IFA MD-DC, September 2008

Transcription

Tenth Anniversary
1998-2008
Maryland
PRSRT STD
U.S. Postage
PAID
Baltimore, MD
Permit No. 7841
District
of Columbia
Insurance & Financial Advisor Monthly
10600 York Rd. Suite 203, Hunt Valley, MD 21030
DATED MATERIAL
Please deliver by Sept. 5, 2008
Required reading for successful insurance and financial service professionals
Change Service Requested
Volume 11, Issue 7 |
// New Law
Maryland mold
law to take hold
A new law phases in new
requirements regarding mold
remediation, one of the
property/casualty industry’s greatest
concerns.
Page 6
// Industry Appointee
Agents get new
voice on state board
The coastal property insurance market in Maryland and the mid-Atlantic is
“not very good,” according to an expert,
who said it will not improve until building
codes and construction techniques are
changed to lessen the likelihood of damage.
“It’s not going to get any better anytime soon,” said Rita Hollada, a Selbyville,
Gov. Martin O’Malley appointed
Randall Worthington Sr. of
York Insurance Services in Harford
County to the Maryland Health
Care Commission.
Page 8
Congress moving toward federalization
of insurance regulation, PCI says.
See story on page 17.
PSA looking
for expansion
// Legal Eye
Right footwear
and noncompetes
Columnist Patricia McHugh
Lambert explains how putting
on the right shoes is the key to
handling issues surrounding
noncompete clauses.
Page 8
// FINRA Plan
Annuity regulation
changes considered
FINRA is exploring whether
to streamline its regulations
regarding variable annuities. Page 27
Del.-based agent who specializes in
coastal insurance issues. She spoke recently to a Professional Insurance Agents
conference in Atlantic City, N.J.
“We need to approach construction
and building in different ways to improve
the insurance market,” Hollada said.
The lasting effects of Hurricane Katrina and Rita, as well as See “Coastal” on p27
Group predicts
federal coup
// Company Growth
PSA Insurance & Financial
Services is looking at
Washington, D.C., and Southern
Pennsylvania for growth after buying
the Baltimore office of Alliance
Benefit Group Mid-Atlantic. Page 12
Growth of Web
sales no threat
to agents...yet
Winds blowing against
improved coastal market
By Bob Graham
Former CEO Jews
takes MIA to court
for all $18 million
By Todd Karpovich
Former CareFirst CEO William L.
Jews has filed a federal lawsuit to recoup his $18 million severance package, nearly a month after the Maryland
insurance commissioner ruled that he
was only entitled to half of the amount
he negotiated with the insurer.
Commissioner Ralph S. Tyler originally ruled that the original proposal
violated the 2003 Maryland law that
limits executive comSee “Severance” on p19
September 2008
Baltimore Life
CEO pushes OFC
Low volume of agents in mid-Atlantic
could make area ripe for online sales
By Todd Karpovich
The number of consumers who go
online to buy auto insurance directly
from carriers continues to creep up, and
even though those numbers are expected to rise even more, agents should
not feel overly threatened…just yet, according to insurance experts.
A report by JD Power found that while
55% of all new auto insurance sales are
handled by local agents, the percentage
of buyers shopping and closing through
Web sites or call centers has increased.
In 2008, 44% of buyers who bought auto
insurance from a new insurer directly
from the carrier,
See “Online” on p22
Perception Varies
A telephone poll of 1,010 adults asked how specific
industries served their customers. Health insurers
and managed care/HMOs garnered slightly
better reputations than in the past, but still barely
beat tobacco companies (-43) and oil companies
(-32) in the public’s eye.
Pearson says plan has
‘strong support’ of big,
small life insurers
John Pearson, CEO of
Baltimore Life Insurance Co., testified before the U.S. Senate John Pearson
Banking Committee
that the life insurance industry shows
“strong support” for an optional federal
charter.
The ACLI represents large and small
life insurers, writing
See “OFC” on p21
Source: Harris Interactive
Departments
CALENDAR
26
DEALS
10
PEOPLE
CAPITOL HILL
20
LEGAL BRIEFS
14
NEW PRODUCTS
COMPANIES
13
LIFE/FINANCIAL
27
RECORD/FINES
16
9
30
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2 | Maryland / Washington D.C.
Insurance & Financial Advisor
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IFAwebnews.com
September 2008
HDHPs finally in
play in Md, D.C.,
economist says
Mid-Atlantic region has lagged behind
nation in interest in health plan option
By Bob Graham
High-deductible health plans and
health savings accounts are likely to see
increased sales in the next few years in the
region, a Baltimore economist predicts.
“As the economy
worsens, the consumer
will become more sensitive to price,” said Anirban Basu of the Sage
Policy Group, speaking
at the recent Maryland
Expo, sponsored by the
Maryland Assocation of Anirban Basu
Health Underwriters and the Maryland
chapter of the National Association of Insurance and Financial Advisors.
Going in the right direction
“The high-deductible health plan and
health savings accounts get us in the
right direction,” Basu said.
In the four years since the launch of
what was expected to the next great solution to rising health care costs, response has been tepid. About 5% of all
114 million American workers have enrolled.
In 2003, Congress created HSAs, requiring them to be coupled with high-deductible health plans carrying at least a
$1,050 deductible for an individual or
$2,100 for a family. The policyholder can
save pre-tax and tax-deferred revenue for
future health expenses, much like a 401(k).
Slow to accept HDHPs
The mid-Atlantic region has been slow
to accept high-deductible health plans,
HSAs and other methods of shifting
health costs because the competitive
health insurance market has kept costs
relatively low. But a sagging economy,
Basu said, will force people to seek lower
prices for health care.
Basu said it is difficult for people to
appreciate the increasing cost of health
care because they are not made aware of
it. High-deductible health plans and
HSAs provide the information they need.
“There’s no need to change behavior
when you don’t know the cost of your decisions,” Basu said. “You have to make
the consumer more liable for his costs.” IFA
Maryland / Washington D.C.
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IFAwebnews.com
September 2008
|
3
IFAInsights
We want your insights at insights@ifawebnews.com.
// Editor’sNote
Maryland • Washington, D.C.
Edition
Lights! Camera! Insurance hearings go live online
Tony Ondrusek
Publisher
tony@IFAmedia.com
Two states, Pennsylvania and New York, recently brought greater hits the second day, 1,993 the third and 950 the
transparency to their insurance regulation by providing live, In- last day. That’s more than 10,000 hits in all.
In both cases, many people who could not
ternet access to important public hearings through the departhave afforded
mental Web site. Other states
the time or inshould join in.
States’ efforts to shed more light on
convenience to Bob
In New York, three days of hearGraham
their activities could delay or forestall a
attend the hearings on contingent commissions
ings in person could watch them
and broker compensation were
federal takeover of insurance.
online, perhaps while doing somestreamed live. The hearings feathing else.
tured a who’s who of CEOs from
With the Bush administration and Congress threatening state inthe big property-casualty shops that agreed to stop offering contingent commissions, as well as others debating the issue. Nearly 500 surance regulation, efforts to provide more access to insurance regulatory hearings online in all states would help educate the public
people clicked on the live link.
In Pennsylvania, Insurance Commissioner Joel Ario took testi- about what state regulators do and why. And it might delay or foremony in the ongoing review of the controversial Independence stall more federal involvement in insurance regulation.
Blue Cross and Highmark Inc. merger proposal. The hearings gave
That’s my take,
insight into the process, the thinking of participants, the new insurance commissioner and the state of health insurance in Pennsylvania and nationally. The Pennsylvania Insurance Department
said its Blues hearing page received 4,733 hits on the first day, 2,348
Bob Graham
Executive Editor
bgraham@IFAmedia.com
Todd Karpovich
Senior Editor
tkarpovich@IFAmedia.com
Sharon Schafer
Advertising Sales Director
sschafer@IFAmedia.com
Keisha Beckles
Advertising Sales Associate
kbeckles@IFAmedia.com
Terri Reuter
Assistant Editor
treuter@IFAmedia.com
Molly Greeley
Reporter
mgreeley@IFAmedia.com
Jonathan Herndon
// OnlineDigest
blog.IFAwebnews.com
Carol Ondrusek
// BLOG COMMENTS
Exclusive content
Our most-read
online stories
|
1 NAIC market conduct proposal
draws growing industry opposition
Circulation Manager
subscribe@IFAmedia.com
“All I can do is inform the masses, not judge or criticize those who take a
different direction. Life is about choices. A choice one way or another has
consequences. I only ask that they choose wisely.”
A comment on the blog entry:
Health insurance gamblers deserve what they get when they lose
“I wonder what effect foreign acquisitions will have on companies’ A.M. Best/Moody’s
etc… ratings”
|
A comment on the blog entry:
|
Just exactly who says independent insurance agents are not
|
Insurance Agents & Brokers of America, that’s who!
2 Without contingent commission
agreement change, Willis could not
acquire HRH, Willis CEO says
3 Obama takes Hillary Clinton's
health insurance plan as his own
4 Life insurers forging closer
marketing ties with banks
Graphics Manager
jherndon@IFAmedia.com
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• issues
• • that affect
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Hunt Valley, MD 21030
phone: 410.6670864
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Bet on more big acquisitions of property-casualty insurers
getting their fair share? A representative of the Independent
- From a post by Tony
|
5 CEOs of Independence Blue Cross,
Highmark testify that merger won't
hurt competition
on Blog.IFAwebnews.com
Insurance & Financial Advisor MARYLAND & WASHINGTON,
D.C. EDITION is published by New Horizon Group Inc. The
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September 2008
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September 2008
|
5
New Maryland law on mold to take hold Oct. 1
Phasing in of new statewide requirements expected to appease concerns of property-casualty industry in state
Beginning Oct. 1, Maryland will phase
in new requirements for mold remediation services, including contractor insurance for mold remediation, licensing of companies through the Home
Improvement Commission and certification of workers and supervisors to
qualify for licensing.
Concern about mold contamination
has become one of the property/casualty
insurance industry’s top subjects. From
the insurance perspective, damage from
mold, like rust, rot and mildew is specifically excluded in standard homeowners
and commercial property policies.
Mold contamination is covered under
these policies only if it is the result of a
covered peril. For example, the costs of
cleaning up mold caused by water from a
burst pipe are covered under the policy
because water damage from a burst pipe
is a covered peril.
Former Maryland Insurance Commissioner
Steven Larsen issued an
order in 2003 that allowed insurers to limit
their mold liability, but
not to exclude it.
Larsen’s order also pro- Steven Larsen
hibited insurers from using an additional
deductible for mold loss and from unreasonably restricting the time period for
Ongoing fears about mold contamination in
buildings is one of industry’s top concerns.
reporting a mold claim. Insurers weren’t
allowed to use policy language that required a mold-related loss to be reported
during the policy period in which the
original covered loss occurred.
However, when Alfred W. Redmer Jr.
took over for Larsen, he immediately re-
Meeting Your /FFET and
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surers have to pay more for mold coverage, then those costs are going to trickle
down to consumers. As a result, no one
benefits from enforcing mold coverage.
Redmer said his order will allow insurers
to better price their products. He said
policyholders can then decide what policies are best suited for their needs, according to his report.
Other states have also dealt with serious mold issues.
In 2005, a state appeals court in Texas
reduced a jury award of $32 million in a
closely watched mold-damage lawsuit
against Farmers Insurance Company to
$4 million plus interest and legal fees.
Melinda Ballard filed a lawsuit in an attempt to force the insurer to cover water
and mold damage in her 22-room house
in Dripping Springs, Texas.
The Third District Court of Appeals upheld a $4 million award for actual damages but dismissed the $17 million
awarded for mental anguish and punitive damages. The appeals court agreed
that an affiliate of the insurance company
violated the state’s Deceptive Trade Practices Act but decided that the company
had not committed fraud and had treated
the policyholder fairly. The appeals court
also ordered the $8.9 million award for
legal fees to be recalculated. IFA
// CLIENT OUTREACH
Join us in Arizona, and let us start exceeding your expectations. To begin
setting your sights on Scottsdale, go to www.benefitmall.com or
contact your local BenefitMall Sales Representative today!
scinded the part of the order that didn’t
allow insurers to exclude mold from their
policies. At the time, Redmer said if in-
|
IFAwebnews.com
A workers’ compensation insurance
provider with a regional office in Baltimore has begun publishing a client
newsletter promoting better outcomes
through employee safety and well-being.
Key Risk, which provides workers’
compensation for employers throughout
the Eastern United States, has begun
publishing KeyCares because a healthy
workforce can directly contribute to a
company’s overall performance, the
company said. Key Risk released its first
edition of KeyCares to clients recently. IFA
September 2008
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September 2008
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7
Industry finally gets new voice on
Maryland Health Care Commission
LegalEye
Randall Worthington Sr. named to board 17
months after Salamon voluntarily resigned
Handling business noncompete
issues requires the right shoes
Agents and brokers will again be represented on the Maryland Health Care Commission as Randall Worthington Sr., who
owns York Insurance Services in Forest
Hill, was recently appointed to its board.
Gov. Martin O’Malley appointed Worthington, who is also a member of the
Maryland Agricultural Commission and
the Advisory Committee to the Rural
Legacy Board.
Worthington will be the first person
from the industry to be a part of the commission since Stephen J. Salamon served
three years as a commissioner. Salamon,
who was appointed by former Gov.
Robert L. Ehrlich Jr., voluntarily stepped
down in February 2007, shortly after
O’Malley, a Democrat, took over in Annapolis.
Worthington has a long history in the
insurance industry. In 1987, he formed
Randall P. Worthington Sr. Inc., a propertycasualty agency in Bel Air.
Five years later, Worthington formed a
second agency, Pest Control Insurance
Services Inc., later changed to York Insurance Services Inc., geared toward insurance for the pest control industry.
On March 1, 1999, Randall P. Worthington Sr. Inc. and York Insurance Services Inc. merged and also acquired the
Wilkinson Insurance Agency in Bel Air.
The combined agencies now operate under
the name ofYork Insurance Services Inc. IFA
// MERGER
Cecil, Harford financial
service firms merge
Port Deposit,Md.-based Financial Concepts recently joined the Kelly Financial
Group LLC in Bel Air, Md.
The Kelly Financial Group was
founded 11 years ago by Bryan E. Kelly
and William S. Kelly, who have been certified financial planners since 1998.
Financial Concepts’ James E. Backert
Jr. has more than 20 years of experience
in the industry. IFA
Like many women, I have always been uncomfortable
shopping at Saks Fifth Avenue. As far as I can tell, it is
the rows and rows of $500 shoes, which make me uncomfortable
about the store. And perhaps it was this discomfort about designer
shoes in the Saks store window, which
made me read the case James, LTD. v.
Saks Fifth Avenue Inc. In that case, a
major retailer was hit with a $1.6 million
judgment after it allegedly hired a competitor’s sales employees—even though
they had noncompete agreements. From
my calculations, that judgment
represented about 3,200 pairs of
designer shoes.
And then I contrast the result in that
case with the recent Maryland case of
When to put on running shoes
employee—then consider putting on your
combat boots and fighting to hire the
prospective employee. Of course, it
would be best to get advice from legal
counsel before going into battle.
The right time for new shoes
When to wear tap shoes and do
some fancy dancing. In order to avoid
claims that a hiring decision was made
in order to gain access to a competitor’s
secret sales information, an employer
The right footwear can help determine how
best to deal with noncompete issues.
Ecology Services Inc. v. Clym Environmental Services LLC. In that case, the
company found that a noncompete was
essentially worthless because the skills
of the employees were not unique and
the enforcement of the noncompete
would cause a hardship. Interestingly, the
relationship between employer and
employee in that case seemed as ordinary as a pair of well worn shoes.
Welcome back Kathy Gabor!
Kathy, Marc, Jeana, Andrea and Suzanne are here to help you with your
Advanced Life Sales, Long-Term Care and Annuities.
By Patricia McHugh Lambert
So what is an employer to do when
faced with the delectable prospect of
hiring a competitor’s star employee? As
Carrie Bradshaw of Sex and the City
might say, “It all depends on the shoes.”
When to wear running shoes and
quickly flee. If the only reason you are
even considering hiring an employee is to
capture a competitor’s customers—and
the prospective employee has a noncompete or nonsolicitation clause—put on
your running shoes and run from the
deal. This is particularly true where the
employee offers to bring confidential customer lists or information to the new job.
When to wear combat boots and
fight. If the prospective employee did not
have knowledge, ability or specialized
skills which would make it difficult for the
prior employer to find a substitute
|
IFAwebnews.com
should adopt policies which indicate that
the misuse of another’s trade secrets
will not be condoned. Where appropriate, employers should ensure that this
policy is set forth in an employee handbook and mentioned in offer letters to
new employees.
When to wear new shoes. If an
employer hires a new employee whose
activities are limited by a nonsolicitation
clause, the employer should consider
maintaining a data trail relating to the
new employee’s sales efforts. In this
way, the employer can show that the
new employee’s sales success is related
to hard work and ability rather than theft
of the prior employer’s trade secrets.
Bottom line, an employer needs to
check for restrictive agreements, must
consider how such agreements restrict
new hires, and determine whether the
potential new employee is worth the hiring risk. Without such consideration an
employer may just be waiting for the
another shoe to drop.
about the author:
Patricia McHugh Lambert is a principal and chair of
the Insurance and Financial Litigation Practice Group of
the Maryland law firm of Hodes, Pessin & Katz. The
firm has offices throughout the state. Contact Lambert
at 410-938-8800, by email at plambert@hpklegal.com,
or the firm’s Web site, www.hpklegal.com
September 2008
NEWPRODUCTS
Insurance & Financial Advisor | IFAwebnews.com
Small businesses can get pollution liability product
AIG Small Business, a unit of AIG Commercial Insurance, announced the
availability of Contractors Pollution Liability Insurance designed specifically
for the needs of contractors with revenues under $10 million.
Property/
Casualty
The product provides legal liability coverage for bodily injury, property damage and environmental damage resulting from covered operations at a job site, whether performed
by the contractor or a subcontractor.
CPL has a minimum deductible of $2,500 and limits from $300,000.
Company eyes new hearing health plans
Health
Insurance
Ameritas Group, known for dental and eye care coverage, announced its
entry into a new benefits area with SoundCare hearing health plans.
Bowie man sentenced for comp fraud
Cable installer received 17 years of living
expenses in workers’ comp. fraud case
A Bowie man was sentenced to six
months in prison and ordered to pay
$32,311 in restitution after pleading
guilty to workers’ compensation fraud.
The prison term will be followed by
four months of home confinement and
three years of supervised release for
Joseph Mustafa, 41, a temporary cable
installer for the U.S. Senate, hired in February 1989. He suffered a left leg injury
about one month later. His monthly benefits check then paid his living expenses
for almost 17 full years, records show.
From April 1989 until February 2006,
Mustafa reportedly received $220,608 in
disability compensation benefits from
the Department of Labor’s Office of
Workers’ Compensation Programs.
However, by 1995, investigators discovered that Mustafa was apparently well
enough to begin racing cars at racetracks across the mid-Atlantic region to
supplement his unemployment compensation benefits.
Beginning in January 2004, Mustafa
reportedly worked for Code 3 Security,
which paid him more than $40,000 before terminating him in June 2005.
Thereafter, Mustafa created a company called APS Security, which paid him
$29,087 in 2005 and $85,573 in 2006.
Mustafa did not report these earnings to
the workers’ compensation program. IFA
Benefits cover hearing exams, hearing aids and hearing aid maintenance. Qualifying
employer groups may select stand-alone SountCare or tie the coverage to dental or medical benefits, the company said.
“The same technology explosion that delivered useful and fun devices like MP3 players,
cell phone earpieces and gaming headsets is having an unwelcome side effect: hearing
damages at ages younger than anyone ever imagined,” said Ameritas Group president
Ken VanCleave, who added that the company created SoundCare to answer this growing and largely unmet need.
Tools to build Hispanic business introduced
Progressive announced that it is rolling out a suite of informational and cobranded Hispanic advertising materials exclusively for its agents. The
package of materials is intended to be “culturally relevant and meaningful” for the Hispanic demographic, according to Jonathan Klein, Hispanic marketing manager for the
company.
Property/
Casualty
The package includes a Spanish-language welcome kit for agents to hand out to new
customers; bilingual educational materials including an auto insurance basics brochure;
and agency marketing materials, including a Spanish-language referral card.
New software helps clients document property
Collectify LLC released its new Collectify Home Inventory Edition software,
a tool intended to increase customer satisfaction and prevent claims problems by helping clients document their home and possessions, according to the
company.
Property/
Casualty
The product allows agents to accept clients’ inventory data in PDF or spreadsheet form,
making it easily accessible at the time of a claim, the company said.
Collectify is offering the product to independent agents at a special volume price.
New insurance-to-value product introduced
The Hartford Steam Boiler Inspection and Insurance Co. introduced a new
insurance-to-value service to help insurers address inadequate valuations for
business personal property and building that cost insurers millions and put policyholders
at risk.
Property/
Casualty
HSB InSight allows insurers to determine appropriate value ranges for either an entire
book of business or for individual buildings. It identifies where business personal property and real property valuations are below or more than an established range of
acceptability and permits a company to track the ITV performance over time, according
to the company.
HSB InSight also helps carriers and agents protect policyholders and ensure their insurance limits will be sufficient when major loss occurs.
For the latest New Products go to IFAwebnews.com.
|
IFAwebnews.com
September 2008
|
9
Agents gain access to group products
DONEDEALS
Harleysville agents in Maryland now have access to Kelly’s administrative services
Harleysville Life Insurance Co. formed
a new strategic partnership with Kelly &
Associates Insurance Group that will enable Harleysville’s agencies in Maryland
to access the insurance company’s group
insurance plans in conjunction with the
professional administrative services provided by the Hunt Valley, Md.-based insurance brokerage.
Through this partnership, agencies can
help their clients tap into a wide range of
group products, Harleysville officials said.
Harleysville Life, established in 1960,
offers group term life, and short- and
long-term disability plans through con-
tracted independent agencies. KELLY,
founded in 1976, is one of the largest
group insurance third-party administrators in the Mid-Atlantic region.
Together, Harleysville Life, based in
Harleysville, Pa., and
KELLY, led by its president and CEO Francis
X. Kelly III, offer Maryland agencies the ability
to combine Harleysville
Life plans with other
lines of group benefits
Francis X. Kelly III
through one bill and a
single enrollment process. IFA
Fiserv sells majority interest in insurance business
Fiserv Inc., a provider of information technology services to the insurance
and financial industries, has sold a 51% share in its insurance business to
Trident IV, a private equity fund managed by Stone Point Capital LLC.
Life
Insurance
Trident will invest $205 million in equity and $335 million in debt to acquire the majority
interest in Fiserv’s insurance business, Fiserv said.
Fiserv expects to receive $510 million in net after-tax proceeds and to retain a 49%
equity interest in Fiserv Insurance Solutions. The transaction includes nearly all aspects
of the company’s insurance segment.
The current management team and employee base will continue with the company,
which will be known as Fiserv Insurance Solutions Inc., according to Fiserv.
OneBeacon acquires EBI Insurance Services
// REGULATION
Deadline looms for agents who want to sell LTCI in Maryland
Maryland requires that producers
who sell long-term care insurance in
Maryland must fulfill a new training requirement by Sept. 10.
This requirement is effective immediately for newly licensed producers who
want to sell long-term care insurance and
those adding the line of authority.
The new training requirement, which
OneBeacon Insurance Group signed an agreement to acquire
Entertainment Brokers International Insurance Services, a national managing agency specializing in the entertainment, sports and leisure industries.
Property/
Casualty
is separate from the continuing education requirement already in place, requires producers to complete a one-time,
eight-hour course. The Maryland Insurance Administration adopted the regulation on Sept. 10.
The Insurance Agents & Brokers of
Maryland will offer four two-hour, Webbased training programs on LTCi. IFA
EBI provides commercial insurance products from its locations in Los Angeles, Calif., and
New York City, N.Y.
The company also provides excess workers’ compensation coverages as a wholesaler
from its Westlake Village, Calif., office. EBI will continue to operate as a managing
agency with a network of 500 independent agents and brokers, according to OneBeacon.
OneBeacon’s agency partners will have access to EBI’s products, and most business
produced by EBI will convert to OneBeacon upon renewal, the company said.
CIGNA teams with Marsh on packages
The Strength To Weather Any Storm.
The Power To Provide Brighter Solutions.
CIGNA and Marsh ConsumerConnexions joined forces to provide employers with a package intended to ease the financial and administrative burden
of providing retiree benefits.
Retiree
Benefits
Retirees can be difficult to reach as they may not use the Internet and may have relocated after retirement, the companies said.
Marsh starts managing the communication as an employee retires, providing toll-free
telephone access as well as web capabilities for enrollment, billing and payment,
changes to personal information and general questions, the companies said.
UHC patients get Beijing Olympic spirit
UnitedHealth International teamed up with International SOS, a worldwide
provider of medical and security assistance services and international
healthcare. The joint venture is designed to provide assistance to UnitedHealthcare customers needing access to health care while attending the Olympic games in Beijing.
Health
Insurance
Individuals with UnitedHealthcare health insurance will have access to emergency and
routine medical care; medical monitoring and outpatient case management; assistance
with documentation for insurance claim forms; and medical and dental referrals.
These assistance services are available at no charge to UnitedHealthcare policyholders
and are available through Sept. 15.
Alan Jay Kaufman
Chairman, President & CEO
Carriers align to help ‘Home Edition’ family
BB&T Insurance Services and The Hanover Insurance Group will work
together to offer insurance advice and one-year of homeowners insurance
coverage to the King family of Charlotte, which recently was granted a home makeover
by "Extreme Makeover: Home Edition."
Property/
Casualty
At Burns & Wilcox, we believe strong leadership ensures a bright
future. With Alan Kaufman’s vision, we’ve grown into North
America’s largest and most capable specialty insurance wholesaler.
If you want a company with the foresight to stay ahead of the
storm, turn to the professionals with the speed, intelligence and
agility to get the job done — the specialists at Burns & Wilcox.
Baltimore, Maryland
The Charlotte, N.C., episode will air this fall on ABC and promote both companies.
410.567.8120 fax 410.540.9140 baltimore.burnsandwilcox.com
For the latest Done Deals, go to IFAwebnews.com.
|
IFAwebnews.com
September 2008
WE’RE
REVOLUTIONIZING
HEALTH CARE AGAIN
OUR NEW EXPANDED PRODUCT PORTFOLIO WILL CHANGE EVERYTHING YOU THINK
ABOUT KAISER PERMANENTE.
It’s time to look at Kaiser Permanente again and discover our
medical records 24/7. A new, integrated Health Risk Assessment
new levels of convenience and flexibility. Our HMO now features
tool will notify members and their physicians of possible
new provider networks, a PPO network option, a POS plan
health issues. Call Patrick Durbin at (301) 816-6509 or Rob
design, and high-deductible and health savings account
Tidgewell at (703) 208-6295.
products. In addition, only Kaiser Permanente enhances the
doctor-patient relationship with the combination of an electronic
medical record and an online personal health record. Members
can e-mail their doctor’s office or pharmacist, check lab
results, manage appointments, and view portions of their
kpnewchoices.org
Take a quick healthy business
survey and we’ll send you
a complimentary electronic jump rope!
Go to kpnewchoices.org to begin.
Priority code: thrive4
Kaiser Foundation Health Plan of the Mid-Atlantic States, Inc. 2101 East Jefferson Street, Rockville, MD 20852
|
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08075 5/08 - 12/08
September 2008
|
11
// HEALTH INSURANCE
EBCA has general agency deal with UnitedHealthcare
Employee Benefits Corp. of America or
EBCA has been signed as a general
agency of UnitedHealthcare.
Mark Khatib, president of the McLean,
Va.-based brokerage,
said the new deal allows EBCA to provide
products and services
for groups of 2-50 eligible employees through
Mark Khatib
UnitedHealthcare.
EBCA, which serves Northern Virginia
and the Washington, D.C. metropolitan
area, has general agency deals with nu-
merous health insurers and has worked
to add UnitedHealthcare to the list for
some time, Khatib said. Through the
partnership, EBCA can now offer its
clients new plans and product designs.
The deal is one of many general
agency arrangements with UnitedHealthcare, made possible by its decision in fall 2006 to abandon its direct
sales model in the region. Mid Atlantic
Medical Services Inc. or MAMSI, a
Rockville, Md.-based health insurer that
merged with UnitedHealthcare for $2.4
billion in February 2004, had used its own
brokers to sell its products. IFA
PSA looks for north, south
expansion after acquisition
Maryland-based firm buys Baltimore
office of employee retirement company
By Todd Karpovich
Hunt Valley, Md.-based PSA Insurance & Financial Services, which offers
property-casualty insurance, employee
benefits, and retirement services, continued its expansion with a deal to buy
PSA now has set its sights on Washington and
Southern Pennsylvania for further growth.
// RECOGNITION
CareFirst claims ‘Best of Blue’ awards for customer service
CareFirst BlueCross BlueShield was
recently recognized as a “Best of Blue”
insurer by the Blue Cross and Blue Shield
Association, which is headquartered in
Chicago with offices in Washington, D.C.
The company’s National Capital Area
plan was rated 10th out of 59 Federal Employee Program Blues plans nationwide
and its Maryland affiliate was rated fifth,
the company said.
This is the 11th consecutive year that
CareFirst’s National Capital Area plan
received the “Best of Blue” award, which
is given for providing excellent customer service.
CareFirst was recognized in both
arears for overall plan excellence; claims
processing; customer service; maintaining low operational and administrative
costs; and increasing FEP membership. IFA
PSA has not set a limit on how much it
wishes to expand.
“We have not targeted a certain number of employees that we are working toward or number of offices we plan to
open,” Hoffman said. “Rather, we are an
opportunistic firm that constantly surveys the market. We believe we are perfectly positioned for further growth, with
the Baltimore office of Alliance Benefit
Group Mid-Atlantic, which specializes in
employee retirement programs.
PSA has set its sights on Washington,
D.C., and Southern Pennsylvania as possible areas for further growth, company
officials said. The deal with ABG fits into
the PSA’s three strategic initiatives: retention of existing customers, developing
new customers, and mergers and acquisitions, company officials said.
“Our business will extend to other
markets via a ‘hub and spoke’ structure,
where the hub will be our Hunt Valley
headquarters,” said Justin Hoffman, marketing manager for PSA Financial. The
company recently moved from
Lutherville to the new headquarters.
Adding 20 employees
With the most recent deal PSA will add
ABG’s 20 Baltimore employees, bringing
its overall staff to 180. The deal also allows
PSA to add ABG’s book of business, which
includes large companies with up to $50
million in retirement plan assets and serve
companies with traditional pension
funds. Financial terms were not disclosed.
expert knowledge, critical mass, and systems infrastructure in every area where
we operate,” Kushlis said.
‘Absolutely interested’ in growth
“We are always interested in talking to
firms and individuals that are looking to
join a market leader like PSA. If a deal
makes sense for our company, employees and clients we’re absolutely interested in further growth,” he said.
Ed Kushlis, PSA senior vice president
of new business development, said prior
to the ABG deal, PSA’s retirement planning services focused on the small-tomedium business market.
Last year, PSA acquired RSM
McGladrey Insurance Services, an employee benefits firm, and formed Construction Risk Management, which
boosted its presence in the construction
industry.
ABG has been selling off some of its assets. Benefit Plans Administrative Services Inc., a subsidiary of Community
Bank System, Inc., bought the Philadelphia division of ABG MidAtlantic from
BenefitStreet earlier this month. IFA
// CRIMINAL CASE
Owings Mills man pleads guilty to arson for insurance funds
An Owings Mills man pleaded guilty to
having someone start a fire at his home
to collect insurance money and now
faces seven years in prison, according to
federal authorities.
Keith T. McMahon, 41, admitted to investigators that in mid-January, he offered someone $10,000 to burn down his
home on Caves Road in Reisterstown,
Md. On Jan. 29, McMahon met the same
person, not named by prosecutors, at his
|
IFAwebnews.com
house and asked him to “burn the house
to the ground,” court records show. The
other person set fire to the house.
McMahon then filed an insurance claim
for the damage to his house and property,
and received money and benefits from the
unnamed insurance company.
McMahon was reportedly having financial difficulties and was behind on
the mortgage payments for his home,
where he also had an office. IFA
September 2008
Lower premiums. Healthier bottom line.
COMPANYNEWS
Starmark Healthy Incentives
Self-funded health plans for Maryland
groups with three to 50 employees
Lower premiums than traditional health insurance
Limited liability through stop-loss insurance
Strong network access, including Aetna Signature AdministratorsSM (ASA)
PPO Network
BISYS Specialty Programs changes name
BISYS Specialty Programs, a division of BISYS Commercial Insurance Services, changed its name to Five Star Specialty Programs, a division of Crump
Insurance Services Inc. The change is part of the consolidation with Crump Insurance
Services that was announced in August 2007.
Name
Change
The Five Star name was chosen because of the company’s commitment to providing
“five star service” to clients, according to the company. The name was also a nod to the
organization’s legacy, as Five Star Managers was the original name of its professional
liability programs.
The re-branding campaign includes advertising and a new Web site, the company said.
UnitedHealthcare’s structure changed
Want to learn more?
View the online Healthy Incentives video and contact Tim Cremin today!
Video: www.starmarkinc.com/starmark/media/healthy_incentives_video.html
*i\ÊÇä{°xx{°{{£ÊUÊ>\ÊÌ°VÀiJÌÀÕÃÌ>ÀÃ°V
MBS is a Trustmark company that specializes in the sale of Starmark small group health
plans. Plans administered by Starmark are fully insured by Trustmark Life Insurance
Company, Lake Forest, IL. Plan availability and/or coverage may vary by state.
S66908-HI02
UnitedHealth Group announced changes at UnitedHealthcare designed to
create a unified full-service brand for all of the company’s commercial benefits businesses and simplify how it communicates and interacts with customers,
physicians and other care providers. The changes are part of the company’s overall strategy to improve the operating performance of its key businesses, according to
UnitedHealth Group.
Health
Insurance
Something
to think
about.
UnitedHealthcare will become the brand and organization serving all commercial benefits
markets, including national accounts previously under the Uniprise brand; it will also
serve the health benefit needs of large governmental employers and their employees, as
well as student communities, according to the company.
Progressive offers new insurance program in N.J.
Progressive recently announced an optional car insurance program for New
Jersey drivers offering lower rates on vehicles that are driven in less risky
ways. MyRate gives drivers a customized rate based on how, how much and when their
car is driven.
Auto
Insurance
The IROQUOIS Group
®
Drivers who choose to sign up for the program receive a small wireless device that plugs
into a port in their car, allowing Progressive to see the way, when and how often the car
is being driven.
For commercial and personal insurance, Iroquois Mid-Atlantic, may provide
the solution to your needs.
Why consider joining Iroquois?
The company said it started the program because “how you drive should affect what
you pay.”
Here’s what you will get:
Direct access to additional carriers*
Lower volume commitments
Competitive commission rates
Profit sharing opportunities
Discounts on agency-related products and services
Access to large commerical products
and specialty markets
Nationwide receives award from IMCA
Nationwide Financial Services Inc. won “Best in Show” for its Sevolution
campaign at the 2008 Insurance Marketing Communications Association
Showcase competition and awards gala. The campaign won the award in the
Producer/Agent Marketing Sales Promotion category.
Financial
Services
The Sevolution campaign was designed to promote enhancements to the Nationwide
Lifetime Income Rider, a variable annuity living benefit.
As an Iroquois Member Agent you won’t get:
Initiation fees
Interference with current direct contracts
Restrictions on using outside markets
A loss of equity in your agency
More than 325 entries from 60 companies were submitted to the IMCA competition.
Humana enhancing services to Spanish-speaking
Humana Inc. enhanced service to its Spanish-speaking members by launching its Interactive Voice Response Systems, an automated telephone
technology that allows a computer to interact with members through pre-recorded voice
responses, to gather and provide information and to route calls to further resources
including live customer service representatives.
More than 1,500 independent agents in 35 states have discovered the
benefits of Iroquois membership. For more information, contact Matt Ward
at 804-320-6984 or email him at mward@iroquoisgroup.com. You may also
visit our website at www.iroqma.com.
Health
Insurance
*subject to individual company approval
The Spanish-speaking interactive voice response systems were enhanced to facilitate
communication with Spanish-speaking Humana health plan members, who will now be
able to more efficiently request new identification cards, get a proof of insurance fax or
make a health savings account withdrawal, according to Humana.
IROQUOIS
Mid-Atlantic
Creating Productive Agency-Carrier Relationships for over 25 Years.
For the latest Company News, go to IFAwebnews.com.
®
|
IFAwebnews.com
September 2008
|
13
MIA nabs agent on same error twice
Fine of $1,000 levied against Fulton man after prior fine of $500 for same violation
A Maryland insurance producer was recently fined $1,000 for committing an offense again that he had been fined for
eight months before, the Maryland Insurance Administration recently reported.
Kenneth W. Lee,of Fulton, Md., was
ordered to pay $500 on Sept. 28, 2007, after an MIA investigation into a consumer’s complaint revealed that he incorrectly reflected the signing location
on a life insurance policy application as
Washington, D.C. The form was actually
signed in Maryland.
The MIA also reported that the Allianz
Life Insurance Co. of North America application in this matter was not approved
for use in Maryland.
On Nov. 2, 2007, the mother of the
consumer in the original case against Lee
alleged three Allianz policies reflected errors. The MIA said the three applications
incorrectly reflected the signing location
as Washington, D.C., not Maryland. In
addition, the three applications were not
approved for sale in Maryland, according
to the MIA.
Based on the results of the investigation, the MIA concluded that Lee knew,
or should have known, that the incorrect
signing location was recorded on applications that were not approved for use in
Maryland, records show.
LEGALBRIEFS
Medical organizations forced to arbitrate, not sue
A number of Kansas City, Mo., medical organizations that wanted to sue
United Healthcare Services and BlueCross BlueShield of Kansas City for
alleged price fixing were thwarted recently after a Missouri appeals court reversed a
decision to allow them to bypass arbitration, according to written reports.
Health
Insurance
The organizations each had contracts with either BCBSKC or United Healthcare Services,
an affiliate of UnitedHealthcare, which operates in the mid-Atlantic region. The contracts
set reimbursement rates that the insurers would pay for the medical organizations’ services, and also contained arbitration agreements, reports said.
In a lawsuit filed in a Missouri circuit court, the organizations alleged that the insurers had
taken part in a monopoly, which violated the state’s antitrust laws, and fixed prices to
keep reimbursement rates low, according to reports. The insurers requested that the
Circuit Court judge order arbitration, but were denied.
The decision was reversed after appeal. The appeals court cited the arbitration agreements in the companies’ contracts in their decision, according to reports.
Big
BUSINESS • AUTO • HOME • SURETY
Amerigroup to settle discrimination case
Virginia-based Amerigroup Corp. recently agreed in principle to settle a lawsuit for $234 million, according to reports. The suit was brought against the
insurance company for alleged discrimination against high-risk patients, including pregnant women, by its Illinois health plan, reports said.
Property/
Casualty
Breakthroughs
Under the terms of the proposed settlement, the company will pay $225 million to the
United States and the state of Illinois, plus approximately $9 million in legal fees, and will
not admit any wrongdoing. A jury found that the company passed over pregnant women
and other high-risk patients at the same time that it was receiving Medicaid money from
the Illinois Department of Public Aid meant to ensure that these same patients received
services, according to written reports.
We firmly believe that the easier we make it to do business with us, the more our
agents will be likely to write business with us. Real-time quoting and
user-friendly systems for easier agency workflow. 24/7 online claims
reporting for policyholders. Local people-presence and in-agency support.
These are just some of the ways we break through the
maze of automation to support
our agents and their customers.
HCC Insurance settles stock options complaint
HCC Insurance Holdings Inc. recently reported that it reached a settlement
with the U.S. Securities and Exchange Commission over its stock option
granting practices.
Securities
Case
HCC said it consented to a permanent injunction against future violations of the reporting, books and records and internal controls provisions of the federal securities laws.
The settlement resolves an SEC investigation into the company’s historical stock option
granting practices. The company said it neither admitted not denied the allegations contained in the SEC’s complaint.
What do you expect from
your insurance carrier?
Court upholds $16M bad-faith suit against Allstate
The Missouri Court of Appeals recently upheld a bad-faith jury verdict
against Allstate that consists of more than $16 million in damages, according to reports. The suit was filed following a car accident that resulted from drunken
driver that crossed a center line and collided head-on with another vehicle. The drunken
driver, Wayne Davis Jr., and a husband and wife, Edward and Virginia Johnson, in the
other vehicle survived but suffered life-threatening injuries. Each was hospitalized for
more than one month and their combined hospital bills were $320,000, reports said.
Property/
Casualty
Although the couple offered to settle for the drunk driver’s insurance policy limits of
$50,000, Davis’ carrier, Allstate Insurance Co., reportedly did not respond until six
months later, a violation of Missouri's statutory 60-day limit, attorneys said.
The Johnsons’ eventually reached a settlement with Davis, who admitted that he was
drunk and consented to $2.5 million in damages and $1.5 million in punitive damages,
and more than $1 million in prejudgment interest. The Johnsons agreed not to try to
recover the judgment from Davis. Instead, they sued Allstate jointly with Davis to
recover 90% of what they won in the trial against Allstate, which happened in 2005.
Become a Penn National Insurance agent.
Go to www.PennNationalInsurance.com to find out if your agency is our ideal candidate.
For the latest Legal News, go to IFAwebnews.com.
|
IFAwebnews.com
September 2008
State-run health program’s growth causes no pain to agents
Maryland Health Insurance Plan appears to appeal to people who have been declined by at least one private carrier
By Todd Karpovich
The increase in people who are gaining coverage through the Maryland
Health Insurance Plan has not cost
agents business, a board member of
MHIP who represents agents and brokers on the health plan’s board said.
Enrollment in the plan, which is a
state administered health insurance program for Maryland residents who do not
have access to health insurance, rose to
almost 15,000 after having just more than
6,000 two years ago, according to reports.
The state reportedly has boosted funding
for the program to meet the increase in
membership, increasing its commitment
to $107 million this year, compared to
$81 million in 2007.
pact on the agent community with the
increased members in the state-run program. Oldfield said the increase in the
The increase in MHIP enrollment
and finding more coverage of the uninsured falls in line with Gov. Martin
People enrolled in MHIP rose from 6,000 two
years ago to 15,000 this year.
No negative impact
Bethany Oldfield, who works with Insurance Solutions in Annapolis and represents agents and producers on the
MHIP board, has not seen a negative im-
// The four facets of MHIP
When Maryland residents enroll in the Maryland Health Insurance Program,
they have a choice of one of four plan benefit options:
program is indicative of more consumers
seeking individual coverage.
“Most of the people I have worked
with that have gone to MHIP have been
declined with an individual policy,” Oldfield said. “So you’re working with them
twice. You have to go to the commercial
market first, be declined, and then go
through the MHIP program. You have to
explain to them how it all works.”
• An HMO plan from CareFirst BluesChoice
Increased demand
• A PPO plan from CareFirst Blue Preferred with $500 medical deductible
MHIP’s main phone number was not
taking phone calls because all lines were
busy for several weeks.
Oldfield said one of the challenges is
balancing the program’s budget with the
increased demand and determining the
best course of action with plan design.
• A PPO plan from CareFirst Blue Preferred with $1,000 medical deductible
• A high-deductible health plan with $2,600 combined medical
and pharmacy deductible
Source: Maryland Health Insurance Plan
O’Malley’s pledge to find ways for the
state to provide more access to health
care. New legislation already took effect
in Maryland that expands medical coverage to more than 100,000 uninsured
has helped the state move up 23 spots
among all states that help provide access to care, O’Malley said.
Prior to that legislation, Maryland
had almost 800,000 residents who were
uninsured, and was ranked 44th in providing healthcare for parents through
Medicaid.
As a result of the new legislation,
Maryland has moved up to the 21st position, which O’Malley said helps the
state become one of the least restrictive
states in providing health care to adults
and children. IFA
Guiding you in the right direction
for group ancillary benefits insurance.
Eastern Life & Health takes a fresh outlook on dental, short- and
long-term disability, and term life insurance, leading to better
outcomes for our clients and their employees. If you're looking for
group ancillary benefits insurance, set your course on Eastern.
For more information visit www.elhins.com or call
1.888.654.7100 to speak with an Eastern Life & Health group
sales representative today.
Eastern Life & Health Insurance Co.
|
IFAwebnews.com
September 2008
|
15
PeopleNews
Seeking
balance next
quarter?
The National Alliance for Insurance Education & Research gave Kim Martin the
Outstanding CSR of the Year Award for
Maryland. Martin has been associated
with the Avery Hall Insurance Group in
Salisbury, Md., since 1999.
Richard Dannenberg and Tim Hogan
joined the Baltimore office of Boyden, an
executive search firm that recently
expanded into the insurance sector. Dannenberg specializes in actuarial, finance
and risk management, and was named as
a managing director. Hogan brings insurance sector and human resources
functional experience and joined as a principal and senior member of the firm’s
insurance practice.
If your end of year advertising
balance includes unspent
funds, odds are, next year’s
scale won’t tip your way.
Use it or lose it. The 4th Quarter is approaching and
there is no better way to invest your remaining marketing
dollars than targeting local agents and brokers.
IFA penetrates the local agent community deeper than any
other branding campaign. Period.
Find Balance.
Call Sharon Schafer for special incentives & packages,
410-667-0864
Gary Waldych
Meagan Krause
Kohut
Atlantic/Smith, Cropper & Deeley
Insurance Brokers, based in Willards,
Md., announced Gary Waldych as the
top producer for June. Waldych specializes in commercial lines insurance. Also,
Meagan Krause Kohut also received special recognition for her June production.
Kohut is an account executive and joined
A/SCD in 2007.
Roger Diehl was
elected president of the
National Association
of Insurance and
Financial AdvisorsMaryland. Diehl has
been a member of
NAIFA for almost 30
years.
Roger Diehl
Gail Bartlebaugh and Karen Moore joined
American Insurance in Fallston, Md.
Bartlebaugh and Moore previously worked
for McCool Insurance in Elkton, Md.
Jill A. Hudock was hired by BottomLine
Growth Strategies as CFO Advisor.
Hudock previously worked as chief financial officer and executive vice president of
a multi-services health care company.
UnitedHealthcare, a division of UnitedHealth Group, appointed Jeff Lucht as
senior vice president. Lucht previously
worked for Aetna for more than 20 years,
where he served most recently as president of national accounts for the
company’s Mid-Atlantic region.
Send Your News
• The easiest way to submit events is online:
Brett S. Lininger
joined the law firm of
Semmes, Bowen &
Semmes in Baltimore,
Md. Lininger is a lobbyist
for the Independent
Insurance Agents of
Maryland.
Phone: 410.667.0864 Fax: 410.667.7977
Email: edit2@IFAwebnews.com
// NEW PRODUCT
Brett S. Lininger
Karen Moore and Gail
Bartlebaugh were hired as agents by
American Insurance in Baltimore, Md.
Prior to joining American Insurance, both
worked for McCool Insurance Agency.
Jeffrey Embow has joined Towson, Md.based Riggs, Counselman, Michaels &
Downes as a sales account executive with
the insurance brokerage’s financial sales
department. Embow will work with clients
in both Maryland and Pennsylvania.
Alok Gupta was selected by CareFirst
BlueCross BlueShield as senior vice president and chief information officer.
Previously, Gupta was vice president and
global head for Siemens Healthcare’s computer-aided diagnosis & knowledge
solutions business.
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IFAwebnews.com
IWIF forms program for
builders in Southern Md.
IWIF Workers’ Compensation Insurance has created a program for members
of the Maryland-National Capital Building Industry Association.
The program offers members a 5% discount on IWIF standard premium rates
and promotes workplace safety. The organization serves builders and developers in Calvert, Charles, Montgomery,
Prince George’s and St. Mary’s counties
and Washington, D.C. IFA
September 2008
PIA sounds the alarm on possible federal overthrow
‘Innocuous-sounding’ bill in Washington could open door to federal regulation of insurance, trade group suggests
By Todd Karpovich
A group of insurance agents is accusing lawmakers of trying to use an “innocuous-sounding” proposal to develop
an insurance information office to actually take over the regulation of the insurance industry.
Despite protests, there is growing momentum on Capitol Hill for an optional
federal charter. However, legislators
could not complete the task before the
annual August recess.
The Insurance Information Act of 2008
(H.R. 5840) was introduced earlier this
year and seeks to create an agency for insurance information for members of
Congress and the White House. However,
as the drafting process for the bill proceeded, the Treasury Secretary’s powers
were expanded, giving him authority to
preempt state insurance laws, regulations
and practices, not only when he says they
conflict with international agreements,
but also when he says they conflict with
“national insurance policy” as set by the
Treasury Department, according to officials with the National Association of Professional Insurance Agents.
Markets Subcommittee approved H.R.
5840, the group said the bill had been
transformed into legislation that would
enable a federal takeover of most insurance regulation.
“This is no longer a bill that is only
about creating an insurance information
office,” said PIA National President-elect
Kenneth R. Auerbach. “The current version of this bill would effectively lay open
to review and approval by the Secretary
of the Treasury the laws and practices of
all 55 United States jurisdictions in most
matters relating to insurance.” IFA
// What’s at stake with reform
• Under a House of Representative’s proposal (H.R. 5840) the treasury secretary is
granted new powers to regulate insurance nationally and locally.
• The secretary becomes the principal federal authority for domestic and international
insurance issues of national interest.
• As part of that imprimatur, the secretary is given the power to determine which state
laws, regulations and industry practices will be preempted.
• The law would effectively gut the McCarran-Ferguson Act of 1945 and the GrammLeach-Bliley Act of 1999, which establish and affirm that the states are the regulators
of the business of insurance.
‘Misleading bill’
“This bill has been misleading from
the outset,” said Robert Page, the PIA’s
national president. “The title of the bill is
a misnomer and the rhetoric of its supporters is designed to conceal what is really going on here. This piece of legislation is part of a coordinated push by
advocates of federal insurance regulation to sweep away opposition and advance their agenda in a disingenuous
manner.”
As the PIA officially protested the evolution of the bill, a group of industry leaders testified on Capitol Hill about the
need for a federally regulated insurance
system.
They say the current structure is not
conducive for overseas companies to develop business in the United States. It
also hurts consumers because foreign
companies are at a disadvantage when
trying to market products.
Congress already acting
The PIA said steps have already been
taken to give the federal government
more power over insurance.
By the time that the House Capital
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IFAwebnews.com
September 2008
|
17
HSAFocus
By Kirk Hoewisch
Agents can plan now for
retirees’ medical costs
The potential drain that future medical costs could have
on your clients’ retirement funds is a rapidly growing concern. Are agents equipped with the necessary financial products to plan
for the medical costs their clients will have throughout their retirement?
A health savings account, or HSA, can
eliminate that drain for their clients, while
opening a revenue stream for the agent
who sells it.
HSAs were created by the Medicare
Act of 2003 as a way for consumers to
take control of their health care expenses.
The HSA concept consists of two
clients to invest their HSA funds.
The benefit to agents for offering the
HSA product is additional assets to the
portfolios they manage and a deeper relationship with their clients. Agents may
earn commissions on the annual investment their clients make through their
HSAs. The annual investment can be as
HSAs offer one way to eliminate the drain for
clients while opening an agent revenue stream.
parts: the HSA-compatible health plan and
the tax-favored HSA. The tax savings
occur:
1) when contributions are made,
2) as the funds earn interest, and
3) when funds are used for qualified
medical expenses.
After the account holder turns 65, HSA
funds can also be withdrawn for non-qualified expenses at their ordinary tax rate,
without penalty.
Fully portable
In addition to the tax-favored
treatment, HSAs are owned by the individual and therefore 100% portable. Any
unused funds accumulate in the account
from year to year.
These unique advantages have made
the HSA the star of the consumerdirected health care movement. HSA
administrators have experienced substantial growth in HSA balances. In a March
2008 report from Inside ConsumerDirected Care, the estimated assets held
in HSAs totaled $3.2 billion. HSA balances
are projected to accelerate in the coming
years, topping $200 billion by 2012,
according to a report released by Celent.
As more people continue to accumulate funds in their HSAs, many are looking
to invest their funds, much as they would
with an IRA or 401(k).
An agent’s expertise in this area can
provide additional benefits to their clients
with an HSA as the agent guides their
|
IFAwebnews.com
much as the contribution limit determined
by the IRS. The contribution limit for 2008
is $2,900 for single coverage and $5,800
for family coverage. In 2009, those limits
will increase to $3,000 and $5,950,
respectively. Additional “catch-up” contributions can be made in the amount of
$900 in 2008 or $1,000 in 2009, by individuals that are 55 years-old or older.
Double-digit increases predicted
Agents will be assisting your clients to
plan for their future out-of-pocket medical
costs and helping them accumulate the
necessary assets to pay for them. These
costs are currently growing by doubledigit percentages each year; in fact, the
Center for Retirement Research determined that a person retiring in 2030 at the
age of 65 will need nearly $190,000 for
future out-of-pocket health care
expenses. A couple will need more than
$375,000.
By adding HSAs to an agent’s product
offering, he or she will help clients plan
for these future medical costs and help
them protect their retirement assets,
which will assist them in maintaining a
higher standard of living throughout their
retirement.
about the author:
Kirk Hoewisch has led HSA Bank’s initiative to
offer Medical Savings Accounts (the predecessor
to Health Savings Accounts) on a national scale
since 1997. He can be reached at 866-357-5232 or
businessrelations@hsabank.com.
September 2008
No health plan, no retirement plan
associationnews
A recent study found a wide gap between the savings employees need to
maintain their standard of living in retirement and the amount of money employers are providing.
The study also found that employersubsidized retiree health care coverage
has a dramatic impact on an employee’s
ability to achieve adequate retirement
savings levels.
“For many employees, access to employer-sponsored retiree health care is a
key factor in determining whether they
can afford to retire,” said Alison Borland,
defined contribution consulting practice
leader at Hewitt Associates, which sponsored the study. “Medical inflation and
declining employer subsidies for retiree
health benefits can quickly erode the retirement income level generated by
401(k) and pension plans.”
When factoring in inflation and increases in medical costs, Hewitt, a human resources consulting and outsourcing company, predicted that employees
will need to replace, on average, 126% of
their final pay at retirement. The company projected that employees will, on
average, replace just 85% of their income
in retirement—41% less than Hewitt predicted they will need.
The study of nearly 2 million employees at 72 U.S. companies, found that
fewer than one in five employees will be
able to meet 100% of their estimated
needs in retirement. IFA
Tegeler wins Coates Memorial Award
Harvey Tegeler, co-owner of Interstate Financial Services, Inc. in Westminster was recently
awarded the John Hancock Financial Dan Coates Memorial Award for the fourth consecutive year.
Pictured (from left) are Tegeler with John Hancock Regional Vice President Chip Saltz as he presents
the award at the NAIFA-Carroll/Howard educational seminar on variable annuity suitability. Tegeler
serves as professional development chair for the association.
Send photos of your company events and happenings: edit@IFAwebnews.com
Severance: Former CEO files $18M suit
From page 1
pensation at CareFirst to that which is
“fair and reasonable . . . for work actually
performed for the benefit of” CareFirst.
However, attorneys for
Jews argued in the latest filing that since
Jews’ contract was negotiated in 1998, it does
not fall under Maryland
statutes adopted in
2003 that outlined the
William L. Jews
definition of “fair and
reasonable.” Owings Mills, Md.-based
CareFirst is not part of the latest lawsuit.
“CareFirst has not appealed the MIA's
decision and we do not comment on
pending litigation,” CareFirst spokesman
Kevin Kane said in a statement.
Officials with the Maryland Insurance
Administration are confident Tyler’s ruling will stand.
“The MIA does not believe this suit
has merit, and we expect the commissioner’s decision to be upheld,” MIA
spokeswoman Karen Barrow said.
Over a series of hearings before Tyler,
a pair of executive compensation consultants, two former insurance commisMaryland / Washington D.C.
sioners and a member of CareFirst’s executive compensation committee each
testified that Jews’ severance package
was fair.
Kenneth R. Stanton, an insurance expert at the University of Baltimore, said in
an interview with Insurance & Financial
Advisor after the order was issued that it
was “highly unusual for a regulator to
step in and alter the terms of an agreement ex post.”
“However, it also appears that the
essence of the thing is in the interpretation
of ‘fair and reasonable,’ which again,
seems to me to be something belonging in
the court system, not in the hands of a
regulator. I am not aware of any precedent for this kind of activity,” he added.
Jews left CareFirst in November 2006
after 13 years of leading the state’s largest
health insurer. He was heavily criticized
for trying to convert CareFirst into a private company so it could be sold for $1.3
billion. Jews reportedly would have made
$39 million if the sale were completed.
Tyler released a 65-page statement explaining why CareFirst’s proposed payment of nearly $18 million was unlawful
and why a payment half that amount was
appropriate. IFA
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IFAwebnews.com
September 2008
|
19
// NEW PRODUCT
On the Hill
New District coverage extends to services in the home
Fireman’s Fund Insurance Co. is offering homeowners in Washington, D.C.
new coverage that protects against the
breakdown of mechanical equipment
used to provide services in the home.
Equipment includes central air conditioning systems, heating equipment and
heat pumps, ventilating systems, boilers
and hot water heaters. In addition,
equipment extends to emergency generators, well pumps, filtration systems
for air and water, central vacuum systems, swimming pool filtration, pumps,
and heating equipment, and chair lifts
and elevators.
“With the trend toward larger homes,
smart homes and more sophisticated
equipment, homeowners face greater financial losses from breakdowns than
ever before,” said Don Soss, chief underwriting officer, Fireman’s Fund Personal
Insurance.
“Families depend on this equipment
for comfort, safety and convenience. It
represents a significant part of a home’s
value. The breakdown coverage helps
protect that investment so a homeowner isn’t surprised by a large repair
bill,” Soss said.
Besides the District, the new coverage,
became available July 1 in several states,
including Delaware, New Jersey, Pennsylvania, and Virginia. It became available for New York residents in August. IFA
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News From The Nation’s Capitol
PCI seeks NFIP bill without
windstorm coverage
The Property Casualty Insurers Association
of America recently said the continued calls
for federal windstorm insurance offered
through the National Flood Insurance Program are misguided and would needlessly
displace the private market, disrupt existing
state funds and create a significant burden
for U.S. taxpayers.
The windstorm proposal, part of the NFIP
renewal bill that passed the House last year,
had an amendment to add wind coverage in
the Senate version of the bill, which was
defeated. If the House and Senate do not
pass identical bills for a presidential signature by Sept. 30, 2008, the flood program
will expire, placing homeowners in floodprone areas in danger, according to PCI.
“While this wind-coverage proposal is wellintentioned, we believe it is both unnecessary
and fraught with unintended negative consequences,” said David A. Sampson, PCI’s
president and CEO. “Right now, we can best
serve homeowners by reauthorizing the
National Flood Insurance Program. . . A continued push to add windstorm coverage to the
NFIP could jeopardize the millions of Americans the program protects.”
It’s a gimme…
Envision life... better
SM
Health coverage for ill college
students moves forward
The House Energy and Commerce Committee recently approved legislation by a 40-0
vote that would allow very ill college
students, even those unable to remain fulltime students, to keep their coverage under
their parents’ health insurance plans, according to reports.
Students who take a leave of absence from
school could keep their coverage for up to
12 months.
The legislation was developed based on a
2006 law from New Hampshire. However,
while the New Hampshire legislation only
pertained to fully insured policies, the federal
bill would pertain to self-insured plans as
well as insured, reports said.
Contact Marvin Hudson
Praeger pens letter to
Congress on ins. legislation
Regional Vice President
814.941.2358
240.285.5267
www.nVision.us
mhudson@nvision.us
NVFelbadv0108
SM
SM
The president of the National Association of
Insurance Commissioners, Sandy Praeger,
recently sent letters to two members of
Congress regarding several insurance bills
that have been marked up by the House
Financial Services Subcommittee on Capital
|
IFAwebnews.com
Markets, Insurance and Government.
One of the bills discussed in the letter was
the Insurance Information Act of 2008,
which could lead to the establishment of an
Optional Federal Charter. Praeger, who is
also Kansas insurance commissioner, told
Reps. Paul Kanjorski (D-Pa.) and Deborah
Pryce (R-Ohio), that “an OFC would decimate consumer protections via arbitrage,
would damage the world’s most competitive insurance market and would result in a
massive expansion of the federal government.” She said the NAIC “unequivocally
opposes” attempts to use the bill to create
“such a misguided policy.”
Praeger also mentioned a bill that would
streamline the process for nonresident
licensing of insurance producers. She said
the NAIC supports the legislation, but added
that this is a “unique case and should not be
misinterpreted to support any further preemption of state laws.”
NCOIL pursues physicianpayer networking plan
The National Conference of Insurance Legislators’ Health, Long-Term Care and Health
Retirement Issues Committee recently committed to pursuing model legislation
regarding physician-payer networking issues.
The main area of contention among physician and industry representatives relates to
“downstream” rentals—the number of
times the information contained in the contract agreement can be sold, leased,
assigned or conveyed to other parties.
Drug plan group supports
health data gathering measure
The Pharmaceutical Care Management
Association, which represents those who
manage American prescription drug plans, is
supporting a Senate plan to lower health
care costs while improving health care outcomes.
The Comparative Effectiveness Research
Act of 2008 seeks to create the Health Care
Comparative Effectiveness Research Institute to gather and produce data on what
works best when it comes to how diseases,
disorders and other health conditions are
treated, said Sen. Kent Conrad (D-N.D.), the
bill’s sponsor. Conrad, chairman of the Senate Budget Committee, was joined by Sen.
Max Baucus (D-Mont.), chair of the Senate
Finance Committee in writing the bill. Conrad is also a senior member of the Finance
Committee, which oversees Medicare.
September 2008
OFC: Pearson touts
proposal’s benefits
From page 1
more than 90% of the nation’s life insurance policies, on an issue that has divided the insurance industry.
At issue is whether a federal system
should be created to allow the option of
one license for all states for agents and
one approval for all states for insurers’
products. The industry has been split on
the measure since it first came up last
year. Congress is weighing several proposed insurance regulatory reforms.
Pearson’s testimony suggests that an
OFC “would create a more innovative, efficient and competitive life insurance industry that functions under a strong, nationwide
consumer
protection
standard.” He explained that the life insurance consumers and insurers would
benefit from one regulatory voice, instead of the “patchwork of regulation”
that leaves companies having to “navigate a multiplicity of different regulatory
gauntlets in parallel, each subject to its
own timetable, in order to operate nationally, regionally, or even in just a handful of jurisdictions.”
His testimony indicated that the organization believes that an OFC would
put an end to regulator gaps resulting
when consumers move from one state
to another.
“In the two years since this committee
last held a hearing on insurance regulation, the case for regulatory reform has
become even stronger as domestic operational concerns have been joined by
pressing international regulatory and
competitive issues,” Pearson said. IFA
// HEALTH INSURANCE
AHIP launches national pitch
for universal health plans
In yet another call for universal health
care, America’s Health Insurance Plans
recently launched a grassroots and education initiative to build support for what
it calls “workable health care reform.”
AHIP, a national trade organization
representing nearly 1,300 health benefits companies who provide health benefits to more than 200 million Americans, is calling for universal health care
that would meet “core principles shared
by the American people: coverage, affordability, quality, value, choice and
portability.”IFA
Walter Reed consultant bilks TRICARE, gets prison term
Two year sentence, $10,000 fine imposed after licensed social worker improperly charged for counseling services never delivered
A former consultant for Walter Reed
Army Medical Center was sentenced to
two years in prison, followed by two years
of supervised release, and ordered to pay
a $10,000 fine for filing invoices for health
care that was never delivered, according
to the U.S. Attorney’s Office in Maryland.
Melvin Shandler, 61, a licensed clinical
social worker with a private counseling
practice in Chevy Chase, already paid
$247,000 in restitution as part of a plea
agreement. Shandler also signed a civil
settlement agreement which obligates
him to pay the federal government
$444,600, less the deduction for the
amount paid in criminal restitution.
Shandler was formerly employed as a
consultant at Walter Reed, and from June
2003 to May 2007, Shandler submitted
claims to TRICARE, a U.S. Department of
Defense health care benefit program, for
counseling services he provided to TRICARE members. During a review of
claims, TRICARE auditors detected an
unusually high amount of claims submitted by Shandler.
Charged 250% more than others
In one instance, Shandler billed 250%
more services than the second highest
billing provider, investigators said. At
their peak, Shandler’s billings averaged
up to 24 counseling sessions per day, and
he billed for services on Labor Day, Independence Day and Christmas Day.
Prosecutors also discovered that Shandler’s claims were disproportionately
high, either because he requested compensation for services that were never
performed, or inflated the amount of
time he spent with patients. For example,
in the case of one family, he submitted
claims for 202 services during a one-year
period from 2006 to 2007 that he never
performed.
As a result of his over-billing, Shandler
received $247,000 to which he was not
entitled, according to court records. IFA
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800.638.6085
800.359.9065
September 2008
|
21
companynews
Avery Hall merges
into new company
Salisbury, Md.-based Avery Hall Employee Benefit Services and Avery Hall Life Insurance Agency
merged into Avery Hall Benefit Solutions. The
new identity is designed to better promote its ability to provide options for coverage as healthcare
costs continue to increase, company officials
said. The companies started in the early 1980s
and together are one of the largest benefit brokers on the Eastern Shore. Pictured are the new
company’s executive board members: (from left,
back row) Mary Mengason, Richard Prettyman,
Jill Long; and (from left, front row) Cindy Whaley
and Tom Wisniewski.
Send photos of your company events and happenings: edit@IFAwebnews.com
Revised, refreshed.
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Online: Web sales
are no threat...yet
From page 1
rather than through an agent – an increase of 3% from last year. Among buyers who changed their shopping channel,
more buyers changed to direct purchasing methods (22%) compared with those
who switched to using an agent (15%).
While auto sales most heavily rely on
the Internet for transactions, other lines
could possibly follow.
Trevor Bowler, a senior director at JD
Power and an author of the report, said in
an interview with Insurance & Financial
Advisor that while some carriers have targeted an online presence with their products, results have been mixed as far as
traffic and “friction they are getting from
their agent forces.”
Nonetheless, the number of choices
offered to consumers online is blossoming and the trend is expected to continue,
especially in areas of the county that
don’t have a high volume of agencies like
in the mid-Atlantic, he said.
“The agency business model had a
good 80 to 90 years to embed itself
throughout the nation,” said Bowler.
“Even in places like South Dakota, you
can still find agencies, you just might
not be able to find four or five Progressive agencies, or four or five State
Farm agencies.”
Bower said the agency model is not
becoming less viable in the short-term,
especially when shopping for other areas
of insurance such as housing coverage. It
is also still a hassle shopping online when
consumers are looking for multiple types
of coverage, he said.
“The direct sales model really lends itself to simple buys,” Bowler said.
However, agents should be worried
about the next generation of consumers
who will need insurance and are more
comfortable with technology.
Robert Passmore, director of personal
lines for the Property Casualty Insurers Association of America, does not think increased buying through the Internet will
make agents less viable. Instead, it is a
matter of preference and many people still
like the personal interaction with an agent,
while others are more comfortable dealing
with their insurance issues online.
“An agent is far from someone who
is going to be outdated,” Passmore
said. “There is still a whole lot they
have to offer.” IFA
September 2008
// HEALTH INSURANCE
GrowthFocus
Quarter of uninsured suffer from mental health, substance abuse
By Rick Dennen
To stay independent,
develop a growth strategy
Independence never comes easy. Ask our forefathers
who fought the Revolutionary War more than 200 years
ago. If you expect to survive as an independent insurance agency amid
fierce competition in the coming years, you’ll need to grow, either
organically or by acquisition.
To grow organically, first assess your
agency’s assets and available cash, which
may be in short supply, especially in
today’s credit crunch. Then determine the
capital needed to achieve your goals,
something might be up—and you need to
investigate. Review average commission
per account and determine the mean, the
median and other pertinent statistics.
Ensure that an ironclad non-compete contract is in place and will be followed by
Dependable?
If you expect to survive as an independent
agency amid competition, you need to grow.
which could range from $25,000 for new
furniture or technology to $10 million for a
major acquisition. To grow through acquisition, be sure to do the right kind of due
diligence:
Buyer’s due diligence
1. Determine why agency is selling
Few agencies will volunteer everything
about their business, especially the negative aspects. If the acquisition is a stock
transition, which carries more risk than an
asset transaction, you need to investigate
more. Contact carriers that have been
used in the past, read local insurance publications and the state insurance
department website, contact the local
Better Business Bureau, and conduct
Internet searches—all of which could
reveal evidence of illegal activity.
2. Analyze seller’s book
Look beyond total commissions to see
what percentage of the accounts have
been on the books for two years, for five
years, and even for 10 years. If the acquisition has an earn-out provision, ensure
that what the seller is representing on the
commission book is truly in force. Review
the agency’s loss ratios, carrier
persistency, carrier contracts, and types
of accounts and anticipate their likelihood
of continuing.
3. Try to spot trends in commissions
For example, if total commissions have
doubled in the past three months, or if
the agency just landed a huge new commercial contract that now represents a
disproportionate share of commissions,
from a variety of sources, including the
federal government.
Because many of the adults suffering
from these conditions are above the federal poverty level, they are ineligible for
care from public sources. Just 37% of
people with these disorders are under
100% of poverty level and qualify for
Medicaid, research shows.
The report suggests expansion of coverage to uninsured people with incomes
above 200% of the federal poverty level.
The percentages are similar for adults
between 100 and 200 percent of the FPL
who have mental illness and/ or substance use disorders. About one in three
adults in this category lack insurance,
public or private, the report indicated. IFA
Nearly one in four adults who lacking
health insurance suffered from a mental
illness or substance abuse disorder, a
new study finds.
Of the estimated 47 million people
without health coverage, 27% have a
mental illness, according to a joint study
by the National Alliance on Mental Illness (NAMI) and the National Council
for Community Behavioral Healthcare.
The study was funded by the Robert
Wood Johnson Foundation.
Mental illness is defined as “serious
psychological distress,” a substance use
disorder is defined by the survey as “substance dependence” or “substance
abuse,” or both.
The report used 2005 and 2006 data
the seller and the producers.
4. Identify trends in carrier activity
Determine which carriers the agency is
placing most of its business with and if
they plan to lower commission rates, give
less favorable terms with contingent contracts, change product offerings—or are
considering moving out of your state.
Find out if the carriers’ direct writers are
encroaching on the agency’s business.
Raise capital
Is this how other
carriers deal with
an emergency?
Unfortunately, the vast majority of
banks don’t typically lend enough money
for insurance agencies to achieve their
goals. As a result, many agency principals
are often forced to tap personal assets
and extend credit limits to finance
growth, which can be way too risky.
Banks don’t understand your most valuable and hidden asset—renewal
commissions. But today, new lending
sources are now available that recognize
the value of anticipated revenue through
future commissions.
To grow is to thrive, and these
approaches can help you succeed as an
independent agency for years to come.
about the author:
Rick Dennen has 20 years’ experience in
accounting, finance, business development,
business evaluation and deal structuring. He is
founder, president and CEO of Indianapolis-based
Oak Street Funding, a commercial finance
company that offers commission-based capital
through lending or purchasing commissions to
insurance agents. He can be reached at
866-625-3863 or osf@oakstreetfunding.com.
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Please call Sales Support at 866-433-6398 or visit our
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|
IFAwebnews.com
September 2008
|
23
// HEALTH INSURANCE
Quarter of uninsured suffer from mental health, substance abuse
Nearly one in four adults who lacked
health insurance suffered from a mental
illness or substance abuse disorder, a
new study finds.
Of the estimated 47 million people
without health coverage, 27% have a
mental illness, according to a joint study
by the National Alliance on Mental Illness (NAMI) and the National Council
for Community Behavioral Healthcare.
The study was funded by the Robert
Wood Johnson Foundation.
Mental illness is defined as “serious
psychological distress,” a substance use
disorder is defined by the survey as “substance dependence” or “substance
abuse”), or both.
The report used 2005 and 2006 data
from a variety of sources, including the
federal government.
Because many of the adults suffering
from these conditions are above the federal poverty level, they are ineligible for
care from public sources. Just 37% of
people with these disorders are under
100% of poverty level and qualify for
Medicaid, research shows.
The report suggests expansion of coverage to uninsured people with incomes
above 200% of the federal poverty level.
The percentages are similar for adults
between 100 and 200 percent of the FPL
who have mental illness and/or substance use disorders. IFA
2008 Ward’s 50 Top Performers
Insurers are ranked on financial performance, including the firm's financial safety and
consistency, over a five-year period. (Listings are alphabetical)
Life-Health Companies
Property-Casualty Companies
AEGON USA Group
Aetna Life Insurance Company
AFLAC
AIG SunAmerica Life Insurance Company
Alfa Life Insurance Corporation
American Family Life Insurance Company
American National Insurance Company
Amica Life Insurance Company
Anthem Blue Cross Life & Health Insurance Co.
Auto-Owners Life Insurance Company
AXA Equitable Life Insurance Company
Centurion Life Insurance Company
CIGNA Group
Cincinnati Life Insurance Company
Combined Insurance Company of America
Farm Bureau Life Insurance Company
Farm Bureau Life Insurance Company of MI
Federated Life Insurance Company
Fidelity Investments Life Insurance Company
Genworth Life Insurance Company
Gerber Life Insurance Company
The Hartford Life Insurance Company
Liberty National Life Insurance Company
Metropolitan Life Insurance Company
Midland National Life Insurance Company
National Life Insurance Company
Nationwide Life Insurance Company
Northwestern Mutual Life Insurance Company
Pekin Life Insurance Company
Primerica Life Insurance Company
Principal Life Insurance Company
Prudential Insurance Company of America
Reliance Standard Life Insurance Company
RiverSource Life Insurance Company
Sentry Life Insurance Company
Shelter Life Insurance Company
Southern Farm Bureau Life Insurance Co.
Standard Insurance Company
State Farm Life Insurance Company
Symetra Life Insurance Company
Tennessee Farmers Life Insurance Company
Thrivent Financial for Lutherans
TIAA-CREF
Union Security Insurance Company
United Healthcare Insurance Company
United Insurance Company of America
United Life Insurance Company
USAA Life Insurance Company
USAble Life Insurance Company
Western & Southern Life Insurance Company
Acuity
Allstate Insurance Company
American Modern Insurance Group
Amerisure Companies
ANPAC
Assurant Group
Auto-Owners Insurance Group*
Central Insurance Companies
Chubb Group
Church Mutual Insurance Company
Cincinnati Insurance Group*
Columbia Insurance Group
The Commerce Group, Inc.
Donegal Insurance Group
EMC Insurance Companies
Erie Insurance Group
Federated Mutual Group
Fireman's Fund Insurance Group
FM Global
GEICO*
GMAC Insurance Group
Great American Insurance Companies
The Hartford Fire Group
HCC Insurance Holdings Group
IDS Property Casualty Insurance Company
Island Insurance Companies Group
Kentucky Farm Bureau Mutual Insurance Co.
Louisiana Workers' Compensation Corporation
Markel Corporation Group
Mercury Casualty Group
Metropolitan Property and Casualty Insur. Co.
North Star Mutual Insurance Company
Old Republic Insurance Group
Pekin Insurance Group
Philadelphia Insurance Companies
ProAssurance
Progressive Casualty Insurance Company
Protective Insurance Group
RLI Insurance Group*
Safety Insurance Group
SECURA Insurance Companies
Selective Insurance Company of America
Shelter Insurance Group
Tennessee Farmers Mutual Insurance Co.
Travelers Insurance Group
United Fire & Casualty Group
USAA Group*
Utica National Insurance Group
West Bend Mutual
W.R. Berkley Corporation Group
*18-year recipient (1991-2008). Source Ward Group
Regional Firms Listed
|
IFAwebnews.com
September 2008
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|
IFAwebnews.com
September 2008
|
25
“We are dedicated to the
creation, retention, and
growth of Independent
Insurance Agencies.”
Calendar
of Events
■
3 – CISR-Insuring Commercial
Casualty Exposures Course – IABMd. 7:30 a.m.-5 p.m. Fountains Wedding &
Conference Center, Salisbury, Md. Contact:
800-998-9644, or email, iab@iabgroup.com.
-Jon Pappas
President, Potomac Insurance Network
9 - CE & Breakfast Meeting – NAIFACarroll/Howard. 8:30-11:30 a.m.
Westminster Best Western. Contact: Steve
Aquino, 410-857-3331.
3 – ACSR-Commercial Automobile –
IIAM. 9 a.m.-4 p.m. IIAM Headquarters,
Glen Burnie, Md. Contact: 410-766-0600, or
email, iiambecka@aol.com.
Our Appointed Members Receive:
10 – Charitable Golf Outing – SFSPBaltimore. 9 a.m. Sparrows Point Golf
Club, Baltimore, Md.
4 – Dynamics of Service Seminar –
IAB-Md. 7:30 a.m.-5 p.m. Hilton Garden
Inn BWI Airport, Linthicum, Md. Contact:
• Complete Independence
• Profit Sharing & Excess Compensation
• Access to over 20 Personal & Commercial line markets
14-15 – P/C Cram Course – IIAM.
8:30 a.m.-4:30 p.m. Contact: 410-766-0600,
or email, iiambecka@aol.com.
16 – October Program – NAIFABaltimore. 8-11 a.m. Sheppard Pratt
Conference Center, Towson, Md. Contact:
410-752-3318.
4 – Long Term Care – IIAM. 9 a.m.-1
p.m. Contact: 410-766-0600, or email,
iiambecka@aol.com.
Providing:
• Stability • Markets • Opportunities
8-12 – P/C Pre-Licensing – IIAM. 8:30
a.m.-4:30 p.m. Contact: 410-766-0600, or
16 – CE Seminar – FPA-Md. 11:30
a.m.-1:30 p.m. Padonia Park Club Lakeside
Ballroom, Cockeysville, Md.
10 – CIC-Life & Health Institute –
IAB-Md. 7:30 a.m-5 p.m. Hilton Garden Inn
BWI Airport, Linthicum, Md. Contact: 800998-9644, or email, iab@iabgroup.com.
Call Jon Pappas, President
Potomac Insurance Network
2360 Boston Street
Baltimore, MD 21224
8 – ACSR-Miscellaneous
Commercial Lines – IIAM. 9 a.m.-4
iiambecka@aol.com.
September
(443) 692-4000
21 – How I Got a Job in the Prison
Laundry-“Certificates of Insurance”
– IIAM. 9 a.m.-12 p.m. Contact: 410-7660600, or email, iiambecka@aol.com.
10 – American College’s
“Foundations of Financial Planning:
An Overview” – NAIFA
Carroll/Howard. Interstate Financial
Services, Westminster, Md. Contact: Harvey
Tegeler, 410-876-0500.
jpappas@pinsiaa.com
www.pinsiaa.com
Visit our website:
23 – Valuation-Part 1: A Slippery
Slope – PIA-N.J. Lunch ‘n’ Learn.
Contact: 800-424-4244.
27 – 12th Annual GWAHU Charity
Golf Tournament. 11:30 a.m.-8 p.m.
Norbeck Country Club, Rockville, Md.
Contact: Joel Pitt, 240-238-3270, or email,
jpitt@gbsio.net.
11 – CE & Breakfast Meeting –
NAIFA-Carroll/Howard. 8:30-11:30
a.m. Westminster Best Western. Contact:
Steve Aquino, 410-857-3331.
www.pinsiaa.com
29 – CRIS Workers Compensation
for Contractors – IIAM. 8 a.m.-5 p.m.
Contact: 410-766-0600, or email,
iiambecka@aol.com.
12 – Breakfast and CE: Life
Insurance, Annutities & Income Tax –
NAIFA-Carroll/Howard. 10 a.m.-12
p.m. Howard County Public Library, Miller
Branch, Ellicott City, Md. Contact: 410-8760500.
30 – 2008 Conferment Dinner –
CPCU-Md. 5:30-8:30 p.m. Rolling Road
Country Club, Catonsville, Md. Contact:
mdchaptercpcu@yahoo.com.
16-19 – September Program – NAIFA
Baltimore. 8-11 a.m. Sheppard Pratt
Conference Center, Towson, Md. Contact:
410-752-3318.
18 – PIA Lunch ‘n’ Learn
Teleconference: Collision Damage
Waiver vs. Auto Insurance. 12 p.m.
Contact: Nicole Shilliday, 800-424-4244.
24 – CRIS Commercial Auto, Surety,
CIPS & Misc. Lines – IIAM. 8 a.m.-5
iiambecka@aol.com.
24 – DI Day Training Webinar: DI and
Critical Illness - The Plus Group. 22:30 p.m. Contact: 800-995-6532, or email,
greg@fsgbrokerage.com.
Helping clients to anticipate and deal effectively with change,
to find solutions, and to achieve positive results.
■
Patricia McHugh Lambert, Esq.
410.339.6759
| plambert@hpklegal.com | hpklegal.com
Insurance Contracts • Coverage Issues • Regulatory
Administrative Law • Agent & Brokers • Errors & Omissions
Defense • Disability • Business • Environmental
Construction • Class Actions
Towson
Columbia
Bel Air
Bethesda
Cambridge
October
2 – CISR-Insuring Commercial
Casualty Exposures Course – IABMd. 7:30 a.m.-5 p.m. Hilton Garden Inn BWI
Airport, Linthicum, Md. Contact: 800-9989644, or email, iab@iabgroup.com.
2 – Luncheon Program – FPANCA.
12-2 p.m. That’s Amore Restaurant,
Rockville, Md.
2-3 – FINRA: Advertising Regulation
Conference. Washington, D.C. Contact:
Jerry McKinney, 212-858-4119, or email,
jerome.mckinney@finra.org.
6 – James K. Ruble Graduate
Seminar – IAB-Md. 7 a.m.-5:15 p.m.
Clarion Resort Fontainebleau. Ocean City,
Md. Contact: 800-998-9644, or email,
iab@iabgroup.com.
|
IFAwebnews.com
31 – Valuation-Part 2: So Many
Choices – PIA-N.J. Lunch ‘n’ Learn.
Contact: 800-424-4244.
■
November
3-7 – P/C Pre-Licensing – IIAM. 8:30
a.m.-4:30 p.m. Contact: 410-766-0600, or
4 – Current Trends in Workers
Compensation: What does the future
hold? – PIA-N.J. Lunch ‘n’ Learn.
Contact: 800-424-4244.
5 – Commercial Liability CGL, Auto
and Umbrella Seminar – IAB-Md. 7:30
a.m.-5 p.m. Fountains Wedding &
Conference Center, Salisbury, Md. Contact:
5 – CIC-Commercial Casualty
Institute – IAB-Md. 7:30 a.m.-5:15 p.m.
Hilton Garden Inn BWI Airport, Linthicum,
Md. Contact: 800-998-9644, or email,
iab@iabgroup.com.
Send Your Events!
• The easiest way to submit events is online:
Phone: 410.667.0864 Fax: 410.667.7977
Email: edit2@IFAwebnews.com
September 2008
Life Insurance
Financial Services
FINRA considers changes
in annuity regulations
Variable annuities subject of streamlining proposal
The Financial Industry Regulatory Authority is looking for comments from industry professionals on its proposed new
rules regarding variable annuities insurance products.
FINRA is hoping to streamline existing
rules regarding the products and create
new rules for how member firms should
handle variable products.
Changes would address areas that have
seen significant changes since the guidelines were first issued, particularly with respect to the use of riders and hypothetical
illustrations, FINRA officials said.
The proposal would prohibit member
firms from exaggerating the relative benefits of a guarantee, or an insurance company’s financial strength or credit rating.
Any discussion of a guarantee would have
to disclose all material applicable limitations or qualifications.
In addition, communications regarding
guarantees would have to disclose that the
investment return and principal value of
an investment option are not guaranteed
and will fluctuate.
Other parts of the proposal include
ways to:
• shorten and simplify existing provisions regarding product identification, liquidity and guarantee
claims;
• consolidate previous FINRA staff
guidance concerning variable insurance product communications;
• address changes in variable insurance products and the manner in which they are advertised,
particularly with regard to riders,
hypothetical illustrations and investment analysis tools; and
• codify FINRA staff guidance concerning comparative illustrations of The mathematical principle of tax-deferred versus
taxable compounding. IFA
Coastal: Market unlikely to improve soon
From page 1
the potential for more hurricanes damaging expensive properties all along the
Atlantic coast, require better construction techniques. She suggested the use of
wind-proof glass, which will not shatter
as easily and can withstand winds greater
than 130 miles per hour and hurricane
strapping on roofs.
Most coastal insurance coverage is
through non-standard insurers, often
with exclusions, limitations and restrictions that agents must make sure their
clients understand, Hollada said.
The potential losses – after record
losses in 2005 with Hurricane Katrina –
discourage standard carriers, even in a
If you haven’t considered how
BENEFITS and PAYROLL
work together to help your clients,
then we need to talk.
LTC group plans national education
effort as part of awareness efforts
KELLY now provides PAYROLL, too.
Toll-free phone lines to provide consumers access to agents for questions in November
Kiplinger’s Personal Finance magazine
and the American Association for LongTerm Care Insurance have teamed-up to
conduct a national consumer educational
program Nov. 13 and 21 in conjunction
with Long-Term Care Awareness Month.
As part of the program, the magazine
will provide readers with the opportunity to connect by phone with longterm care insurance professionals able
to answer questions. Some 100 members of the LTC association have volunteered to donate their time to answer
the consumer calls.
“There will be no selling or promotion as
part of this program,” said Jesse Slome, executive director of the Los Angeles-based
American Association for Long-Term Care
Insurance.
“This is an opportunity to educate consumers and to demonstrate the commitment of hundreds of leading long-term
care insurance professionals to helping
Americans and their families understand
the issues as well as the importance and
simplicity of planning.”
Kiplinger’s Personal Finance magazine
will promote the program through the
magazine, which has 2.4 million subscribers, and on its Web site.
The publication will pay for toll-free
access connecting readers with association members located nationwide, the organizers said.
Insurance and financial professionals
interested in volunteering to be part of the
program may contact the American Association for Long-Term Care Insurance. IFA
soft market, from assuming the risk of
coastal properties. As a result, rates are
much higher for coastal property owners.
Hollada said some residents on the New
Jersey, Delaware and Maryland coasts are
paying more than double what they paid
prior to 2005 and their coverage is less.
“Until we change the way we are doing things, you are not going to see a lot
of standard carriers in these places,”
Hollada said.
New Jersey, New York, Maryland,
Delaware and Virginia officials are each
working to require new construction to
meet stricter hurricane and wind requirements. When they succeed, she predicts that the standard market might
once again cover coastal properties. IFA
Shouldn’t payroll and benefits be on the same page? At KELLY, the most trusted name
in benefits, we’ve created a payroll solution that utilizes our innovative technology
for greater accuracy and speed. KTBSPayroll features management tools, reports and
services that relieve your clients of the details while giving them better control. Payroll
and benefits working together. That’s KELLY. Call us today.
Kelly & Associates Insurance Group
KTBSPayroll
301 International Circle
Hunt Valley, MD 21030-1342
Contact: Kitty Bollinger 410-891-3034
www.KAIG.com
www.KTBSPAYROLL.com
KTBSPayroll is a division of Kelly & Associates Financial Services, Inc., an affiliate of Kelly & Associates Insurance Group, Inc.
|
IFAwebnews.com
September 2008
|
27
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HR ADMINISTRATION.THE PAPERLESS WAY
Earn Commissions…
Use Benefit Providers as your hidden secret, to
provide your client(s) with Individual or Comprehensive
Service packages, that include:
• Internet based Human Resource Information System – HRe-file
• Section 125/132 Administration
• COBRA Administration
• Payroll Processing
• FSA/HRA/HSA Debit Card Issuance and Administration Program
www.hrefile.com
Contact:
Joel H. Bernstein
office: 877-370-2226 cell: 703-906-8625
205 South Whiting Street, Suite 311, Alexandria, VA 22304
Maryland based worksite benefits enrollment firm and
TPA looking for Life and Health licensed, experienced
and highly professional representatives to work as
benefit counselors for group enrollments. This involves
educating and enrolling employees in various insurance
products. A majority of work is based in the MD, DC and
VA area with occasional travel possible. This position
provides competitive compensation both on a per diem
and commission basis as well as flexible hours.
Please email your resume for consideration to:
MStringer@selectbenefitsgroup.com
or fax to 443-279-0102.
SelectBenefitsGroup.com
Questions: Contact Barry Scott
bscott@commund.com
800-396-6226 ext. 108
fax: 888-359-6994
An ounce of prevention equals
a pound of cure.
Did you know…
• Negligent hiring lawsuits can average
more than $500,000?
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410.494.0232
www.preemploymentscreen.com
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call 410-667-0864 or
advertise@IFAwebnews.com
|
IFAwebnews.com
September 2008
Letters
TO THE EDITOR
Another view on Sister
Kay, soft P/C market
Editor:
Great Publisher’s Note (“Dusting off
the crystal ball to predict soft market
end,” August 2008) about Sister Kay although it is kind of sad that we as an industry have no real idea as to how the
future will play out. This takes a particular toll when trying to plan for the future.
I have heard the 2010 prediction for
the end of the soft market by
several “industry experts.” So far I see
that as an example of the theory, if we
say it often enough it may come true. I
judge market texture by workers’ compensation loss cost multipliers.
To date there has been some movement downward, however not nearly as
much as the late 1990s. Companies that
in the 1990s were at 0.85 are still in the
1.20 areas, which tells me there is
plenty of room left to move. The loss
cost factors bottoming out were the last
attempt by the carriers to bottom out
pricing without affecting their financial
statements. Markets flip-flop for
many reasons; however, most can be
tracked to either an adverse court ruling or a disaster, natural or otherwise.
Barring either of those, I see the market
remaining soft for years past the magical 2010 predictions. I hope I am wrong.
Scott Burns
C. A. Weber Agency Inc.
Hanover, Pa.
Uncertainty steals away voluntary benefit sellers’ confidence
Outlook falls victim to concerns for
economy, health care industry, study says
Overall concerns about the economy
and uncertainty in the health care industry is affecting how agents and brokers view the outlook for voluntary benefits sales, according to Eastbridge
Consulting Group’s Voluntary Industry
Confidence Index.
Based on the survey results, the index
at mid-year 2008 decreased to 96.2 from
97.3 at year-end 2007. The lower confidence index number is largely driven by
the results of the sales growth question,
according to the report.
“We see an interesting dichotomy
among our respondents,” said Bonnie
Brazzell, vice president of Eastbridge.
The percentage of responders who
think that sales will “increase a lot” went
up to 24% (from 20% at year-end 2007)
and a total of 82% believe sales will increase at least a little, she said. At the
other extreme, she noted, about 12% say
sales will decrease.
“We’ve never seen more than five percent saying they expect a decrease,”
Brazzell said.
The index is calculated using three key
expectation measures about the voluntary industry: sales growth, profitability
and employee enthusiasm about voluntary products.
Six percent said that sales will “stay
the same,” the same percent as at the end
of the year last year.
Response to the question about carrier
profitability was down slightly in the
most recent study primarily in the percent expecting the profitability to be
“much more” profitable. The results of
the employee enthusiasm question were
actually up over year-end results with
67% believing employees will be more
enthusiastic about voluntary benefits (up
from 63%).
The Voluntary Industry Confidence Index study is conducted semi-annually and
includes responses from carriers, brokers,
and vendors. Like other confidence indices, the index is a single number that
compares the current results to a baseline measure. IFA
Is your client frustrated with rising healthcare costs?
Self-funding may be the solution.
With healthcare costs at an all-time high, self-funding with Brokerage Concepts is a solution that
is worth exploring. Self-funding provides a way for many employers to lower their costs through
more active plan management. At BCI, we’ve assembled one of the most knowledgeable and
What constitutes a
fair settlement?
broad-based groups of employee benefit experts, all dedicated to helping your client in ways
Editor:
Will this never end? How is a $9 million retirement and severance payment
for William Jews, much less $17.6 million, considered a “fair and reasonable” settlement by Maryland’s insurance commissioner (“Ruling on former
CareFirst CEO pay ‘highly unusual,’”
August 2008). Jews and the CareFirst
board tried to pull a fast one by attempting to sell CareFirst to a for-profit
buyer so that he could pocket a cool
$39 million, while at the same time
ramping up rates to the buying public
to make the sale more attractive.
Jews should have been thrown out
on his ear without a penny!
that deliver products, technology and technical expertise to win self-funded business for you,
the broker. Our strategy is to deliver… Benefit Solutions for Everyone.
To learn more about the advantages
of self-funding, call BCI today:
610-491-5040
Offices located in Pennsylvania, New Jersey, Delaware, and Massachusetts
NATIONAL HEADQUARTERS
John J. Darlington
1021 West 8th Avenue • King of Prussia, PA 19406
Independent Agent
Timonium, Md.
www.bcitpa.com
|
IFAwebnews.com
September 2008
|
29
For the Record
Maryland agent & carrier fines
■
The following summaries are based on
information obtained from the
Maryland Insurance Administration (MIA).
■
Safeco Insurance Co. Illinois
Seattle, Wash.
Action: Appeal was denied and dismissed.
Synopsis: Complainant asserted that Safeco improperly denied his claim for damage done to his
teeth as the result of a motor vehicle accident in
which a driver insured by Safeco was allegedly at
fault, though he initially said that he was not injured
in the accident until a dental appointment two
months later revealed that he needed tooth implants
at a total cost of $3,700.
Case MIA-2008-02-013
■
Coventry Health Care of Delaware
Inc.
Wilmington, Del.
Action: Ordered to provide coverage for the DexCom
CGM device requested by the complainant.
Synopsis: Coventry denied a request to authorize
coverage for the CGM prescribed for the complainant
by his doctor to assist in measuring glucose on a 24hour basis to treat his Type 1, insulin-dependent diabetes. Coventry denied the request alleging that the
CGM is considered investigational/experimental,
though the DexCom CGM is an FDA-approved device
that meets technology assessment criteria.
Case MIA-2008-03-001
■
Case MIA-2008-05-044
■
United Healthcare Insurance Co.
Hartford, Conn.
Action: Ordered to pay $1,500; and reprocess all
claims paid under the noncompliant fee schedule in
accordance with the fee schedule in effect Aug. 14,
2007, for the complainant.
Synopsis: United failed to provide an audiologist
with a fee schedule for his specialty.
Case MIA-2008-05-021
■
Aetna Life Insurance Co.
Hartford, Conn.
Action: Ordered to pay $1,000.
Synopsis: Aetna failed in a grievance decision letter
to provide the proper statutory time frame within
which a member may file a complaint with the commissioner: Aetna provided that the member had a time
frame of only 30 days, rather than 30 working days
after the receipt of the carriers grievance decision.
Case MIA-2008-05-046
Actions involving Carriers
The following actions were reported by
the Maryland Insurance Administration.
■
Case MIA-2006-10-008
Database Changes
The Maryland Insurance Administration
reported the following carrier
redomestications:
Acadia Insurance Co., redomesticated from Maine
to New Hampshire; redomestication was effective
Dec. 1, 2007.
American Insurance Co., redomesticated from Nebraska to Ohio; redomestication was effective Dec.
17, 2007.
General Casualty Insurance Co. of Illinois, redomesticated from Illinois to Wisconsin; redomestication was effective Dec. 31, 2007.
United American Insurance Co., redometicated
from Delaware to Nebraska; redomestication was effective Dec. 12, 2007.
Universal Surety of America, redomesticated from
Texas to South Dakota; redomestication was effective Jan. 1, 2008.
Allan Austin Smith
Newport Beach, Calif.
Action: Ordered to pay $300.
Synopsis: Reported two administrative actions
taken by the state of Wisconsin to the DISB more
than 30 days after the actions were taken and had an
administrative action taken against him by the state
of New York.
Case IB-CO-02-08
■
Nathaniel A. Reid
Washington, D.C.
Action: Suspension of resident producer’s license;
ordered to make restitution to all consumers enrolled by him during the period of December 2006 to
June 2007; ordered to submit to DISB the names of
the individuals residing in Washington, D.C., who he
enrolled for/under Medicare C in Advantra Freedom,
WellCare Duet and Bravo Classic plans; ordered to
be available to provide the department all information regarding his relationship with Coventry Health
Care, all Coventry training materials regarding enrollment presentations of the Advantra Freedom
program and all Advantra training guidance documents and lists of attendees at all Advantra sessions; and ordered to pay $8,500.
Synopsis: Made statements at a sales presentation
that misrepresented the benefits, advantages, conditions and terms of a policy; intentionally misrepresented the terms of a proposed insurance contract;
and used dishonest practices or demonstrated incompetence or untrustworthiness in the conduct of business in the District of Columbia.
GEICO Insurance Co.
Washington, D.C.
Action: Appeal was denied and dismissed.
Synopsis: Complaint alleged that GEICO improperly
denied an automobile insurance claim.
Case IB-SC-17-07
■
USAA Casualty Insurance Co.
San Antonio, Texas
Action: Complaint was denied and dismissed.
Synopsis: Complainant alleged that USAA erred in
the handling of a claim regarding an accident that occurred on June 1, 2007.
Case MIA-2007-09-027
Mark W. Wardlow
Washington, D.C.
Action: Ordered to reimburse Travelers Casualty and
Surety Co. of America the full amount of the bond
that it paid to Four Corners Insurance Services Inc.,
including interest and fees incurred; ordered to make
restitution to Four Corners in the amount of the commissions that were not covered by the Travelers
bond; and suspension of producer’s license for three
months.
Synopsis: Intentionally withheld, misappropriated
or converted monies or properties received in the
course of doing insurance business; and demonstrated incompetence, untrustworthiness or financial irresponsibility in the conduct of business in
the District.
Genworth Life Insurance Co.
Richmond, Va.
Action: Ordered to pay $7,500 and correct violations.
Synopsis: The administration conducted a comprehensive examination of the company’s insurance
business in Maryland for the survey period of Jan. 1,
2005, through Dec. 31, 2006, and discovered several
violations of the insurance article and state laws.
Case IB-Co-01-07
The following are based on information
provided by the District of Columbia
Department of Insurance, Securities
and Banking.
■
Mark Giamalva
Chicago, Ill.
Action: Issued a non-resident insurance producer license by the department after paying a fine of $600.
Synopsis: Continued to practice the business of insurance in the District of Columbia after his license
had expired; and changed his address without notifying the commissioner.
■
Case MIA-2008-05-023
■
■
D.C fines/actions
Shenandoah Life Insurance Co.
Roanoke, Va.
Action: Ordered to correct its violations of Maryland
law within 90 days; ordered to pay $5,000.
Synopsis: The administration conducted a comprehensive examination of the company’s insurance
business in Maryland for the survey period of Jan. 1,
2005, through Dec. 31, 2006, and discovered several
violations of the insurance article and state laws.
Fairmont Specialty Insurance Co.
Houston, Texas
Action: Ordered to pay $50,000; correct violations.
Synopsis: Did not make freely available to the commissioner or an examiner the accounts, records, documents, files, information, assets and matters that
are in the company’s possession or control and related to the subject of an administration examination; refused or delayed payments of amounts due
claimants without just cause; failed to maintain a
proper register; and paid a commission, fee, reward,
rebate or other consideration for selling, soliciting or
negotiating insurance to a person other than a licensed insurance producer.
Case MIA-2008-04-009
reported the following recent mergers:
Transcontinental Insurance Co. merged with and
into National Fire Insurance Co. of Hartford; merger
effective Dec. 31, 2007.
Westport Insurance Corp. merged with and into
Employers Reinsurance Corp.; merger effective Jan.
1, 2008.
reported the following recent carrier name
changes:
Case IB-SC-19-07
Employers Reinsurance Corp., changed to Westport Reinsurance Corp.; change effective Jan. 1,
2008.
Fidelity Life Association—A Mutual Legal Reserve Co., changed to Fidelity Life Association—A
Legal Reserve Life Insurance Co.; change effective
Feb. 19, 2008.
General Casualty Insurance Co. of Illinois,
changed to General Casualty Insurance Co.; change
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effective Dec. 31, 2007.
Manulife Insurance Co., changed to John Hancock
Life & health Insurance Co.; change effective April 4,
2008.
Phoenix Indemnity Insurance Co., changed to
Hallmark Insurance Co.; change effective Feb. 11,
2008.
reported the following recent carrier
deletions:
Fidelity Mutual Life Insurance Co., voluntarily
withdrew from doing business in Maryland; deletion
was effective April 24, 2008.
reported the following recent carrier
address changes:
Alamance Insurance Co., 100 Pearl St., Hartford,
CT 06103.
American Health and Life Insurance Co., 3001
Meacham Blvd., Suite 100, Fort Worth, TX 76137
Artisan and Truckers Casualty Co., 8040 Excelsior
Drive, Suite 200, Madison, WI 53717
Burlington Insurance Co., 100 Pearl St., Hartford,
CT 06103
Central Benefits National Life Insurance Co.,
4079 Executive Parkway, Westerville, OH 43081
Centre Insurance Co., One Liberty Plaza, 165
Broadway, 33rd Floor, New York, NY 10006
Clarendon America Insurance Co., 601 Ewing St.,
Suite C-8, Princeton, NJ 08540
First Investors Life Insurance Co., Raritan Plaza I,
P.O. Box 7836, Edison, NJ 08818
First Financial Insurance Co., 100 Pearl St., Hartford, CT 06103
Global Reinsurance Corp., Times Square Tower, 7
Times Square, 37th Floor, New York, NY, 10036
Global Reinsurance Corp. of America, Times
Square Tower, 7 Times Square, 37th Floor, New York,
NY 10036
Guilford Insurance Co., 100 Pearl St., Hartford, CT
06103
Hartford Underwriters Insurance Co., One Hartford Plaza, Hartford, CT 06155
Trumbull Insurance Co., One Hartford Plaza, Hartford, CT 06155
Legal Mutual Liability Insurance Society of
Maryland, c/o Semmes, Bowen & Semmes, 25
South Charles St., Suite 1400, Baltimore, MD 21201
LifeSecure Insurance Co., 10559 Citation Drive,
Brighton, MI 48116
Midwest Family Mutual Insurance Co., 3033
Campus Drive, Suite E195, Plymouth, MN 55441
Philanthropic Mutual Fire Insurance Co., 1862
Charter Lane, Suite 106, Lancaster, PA 17601
Progressive Classic Insurance Co., 8040 Excelsior Drive, Suite 200, Madison, WI 53717
Progressive Northern Insurance Co., 8040 Excelsior Drive, Suite 200, Madison, WI 53717
Providence Washington Insurance Co., 1275
Wampanoag Trail, Riverside, RI 02915
Rampart Insurance Co., 5 Hanover Square, 10th
Floor, New York, NY 10004
Sears Life Insurance Co., 3001 Meacham Blvd.,
Suite 100, Fort Worth, TX 76137
Triton Insurance Co., 3001 Meacham Blvd., Suite
100, Fort Worth, TX 76137
U.S. Financial Life Insurance Co., 1290 Avenue of
the Americas, New York, NY 10104
York Insurance Co., 1275 Wampanoag Trail, Riverside, RI 02915
September 2008
To grow my Medicare business,
I need a wide variety of products.
Including low premium plans.
Aetna Medicare gives you what
you need…and easy registration, too.
We’ve talked to a lot of brokers — some sell Medicare,
some don’t. But all agree: If they’re going to sell Medicare
products, they want a wide variety of products to oﬀer
their clients, including plans with low premiums. And
they want the registration process to be easy.
You probably feel the same. So call Aetna Medicare.
Contact the Aetna Broker Services Unit:
1-800-AETNA-83
www.RecruitMeAetna.com
Call 1-800-AETNA-83
www.RecruitMeAetna.com
Aetna is the brand name used for products and services provided by one or more of the Aetna group of subsidiary companies. Plans
are oﬀered by Aetna Health Inc., Aetna Health of California Inc., Aetna Health of Illinois Inc. and/or Aetna Life Insurance Company
(Aetna). Plan availability varies by county. Plan contains exclusions and limitations.
7A_80343
©2008 Aetna Inc.
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September 2008
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