lawmakers Pass Texting-While-Driving Ban

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After several tries and frustrating setbacks, Idaho is set to join the majority of states that have toughened laws against sending text messages while driving.
House lawmakers voted 53-17 Tuesday to bar motorists from using smartphones and other hand-held devices to review, prepare or send written communications. Rep. Julie Ellsworth, R-Boise, pushed the plan, saying a strong message from state leaders is needed to curb the deadly and growing habit.
“There is just something cultural now with this texting thing,” Ellsworth said. “We need to send a message as lawmakers and leaders of this state that we’re not going to do it while driving.”
At least 35 states and Washington, D.C., ban text messaging by drivers, but efforts to toughen the law in Idaho has struggled to gain traction in recent years.
This session seemed different as lawmakers have acknowledged feeling more pressure to act in the wake of recent traffic deaths linked to smartphone use. An 18-year-old Caldwell woman died in January after smashing into a slow-moving tanker truck on the highway. Taylor Sauer had been using her phone to look at a social networking website before the crash, authorities said.
Her family has testified in favor of the texting ban.
Distracted driving contributed to 192 traffic deaths from 2008 through 2010, according to the Idaho Transportation Department.
Ellsworth emphasized that texting is especially dangerous because it distracts visually, physically and mentally.
Idaho’s measure would slap offenders with an $85 fine and a non-moving traffic infraction that wouldn’t add points to the violator’s driving record.
Rep. Rich Wills, R-Glenns Ferry, a former Idaho State Police trooper, said teen drivers would likely attract the most citations under the new law, a belief that prompted him to argue for making texting while driving a crime below the misdemeanor level.
“I don’t think we want to punish them with a criminal record,” Wills said. “It should be a wake-up call for everyone.”
But some lawmakers weren’t convinced the police can adequately enforce the bill as it’s written. Rep. Brent Crane, R-Nampa, voted against the bill and questioned how police could determine whether a driver was visiting a website on their smartphone rather than sending a text message.
“This applies specifically to the manual preparation of a text message,” Crane said. “It would arguably apply not to looking at a website.”
The Idaho Sheriff’s Association has said admissions of guilt will be crucial to enforcing the legislation.
“It’s going to be limited, as many other laws are,” Wills said. “We do not have the authority to go in and actually see what they were doing on the phone.”
The Senate approved the measure in February but will have to sign off on House amendments that expand the ban to emergency and law enforcement personnel and eliminate adding points to an offender’s license.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Family of Los Angeles Gang Member Awarded $3M In Lawsuit

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The family of a gang member who died in Los Angeles police custody in 2007 has been awarded more than $3 million in a wrongful death lawsuit.
The Los Angeles Times reported the civil jury’s award for damages in the case of Mauricio Cornejo was reached Monday.
Cornejo collapsed and died in a holding cell at the Hollenbeck station hours after a confrontation with police following a foot chase. Police said Cornejo ran from officers after he was pulled over for a traffic violation.
At trial, the city attorney’s office argued that Cornejo died from the physical strain of resisting officers and drug intoxication. But the chief medical examiner for Ventura County testified that the force used by officers was a cause of Cornejo’s death.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Calif. Commissioner Jones Names COIN Board

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Report: Risk of corruption in South Central States high

Although none of the Governments of the 50 U.S. exemplarily be found were three of four of the South Central States very lackluster rankings received a report for the assessment of Government integrity and the ability to prevent corruption in the ranks of officials and employees.
Under insurance departments in the South Central States only one - Louisiana - was a decent touch. The Louisiana Department of insurance received a ranking of B +, 89 per cent, to the "public integrity investigation corruption risk report card," performed and recently by a partnership between the Center for public integrity, global integrity and public radio international.
Of the rest of the States South Central, the Texas Department of insurance (F, 58 percent) came dead last with the Arkansas Insurance Department (D, 60 per cent) and tow close of Oklahoma insurance (D, 61 percent).
The various State insurance, regulatory commissions were judged on a number of questions. The following table shows the results for insurance departments in the States South Central:
Is the State that the Insurance Committee of political and special interest influence protected?The State Insurance Commission has sufficient capacity, to carry out its mission?There are conflicts of interest regulations on the Board of Directors and senior staff of State Insurance Commission?Cover Theconflicts interest rules of the Board of Directors and senior staff of State Insurance Commission effective?Can citizens of asset disclosure records by the State Insurance Commission access?Pass the State Insurance Commission publicly deposited documents from insurance?
The report assessed also States as a whole as well as assessments of the most important individual State authorities include removal of the rankings.
Arkansas square 27 under the 50 States with an overall score of D +, 68 percent. Of Arkansas, who said the report: "Despite a handful of recent reforms, Arkansas is plagued by weak ethics laws, which are often poorly enforced."
Louisiana as a whole among the 50 States was 15 with a grade of C, 72 percent. The report noted, that Louisiana, a State with a colorful history of corruption has tried, clean up its act." "But despite a number of new laws, supervision questions are still open."
Overall score Oklahoma was D, 64 percent with a rank of 38 among the 50 States. "Exceptions for the open records law and lax ethics enforcement are one of the subjects, the Oklahoma index earn a substandard on the integrity of the State", according to the report.
Texas received an overall rating of D +, 68 percent, with the rank of 27 among 50 States. "Money flowing freely in Texas politics, where contributions to most of the candidates are unlimited and lobbyists are powerful," said the report.
New Jersey fared the best on the integrity of overall performance with a degree of B all States +, 87 per cent. Georgia came in last on the scale of integrity with a degree of F, 49 percent. Georgia Insurance Department got a fancy touch f, 32 percent. New Jersey Insurance Committee received a grade of B +, 88 percent.
The public integrity investigation corruption risk report card you can find here.

Howie connects Everest re; New Finance Director

The Bermuda-based Everest re group known that Craig Howie the company join on the 26 March 2012 as Executive Vice President. After the first quarter filings of the company financial statements of SEC, he assumes the role of Chief Financial Officer, took over the role of Dominic Addesso who was promoted to President.
Howie connects Everest re by Munich Re America, where he served as Vice President and controller since 2005. He joined Munich Re in 1989 of Ernst & young America. Howie has involved more than 23 years of insurance industry financial experience. He holds an MBA in finance and taxation from Villanova University and a Bachelor of science in accounting from Drexel University. He is also a member of the American Institute of CPAs, the society of CPAs, New Jersey and Pennsylvania Institute of CPAs.
Chairman and CEO Joseph V. Taranto welcomes Howie Everest re, indicating that he "a great addition to our executive management team." Addesso added that he has known Howie "for many years and I look forward to working with him again, as he assumes the role of Chief Financial Officer." "He will be a strong and welcome addition to our company."
Source: Everest Re Group

Arizona insurance group concerned Bill may lead to innocent towing vehicles

A bill of material change Arizona's mandatory auto insurance laws law allow law enforcement authorities to tow and impound vehicles without insurance is concern that it could lead to the towing of a small number of vehicles of the driver, who are actually insured and that it could create a liability for insurance agents.
The independent insurance agents and brokers of Arizona Inc., Senate 1165, said Bill submitted rep by the State. John Kavanagh, R-Fountain Hills, makes false vehicle identification number with vehicles drivers had reported available Arizona motor vehicle Division.
According to IIABA, there are an estimated 200,000 vehicles with inaccurate VIN numbers in Arizona. This is the small percentage who thinks State an estimated 4.8 million vehicles, but IIABA that it large enough to create problems if the Bill is passed.
The law is to be heard Wednesday in the House appropriation Committee.
While IIABA required liability for driver support enforcement in Arizona, a problem was created by a massive number of inaccurate VINs in Arizona, Russell said riding, a representative of the Government Affairs for IIABA.
After IIABA the universit?tsservice alphanumeric mix insurance call upon often by car customers reported their agent, and it is not unknown for agents, the number wrong, when you pass information to the car Department.
In the latter case can if that happens and a motorist towed his car, legally authorized their representatives in court costs dragged the insured persons and seized, according to horseback riding to bring.
Be issued during proof of insurance cards for drivers, she added is not issued, or could with the wrong expiration date be issued if there a problem with the VIN, he.
He said "You could get technically still dragged,".
As the law stands now, with the wrong VIN face a quote and must only prove that they were in fact insured, if the citation was issued. But Kavanagh of the Bill would allow law enforcement, tow and impound vehicles, and there is no mechanism for drivers, even those who were insured, said riding to recoup these costs can prove.
But Kavanagh does not, the problem as a big enough to derail what he considered an important piece of legislation.
He put the language in the law stating that if a driver has every written document of insurance, that dates to the automotive Department database shows that the driver has no insurance, the vehicle will be not towed away.
So only those without on the proof of insurance cards are at risk, he said.
"The only people who are to catch a very small number of people whose paperwork has a typo in the VIN", he said, pointed out that the motor vehicle Department VIN is looking for typos and regularly sends notifications to driver of such errors.
He added to these drivers "only for like 60 days exposed would be." "You have a small number of people who have a small window of vulnerability."
And even then, their vehicle would be only towed decides a law enforcement officer, run a check radio despite a current insurance card provided by the driver.
"The amount of good does the Bill far outweighs the small negativity", he added.
Kavanagh said the main objective of the draft law is people, who "game the system" by buying from short-term to enable minimal coverage, liability their Vehicls get registered and then cancel their policies and receive a refund and drive around uninsured.
"Right now, when they are finished they get a charge and that's it," he said. "The police officer watches of the uninsured driver drive in an uninsured vehicle."
But riding said exposure to riders who have insurance, and legal exposure to insurance intermediaries, is enough of a concern to raise a red flag.
"Our concern is that some people might influence it," added horseback riding.

Major quake rattles Mexico; No significant damage reported

A severe earthquake struck Mexico on Tuesday, provoking panic as it damaged hundreds of buildings and caused houses in the capital to hop like "Trampoline."
Office workers fled to the streets if 7.4 size shook Quake Mexico City for more than a minute. Phone lines went, buildings were evacuated, Traffic snarled and trade had the Exchange early.
At least 11 people were injured, the Interior Ministry said.
The quake strongest in the Southwestern State of Guerrero, where around 800 houses were damaged, officials said. The Governor of the State of Angel Aguirre said he reports of the houses be demolished, although the public authorities could not confirm.
The tremor was one of the strongest, the thousands in Mexico City hit the country since the devastating 8.1 earthquake of 1985, killed.
Mexico's Interior Ministry said that the country would have been registered on highest alert for the next 24 hours after 18 aftershocks to the quake. Some were above a size 5.
However, no deaths were reported, on Tuesday and there were no major disruptions to air travel or oil installations. But many residents fear and temporary power 2.5 million users in the capital cut off.
Mexico City Mayor Marcelo Ebrard, said some tracks from the u-Bahn system moved due to tremor during leaks at three aqueducts feeding of the eastern part of the capital would hundreds of thousands of homes without water for at least one day leave.
Martha Suarez, said an Argentine life in Mexico City Roma neighborhood she something similar never knew. "My TV fell down;" The building felt like it on a trampoline. This was like no other I have experienced, ", said Suarez, keeps her small dog in the vicinity."
Scores of houses damaged were in Ometepec, a town near the epicenter of the quake in the State of Guerrero, will the popular Pacific Beach Resort Acapulco.
In the neighboring Oaxaca, 68 mud brick houses were damaged and at least five people were injured, one of them seriously, in the area around the city of Pinotepa Nacional, close to the Pacific coast, said local emergency and roadside assistance.
Some buildings in the capital, trendy district were cracked by Condesa drove by the earthquake, and inhabitants of buildings with small children and dogs in the arms.
"I swear that I never feel one so much, I thought that the building to collapse," said Sebastian Herrera, 42, a businessman from Mexico City District 1985 hit hard.
Television images showed part of a bridge fell on a vehicle on the outskirts of Mexico town. Mayor Ebrard said no one was injured and helicopter of flyover showed that there were no signs of major damage in the capital.
President Felipe Calder?n said there also were no reports of serious damage, experts said that the impact of search not heavy.
Disaster, the modeling of the company EQECAT, whose Software is used by insurers to predict risk by natural disasters that insured losses from the earthquake estimated at less than 100 million $. [See also the following articles by AIR worldwide].
FELT IN GUATEMALA
Fear gripped many of the locals in the town of Mexico, when the quake hit.
Caroline toilet donkey, a German Executive working in close by Las Lomas, said that a rush was when people started fleeing on the eighth floor of their building.
"At some point, we and everyone started pushing." A large man had fallen down and stumbled upon (on the stairs). "And since he was very big, she could him stand up so everybody went about it won't help", she said.
Mexico-City Airport was functioning properly and a few flights in the United States were shut down temporarily, a spokesman said.
State oil company Pemex said everything, what its facilities on the Pacific coast, normal largest 330,000 barrels per day refinery including the country's capacity of Salina Cruz.
The US Geological Survey said the earthquake size 7.4 and aftershocks was next, while in the afternoon.
In Acapulco, schools were evacuated and some parents pick up their children crashed, but it seemed no major damage, hotels and other buildings.
To confirm the White House, which has rejected reports that President Barack Obama daughter Malia was holiday in Mexico, said, was the 13-year old safe.
So far, the quake was felt like Guatemala City.
A spokesman for Mexico City health authorities said that hospitals and clinics were usually active, although some patients from damaged buildings were evacuated.
(Additional reporting by Patrick Rucker, MICA Rosenberg and Ioan Grillo in Mexico City, Luis Enrique Martinez in Acapulco and Ben Berkowitz in Boston;) (Editing by Kieran Murray)

Pennsylvania workers comp employee accused bribery

A supervisor in Pennsylvania workers compensation program has accused bribery were.
Agents from the Attorney General of public corruption arrested a 53-year-old James McDonnell of Scranton on Monday. His wife, 44-year-old Michelle McDonnell, also arrested and indicted.
Prosecutors say that McDonnell Pennsylvania entrepreneur promised health insurance insured were by the condition of the worker, that he could reduce their bonuses in exchange for bribes. Prosecutors say that she documented at least 15 instances the McDonnell without any supporting evidence and documents refunds.
McDonnell and his wife received the scheme between 1999 and 2011 reportedly more than $80,000.
No one answered on the phone Monday to a list for the McDonnells.
Copyright 2012 associated press. All rights reserved. This material cannot be published, sent, rewritten or redistributed.

Air review damage image of Mexico earthquake

Catastrophe modelling company AIR worldwide has analyze a bulletin the earthquake of magnitude 7.4 , Southwestern Mexico yesterday taken.
Dr. Tao Lai, principal engineer at AIR worldwide, said that the "Tectonic setting of the Western Oaxaca is dominated by the subduction of the Cocos plate under the North American plate along a zone known generates events earthquake as middle American trench, repeated large brightness." Since 1973, the region has seen within 200 km [125] from the epicentre of the today's event 20 seismic events up to 6.0 m and seven events of more than 7.0 m. "In the year 2010 a M6. 3 earthquake occurred [32.5 km] 52 km southeast of today's earthquake, and in 1982 a M7. 2 event occurred about 7 km [4.375 km] from the today's degraded."
The epicenter of the quake was located southwest of the town of Ometepec in the State of Guerrero, where supposedly 500 houses were damaged. "The earthquake most was in the neighboring state of Oaxaca," said AIR; "also there damages have been but so far minimal reports;" "People put the quake not them to the ground believed strongly but for example fall from the shelves,."
According to the most homes in Mexico concrete base are air. "Stone structures generally fall into one of three classifications: masonry, narrow masonry and unreinforced masonry reinforced." Unreinforced masonry buildings are to shake one of the most endangered types of construction damage. Commercial building in Mexico are primarily of modified masonry or concrete, and withstand better ground motion.
"In large urban areas, like for example Mexico City families in five, fifteen floors, the meisten-, upper middle class living high reinforced concrete commercial apartments." "These buildings are generally well designed and built with high-quality materials."
AIR analysis indicates that "due to the repetitive and destructive nature of the earthquake in Mexico, building codes in this country among the most comprehensive in the world are."
However, it also showed that there "is no national codes." Instead more than 2,400 communities in Mexico staged enforces an its own rules, and thus the seismic performance is strongly influenced by local construction of practices building in Mexico. Building Damageability building code exacerbated by bad processing, inadequate materials and lack of enforcement.
"It is in the very early aftermath of this event, and source parameters can change as reports come seismic networks in Mexico and around the world continue to." "Air collects the data available for this event and will provide additional information if that justified by this event."
Source: AIR worldwide

Senators demand Obama tsunami program cuts be restored

Dismayed about the Obama Administration proposed cuts for the tsunami warning and America's prevention programs, six U.S. senators from California, Oregon, Washington and Hawaii on Tuesday demanded the money be made back into the budget.
In a letter to Senate Appropriations Chairman Daniel Inouye said D-Hawaii, the six, including California Sens. Dianne Feinstein and Barbara Boxer, that the proposed cuts "threaten the security and economic stability of the communities in our countries."
In its proposed budget in 2013 for the National Oceanic and Atmospheric Administration searches the administration of Obama to $ 4.6 million through two incisions in the tsunami program to save.
The first would be $ 1 million decreased $11 million annual budget, operation, and maintenance of a network of 39 high-tech buoys distributed over the Pacific and Atlantic Oceans Fund about oceans. The buoys are connected at the bottom of the ocean and measuring pressure changes, sending data to satellites, which say that the tsunami warning in Alaska and Hawaii centers, whether a tsunami for the United States, together with details of their magnitude and direction is headed.
The other proposed cut is a 3.6 million decrease of around 7.5 million annual budget, State grants in coastal States tsunami evacuation plans, preparing to erect warning signs, tsunami inundation zone cards to help compile and run response to tsunamis public education programs in coastal communities.
The Senators decision Inouye ask the letter itself, the Chairman of the Committee likely that the Senate there to restore powerful means, money, restore it.
Inouye agrees with them and work to restore the funding, said his spokesman, Peter Boylan.
"Senator Inouye appreciates the concerns and input," Boylan said. "As someone who is prone to tsunamis represents a State, he understands the importance and will work hard for funding for this program in"
"Order, to protect the lives and property of our citizens."
Political pressure also praised tsunami experts.
"This is a good thing," said Geophysicist Lori Dengler, Chairman of the Geology Department at Humboldt State University. "We aren't talking about a large amount of money, and we are talking about life safety." We have made such progress in the last five years. But we must continue working. "It requires exercises and workshops and exercises."
Interview with this newspaper before some weeks defended NOAA officials the cuts, say that the Government is trying to save money and the buoys would still work, although to repair if broken would take longer. Currently, 10 not work 39 buoys, and teams must often sailing to remote parts of Ozeans-- as in the vicinity of Tonga or the Aleutian-to repair.
NOAA officials also said that the cuts, the prevention programmes were necessary because the financing is planned this year on a Congress program and the Bush Administration introduced beef of America's tsunami system after the devastating tsunami in 2004 killed Indian Ocean, 230,000 people in Indonesia and Sri Lanka.
After news reports showed that no warning system had the countries which were tsunami 2004, devastated, Congress passed a law in 2006 to increase the funds for tsunami buoys, research and preparedness. But the funds, $ 40 million per year for seven years, Oct. 1 is out.
The Obama administration reduce to many of these programs permit proposal ran into considerable criticism by independent tsunami scientists and emergency response officials in West Coast States including Republic Zoe Lofgren, D - San Jose, listen to NOAA Administrator Jane Lubchenco about them during a Congress earlier strongly questioned this month.
They suggested that cuts come in a politically difficult time-close to the anniversary of the 11th March 2011, earthquakes and tsunami, which killed 19,000 people in Japan, causing a nuclear meltdown at the reactor in Fukushima.
The earthquake of magnitude 9.0, centered in the ocean and tsunami span was sent up to 6 M in height toward the California coast. The surging water damage amounting to 58 million $ in California, sinking dozens of boats, ports in Santa Cruz and Crescent City destroy and kill a man close to the border with Oregon.
In addition to Boxer and Feinstein was the letter of Sens. Ron Wyden and Jeff Merkley of Oregon, Maria Cantwell of Washington and Daniel Akaka of Hawaii signed.
"NOAA early warning systems critical information for residents and emergency managers to provide evacuation and emergency can start preparations immediately," said the letter the senators. "In March of this year, apply provided that these early warnings strengthen first responders with enough time to the sea walls, low lying areas Sandbag and other precautionary measures CREALIFE - these measures were effective in minimizing the loss of human lives and property during this catastrophic event." "People with a few moments notice a similar system in Japan before the flooding and thousands of lives will be saved."
Copyright © 2012 - San Jose Mercury News

House plan would reduce crop insurance costs

U.S. farm and crop subsidies would insurance by $30 billion more than far greater cuts as agricultural State legislators proposed be cut 10 years under a proposal by the Budget Committee of the House of representatives of Chairman on Tuesday.
Budget Chairman Paul Ryan calls for reduction in the subsidy of $5 billion-year "Direct payment" and reforms to control rising costs of the federally subsidized crop insurance, most of the farm safety net on almost $9 billion per year.
"These reforms taxpayers about $30 billion save over the next ten years," wrote blueprint for the Federal Government in a budget Ryan. The cuts equal to 19 percent of the expenditure planned in the two areas by tax 2022.
The House with Ryan, is a farm bill must write the Committee on agriculture that meets the goal of $30 billion in cuts. Earlier this month, its leaders said, $23 billion would be appropriate. The Senate Committee on agriculture aims for a bill that saves $23 billion.
Ryan's plan would reduce "the fixed payments that go farmers regardless of price levels" and "reform of the open nature of the support of the Government for crop insurance, so that agricultural producers do the same kind of responsibility for risk management, that other companies take over".
"The process of House Republican outlined budget all but guarantees are no farm bill this year," said Collin Peterson, the Democratic leader on the House Agriculture Committee. He said supported the proposed cuts in farm and food stamps were too big for the Congress to accept.
When a farm is not passed Bill this year, either Congress would agree to an extension of the existing law farm, or a law, 1949, that would have higher costs and limited plantings, would automatically into force.
Agriculture of Chairman Frank Lucas, Oklahoma Republican, said the cuts "are only proposals" and his Committee have free hand in the reform and expenditure. The new five year farm bill costs about $ 480 billion before any cuts.
The Government now pays 60 percent of the premium for crop insurance and insurer of underwriting, operating costs and burden-sharing of payments to farmers in high-loss years.
Proposed by President Barack Obama agricultural subsidies in his budget proposal on Feb 32 Billion $ 13. He would be less at the end of the direct payment, idle land, crop insurance to reduce subsidies, and again a stand-by disaster relief program.
"Ryan's plan throws a monkey wrench in (Farm Bill) discussions," said dedicated social scientist Vincent Smith of Montana State University, an advocate of the crop insurance reform.
Farmers and their allies in Congress against cuts often as a threat to the insurance crop viability.
Requiring 60 per cent of bonuses instead of 40 percent numbers would save $1 billion per year Smith said. Reduction in the Federal Republic of subsidy for the provision of guidelines would save much or more, he said.
Smith said crop insurance is unreasonably expensive benefits for the Government and overwhelmingly big operators. Breeders adapt from losses by common methods such as buying a futures contract, use of pesticides and plant nutrients or relying on their own resources, which lacks strong federal subsidy, could protect, he said.
Ryan criticized also the financial reform of Dodd-Frank act as "Government products in the private sector". The law brings a flood of expensive and complicated rules for futures trading with derivatives under federal regulation and complaints and derivatives markets.
Much of Ryan's criticism, impact on Wall Street aimed at the law. However, it calls for a thorough review of the financial regulation "repealing the recent extensions of the Federal Republic role in financial services".
A block grant would become food stamps, which help poor people eat to buy in States with a limit on expenditure in the Ryan plan. Access would be bound to work or training. Food stamps represent three-quarters of the farm bill spending.
Ryan made a similar proposal a year ago and faced strong opposition. From a rating, it would cut funds from $ 122 billion, or 16 per cent more than 10 years; too much for to the proponent.

PG&E, Subcontractors Agree To Settlement In Fires

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AppId is over the quota
Pacific Gas and Electric Co. and two of its subcontractors have agreed to pay $29.5 million to settle lawsuits over fires in national forests in Trinity County and El Dorado County.
The U.S. Attorney’s Office in Sacramento confirmed the settlement to the San Francisco Chronicle on Wednesday. It stems from two 2004 fires, one in the Six Rivers National Forest in Trinity County and the other in the El Dorado National Forest in El Dorado County.
Federal officials blamed the fires on downed PG&E power lines. In the Six Rivers fire, they said PG&E had failed to remove a decaying tree.
In the El Dorado fire, prosecutors said PG&E had been negligent in supervising a contractor whose workers were cutting down a tree.
A PG&E spokeswoman says the company has made changes to its vegetation management program.

PG&E, Subcontractors Agree To Settlement In Fires

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AppId is over the quota
Pacific Gas and Electric Co. and two of its subcontractors have agreed to pay $29.5 million to settle lawsuits over fires in national forests in Trinity County and El Dorado County.
The U.S. Attorney’s Office in Sacramento confirmed the settlement to the San Francisco Chronicle on Wednesday. It stems from two 2004 fires, one in the Six Rivers National Forest in Trinity County and the other in the El Dorado National Forest in El Dorado County.
Federal officials blamed the fires on downed PG&E power lines. In the Six Rivers fire, they said PG&E had failed to remove a decaying tree.
In the El Dorado fire, prosecutors said PG&E had been negligent in supervising a contractor whose workers were cutting down a tree.
A PG&E spokeswoman says the company has made changes to its vegetation management program.

Report cites dangerous dust at NYC site

A report has found that a u-Bahn on the Second Avenue u-Bahn site excessive levels one air sample had dangerous dust particles.
According to the New York Post, the sample was taken over by the occupational safety and health administration on 9 November. Last week it was Assemblyman MICAH Kellner released.
Residents in the neighborhood have long complained about the air quality around the site.
The MTA said the post, that the level of silica found u-Bahn in the preliminary results "under no circumstances affect street-level air quality."
Spokesman Kevin Ortiz, said "silica is not in the air hovering, but rather falls on the ground."
The Second Avenue Subway line to 1.7 miles long. It opens in the year 2016.
Copyright 2012 associated press. All rights reserved. This material cannot be published, sent, rewritten or redistributed.

Measure Limiting Asbestos Liability Clears Idaho Senate

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AppId is over the quota
Bottle-cap maker Crown Holdings might want to pop the top off a celebratory bottle, after a bill to limit its asbestos liability in Idaho cleared the Senate and headed to Gov. C.L. “Butch” Otter for signature.
The measure cleared the chamber 19-15 on Tuesday, reflecting a strong minority’s reluctance to help it off the legal hook.
The House had approved the bill 47-22 in February.
For years, the Pennsylvania-based company has sought protection from claims filed by lung-disease patients.
Though it has just a handful of claims from Idaho, it also wants protections here from having to make future payments related to its ill-fated purchase of an asbestos-tainted company in 1963.
That’s resulted in $700 million in payouts, with 50,000 claims still pending.
Crown has won protections in 14 states.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Washington Lawmakers Vow To Push Abortion Insurance Bill

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AppId is over the quota
Democratic lawmakers said Tuesday that they will try to pass a bill during the current special session requiring insurers who cover maternity care – which Washington insurers are mandated to provide – to also pay for abortions.
The measure passed out of the House during the legislative session that ended March 8 but failed in the Senate after a dramatic attempt to bring it to the floor during a Republican budget coup failed by three votes.
“We need to get the bill to the floor of the Senate,” said Rep. Laurie Jinkins, D-Tacoma. “There are the votes on the floor of the Senate to pass this bill.”
One key vote is that of Sen. Rodney Tom, D-Bellevue, who says he supports the bill but who voted to keep it from coming to the floor during the budget debate earlier this month.
He says that whether he votes for the bill to come to the floor during the special session depends on the circumstances.
“If it’s going to blow up a budget deal, then I won’t vote for it” to come to the floor, Tom said.
Supporters say the bill would ensure that existing abortion coverage will be preserved once federal health insurance rules come into effect in 2014 under national health care reform.
Under federal health reforms, insurers covering abortions will have to contend with added administrative hurdles. Because federal money may not be spent on abortion – a prohibition dating to 1976 – the insurers, under the federal reforms, will be required to collect two sets of premiums, one for abortion coverage and one for all other services. Abortion-rights advocates fear that insurance carriers may be tempted to free themselves of the added hassle and expense by eliminating abortion coverage.
Opponents counter that the measure may lead to more abortions and would lead to higher health care costs for all – claims muddied by the already wide availability of abortion in the state and the fact that abortions cost insurers less than do live births. They also say the measure would violate federal rules barring discrimination against insurers who don’t offer abortion coverage for moral reasons, putting at risk $6 billion in federal money.
Supporters say the state is protected by its existing conscience exemptions and note the bill has a self-destruct clause nullifying it in the event it were found to conflict with federal law.
Gov. Chris Gregoire said at a news conference last week that lawmakers should be focusing on the budget and a small list of related issues. Asked whether she would veto the bill if passed, she said it was unlikely it would make it out of the Legislature during the special session.
“Trust me,” she said. “It’s not going to pass.”
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

HSB to Offer Equipment Breakdown, Data Breach Product

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AppId is over the quota
The Hartford Steam Boiler Inspection and Insurance Company (HSB), a part of Munich Re, has launched HSB Freestyle Advantage, an insurance product that combines equipment breakdown coverage with optional data compromise and identity recovery coverage.
HSB’s Data Compromise and HSB Identity Recovery coverages will be available with HSB Freestyle Advantage policies as of June 30, 2012 (subject to state approvals).
HSB Freestyle Advantage equipment breakdown insurance automatically includes coverage for mold, worldwide off-premises coverage, and to restore data that is lost or damaged due to a breakdown. It also offers increased coverage for more energy efficient equipment upgrades (now the highest offered by any insurer) and additional green equipment breakdown coverage.

Florida Tax-Credit Plan to Shore Up Cat Fund Raises Questions

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AppId is over the quota
A Florida plan to sell insurers and financial institutions state premium tax credits to help fund the state’s homeowners’ reinsurance facility is raising concerns among some officials.
The Florida Insurance Tax Pre-Payment Program was a late addition to the state’s budget that lawmakers approved earlier this month. Sponsored by Senator J.D. Alexander (R-Lake Wales), the plan is designed to help shore-up the resources of the Florida Hurricane Catastrophe Fund after lawmakers failed to pass his bill to finance a potential shortfall in the fund’s finances.
“Right now we’re short $3 billion in being able to meet the statutory commitments in the Cat Fund,” said Alexander. “So this is another way to try and piece together enough cash to make it through the coming hurricane season.”
The plan, however, is coming under scrutiny from Cat Fund officials who were not involved in creating the plan.
“Anytime you pass something like this it needs a lot of study,” said Cat Fund Executive Director Jack Nicholson. “We would hope it would come up earlier in the session where it could be reviewed. As it is I’m not sure how many legislators even understood the plan.”
The plan envisions insurers and financial institutions purchasing tax credits whereby they would receive a discount on the dollar for paying their state premium taxes early. The plan calls for insurers and banks to receive up to $1.5 billion in tax credits over 10 years.
That money would then be lent to the Cat Fund, which would then be responsible for paying that money back to the state.
It would mark the first time the Cat Fund has ever borrowed money from the state’s general revenue fund. That means if the Cat Fund is unable to pay its debt due to overwhelming hurricane losses it could have an impact on the state’s credit rating.
“For a lot of people that is a game changer,” said Nicholson.
Nicholson said there are other financial concerns.
For example, since there is no way to calculate just how much money would be raised by the program or the costs, it would be nearly impossible to determine how and where the money would be used.
That is opposite from the Cat Fund’s current financial structure that relies on bonds where the fund knows upfront how much money is raised and what the interest rates and administrative costs will be.
Then there is the question of which investor groups are inline to be paid first. Since the tax credits are tied to general revenue the state might want its money first, which could conflict with the Cat Fund’s current bondholder agreements.
“We have no way to evaluate the costs or benefits of the program,” said Nicholson. “That is why we prefer to go the pre-event bonding route. It gives us certainty.”
Nicholson said fund officials are in contact with the governor’s office to make them aware of both the financial concerns and the administrative problems it could create in the Cat Fund.
Governor Rick Scott does have the authority to use his line item veto power to strike the measure from the budget.
“If we have to do the program, then we have to do it,” said Nicholson. “But we would prefer that it just go away for now.”

Former South Dakota Deputy, Insurance Agent Sentenced for Fraud

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AppId is over the quota

A South Dakota sheriff’s deputy and former insurance producer who pleaded guilty in an insurance fraud case has been sentenced to about 2 1/2 months in jail and 2 1/2 years of probation.

Forty-two-year-old Rob Hotchkiss of Delmont was accused of submitting fraudulent insurance applications to obtain commissions while working for a Sioux Falls agency in 2008. He pleaded guilty early this year to grand theft by deception and then resigned his job as a Douglas County deputy.

The Mitchell Daily Republic reported that state officials alleged Hotchkiss had created a fictitious company with fictitious workers for which he filed the insurance applications.

Hotchkiss already has paid about $7,000 in restitution, according to the Daily Republic.

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

Idaho House Lawmakers Pass Texting-While-Driving Ban

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AppId is over the quota
After several tries and frustrating setbacks, Idaho is set to join the majority of states that have toughened laws against sending text messages while driving.
House lawmakers voted 53-17 Tuesday to bar motorists from using smartphones and other hand-held devices to review, prepare or send written communications. Rep. Julie Ellsworth, R-Boise, pushed the plan, saying a strong message from state leaders is needed to curb the deadly and growing habit.
“There is just something cultural now with this texting thing,” Ellsworth said. “We need to send a message as lawmakers and leaders of this state that we’re not going to do it while driving.”
At least 35 states and Washington, D.C., ban text messaging by drivers, but efforts to toughen the law in Idaho has struggled to gain traction in recent years.
This session seemed different as lawmakers have acknowledged feeling more pressure to act in the wake of recent traffic deaths linked to smartphone use. An 18-year-old Caldwell woman died in January after smashing into a slow-moving tanker truck on the highway. Taylor Sauer had been using her phone to look at a social networking website before the crash, authorities said.
Her family has testified in favor of the texting ban.
Distracted driving contributed to 192 traffic deaths from 2008 through 2010, according to the Idaho Transportation Department.
Ellsworth emphasized that texting is especially dangerous because it distracts visually, physically and mentally.
Idaho’s measure would slap offenders with an $85 fine and a non-moving traffic infraction that wouldn’t add points to the violator’s driving record.
Rep. Rich Wills, R-Glenns Ferry, a former Idaho State Police trooper, said teen drivers would likely attract the most citations under the new law, a belief that prompted him to argue for making texting while driving a crime below the misdemeanor level.
“I don’t think we want to punish them with a criminal record,” Wills said. “It should be a wake-up call for everyone.”
But some lawmakers weren’t convinced the police can adequately enforce the bill as it’s written. Rep. Brent Crane, R-Nampa, voted against the bill and questioned how police could determine whether a driver was visiting a website on their smartphone rather than sending a text message.
“This applies specifically to the manual preparation of a text message,” Crane said. “It would arguably apply not to looking at a website.”
The Idaho Sheriff’s Association has said admissions of guilt will be crucial to enforcing the legislation.
“It’s going to be limited, as many other laws are,” Wills said. “We do not have the authority to go in and actually see what they were doing on the phone.”
The Senate approved the measure in February but will have to sign off on House amendments that expand the ban to emergency and law enforcement personnel and eliminate adding points to an offender’s license.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

WCIRB report: Premium grew but claim severity continue to rise

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An annual report from the Workers’ Compensation Insurance Rating Bureau of California shows that for the second consecutive year statewide workers’ compensation premiums levels rose in 2011, but that continually growing costs of claims has eroded statewide underwriting results.
The estimated statewide written premium grew roughly $600 million from $7.1 billion in 2010 to an estimated $7.7 billion in 2011, according to the report. Premium remains below pre-recession levels in 2007, and nearly $9 billion below the high in 2004 before workers’ compensation reforms.
The report also shows the average cost of claims also experienced “modest growth” in 2011 and insurer expense ratios continued to remain high.
“As a result of the increases in claims costs and expenses, the increase in written premium was insufficient to reduce the accident year combined loss and expense ratio for 2011 …,” the report states.
Increasing claim severities between 2006 and 2009, reduced premium levels, and high expense ratios have eroded statewide underwriting results, and WCIRB estimates a statewide combined loss and expense ratio for accident years 2009 and 2010 of 130 percent, the highest combined ratio since accident year 2001.
WCIRB cites the latest report from the National Association of Insurance Commissioners showing that for the third straight year, the California workers’ compensation insurance industry’s average return on net worth of 5.2 percent was well below the Fortune Magazine — All Industry average of 12.7 percent in 2010.
“Given indications of continued growth in claims costs and loss adjustment expenses, the WCIRB does not expect significant improvement in 2011,” the report states.
The report follows a report earlier this week issued by the California Workers’ Compensation Institute, which shows that for the fifth consecutive year increases in the average loss per claim – led by escalating medical losses – pushed up total workers’ compensation costs for cities, counties and other public agencies in the state last year.
“I think the (WCIRB) report confirms what we have already known – is that the workers’ comp market in California is suffering from increased costs,” said Mark Sektnan, president of the Association of California Insurance Companies.
Sektnan pointed to data in the WCIRB report that shows that while claim frequency continues to move downward, the severity of claims are in the rise.
“It means that the cost of each case is getting higher,” he said.
There are a number of reasons for this upward trend, many of which Sektnan believes start with the deterioration in the objective standards for workers’ comp cases set in 2003 with the establishment of American Medical Association guidelines on claims.
Individual courts have been ignoring these standards, and few landmark individual cases have set a standard for flaunting these guidelines, Sektnan said, pointing to the 2009 decisions in Ogilvie and Almaraz/Guzman.
The report also cites those cases as being a continued influence on workers’ comp:
“Lawmakers in Sacramento continued to focus their efforts on tackling California’s budget crisis and unacceptably high unemployment. As a result, no major legislative or regulatory changes impacting workers’ compensation were adopted in 2011. There was also no major judicial action impacting workers’ compensation in 2011; however, the industry continues to grapple with the ramifications of the 2009 Ogilvie and Almaraz/Guzman decisions.”
Sektnan noted that such cases are yielding a growing number of considerations for awards in individual workers’ comp cases.
“Court cases have started to erode nature of system and allowed additional elements to be considered,” he said, adding that considerations like sleep apnea, sexual dysfunction and psychological claims are becoming more commonplace in workers’ comp cases.
“We’re starting to see psych claims being a part of almost every claim,” he said.
Multiple body part claims, in which often the parts end up adding up to more than the sum, are also on the rise, Sektnan said, adding, “There are claims where people can be over 100 percent disabled.”
Jerry Azevedo, a spokesman for Workers’ Compensation Action Network, a group that represents the interests of employers, expressed concern about signs of rising claim severity in the report.
“In this economic environment, it’s safe to say that employers are on high alert when it comes to the increasing costs for workers’ compensation,” he said. “We know that claims costs are up significantly and that rates have started to creep up as a result. The red flag in this report is that the rate increases haven’t been enough for insurers to break even and there’s real problems in the form of more claims, more litigation and liens. Unless we start taking some action to reduce costs in California, larger rate increases are likely.”
Claim frequency in California has declined steadily for decades, and WCIRB estimates that there will be roughly 16 indemnity claims per 1,000 full-time employees in 2011 compared with nearly 50 per 1,000 full-time employees in 1991.
The decline is generally attributed to shifts in the state’s economy to less hazardous occupations, increased mechanization and greater attention to workplace safety, but in 2010 indemnity claim frequency rose sharply, while indemnity claim frequency was unchanged through the first nine months of 2011, according to the report.
“WCIRB has identified a number of factors contributing to the 2010 increase in claim frequency, including an increase in cumulative injury claims, growth in the number of late-reported claims, and a shift in the mix of medical-only claims and indemnity claims,” the report states. “The WCIRB is continuing its investigation of recent claim patterns to determine whether the 2010 increase is a single-year aberration attributable to recent economic patterns or an indication of a permanent shift in the long-term claim frequency trend.”
However, while the report reveals claim severity increased, the report states it only increased modestly.
“Following several years of increasing average claim costs after the full implementation of the reforms in 2005, claim severity growth moderated in 2010,” the report states. “Based on preliminary data, only a small increase is anticipated for 2011.”
According to the report, the preliminary estimate of the average cost of an accident year 2011 indemnity claim is roughly $67,000, which is at least 40 percent higher than the average cost of a 2005 claim but is only 2 percent higher than the average cost of a 2009 indemnity claim.
WCIRB believes some of the recent moderation of claim severity trends can be attributed to an increased frequency of smaller indemnity claims.
Despite no change in advisory pure premium rates in 2011, many insurers filed for manual rate increases.
The WCIRB report shows average filed manual rates as of July 1, 2011 were $3.27, but insurers continued to discount their filed manual rates.
The industry average charged rate for 2011 was $2.37, “a significant discount from the industry average filed manual rate,” and nearly $4 below the industry average charged rate in the second half of 2003 before worker’s comp reforms, the report states.
Despite discounting, the average charged rate has increased for the last three years, and for the first nine months of 2011 it was almost 10 percent over that for 2008, according to the report.
In November, California Insurance Commissioner Dave Jones approved an average advisory pure premium rate of $2.30 per $100 of payroll, slightly below the industry average filed pure premium rate as of July 1, 2011 of $2.37. The advisory rate change was effective Jan. 1.

Former South Dakota Deputy, Insurance Agent Sentenced for Fraud

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A South Dakota sheriff’s deputy and former insurance producer who pleaded guilty in an insurance fraud case has been sentenced to about 2 1/2 months in jail and 2 1/2 years of probation.
Forty-two-year-old Rob Hotchkiss of Delmont was accused of submitting fraudulent insurance applications to obtain commissions while working for a Sioux Falls agency in 2008. He pleaded guilty early this year to grand theft by deception and then resigned his job as a Douglas County deputy.
The Mitchell Daily Republic reported that state officials alleged Hotchkiss had created a fictitious company with fictitious workers for which he filed the insurance applications.
Hotchkiss already has paid about $7,000 in restitution, according to the Daily Republic.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

$350K Added For Hawaii Electric Vehicle Rebates

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Hawaii is adding more money to an electric vehicle rebate program and extending the deadline for the rebates.
State officials said Tuesday that because of an increase in demand for electrical vehicles, $350,000 is being added for rebates on new electric or plug-in hybrid electric vehicles and chargers.
The deadline for the rebates is being extended from March 31 to Nov. 1.
Energy officials say expanding the EV Ready Rebate Program provides a long-term solution as Hawaii works toward reaching energy independence.
Since March 2011, 618 rebates have been approved for 372 vehicles and 246 chargers. Hawaii residents can apply for rebates of up to $4,500 on electric vehicle purchases and up to $500 for chargers. In addition, federal tax incentives of up to $7,500 are also available.
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Pilot Project in Kansas, Missouri, Seeks Better Storm Warnings

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When weather radios start sounding warnings in the Wichita, Kan., area this spring, the computerized voice nicknamed Chance Storms won’t just alert listeners to severe thunderstorms or tornado warnings. He’ll tell people how bad the storm will be and what type of damage to expect.
In addition to saying a tornado warning has been issued, Storms may say, “Life-threatening situation. Extensive damage to homes and buildings. Uprooted trees and debris will restrict access into many areas.”
The change is part of a pilot project testing “impact-based warnings” in five National Weather Service offices: Wichita, Topeka, Kansas City, Springfield and St. Louis.
The pilot project, which launches on April 2, is designed to more clearly describe the threat and potential impact severe storms pose so residents in the warning areas can quickly make informed decisions about taking shelter, weather officials say.
“We’re trying to make it simplified and more to the point,” said Chance Hayes, warning coordination meteorologist for the Wichita office.
The language used in warnings and special weather statements was selected with help from social scientists who conducted interviews with survivors of the tornado outbreak in the Deep South last year.
Jay Prater, chief meteorologist for KAKE-TV in Wichita, said he welcomes the pilot project.
“People want that additional information: ‘Is this a Greensburg/Udall day? Or is this a weak, brief land spout day?”’ Prater said.
Greensburg was destroyed by a tornado on May 4, 2007; Udall on May 25, 1955.
The project is designed to help emergency managers and others in decision-making positions better know which storms pose a significant impact on a city or region, Hayes said. Members of the media also will receive the enhanced warnings so they can convey the threat and potential impact to viewers, listeners and readers. The enhanced warnings also will be broadcast on NOAA weather radios.
The test comes on the heels of the deadliest year for tornadoes in decades.
There were 550 people killed by tornadoes last year, including three in Kansas — one in Lyon County on May 21 and two in Stafford County on May 24. That total has been topped just three times in recorded history: 1925, with 794 deaths; 1936, with 552; and 1917, with 551.
Last April saw 753 tornadoes touch down, making it easily the busiest month for tornadoes since records began being kept.
The 158 people killed by the tornado that struck Joplin on May 22 is the highest death toll for any tornado since record-keeping began in 1950.
The events of 2011 “helped precipitate” the pilot project, Hayes said. “However, it’s something we as an agency have thought about for years.”
The criteria for issuing severe thunderstorm or tornado warnings won’t change, Hayes said.
Severe thunderstorm warnings will still be issued when hailstones reach 1 inch in diameter or winds of 60 miles an hour are recorded. If the storm has baseball-sized hail or winds of 80 miles an hour, the weather service will issue a special statement that the storm has become “very dangerous.”
Tornado warnings will still be issued when radar indicates rotation within a strong thunderstorm.
The new special weather statements will be added any time forecasters think there is the potential for significant impact upon residents or property, Hayes said.
Forecasters will continue to update the potential impact if storms intensify, Hayes said. If a confirmed tornado has the capacity to inflict catastrophic damage — similar to what happened in Joplin — the offices have the option to issue a new warning.
“It may be in everyone’s best interest to be alerted again,” Hayes said.
But those should be “very rare,” he said.
Laura Myers, a research professor at the Social Sciences Research Center at Mississippi State University, said the pilot project appears to be a promising step forward.
“They don’t need a lot of distinctions,” Myers said of residents facing the threat of severe weather. “They just need to know how bad it is.”
Myers lives in Alabama, and she said she’s already noticed a clear change in how warnings are being issued there even though Alabama isn’t part of the pilot project.
Along with a warning, she said, forecasters in Alabama are giving the proximity and path of the storm and actions people should take.
“We’re hoping that people are going to be more apt to listen,” Myers said. “It’s still a very uphill battle.”
Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

PCI Applauds Global Regulators’ Expanded Timeline for G-SII Rules

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The International Association of Insurance Supervisors (IAIS) announced that its timetable with the Financial Stability Board (FSB) to develop a means to identify “global systemically important insurers,” or “G-SII’s” for additional regulation has been delayed. It is now looking towards June, rather than this month, to publish a draft methodology for public comment.
The move was met with approval by the Property Casualty Insurers Association of America (PCI), who noted that the “initial, rushed schedule for this important project did not allow sufficient time for regulators to develop and receive public comments on appropriate metrics to identify and quantify systemically-risky non-insurance activities.”
Steve Broadie, PCI’s vice president of financial policy, stated: “We applaud the IAIS and the FSB for taking a more measured and deliberate approach. PCI and the rest of the global insurance industry have repeatedly urged the IAIS and FSB to take all of the time necessary to perform this important analysis properly.”
He also pointed out that the PCI is encouraged by the fact that the “IAIS has publicly recognized that traditional insurance business has not caused systemic risk. This announcement demonstrates that the supervisors involved understand the importance of allowing adequate time for a fully reasoned process rather than rushing towards an arbitrary deadline.”
IAIS Secretary General Yoshihiro Kawai announced the new timetable on March 13 in Basel, Switzerland. The previous schedule called for the IAIS to release the draft G-SII determination methodology to PCI and other IAIS observers in March for a 30-day comment period, with the FSB making a recommendation to the G20 Leaders Summit in June. It was anticipated that the final list of insurance G-SIIs, if any, would then be made public in November 2012. The new comment period, Mr. Kawai said, would be two months.
In November 2011, the FSB released the names of the initial group of 29 banks that qualified as global systemically important financial institutions (G-SIFIs). These G-SIFIs face potential capital surcharges of between 1 percent – 2.5 percent as well as significantly stricter oversight. The FSB, IAIS and securities regulators have been similarly working on methodologies to identify systemically important non-banks, including insurers and securities, along with the appropriate additional regulations for non-bank G-SIFIs.
Broadie added: “It is unclear as to what effect this delay will have on the overall G-SII project. But it is more important for the IAIS and the FSB to take the time to get it right, rather than to do it fast on arbitrary timelines. We appreciate their recognition at this point that this is the right approach to take.”
Source: Property Casualty Insurers Association of America