Kaiser Permanente gets OK to build $285 million Tanasbourne hospital

New medical center would be first in the region in nearly 30 years

A rendering shows the proposed 380,000-square-foot Kaiser Permanente hospital that will be constructed in the Tanasbourne area.

Oregon’s Department of Human Services gave the green light Wednesday to Kaiser Permanente’s plan for a $285 million, 138-bed hospital in the Tanasbourne area.

The state agency approved Kaiser’s application to construct the 380,000-square-foot medical center, which will be the first new Portland-area hospital in nearly three decades.

“We are happy that Oregon officials agree with us about the need for more hospital beds in Washington County,” said Larry Wheeler, vice president of communications and external affairs for Kaiser Permanente’s Northwest Region. “Our membership there has grown by more than 60 percent in the last decade. We look forward to serving our growing membership, and to providing emergency care to all people in the community.”

In addition to the patient rooms, the facility will house surgical suites, an intensive care unit, an emergency department, a labor and delivery unit, imaging and laboratory services and a pharmacy.

The hospital is scheduled to open in 2011, along with an adjacent specialty care medical office and outpatient surgery center.

Wheeler said that Kaiser Permanente was committed to continuing charity care and providing health coverage for the uninsured in Washington County.

“We plan to continue our support of agencies serving the poor and vulnerable, such as the Essential Health Clinic, Virginia Garcia Memorial Health Center, Community Action and others,” he said.

Representatives from many of the organizations publicly supported the new medical center, as have county business and government leaders.

“We welcome this decision and look forward to offering better access and more local health care choices for the workers and residents of Hillsboro and the neighboring communities,” said Jonathan Schlueter, executive director of the Westside Economic Alliance.

Schlueter was one of a half-dozen people who testified in favor of the project at a public hearing in early December.

In Oregon, any organization that wants to build a new hospital must submit a certificate of need application to the state Department of Human Services. Kaiser Permanente submitted its application in 2005 and received approval Wednesday.

Kaiser Permanente’s only other Portland-area hospital is the Kaiser Sunnyside Medical Center in Clackamas. That facility has 196 beds and is adding a 200,000-square-foot patient care wing.

More than 485,000 people in Oregon and Southwest Washington receive their health care from Kaiser Permanente.

Health Insurance Markets

These are the notes I used for my remarks on health care reform at the forum I attended last week:

Health Insurance Markets, by Mark Thoma: In the ten minutes that I have, I’d like to talk about insurance markets. In general, insurance gives us financial protection from unexpected events -- a tree falls on our house, we have a car accident, we become unemployed, we become sick and need health care, and so on. In some cases, the insurance is provided by the private sector, though it’s usually with government oversight, but in other cases the government itself provides the insurance. When the government provides the insurance, we call it social insurance. Social insurance provides individuals or households protection against certain events such as unemployment, poverty during old age, health expenses, and disability. It is distinguished from other insurance by the fact that it is “undertaken, facilitated, or enforced by government as a social policy.”

We might leave all of our insurance needs to the private sector, but unfortunately insurance markets do not always function in a way that provides adequate levels of insurance at the lowest possible price. Economists use the term market failure to describe such instances and there are many reasons markets might fail. For insurance markets, the main problems are called moral hazard and adverse selection. Moral hazard is the tendency for people to engage in riskier behavior when they know they are covered by insurance – when the downside is covered there's no reason to take precautionary behavior. This causes too much risk to be taken raising costs. Fortunately, this class of problems can be addressed, though not completely eliminated, through deductibles, co-payments, and other cost sharing arrangements that cause the insured to pay a penalty when there is a need to use the insurance. But so long as the insurance company pays some share of the costs, some degree of moral hazard is likely to be present.

While moral hazard can be reduced, adverse selection is not as easily overcome. The specific form of adverse selection at work in these markets is asymmetric information. Individuals have much better information about their health histories and likely health outcomes than insurance companies. Because premiums are set based upon the average member of group, some members of the group will need more health care than they pay in premiums and other members will need less. Those who expect to use less health services than it costs based upon knowledge of their likely health outcomes will not get insurance – it doesn’t pay to do so – while those who expect to have higher costs will stay in the market. Then, as the lower expected health care cost people drop out of the market and higher cost people make sure to enter, average costs rise, premiums increase, and this then motivates more people to drop out leading to market failure.

The solutions here are to require people to disclose known conditions at the time they purchase insurance and to fully disclose their health histories to insurance companies, or to mandate that everyone must have coverage thereby preventing anyone from dropping out. This leads to concerns, however. The first is privacy. How much should people be required to tell insurance companies about their personal health histories? How much testing should insurance companies be allowed to do before signing you up? For example, is genetic testing and subsequent exclusion form coverage okay? That brings up the second problem, whether we want to discriminate in terms of the cost of health insurance based upon conditions people are born with, their genetics, or is that a risk that is properly shared across the population since an individual can do nothing to affect the genes they are born with?

There is another problem in these markets that also causes people to drop out and forego coverage. When people believe they will end up in the same general condition whether or not they have insurance, there is no need to purchase protection. If the unemployed believe society will take care of them when they are unemployed if they don’t have insurance, there is no need to purchase private unemployment insurance. If a person believes their retirement will be the same whether or not they save - that the government will not let them live in squalor and will provide the same basic standard of living they would have otherwise, or nearly so, if health care can be obtained whether or not the individual is insured, then there is no incentive to purchase insurance and these markets will fail.

This is one reason social insurance or regulations mandating everyone have insurance can be useful. By forcing everyone to be pooled together and share risks that are out of their personal control and by preventing people from dropping out of the market, the adverse selection problem is reduced and risks are shared broadly, but note that this requires government intervention through regulation, tax incentives, and other policies, or the government provision of insurance, and a societal judgment that these risks ought to be broadly shared.

In recent history, one way we have addressed the adverse selection problem is by purchasing health insurance through our employers. The bigger the group, the lower the costs from reduced administrative costs and other savings. Employer provided health insurance has been encouraged and facilitated by tax-subsidies which have also helped to hold the market together and to convince people who might not buy insurance on the individual market to purchase it through their employer.

Employer-provided health insurance is not a perfect solution to adverse selection – and it is especially imperfect for small employers – but it has presumably helped. More generally, regulation and subsidies can help with the adverse selection problem but, in the real world, they will never completely eliminate the adverse selection problem and will not, therefore, result in universal coverage. The only way to do this is to force people to buy health insurance, which is the approach that Massachusetts is attempting right now.

All markets fail to one degree or another. But that doesn’t automatically imply that the government should step in and try to correct the problem. Government is inefficient. Thus, when government gets involved, it is costly in terms of wasted resources and other problems. But market failures are costly too. These costs need to be balanced – doing nothing brings about the cost of the market failure and stepping in and doing something has the cost of government inefficiency plus whatever residual part of the problem remains after the intervention. Therefore, the government should get involved only if the costs it imposes are smaller than the costs of allowing the market to operate without any intervention. Often this test is not met – markets are not perfect but government interference would be worse – but that is not always the case and there are certainly instances where government intervention can improve the economic outcome.

In general, we can think of two types of solutions to the market failure problem in insurance markets. The first is based in the private sector and it involves the government creating laws and regulations that get the incentives right in these markets, and then letting the markets themselves provide the insurance. In general, given that intervention can be justified due to the presence of a substantial market failure, economists believe in the ability of markets to efficiently allocate resources and when market based solutions are available, they are generally preferred to more heavy handed regulatory structures. But it is not always possible to solve the problems in the private markets through regulation and other policies to create the right incentives, and in these cases the second type of solution, the government provision of the good, is the most efficient way to provide the good or service.

Do health markets suffer from substantial market failure? My assessment of these markets says the answer is yes and, in particular, the most difficult problem to solve, adverse selection, is the most serious problem plaguing these markets. My preferred solution is a universal coverage single-payer system, but there is room for disagreement on this. In any case, solving these problems will require us to choose between two courses of action, solutions such as Health Savings Accounts which reside in the private sector but are guided by a regulatory structure that attempts to create incentives for both providers and consumers of health care to behave optimally, and solutions such as expanding Medicare nationally into a single-payer system. For me the choice is not ideological, it is not Democrats versus Republicans or free marketeers versus advocates of the welfare sate, but rather it is a matter of economics. It comes down to which type of solution is likely to produce the most desirable outcome from a social policy perspective.

To summarize, let me emphasize the difficult tradeoffs we face. In the context of health insurance, there is no perfect solution that will solve all of the problems in these markets. We will have to make choices and there will always be trade-offs. If we have a private sector based system with wide and generous insurance coverage with small out of pocket expenses, there will always be moral hazard and the higher insurance costs that come with it. If we have a single payer system, there will always be problems arising from the government setting prices different from their optimal values leading to misdirected resources and other inefficiencies. If you don't want the government involved at all, you will have to accept that some segments of the population will go uninsured. There is no way to have it all. Instead, the question is which type of system is likely to produce the outcome most consistent with our social policy objectives.

Free Insurance Leads Can Cost you a Bundle

Back in the 1970s when I first got into the insurance business, the natural order of things was to get your insurance license and go to work for a general agent. The GA's job, in exchange for a cut of your commissions, was to give you products, a selling system, motivation, and free insurance leads.

Today the model is different. You get your license and automatically become a general agent earning full street-level commissions. You then partner with an insurance marketing organization for product representation, selling systems, and (the number one reason agents choose a particular marketing organization) free insurance leads.

But if a handful of free insurance leads is all your new partner has to offer, how much are they really costing you?

If you are a career conscious agent, you will look beyond the immediate gratification and false hopes of free insurance leads. You will understand the gimmick of a prize inside the Cracker Jack box. You will focus on the greater need for effective, ongoing prospecting systems, progressive selling systems, motivational and educational coaching, and cutting-edge products, long after your free insurance leads have evaporated.

Here are the five most important questions to ask an insurance marketing organization before hitching your career to their carriers:

1. How long have you been in business?

Many newcomers to the FMO, IMO, NMO arena lack seasoning. Many hope to test their leads and selling systems on inexperienced agents. A track record of 10 to 20 years is good, 30 to 40 years even better.

2. Which carriers do you represent and how do they rate with the rest of the industry?

A marketing organization with a dozen or more carriers usually indicates a lack of focus. Three or four of the industry's top carriers is an ideal mix.

3. Why should I believe your free insurance leads are any good?

Ask what criteria they use in selecting the leads. Do they fit the profile of people who already own the insurance product you are selling? They should.

4. What kind of support do you have to help me grow my business and stay competitive?

The best marketing organizations will give you your own insurance coach for help with case design, product training and marketing support. Expect online systems for checking new business, commissions and existing policy status, and for downloading current forms, sales scripts and marketing materials. Invariably, just having your own coach can make a huge difference in your success.

5. What prospecting and selling systems do you have and how do I get them?

Most marketing organizations have the usual direct mail lead systems. Many require you to pay costs up front then seek reimbursement through your production. The best direct mail lead program is one that replenishes your lead supply at no cost to you, with each sale you make, giving you a never-ending stream of qualified prospects.

Most marketing organizations have standard selling systems ranging from flip charts to client approved CD-ROMs. Unfortunately, few organizations understand how important the "M" is in FMO, IMO or NMO, and have not sprouted a new marketing idea in decades. Meanwhile the prospect pool grows wary of the same old ploys.

But imagine an insurance marketing organization that will:

(A) Ghostwrite newspaper articles for you to publish as expert author in your hometown newspapers. You include your bio, photo and contact information for lead generation and referral.

(B) Produce your own half-hour radio talk show with you being interviewed as guest expert in your insurance field, for airing on your local radio stations. You position yourself as the expert, you pre-sell the concept, and you offer your phone number for listeners to call for additional information or your free offer.

(C) Produce your own half-hour cable TV infomercial in an interview format with you as the guest expert for airing on your local cable TV channels. You position yourself as the local expert, you break the ice by showing prospects the real you in the comfort of their own living room, you pre-sell your insurance concept, and give out your phone number for viewers to call for additional help or your free offer.

(D) Give you an original, fully scripted, turn-key seminar system complete with ongoing coaching, handouts, PowerPoint slides and multi-media, and a proven formula for setting appointments with 70% to 80% of the room. The multi-media content alone has produced over $1.3 billion in sales and is still going strong.

A marketing organization that will do all of the above for you, absolutely free of charge based on production, can catapult your career to the next level. The organizations that offer free insurance leads, with little else down the road, can end up costing you a bundle in lost opportunity. Please call me for more details.

Earthquake Insurance in the Northwest

Here in the Northwest Earthquake Insurance is one of the most important types of Insurance to add to your Homeowner’s Policy...and yet it is also the most forgotten about. Thinking about Earthquake Insurance requires preparing for the worst, and yet as humans we tend to hold the mind set, “Oh that would never happen to me!” However, looking at where we are located here in Washington state we have to be aware that it very well could happen to us. The question we really need to ask ourselves is, “if it happened could I afford to replace my home?” Most of us would have to answer “No.” In light of this it is extremely important to have Earthquake Insurance.

Earthquake Insurance can be added as an endorsement to your existing policies, or it can be purchased as a stand-alone policy. There are certain underwriting guidelines when purchasing one of these policies. These guidelines are:

* What year was home built?
* Type of foundation?
* Type of construction; frame or masonry?
* Approximate distance to water?
* Is the home located on a steep bank?

Many insurance companies in the State of Washington no longer offer Earthquake Insurance. Consumers may not even be aware that their insurance company is no longer offering this coverage. It is important to call your current insurance company and specifically ask them if they carry Earthquake Insurance.

At Eagle Harbor Insurance we have several different markets that provide Earthquake Insurance, and we will work with you to find the type of coverage you need.

Homeowner insurance rates to rise by 25 percent on N.C. coast

RALEIGH, N.C. - Homeowner insurance premiums will rise by 25 percent along the coast this year as a result of the rising cost of homes, higher repair costs and a recent history of severe damage from storms, state Insurance Commissioner Jim Long said.

The new rates, which take effect May 1, are the result of a settlement between the insurance industry and the state Department of Insurance.

The average premium increase on home insurance statewide is 5.4 percent, far below the 21.9 percent jump sought by insurers. Rates are set by region, based on the number and type of claims and repair costs in each area.

Those who rent out their beach houses will have to cover the higher insurance costs, said Alan Holden, who owns a property management company and RE/MAX at the Beach in Holden Beach.

"The owners are going to pass it on," he said. "I'm in shock by such an increase. Having just gone through a recent increase, it makes you wonder where it is going to stop."

The last rate increase was in 2005, when rates along the coast jumped 15 percent.

The last storm to hit the coast was Hurricane Ophelia in 2005, which caused more than $40 million dollars in damage.

Parents pay for kids' insurance claims

Teenagers who wear the latest designer fads or listen to brand new MP3 players are proving a financial headache for their parents as they are forced to shell out on expensive insurance claims.

A study by Cornhill Insurance discovered that three in ten teenagers are regularly the victims of theft or lose their valuable gadgets.

Teenagers are, on average, walking the streets wearing goods up to the value of £768, with at least £300 represented by highly prized items such as flash watches and iPods.

And according to Mark Bishop, spokesman for Cornhill Direct, it is for this reason that parents are facing such hefty insurance claims.

He said: "Young teenagers travelling alone are particularly vulnerable to thieves and muggers."

He added: "Leaving the house wearing expensive jewellery and using an MP3 player might attract attention but not necessarily the sort a teenager is looking for in the shape of thieves and muggers."

However, the survey revealed that parents are not the only ones footing the bill as half of teenagers are saving up for their expensive gadgets out of their own money.

Price Shop for Your Health Insurance

What Options Do You Have for Buying Health Insurance on Your Own?

Question: What options do I have for buying health insurance on my own?

Answer: Because health insurance is administered differently in each state, a good starting place to find more information is the health or insurance department for the state where you live. Some states offer programs to the uninsured, such as the Family Health Plus program in New York state, allowing individuals or families with limited income to purchase their own plan. Alternatively, individual or family plans are offered at market rates through a number of national and regional carriers.

Those looking for individual and family plans can also start their research at Web sites such as www.healthdecisions.org and http://www.healthinsuranceinfo.net/.

Those who buy health insurance on their own tend to be relatively price sensitive since they absorb the entire cost of the plan themselves. Premiums vary by state and risk profile. A 2004 survey by the trade group America's Health Insurance Plans shows that individual annual premiums ranged from $1,885 in California to $6,048 in New Jersey. Ninety-four percent of the individual policies sold were on average less than $3,000. Nationwide, the survey showed annual premiums on average were $2,268 for individuals and $4,424 for families.

One New York-based nonprofit, the Freelancers Union, addresses a growing need for plans not sponsored by a company and has plans to expand its services to members outside New York. Members around the country can buy disability and life insurance, but only those in New York can buy health insurance. In the coming months, Freelancers Union plans to begin offering options to buy health insurance in the states with the greatest demand.

The nonprofit's largest membership can be found in New Jersey, California, Connecticut, Pennsylvania, Florida, Massachusetts, Texas, Ohio, Illinois and Maryland.

Other organizations that offer health insurance options include AllFreelance.com, the National Association for the Self-Employed, the National Writers Union and others.

Change is coming that may affect how not only freelance workers, but full-time employees, buy health insurance.

Freelancers Union founder Sara Horowitz said the rising cost of health insurance is contributing to the decline of the employer-sponsored system for health care. She predicts that a growing number of individuals will begin buying their own plans, leading to a "quintessential David and Goliath" problem where consumers have no buying power and no ombudsman to help them navigate their medical claims.

That, Horowitz said, will lead to a reinvention of how we buy health insurance, with people grouping themselves together to increase their negotiating power and fund health advocates who help negotiate the claims process.

"I think we're going to see a rise in these services over time," she said.

Business Insurance Online

What do you know about business insurance? What you should know about business insurance are two things that are important when you are out to get business insurance for yourself. There are many factors that you will need to take into consideration. But the most important of them are:

Price: You need to know you are getting the best quote available. The only ways to ensure that is by getting quotes from at least five different insurance companies and compare them. When you do that, check all the pros and cons so you get the complete picture. hen you do that, check all the pros and cons so you get the complete picture. Some insurance agencies charge a very small fee upfront but has a lot of other fees such as processing fees, inspection fees, documentation fees, etc which will take the price through the roof.

Another smart way is to get a quote from insurance brokers like http://www.oneshopinsurance.com. They can surely help you decide which insurance company is best for your insurance needs.

Kaiser Permanente Insurance

Kaiser Permanente is an integrated managed care organization, based in Oakland, California, founded in 1945 by industrialist Henry J. Kaiser and physician Sidney R. Garfield. Kaiser Permanente is a consortium of three distinct groups of entities: the Kaiser Foundation Health Plan, Inc. and its regional operating organizations, Kaiser Foundation Hospitals, and the Permanente Medical Groups.

As of 2006, Kaiser Permanente operates in nine states and Washington, D.C., and is the largest not-for-profit managed care organization in the United States. Kaiser Permanente has 8.5 million health plan members, 148,884 employees, 12,879 physicians, 37 medical centers, 400 medical offices, and $31.1 billion in annual operating revenues. The Health Plan and Hospitals operate under state and federal not-for-profit tax status, while the Medical Groups operate as for-profit partnerships or professional corporations in their respective regions.


Kaiser Permanente provides care throughout eight regions in the United States. Each of these regions comprise two or three (and, in one case, four) separate but interdependent legal entities. This structure has endured since Kaiser Permanente physicians and leaders agreed to this framework, known as the Tahoe Agreement, in 1955.

[edit] National structure

The two types of organizations which make up each regional entity are:

* Kaiser Foundation Health Plans work with employers, employees, and individual members to offer prepaid health plans. The health plans are not-for-profit and provide infrastructure for and invest in Kaiser Foundation Hospitals and for-profit medical groups.
* Permanente Medical Groups are partnerships of physicians, which provide and arrange for medical care for Kaiser Foundation Health Plan members in each respective region. The medical groups are for-profit partnerships or professional corporations and receive funding from Kaiser Foundation Health Plans. The first medical group, The Permanente Medical Group, formed in 1948 in Northern California.

In addition, Kaiser Foundation Hospitals operates medical centers in California, Oregon, and Hawaii, and outpatient facilities throughout the Kaiser Permanente regions. The hospital foundations are not-for-profit and primarily rely on the Kaiser Foundation Health Plans for funding. They also provide infrastructure and facilities that benefit for-profit medical groups.

[edit] Regional entities

For more information on the regional entities and management of Kaiser Permanente, see Kaiser Permanente entities.

Kaiser Permanente is administered through eight regions, including one parent and five subordinate health plan entities, one hospital entity, and nine separate, affiliated medical groups:

* Northern California
o Kaiser Foundation Health Plan, Inc. (KFHP)
o Kaiser Foundation Hospitals (KFH)
o The Permanente Medical Group, Inc. (TPMG)
* Southern California
o Kaiser Foundation Health Plan, Inc. (KFHP)
o Kaiser Foundation Hospitals (KFH)
o Southern California Permanente Medical Group (SCPMG)
* Colorado
o Kaiser Foundation Health Plan of Colorado (KFHPCO)
o Colorado Permanente Medical Group, P.C. (CPMG)
* Georgia
o Kaiser Foundation Health Plan of Georgia, Inc. (KFHPGA)
o The Southeast Permanente Medical Group, Inc. (TSPMG)
* Hawaii
o Kaiser Foundation Health Plan, Inc. (KFHP)
o Kaiser Foundation Hospitals (KFH)
o Hawaii Permanente Medical Group, Inc. (HPMG)
* Mid-Atlantic (vicinity of Washington, D.C., including Maryland and Virginia)
o Kaiser Foundation Health Plan of the Mid-Atlantic States Inc. (KFHPMA)
o Mid-Atlantic Permanente Medical Group, P.C. (MAPMG)
* Northwest (Northwest Oregon and Southwest Washington)
o Kaiser Foundation Health Plan of the Northwest (KFHPNW)
o Northwest Permanente, P.C. Physicians and Surgeons (NWP)
o Group Health Permanente, P.C. (GHP)
* Ohio
o Kaiser Foundation Health Plan of Ohio (KFHPOH)
o Ohio Permanente Medical Group, Inc. (OPMG)

In addition to the regional entities, in 1996, the then-twelve Permanente Medical Groups created The Permanente Federation, a separate and subordinate entity, which focuses on standardizing patient care and performance under one name and system of policies. The Federation oversees The Permanente Company, which provides a central governance structure for corporate activities.[2]

[edit] National management and governance

The separate entities of Kaiser Permanente each have separate management and governance structures, which, to some degree, are interdependent and cooperative. For example, George C. Halvorson is commonly referred to as the chief executive officer and chairman of Kaiser Permanente, although he is not an officer or director of any of the Permanente Medical Groups. Francis J. Crosson, who serves as executive director for The Permanente Federation, is sometimes referred to as the executive director for Kaiser Permanente as a whole.

Further, Jeffrey A. Weisz, the medical director of the Southern California Permanente Medical Group, is commonly referred to as the medical director for Kaiser Permanente Southern California. However, there are exceptions to the rule, due to the varied structures employed by the separate Medical Groups. For example, Dr. Weisz's Northern California counterpart, Robert M. Pearl, serves as executive director and chief executive officer of The Permanente Medical Group (of Northern California). Simply calling Dr. Pearl the chief executive officer of Kaiser Permanente Northern California would conflict with Mr. Halvorson's title, while calling him the executive director would conflict with Dr. Crosson's title.

[edit] Health Plan

The officers and directors of Kaiser Foundation Health Plan, Inc. directly manage and oversee, respectively, the operations of Health Plan for the Northern California, Southern California, and Hawaii regions. These same officers and directors concurrently serve as officers of Kaiser Foundation Hospitals, a legally separate entity.

The regions outside of California typically have subordinate management teams which report to the "national" management team (which, technically, manages only California, but, which, in practice, appoints and, thusly, manages the other regions, as well). Similarly, the regions outside of California typically have separate Boards of Directors, made up in whole or in part of the California directors or their appointees.

[edit] Officers

The management team of Kaiser Foundation Health Plan and Hospitals consists of:

* George C. Halvorson, chairman and chief executive officer
* Raymond J. Baxter, senior vice president for community benefit
* Robert M. Crane, senior vice president for research and policy development
* J. Clifford Dodd, senior vice president, chief information officer, and chief administrative officer
* Jerry C. Fleming, senior vice president and National Health Plan Manager
* Daniel P. Garcia, senior vice president and chief compliance officer
* Kathy Lancaster, senior vice president and chief financial officer
* Louise Liang, senior vice president for quality and clinical systems support
* Diane Gage Lofgren, senior vice president for brand strategy, communications, and public relations
* Laurence G. O'Neil, senior vice president for human resources
* Arthur M. Southam, senior vice president for product and market management
* Bernard J. Tyson, senior vice president for Health Plan and Hospital operations
* Steven R. Zatkin, senior vice president, general counsel, and secretary
* Thomas R. Meier, vice president and treasurer
* Deborah Stokes, vice president and controller
* Victoria B. Zatkin, assistant secretary, senior counsel, and director for board and corporate governance services

Mr. Dodd resigned as chief information officer in November 2006, although it is not yet clear whether he still serves as an officer of Health Plan and Hospitals. Mr. Crane also serves as the director of the Kaiser Permanente Institute for Health Policy.

[edit] Directors

The Board of Directors, the ultimate governing body of Kaiser Foundation Health Plan, Inc. and Kaiser Foundation Hospitals, currently has fourteen authorized designated, ex officio, or appointed seats. The directors serve three year terms, and may be reappointed. The bylaws of Kaiser Foundation Health Plan provide that, when there is a vacancy, the remaining members of the Board, in whole or in part, will select and appoint a new director to fill that vacant seat. Thusly, the Board is considered a self-appointing, self-selected, unelected Board.

The current ex officio and designated directors (who likely will serve until replaced by the Board):

* George C. Halvorson, chairman and chief executive officer, and an ex officio director
* Daniel P. Garcia, senior vice president and chief compliance officer, and a designated director

With terms expiring at the first regular Board meeting in 2007:

* William R. Graber, former senior vice president and chief financial officer, McKesson Corporation
* Kim J. Kaiser, pilot, Alaska Airlines
* Sandra P. Thompkins, executive director of human resources for Delphi Packard Electric Systems

With terms expiring at the first regular Board meeting in 2008:

* Christine K. Cassel, executive head of the American Board of Internal Medicine
* Judith A. Johansen, former president and chief executive officer of PacifiCorp
* Edward Pei, executive vice president of First Hawaiian Bank
* Cynthia A. Telles, director of the Spanish-Speaking Psychosocial Clinic at the UCLA School of Medicine

With terms expiring at the first regular Board meeting in 2007:

* Thomas W. Chapman, president and chief executive officer, The HSC Foundation
* J. Eugene Grigsby, II, president and chief executive officer, National Health Foundation
* Philip A. Marineau, president and chief executive officer, Levi Strauss & Co.
* J. Neal Purcell, retired vice chairman, KPMG International

There is currently one vacancy on the Board, which will likely be filled at the first regular Board meeting in 2007.

[edit] Federation

The Permanente Federation is a national, but subordinate entity representing the regional Permanente Medical Groups.

[edit] Management

The management of The Permanente Federation is made up of:

* Francis J. Crosson, executive director
* Simon Cohn, associate executive director and director, health information policy
* Steve Cole (businessman), director, public policy and government relations
* Robert Formanek, medical director, quality review
* Pauline Fox, general counsel and compliance liaison
* Glen Hentges, chief financial officer
* Rand Holt, associate executive director, business information support
* Michael Mustille, associate executive director, external relations
* Jill Steinbrugge, associate executive director, physician development
* Paul Wallace, medical director, health and productivity management programs
* Jed Weissberg, associate executive director, quality and performance improvement
* Andrew Wiesenthal, associate executive director, clinical information support
* Winston Wong (physician), clinical director, community benefit

The management of The Permanente Company is made up of:

* Francis J. Crosson, president and chief executive officer
* Chris Grant (businessman), vice president, national venture development
* Edwina Zeppieri, controller

[edit] Governance

The Permanente Federation is accountable to an Executive Committee, and is made up of four of the nine regional Permanente Medical Group chiefs. The chief executive officer and executive director for The Permanente Medical Group and the medical director for the Southern California Permanente Medical Group have permanent seats on the committee. The remaining seven regional Permanente Medical Groups select two additional committee members from among their own chiefs. In addition, once the Executive Committee appoints an executive director for The Permanente Federation, that executive director serves as an ex officio member of the Executive Committee, bringing the committee to five total seats. The current Executive Committee is:

* Francis J. Crosson, executive director of The Permanente Federation
* Robert M. Pearl, executive director and chief executive officer, TPMG
* Jeffrey A. Weisz, medical director and chairman, SCPMG
* Bruce Perry (physician), medical director and chairman, TSPMG
* Ronald Copeland, president and medical director, OPMG, currently chairman of The Permanente Federation

[edit] Regional governance

For more information on the regional entities and management of Kaiser Permanente, see Kaiser Permanente entities.

Each regional entity of Kaiser Permanente typically has a president, appointed by the chief executive officer and chairman of Kaiser Foundation Health Plan, Inc. Each regional president has autonomy to manage the operations of each region, to some degree, and typically works closely with the Permanente Medical Group chief for their region in setting and executing strategy that is in harmony with national strategy, planning, policies, and expectations.

[edit] History

[edit] Early years

Though it has since become the largest organization of its kind, Kaiser was not the first HMO.[3] In its modern form, the HMO combines a large group practice, contracts with employers to care for a group of workers, and a prepayment plan for both hospitals and group practices. The first "contract doctor" system in the West was orchestrated by Dr. Raymond G. Taylor, who created a temporary healthcare system from 1908 to 1912 on behalf of the Los Angeles Board of Public Works to care for the 10,000 workers on the Los Angeles Aqueduct project.[3] The first group prepayment plans appeared in 1929 in response to the onset of the Great Depression.[3] That year, Baylor University started a hospital prepayment plan, the first of several which would ultimately join together to become the Blue Cross insurance network.[3] In Oklahoma, Dr. Michael Shadid recruited local farmers around Elk City, Oklahoma into a small consumer healthcare cooperative.[3] And in Los Angeles, Dr. Donald Ross and Dr. H. Clifford Loos founded the Ross-Loos Clinic to care for City of Los Angeles public utilities workers.[3]

As for Kaiser Permanente, its history dates back to the year 1933 and a tiny hospital in a little town called Desert Center, California.[3] At that time, Kaiser and several other large construction contractors had formed an insurance consortium called Industrial Indemnity to meet their workers' compensation obligations.[3] Garfield had just finished his residency at Los Angeles County-USC Medical Center at a time when jobs were scarce; fortunately, he was able to secure a contract with Industrial Indemnity to care for 5,000 construction workers building the Colorado River Aqueduct in the Mojave Desert.[3] Soon enough, Garfield's new hospital was in a precarious financial state (with mounting debt and the staff of three going unpaid), due in part to Garfield's desire to treat all patients regardless of ability to pay, as well as his insistence on equipping the hospital adequately so that critically injured patients could be stabilized for the long journey to full-service hospitals in Los Angeles.[3]

However, Garfield's dedication and competence won over two Industrial Indemnity executives, Harold Hatch and Alonzo B. Ordway.[3] It was Hatch who proposed to Garfield the specific solution that would lead to the creation of Kaiser Permanente: Industrial Indemnity would prepay 17.5% of premiums, or $1.50 per worker per month, to cover work-related injuries, while the workers would each contribute five cents per day to cover non-work-related injuries.[3] Later, Garfield also credited Ordway with coming up with the general idea of prepayment for industrial healthcare.[3] Garfield also later explained that he did not know much at the time about other similar health plans except for Ross-Loos.[3]

Hatch's solution enabled Garfield to bring his budget back into the positive, and to experiment with providing a broader range of services to the workers besides pure emergency care. By the time work on the aqueduct concluded and the project was wrapped up, Garfield had paid off all his debts, was supervising ten physicians at three hospitals, and controlled a healthy financial reserve of $150,000.[3]

Garfield returned to Los Angeles for further study at County-USC with the intent of entering private practice.[3] However, in March 1938, Consolidated Industries (a consortium led by the Kaiser Company) initiated work on a contract for the upper half of the Grand Coulee Dam in Washington state, and took over responsibility for the thousands of workers who had worked for a different construction consortium on the first half of the dam.[3] Edgar Kaiser, Henry's son, was in charge of the project.[3] To smooth over relations with the workers (who had been badly treated by their earlier employer), Hatch and Ordway persuaded Edgar to meet with Garfield, and in turn Edgar persuaded Garfield to tour the Grand Coulee site.[3] Garfield subsequently agreed to reproduce at Grand Coulee Dam what he had done on the Colorado River Aqueduct project.[3] He immediately spent $100,000 on renovating the decrepit Mason City Hospital and hired seven physicians.[3]

Unlike the workers on Garfield's first project, many workers at Grand Coulee Dam had brought dependents with them. The unions soon forced the Kaiser Company to expand its plan to cover dependents, which resulted in a dramatic shift from industrial medicine into family practice and enabled Garfield to formulate some of the basic principles of Kaiser Permanente.[3] It was also during this time that Henry Kaiser personally became acquainted with Garfield and forged a friendship which lasted until Kaiser's death.[3]

In 1939, the Kaiser Company began working on several huge shipbuilding contracts in Oakland, and by the end of 1941 would control four major shipyards on the West Coast.[3] During 1940, the expansion of the American defense-industrial complex in preparation for entrance into World War II resulted in a massive increase in the number of employees at the Richmond shipyard.[3] In January of 1941, Henry Kaiser asked Garfield to set up an insurance plan for the Richmond workers (this was merely contract negotiation with insurance companies), and a year later Kaiser asked Garfield to duplicate at Richmond what he had done at Desert Center and Mason City.[3] Unlike the two other projects, the resulting entity lived on after the construction project that gave birth to it, and it is the direct ancestor of today's Kaiser Permanente.[3]

On March 1, 1942, Sidney R. Garfield & Associates opened its offices in Oakland to provide care to 20,000 workers, followed by the opening of the Permanente Health Plan on June 1.[3] From the beginning, Kaiser Permanente strongly supported preventive medicine and attempted to educate its members about maintaining their own health.[3]

In July the Permanente Foundation was formed to operate Northern California hospitals that would be linked to the outpatient health plans, followed shortly thereafter by the creation of Northern Permanente Foundation for Oregon and Washington and Southern Permanente Foundation for Southern California.[3] The name Permanente came from Permanente Creek, which ran by Henry Kaiser's first cement plant; Kaiser's first wife, Bess Fosburgh, liked the name.[3] The first Permanente Hospital opened in Oakland on August 1.[3] Three weeks later, the Richmond Field Hospital opened, and the Northern Permanente Hospital opened two weeks later to serve workers at the Kaiser shipyard in Vancouver, Washington.[3] In 1944 Kaiser decided to continue the program after the war and to open it up to the general public.[3]

Meanwhile, during the war years, the American Medical Association (which opposed managed care organizations from their very beginning) tried to defuse demand for managed care by promoting the rapid expansion of the Blue Cross and Blue Shield preferred provider organization networks.[3]

[edit] Postwar growth

The end of World War II brought about a huge plunge in Kaiser Permanente membership; for example, 50,000 workers had left the Northern California yards by July 1945.[3] Membership bottomed out at 17,000 for the entire system but then surged back to 26,000 within six months as Garfield aggressively marketed his plan to the public.[3] Sidney Garfield & Associates had been a sole proprietorship, but in 1948, it was reorganized into a partnership, Permanente Medical Group.[3]

During this period, a substantial amount of growth came from union members; the unions saw Kaiser Permanente care as more affordable and comprehensive than what was available at the time from private physicians under the fee-for-service system.[3] For example, Fortune magazine had reported in 1944 that 90% of the U.S. population could not afford fee-for-service healthcare.[3] Kaiser Permanente membership soared to 154,000 in 1950, 283,000 in 1952, 470,000 in 1954, 556,000 in 1956, and 618,000 in 1958.[3]

From 1944 onward, both Kaiser Permanente and Garfield fought off numerous attacks from the AMA and various state and local medical societies.[3] Fortunately, Henry Kaiser came to the defense of both Garfield and the health plans he had created.[3]

In 1951 the organization acquired its current name when Henry Kaiser unilaterally directed the trustees of the health plans, hospital foundations, and medical groups to add his name before Permanente.[3] However, the physicians in the Permanente Medical Group deeply resented the implication that they were directly controlled by Kaiser, and successfully forced him to back off with respect to their part of the organization.[3] That same year, Kaiser Permanente also began experiments with large-scale multiphasic screening to identify unknown conditions and to facilitate treatment of known ones.[3] Simultaneously, although no one questioned his medical competence, Garfield's deficiencies as an executive were becoming apparent as the organization expanded far beyond his ability to manage it properly.[3]

Even worse, Henry Kaiser became fascinated with the healthcare system created for him by Garfield and began to directly micromanage Kaiser Permanente and Garfield.[3] This resulted in a financial disaster when Kaiser splurged on the new Walnut Creek hospital; his constant intermeddling led to significant friction at every level of the organization.[3] The situation was not helped by Kaiser's marriage to Garfield's head administrative nurse (who had helped care for Kaiser's first wife on her deathbed), convincing Garfield to marry the sister of that nurse, and then having Garfield move in next door to him.[3] Clifford Keene (who would eventually serve as president of Kaiser Permanente) later recalled that this arrangement resulted in a rather dysfunctional and combative family in charge of Kaiser Permanente.[3]

Keene was an experienced Permanente physician whom Garfield had personally hired in 1946.[3] During 1953 he had been trying to get a job at U.S. Steel, but on the morning of December 5, 1953, with internal tensions worsening day by day, Garfield met with Keene at the Mark Hopkins Hotel in San Francisco and asked him to turn around the organization.[3] It took Keene 15 years to realize that Kaiser had forced Garfield to ask Keene to become his replacement.[3] Due to the chaos on the board, Keene at first took control with the vague title of Executive Associate, but it soon became clear to everyone that he was actually in charge and Garfield was to become a lobbyist and "ambassador" for the HMO concept.[3]

However, even with Garfield relieved of day-to-day management duties, the underlying problem of Henry Kaiser's authoritarian management style continued to persist.[3] After several tense confrontations between Kaiser and Permanente Medical Group physicians, the doctors met with Kaiser's top adviser, Eugene Trefethen, at Kaiser's personal estate near Lake Tahoe on July 12, 1955.[3] Trefethen came up with the idea of a contract between the medical groups and the health plans and hospital foundations which would set out roles, responsibilities, and financial distribution.[3]

While Keene and Trefethen struggled to fix the damage from Kaiser's micromanagement and Garfield's ineffectual management, Henry Kaiser moved to Oahu in 1956 and then insisted on expanding Kaiser Permanente into Hawaii in 1958.[3] He promptly ruined what should have been a simple project, and only a last-minute intervention by Keene and Trefethen in August 1960 prevented the total disintegration of the Hawaii organization.[3] By that year, Kaiser membership had grown to 808,000.[3]

[edit] Managed care era

Having overseen Kaiser Permanente's successful transformation from Henry Kaiser's healthcare experiment into a large-scale self-sustaining enterprise, Keene retired in 1975.[3] By 1976, membership reached three million. In 1977, all six of Kaiser Permanente's regions had become federally qualified health maintenance organizations. Some believe then-President Richard Nixon specifically had Kaiser Permanente in mind when he signed the Health Maintenance Organization Act of 1973, as the organization was mentioned in an Oval Office discussion of the Act.[4] In 1980, Kaiser acquired a non-profit group practice to create its Mid-Atlantic region, encompassing the District of Columbia, Maryland, and Virginia. In 1985, Kaiser Permanente expanded to Georgia.

[edit] Regional evolution

By 1990, Kaiser Permanente provided coverage for about a third of the population of the cities of San Francisco and Oakland; total Northern California membership was over 2.4 million.[3]

Elsewhere, Kaiser Permanente did not do as well, and its geographic footprint changed significantly in the 1990s. The organization spun off or closed outposts in Texas, North Carolina, and the Northeast. In 1998, Kaiser Permanente sold its Texas operations, where reported problems had become so severe that the organization directed its lawyers to attempt to block the release of a Texas Department of Insurance report. This prompted the state attorney general to threaten to revoke the organization's license. In North Carolina, the Industrial Union Department of the AFL-CIO issued a 1996 report critical of the quality of the care the organization provided[citation needed]. Kaiser Permanente closed health plans in Charlotte and Raleigh-Durham in North Carolina four years later. The organization also sold its unprofitable Northeast division in 2000.

In 1995, Kaiser Permanente celebrated its fiftieth anniversary as a public health plan. Two years later, national membership reached nine million. In 1997, the organization established an agreement with the AFL-CIO to explore a new approach to the relationship between management and labor, known as the Labor Management Partnership.

[edit] Marketing

During the 1990s, the organization hired public relations firm Bain and Associates to position their brand in Washington, D.C. The organization also hired Strategic Partnerships LLC to secure[citation needed] tax incentives and a special hearing for government grants.

In 1999, a number of groups successfully sued Kaiser Permanente in regard to its In the Hands of Doctors advertising campaign. The lawsuit revealed that doctors at the organization were not fully in control of decision-making and that there may have been persuasion to limit care with financial bonuses. In 2004, the organization retained Campbell-Ewald to develop a $40-million-dollar ad campaign called Thrive. The campaign, which focuses on the theme of preventative care, was the first since Kaiser Permanente's In the Hands of Doctors campaign. Allison Janney is the company's advertising spokesperson.

[edit] Quality of care

U.S. News and World Report, in its 2005 annual ranking of US commercial health plans, listed Kaiser Permanente Hawaii as 45th (out of 257 health plans), Kaiser Permanente Colorado as 55th, Kaiser Permanente Northern California as 58th, Kaiser Permanente Mid-Atlantic as 73rd, Kaiser Permanente Georgia as 81st, and Kaiser Permanente Southern California as 88th.[5]

A 2004 Consumer Reports survey of planholders ranked Kaiser Permanente overall as average or better. It showed below average ratings in the Colorado and Mid-Atlantic regions for two measures of quality of care: 'care from doctors', and the 'quality of their primary care physician'. The same survey ranked Kaiser Permanente's Northern California region as the best HMO overall among rated plans.[6]

In the 2006 California Healthcare Quality Report Card, Kaiser Permanente's Northern California and Southern California regions led the rankings, with each scoring six out of eight possible stars.[7]

[edit] International reputation

Early in the 21st century the NHS and UK department of health became impressed with some aspects of the Kaiser operation, and initiated a series of studies involving several healthcare organisations in England.[8][9] Visits occurred and suggestions of adopting some KP policies are currently active. The management of hospital bed-occupancy by KP, by means of integrated management in and out of hospital and monitoring progress against care pathways has been admired, and given rise to trials of similar techniques in eight areas of the UK.

In 2005 a controversial British Medical Journal editorial[10] reported a study by California-based academics which compared Kaiser to the British National Health Service.[11] The editorial in the BMJ suggested that KP managed comparable costs to the NHS, but this generated argument mainly that American costs were in fact higher than NHS, and it was generally accepted that the NHS was cheaper and more efficient whereas Kaiser may be more rapid.

[edit] Research

Kaiser doctors and others carry out research publishing in peer-reviewed journals and in the organization's own journal Permanente Journal.

Kaiser operates a Division of Research which in 2006 declared around 200 active studies in progress. Kaiser's bias toward prevention is reflected in the areas of interest - vaccine and genetic studies are prominent.

Measles vaccine project participation

Between June 1990 and October 1991, Kaiser, along with the Los Angeles County Department of Health, Johns Hopkins University and the CDC carried out a clinical trial of the Edmonton strain of Measles vaccine. The Los Angeles arm of the trial involved 1500 (900 receiving the study treatment) mostly black and Latino babies. Other arms ran in Haiti and several African countries. The aim was to induce immunity to Measles earlier, as cases in young children had been causing alarm. The trial was ended early when increased mortality appeared in other countries. Inadequate consent had been obtained, in that parents were not informed that the vaccine, licenced in other countries and registered with the FDA as a trial medication, was unlicensed in the U.S. This raised concerns over US government department ethics, and occasioned an apology by the CDC[12] who ascribed it to an administrative oversight.

[edit] Regulation

In California, the Department of Managed Health Care is the state regulatory agency which oversees managed care insurers and providers. In 2005, the Department of Managed Health Care ranked Kaiser Permanente near the top of the list of California managed care insurers[13], and rated the health plan as superior on preventive care.

Federal regulation of managed care

The organization is mentioned in an Oval Office discussion about the initiation[14] of the Health Maintenance Organization Act of 1973. By 1977, all six of Kaiser's regions had become federally qualified HMOs.

[edit] Concerns and violations

As the largest not-for-profit health plan in the United States, Kaiser Permanente is a target of both praise and criticism. In recent years, however, the organization has come under intensive scrutiny for a series of management, patient care, financial, and technology issues, primarily in its Northern and Southern California regions.

[edit] Mandatory arbitration

In order to contain costs, Kaiser requires agreement by planholders to submit patient malpractice claims to arbitration rather than litigating through the court system. This has triggered some discussion and dissent.[15] Some cases proceed to court and one argument is over whether the requirement to go through dispute resolution is enforceable[citation needed].

Kaiser established an Office of Independent Administrators (OIA) in 1999 to oversee the arbitration process. The degree to which this is independent has been questioned.[16]

Wilfredo Engalla is a notable case. In 1991, Engalla died of lung cancer nearly five months after submitting a written demand for arbitration. The California Supreme Court found[17] that Kaiser had a financial incentive to wait until after Engalla died; his spouse could recover $500,000 from Kaiser if the case was arbitrated while he was alive, but only $250,000 after he died. The Foundation for Taxpayer & Consumer Rights contends that Kaiser continues to oppose HMO arbitration reform[18]

Patients and consumer interest groups sporadically attempt to bring lawsuits against Kaiser. Recent lawsuits include Gary Rushford's attempt to use proof of a physician lie to overturn an Arbitration decision.

[edit] Homeless patient treatment

Kaiser has settled three cases for alleged patient dumping since 2002. During that same period, the Office of the Inspector General settled 102 cases against US Hospitals which resulted in a monetary payment to the agency. [19][20][21]

On November 16, 2006, Los Angeles city officials filed civil and criminal legal action against Kaiser Permanente for "patient dumping"--the delivery of homeless hospitalized patients to other agencies or organizations in order to avoid expensive medical care, as reported by National Public Radio's All Things Considered.

The legal filings are intended to punish hospitals for releasing homeless hospital patients (often via taxis) on the sidewalk near relief shelters instead of accepting responsibility for releasing hospital patients into the care of a relative, or of a recognized agency.

The city's decision to charge Kaiser Permanente reportedly was influenced by security camera footage, allegedly showing a 63-year-old patient, dressed in hospital gown and slippers, wandering toward a mission on Skid Row, as outlined in a 20-page complaint. City officials say that as many as 10 other area hospitals are under investigation for possible future action for this practice. [22]

[edit] Kidney transplant program

In 2004 Kaiser initiated an in-house program for kidney transplantation. Prior to opening the transplant center, Kaiser patients would generally receive transplants at medical centers associated with the University of California (UC San Francisco and UC Davis). Upon opening the transplant center, Kaiser required that members who are transplant candidates in Northern California obtain services through their transplant center.

On May 3, 2006, the Los Angeles Times published an investigative report which accused the transplant program of mismanagement which resulted in delays for patients awaiting kidneys.[23] According to the report, Kaiser performed 56 transplants in 2005 and twice that many patients died waiting for a kidney. At other California transplant centers, more than twice as many people received kidneys than died during the same period.

On May 13, 2006 and after less than two years of operation, Kaiser announced that it would discontinue the kidney transplant program. As before, Kaiser now pays for pre-transplant care and transplants at outside hospitals and this change affected approximately 2000 patients.[24][25]

Two patients have filed personal injury lawsuits against Kaiser and the widow of a patient who died has filed a wrongful death claim. According to the lawyer representing the three plaintiffs, more lawsuits are planned.[26]

21st Century Insurance Group Receives Notification of an Unsolicited Buyout Proposal from American International Group, Inc.

Special Committee of Independent Directors to Consider the Proposal

WOODLAND HILLS, Calif.-- 21st Century Insurance Group (NYSE:TW) announced today that American International Group, Inc. (“AIG”) has submitted an unsolicited proposal to the Board of Directors of 21st Century Insurance Group (“21st Board") to acquire the shares of 21st’s common stock that AIG and its subsidiaries do not already own for $19.75 per share in cash. AIG and its subsidiaries own approximately 61.9% of the outstanding shares of 21st. For more information about this proposal, please refer to the Schedule 13D filed yesterday by AIG with the Securities and Exchange Commission.

The 21st Board has formed a Special Committee comprised entirely of independent and outside directors for the purpose of considering a proposal from AIG. The Special Committee will review and evaluate AIG’s offer and make a recommendation to the 21st Board. No decisions whatsoever have been made by the Special Committee with respect to its response, if any, to the proposal. The Special Committee will proceed in an orderly and timely manner to consider the proposal and its implications, and there can be no assurance that the proposed transaction or any other transaction will be approved or completed.

The Special Committee has retained Skadden, Arps, Slate, Meagher & Flom LLP as its legal counsel and Lehman Brothers Inc. as its financial advisor to assist in its review and evaluation of the proposal.

NOTICE FOR 21ST CENTURY STOCKHOLDERS AND INTERESTED PARTIES

This press release is not a solicitation of a proxy, an offer to purchase or a solicitation of an offer to sell shares of 21st, and is not a substitute for any proxy statement, tender offer statement or other filing that may be required to be made with the Securities and Exchange Commission if the proposed transaction goes forward. 21st stockholders and other interested parties are urged to read any such documents that are filed with the Securities and Exchange Commission because those documents will contain important information. Stockholders will be able to receive such documents free of charge at the SEC’s web site, www.sec.gov, in the Investor Relations section of the Company’s website, www.21st.com, or by contacting Investor Relations at 21st at 6301 Owensmouth Avenue, Woodland Hills, California 91367.

About 21st: Drivers Just Like You

Founded in 1958, 21st Century Insurance Group is a direct-to-consumer provider of personal auto insurance. With $1.4 billion of revenue in 2005, the Company insures over 1.5 million vehicles in 17 states, including California, Florida, New Jersey, and Texas. The Company has successfully executed a multi-year geographic expansion strategy which increased the percentage of the U.S. private passenger automobile market in which 21st operates from approximately 18% in 2003 to approximately 60% at the end of 2006. 21st provides superior policy features and 24/7 customer service at a competitive price. Customers can purchase insurance, service their policy or report a claim at www.21st.com or on the phone with our licensed insurance professionals at 1-800-211-SAVE, 24 hours a day, 365 days a year. Service is offered in English and Spanish, both on the phone and on the web. 21st Century Insurance Company, 21st Century Casualty Company, and 21st Century Insurance Company of the Southwest are rated A+ by A. M. Best, Fitch Ratings and Standard & Poor’s.

21st Century Insurance Group is traded on the New York Stock Exchange under the trading symbol “TW” and is headquartered at 21st Century Plaza, 6301 Owensmouth Avenue, Woodland Hills, CA 91367.

The health care jiggle?

As some of y’all know, the Shrimp and Grits family grew in October. Now, the bills are starting to roll in. Health care bills, that is - bills from the hospital, where my wife gave birth. Bills from the doctors at the hospital. Bills from the anesthesiologist. Bills from the pediatrician. More bills from the hospital.

In short, never-ending medical bills - and none of them cheap.

So, when I heard that President Bush was going to address health care in his State of the Union address, I was interested. Health care costs in this country are ballooning.

Over the past few years, I’ve seen

* my premiums go up (and up, and up)
* my deductible go up along with my premiums
* my out-of-pocket maximums go up
* my copays go up, especially for prescription drugs. (To add insult to injury, almost every time I’ve gotten a medicine prescribed that wasn’t an antibiotic, I’ve had to go through trying to fill the prescription, having it denied by insurance, then having to get the doctor to call the insurance company and essentially beg them to cover the medicine.)

Any kind of meaningful health care reform is going to have to address a lot of things. We need to find ways to control costs, ways to reduce the "red tape" people go through to get care, ways to make sure that all Americans can get the care they need, ways to ensure that families won’t lose everything if a member gets a long-term illness, et cetera. That’s a tall order.

Here’s what Bush said:

A future of hope and opportunity requires that all our citizens have affordable and available health care. When it comes to health care, government has an obligation to care for the elderly, the disabled, and poor children. We will meet those responsibilities. For all other Americans, private health insurance is the best way to meet their needs. But many Americans cannot afford a health insurance policy.

On what basis does Bush assume that private health insurance is the best way to meet the needs of most Americans? I have private health insurance. It seems to be more a part of the problem than part of the solution. The private insurer takes my money, provides me with little or no care without me paying even more for it through deductibles and other out-of-pocket expenses, and hassles me when my doctor prescribes medicines that they think cost too much. Plus, they don’t pay one cent towards any preventative care.

Bush continues:

Tonight, I propose two new initiatives to help more Americans afford their own insurance. First, I propose a standard tax deduction for health insurance that will be like the standard tax deduction for dependents. Families with health insurance will pay no income or payroll taxes on $15,000 of their income. Single Americans with health insurance will pay no income or payroll taxes on $7,500 of their income. With this reform, more than 100 million men, women, and children who are now covered by employer-provided insurance will benefit from lower tax bills.

Say what? Bush’s proposal to fix the health care system in this country is … a tax cut???

(I’ve since seen that it’d be a tax increase or at best a wash for some - those who have decent employer-provided insurance.)

I need some help here. I’d like someone to explain to me how jiggling the tax code this way is going to stop the upward spiral of health care costs and get Americans hassle-free access to quality care. How does this proposal address the rising prices of prescription drugs? How does it cut through the massive piles of paperwork and bills that those who are lucky enough to have insurance deal with?

Assuming it gives a few people a temporary financial boost (which will probably correct itself within a few years), how is this not the equivalent to putting a Band-Aid over a severed arm?

Bush again:

At the same time, this reform will level the playing field for those who do not get health insurance through their job. For Americans who now purchase health insurance on their own, my proposal would mean a substantial tax savings - $4,500 for a family of four making $60,000 a year. And for the millions of other Americans who have no health insurance at all, this deduction would help put a basic private health insurance plan within their reach. Changing the tax code is a vital and necessary step to making health care affordable for more Americans.

So what’s "basic" health insurance? Extremely high deductibles and exremely limited coverage? ("Safe Auto" for health?) Wouldn’t this proposal simply lead to people buying this "basic" insurance to get the tax break, driving the prices of halfway decent insurance plans even higher?

My second proposal is to help the States that are coming up with innovative ways to cover the uninsured. States that make basic private health insurance available to all their citizens should receive Federal funds to help them provide this coverage to the poor and the sick. I have asked the Secretary of Health and Human Services to work with Congress to take existing Federal funds and use them to create "Affordable Choice" grants. These grants would give our Nation’s Governors more money and more flexibility to get private health insurance to those most in need.

Thinking back on this part of Bush’s speech, this thought struck me: Those most in need do not need private health insurance. What those most in need do need is health care.

There are many other ways that Congress can help. We need to expand Health Savings Accounts … help small businesses through Association Health Plans … reduce costs and medical errors with better information technology … encourage price transparency … and protect good doctors from junk lawsuits by passing medical liability reform. And in all we do, we must remember that the best health care decisions are made not by government and insurance companies, but by patients and their doctors.

I’m all for upgrading the archaic information technology systems in use in the medical field. On the patient side, the reams of paperwork are a major hassle. Every time I’ve seen a new doctor, I’ve had to fill out a brand new set of papers. I don’t imagine it’s any better for the doctors, who must be positively buried in paperwork. And these mountains of paper do lead to error. Not too long ago, my records at one doctor’s office got mixed together with someone else’s. Luckily, the doctor caught on - it wsa pretty obvious that I wasn’t being treated for a stroke. (I was being treated for hay fever.)

And I’m all for price transparency. Getting an itemized bill out of the local hospital is almost impossible (but it’s needed to get reimbursed by pre-tax plans like MoneyPlus). It’s pretty obvious, though, that the hospital simply doesn’t want to you know what you’re being charged for. (We’ve been double-billed several times.) Sigh. Only in America do you go into the hospital for one service, then get a two dozen bills for it afterwards.

Medical liability reform? I might be able to get behind that with some evidence that "junk" malpractice suits really are a major reason health care costs are so high today.

In summary, I’m pretty underwhelmed by Bush’s new health care tax jiggle. Maybe some of y’all can enlighten me on what good is supposed to come of this?

Property Insurance

How much your home property insurance coverage will cost is not the only thing to consider when you’re shopping for insurance.

You need to purchase the right type of home property insurance. You need to identify the proper level of protection your home property insurance can provide. You need to know if there are special provisions included in your home property insurance.

These special provisions will provide coverage for your valuables like jewelry, computer, and other personal belongings. In addition, you might also need additional coverage in your home property insurance against such catastrophes as earthquakes, floods, windstorms, fires, and the like.

Home Property Insurance and Mortgage

Most lending institutions require home property insurance before approving your mortgage application. Lenders will use this as a legal underwriting and guaranty.

Home property insurance has several basic policy types. Below are a few of these home property insurance policies.

HO-1 Home Property Insurance Policy

This type of home property insurance policy provides protection for homeowners. The coverage offered by an HO-1home property insurance policy includes the house and possessions against 11 different perils.

HO-2 Home Property Insurance Policy

HO-2 home property insurance policy is also known as broad homeowners’ policy. This type of home property insurance policy covers the house and its contents against 17 perils. HO-2 home property insurance policy has premium running about 5 per cent to 10 per cent more than an HO-1 policy.

HO-3 Home Property Insurance Policy

Also called special homeowners home property insurance policy, HO-3 home property insurance policy covers all perils except those that were specifically excluded in the contract. The cost for an HO-3 home property insurance policy is 10 per cent to 15 per cent more than an HO-1 policy.

HO-4 Home Property Insurance Policy

This type of home property insurance policy is specifically targeted to rental property owners. Covering 17 stated perils, HO-4 home property insurance policy includes liability coverage but does not insure the dwelling itself.

HO-5 Home Property Insurance Policy

This type of home property insurance policy covers practically all damages except those caused by earthquakes, wars, and floods. HO-5 home property insurance policy is also known as extensive homeowners’ policy.

HO-6 Home Property Insurance Policy

HO-6 home property insurance policy is for owners of co-ops or condominiums. This type of home property insurance policy provides coverage against perils state in the HO-1 policy. The only difference is that HO-6 home property policy only pays for repair costs or actual cash value. Replacement cost may be covered also but it will make the policy costly.

tags: property insurance,property insurance

5 Reasons Why You Really Need Many Auto Insurance Quotes

It is so common that people usually pay too much on car insurance these days. Actually, there are plenty of companies that are gladly to quote you their best car insurance price even they may not be the cheapest one. Therefore, you need to be proactive and try to find as many insurance quotes as possible and get the best deals if you do not want to be charged too much on auto insurance. It is the only way that you can compare different quotes and you need to have a deep auto insurance review. Or else, you can hardly get the best deal. But it is really worth in the long run when considering you can save a big amount on your car insurance premiums or rates.

Apart from that , when it comes to the renewal, you need to compare your current auto policy and coverage amount against the other quotes for making sure that you still have a best deal. In fact, if you have a lot of different quotes to use for an auto insurance comparison it is very important to pay attention on whether you can get the same benefits across different auto insurance companies. If they are not all the same, you can then hardly compare them on a reasonable basis.

Another tip to avoid trying too many companies is to get an insurance broker as they can keep in touch with a lot of different auto insurance providers for you and then give you the best quotes quickly. They can then earn some commission per sale but it should not be affection on the amount that you pay. The main reason behind is when you ask many brokers for a quote, you can then get several quotes from plenty of different insurance companies much faster and easier. You can just simply visit their website and add your details to get the instant quote.

At last, even you can easily get quotes from most of the insurance companies by having your own auto insurance broker, it is still a good idea to try out and do your own research on the cheaper companies directly as they may also have cheaper rates if you buy from them directly and they do need to pay a commission to an insurance broker. Hence, doing a auto insurance comparison is not that hard as you think and you can benefit alot by having the best auto insurance quote for your needs if you ask enough companies.

Buyer Beware: Know Your Title Insurance Regulations News

New York, NY: Low interest rates in the past few years have induced many home owners to refinance their home. Did you know that, when a consumer refinances their home in most states, they are entitled to get discounts on certain fees associated with their mortgage?

For example, when a home is refinanced in Pennsylvania, title insurers may only charge a specific, regulated rate for title insurance. In other words, when the consumer refinances their home in that state, the rate is supposed to be discounted. But many title insurance companies are not discounting their rate, therefore causing the consumer to be overcharged on title fees. This is a violation of the Pennsylvania Law.

Real estate scams abound and the land title industry is one of them.

Unfortunately, not all title agents are created equal. Some lack the professional skills and ethics to act in the best interest of consumers and lenders. Although licensing standards and title insurance is regulated, it still leaves room for fraud.

Chicago Title Insurance Company is alleged to overcharge title insurance, thereby violating state laws. A recent lawsuit claims that Chicago Title is supposed to give a 10-30% discount to people refinancing their home, but charges their full basic rate. The plaintiff is seeking a refund of the amount overcharged by Chicago Title.

Chicago Title is not the only company guilty of overcharging for title insurance. In September 2006, the Lorenzo family of Mill Creek and Catherine Blaylock and Jill Maccinnes of Bellevue filed suit in King County Superior Court against First American Title Insurance Co. and Pacific Northwest Title Co. of Washington.

The suit was filed two days after state Insurance Commissioner Mike Kreidler issued a report that said insurers regularly broke a state cap on inducements to real estate middlemen who could steer buyers their way, driving up policy costs.

(In October, Kreidler reported companies spending thousands of dollars courting real estate agents with food and drinks, tickets to sporting events and trips for golf, skiing and shopping. He said he decided not to seek penalties because of the pervasiveness of the problems and lack of resources in his office. Federal regulations ban title insurance companies from giving anything of value to reward referrals and bar real estate agents and others from receiving anything of value in return for referrals.)

In November 22, 2006, other lawsuits were filed against Commonwealth Land Title Insurance Co. and Chicago Title Insurance Co. and Transnation Title Insurance Co., alleging that the companies violated federal law.

What is Title Insurance?

The purpose of the land title registry is the following:
• To expertly examine titles and provide curative remedies for title issues
• To disclose all material facts (in writing) to interested parties.
• To actively promote fraud prevention in real estate transactions

Basically, title insurance provides protection against any problems that may arise from a property you purchase. Think of title insurance as the opposite of life insurance: it protects against things that have already happened, whereas life insurance protects you against something in the future.

Title Search

This is the process of examining all relevant records to confirm that the seller is in fact the legal owner of the property and that there are no liens or other claims outstanding out of the property. A search should discover any liens attached to the property such as taxes owed, unpaid construction costs and even missing heirs that could lay claim to the house. A search can also turn up easements that allow access to the property by utilities companies, such as power or water. And some searches will go back 50 years.

Usually title insurance is paid by the homeowner's association if you buy a condominium or apartment or co-op.

There are two types of title insurance:

1. Policies for lenders: protects the lender and is usually issued through a bank and required by any lender before issuing a loan.

2. Policies for owners: this policy protects the owner's investment.

If you have recently refinanced your home and title insurance was included as part of your loan, you may have been overcharged for title insurance.

Cheap auto insurance: Fact or fiction

Time and time again motorists in B.C. are regaled with horror stories of private auto insurance rate hikes and reassured they enjoy the lowest premiums thanks to the government run ICBC.

Unfortunately for the B.C. government no matter how many tales they tell a recent study separates fact from fiction about auto insurance in Canada. The report “Myths and Facts about Automobile Insurance in Canada” was prepared by former Canadian Taxpayers Federation (CTF) director Mark Milke for the Insurance Bureau of Canada.

Myth #1: Private sector auto insurance is more costly than government-provided insurance.

Milke’s research reveals that between 2000 and 2005, the average British Columbia premium ranged from the most expensive among the 10 provinces.

The same holds true for Manitoba where the government provides auto insurance.

In Alberta the private sector, not government is in the auto insurance business. And most anecdotal reports shore up the myth that private insurance is more expensive than government. But according to the data, B.C.’s premiums were higher than Alberta in every year between 2000 and 2005 except in 2003 when B.C.’s average premium was $2 less than Alberta’s.

Myth #2: Insurance quotes are the same as premiums paid.

There is a reason why most of the motorists and public at large believe that private auto insurance is more expensive than government provided insurance. Reports and studies on insurance are released without full disclosure or adequate context. Milke notes one such example in his study.

The Consumers’ Association of Canada (CAC) claims to estimate insurance costs in each province and then ranks them. However, the CAC simply averages insurance quotes to come up with its insurance cost figure.

What’s wrong with this approach? It doesn’t measure actual premiums paid it merely averages quotes not insurance costs, as it purports. For those provinces that enjoy private sector competition a broader set of pricing will be available because there is also a broader selection of insurance providers and options. An average of such quotes does not provide any indicator of insurance costs.

By Milke’s calculations, the CAC 2005 report exaggerated Alberta’s average premium by 67.7 per cent and Ontario’s by 80.7 per cent because it used quotes and not the actual premiums paid.

Myth #3: Province to province comparisons are like apples to apples comparisons.

Legal restrictions and regulations in each province affect the cost of providing insurance. Milke’s report also notes that the relative wealth of a population, type of optional coverage purchased, accident rates, demographics all impact the cost of providing auto insurance.

The myth of cheaper government auto insurance is just that, a myth.

Travellers 'planning more trips' in 2007

Britons are planning to increase the number of trips they take this year, according to research from an annual travel insurance provider.

Figures from American Express Insurance Services reveal a three per cent rise in domestic holidays and trips abroad, with breaks taken for leisure abroad increasing by 12 per cent in 2007.

The company recommends that those travelling independently or heading abroad more than once during the year purchase multi trip insurance for a number of benefits.

Joanne Field, marketing manager for the firm, said: "Buying annual insurance is not only cost effective, but it ensures [travellers] are protected for cancellation and curtailment from the moment they book a trip."

She added that annual travel insurance also allows those booking trips to take advantage of last-minute deals with the knowledge they will be protected for their trip.

Earlier this week, IFA Promotion reported that 34 per cent of Britons planned on saving for a specific purchase this year, including a holiday abroad.

New Campaign Aims to Curb Child Obesity

According to recent studies, one in four Utah children are overweight and nearly ten percent are classified as obese. Intermountain Healthcare is trying to curb the epidemic by launching a new public service campaign called "Live."

Intermountain Healthcare Director of Community Health Tamara Lewis helped launch the campaign during an assembly at Parkview Elementary School today (Wednesday). Lewis says two main factors contribute to child obesity, unhealthy eating and a lack of physical activity. She says other campaigns, like those aimed at using seatbelts and quitting smoking, showed great success through reaching children first.

The "Live" campaign will spread its message through advertisements, an interactive website, new education for doctors and more school assemblies.

Intermountain Healthcare

Intermountain Healthcare, formerly known as Intermountain Health Care (IHC), is a not-for-profit healthcare system and is the largest health care provider in the Intermountain West. Intermountain Healthcare provides hospital and other medical services in Utah, and Idaho. Intermountain Healthcare is headquartered in Salt Lake City, Utah, and currently employs over 25,000 people.


[edit] History

Intermountain Healthcare was founded on April 1, 1975. Prior to Intermountain, The Church of Jesus Christ of Latter-day Saints operated most of the hospitals in the region. The church decided in 1974 it would no longer operate the hospitals and decided it would donate its fifteen hospitals as a system to the Intermountain community. The church did this on the condition that a not-for-profit organization would be formed to operate the hospitals on behalf of the communities they served.

At its inception, board members of Intermountain Healthcare were unpaid volunteers. Raising funds was done through the bond market and within just a few years, several additional hospitals asked to join the IHC organization.

In 1982, Intermountain Healthcare began providing non-hospital services such as clinics, and home healthcare. Four additional hospitals were added from 1982 to 1990. In 1991, IHC was recipient of The Healthcare Forum/Witt award.

In the mid 1990's, Intermountain Health Care restructured into three major groups: hospitals, physicians, and IHC health plans.

In 2000, 2002, 2003, 2004 and 2005, Intermountain Healthcare was ranked No. 1 (among nearly 600 evaluated) integrated healthcare systems in the U.S. by Modern Healthcare magazine and the Verispan research firm. Intermountain is the only organization to have been ranked No. 1 five times.

In 2002, Intermountain Health Care served as the Medical Services Provider for the 2002 Winter Olympics in Salt Lake City.

In November 2005, Intermountain Health Care implemented a new logo and slightly changed the spelling of its name from Intermountain Health Care to Intermountain Healthcare. The purpose was to reflect today's more common spelling of "healthcare". Up until this time, Intermountain was well known as "IHC".

Intermountain has, on more than one occasion, been subject to intense review by the Utah House of Representatives because of their tax-free status and overwhelming market share. This was intensified for a brief period when Intermountain Healthcare required patients to agree to arbitration, essentially waiving the patient's right to sue—a practice that has been abandoned under strong pressure of public opinion. Proposals to break apart the health plans and health care components of the company into separate entities have been fruitless, but there is continual debate on the subject.

Today, Intermountain Healthcare operates 26 hospitals and health care centers in Utah, and 1 hospital in Idaho. In total, Intermountain Healthcare operates over 150 healthcare facilities.

[edit] Hospitals

As of 2005, Intermountain Healthcare operates 20 hospitals in Utah and Idaho.

* Alta View Hospital - Sandy, Utah - 80 beds
* American Fork Hospital - American Fork, Utah - 76 beds
* Bear River Valley Hospital - Tremonton, Utah - 20 beds
* Cassia Regional Medical Center - Burley, Idaho - 40 beds
* Cottonwood Hospital - Murray, Utah - 227 beds
* Delta Community Medical Center - Delta, Utah - 20 beds
* Dixie Regional Medical Center - St. George, Utah - 196 beds
* Fillmore Community Medical Center - Fillmore, Utah - 20 beds
* Garfield Memorial Hospital - Panguitch, Utah - 14 beds
* Heber Valley Medical Center - Heber, Utah - 20 beds
* LDS Hospital - Salt Lake City, Utah - 520 beds - Level I trauma center, currently the largest hospital in the Intermountain Region.
* Logan Regional Hospital - Logan, Utah - 148 beds - Level III trauma center
* McKay-Dee Hospital Center - Ogden, Utah - 317 beds - Level II trauma center
* Orem Community Hospital - Orem, Utah - 20 beds
* Primary Children's Medical Center - Salt Lake City, Utah - 232 beds - Level I trauma center, pediatric center serving Utah, Idaho, Montana, Nevada, and Wyoming.
* Sanpete Valley Hospital - Mount Pleasant, Utah - 20 beds
* Sevier Valley Hospital - Richfield, Utah - 42 beds
* The Orothopedic Specialty Hospital (TOSH) - Murray, Utah - 14 beds
* Utah Valley Regional Medical Center - Provo, Utah - 395 beds - Level II trauma center
* Valley View Medical Center - Cedar City, Utah - 42 beds

Intermountain Healthcare is also currently building two new hospitals. Intermountain Medical Center (IMC), currently under construction, will be located on a 100 acre site in the center of the Salt Lake Valley in Murray, Utah. It will be the flagship of IHC and will be the largest medical campus in the Intermountain West. It will completely replace the Cottonwood Hospital facility, which will be demolished upon IMC's completion in 2007. It will feature a Level I trauma center, a 15-story inpatient, critical care-Level I trauma hospital, a heart and lung hospital for advanced cardiac and respiratory care, women's and newborn hospital, cancer treatment hospital, medical education and research facilities, and physician offices. It will also be the home base for IHC's Life Flight. The entire project is estimated at approximately $400 million.

Summit County Hospital will be located in Park City, Utah. It will be a 100,000 square foot facility with 26 beds and will also feature a women's center, surgical center, orthopedic center, and emergency center. The entire project is estimated at approximately $50-60 million and is expected to be completed in 2007.

[edit] Life Flight

Life Flight, Intermountain Healthcare's medevac unit, consists of four helicopters and three fixed wing aircraft. Life Flight provides emergency air transportation as well as non emergency transport for victims particularly in remote areas, as well as emergency scenes where time is critical. In addition to transport, Life Flight also provides search-and-rescue to the region.

IHC currently operates two Agusta A109K2 helicopters and two Bell 407's. The helicopters are based at McKay-Dee Hospital in Ogden, Utah Valley Regional Medical Center in Provo, LDS Hospital in Salt Lake City, and Primary Children's Medical Center in Salt Lake City.

Life Flight also operates three Beechcraft King Air B200's. Two are based at Salt Lake City International Airport, and one is based at St. George Municipal Airport.

Insurance -a sheild of protection to your health and property

Insurance began simultaneously with the emmergence of human
society.Earlier insurance was in the form of helping each
other in times of crisis or danger which did not deal with
the transaction of money.Insurance in modern sense means
management of reducing risk of potential financial loss which
includes dealing with money.

There are four general criteria that an insurance company follow
while insuring to avoid financial jeopardy of the company itself.
The four general criteria are 1.Losses must be uncertain 2. The
losses have to be accidental or unintentional 3.The losses must
be measurable and identifiable 4.The losses must be non-catastrophic.

There are different types of insurance for any kind of quantifiable
risk. Life , health, property,etc can be insured provided it fits
according to the rules of the insurance company.There are two types
of insurance company 1.Life Insurance company 2.General Insurance
company.

One can make one's life more secure by opting for Life Insurance
policy.This gives peace to the mind of the person who has a family
to be looked after that after his death his family will not be
having any financial problem .The policy is based on the simple
concept in which the insurer guarantees to pay the policy benefits
in a given time and if the person survives till the end of the
policy's term no benefit will be provided.there are several other
companies which offer whole of life policies which guarantee to
pay the sum assured whenever the insured person dies.The Term
Insurance is one of the best policy one should go for beca-use
it pays benefit only if the person expires before the expiry of
insurance .While choosing Life Insurance policy one should ensure
that the policy is suitable for his /her particular circumstances.
He/she must also be sure that the insurer is authorised by FSA
(Financial Services Authority).Before taking any decision one
should have a comprehesive knowledge of the life insurance market.

Aegon, Sony Sell Life Insurance in Japan

THE HAGUE, Netherlands — Hague-based insurer Aegon and Sony Life Insurance said Thursday they will start a life insurance company in Japan in an equal joint venture.

The company will develop annuity products that will be distributed through Sony Corp.'s Sony Life Insurance Co. Ltd.'s Lifeplanner channel as well as through banks and other financial institutions, the companies said in a statement.

Financial details of the transaction were not disclosed.

"The Japanese market presents a significant opportunity for companies that are able to develop innovative products and services that can effectively respond to the developing need," Aegon NV Chief Executive Donald Shepard said.

The annuity market in Japan has been rapidly growing. Variable annuity assets totaled more than $85 billion at the end of March 2006, and sales were $17 billion in the first half of fiscal 2006, the company said.

Farmers Insurance Companies Introduce New Annual Auto Insurance Policy in Minnesota

Farmers Insurance Group of Companies, including Illinois Farmers Insurance Company, and Mid-Century Insurance Company, have good news for their over 344,000 insurance policyholders and all new customers in Minnesota.

Beginning January 29, 2007, the companies will offer a rare annual auto insurance policy that will allow Farmers auto insurance policyholders and new customers to choose a full-year auto policy term option, or the current six-month policy term option now offered.

“The annual auto policy provides the same wide array of quality coverages and discounts available on the six-month policy, and does so at a price that is ‘locked’ in for a full year,” explained Bill Martin, Vice President of Auto Product Management, Farmers Insurance Group.

“We are always looking for innovative ways to help our customers save time and manage their budgets, two very important commodities in today’s busy world. By choosing the annual auto policy, our customers will save a lot of time and paperwork by eliminating the need to renew their auto policies every six months,” Martin said.

“Most auto insurance policies renew every six months. Now, with Farmers’ annual auto policy, policyholders can lock in a low price for a full 12 months, so they know exactly what their coverage will cost for the whole year,” Martin added. “Existing Farmers auto policyholders may choose to take the one-year policy at renewal time, or remain with a six-month policy.”

The 470 Farmers insurance agents in Minnesota will be contacting their customers soon to explain the benefits of the annual auto policy.

Farmers Insurance Group of Companies® is the nation’s third-largest Personal Lines Property & Casualty insurance group. Headquartered in Los Angeles and doing business in 41 states, the insurers comprising the Farmers Insurance Group of Companies provide Homeowners, Auto, Business, Life insurance and financial services to more than 10 million households through 17,000 exclusive and independent agents and district managers. For more information about Farmers, visit our Web site at www.farmers.com.

The Four Chief Types of Life Insurance

Life insurance, at its core, is a means to protect the financial security of one’s survivors. It is generally thought of as a way to provide income replacement for a wage earner’s survivors in the event of death. Life insurance is purchased from an insurer by making regular payments of premiums during the life of the insured. Upon the death of the insured, designated beneficiaries receive a financial benefit.

Although all life insurance policies maintain those consistent characteristics, there are different means to achieving the same end. Four distinct types of life insurance have been developed and are in common usage.

Term Life Insurance

Term life insurance is probably the most basic form of life insurance. Term insurance is purchased for a specific period of time (the term). The length of the term can vary considerably. There are term policies that are effective for well over twenty years, whereas some only involve a one-year term. A regular premium is paid throughout the term. If the insured dies at any point during the term, the designated beneficiary receives the death benefit. If one survives the term, however, there is no pay out and the policy simply ends.

Whole Life Insurance

Whole life insurance has a long history and maintains great popularity. The cost of premiums is guaranteed for the entire time the policy in place. As premiums are paid, the insured accumulates a cash value for the policy, with the insurer determining the interest rate applied to that cash value. One may either “cash out” their whole life policy, or maintain it so that benefits are paid to survivors upon the policyholder’s death. Whole life insurance policies were long “the norm” in the insurance industry.

Universal Life Insurance

Universal Life Insurance is considered a more flexible approach to life insurance. The required regular premium amount can vary as long as the policy has a cash value in excess of the policy’s costs. The insured can alter the policy’s future pay out while the policy remains in force, making it a flexible insurance solution for those who may have more complicated or rapidly-changing needs than can be addressed with term or whole life solutions.

Variable Universal Life Insurance

Variable Universal Life Insurance takes the flexibility of universal life coverage and adds to it by providing investment choices. The policy’s cash value is not based simply on an interest rate determined by the insurer. Instead, the policy’s value is based upon the performance of various investments. The insured allocates his premiums among a series of investment options with a variable universal life insurance policy.

Although all insurance policies do share common characteristics, the four different types of insurance policies have some marked differences. Each type of insurance policy has advantages and limitations. For some, a simple term policy will more than suffice to meet their life insurance needs. Others may benefit considerably from a more full-featured insurance policy that includes an investment component and the ability to alter the nature of benefits and the premium.

Mashup Groups launches web 2.0 Mashup.com !

Mashup Groups has launched the directory of web 2.0 Mashup.com that contains more detailed information about their product, which help the internet community. The new portal webpage will feature graphic icons that easily navigate to various section of division of applications. Once the reader clicks on the icon, the section opens to reveal examples of product from that category

The website contains the wide range of applications includes Web 2.0, Hybrid Application, Map, Map Area, Map Physical, RSS, Feed, API, Letter, Character, Number, Combination. The most elegant of application designs keeping the accent always on comfort, wearability and affordability by understanding the ever changing scenario of the software world. The software collection range from online to offline in various operating systems, styles, designs and combination.

The honour adds that “ the collection of software driven by the latest market trends and focussing precisely on the customer requirements to ensure the highest quality products are delivered to our client for their total satisfaction”. We offers expresses deliveries in major cities across the world and abroad.

The CEO of Mashup.com Mr.John Doe said “to make the entire web useful to each individual by providing them with the control they need to receive the results they desire, our website offers many advanced features that user can easily modify until they find the information they are looking for”. We believe that the internet is a powerful medium even while seeking software and applications.

For more information please visit our website http://www.Mashup.com

Tag: Mashup, Mashups, Web 2.0, Hybrid Application, Goggle Map, GoogleMaps, Map Area, Map Physical, RSS, Feed, API, Letter, Character, Number, Combination

test

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Global Warming: Adapt or Prevent?

NCPA Study Shows Living With globalwarming awareness2007 Is Less Costly, More Beneficial

Trying to stop global warming imposes huge costs and provides very few benefits, according to a study authored by a Bush Administration analyst and released today by the National Center for Policy Analysis (NCPA).

“Living with global warming costs a fraction of what it would take to stop it,” said Indur Goklany, author of the NCPA study. “The costs of trying to prevent global warming far exceed any benefits of doing so for the foreseeable future.”

The NCPA study compared the costs and benefits of adapting to global climate change with strategies that prevent global warming, such as the Kyoto Protocol, and found that problems most often projected to dramatically worsen as a result of global warming are more effectively and economically lowered by adapting to climate change rather than trying to prevent it. For example:

* Meeting Kyoto emission targets would reduce fatalities from malaria by one-half of one percent, but investing an additional $1.5 billion annually for treatment would cut the death toll in half.
* Meeting Kyoto targets would reduce the population at risk for hunger by only 2 percent by 2085, but investing an additional $5 billion to solve agricultural problems in developing countries would reduce hunger by 50 percent beginning today.
* The population at risk for coastal flooding would decline by meeting Kyoto emission standards, but at a cost of $165 billion a year. By contrast, investing an additional $1 billion annually in preventive measures would address the problem just as well, if not more effectively.

Moreover, adapting to climate change would enhance both economic development and human capital and increase the capacity for technological innovation in developing countries.

“By confronting problems head on we can save lives now, especially in developing countries,” Goklany added. “Preventive strategies, like the Kyoto Protocol, will by default condemn thousands to poverty, disease and death.”

Tag: globalwarming awareness2007, global warming, causes, effects, climate change, articles, bush global warming, carbon dioxide, consequences, definition

Losing Weight Takes Effort

Nothing is more frustrating than to see that you are gaining weight again.

Do you think weight loss is impossible for you? Are you tired due to the lack of reliable information? How about a new Weight loss newsletter, providing you with all the best weight loss and diet information that you need to make your next weight loss campaign a success.

Weight Loss

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Insurance industry under more scrutiny

U.S. District Court Judge L.T. Senter Jr.'s opinion that State Farm Fire & Casualty Co. failed to investigate a policyholder's claim has sparked another congressional inquiry into the insurance industry's response to Hurricane Katrina.

U.S. Reps. Gene Taylor and Bennie Thompson, D-Miss., have supplied ammunition for hearings planned by U.S. Rep. Barney Frank, D-Mass., and chairman of the House Financial Services Committee.

Taylor's ultimate goals are an all-perils policy that would eliminate the need for separate coverage for wind and water damage, removal of the insurance industry's exemption from anti-trust laws and federal rather than state oversight of the industry.

Spokesmen for industry-sponsored organizations maintain insurers have paid what is owed under their policies and did not collect premiums to cover damage from Katrina's unprecedented surge.

Joseph Annotti, a spokesman for the lobbying group Property and Casualty Insurers of America, said the industry handled more than 90 percent of claims promptly and fairly.

The inquiry is not unexpected, he said, given that both Taylor and Republican Sen. Trent Lott have sued State Farm Fire and Casualty Co. for denying their claims. Both lost their waterfront homes, Taylor's in Bay St. Louis, Lott's in Pascagoula.

But they've also heard insurance horror stories from thousands of constituents. In fact, Taylor is collecting such stories for the hearings.

At issue is whether insurance companies took advantage of Katrina's massive surge, writing off what could have been wind damage their policies covered to the National Flood Insurance Program. Property owners without flood insurance, along with many who relied on their homeowner's policies to help cover hurricane losses, have been left without money to rebuild.

Senter ruled last week that State Farm failed to prove its water exclusion applied to the slab Katrina left on the property of Biloxians Norman and Genevieve Broussard. State Farm attorneys conceded during the trial that wind could have damaged the roof before the surge arrived.

Even so, State Farm denied the homeowner's claim, leading a jury to award the Biloxi policyholders $2.5 million in punitive damages after Senter's ruling. State Farm representatives have said the decision might be appealed.

Taylor has forwarded detailed allegations against insurers to Frank, whose Subcommittee on Oversight and Investigations is expected to explore the issues. Frank's communications director, Steven W. Adamske, said the subcommittee will hold hearings, but hesitated to call the proceedings an investigation.

"The goal is to make sure that the insurance system is working as it was intended and that people are able to rebuild their lives," Adamske said Thursday.

Taylor also asked that Frank hold hearings on "excessive premiums increases, market withdrawals and other actions to force states to make concessions or to assume more coastal risks."

The Homeland Security Department also has been directed to investigate whether insurance companies, in adjusting flood claims for the government, improperly wrote off Katrina damage to the Flood Insurance Program. Thompson chairs the House Homeland Security Committee.

NFIP Wind Private
pool insurers
Hancock $130,000 $46,000 $25,000
Harrison $157,500 $37,500 $25,000
Jackson $127,500 $22,500 $14,000

Katrina claims

U.S. Rep. Gene Taylor's office has compiled estimates showing the contrast in average Katrina claims payments to Coast property owners as of June 2:

Aon to add 80 jobs in Glenview

Aon Corp. said Thursday that it's consolidating service support activities for its U.S. retail brokerage operation into a Glenview facility. The move will create about 80 new jobs for Glenview, which currently has about 800 Aon workers.

As part of the restructuring, Aon is moving more routine administrative functions to Genpact, a business process outsourcing firm.

As a result, the Chicago-based insurance brokerage and consulting firm will close service centers in New York and Houston. Also, some accounting support activities in Owings Mills, Md., will also move to Genpact.

In total, more than 500 Aon workers will lose their jobs this year because of the restructuring. About 330 positions will be cut in Houston, 175 in New York, and 50 in Owings Mills, the company said.

COVERING WEDDINGS: Aon sees a business opportunity in the bridezillas of the world.

It recently announced that its Affinity Insurance Services Inc. unit has acquired WedSafe Inc., a provider of wedding and private event insurance. Terms of the deal weren't disclosed.

Citing U.S. wedding costs that have risen to an average of $25,000, Aon is betting that more couples will become receptive to buying cancellation insurance to guard against the unexpected, whether it's a wedding postponed because of weather or the unexpected illness of the bride's father.

Some venues also require the couple to buy event liability insurance, in case the guests get too festive and do damage to the reception hall, or someone takes a spill on the dance floor and ends up injured.

"Everyone wants their special day to be perfect, but problems can occur, and wedding insurance offers an affordable solution," Affinity President Bill Vit said in a statement.

Coverage, however, doesn't include runaway brides.

"The cancellation or postponement of the wedding and/or reception due to circumstances within the control of the insured, including change of heart, is not covered," WedSafe's Web site says.

Launched online in 2002, WedSafe sells cancellation policies starting at $185. Liability insurance can be bought for a $195 premium.

Proposal: Lower insurance rates but bigger risks

Lawmakers have proposed offering homeowners a deal: Pay less for hurricane insurance -- but accept a higher risk.

TALLAHASSEE - In a gamble to lower premiums for hurricane insurance, Florida legislators are ready to let homeowners take bigger risks: Buy coverage for less than a home's value, accept steep deductibles -- or even go without windstorm insurance at all.

Homeowners who accept the risks would bet that damage to their home from a storm wouldn't cripple them financially, while saving themselves thousands of dollars in premiums. In some extreme cases, the proposals would allow Floridians in danger of losing their homes because of the steep rise in premiums to keep them long enough to weather the next storm season.

The idea is to end the one-size-fits all insurance policies that homeowners now get and let people reject ''what they don't want and they don't need,'' said Sen. Bill Posey, a Rockledge Republican who heads the Senate Insurance Committee.

The proposals will be taken up in a seven-day special lawmaking session on insurance that begins today. The goal of the session is to provide substantial reductions in property insurance bills for Florida homeowners, who have seen double- and triple-digit increases for the past three years.

The Senate plan goes further than the House in offering homeowners options for reducing premiums, though both sides have bipartisan agreement that more choices are needed. But one group has already sent up flares of alarm: The banking industry is warning lawmakers that few of the proposals will be realistic for homeowners who have a mortgage. Other critics question whether the savings will be worth the risk.

SOME OF THE OPTIONS

Among the options on the table:

• No windstorm coverage. The Senate wants to allow homeowners to self-insure by writing a letter to their insurance companies saying they want to go without any windstorm coverage. The letter must demonstrate that the homeowner understands that any wind-related hurricane damage will be paid for by the homeowner.

The banking industry appears to be the biggest opponent to this proposal, saying it could make it more difficult for some to obtain mortgages and may threaten a healthy mortgage market.

In a letter to state insurance regulators, a top official with Fannie Mae, the national company that buys mortgages from banks, said it is concerned that homeowners who choose this option would not be able to foot the bill to repair their homes. It would not be ''a prudent business practice for Fannie Mae to invest in mortgages secured by homes that are not covered by windstorm insurance,'' wrote Ezzard Alves, senior business manager for the company's family mortgage business.

Bankers also warn that while rejecting windstorm protection could be attractive to many homeowners, if people fail to make repairs after a storm because they have no insurance, the value of their homes and the property values of whole neighborhoods could be affected.

• Allow homeowners to buy coverage to match the amount remaining to be paid off on their mortgage. The House plan would offer this option to owners whose homes are valued at $500,000 or more. This is the most modest of all the proposals and is aimed at helping people who presumably have more equity in their homes or more savings, and are prepared to take the risk.

The Senate proposal places no limits on the value of a home but allows all homeowners to obtain a deductible equivalent to 50 percent of the equity on a home. For example, a homeowner who has a home now insured for $300,000, of which $150,000 is equity, could buy a policy with a $75,000 deductible.

Banks oppose both options, saying a home must be insured for at least 70 percent of its value for the bank to sell the mortgage on the secondary market.

''We can't make loans to people that elect to have that type of insurance,'' said Scott Jenkins, vice president for governmental affairs at the Florida Bankers Association. ``There might be a bank here or there that might be able to use that policy, but it wouldn't be a large amount of banks and it would most likely be seasoned customers who have a very large portfolio.''

• Exclude coverage for contents. The Senate proposes allowing homeowners to insure only the structure itself, not furnishings, electronics or other contents. This option appears to have little opposition, since bankers are only interested that the property is insured.

Democrats have not rejected the proposals that allow people to self-insure and go without windstorm coverage, but they insist they don't want those to be the only options available .

''There's nothing wrong with giving people a choice to under insure, but they should also have the option of affordable insurance,'' said House Democratic Leader Dan Gelber of Miami Beach. ``It should not be a poison they have to take as a last resort.''

SENATOR'S HOPE

Senate Democratic Leader Steve Geller of Hallandale Beach said he hopes the other proposals aimed at lowering insurance premiums work so homeowners ``won't have to cancel their windstorm coverage.''

He acknowledged, though, that drastic circumstances call for drastic action.

''People can't afford to live in this state anymore,'' he said.

House leaders also are raising questions about whether they are ready to go as far as the Senate in allowing homeowners to bear more risk.

''Just because you're taking half the coverage doesn't mean it's going to be half the premium,'' warned Rep. Ellyn Bogdanoff, a Fort Lauderdale Republican.

Insurance.com Deploys Chordiant Customer Experience Solutions to Increase Competitive Advantage

Delivering Real-Time Customer Intelligence, Chordiant Solutions Help Boost Sales Conversion Rates

CUPERTINO, CA -- Chordiant Software, Inc. (NASDAQ: CHRD), the leading provider of Customer Experience (Cx™) software and services, today announced that Insurance.com, the nation's largest online auto insurance agency, has successfully deployed Chordiant's solutions to help sustain and build its competitive advantage. Insurance.com has implemented Chordiant's Decision Management, Marketing Director, and Leads Management solutions to enable the company to deliver real-time customer intelligence to call center and online agents who can in turn provide more relevant content and advice to consumers to help boost sales conversion rates.

Insurance.com selected Chordiant solutions because of their unique, centralized adaptive and predictive decisioning capabilities that deliver real-time customer intelligence to every channel. Combined with a services-oriented architecture and a standards-based, model-driven development framework, Chordiant solutions also offer rapid time-to-implementation and the ability to quickly adapt business processes to market changes.

With Chordiant software now in production, Insurance.com can present personalized banner offers while users are on the site entering data. Also, contextual marketing campaigns can be dynamically generated -- enabling Insurance.com to react much faster to competitive pressures. Chordiant's solutions form the foundation of Insurance.com's "Trilogy" initiative, which encompasses:

-- Managing customer experiences with Chordiant Decision Management. The
software analyzes customer profiles and chooses three pieces of web content
out of a library of 300 that would be of interest to that customer.
Previously this information was hard coded. Today, Insurance.com has moved
from static to dynamic, customized content that is most relevant to each
customer.

-- Delivering targeted e-mail marketing campaigns using Chordiant
Marketing Director. Chordiant software is now helping business managers
make informed marketing decisions. Chordiant Marketing Director is
integrated with data about potential and existing customers, giving
Insurance.com the capability to deliver targeted marketing campaigns based
on specific customer segments. This will ensure that the right message is
delivered to the right customer at the right time.

-- More effectively respond to large volumes of sales leads with
Chordiant Leads Management. Insurance.com offers and sells approximately
12,000 insurance policies per month. Using Chordiant Leads Management,
Insurance.com is now able to expedite lead distribution and assignment to
sales agents, resulting in quicker response times.


"We are extremely pleased with Chordiant's technology and the benefits it delivers," said Insurance.com CEO Dave Roush. "Chordiant is the foundation for our Trilogy project and with these powerful applications in place, we can now deliver added value to our customers and maximize new opportunities for continued growth and success."

"Insurance.com has experienced tremendous growth based on its commitment to meeting customer needs," said Steven R. Springsteel, chairman, CEO and president of Chordiant. "We pride ourselves on enabling companies to provide the best customer experiences possible, and we are pleased that a company so committed to customer satisfaction has chosen to deploy our solutions."

About Insurance.com

Insurance.com (www.insurance.com), based in Solon, Ohio, is owned and operated by Insurance.com, Inc., a ComparisonMarket Company. Insurance.com enables consumers to instantly compare and buy competitive auto insurance quotes (www.insurance.com/auto.aspx) directly from more than a dozen leading insurance companies. When ready to purchase, users have the option of completing the transaction online or talking directly to an unbiased licensed agent. Other products include life, health and home insurance as well as travel, dental and pet health insurance.

In addition to Insurance.com, the company provides private labeled auto insurance solutions to financial institutions, affinity groups and online marketplaces to offer their customers real choice and savings opportunities on auto insurance.

About Chordiant Software, Inc.

Chordiant helps leading global brands such as HSBC, Barclay's, CIBC and Capital One deliver the best possible customer experience. Unlike traditional business applications, Chordiant Customer Experience (Cx) solutions blend insight with predictive desktop decisioning to uniquely understand the customer's behavior. This deeper understanding cultivates a lasting, one-to-one relationship that aligns the most appropriate value proposition to each consumer. With Chordiant Cx solutions, customer loyalty, operational productivity and profitability reach new levels of return. For more information, visit Chordiant at www.chordiant.com.

Safe Harbor Statement

This news release includes "forward-looking statements" that are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. Forward-looking statements in this release are generally identified by words, such as "believes," "anticipates," "plans," "expects," "will," "would," "guidance," "projects" and similar expressions which are intended to identify forward-looking statements. There can be no assurance that Chordiant's Decision Management, Marketing Director, and Leads Management products will be successfully adopted by its customers. There are a number of important factors that could cause the results of Chordiant to differ materially from those indicated by these forward-looking statements. Other risks relating to Chordiant's products are detailed under "Risk Factors" in Chordiant's Annual Report on Form 10-K for the fiscal year ended September 30, 2006, and Chordiant's Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2005, each as filed with the Securities and Exchange Commission. These filings are available on a Web site maintained by the Securities and Exchange Commission at http://www.sec.gov. Chordiant does not undertake an obligation to update forward-looking or other statements in this release.

Chordiant and the Chordiant logo are registered trademarks of Chordiant Software, Inc. The Customer Experience Company and Cx are trademarks of Chordiant Software, Inc. All other trademarks and registered trademarks are the properties of their respective owners.

Congress tackling insurance crisis, too

With the Florida Legislature starting its special session on property insurance rates today, national lawmakers say they, too, are preparing to take on the issue.

Less a month into the new Congress, two members have proposed legislation creating a national catastrophe fund to handle future natural disasters, and another member from hurricane-ravaged Mississippi has called for formal investigations into rising premiums.

In Sarasota on Monday, U.S. Rep. Ginny Brown-Waite, R-Crystal River, said she's happy to see the Florida Legislature taking on the issue and proposing rate reductions.

"But at the federal level, Congress has a role to play, as well," said Brown-Waite, who is one of the members to reintroduce legislation to create a national catastrophe fund.

U.S. Rep. Vern Buchanan, R-Longboat Key, joined Brown-Waite at the news conference in Sarasota. Buchanan said rising insurance rates are by far the biggest issue he heard during his campaign for Congress.

So far, Florida's delegation has hit a series of brick walls trying to promote catastrophe fund legislation in the past. U.S. Sen. Bill Nelson, D-Fla., said in a previous interview that the trouble is convincing senators from Midwestern states that tax dollars or insurance premiums from their states aren't subsidizing Florida.

The catastrophe fund proposed by Brown-Waite would allow insurance companies to invest pretax money from premiums into a reserve fund that would then be used to help pay claims in the event of a major natural disaster. Brown-Waite contends that the reserve fund would make sure insurance companies could pay claims, thus stabilizing the insurance market.

The lingering effects from Hurricane Katrina throughout the Gulf Coast may be key in helping lawmakers lobby other members of Congress. U.S. Rep. Gene Taylor, D-Miss., has become one of the leading voices in Congress on the topic. Earlier this month, Taylor sent a letter to House leaders calling for investigations into what he called "heavy-handed" insurance industry practices and promised to file legislation to eliminate anti-trust exemptions that the insurance industry has benefited from.

Insurance advertising 'can be misleading'

Claims about potential savings made by insurance companies in advertisements could be misleading to consumers, the Financial Services Authority (FSA) warns.

Having undertaken a review of advertisements from 57 firms which sell insurance, the FSA found over half of motor insurance commercials made savings claims that were "unclear" or "misleading".

Additionally, the organisation has voiced its concerns over a quarter of advertisements made by home insurance providers.

Commenting on the problem, Vernon Everitt, retail themes director at the FSA, says that advertising is a "major influence" on the decisions people take when choosing insurance cover.

"So it must be clear, fair and not misleading, leaving people with a balanced picture of what's on offer," he states.

The FSA plans to undertake a further review in three months to evaluate the need for additional regulations.

Following the publication of the Office of Fair Trading's guidance on advertising last year, Christine Wade, director of consumer regulation enforcement at the organisation, said retailers should not mislead consumers by using "artificial" previous prices when promoting discounts.

Online Health Insurance

Looking for and/or buying a health insurance plan for you or your family is easier than ever now due to the Internet. You can find tons of site willing to dish out information and give you quotes on their best plans. Most companies have crazy slogans and sites filled with mumbo-jumbo to entice you to buy. Well, purchasing health insurance is not like ordering a new book online, it takes a lot of research and digging to make sure that what you are getting is legitimate and what you truly want. Remember to find a plan you will have to divulge very personal information to cyber space and have no idea who might be taking this information on the other side. You must make sure you know that this company is real and reputable and that any information sent is sent on a secure site so no third-party can get a hold of it. So, here on some tips for playing it safe and shopping smart with your computer.

Make sure you shop with a licensed agent only or the company directly. Don’t fall for some unknown company because it swears to give you a plan at 75% cheaper than any other company. Making a connection with selection and assistance is extremely important. There are tons of insurance companies that sell their policies directly to individuals as well through agents. Don’t limit your self to a single company; you will limit your options. Make sure you get several quotes from several different companies and agents. This will enable you to contrast and compare the information you receive and make the right decision for you based on what you have in front of you. You will also get to see what each plan has for benefits and what the price range is, you always want to get more for your money.

A legally licensed agent is able to sell plans from many different companies and is a good source of information. They can offer personal advice and assistance in helping you find the best policy and advocate on your behalf to get it approved faster. There are plenty of agents to chose from for help. Some work individually with you or you could have a small team that work to find a plan for you based on the criteria given. Licensed agents must follow strict guidelines set by the companies they represent the state department of insurance. Buying a policy though an agent doesn’t cost any more than right with the company itself. You just a more personal touch and are more likely to get all your questions and concerns answered. Be sure to get access to any online agents license number so you can make sure they are legitimate.

Make sure they have quality phone support in case you need to call agent. Even if you think you will never need it, make sure you have the number where you can get in touch with a live person if you get in a bind. No reputable agent will refuse to give out his or her number or put it in the fine print, that is a red flag. Not to mention bad business. They might not have it on their home page but it should be one of the choices to choose from in the contact section. Many people feel more secure talking directly to their agent on the phone while others would prefer the net. Make sure this agent will be available for you after your purchase has been made as well as helping you shop. An agent who is courteous, helpful, and easy to reach is a good sign that the company is a quality health insurance partner.

Look for seals of approval or quality ratings on their web page. Most reputable agents are proud and willing to share their approvals and high ratings to their prospective clients and consumers. Look for logos from the Better Business Bureau, TRUSTe, or A.M.; these will indicate that you have found a good agent. Also run the company or agents name through the Better Business Bureau Online database. It will show you any thing that comes up bad or good about this person or company that has been reported to them. The agent should always have the approval of an Internet privacy protection organization like TRUSTe, to know you are dealing with a person who will protect your right to privacy and have a secure site.

Humana Hits Millions Of Seniors With Drug Cost Hike

The more than two million senior citizens nationwide who signed up last year for Humana Inc.'s least expensive Medicare prescription drug plan face average premium increases of 60 percent -- and in seven states, increases of 466 percent -- starting tomorrow. The higher prices will affect about 50,000 seniors in Massachusetts, where premiums are going up by 130 percent, from $7.32 to $16.90 a month.

Medicare added the prescription drug benefit in 2006, and in most states dozens of drug plans with varying coverage are available through insurance companies. Healthcare advocates say Humana kept its prices low in 2006 to gain market share. The strategy may prove lucrative, they say, because many seniors spent considerable time researching and selecting their drug insurance and were unlikely to switch plans for 2007, despite increased premiums.

The roughly 3.5 million members in Humana's three prescription drug plans nationwide were notified by mail of the price changes by Oct. 31. Enrollment for 2007 Medicare drug benefit, called Part D, ends today.

"You have to state the obvious," said David Shove, a stock analyst with Prudential Equity Group in New York. "You sell something cheaply and get a lot of customers, and then you raise the price to improve the profitability."

Shove said the start-up of the Medicare prescription drug benefit "was a once-in-a-lifetime opportunity" for Humana to attract new customers.

Steve Findlay, a healthcare analyst with Consumers Union, the publisher of Consumer Reports, called Humana's price increases a "bait and switch" tactic.

"That's not an acceptable inflationary increase in prices," he said. "That's sucker them in and you just start raising the prices."

But a Humana spokesman, Chris Curran, blamed most of the price hike on a subsidy formula used by the Centers for Medicare and Medicaid Services, or CMS, which oversees the drug benefit. Insurance companies seeking to sell insurance under Medicare Part D submit bids to CMS and the agency uses the bids to calculate the subsidy each company will receive to help offset the cost of providing coverage. Insurers take the subsidies into account when setting premium rates.

Paul Spitalnik, a CMS actuary, disputed Humana's contention that the subsidy formula was the deciding factor in setting prices. "If a plan wanted to have a lower-priced competitive product, they needed to have a lower bid than they did for 2006 plans," Spitalnik said.

Dr. Scott Latimer, president of Humana for northern and central Florida, said that in addition to the CMS formula, price increases were also the result of higher drug costs and greater-than-expected usage by beneficiaries.

But profits may also figure heavily into the premium hikes. In presentations to Wall Street, Humana said it planned to raise its profit margin on Medicare drug plans and Medicare Advantage plans from 2.5 to 3.5 percent in 2006 to 4 to 5 percent in 2007.

Even though premiums are 130 percent higher in Massachusetts, Humana's Standard plan is still the state's second-lowest-priced Medicare drug insurance. Nationwide, Humana premiums in 2006 were the least expensive in 46 states, and will remain the cheapest in 38 states in 2007. Hardest hit are seven Midwestern and Western states, where monthly payments are going up 466 percent, from $1.87 to $10.60. The cost for Humana Standard is going down in just three states -- Georgia, Louisiana, and South Carolina.

Seniors can choose Part D plans that cover only drugs, or enroll in Medicare Advantage plans, which bundle general health insurance with the drug benefit. In 2006, about 10 million signed up for stand-alone drug coverage such as the Humana Standard plan.

The AARP MedicareRx plan, run by healthcare giant UnitedHealth Group of Minnesota, was the most popular stand-alone drug plan in 2006, with about 3.2 million members nationwide. Humana's Standard plan was second, with about 2 million members, and its Enhanced plan was third, with just under 1 million. Price increases for the Enhanced plan will average 50 percent nationwide.

UnitedHealth said the government formula can have some impact on premium prices, but that a savvy insurer can anticipate what the government will do and adjust its bid accordingly to end up with premiums priced close to company targets. For 2007, premiums for AARP's most popular plan are increasing an average of just 6 percent nationwide.

"It was our design and intention to see if we could keep the same premiums from 2006 to 2007," said Jacqueline Kosecoff, chief executive of the Ovations Pharmacy Solutions division for UnitedHealth. In Massachusetts, UnitedHealth's AARP plan premium increased 11 percent to $26.30 a month.

Under Part D, seniors who go without drug coverage will pay higher prices if they eventually decide to buy it. As a result, many seniors who did not need prescription drugs in 2006 signed up with Humana's low-cost plan simply to avoid having to pay more if they needed coverage in the future.

"Some of them took the plan even though they were only taking aspirin," said Nancy Roper, a volunteer for Action for Boston Community Development who counsels low-income seniors on drug plan choices. "Now, this jumps to $16.90 for 2007, and they're calling and asking is it worth it. It's a hardship."

Humana, based in Louisville, Ky., is one of the largest health insurers in the United States, providing medical coverage to 11 million people. The Medicare drug benefit represents an important line of new business for the company. It predicts that stand-alone drug coverage will generate between $2.8 billion and $3.2 billion in revenues this year, and between $3 billion and $3.5 billion in 2007, out of projected total revenues of $25 billion.

Advocates fear many seniors have not been as aggressive about comparing prices as they were when they signed up for 2006 coverage, causing many to stay with their current insurance, regardless of changes in costs and benefits.

"For many reasons, the Medicare population is not used to something that changes every year," said Judith Stein, executive director of the Center for Medicare Advocacy, a group that works to increase access to Medicare benefits. "Big players like Humana and AARP are likely to retain most of their membership in 2007."

The Kaiser Family Foundation released a study two weeks ago showing only one in 20 seniors enrolled in a Medicare drug plan said they would switch in 2007.

Humana's Latimer said the company expects customers will vote with their wallets if they are unhappy with the new coverage and premium rates.

"If it's not a good value, most consumers will take a look and most will change," he said.

Humana in deal with Commerce Lexington

Humana and Commerce Lexington Inc., the Lexington chamber of commerce, will offer discounted health, dental, and life insurance coverage for small employers in Central Kentucky and the Bluegrass region.

The program, similar to one that Louisville-based Humana and Greater Louisville Inc. offer, is for employers with between 2 and 99 employees who are members of the Lexington chamber. It includes free wellness and health-education programs for members and workshops to help small businesses choose health plans that best fit them and their employees.

Goldman: Humana is best buy

Goldman Sachs managed-care analyst Matthew Borsch has singled out Humana as his "best buy idea."

He cites the Louisville company's stock price, which he estimates is a discount to the managed care companies that focus on selling plans to employers. Borsch likes Humana's Medicare business.

"We think concerns over the potential for cuts to MA reimbursement are significantly overdone, with rate changes (if any) likely to be gradual and phase-in starting in 2009 at the earliest," he wrote to clients Wednesday.

Shares of Humana were up 44 cents at $54.64 early Wednesday.

Humana Insurance

Humana Inc. (NYSE: HUM), founded in 1961 in Louisville, Kentucky, is a Fortune 500 company that markets and administers health benefit consumer services. With a customer base of over 11 million in the United States, the company is the largest Fortune 500 company in the Commonwealth of Kentucky, with a market cap of over $10 billion dollars and $21.3 billion in revenue. Humana employs over 18,500 "associates" nationwide. Humana markets its health benefit consumer services in all 50 states, D.C., Puerto Rico and has international business interests in Western Europe.

[edit] History
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The company was founded by David Jones and Wendell Cherry as a nursing home company in 1961. Then known as Extendicare, the company became the largest nursing home company in the United States. Extendicare later divested the nursing home chain and moved into purchasing hospitals in 1972, becoming the world's largest hospital company in the 1980s.

To reflect the company's new direction, the corporate name was changed to Humana Inc. in 1974.

Humana experienced tremendous growth in the years that followed, both organically and through the takeover of American Medicorp Inc. in 1978, which doubled the company's size.

During the mid-1970s, the company used a fast-track construction process to complete and open one hospital a month. This accelerated construction schedule, which compressed time by overlapping processes, allowed Humana to develop hospital projects faster than the industry norm. During that construction boom, Humana developed the double corridor model for hospital construction. This highly efficient design minimized the distance between patients and nurses by placing nursing support services in the interior of the building with patient rooms surrounding the perimeter.

As the American health care system evolved in the 1980s, Humana developed an integrated health care delivery system by creating a family of flexible health care plans.

1984: Humana began marketing health insurance.

1985: Humana brought the pioneering artificial heart research of Dr. Robert Jarvik and Dr. William DeVries to Louisville, creating the Humana Heart Institute.

1990: Humana acquired Michael Reese Health Plan and Michael Reese Hospital and Medical Center, an Illinois based company.

1993: Humana spun-off its hospital operations from the health insurance operations. The new company was called Galen Health Care Inc. Soon after, Galen merged with Columbia/HCA.

1995: Humana acquired The Dental Concern, an Illinois based dental insurance company.

1996: Humana acquired Employers Health Insurance (EHI), a Wisconsin based health benefits company.

1997: Humana acquired Physcians Corp of America (PCA), a Texas based health benefit company and ChoiceCare, an Ohio based health benefits company.

1998: United Healthcare attempted to acquire Humana. United's effort failed when it reported an almost billion dollar quarterly loss.

1999: Humana began pioneering work in consumer driven health care; launching its first services on September 11, 2001.

2000: Humana acquired Memorial Sisters of Charity, a Texas based health benefits company.

2001: Humana partnered with Navigy, Inc., a subsidiary of Blue Cross and Blue Shield of Florida, Inc., to launch Availity to empower physicians and other health care professionals with a business solution to conduct their daily health plan transactions.

2003: Humana acquired Ochsner Health Plan, a Louisiana based health benefits company.

2003: Humana began marketing health savings account services to individuals and companies.

2005: Humana entered into a business partnership with Richard Branson's Virgin.

2005: Humana acquired CarePlus Health, a Florida based health benefits company.

2005: Humana acquired Corphealth, a Texas based behavioral healthcare company.

2005: The Business Health Care Group of Southeast Wisconsin (BHCGSW) chose Humana as its administrative partner to drive Southeastern Wisconsin health care costs to the Midwest average, using a strategy that includes consumer education, providing cost and quality information on health care providers, structuring accountability of all stakeholders and collective purchasing. Today, the BHCGSW represents more than 200 member companies, including large and small employers representing more than 150,000 health care consumers in Southeastern Wisconsin.

2006: Humana acquired CHA Health, a Lexington, KY based health benefit company.

2006: Humana launched a national mail-order retail pharmacy business.

2006: Upon passage of the Medicare Prescription Drug, Improvement, and Modernization Act in the U. S. Congress, Humana aggressively launched an education campaign to market Medicare Advantage (MA) and Prescription Drug Plans (PDP) nationwide to Medicare eligible consumers. A cross-country RV tour and strategic alliance with State Farm and Wal-Mart, the campaign signed up approximately 5 million consumers and catapulted Humana to #2 in industry market share for senior products.

[edit] Philanthropy

The Humana Foundation gives millions of dollars away each year to non-profit organizations in the markets where the company does business. Humana has been recognized as one of the most generous companies in the Fortune 500 in giving to charity.

The 2006 Humana Festival of New American Plays celebrated its 30th anniversary. Sponsored by The Humana Foundation, the Festival at Louisville’s Actors Theatre is an annual site of pilgrimage where theatre lovers from around the world converge to get the first look at the future of the American theater. Over 300 Humana Festival plays have been produced, representing the work of 206 playwrights. More than 90 million people worldwide have seen additional productions of the many plays originated in the Humana Festival, not including film audiences who have seen Humana plays adapted for the screen

The Humana Foundation donated $1 million dollars to the Gulf Coast region following Hurricane Katrina.

[edit] Location
Humana headquarters at the Humana Building in Louisville, Kentucky
Humana headquarters at the Humana Building in Louisville, Kentucky

The Humana Building in Louisville, Kentucky is a well-known example of postmodern architecture; it was designed by Michael Graves and completed in 1985. Humana sponsored an architectural competition to determine the design of its headquarters building. Scale models of the participants (including the submissions of Helmut Jahn, IM Pei, Michael Graves and others) are contained in a vestibule located directly above the Main Street entrance of the Humana Building.

In addition to its corporate headquarters building in Louisville at 5th and Main Street, Humana owns and occupies the Waterside Building at 1st and Main, and the Riverview Square at 2nd and Main. Humana recently announced its plan to lease space in the Waterfront Plaza East Tower in the 300 block of Main Street. The company also leases space in three other downtown buildings—National City in the 400 block of Main Street, the 515 Building on Market Street, and the ISB Building on Magazine Street. By mid-2006, Humana expects to employ approximately 6,900 associates in Louisville.

Humana recently undertook the historic preservation of a city block of several 19th Century buildings located beside its headquarters building.

Humana has purchased, or entered into agreements to purchase, all but two of the buildings on the south side of West Main Street between 5th and 6th streets—buildings in the same block, and adjacent to, the Humana Building. The three businesses that currently operate in those buildings will remain.

The company is working with preservation experts to ensure that the historic integrity of the block is maintained.

[edit] Company leadership

Michael B. McCallister, a 33 year company veteran, is president and chief executive officer of Humana. McCallister began his career in 1974 as an analyst in the company's finance department. In 2006, he was rated as one of the most successful CEOs in American business at creating shareholder value by Forbes Magazine. McCallister is a member of the Business Roundtable.

David Jones, Jr. serves as chairman of the board of directors. Jones is the son of company founder, David Jones, Sr.

In an interview published by the Courier-Journal, the day following his retirement as chairman of the board of directors, David Jones, Sr. indicated he had vehemently opposed United Healthcare's effort to takeover Humana in 1998, but was out voted by other members of the board of directors.

The year the leader joined the company is listed in brackets.

* Michael (Mike) B. McCallister, President and Chief Executive Officer [1974]
* James (Jim) E. Murray, Senior Vice President and Chief Operating Officer [1989]
* James (Jim) H. Bloem, Senior Vice President, Chief Financial Officer and Treasurer [2001]
* Bruce J. Goodman, Senior Vice President and Chief Service and Information Officer [1999]
* Thomas (Tom) J. Liston, Senior Vice President, Strategy and Corporate Development [1997]
* Steve Moya, Senior Vice President and Chief Marketing Officer [2000]
* Bonita (Bonnie) C. Hathcock, Senior Vice President and Chief Human Resources Officer [1999]
* Jonathan (Jack) T. Lord, M.D., Senior Vice President and Chief Innovation Officer [2000]
* Arthur (Art) P. Hipwell, Senior Vice President and General Counsel [1979]
* Heidi Margulis, Senior Vice President of Government Relations [1985]
* Thomas (Tom) Noland, Senior Vice President of Corporate Communications [1985]
* John M. Bertko, Vice President and Chief Actuary [2001]
* William (Bill) Tait, Vice President, Market Operations [2001]
* Stefen Brueckner, Vice President, Senior Products [2001]
* Steven (Steve) E. McCulley, Vice President and Controller, Principal Accounting Officer [1990]

[edit] Competitors

* Aetna Inc. (AET)
* Blue Cross and Blue Shield Association (BCBS)
* Cigna (CIGNA)
* UnitedHealth Group Incorporated (UNH)
* WellPoint, Inc. (WLP)

[edit] Trivia

* David Jones and Wendell Cherry, the company founders, decided to start the business during a game of golf in Louisville. The founders each put up $1,000 as their initial investment. Over 46 years later, Humana is now the Official Health Benefits Provider of the PGA Tour, PGA Senior Tour and PGA Champions Tour. PGA player David Toms and LPGA player Nancy Scranton are both ambassadors for Humana.
* The company's tagline is "Guidance when you need it most."
* Humana associates serve as an internal test-market for the company's next generation of consumer services.
* David Jones Sr., formerly CEO and chair of the board of directors is currently leading the City of Parks initiative in Louisville. This effort is designed to acquire land to expand parks throughout Louisville. He raised over $20 million for this effort in 2005 and 2006 through his personal fundraising efforts. In February 2005, the Trust for Public Land and Louisville Mayor Jerry Abramson announced a $20 million initiative spearheaded by the community fundraising efforts of Humana Co-founder and Chairman Emeritus David A. Jones. The funds will be used for continued land purchases that promise to make Metro Louisville a "City of Parks." The Humana Foundation contributed $1.25 million.
* The Humana Distaff Handicap is a Grade 1 race for thoroughbred fillies and mares, four-years-old and up. The race is run each spring on Kentucky Derby Day at Churchill Downs and set at a distance of 7 furlongs for a purse of $250,000.
* Michael McCallister, president and CEO, serves on the Board of Directors of National City Corp., parent company of National City Bank.
* On September 11, 2001, approximately 23 Humana leaders were in New York City to launch the company's next generation health benefit consumer services at the Digital Sandbox. The group had dined the previous evening at the Windows on the World Resturant atop the World Trade Center Tower One. The group safely escaped New York following the collapse of the World Trade Center buildings. The leaders wrote a book: Stories from 55 Broad Street; to tell the story of their experience.
* Humana is a founding sponsor of eons.com, the online social networking site developed by Monster.com founder Jeff Taylor. The site targets the 50+ market segment.
* Consumers of Humana's Medicare plans are eligible for membership in the Silver Sneakers fitness program.
* Developed by Humana, Harris Interactive and Consumer Action, The Family Health Budget is designed to equip individuals and families with a common sense budgeting tool to assist in budgeting healthcare expenses. The tool encourages users to take an active role in their health care financing and planning.
* Straight from the golden days of Hollywood, Humana brought the 1942 classic Casablanca back to the big screen in select movie theatres nationwide as part of a campaign to preview its 2007 Medicare Advantage consumer services. The special screening events marked the first time in more than 60 years that the classic Humphrey Bogart epic was seen nationally in movie theatres.

Smoking foes bring the fight to apartment buildings

Terry McLlarky says smoking is a point of dispute in the Kirkland public-housing apartment complex where he serves on a residents committee.

A year after a statewide smoking ban took effect at workplaces, restaurants, bars and other public places, a new battlefield over secondhand smoke is emerging: apartment buildings.

Spurred on by nonsmoking tenants and public-health leaders, more private landlords are considering restricting smoking inside their rental units. And local public-housing agencies are also looking at banning smoking in the units of some buildings.

Since the ban took effect, people have gotten used to going out in the community and not being exposed to secondhand smoke, and that's prompted some to ask, "Why do I have to take it in my home?" says Roger Valdez, manager of the tobacco-prevention program for Public Health — Seattle & King County, which enforces the smoking ban here.

"We've been surprised by the increased level of interest to make their apartments smoke-free," he said.

A year ago last month, the voter-approved Initiative 901 took effect. It prohibits smoking in work settings and public places — from offices to bowling alleys — and within 25 feet of their front doors, or a "reasonable" distance, to keep smoke from wafting indoors.

Compliance has gone well, according to the health department. The first month, the department received 168 complaints and found 16 violations. A year later, the numbers were down last month to 18 complaints, with the department finding just one violation.

"When you think of the thousands of businesses in King County, everyone did what they were supposed to do," Valdez said. "What we've heard now is about people smoking in condos and apartment units."

While the state ban prohibits smoking in the common areas of private apartment buildings, such as hallways, community rooms and libraries, residents may smoke inside their units unless the landlord prohibits it.

But smoke from one unit can seep through ventilation shafts and doorways into other units, and the ban has emboldened some nonsmoking tenants to complain about that to their landlords.

"Some landlords are dealing with the issue by banning smoking entirely in their buildings to avoid being stuck in the middle," said Seattle attorney Chris Benis, who advises landlords for the Rental Housing Association of Puget Sound.
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In the past year, he says, he has received more calls from landlords asking what legal steps they must take to convert their buildings to being smoke-free. Valdez said the health department supports such voluntary efforts, but is not advocating for an expansion of the smoking ban to include apartment units.

Perhaps nowhere is the issue more controversial than in public housing, where many residents — smokers and nonsmokers alike — have few housing options.

"You have some people who say, 'My apartment is my castle. I should be able to smoke whenever I want,' and other people say, 'Yeah, but your smoke is helping to kill me,' " said Terry McLlarky, a resident of Casa Juanita apartments in Kirkland, which is operated by the King County Housing Authority.

McLlarky, who smoked for 40 years before quitting in 2002, is serving on a residents committee that advises the authority on their concerns. Even before the smoking ban went into effect, smoking was not allowed in the common areas of public housing.

Last summer, to find out what public-housing residents had to say about secondhand smoke, the health department and the Group Health Community Foundation, an affiliate of Group Health Cooperative, surveyed 508 households in properties run by the housing authority.

Just over 300 households responded. Most were nonsmoking, with 84 percent reporting they don't allow smoking inside their units. Nearly three-quarters supported rules that prohibit smoking inside apartments.

This week, the housing authority plans to distribute a second survey targeted at elderly and disabled apartment residents. At the end of the month, the committee McLlarky serves on plans to discuss the issue.

The committee's last meeting on the issue in September was explosive. "I don't see any immediate meeting of the minds," he says.

Indoor smoking comes with a higher risk of fires, litter and increased maintenance costs when smokers move out, authority spokeswoman Rhonda Rosenberg said.

After engaging residents in discussions over the next year, the authority probably will establish limits on smoking in some apartments, Rosenberg said. "It's a very delicate dance. It's not as obvious as it would seem."

In July 2003, the Seattle Housing Authority opened its first and only smoke-free property, the Tri-Court, an 86-unit development in North Seattle. The building had been remodeled and smokers who lived there were moved to other properties at the authority's expense.

Virginia Felton, the authority's spokeswoman, said the Tri-Court project came about because many residents with asthma, emphysema and other respiratory problems were asking for a smoke-free building.

This year the authority plans to evaluate whether to expand the smoke-free policy to another building, she said.

Tri-Court resident Susan Vanbuskirk, 58, is allergic to smoke and appreciates living in a smoke-free building, but said compliance isn't perfect. Sometimes in the evening, when she's watching TV, she detects whiffs of cigarette smoke coming from somewhere on her floor.

"I used to smoke, so I know what it smells like," she said.

Group Health Cooperative

Group Health Cooperative, based in Seattle, Washington, is a consumer-governed nonprofit healthcare system. Established in 1947, it today provides coverage and care for about 540,000 people in Washington and Idaho and is one of the largest private employers in Washington.

Its research arm, the Group Health Cooperative Center for Health Studies, works with institutions such as the University of Washington and the National Institutes of Health. For example, in January 2006, the Center released the results of a study that concluded that regular exercise is associated with a delay in the onset of dementia and Alzheimer's disease.

Group Health has also been a national leader in clinical information systems and electronic patient records.

IDBI's insurance venture soon

Mumbai : The IDBI Bank will kick-start its insurance joint venture and Rs 1,000-crore private equity fund business within the next three months.

The public sector major has also scheduled its re-entry into the mutual funds business for the latter part of this year even while awaiting Parliamentary clearance for the Pension Fund Regulatory and Development Authority (PFRDA) Bill before making a move in the pension fund segment.

While the mutual funds business will be conducted by the bank along with IDBI Capital Markets Ltd, the insurance business will involve Fortis Insurance International NV and private sector lender, Federal Bank.

Outlining the future growth plans of the bank, a senior IDBI official said that the bank will shortly launch a Rs 1,000-crore private equity fund focusing on Small and Medium Enterprises (SMEs) and companies in the turnaround mode.

"While RBI approval for the fund is awaited, our board has cleared the proposal to set up the fund," the official said.

The bank is bullish on its insurance business in which it holds a 48 per cent stake followed by Fortis and Federal Bank with 26 per cent stakes each.

State Farm Begins Wrapping Up Settlements

Hurricane Katrina not only damaged the lives and property of thousands of individuals, but it has devastated P&C insurers. State Farm, the nation’s largest property insurer, was placed between a rock and a hard place. On one hand, the hurricane’s destruction smashed into the company’s financials while on the other hand, the company faces a potential PR disaster through hundreds of lawsuits, which have portrayed State Farm has heartless in not paying claims appropriately.

State Farm representatives recently said that they are on the verge of wrapping up the majority of their lawsuit settlements for Hurricane Katrina-caused property damage (e.g. homes located in the Mississippi Gulf Coast.)

The resolution of the acrimonious legal conflict – a total of $80 million for 639 lawsuits – between State Farm and homeowners would have gone on for years, not to mention, hindered the rehabilitation of Mississippi's citizens following the unprecedented August 2005 hurricane season.

In just Mississippi alone, at least 2,000 residents sued their insurance companies. As specified in the accord’s terms, State Farm must remunerate claimants at least $50 million. Notwithstanding, the degree of property destruction from previously closed claims and the sheer volume of homeowners (who requested their files to be reopened), some experts estimate State Farm’s amount of payables to ring up to the hundreds of millions.

Lawyers involved with the deal anticipate other insurance firms to finalize a same type of agreement wherein an estimated additional 100,000 other closed claims can be re-scrutinized. One Washington legal expert said the companies will settle because the vast number of claims and complexity in evaluating each one would drastically strain time and resources.

Other insurers have already paid $5.2 billion for damage to homes throughout Mississippi for Katrina and $10.3 billion for damage in New Orleans and other parts of Louisiana. Some homeowners were remunerated with just a few thousand dollars for property destroyed or heavily damaged by Hurricane Katrina.

The review and possible increase of payments for up to 35,000 more Mississippi homeowners (excluding the rest of Louisiana and New Orleans homeowners) were just part of a number of proposed restitutions which State Farm consented to. State Farm will pay the plaintiff homeowners approximately $125,000 on average.

The said settlements are poised to end a bitter episode, which saw at least twelve or more insurance firms widely vilified and blasted by prosecution counsels for repudiating Mississippi homeowners’ claims connected with Hurricane Katrina's devastation. They would also extend hundreds of millions of dollars intended to speed up recovery of citizens who suffered losses due to 2005’s devastating hurricanes.

Thousands of residents of the gulf coast of Louisiana, Mississippi and parts of Alabama were left severely disenfranchised in the aftermath of Hurricane Katrina's unprecedented storm surge. Countless homes and lives were literally wrecked and devastated.

It’s quite a tragedy that many failed to acquire sufficient coverage. News reports detail how less than a quarter of gulf coast residents bought flood insurance through the National Flood Insurance Program. And many individuals opted to file lawsuits in order to recoup losses, which they contend should have been covered by their policies, even as insurance companies doled out billions (like State Farm who paid more than $5 billion dollars) to claimants in the wake of Hurricane Katrina.

The denial of compensation in flood damage claims was the main outcry in Louisiana and in Mississippi. The central conflict was Hurricane Katrina’s wicked storm surge (a deluge of Gulf waters forced inland by the 135 mile-per-hour fury of Katrina’s strong winds).

According to an AP report, some insurers even trumpeted that their policies do not cover damages that were a result of a combination of both wind and floods, and flatly refused to cover billions of dollars in damage from Katrina’s storm surge.

Insurers rebuffed many claimant families from the hurricane-ravaged Gulf coasts by stating that their policies did not insure that particular kind of damage caused by Katrina. Compared to majority of prior hurricanes on record, the flooding in the wake of Katrina was far more dreadful and destructive.

In a recent ruling, though, a judge from the Federal District Court of Gulfport, strongly disagreed with State Farm’s defense (i.e. they asserted that they were not responsible for any damages other than those caused by Katrina's high winds, and that they do not cover flooding damage) and thus found them liable for a Biloxi couple’s home’s damages caused by Katrina.

The judge said State Farm’s testimony failed to ascertain how much damage resulted from storm surge (thus, also failing to establish that Katrina's storm surge was responsible for all of the damage to the couple's home) and how much was caused by wind. Hence, both judge and jury handed down an enforcement action requiring State Farm to pay the plaintiff up to $223,292 in damages plus punitive damages of up to $2.5 million.

Analysts say the ruling could impact hundreds of other cases of homeowners prosecuting insurance firms who refused to pay billions of dollars in storm damage. An official from the Insurance Information Institute in New York likewise laments that the punitive damage award would be "distressing" for insurers and it would "add even more cost and more uncertainty to the other problems that already exist in the Mississippi homeowners insurance market," he said.

Initially, State Farm was asked by the couple to compensate them for their home’s full-insured value including $5 million in punitive damages because they claimed a tornado during the hurricane wrecked and reduced their home to nothing but a slab. State Farm passed the buck to Katrina's storm surge.

According to a Reuters report, flood damage is typically insured by federal, and by not private, insurance firms.

To date, State Farm, for its part, said it paid out more than $1.1 billion in Mississippi and already settled more than 84,700 home, commercial and personal property claims. They likewise sought engineering reports in about 1,100 property claims that they handled in the state of Mississippi. Payments for more than 60 percent of those claims in which engineers were involved were already settled. And in the claims where engineers were involved, State Farm already paid far more on homeowner claims than they did on National Flood Insurance Program claims (i.e. more than $790 million in national flood insurance claims for the federal government).
State Farm's pro-activeness in settling the lawsuits, according to some industry analysts, should not be seen as an admission of any liability. They said State Farm prefers to avoid this being treated as a precedent for any future payments for flood damage caused by hurricanes.





Legal insiders disclosed that State Farm is seeking Mississippi attorney general Jim Hood’s and state insurance regulator George Dale’s approval for them to expedite the accord’s resolution. In return for State Farm’s compliance with the enforcement actions, Mr. Hood needs to withdraw their civil lawsuit and criminal probe into State Farm's and other insurance firms’ handling of claims.

Representatives from both the Mississippi attorney general’s and insurance commissioner’s office said they are “working day and night attempting to get the coastal residents a fair shake in the insurance litigation” and that they are consistently monitoring the accords to ensure fairness for all parties concerned.

Officials from State Farm, though acknowledging nothing’s final yet, likewise echoed the same position. They even released a statement stating that their claims associates are “committed to operate at the highest level of business and ethical standards. State Farm is committed to paying what we owe, promptly, courteously, and efficiently.”

Even though State Farm had the third worst record in 2004 for insurance firms in the State of CA (* Information c/o the CA Department of Insurance) when it came to the number of justifiable complaints, the company handled more than 295,000 property claims and paid (not including payments made under the National Flood Insurance Program) more than $3.1 billion as a result of Katrina.

Patients awaken to collisions around them, the urgency for reform

Rudely awakened by the arguing doctor and hospital chief on one side of the hospital bed and the insurance guys on the other, the patient wants to know one thing: Now what?

That's how thousands of Lower Hudson Valley residents felt last month as contract negotiations over reimbursement rates for medical services provided by local hospitals and paid for by insurers went down to the wire. People insured by Empire Blue Cross Blue Shield and CIGNA HealthCare were shocked to realize that even though they had signed up for their 2007 insurance plans, seemingly secure that their preferred physicians and hospitals were "in the network,'' come Jan. 1 that could all fall apart.

Sick report

Empire and four hospitals in the Stellaris Health Network - White Plains Hospital, Northern Westchester Hospital Center, Phelps Memorial Hospital Center and Lawrence Hospital - reached a deal on the rates New Year's Eve. Empire members could stop wringing their hands, for now, at thoughts of not being covered at their local hospitals or seeing preferred doctors dropped. While the agreement finally reached was announced, though, no details followed.

Meanwhile, CIGNA's situation was in limbo the last two weeks. Four other hospitals in Westchester - Westchester Medical Center, Sound Shore Medical Center, Mount Vernon Hospital and Hudson Valley Hospital Center - dropped out of CIGNA, effective Jan. 1. CIGNA retaliated by dropping more than 300 local doctors from its network, staff writer Jerry Gleeson reported.

Neither Empire nor CIGNA would reveal how many members in the region have been affected, contending those data are proprietary. Consumer angst, therefore, is measured by the considerable complaints to the newspaper and LoHud.com, to employers and lawmakers; certainly, the insurers won't reveal the numbers. Rockland customers had a similar tense time in the summer of 2005 during negotiations between Empire and Good Samaritan Hospital in Suffern. Call it brinkmanship redux.
Surprise, surprise

Consumers certainly have grown used to higher and higher health insurance premiums, and usually less coverage. They know well that health maintenance organizations, not their doctors or hospitals, are the "gatekeepers" to certain treatments and tests. Nevertheless, last month's stand-off between hospitals and insurers shocked a lot of people. So did the announcement by a commission that some hospitals around the state would have to close or merge with others to streamline the system. One of the targeted hospitals is Community Hospital at Dobbs Ferry, to the great dismay of many supporters, including its partner, St. John's Riverside Hospital in Yonkers.

While both events woke up affected consumers and patients, catastrophe has been roiling beneath the surface of New York's health system ever since the state partially deregulated it in 1996. Today's hugely powerful players are the health-care providers, insurance companies and hospital-workers' unions. The providers - the hospitals, doctors, nursing homes and others - are fed up at reimbursement rates, pointing at enormous profits made by the insurers and their CEOs. The insurers say they are the only ones committed to keeping costs in line. The hospital-workers' unions use their lobbying and voter clout to get what they can for their members.

Each say they care first and foremost about delivering quality care to patients at reasonable cost. The New York Health Plan Association, which represents 30 insurance plans, says in its philosophy statement on its Web site at www.nyhpa.org that "We believe that consumers have a right to information about health plans and how they work.'' Lower Hudson Valley residents blindsided by the Empire-CIGNA negotiations would be forgiven if they sniffed at that.
Demand reform

The state Legislature has not been oblivious to the problem. The Assembly held hearings in November on consumer dissatisfaction, especially the powerlessness felt when insurance coverage comes up short or their physicians and hospitals may be threatened. Assemblyman Richard Gottfried of Manhattan, who chairs the Assembly's Health Committee, told reporter Gleeson: "An insurance company's real client is not the insurance patient but the employer. And the employer is interested in keeping the premiums down. Certainly, patients are nowhere at the bargaining table.''

They have to be - through consumer and patient-rights advocates, and certainly through their representatives in Albany. Shutting them out means marginalizing the interests of the most important player in the health-care maelstrom. Yet in the same story, speaking to the confusion, Assemblywoman Sandra Galef, D-Ossining, noted that the hospitals are not owned by the government. "It's not clear that we do have a role in this,'' she said.

It is clear to us. The Legislature and Gov. Eliot Spitzer must have a hand in reforming every sector of the health-care system, if it is to survive; certainly the players have proved they cannot reform themselves. Spitzer knows it. He said in his State of the State address: "No one can afford health care anymore - not New York's working families, not our businesses and not our government.''

Neither can consumers. As recent events have demonstrated, they have to stop being mere pawns, mere patients, and be real players, educating themselves, insisting on reform - and no more end-of-year surprises.

Health Care Leader CIGNA Proudly Donates $1 Million to Help Build Martin Luther King, Jr. National Memorial in Washington, D.C.

PHILADELPHIA and BLOOMFIELD, Conn., -- CIGNA, a leader in health and related benefits, has donated $1 million to help build a lasting memorial to Dr. Martin Luther King, Jr. in Washington, D.C. The announcement will be made tomorrow on Martin Luther King Day by Harry E. Johnson, Sr., president of the Washington, D.C. Martin Luther King Jr. National Memorial Project Foundation, Inc.

"Sponsorship of the Martin Luther King, Jr. Memorial is a fitting tribute to a passionate civil rights advocate who was larger than life," said CIGNA Chairman and CEO H. Edward Hanway. "Martin Luther King inspired and challenged us to overcome adversity and make a positive difference in our community and our country. Through this memorial, Martin Luther King, Jr.'s message will ring true for generations to come," Hanway said.

As the only health care company to date to sponsor the memorial at the million-dollar level, CIGNA encouraged its colleagues in business and industry to follow its lead.

The permanent memorial on the National Mall will be positioned between the Jefferson and Lincoln Memorials and will symbolize for all Americans the unbroken link between the Jeffersonian ideals on which America was founded, the protection and salvation of those ideals by President Lincoln, and the struggle by Dr. King to fulfill those ideals.

About the Washington, DC Martin Luther King, Jr. National Memorial Project Foundation, Inc.

A memorial honoring Dr. Martin Luther King, Jr. will be built on the National Mall in Washington, D.C. The Memorial will be situated adjacent to the F.D.R. Memorial and in a direct line between the Lincoln and Jefferson Memorials. Congress passed Joint Resolutions in 1996 authorizing Alpha Phi Alpha Fraternity, Inc. to establish a memorial honoring Dr. King to be built in Washington, D.C. The Ceremonial Groundbreaking took place on November 13, 2006 and the Memorial is scheduled to be completed in 2008. Website: www.buildthedream.org.

For more information about the Washington, D.C. Martin Luther King, Jr. National Memorial Project, visit www.buildthedream.org.

About CIGNA

As a Business of Caring, CIGNA (NYSE: CI) provides employers with benefits, expertise and services that improve the health, well-being and productivity of their employees. With approximately 47 million covered lives in the United States and around the world, CIGNA's operating subsidiaries offer a full portfolio of medical, dental, behavioral health, pharmacy and vision care benefits and group life, accident and disability insurance.

CIGNA expresses its commitment to improving the health of individuals and families and enhancing the well-being of local communities through a charitable giving and civic involvement program. The program stresses support for non-profit organizations working in key areas of health-related concerns and encouragement of employee volunteer activities. To learn more about CIGNA's giving go to http://www.cigna.com/about_us/community/index.html.

CIGNA Insurance

CIGNA (NYSE: CI) is a Philadelphia-based insurance company, the oldest stock insurance company in the United States. The Philadelphia headquarters are located in One Liberty Place.

CIGNA can trace its roots back to 1792, and the founding of the Insurance Company of North America (INA), the country's first marine insurer. Its first life insurance policy was issued two years later. In 1865, the Connecticut General Life Insurance Company (CG) was formed in Hartford. Nearly 120 years later, in 1982, CG and INA merged to form CIGNA. In 1997, CIGNA sold several of it's staff model healthplans and the original Ross-Loos Medical Group which is the oldest health maintenance organization "HMO" in the United States to Birmingham, Alabama based MedPartners. In 1998, CIGNA sold its individual life insurance business to Lincoln National Corporation, and the next year it sold its property and casualty insurance business to the ACE Limited, for $3.5B cash and . In 2000, it sold its reinsurance business to Swiss Re. In 2004, it sold its pension business to Prudential Financial.

Connecticut General was a major funder of the planned city of Columbia, Maryland.

Assurant Insurance

Assurant's businesses provide a unique variety of products and services that assure opportunity, security and peace of mind for our customers. We provide creditor-placed homeowners insurance; manufactured housing homeowners insurance; debt protection administration; credit insurance; warranties and extended services contracts; individual health and small employer group health insurance; group dental insurance; group disability insurance; group life insurance; and pre-funded funeral insurance. Assurant's strategy is to manage a select portfolio of specialty businesses that are leaders in their markets.

Assurant's U.S. headquarters office, located in New York's financial district, provides strategic management and key resources for its U.S. operating companies, including asset management, employee benefits, tax, accounting, legal and communications. Assurant also has offices in Syracuse, New York; West Des Moines, Iowa; and in Woodbury, Minnesota; which provide service support for its operating companies in such areas as information technology, financial and human resources systems management, and New York State policy administration.

Free-pricing to cut cover price of retail products

Free pricing or detariffing in general insurance has for long raised the spectre of a bloody price war, which is good for consumers, but could be hurting for insurance companies. National Insurance Company (NIC) has, however, prepared itself for the new regime by charting a high growth plan for health and householders’ insurance which have huge potential. At the same time, it plugged losses in mediclaim and motor insurance.

V Ramasaamy, a chartered accountant, took charge as chairman of NIC at a time when the industry was preparing for free pricing. Before joining NIC, Mr Ramasaamy was with United India Insurance where he joined as a direct recruit officer in 1975. After various postings, he was promoted to the cadre of general manager in 2002 and was handling reinsurance, technical, IT and grievance departments.

Mr Ramasaamy has set a target of $1- billion premium, which NIC hopes to achieve by 2010. Currently, it’s in the process of laying down its corporate business plan for the next few years that will include financial as well as business organisational restructuring plans.

The general insurance industry has been detariffed from January 1. How has NIC responded to the freedom in pricing?

NIC has reduced basic rates for fire and engineering covers by as much as 20-25% in most cases. There are, however, segments where we intend to reduce rates further on the basis of claims experience, risk evaluation of the sector and risk perception of the insured. For example, despite the floods in Mumbai, industrial losses for insurers are only 35-30% of premium income in fire insurance, which also covers flood damage. We feel such sectors deserve good discounts.

IRDA has approved almost in entirety the revised rates for nearly half the industry segments. For the rest, the regulator has asked for more data, justification for the cut, and risk perception.

We have also created an exclusive department to look at pricing and we have identified regional underwriters, created a sub-group to work out ratings model for fire and engineering. We are training our employees, including development officers and clerks.

Are there any sectors where rates will rise or remain the same?

For the jute sector, we have decided to keep the rates virtually unchanged because our claims experience for this industry is very unfavourable.

What kind of discounts in premium will you offer on motor insurance?

Rates for third-party liability in motor insurance were recently revised upwards by the regulator. For the own damage portion, which covers vehicles against damages due to accidents, theft, and break down, the discount in premiums has been capped at 20%. Currently, we are working on categories of vehicles where greater discounts may be offered. IRDA has barred insurers to change rates in the next six months. After six months or a year, NIC may introduce different rates for different sub-categories in fire, engineering and motor covers, depending on the risk perception.

What, in your view, will be the impact of free pricing on retail business and how the retail market is expected to shape up? And if retail is going to grow, how will NIC distribute retail products?

Premiums for retail products, other than motor, are expected to decline by as much as 30-40%. This is, of course, subject to IRDA clearance. We will concentrate on these products and try and increase penetration. As prices decline, demand is expected to rise. This will be coupled with a publicity and media campaign, which is being readied. There has not been much awareness for products like householders’ policy, and shoppers’ insurance, primarily because we did not push these products so long.

As these products can only be sold through agents, we intend to hold regular meeting for agents to peg targets for each of them. Additionally, commissions for these products are as high as 15%. NIC is also working on the possibility of introducing similar grading to agents prevalent in the life insurance industry where agents get certain facilities when they bring in a stipulated premium.

There were plans to revise rates on mediclaim policies. What are the changes?

Basic rates for existing mediclaim polices need to be changed. It was long overdue. We have rejigged the rates and have filed them to IRDA for feedback and approval. NIC intends to raise premiums for individuals above a certain age, while for the younger generation it will decline. We also have three new health covers, for elderly, the younger generation and a composite policy for the entire family. For new policies, we have set a target of 6,000 policies between January and March 2007 for all our 24 regional offices.

Do you foresee any change in premiums for group health policies?

Group health covers are cross-subsidised with premium from fire and engineering covers for a client. As premium for fire and engineering declines, the cross subsidy will decline. This will result in rising premiums for such policies.

However, there is some reluctance to raise premium of group policies. We are analysing clients’ employee profile before offering premium rates. NIC is, at present, working on group health policy rates for which there will be a factor of risk perception for different categories of employees within one company.

The risk profile of top executives, workers, and field officers are not the same. Hence, there would be different premiums and covers for each category allowing us to charge the same total premium for group health policies. We also intend to tie up with 10-20 hospitals through third-party administrators, and are planning to introduce caps for various heads in like room rents, and doctors’ fees.

How do you plan to counter the decline in premium income from categories where rates have declined?

In the detariffed scenario, rates for fire and engineering covers will decline. We will, however, try to increase penetration of policies like health, householders’ policy, flat insurance, in order to compensate the loss in premium income due to reduction in premium for fire and engineering covers. For health, special policies, liability policies, householders policies, premium income will rise.

What is NIC’s target for premium income in 2006-07 and when do you hope to make underwriting profits?

This year, we are targeting a total premium income of Rs 3,800 crore. Now that detariffing has been effected, at NIC we hope to achieve under-writing profits in the next 3-4 years. Third-party motor insurance and general mediclaim portfolio are loss-making. For third-party alone there are three lakh pending cases and the amount is close to Rs 3,000 crore.

This will, however, be paid over the next six-seven years. Nevertheless, now we are in the process of realigning rates for mediclaim. We feel mediclaim, which clocked claims amounting to 120% of the premium last year, will break-even next year as rates have increased. Plus, with the motor third-party pool now in place, we feel losses from this segment will decline. In the meantime, fresh liability for third-party will also reduce because of the pool.

Napolitano proposal would help families pay for kids' insurance

PHOENIX - Tens of thousands of middle-class families could get help paying for health insurance for their children if a proposal by Gov. Janet Napolitano is adopted this year by the Legislature.

Napolitano wants to expand a low-cost state health insurance program to include children of families up to 300 percent of the poverty level, or about $60,000 a year for a family of four.

The proposal to expand KidsCare, which is likely to meet strong resistance from some conservative lawmakers, is expected to cost about $6 million next year and is part of the budget plan Napolitano released Friday.

It comes as several states move toward programs to insure all children or create universal health care programs for their entire population.

Last Monday, when Napolitano announced her plan in her State of the State address, Gov. Arnold Schwarzenegger announced a sweeping $12 billion plan to create a universal health care system for California.

The plan, which would be funded in part by contributions from employers that don't offer insurance, makes California the fourth and largest state to attempt to create a system to insure most of its population.

According to the Kaiser Family Foundation, about 270,000 children are uninsured in Arizona. That's about 16 percent of the under-18 population. The national average is 12 percent.

‘‘Children with health insurance are more likely to get regular checkups and low-cost preventive care, which means they're much less likely to visit an emergency room or end up in the hospital, which saves money,'' Napolitano said in her address. ‘‘It's a good investment, but more important, it's the right thing to do.''

January Contreras, the governor's health policy adviser, said that while Napolitano believes all Arizonans should have access to affordable health insurance, she wanted to focus on an area where she might be able to find agreement with the state's Republican-controlled Legislature.

‘‘All of our discussion has been about taking an approach that is workable for our state,'' Contreras said. ‘‘I think the timing is ripe for action on health care and kids are the right population.''

The KidsCare proposal also includes a statutory change to allow the program to be publicized in schools to attract families that are already eligible under existing limits. If implemented, the expanded program would not start until the second half of fiscal 2008.

The Governor's Office estimates that about 40 percent of the approximately 145,000 uninsured children who are U.S. citizens in the state and who would be eligible for the program could end up enrolled by the end of the fiscal year.

The total cost for the half-year would be about $20 million, with $6 million of that state funds and the rest federal matching funds. The cost is expected to rise in the future.

The proposal has been met with mixed reaction in the Legislature. Some lawmakers ask if solidly middle-class families making $60,000 a year are really in need of state assistance.

Right now, the program insures families up to 200 percent of the poverty line, or $40,000 for a family of four. Under the governor's plan, families with incomes between 200 and 300 percent of the poverty line would pay a monthly premium of $30 for one child, $45 for more children.

‘‘I still think we are drifting away from personal responsibility, and this sounds to me like another step in that direction,'' said Sen. Bob Burns, R-Peoria, chairman of the Senate Appropriations Committee, which is in charge of budget matters.

Cost of corporate liability insurance declines in 2006

The cost of buying liability insurance for corporate executives and directors finally began to decline last year after several years of major price increases, a new survey has found.

A Spencer Stuart review of insurance costs for Canada's 100 largest companies found premiums dropped 14 per cent to an average of $1.39-million per company, based on the most recent information published by each company.

A year earlier, companies reported facing an average 26-per-cent increase in their directors' and officers' (D&O) liability insurance premiums. Since 2001, many public companies have seen their premiums double or even triple.

D&O insurance protects executives and directors from legal liability, especially shareholder lawsuits.

Insurance industry experts say the recent decline in costs is a result of a decrease in shareholder lawsuits, especially in the United States, and to growing competition as more insurers have moved into providing D&O insurance.

“If you check out the securities class actions taking place — in the U.S. in particular — there seems to be a lessening of the frenzy,” said David Griffiths, senior vice-president at insurance broker AON Reed Stenhouse Inc. in Toronto. “It appears the market has kind of settled out.”

Mr. Griffiths said there was an “overreaction” in the insurance industry following the collapse of Enron Corp. in late 2001 and subsequent corporate scandals in 2002 and 2003.

“Some [companies] including the major ones, may have been overpaying a bit, and they'll see some pretty nice reductions still coming in.”

Elan Pratzer, chief executive officer of Toronto-based Executive Risk Insurance Services, which provides D&O coverage, said he believes the liability risks are unchanged and there are still major settlements occurring in Canada and the United States on D&O cases. He credits the falling prices primarily to growing competition in the D&O sector.

“There has been significant competition that has entered the marketplace, a lot of new players in Canada,” he said. “There's been a tremendous amount of capital poured into the insurance world and, like water, it's trying to find its way into areas where it can be productive.”

He also said that some companies are seeing their terms, or amount of coverage, falling along with the decline in prices.

The Spencer Stuart study found Canada's 100 largest companies have decreased their total coverage by 5 per cent to an average of $110.9-million per company. The average deductible also fell 4 per cent to $2.2-million.

Mr. Griffiths said that for most companies, D&O insurance costs have remained relatively stable for the first tier of primary D&O coverage, but have begun to decline significantly for so-called excess coverage. This has a particular impact on major corporations, because they are most likely to buy large amounts of excess coverage to supplement the primary package.

Mr. Griffiths said that in 2000, for example, excess coverage cost less than half the amount of the first tier of primary coverage. By 2004, the price of excess coverage had risen above 90 per cent of the price of primary coverage. He says the price has since dropped down to about 70 per cent.

Mr. Pratzer said small and medium-sized companies that are not publicly traded have also seen a significant drop in prices because they are perceived as less risky.

Insurance Coverage Blog: Why Are New York Car Insurance Rates So High?

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Being here in New York made me take notice of this small story about how car insurance premiums are high here despite record earnings and declining losses.

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Universal Health Insurance in Wisconsin

Over the past week, I have discussed California’s proposal to extend health insurance to all individuals. Today, I will examine—in my mind—a superior plan developed by former Republican Rep. Curt Gielow. According to a concept paper from the Wisconsin Health Plan website, the reforms will have the following impact:

“All eligible Wisconsin residents receive a “Premium Credit,” which the participant uses to purchase health insurance from competing, qualifying health insurance plans. In addition, all adults (age 18-64) also receive a Health Savings Account (HSA), funded at $500 each year.”

Eligible residents include all individuals living in Wisconsin for six or more months except for those eligible for Medicaid (BadgerCare), government employees and those incarcerated. In comparison to the California proposal, this “The Wisconsin Health Plan” is truly a universal entitlement in that there is no means testing.

Having some form of health insurance is seen by many as an important goal for an equitable society. On the other hand, giving away free health care—which in essence defines full insurance—will lead to spiraling costs and overuse of medical services. I applaud the Wisconsin plan for attempting to use some market-based mechanisms to contain costs. The Tier 1 plans set a $1200 annual deductible, a 10%-20% coinsurance rate with an out-of-pocket maximum of $2000 per person or $3000 per family. The child benefit package is more generous with the same coinsurance rates but an annual deductible of $100 and a maximum out of pocket expense of $500. Tier 1 insurance is free to residents but those who wish to have more comprehensive insurance (which is subdivided into Tier 2 and Tier 3 coverage) can purchase this type of insurance at an increased premium level. It is wise to give consumers some choice in their insurance type; having the default coverage include higher deductibles and coinsurance rates will create more efficient medical care allocation.

The Milwaukee Journal Sentinel also reports (”Big, Bold Plan?“) regarding another of the plan’s purported cost saving innovations:

“The Wisconsin plan would wisely make use of market-based incentives to control rising health care costs and save money. This would be accomplished by putting everyone in a state health insurance purchasing pool, patterned after the successful pool that already exists for state employees…Due to the sheer number of people in the plan, the pool would seemingly have the purchasing clout to convince health care providers and insurers to bid to provide high-quality care at competitive prices.”

‘Wisely’ is not the word I would use. The single payer system will reduce prices in the short run, but without competition between plans, hospitals and doctors will face a monopsony. This will likely decrease prices in the short-run but reduce the quantity and/or quality of services provided in the long run. The true value of a service will be unknown in a single buyer system and thus over-purchasing of inessential services and under-purchasing of more valuable—especially newer, more innovative—medical services will occur.

Critics assail the plan’s high cost and the increased payroll taxes as major obstacles to the plan. A study by M. Scott Niederjohn and Mark C. Schug claim that “payroll taxes assessed on Wisconsin businesses and employees would need to be more than 17% instead of the proposed nearly 13%.” Also, the plan states that “Any insurer (for example, HMOs, PPOs, or indemnity carriers) licensed to sell health insurance in Wisconsin — and that meets specified financial, coverage area, and disclosure standards — is qualified to compete to provide insurance coverage.” If the state, and not the insurers, is the entity negotiating prices and services with providers, then insurer competition will become very minimal.

I applaud the Wisconsin Plan, especially for allowing some consumer choice, for forcing consumers to face some of the cost of their medical services through coinsurance and deductible payments, and by making the program universal. The regulatory tiers should not be necessary; a simple minimal level of coverage would suffice with households paying extra for any type of insurance they required. I do not believe that the single-payer system proposed by the state will be cost-saving in the long-run. While the Wisconsin Plan is not optimal, it is a major step forward towards providing health care for all residents in a (relatively) affordable and efficient manner.

Do-it-Yourself Phishing Kit Found Online

Anti-Fraud monitors discover a kit that eases normally difficult phishing attacks on bank and e-commerce websites.

A software kit has been discovered for sale on the Internet that makes it possible for non-experts to set up and carry out sophisticated phishing attacks on large numbers of websites.

EMC's RSA division reports that its Anti-Fraud Detection Center (AFCC) found the 'universal man-in-the-middle phishing kit' being offered in a free demonstration version on a criminal forum monitored by the company.
User Friendly

The kit--said to have a user-friendly interface designed to help the nontechnical criminal--automates the programming needed to pull off a normally tricky man-in the middle attack on websites such as banks or e-commerce sites.

Typically, the attack generated by the kit would start by duping users into clicking on a link embedded within a phishing email. This would direct them to a fraudulent URL able to communicate with the genuine website in real time, retrieving content from that site to make the scam appear as convincing as possible.
Quick and Easy

Apart from the fact such attacks can be carried out quickly and simply on multiple websites, it offers the advantage of giving criminals access to all information exchanged with the attacked site, not just the basic login. According to RSA, the kit qualifies as 'universal' because it can be used on any website, and thus attacks don't need to be tailored for each site

"As institutions put additional online security measures in place, inevitably the fraudsters are looking at new ways of duping innocent victims and stealing their information and assets," said Marc Gaffan of RSA.

"While these types of attacks are still considered 'next generation,' we expect them to become more widespread over the course of the next 12-18 months," he said.

Working man-in-the-middle attacks are relatively rare but not unheard of by any means. Last year, the Sinowal Trojan was found circulating in Germany by Kaspersky Lab.

Alston & Bird, Children's Healthcare top best Ga. employers

Georgia's best places to work include two Columbus companies, an Atlanta law firm and a mortgage company, according to an annual survey by Fortune magazine.

Alston & Bird, the Atlanta law firm, was the top-ranked Georgia company on Fortune's list, at No. 19 nationally.

Things are still ducky at Aflac, Fortune says

GEORGIA'S BEST

Fortune's list of the top Georgia employers, listed alphabetically and followed by the headquarters or city of major operations:

The firm got kudos for annual bonuses of up to 9 percent for hourly workers, as well as an onsite center that cares for 130 children and an executive dining room open to the whole staff.

Children's Healthcare of Atlanta, at No. 35, was the next-highest ranked Georgia company. Fortune cited policies to help workers balance work and family life.

HomeBanc Mortgage, of Atlanta, was ranked 67th and was praised for cutting top executive bonuses when it had to lay off 60 people.

No. 73 Aflac, the Columbus insurer known best for the duck in its commercials, is a perennial member of the top workplaces list.

"Recently the insurer, already the largest onsite corporate provider of child care in Georgia, built a second center to accommodate employees' kids and lengthened hours to accommodate second-shift workers," Fortune said in its roundup.

Memorial Health, a Savannah-based hospital, ranked No. 91, in part for awarding bonuses to workers who are rated highly by patients.

Synovus, Aflac's financial services neighbor in Columbus, also makes a repeat appearance at No. 98.

Others on the list of best Georgia workplaces include companies with headquarters in other states but significant operations here.

They include Bright Horizons, an onsite child care firm, and CarMax, the auto dealer.

Nationally, Google tops all U.S. companies as the best place to work — one reason it gets 1,300 resumes per day, Fortune said.

It's followed by biotech firm Genentech, which gives workers a six-week paid sabbatical for every six years of work; and Rochester, N.Y.,-based grocer Wegmans Food Markets.

Aflac Insurance

Aflac Incorporated (NYSE: AFL, TYO: 8686 ) is an American insurance company that acts as a management company; overseeing the operations of its subsidiaries by providing management services and making capital available. It derives most of its revenue from supplemental health and life insurance.

[edit] About AFLAC

AFLAC was founded by three brothers, John, Paul, and Bill Amos, in 1955 in Columbus, Georgia as the American Family Life Insurance Company (not to be confused with American Family Insurance). The company's corporate name was changed to American Family Life Assurance Company, then in 1990 the acronym AFLAC was formally adopted as the legal name. The official name on the firm's Web site, and for legally selling insurance, is the American Family Life Assurance Company of Columbus.

Aflac has three realms of operations: New York State, the rest of the United States, and Japan (where the term "American Family" is still used in commercials).

At the end of 2005, the corporation's total assets were more than $56 billion. Aflac offers insurance coverage for accidents/disabilities, cancer, short-term disabilities, hospital intensive care, hospital confinement indemnity, long-term care, hospital confinement sickness indemnity, long-term care, specified health event, life, vision, and dental. In the United States, Aflac caters mainly to businesses (specifically business owners, for their employees), and the company's trademark is that these employee benefits and insurance policies come at no cost to the business owner whatsoever.

In 2005, the logo was changed to incorporate its famous duck, which features prominently in its advertising.
Aflac's old logo
Aflac's old logo

[edit] Aflac Duck

The Aflac brand has developed wide recognition in recent times with commercials starring the famous Aflac duck (with Gilbert Gottfried providing the voice) on television which started airing in December of 1999. The duck concept, as well as all of the commercials to date, were created by The Kaplan Thaler Group, an advertising agency based in New York City. Struggling to come up with a concept to make the big but relatively obscure insurance company's name memorable, art director Eric David stumbled upon the duck idea by walking around at lunchtime while uttering "Aflac, Aflac" and realizing how much it sounded like a duck's quack. The Aflac duck character has now starred in many different commercials, due in part to the company's raised assets in the years since his introduction.
The Aflac duck
The Aflac duck
Jon Stewart mocks Iowa Governor Tom Vilsack's name on The Daily Show.
Jon Stewart mocks Iowa Governor Tom Vilsack's name on The Daily Show.

The effect is created through a combination of footage of real ducks, CGI effects, and life-like puppets for close-ups. Most commercials feature the people discussing the short-term disability insurance that Aflac provides but with the people unable to remember the name of the company and the duck "quacking" the company name to jog their memory. The duck also has an explosive temper, which leads him to angered outbursts that invariably backfire on him. Misfortunes befalling the Aflac duck include falling into the Grand Canyon, getting hit by a train, sliding off a snowy rooftop and right onto a snowman, getting placed on an intense roller coaster, and having a car fall on him. It seems that there is only one person who ever sees the duck, a character played by Earl Billings. This character was in many of the earlier ads along with the duck. The character, however, has never spoken during the ads.

There have also been some celebrities to star in the ads, such as Chevy Chase, Yogi Berra, Donald Trump's wife Melania Trump, and the United States Olympic synchronized swimming team. (Berra's ad takes place in a barber shop and features three new Yogiisms:

"It's the one you really need to have. If you don't have it -- that's why you need it"
"If you get hurt and miss work, it won't hurt to miss work"
"They give you cash, which is just as good as money."

(Technically speaking, they were intentionally conceived as Yogiisms, and thus they aren't "true" yogiisms.)

Actor Ben Affleck has continually been harassed by fans and others because his name is so close to the duck. He mentioned it in a Tonight Show with Jay Leno episode either in 2000 or 2001 that ..."he would have drunk women approach him and yell out 'AFLAC!'." This was mentioned in VH1's 25 Greatest Commercials in 2003. AFLAC's advertising agent called him about Affleck advertising for AFLAC, and the actor left the agency a message that ... "you guys are killing me!"

The duck has even appeared in Lemony Snicket's A Series of Unfortunate Events, although instead of saying 'Aaaa-Flack!', it just says 'Aaaaa!' Aflac also did a commercial advertising both Aflac and "Lemony Snicket's A Series of Unfortunate Events." In the movie, the duck appears in the scene where the stove falls on the boat. The Aflac duck also appears in commercials in Japan, though with a slightly different voice quacking "Aflac!"

[edit] Awards

Aflac has been included in Fortune magazine's listing of America's Most Admired Companies for six consecutive years. In January 2006, Aflac was included in Fortune magazine's list of the 100 Best Companies to Work For in America for the eighth consecutive year. Aflac was also included in Fortune magazine's list of the Top 50 Employers for Minorities in August 2005, and in September 2005, Aflac Japan was named the Life Insurance Company of the Year at the Asia Insurance Industry Awards, sponsored by the Asia Insurance Review.

Should Downtown Hartford Street Go Carless?

With new restaurants opening, an emerging residential population and more people taking to the streets of downtown, Hartford's vital signs are showing some vigor. After years on life support, now there is a pulse. One street that is showing a spike in activity is Pratt Street, and with it has re-emerged the question: "Should Pratt Street be a pedestrian street closed to vehicular traffic?"

For urban planners, this has been a fundamental issue of urban life or death. Jane Jacobs took some 450 pages to make a case for a mix of foot and vehicle traffic in her landmark book "Death and Life of Great American Cities." As America surged forward into the era of urban renewal, many a street was closed and many a plaza built. The vision of the modern-day planners was that once the vehicles were removed, pedestrian life would flourish. Sometimes it worked, but more often than not it didn't.

Witness our own Constitution Plaza. When Front Street was demolished to make way for this plaza in the air, above the noise and traffic of the streets below, the hustle and bustle of street life went with it.

Pratt Street had been Hartford's premier retail street for the better part of the 20th century. With the anchor stores of G. Fox and Sage Allen at the end of the street on Main, Pratt Street offered an abundance of small shops of all kinds. The success of Pratt Street is evident in its architecture. Virtually all the buildings offered second-story display windows. Hartford did and could support two levels of shops!

By the time 1990 rolled around, Pratt Street was in sad shape. Aetna's realty company, under the leadership of William Russell, committed to build a new building at 242 Trumbull St. that extended along the north side of Pratt Street. In the process, Aetna agreed to restore and rebuild the storefronts that fronted on the north side of Pratt Street. As part of the project, Aetna and the Downtown Council stepped up and agreed to rebuild Pratt Street itself with brick and granite pavers, period lighting and an entrance arch at Trumbull Street.

Our firm, SmithEdwards Architects, was hired to do this design work, and we were asked to grapple with the car-pedestrian issues: Should Pratt Street be pedestrian only, with the cars and parking gone? Should it continue as a city street like the other downtown streets, open to traffic and providing street parking? Should it be some combination of both?

Our answer was solidly in the Jane Jacobs court. We believed that it was important for the street to have both vehicles and pedestrians. We wanted to maintain the dynamic tension between the two that is part of the urban mix. Let the street be open to vehicles with limited parking. But it was imperative that the street feel - through its design, paving, lighting and street furniture - like it was really a pedestrian way.

To that end, our original design showed a curbless, brick-paved street that extended from building face to building face. Pedestrians would feel encouraged to walk in the street, and drivers would know they had to proceed ever so slowly. As we went to pull the building permit to start construction, the city's corporation counsel intervened and said that, for reasons of liability and public safety, all city streets had to have curbs to separate the (pedestrian) sidewalk from the (vehicular) street. And that is the way Pratt Street is today.

How can Pratt Street be improved? The missing piece is a well-conceived and tenaciously implemented management plan.

Let's hope the newly established Downtown Business Improvement District can deliver this service. First, repair the street. Replace the missing bricks and granite pavers, not with blacktop, but with materials to match the original. Replace the missing trees and broken tree grates, and repair the gateway arch.

Most important, develop a plan to control vehicular traffic. Ban the 18-wheelers - they are just too big to navigate the street.

Regulate deliveries to early-morning hours. Strictly enforce short-term street parking, and close the street to traffic on a seasonal basis at lunchtime, after work and on weekend evenings. The goal should be to have the restaurant, cafe and retail life spill into and take over the street at these predetermined times.

The larger goal for all the downtown is to improve the now uninviting pedestrian experience.

Aetna Introduces New Health Insurance Options For Individuals

Aetna (AET) announced that it is selling health plans for individuals and their families throughout the state of Missouri.

With the new Aetna Advantage Plans for Individuals and Families, consumers will be able to purchase health insurance directly from Aetna or through independent insurance agents or brokers. The plans offer affordable, comprehensive health coverage for a broad array of commonly used healthcare services, and provide online information tools to help consumers make informed healthcare decisions and lead healthy lifestyles.

Individuals may choose from among five standard PPO plans, two high-deductible health plans compatible with health savings accounts, two hospital plans and an optional dental PPO plan. Each Aetna Advantage Plan is also available on a child-only basis, so that parents can obtain health coverage for their children, even if no other family members enroll in the plan.

"Nearly 700,000 people in Missouri are without health insurance - that's 12% of the state's population," said John Stockton, Aetna's market head in Missouri. "Aetna believes that making health plans available for individual purchase, along with the coverage options we offer through employers for part-time and seasonal workers, will help begin to turn these statistics around."

According to Laurie Brubaker, head of Aetna Individual Markets, "People's changing priorities and life circumstances determine the type of healthcare coverage they need. That is why we designed Aetna Advantage Plans to address the unique needs that arise during particular stages in life such as graduating from college, getting married, raising a family, becoming a sole proprietor of a business, being between jobs or retiring early. Individuals can log on to Aetna's website, choose the health insurance plans that best fit their current healthcare needs, receive price quotes and apply online."





Aetna is offering individuals and their families five standard PPO plan designs. These plans offer members the freedom to go directly to any doctor, hospital or healthcare professional, including specialists, for covered services with no referrals required. If a member chooses a healthcare professional from Aetna's extensive network of participating physicians and hospitals, out-of-pocket costs will be lower. The plans require no deductibles or claim forms for in-network doctor office visits.

All standard PPO plans feature coverage for routine checkups and preventive care, specialty care, chiropractic care, hospitalization and surgery, diagnostic testing and emergency care, subject to applicable copayments, coinsurance and deductibles. The plans also include prescription drug coverage, subject to deductibles and copayments, with no deductibles for generic prescriptions.

Aetna, Memorial Hermann strike new deal

Aetna has reached an agreement for a long-term contract for all of Memorial Hermann's hospitals and outpatient facilities in Houston.

As such, Aetna members can continue to receive services on an in-network basis at Memorial Hermann facilities throughout the Houston area.

Among the health care facilities included in the new contract agreement are: Memorial Hermann Medical Center; Memorial Hermann Southwest; Memorial Hermann the Woodlands; Memorial Hermann Southeast; Memorial Hermann Northwest; Memorial Hermann Memorial City and Memorial Hermann Heart & Vascular Institute SW.

Aetna (NYSE: AET) has approximately 9,023 physicians and 100 hospitals participating in its Houston network, serving a local membership of approximately 786,400.

Aetna Insurance

Aetna, Inc. (NYSE: AET) is an American diversified health-care benefits company, providing a range of traditional and consumer directed health care insurance products and related services, including medical, pharmacy, dental, behavioral health, group life, long-term care, and disability plans, and medical management capabilities. It is the direct descendant of Aetna Insurance Company, of Hartford, Connecticut, which issued its first life insurance policy in 1850, a full thirty years after it had been chartered to enter the business.

Aetna merged with U.S. Healthcare — 1996. Aetna was one of only eleven companies to earn a 100% score on the Human Rights Campaign Corporate Equality Index in 2002, the first year of the survey. It has maintained this rating in 2003 and 2004.


[edit] Aetna membership

Aetna covers health care, dental, pharmacy, group life, disability, and long-term care insurance and employee benefits.[1].

* 14.65 million — medical members
* 13.03 million — dental members
* 9.34 million — pharmacy members
* 13.68 million — group insurance members
* 700,000+ — health-care professionals
* 418,000+ — primary-care doctors and specialists
* 4,231 — hospitals

[edit] Key people

It was announced on January 4, 2006 that President Ronald Williams will succeed Dr. John W. Rowe as CEO as of February 14, 2006. Rowe will become Executive Chairman until he retires at the end of 2006. [2]

* Ron Williams - Chief Executive Officer
* Dr. John Wallis Rowe, M.D. - Executive Chairman
* Alan M. Bennett - Senior Vice President and Chief Financial Officer
* Meg McCarthy - Senior Vice President and Chief Information Officer
* William H. Donaldson - Former Chairman and Chief Executive Officer

UnumProvident Information

UnumProvident or UNM NYSE: UNM is Chattanooga, Tennessee based insurance company formed from the merger of two competing insurance companies, Unum, of Portland, Maine and Provident, of Chattanooga, Tennessee. It is currently the largest disability insurance company, worldwide.

[edit] Crimes and Complaints

UnumProvident has been branded an "outlaw" company by John Garamendi, the California Insurance Commissioner, and has been investigated by 48 states for allegedly "cheating the disabled," after which it entered into a multistate settlement agreement designed to correct past unacceptable practices. (All facts are referenced in links below)


UnumProvident is the industry leader in disability income protection and one of the top providers of supplemental benefits in the nation. In the United States, we've enjoyed 30 consecutive years of market leadership in group income protection:

* No. 1 in Group Income Protection1
* No. 1 in Individual Income Protection2
* No. 3 in Group Life3
* No. 1 in Group Long Term Care4
* No. 2 in Voluntary Benefits5

Our product lines include disability income protection insurance, supplemental benefits, life, and long term care.

With primary offices in Chattanooga, Tennessee and Portland, Maine, the company employs nearly 12,000 people worldwide.

Our Customers

* Choice of nearly one of every four U.S. employers who offer group disability insurance coverage providing income protection disability insurance to more than 11 million American workers6
* Nearly 1 million individual customers7
* Total 21 million insured policyholders worldwide

Our Commitment

* $6 billion in total benefits paid in 2005
* Nearly 412,000 new disability claims filed in 2005 with $4 billion in disability benefits paid

Our Service

* 92% of employers say UnumProvident is easy to do business with8
* Strong commitment to local sales and service, with 1,100 experienced associates in field offices across the United States

Our Communities

* $4.5 million in contributions to our communities in 2004
* $717,000 in scholarship donations from 1991 to present

Westfield Insurance Info

Westfield Insurance, the primary subsidiary of Westfield Group, is a multi-line provider of business property & liability insurance, personal lines insurance (including auto, homeowner's and specialty), agribusiness insurance, and surety bonds. Based in the small village of Westfield Center, Ohio, Westfield employs over 2500 nationwide including 1700 in their home office. Despite its rural location, it is the largest employer in rapidly-growing Medina County.

Westfield's products are distributed through a network of independent agents, and now the company has grown to become one of the top 50 property-casualty insurers in the U.S. It is also one of the nation's top-ten providers of farm insurance.

Westfield began as Ohio Farmers Insurance Company in 1848, when a group of farmers joined forces to insure their properties. In 2004, the company collected $1.4 billion in premiums. At the helm are President Roger McManus and Bob Joyce, Chairman & CEO of Westfield Group.

Insurance companies dismiss ruling

GAUTIER -- A federal judge's ruling against State Farm Insurance in a wind vs. water case did not seem to sway officials at Nationwide Insurance and Allstate Insurance, who said Friday they remain committed to defending their refusal of Hurricane Katrina claims.

Hundreds of Coast residents are suing the three companies, while many others have voiced dissatisfaction with the way their claims were handled after the storm.

A spokesperson for Allstate dismissed U.S. Judge L.T. Senter's Thursday order that State Farm pay the policy limits on a Biloxi couple's home that was destroyed during the storm.

"We do not believe yesterday's ruling will impact Allstate, since the decision involves the handling of one specific claim against State Farm," according to a statement that was read Friday by Allstate spokesperson Mike Siemienas during a telephone interview. "And previously, Judge Senter has upheld the validity of Allstate's flood exclusion, finding the exclusions bound in policy for water damage and for damages attributable to flooding are valid and enforceable policy provisions."

Nationwide spokesperson Joe Case said his company is reviewing the implications of the judge's ruling.

"Nationwide does stand by its assessment of Katrina claims and remains committed to vigorously defending the flood exclusion language in our homeowners policies," Case said Friday.

While the companies' comments are no surprise to Frank Corder, chairman of the Pascagoula Economic Development Advisory Council, he worries what they will mean for the city's future.

"Most people believe the ruling is true, and they'll support and fight for the ruling," Corder said. "As far as how much help it will be for Pascagoula, who knows? There's got to be some relief somewhere, or it will impact economic development."

Senter ruled against State Farm after the company could not prove how much storm surge damaged the home of Norman and Genevieve Broussard.

A jury then awarded the couple $2.5 million in punitive damages, but State Farm appears ready to continue the battle.

"I'll reiterate our disappointment and surprise by the judge's ruling and jury's damage award, and that we'll likely appeal," State Farm spokesman Phil Supple said Friday.

Attorney General Jim Hood, who has been negotiating with five unnamed insurance companies he sued in 2005, said Thursday's ruling made him hopeful for a change of heart by an industry that has been criticized for hurting south Mississippi's recovery efforts.

But Pascagoula resident Delores Early, who is suing Nationwide for refusing to pay for flood damage, said her insurance company's reaction to the ruling against State Farm "stinks."

Early said she doubts the ruling will help her case, since her home on Pascagoula's Inner Harbor was destroyed by Katrina's waters. She said her policy's flood exclusion language "was not made clear to us. We had read it, but it was played down by our agent. Sloughed off, like, We don't worry about that.'

"It's just awful, because (insurance companies) should try to work with us," Early said. "Most of us want help to rebuild, not vengeance. But obviously, their job is to make money for themselves rather than do a service."

Pascagoula resident Paul Leonard, who recently filed a counter appeal in his battle with Nationwide, said the ruling against State Farm couldn't hurt his case. He urged other residents to keep fighting.

"If you feel like you have a valid complaint, you should continue to fight that complaint for validation," Leonard said. "I don't see giving up and giving in."

Rev. Richard Young, an Escatawpa minister, labeled Allstate, Nationwide and State Farm "Scrooge. If the poor would come and ask for something, he would say, Humbug. Get away.' He had no conscience. I might not be able to get no insurance, but what I'm saying is right."

Of the Broussards' $2.5 million award, Young said, "It may be a long time before they see that money. Those people who sued O.J. Simpson got $33 million and haven't seen any of it. Don't you think (State Farm) got enough money to outwait the poor? Where are these people awarded monies going to live in the meantime?"

Of State Farm's reported negotiations with Hood that could result in the reopening of thousands of cases, Supple said, "We continue to talk with all parties involved to achieve a resolution that is a fair, prompt, and efficient."

"We can neither confirm or deny whether Nationwide is engaged in any type of settlement talks in any litigation," Case said.

Siemienas said Allstate "is not in contact with the Mississippi Attorney General."

Early and Corder are hopeful for federal regulations of the industry, which Rep. Gene Taylor is pursuing. Sen. Trent Lott has also vowed to do the same.

Young, who declined to name his insurance company but said he's satisfied with its service, called on the state to hold companies accountable.

"(Companies) been doing this so long, that to them, it's business as usual," Young said. "It has not hit them that something else has happened and there's a new day. And I think that if they're not going to insure everything, Insurance Commissioner George Dale should issue them a letter stating that they can't insure nothing. You either insure it all or don't do business in Mississippi."

Get Affordable Health Care

Find out exactly what benefits are provided and how soon they would begin as a part of your health insurance plan for your job. Find out exactly how long you will be able to keep your affordable health insurance coverage after you leave your job or are terminated. Offering more than a band-aid is a must in this world of competitive health insurance plans at low rates. As a general rule of thumb, health insurance costs are rising across the nation and many people don't feel they can afford it today.

Dread diseases is generally a part of your health insurance policy, but usually covered at an additional rate or charge. Affordable health insurance comes in very handy with all the diseases of the world of today and many cures being so expensive. Affordable health insurance supplied by your company is actually a very good reason to stay with a huge company with great benefits. A health insurance program is designed to save its members from costly medical expenses that might come unexpectedly from a severe illness.

Affordable health insurance may sometimes be supplemented by the state sponsored health plans to make the benefits even better for those in basic income brackets. A health insurance plan is probably the least expensive way to visit the doctor in the long run if you are plagued with chronic illness. As a universal rule of the future, it is pretty certain that health care costs will continue to rise without affordable health insurance. Affordable health HMO plans are very affordable with low monthly fees, but you usually have to choose a primary care physician from a list of doctors provided by the plan. As long as you can't see the future, you may have health insurance to protect against the possible health problems that might happen. As long as you can get to a local division of family services in your state, you should be able to ask about affordable health insurance for your family.

Affordable health HMO plans might be great if your desired doctor already participates with your plan or is willing to join it. Affordable health insurance is a necessity in most families with several children who are often getting sick or have any type of routine medical issues. Find out exactly what the hidden costs may be when dealing with affordable health insurance to make sure you understand how it works. Granting more than a nice salary is important with the cost of living increasing and affordable health insurance being a detail topic as well. Although the health and life insurance are both considered insurance, they are not the same thing when you really look at them.

Unitrin Direct Auto Insurance

Type Public
Founded 2000
Headquarters Vista, California, USA
Industry Insurance
Products Insurance
Revenue $221.3 Million USD (2005)
Employees 600
Slogan The Right Choice is Simple
Website www.unitrindirect.com

Unitrin Direct Auto Insurance is a direct to consumer auto insurance writer headquartered in Vista, California.

[edit] History

Unitrin Direct was founded in 2000 as a subsidiary of Unitrin, Inc. (NYSE: UTR).

In 2002 Unitrin Direct acquired eKemper and combined the business under Unitrin Direct.

[edit] States

Insurance is currently available from Unitrin Direct in the following states: Arizona, California, Colorado, Connecticut, Georgia, Florida, Illinois, Indiana, Maryland, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oregon, Pennsylvania, South Carolina, Texas, Virginia, Washington, and Wisconsin.

Shop Around for the BEST Auto Insurance Rates

Shopping your auto insurance is quick and easy and you may even save hundreds of dollars per year. It really pays to check auto insurance prices with several companies on a yearly basis. You might find a lower rate and you may even find a special discount as some insurance companies offer such things to new customers.

Where you live is a big influence on the cost of your auto insurance. If you have a little time and the determination you will probably be able to find a cheaper insurance but you have to be willing to research it. One of the best places to look for affordable auto insurance is the Internet. We always will have to deal with auto insurance in our family budgets so it pays to become well informed.

auto insurance is insurance that provides protection against losses incurred during a car accident. But how much car insurance is enough? Although you have to have auto insurance don’t pay more than you have to for good coverage. auto insurance is a major cost of owning and driving a vehicle and is required by all licensed drivers. Many of us do not know how to find the best rates available.

That being said, don’t be cheap about the auto insurance you purchase, because as in other purchases you get what you pay for. All auto insurance is not equal. Do some research, ask a lot of questions and then decide what type of auto insurance is right for you. Shopping for auto insurance is easier now that many companies have fully interactive websites. Because there are so many companies offering online auto insurance the online discount offers have increased dramatically.

It's worth shopping around online for auto insurance today. Look for sites that offer multiple quotes to speed up comparison shopping such as:
"We Shop Around For You, And Come Back With the Top 5 Quotes". We recommend you get at least 3 quotes to compare. These sites definitely will make your life easier but you can still go directly to the auto insurance companies’ websites to look for quotes or to do research. There are also sites that rate auto insurance companies, based on massive consumer surveys. These will definitely point you in the direction of the best policy for you. It may sound like a lot of bother to explore all of these possibilities but it will pay big dividends over the years.

Report claims insurance companies making big bucks

A consumer group says insurance companies are reaping huge profits at the expense of its policyholders. The Consumer Federation of America claims insurance companies are charging too much and paying out too little and that the big insurance companies are turning a better profit than the stock market.

"The insurance industry carefully cultivates a perception that they're an ultra high-risk business requiring excessive returns and huge premiums to fight off the onslaught of catastrophes," says J. Robert Hunter of the Consumer Federation of America.

The watchdog group says when when a series of massive hurricanes battered the U.S.back in 2005, many residents lost almost everything but that the insurance industry reaped forty-eight billion dollars in profit at the expense of consumers.

The Consumer Federation of American report says despite hurricane activity, the industry enjoyed record profits in 2004 and 2005 and that profits rose to unprecedented heights in 2006 (over $30 billion dollars).

The report also says many homeowners are paying too much for property and casualty insurance and the insurance companies often under pay on claims.

"Part of it is gouging of course because we're seeing loss ratios in place of thirty percent in homeowners and things like that," says says J. Robert Hunter of the Consumer Federation of America. "It's obviously grossly excessive."

Larry Coffin of Savannah had never heard of the report of the Consumer Federation of America. But he did talk to me about his insurance coverage and rates, saying he's very satisfied with his service. " I've been with them for about 25 years and I have nothing bad to say about them, Coffin says. " I think they're terrific, they've been fair in any kind of claim I've had."

June Batiste was more inclined to believe the report. "Yes, we are we're paying too much for insurance," she told me. Batiste also says she believes most profits are put into the "pockets of the insurance companies, period."

The Consumer Federation says insurance companies are hanging on to huge surpluses but the insurance industry tells a very different story.

"There are years when insurers lose money and there are years when insurers make money," says Carolyn Gorman of the Insurance Information Institute. Gorman also says with forecasters predicting another decade of super storms for the East Coast and Gulf Region, they have to be ready for big losses.

"Some of them could reach 100 billion dollars so it is very important for the insurance industry to have money to pay claims," Gorman says.

But Lemont Darville who recently moved to the Savannah area from south Florida has a question for the insurance industry. "What have they done with my money for the last 20 years, that's what I want to know?"

Darville doesn't believe insurance companies are "holding" any money for future claims, but rather paying it out to shareholders yearly and worrying about what they'll do for claims the next year.

The report suggests that whatever insurers are doing, they're doing less of it. The report says the money paid out in claims is lower than it's been in decades. It says for the top ten insurers, losses paid as benefits to consumers are an estimated 52 percent of premiums collected in 2006. The report also says Allstate appears to be paying much less than half of the premiums it collects.

Allstate emailed WSAV this statement:

"We are managing our homeowners insurance business for the benefit of all policyholders and believe it is unfair for auto and life insurance customers to subsidize homeowners customers as is suggested by this report. As far as auto insurance is concerned we have the most innovative product in the marketplace today in your choice auto, are among one of the most sophisticated companies in pricing and are continuing to grow our auto insurance business. With some 1,200 property casualty insurance companies doing business in the US, and more than 17 million households choosing Allstate, they are recognizing the great product and price value they get from Allstate. What's best for the American insurance consumer is a free and competitive marketplace and not one that would be regulated in the way this report would suggest."

But Darville isn't interested in hearing from the insurance companies, he's made up his mind. "I think the insurance company for years have been making a tremendous profit off the public and I'm amazed the government has allowed it to happen," he tells me. "It's outrageous."

The Consumer Federation of America wants state and federal regulators to pay more attention and get tough when it comes to the issue of premiums versus payouts. The group is also calling on Congress to make it easier for states to join together in creating disaster funds that can protect their residents.

Tesco reportedly venturing into private medical insurance

The Tesco Personal Finance division of supermarket chain Tesco is reportedly making its first venture into health insurance. According to The Scotsman, Tesco will offer products up to 32% cheaper than comparable products already on the market, in partnership with AXA PPP Healthcare.

The newspaper has reported that Tesco aims to shake up the private medical insurance (PMI) market, undercutting leaders such as BUPA and Standard Life Healthcare by using its vast distribution network to introduce competitive health insurance that combines value and simplicity.

Jeremy Sutton, head of savings and investments at Tesco Personal Finance, commented: "Our customer research suggests that perceived high prices, complicated products and complex medical questions have been major stumbling blocks to buying health insurance. Our approach will open up the market to people who want the choice that health insurance offers."

According to the Scotsman, Tesco will offer either premium or core coverage, both of which will be easy to purchase, as customers under 76 will not need to answer any questions. Tesco will also use moratorium underwriting to keep the application process short.

This means that the policy will not cover any condition where the customer has sought advice, medication, or treatment in the three years before joining the plan. If the policyholder is unaffected by the condition in the following two years, it will then be covered by the plan.

According to the newspaper, if customers prefer to be fully underwritten, there will also be the option of completing a medical questionnaire to ensure more comprehensive coverage. Customers will be able to accumulate a no claims discount of up to 55% over four years.

Steve Flanagan, commercial director of BUPA, has been skeptical about Tesco's move, however, stating that the use of moratorium underwriting could cause problems. According to The Scotsman, he stated: "This could cause brand issues if people don't know what they aren't covered for and their claims are turned down."

Furthermore, Julian Ross of Standard Life Healthcare, is quoted as commenting: "Tesco's products are at the more budget end of the market, but the average PMI customer tends to be over 50 and pretty discerning."

Do Insurance Profits Come at Consumer Expense?

A few weeks ago, Allstate said it would stop offering homeowner's policies in parts of Maryland and Virginia.

Fortunately, those areas still have many other insurers to choose from. But Allstate's move also brought home the ongoing debate over how insurers have acted in the wake of recent disasters, including Hurricanes Katrina and Rita.

On Monday, a coalition of consumer groups led by the Consumer Federation of America issued a report arguing that insurers are charging higher premiums, paying lower claims and reaping greater profit, even as they are jacking up rates on many coastal homeowners or refusing to renew their coverage.

According to CFA's director of insurance and the report's main author, Bob Hunter:

* Insurers are so well capitalized they have had no trouble covering losses from recent natural disasters such as the four hurricanes that struck Florida in 2004 and the double whammy of Katrina and Rita in 2005, which generated $61.8 billion in losses.

* In 2006, insurers made even more money, thanks to the quiet hurricane season. Yet, they also raised costs on coastal consumers and cut back on coverage, even in areas far from the Gulf Coast states.

"Everyone wants a profitable, strong insurance industry but at some point it becomes excessive," Hunter said.

The insurance industry doesn't dispute that 2006 was a very good year. It does, however, disagree over whether its recent prosperity comes at a cost to consumers. To the contrary, industry reps argue, insurers' gains can only help consumers by rebuilding reserves to cover losses from future catastrophes, which they have no doubt are coming. In 2006, insurers had a chance to "fix the roof while the sun was shining," as Insurance Information Institute chief economist Bob Hartwig put it.

According to Hartwig, much of the profit the industry made last year was generated by businesses other than property insurance and in non-hurricane-prone portions of the country, and that money was, in turn, used to boost by $55.7 billion insurers' "cumulative claims paying resources in 2006."

Hartwig contends insurers have little choice but to squirrel away cash because ratings agencies and Wall Street demand they do so. Ditto for pulling back from areas insurers consider risky, such as the Florida coast and, uh, parts of Prince Georges County. Shareholders and ratings agencies are not going to stand for insurers pumping money into business that won't turn a profit, such as insuring coastal property owners.

"To expand presence in Florida would require a tremendous amount of capital and the opportunity for profit is nonexistent in the long run," Hartwig said.

Do you think consumer advocates are unfairly castigating insurers for making money? Do you think insurers should do more to help coastal homeowners?

Congress mulls how to expand health insurance

WASHINGTON - The new Democratic-led U.S. Congress on Wednesday began discussions on how to bring health coverage to millions of uninsured Americans, and heard warnings not to undercut efforts by individual states.

Since killing former President Bill Clinton's controversial proposal for universal health coverage in 1994, Congress has not fixed the problem of growing numbers of uninsured Americans and runaway health care costs.

With no progress at the federal level, states including California and Massachusetts have taken steps on their own. Nearly 47 million of America's 300 million people have no health insurance.

Sen. Edward Kennedy, a Massachusetts Democrat who favors guaranteed health insurance for all Americans, called a hearing of the Senate Committee on Health, Education, Labor and Pensions to discuss how to proceed.

Kennedy took over as chairman of the committee after Democrats regained control of Congress in November elections.

Kennedy said senators need to find common ground to deal with the problem, and noted that even if lawmakers agree on broad ideas "the devil's in the details." Kennedy said his preferred path was to extend the Medicare health insurance program to all Americans.

Senators from both parties agreed on the gravity of the problem if not the solution.

"The great hope is this is not an insolvable problem for this country," said Republican Sen. Tom Coburn of Oklahoma, who is a doctor.

'DO NO HARM'

The panel heard from witnesses from the insurance industry, business and labor. Over and over, the senators were told that Congress should not interfere with experimentation at the state level.

"Do no harm," said Peter Meade, executive vice president of Blue Cross Blue Shield of Massachusetts. "This means not advancing legislation that would undermine the efforts of the states like Massachusetts, California and Vermont that are trying to decrease costs, increase quality and improve access to health care."

Members of the committee seemed to agree.

California Gov. Arnold Schwarzenegger announced plans on Monday to require all Californians to have health insurance and to extend coverage to the state's estimated 6.5 million uninsured residents.

Under the plan, insurers would be unable to deny coverage based or age or pre-existing health conditions, healthy lifestyles would be rewarded, and the state would expand its existing health insurance for the poor.

Massachusetts last April became the first state to pass a law requiring every resident to have health insurance as part of a broader initiative to expand coverage.

California aims to join Massachusetts, Maine and Vermont in trying to provide near-universal coverage as health care costs skyrocket, the ranks of uninsured grow and employers cut benefits.

Witnesses at the hearing also urged the senators to extend a program that helps states expand health coverage to children in families earning too much to get Medicaid health insurance for the poor but not enough to buy private insurance.

Separately, a bipartisan group of lawmakers introduced legislation opposed by the White House that would allow prescription drugs to be re-imported from Canada, where they typically are much cheaper.

"Currently, the big drug manufacturers can monopoly price their medicines here, and as a result, American consumers pay the highest prices in the world for prescription drugs," said Democratic Sen. Byron Dorgan of North Dakota.

More than 100 people charged with car insurance fraud in LA

LOS ANGELES - More than 100 people were indicted in what authorities say is one of the state's largest cases of auto insurance fraud for allegedly bilking companies out of hundreds of thousands of dollars, officials announced Wednesday.

In the scam, employees at a dozen San Gabriel Valley law firms would steer accident insurance claim cases to a chiropractic clinic, prosecutors said. The clinic in turn would overbill insurance companies by signing off on claims that inflated the number of visits for treatment, with payouts shared among clients, clinics and the firms.

Total losses were hard to estimate, but investigators said insurance companies were defrauded about $500,000 during the two-year probe.

Los Angeles County District Attorney Steve Cooley said the defendants were "fueled by greed."

"People who make a career out of defrauding insurance companies will be exposed and will suffer the consequences," he said.

The number of defendants - 101 in all - made it the largest auto insurance fraud case in Los Angeles County and one of the largest in California, authorities said. Thirteen are office administrators who allegedly worked as "cappers," two are attorneys and 86 are insurance claimants.

Indictments unsealed last week charged about 200 counts of insurance fraud, 64 counts of soliciting fees for referrals - known as capping - and three counts of unauthorized practice of law. One defendant, Jorge "JC" Yang, faces 117 counts alone.

The investigation itself was opened in September 2004 after an informant at a clinic complained to authorities about employees at law offices who allegedly referred cases in exchange for fees and kickbacks from chiropractic centers. Throughout the two-year probe, an investigator worked undercover as an office manager at a clinic in Alhambra.

At least 88 people have been arrested, with the rest either overseas or at large. All but a handful have posted bail. Arraignments were scheduled through next week.

According to state Insurance Commissioner Steve Poizner, insurance fraud of all types totals about $15 billion a year.

The investigation was conducted by the district attorney's office, the California Highway Patrol and the state Department of Insurance.

State Farm Insurance

State Farm Insurance Companies are a group of large US insurance and financial services companies started in 1922 by former farmer George J. Mecherle (pronounced Ma-herl). The corporate headquarters is in Bloomington, Illinois.


[edit] History

State Farm in 2004 had the 3rd worst record of any insurance company in the State of CA when it came to the number of justifiable complaints. This information is from the CA Department of Insurance.

State Farm was founded as a mutual automobile insurance company owned by its policyholders. Despite the company's name, State Farm did not initially begin as a crop insurance company. Specifically, State Farm specialized in auto insurance for farmers. Founder George J. Mecherle believed that since farmers drove less and had fewer losses than city drivers, they should pay less for insurance. His idea was popular with farmers and made his new company successful.

Since its inception, State Farm has expanded its services into other popular types of insurance, such as homeowners and life insurance, in addition to banking and financial services.

State Farm has grown to include 79,200 employees and more than 16,700 agents servicing 71.6 million policies in the United States and Canada.

Edward B. Rust, Jr. is chairman of the board and chief executive officer of State Farm Mutual Automobile Insurance Company, Bloomington, Ill. He is also president and chief executive officer of State Farm Fire and Casualty Company, State Farm Life Insurance Company and other principal State Farm affiliates.

[edit] Criticism

Hurricane Katrina's unprecedented storm surge had a severe impact on resident's of the gulf coast of Louisianna, Mississippi and parts of Alabama. Thousands of homeowners lost their homes and their way of life. Unfortunately, many failed to purchase adequate insurance. According to news accounts, fewer than a quarter of gulf coast residents had purchased flood insurance through the National Flood Insurance Program. While insurers (including State Farm Insurance) paid out billions to policy holders in the hurricane's aftermath (State Farm paying more than $5 billion itself), individuals have pursued lawsuits in attempt to recover losses which they claim should be covered by their insurance contracts.

One major issue pursued in these cases has been whether insurance contract exclusions for water damage are valid and enforceable. In a much-covered lawsuit Paul and Julie Leonard v. Nationwide Mutual Insurance Company, U.S. District Court Judge L.T. Senter, Jr. ruled that such provisions were valid and enforceable. However, the judge invalidated an exclusion for wind damage that occurs in conjunction with water damage, so the Leonards were able to recover for losses due to wind. Similarly Sen. Trent Lott (R-Miss.) and Rep. Gene Taylor (D-Miss.) have pursued their own personal claims against State Farm Insurance and have pursued legislative changes. State Farm, for its part, has said that it has settled more than 84,700 home, commercial and personal property claims and paid out more than $1.1 billion in Mississippi.

Meanwhile, Kerri and Cori Rigsby, two former independent adjusters (working for E.A. Renfroe)who worked for State Farm Insurance exclusively for 8 years have claimed that State Farm Insurance supervisors systematically demanded that Hurricane Katrina damage reports be buried or replaced or changed so that the company would not have to pay policyholders' claims in Mississippi. Kerri and Cori Rigsby, say they have turned over thousands of internal company documents and their own detailed statement to the FBI and Mississippi state investigators. Per The Birmingham News (Dec. 12), U.S. District Judge William Acker, Jr. ruled "Moran and Rigsby clandestinely copied approximately 15,000 confidential documents off of State Farm's computer." Acker also ruled the women violated their employee agreement with Renfroe.


* Trent Lott Sues State Farm over Katrina Damage
* State Farm's Response to Hurricane Katrina
* VIDEO 20/20 Webcast Katrina Insurance
* ABC's 20/20 Mischaracterizes State Farm's Claims-Handling Process
* Profits for Insurers Are Soaring
* Sisters blow whistle on Katrina claims

* Judge Requires Return of Documents

[edit] CEOs
CEO Years Served
George J. Mecherle 1922 - 1937
Raymond Mecherle 1937 - 1954
Adlai Rust 1954 - 1970
Edward B. Rust, Sr. 1970 - 1985
Edward B. Rust, Jr. 1985 - Present

[edit] Financial services

Recently, State Farm has expanded into the financial services arena, such as banking and mutual funds. These are separate from its insurance products. This has expanded its competition beyond the traditional P&C insurance companies like Allstate, Geico, Progressive, Farmers Insurance, and USAA to include competition with leading banks and investment companies like Bank of America, Citi, JP Morgan Chase, Wells Fargo, Fidelity Investments, Charles Schwab, and eTrade.

[edit] Trivia

* State Farm is the nation's largest automobile insurance provider, covering one in every 5 vehicles in America.
* The well-known jingle ("Like a good neighbor, State Farm is there") is just the tag ending on a full-length song. The song was written by legendary American songwriter Barry Manilow in 1971.

[edit] External links

* State Farm's official website
* State Farm Bank
* State Farm's Youth Advisory Board official website


Categories: Companies established in 1922 | Banks of the United States | Companies based in Illinois | Financial services companies of the United States | Insurance companies of the United States | Mutual insurance companies | Bloomington-Normal, Illinois | Fortune 1000

Hood, State Farm close to Katrina settlement

GULFPORT, Miss. - Mississippi Attorney General Jim Hood and State Farm Insurance Company are reportedly close to agreeing on a settlement that will end hundreds of lawsuits.

The New York Times reports that the 639 lawsuits could be settled for $80 million, providing an average of about $125,000 to homeowners who filed lawsuits after flooding from Hurricane Katrina destroyed their homes.

The class-action suit claimed five insurance companies -- State Farm, Allstate, Nationwide, Farm Bureau and USAA -- were to blame for the flooding that destroyed billions of dollars worth of property. The companies argued that protection against flooding was not included in their policies but by federal flood insurance

A federal judge didn't agree, though, and remanded the case back to a state court. Afterward, Hood asked citizens to call their insurance companies and suggest a settlement.

The report quoted Washington lawyer Gary Thompson as saying, "They're willing to settle because they know they would have to go through a long, arduous journey examining each and every claim."

It also says that insurers already have paid $5.2 billion for damage to homes throughout Mississippi.

Safeco Insurance

Safeco Corporation (NYSE: SAF) is a major American national insurance company. It has naming rights to the Seattle Mariners' baseball stadium, Safeco Field.

Safeco was founded in Seattle, Washington in 1923 by Hawthorne K. Dent as the General Insurance Company of America, a property and casualty insurer, which name is still used by Safeco on some of its insurance products.[1] Thirty years later the company founded the Selective Auto and Fire Insurance Company of America, or SAFECO.

General Insurance's first headquarters were in downtown Seattle at the corner of University Street and Fourth Avenue. In 1936, it moved to the eight-story Brooklyn Building at the corner of N.E. 45th Street and Brooklyn Avenue N.E. in the University District.

General Insurance began to sell life insurance in 1957. Eleven years later the corporate name changed from the General Insurance Company of America to SAFECO Corporation. (The company 69 would end up changing the capitalization of its name from SAFECO to Safeco at the turn of the century.) Around the same time the company began to offer mutual funds and commercial credit (though precursors to the SAFECO Funds had been around since the 1930's).

SAFECO replaced the Brooklyn Building with the 22-story Safeco Plaza building in 1973. It is the tallest building in the city outside Downtown.

In 1997, SAFECO bought American States Financial Corporation to expand beyond the West Coast. Washington Mutual's WM Life Insurance Company was purchased the same year. Two years later SAFECO bought R.F. Bailey (Underwriting Agencies) Limited of London.

In the 1999-2001 economic downturn, these purchases put a severe financial strain on the company, and new management was brought in to restructure the company. Approximately 40% of the workforce was laid off in three separate waves over the next two years. Commercial credit operations were sold to General Electric in 2001, and on March 15, 2004, the company announced the sale of its most profitable division, the life insurance and investments business, to a group of private investors led by Safeco board members and Warren Buffett's Berkshire Hathaway Inc. and White Mountains Insurance Group, Ltd., incorporating as Symetra Financial Corporation. The same day, it was announced that Hub
Safeco Plaza
Safeco Plaza

International Ltd. was buying Safeco's insurance brokerage operations. Less than a month later, on April 12, it was announced that Mellon Financial Corporation would buy Safeco Trust Company, whose business is providing financial and estate planning services to individuals with over $1 million in assets. On August 2, the closure of Safeco Asset Management, the mutual-fund business, was announced.

During this restructuring, CEO Mike McGavick was the 11th highest paid executive in the Pacific Northwest.[2]

On April 6, 2005, CEO Mike McGavick announced that Safeco would be consolidating operations at either the University District "home office" campus or the newer Eastside campus in Redmond, pending negotiations for the sale of one or the other location. On January 19, 2006 it was reported that Safeco would sell its Redmond campus to Microsoft Corporation for $209.5 million[3]. Plans were announced for a new 125-foot office tower across the street from Safeco Plaza to house the approximately 1,300 Redmond employees. However, McGavick subsequently stepped down as CEO to run for the U.S. Senate. In a surprise move, his replacement Paula Rosput Reynolds announced on August 30, 2006, that the entire University District complex would be sold as well, to the University of Washington for $130 million[4]. Employees were told they would be moved to leased space in downtown Seattle. Some speculate this signalled the imminent sale of the company, although Safeco denies this.

The Progressive Corporation (PGR) Reported Results for November 2006

More Earnings

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* CNET Networks (CNET) Expects to File Restated Financial Statements by January 29th
* Material Sciences (MSC) Reports Q3 Revenues and Delays Filing 10-Q
* Sciele Pharma (SCRX) Raises FY06 Financial Outlook and Reaffirms FY07

The Progressive Corporation (NYSE: PGR) today reported the following results for November 2006:

Net premiums written = $959.2 million vs. $986.3 million for Nov. 2005.

Net premiums earned = $1,077.4 million vs. $1,073.1 million for Nov. 2005.

Net income Per share = $0.17 vs. $0.10 for Nov. 2005. (quarterly EPS consensus is $0.49 and revenue consensus is $3.26 billion)

In addition, on December 8, 2006, the Board of Directors confirmed, as previously announced, that we intend to use a variable dividend formula in 2007 to determine an annual dividend payout on our outstanding Common Shares, replacing the existing policy of paying quarterly Common Share dividends. The variable dividend payout is based on a formula which multiplies our annual after-tax underwriting income by both a Shareholder Gainshare Target, which is annually set by the Board, and a Gainshare Factor. At the December 8 meeting, the Board established 20% as the Shareholder Gainshare Target to be used in the 2007 dividend calculation.
Stocks Mentioned

PGR: $23.44
Change ($): -0.06
Change (%): -0.26
Volume: 2046700

Progressive Corporation insurance

The Progressive Corporation (PGR), through its subsidiaries, provides personal automobile insurance, and other specialty property-casualty insurance and related services in the United States. The company operates in three segments: Personal Lines, Commercial Auto, and Other-indemnity. The Personal Lines segment writes insurance for private passenger automobiles and recreational vehicles through both an independent agency channel and a direct channel. The Commercial Auto segment writes primary liability and physical damage insurance for automobiles and trucks owned by small businesses primarily through the independent agency channel. The Other-indemnity segment provides professional liability insurance to community banks, principally directors, and officers liability insurance. It also provides insurance-related services, primarily providing policy issuance and claims adjusting services in 25(?) states for Commercial Auto Insurance Procedures/Plans.

The company was co-founded in 1937 by Jack Green and Joe Lewis and is headquartered in Mayfield Village, Ohio. [1]


[edit] Industry Information

Progressive is the third-largest auto insurer in the United States, in terms of active policies, behind State Farm and Allstate and ahead of GEICO and Farmers. Progressive primarily offers its services under two brands: Progressive Direct® and Drive®. Progressive Direct is available through 1-800-PROGRESSIVE and [1] while Drive® is available through local independent agents.

[edit] Marketing and Operations

Progressive's marketing campaign is known for offering quotes of its competitors along its own quote. It is the first major insurer to offer auto polices through the phone and through the Internet.

Immediate Response Vehicles (IRVs) used by Progressive are specially modified Ford Explorers and Ford Escapes. Every major metropolitan area has a claim office while remote areas are serviced by independent adjusters.

[edit] Basis of Premium Charges

Itemized insurance quotes can be viewed on the company website and insurance policies can be purchased online as well. The website [2] allows the buyer to compare various coverage selections such as "minimum coverage," "economy coverage," "recommended coverage," "plus coverage," and a user defined "custom coverage." Insurance premiums quoted by the company take into account factors such as vehicle make and model, age and gender of driver and driving history. In many cases, "violations" found in the previous 36 months of driver history (39 months in New York), can result in an increase in premium. In rare cases a "not at fault accident," which is an event that police determined was not the fault of the driver, (such as a hit and run by another driver) can result in higher premium due to removal of an "accident and violation free" discount.

Metropolitan Life Insurance Company

MetLife, Inc. NYSE: MET is the holding corporation for the Metropolitan Life Insurance Company or MetLife for short. The firm was founded on March 24, 1868. For most of its life the company was a mutual organization, but it went public in 2000.

In 1981, the company purchased the building owned by Pan American World Airways (Pan Am). The building would be renamed the MetLife Building in 1992, after Pan Am went out of business. This building is currently the domiciliary headquarters of the company and is the location of its historic board room; the leadership of MetLife is based in Long Island City, NY. Until 2005 MetLife was headquartered at One Madison Avenue, a location that includes two buildings that include the MetLife Tower. The MetLife Tower was the world's tallest building at the time of its completion in 1909. MetLife in 2005 sold the former Pan Am building and the two buildings at One Madison Avenue—including the MetLife Tower. They own space in at least 30 buildings in the US and one proposed building in Mexico. The company also had offices on the 89th floor of One World Trade Center in the North Tower.

With its 2005 acquisition of Travelers Life and Annuity from Citigroup for $11.8 billion, MetLife became the largest life insurance company in the United States. Prior acquisitions included New England Financial (the New England) and General American Insurance (GenAm). MetLife is ranked #60 on the Forbes list of the "World's 2000 Largest Public Companies."[1]

The company's mascot is Snoopy, from the Peanuts comic strip. MetLife has used the Peanuts characters in its advertising for more than two decades. The company's current advertising is built around "Guarantees for the if in life." Previous taglines include "Have you met life today?" and "Get Met, it pays."

Nationwide to limit exposure along coast

One of the nation’s largest insurers plans to phase out windstorm coverage and not renew some personal property policies along the Texas coast, a decision that will affect hundreds of Galveston County consumers.

In what’s becoming a grim industry trend, Nationwide Mutual Insurance Co. on Friday said it would phase out windstorm coverage for about 1,000 homeowners, condominiums and other Texas customers in Tier 1 counties. Tier 1 counties are those closest to the water. The company cited storm exposure on the coast as reason for the change.

Of the 1,000 Nationwide Lloyds policies affected, 600 are in Galveston County.

The insurer also said it would not renew about 870 personal property policies on barrier islands, such as Galveston, and on peninsulas less than 2 miles across, such as Bolivar Peninsula.

Of the 870 non-renewals, about 600 are in Galveston County.

Nationwide also said it would not renew mainland policies within 2,500 feet of the Gulf of Mexico or its bays.

Nationwide will implement the changes in May.

Meanwhile, the insurer said it would assess a minimum 2 percent “tropical cyclone deductible” on all policies in Tier 2 counties, which will affect 44,000 policyholders. Harris County is in Tier 2.

The Columbus, Ohio-based company, which has more than 430,000 policies in Texas, said it would continue to offer non-windstorm personal property coverage in coastal markets.

Nationwide joins a legion of insurers who are breezing out of the windstorm market, pushing policyholders into an already crowded state windstorm pool, the Texas Windstorm Insurance Association.

In 2001, the windstorm pool had 68,756 policies.

Today it insures 144,999 policyholders in 14 high-risk counties, with a liability of more than $40 billion. More than half the liability is concentrated in Galveston and Brazoria counties, state officials say.

Nationwide said the move was necessary to “maintain long-term viability for our existing customers in Texas and across the country.”

Last year, State Farm Insurance said it would drop several thousand of homeowners and businesses in Galveston County when it stops insuring property on islands and near coastal waters.

State Farm, Texas’ largest insurer, also said it would drop policies on more than 20 apartment complexes and condominiums in Galveston.

In May, Allstate notified customers it would drop windstorm protection from homeowner coverage.

Allstate has 10,000 homeowner policyholders in Galveston County.

Lawmakers will take up issues of windstorm insurance availability and cost in the next legislative session, which begins Tuesday.

Nearly 20 Percent of Customers Consider Switching Auto Insurance Companies Following Their Most Recent Collision Claim, J.D. Power and Associates Repo

Nearly one out of every five customers considers switching insurance companies after experiencing the collision claim process, according to the J.D. Power and Associates 2006 Collision Repair Satisfaction Study(SM) released today.

The study examines three factors that drive customer satisfaction with the repair experience. In order of importance, they are: claims/estimation (62%); body shop (36%); and rental car (2%).

"Filing an insurance claim is a critical moment of truth that shapes a customer's overall perception of their insurer," said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. "Often, this is the first time they truly become familiar with their insurance policy. Misconceptions about what is covered by the auto policy, or what to expect during the claim and repair processes can lead to significantly lower customer satisfaction, which in turn increases the likelihood that the customer may consider switching carriers in the future."

The study finds that 7 percent of customers chose not to file a claim with their insurer after their most recent collision. Common reasons include: the insurance deductible was more than the cost of the repairs; concern that the carrier would increase the premium after the claim; or at the advice of their insurance agent.

"Before filing an insurance claim for minor damage, customers may want to first get an estimate for the cost of repairs," said Bowler. "If it's less than the deductible on the policy, the insurer will likely not cover any of the expense anyway."

Additionally, while more than 30 percent of auto insurance customers who chose not to file a claim after a collision feared their premium would increase, 62 percent of respondent who did file a claim more than six months prior to being surveyed indicate their premium has not been re-adjusted by their insurer.

With a score of 821 index points on a 1,000-point scale, Amica Mutual ranks highest in satisfying claimants with the collision repair process, receiving the highest ratings from customers in the claims/estimation factor. Erie Insurance and State Farm, respectively, follow Amica Mutual in the overall ranking. USAA, an insurance provider open only to the U.S. military community and their families and therefore not included in the rankings, also achieves a high level of customer satisfaction.

The study also finds that claimants whose vehicles are totaled rather than repaired are significantly more satisfied if their insurer gives them a clear explanation of why the vehicle is totaled and how they calculated the settlement amount. Nearly 85 percent of total loss claimants receive an explanation of why their vehicle is being totaled and how their actual cash value settlement is derived.

"The difference in satisfaction is primarily driven by how well the insurer manages the claims process, which is significantly longer for claimants experiencing a total loss," said Bowler. "However, when the damage exceeds $5,000, total loss claimants tend to be significantly more satisfied with their collision experience, perhaps due to concerns surrounding repair quality and diminished value of the vehicle."

The 2006 Collision Repair Satisfaction Study is based on responses from 5,752 customers who have had collision damage repaired on their vehicle or have had a total loss within the past 12 months.

Collision Repair Satisfaction Ranking
(Based on a 1,000-point scale)

Amica Mutual 821
Erie 809
State Farm 800
MetLife 787
ACSC 779
Industry Average 777
CSAA 776
Liberty Mutual 773
AAA Michigan Auto Club Group (ACG) 772
The Hartford 766
Nationwide 765
GEICO 765
St. Paul Travelers 753
Allstate 752
Progressive 751
Farmers 736
American Family 732
Safeco 731
21st Century 731
AIG 705
Mercury 703


**USAA 846

**Note: USAA is an insurance provider open only to the U.S. military
community and their families and therefore is not included in the
rankings.

Included in the study but not ranked due to small sample size, are:
Allied, Encompass and GMAC.





About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

Miss. Jury Hears Opening Statements in Katrina Suit Against State Farm

Even as the Mississippi attorney general negotiates a potential settlement with State Farm Fire & Casualty Co., an eight-person jury began hearing opening statements Tuesday in one of hundreds of insurance lawsuits filed by policyholders after Hurricane Katrina.
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By seating the jury of four women and four men to hear the lawsuit brought against State Farm by Norman and Genevieve Broussard, U.S. District Judge L.T. Senter Jr. rejected the insurer's bid to move the proceedings to Oxford, Miss., 300 miles from the Gulf Coast.

In court papers filed earlier, State Farm claimed it could not receive a fair trial in south Mississippi because the jury pool has been tainted by "media propaganda'' about the insurance industry's handling of claims after Katrina. Lawyers for the Broussards have argued that State Farm hasn't met the legal burden for showing that the case must be moved.

A second eight-person panel also was selected Monday for a second Katrina-related lawsuit involving State Farm that is scheduled for trial here later this month.

Meanwhile, State Farm, Mississippi's largest home insurer, is negotiating a multimillion dollar settlement in the state to resolve thousands of lawsuits and other disputed policyholder claims from Hurricane Katrina, people with direct knowledge of the negotiations told The Associated Press on Monday.

Lawyers for Bloomington, Ill.-based State Farm met with Mississippi Attorney General Jim Hood as recently as Friday to discuss a possible settlement, which would resolve a civil lawsuit Hood filed against the company for refusing to cover damage from Katrina's storm surge almost 16 months ago.

A mass settlement would be the first of its kind to follow the wave of litigation spawned by Katrina.

Hood, through a spokeswoman, declined to be interviewed. But he issued a statement that said: "I am working day and night attempting to get our coastal residents a fair shake in the insurance litigation. It would not help our negotiations to disclose any details at this time.''

Hood last month announced that he was trying to negotiate a settlement with several insurance companies, but he didn't specify which ones.

State Farm spokesman Phil Supple said that while no settlement has been reached with Hood, "we continue to talk and search for ways to bring these events to a resolution.''

State Farm says it already has paid roughly $1.1 billion for about 84,000 property claims in the state, not including flood insurance.

(Miss. Insurance Commissioner George Dale, speaking at an insurance industry forum in New York on Tuesday, confirmed that talks are in progress but said they "are not at a point of solution." He said news reports had "jumped the gun."

He told an audience at the Joint Property Casualty Innsurer Conference that he wants to make sure that lawyers do not "walk off with all the money," leaving policyholders with little.")

Many policyholders with damage, including those who had coverage from companies other than State Farm, contend that they received nothing or only small payoffs from their homeowner policies because insurers blamed their losses on storm surge, which is not covered, rather than on the hurricane's winds.

Hundreds of Mississippi homeowners have sued their insurance companies for refusing to cover billions of dollars in damage from Katrina's storm surge. The Broussards' case is only the second to be tried since the August 2005 storm destroyed or severely damaged tens of thousands of homes.

The Broussards, whose Biloxi home was reduced to a slab by Katrina, claim a tornado destroyed their home before any flooding.

As jury selection began Monday, Senter dismissed six potential jurors who said they could not be impartial in the case.

"The object is to find eight fair and impartial jurors who will listen attentively to the evidence as it comes in,'' Senter told the jury pool.

All but seven of the 74 remaining potential jurors acknowledged during questioning by State Farm attorneys that their homes had received at least some damage during Katrina. None said they had a claim denied by their insurer, but several acknowledged that they had complaints about the process used to adjust their claims.

State Farm attorney John Banahan of Pascagoula told the potential jurors that it was a daunting task to remain objective "because we're all gone through something collectively here on the coast.''

Last year, Senter presided over the first trial of a Katrina insurance lawsuit, which Paul and Julie Leonard of Pascagoula filed against Nationwide Mutual Insurance Co. Senter's decision in that case, which was heard without a jury, was seen as a victory for the insurance industry.

Senter ruled in August that Nationwide's policies cover damage from a hurricane's wind but not from its rising water, including storm surge. The judge also rejected the Leonards' argument that Nationwide's policies are ambiguous and therefore cannot be enforced because storm surge isn't specifically excluded from coverage.

While a settlement deal with State Farm hasn't been completed, people with knowledge of the talks said both sides were nearing an agreement that could be worth hundreds of millions of dollars to tens of thousands of State Farm policyholders in Mississippi. The Mississippi settlement would not involve any claims filed by State Farm policyholders in Louisiana or Alabama.

State Farm agreed "in principle'' to pay an undisclosed amount of money to more than 600 policyholders, including Sen. Trent Lott, R-Miss., who sued State Farm after the storm, according to the people with knowledge of the negotiations. All the policyholders are represented by a legal team led by high-profile attorney Richard "Dickie'' Scruggs.

An agreement also could benefit thousands of other Mississippi State Farm policyholders who haven't sued State Farm.

A "class action resolution'' component of the proposed deal calls for the company to review the claims filed by roughly 35,000 policyholders who live in Mississippi's three coastal counties but didn't file lawsuits against State Farm for refusing to cover storm damage.

After reviewing those claims, the company would be required to make new offers, and any disputes would be heard by an arbitrator whose decision would be binding.

State Farm would pay a minimum of $50 million to these policyholders after their claims are reviewed, but the company could end up paying hundreds of millions of dollars more than that because there wouldn't be a cap on the amount, the people with knowledge of the talks said.

Nationwide Mutual Insurance Company

Nationwide Mutual Insurance Company & Affiliated Companies is a group of large U.S. insurance and financial services companies based in Columbus, Ohio.


[edit] History

[edit] Beginnings as Farm Bureau Mutual

On December 17, 1925, the Ohio Farm Bureau Federation incorporated the Farm Bureau Mutual Automobile Insurance Company in Columbus, Ohio. At that time, Ohio law required 100 people to pledge to become policyholders. The first agents managed to recruit ten times that number, and on April 12, 1926, Farm Bureau Mutual started business with 1,000 policyholders.

The first product of the new company, as its name implied, was automobile insurance. The company wrote policies only to Ohio farmers. In 1928, Farm Bureau Mutual began offering policies to West Virginia farmers, followed by Maryland, Delaware, Vermont, and North Carolina. Farm Bureau Mutual began underwriting residents of small towns in 1931, and residents in larger cities in 1934.

[edit] Expansion

Also in 1934, Farm Bureau Mutual began offering fire insurance. This product grew the following year with the purchase of a struggling fire insurance company. With growth came a need for expansion of office space. In 1936, the company moved to the famous 246 Building at 246 N. High Street in Columbus. By 1943, Farm Bureau Mutual operated in 12 states and the District of Columbia. Even with the tripling of space in the 246 Building (which was finally dedicated on the 25th anniversary of the company), Farm Bureau Mutual still had insufficient office space, and began opening regional offices in 1951.

In 1955, Farm Bureau Mutual changed its name to Nationwide Insurance, a name by which it's commonly known today. In the 10 years that followed, Nationwide expanded into Oregon, making the company truly "nationwide". It also expanded into 19 other states, bringing the total by 1965 to 32 states and the District of Columbia.

Nationwide outgrew the 246 Building by the 1970s and work began on a new skyscraper headquarters for the company. In 1978, One Nationwide Plaza was completed at the southwest corner of N. High Street and Nationwide Blvd. on the northern edge of downtown Columbus, Ohio. Since 1978, Nationwide has added the following to its presence in Downtown Columbus: Plaza Two (on the northeast corner of High Street and Chestnut), Plaza Three (just west of High Street and Chestnut), and Plaza Four (Front Street), which together with Plaza One form the primary downtown complex. Nationwide also has a significant presence in the suburbs of Dublin and Grove City.

Nationwide currently has about 35,000 employees, and is ranked #98 in the most recent Fortune 100. [1]

[edit] Helping Columbus become a major league city

By 1997, the city of Columbus had grown to become the 15th largest city in the United States. However, Columbus by this time was the largest American city without what would be considered a major professional sports franchise; that is, one competing in the leagues of Major League Baseball, the National Football League, the National Basketball Association, or the National Hockey League. After plans to move the Hartford Whalers to Columbus failed when voters rejected a tax levy, the Nationwide Mutual Insurance Company announced that it would build an arena adjacent to One Nationwide Plaza in an effort to bring an NHL franchise to Columbus.

This second effort was successful, and the Columbus Blue Jackets began play at Nationwide Arena in late 2000. Nationwide Arena, named for the company, is the centerpiece of the Arena District, an area of entertainment venues, restaurants, and hotels linking downtown Columbus with The Short North neighborhood.
One Nationwide Plaza, the headquarters in Columbus.
One Nationwide Plaza, the headquarters in Columbus.

[edit] CEOs
CEO Years Served
Murray Lincoln 1925 - 1964
Bowman Doss 1964 - 1969
George Dunlap 1969 - 1972
Dean Jeffers 1972 - 1981
John Fisher 1981 - 1992
Dimon McPherson 1992 - 2000
Jerry Jurgensen 2000 - Present

[edit] The Companies

Nationwide is one of the largest insurance and financial services companies in the world, focusing on domestic property and casualty insurance, life insurance and retirement savings, asset management, and strategic investments.

The Nationwide family includes:

Property and Casualty


* Nationwide Mutual Insurance Company
* Nationwide Mutual Fire Insurance Company
* Nationwide Property and Casualty Insurance Company
* Nationwide General Insurance Company
* Nationwide Insurance Company of America
* Nationwide Affinity Insurance Company of America
* Nationwide Insurance Company of Florida
* Nationwide Lloyds
* Colonial County Mutual Insurance Company
* Nationwide Assurance Company
* Insurance Intermediaries, Inc.
* Allied Property and Casualty Insurance Company
* AMCO Insurance Company
* Depositors Insurance Company
* Nationwide Agribusiness Insurance
* Farmland Mutual Insurance Company
* THI Holdings, Inc.

Titan Indemnity Company, Titan Insurance Company, Victoria Fire & Casualty Company, Victoria Select Insurance Company, Victoria Automobile Insurance Company, Victoria National Insurance Company, Victoria Specialty Insurance Company,

* Scottsdale Insurance Company

National Casualty Company, Scottsdale Indemnity Company, Scottsdale Surplus Lines Insurance, Company Western Heritage Insurance Company.


Life Insurance and Retirement Savings


* Nationwide Financial Services Inc. (NYSE: NFS)
* National Deferred Compensation, Inc.
* Nationwide Trust Company, FSB
* NFS Distributors, Inc.
* Pension Associates, Inc.
* Nationwide Financial Institution Distributors Agency, Inc.
* Nationwide Financial Services (Bermuda), Ltd.
* Financial Horizons Distributors Agency of Alabama, Inc.
* Financial Horizons Distributors Agency of Ohio, Inc.
* Financial Horizons Distributors Agency of Oklahoma, Inc.
* Financial Horizons Distributors Agency of Texas, Inc.
* Nationwide Financial Institution
* Distributors Insurance Agency, Inc. of Mass.
* Nationwide Financial Institution
* Distributors Agency, Inc. of New Mexico
* Nationwide Financial Network
* 1717 Capital Management
* Nationwide Securities, Inc.
* Nationwide Life and Annuity Insurance Company
* Nationwide Life Insurance Company
* Nationwide Retirement Solutions
* Nationwide Retirement Solutions, Inc. of Alabama
* Nationwide Retirement Solutions, Inc. of Arizona
* Nationwide Retirement Solutions, Inc. of Arkansas
* Nationwide Retirement Solutions, Inc. of Montana
* Nationwide Retirement Solutions, Inc. of Nevada
* Nationwide Retirement Solutions, Inc. of New Mexico
* Nationwide Retirement Solutions, Inc. of Ohio
* Nationwide Retirement Solutions, Inc. of Oklahoma
* Nationwide Retirement Solutions, Inc. of So. Dakota
* Nationwide Retirement Solutions, Inc. of Texas
* Nationwide Retirement Solutions, Inc. of Wyoming
* Nationwide Retirement Solutions, Ins. Agency, Inc.
* The 401(k) Company

401(k) Investment Services, Inc., 401(k) Investment Advisors, Inc., Riverview Agency, Inc.

* Financial Settlement Services Agency, Inc.
* Nationwide Investment Services Corporation
* TBG Financial


Asset Management


* Gartmore Group

Coda Capital Management LLC, Gartmore Distribution Services, Inc., Corviant Corporation, Gartmore Global Asset Management Trust, Gartmore Global Partners, Gartmore Investors Services, Inc., Gartmore Morley capital Management, Inc., Gartmore Mutual Fund Capital Trust, Gartmore Mutual Funds, Gartmore Mutual Funds II, Inc., Gartmore SA Capital Trust, Gartmore Separate Accounts, LLC, Gartmore Trust Company, Gartmore Variable Insurance Trust, NorthPoint Capital, LLC.


Strategic Investments


* GatesMcDonald & Company

GatesMcDonald HealthPlus, Inc., MedProSolutions, Inc.

* Nationwide Advantage Mortgage Company

Nationwide Health Plans, Nationwide Management Systems, Nationwide Life Insurance Company (Employee Group Life & Health), Nationwide Mutual (Group Health), National Casualty (Group Health),

* Nationwide Global Holdings
* Nationwide Mutual Capital

In Texas, products are supported by:

* Allied Property and Casualty Insurance Company
* Colonial County Mutual Insurance Company
* Depositors Insurance Company
* Farmland Mutual Insurance Company
* National Casualty Company
* Nationwide Affinity Insurance Company of America
* Nationwide Agribusiness Insurance Company
* Nationwide General Insurance Company
* Nationwide Insurance Company of America
* Nationwide Mutual Fire Insurance Company
* Nationwide Property and Casualty Insurance Company
* Scottsdale Indemnity Company
* Nationwide Assurance Company
* Nationwide Securities, Inc.
* Nationwide Financial Services, Inc.
* Nationwide Lloyds

Additionally, Nationwide Communications, a broadcasting company that owned radio station WNCI, was once owned by Nationwide.

[edit] Diversity

Nationwide received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2004, the third year of the report.

Accidents caused by text messaging on the rise

It's not uncommon to see drivers talking on their cellphones, but more and more are also texting from behind the wheel.
That's leading to an increase in accidents.

Its easy to spot people talking at the wheel, hopefully watching the road.

"It's even worse when you see someone driving like this, and they are doing like this."

It's a good bet they're sending text messages, eyes off the road.

"I have actually perfected it with one hand."

Kate Hill admits flirting with trouble.

"Probably veer over you know hit the curb with your tire, stuff like that."

A Liberty Mutual Study found text messaging the leading distraction for teen drivers, annoying others.

"Yeah because I know I almost had a few wrecks like that."

"With a cell phone at least your eyes can still be on the road. Maybe you've got a blackberry like me. You've got an important message say, from your boss. Well I've got to return that one right away. With a blackberry you need both hands...I'll just drive with my knee. I can do that right?"

"You've got to be out of your mind. Hey I wouldn't want my mother to find out about it, that's for sure."

Police are convinced its caused wrecks, but drivers never admit it.

"I am not gonna say, 'Oh I was diddling on my cell phone.' You know?"

Trooper Lonnie Haschell sees drivers do it but can't stop them.

"Unless there is another traffic violation that occurs. If you're concentrating on your blackberry and then you cross that center line, you cross that white line on the side of the road, you have another traffic violation.

"I think they should definitely do something about it."

Three states and 50 countries ban phone use in cars.

Only common sense limits texting in texas.

"I think everybody does it."

Liberty Mutual Stories

Liberty Mutual is a large American insurance company. Founded in Boston in 1912, as of 2005 it had 39,000 employees and more than 900 worldwide offices. As of early 2006, it was number 102 on the Fortune 500 list of the largest American corporations and number 39 on Equal Opportunity Magazine's annual Top 50 Employers list.

Liberty Mutual has historically stayed away from aggressive television and radio advertisements but is able to maintain its size through a form of affinity marketing known internally as Group Savings Plus. The company hires account executives to establish amicable business relationships with qualified employers, professional associations and college alumni associations. The members of these groups are allowed a discount because of their qualified status as usually higher education is considered one of the best signs of a good insurance risk. Liberty Mutual will then market to these groups and rely on targeted advertising within the accounts and word of mouth to promote growth.

The Hartford Insurance

The Hartford Financial Services Group, Inc., shortened to The Hartford in marketing materials, is a large investment and insurance company in the United States. The group's logo is an emblem featuring a stag.

Its products include life, auto, homeowners, and business insurance and employee benefits, and is the largest seller of individual annuities in the United States. It supplies insurance products to members of the American Association of Retired Persons (AARP).

The company sells products through about 11,000 independent insurance agencies, and the company employs 30,000 persons.

It is traded on the New York Stock Exchange under the ticker symbol HIG.

The company was founded in 1810 and is based in Hartford, Connecticut, from which it takes its name.

In 2004, The Hartford purchased the Group Benefits Division of CNA Financial Corporation , based in Chicago, Illinois.

The stag logo, dubbed Larry, is based on Monarch of the Glen, a famous painting of a regal stag.

Geico's popular ads push foes' pedal to the metal

Insurance rivals rev up advertising budgets and creative campaigns

For three days last fall, Chicagoans were stunned as a frantic car chase careened around city streets, with a policeman in a 1971 Chevy Malibu tailing a 1987 Oldsmobile Cutlass. The cars screeched as they spiraled up the parking lot of the cylindrical Marina Towers. Then, as cameras rolled, the Cutlass vaulted off the 17th floor and plunged spectacularly into the river.

The filming was for a commercial for Allstate, the "good hands" people who, along with their "good neighbor" counterpart State Farm, advertised for years with mild, homey messages promoting family and security.

Not anymore. Property and casualty insurance companies are in a brutal marketing battle that has blown up those homespun images like a Hollywood stunt. Ad spending by the industry has grown more than 64 percent since 2000, to $2.89 billion, according to TNS Media Intelligence, and is growing faster than advertising for other competitive industries like wireless telecommunications, banks and prescription drugs.

The reason? Geico Corp., which has blanketed the nation's consciousness with an array of different campaigns, from pricey TV spots on NFL games to radio ads and billboards -- even banners flown by tiny prop planes. Its urbane gecko and indignant cavemen have won accolades and imitators and become cult figures. More recent ads feature testimonials from real customers assisted by celebrities such as Little Richard and Verne Troyer (Mini-Me from the "Austin Powers" movies) who lauds Geico with an interpretive dance.

Geico spent an estimated $403 million on advertising in 2005, and its ad budget rose another 20 percent in the first nine months of 2006, according to TNS. Coca-Cola Co, by contrast, spent $326.1 million on Coke advertising in 2005.

The once-staid unit of Berkshire Hathaway Inc. was pushing low-cost insurance and using the ad slogan: "15 minutes can save you 15 percent," as far back as the early 1990s, urging people to telephone for price quotes. The Internet made that model more efficient, with quick quotes online, helping establish insurance sold by price, not by agents, as a commodity. In such an environment, brand image is the key differentiator among rival companies, and advertising is paramount.

So Geico went into high gear. Its ad spending soared about 40 percent in 2005, according to TNS.

Rivals were forced to pump up their advertising, too, even though some say they offer personal attention and services, not just low prices. "In times of need or crisis the consumer needs someone beyond a talking animal," says Joe Tripodi, Allstate Corp.'s chief marketing officer. His reaction to the popular Geico lizard? "I'd like to squash it."

Geico still trailed Allstate, State Farm Mutual Automobile Co. and Progressive Corp. in private passenger auto insurance as of 2005, the last year for which figures are available. But its share of auto premiums grew to 6.25 percent that year from 4.61 percent in 2001, according to insurance-rating company A.M. Best Co. Geico doesn't disclose detailed numbers, but analysts say it's profitable. "Not to mention that Warren Buffett continues to love them," says Donald Light, an analyst with Celent LLC.

"I love the advertising," confirms Berkshire Hathaway's chairman, who says he plans to boost Geico's ad spending by an additional 20 percent this year. Buffett also notes that without a sales force, Geico is dependent on ads to generate sales. The ad growth is "sustainable as long as I am willing to write the checks," he says, "and I love writing them."

A Lucky Accident

The company's famous green gecko was partly the product of an accident. It enlisted the character in 1999 to help consumers remember the company's name, an acronym for Government Employees Insurance Co. The gecko was supposed to be used for one ad. But an actors strike forced Geico to keep using the reptile -- a fortuitous development because fans were beginning to e-mail and call about him.

Bridge Ad Deal Is Bargain for Geico, Some Experts Say

Did Geico, the giant auto insurer, get too good of a deal from the Port Authority of New York and New Jersey?

That is what some advertising executives are saying about the $1.6 million-a-year, two-year deal between the authority and Geico, which will soon have its name on billboards at the toll plaza for the George Washington Bridge. Geico’s name will also adorn each tollbooth, signs on the approach road, and the Port Authority’s Web site and direct mail.

The price tag, these executives say, is far too cheap, considering that 57 million eastbound drivers pass through the toll plaza in Fort Lee, N.J., each year. Though far different from ads on billboards, a 30-second television advertisement during the Super Bowl next month is estimated to cost an average of $2.6 million.

Even by the Port Authority’s standards, the deal with Geico may be low. The Port Authority collects $1.7 million a year from HSBC for ads the bank places in the walkways to planes at Kennedy International and La Guardia Airports — locations with less historical stature than the George Washington Bridge.

“To me, it sounds like a very, very big bargain,” said Michael Watras, chief executive of Straightline International, a brand consultant. “I just think the Port Authority was asleep at the wheel. They could have gotten five to six times as much.”

Geico, meanwhile, may have gotten the better end of the deal, , Mr. Watras and others said. It spent more than $400 million on advertising across all media in 2005, according to TNS Media Intelligence, a research firm, so the deal with the Port Authority is less than half of one percent of its annual advertising budget. In the first nine months of 2006, Geico’s spending on advertising rose 24 percent, according to TNS.

Geico representatives did not return calls for comment. But Stephen Sigmund, a spokesman for the Port Authority, said the deal with Geico is “competitively priced” because “it’s the first of its kind.” Some advertising executives agreed, saying that it is hard to determine a fair price without having a benchmark.

Geico was not the first company approached about buying ads; many companies were asked, including other auto insurers, but they declined. That could have forced the authority to reduce its price.

The price HSBC paid for the signs at La Guardia and Kennedy is also difficult to compare with the Geico deal because a greater number and variety of travelers at airports see those signs. Commuters on the George Washington Bridge are often the same people day after day.

What’s more, commuters, preservationists and residents near the bridge may become so irritated by the Geico signs that they take out their anger on the company.

“It seems a bit low, but then again, you need to get an advertiser to take the risk of putting your name out there for the first time,” said Allen P. Adamson, managing director at Landor Associates and author of “BrandSimple,” a book about how to maintain brands. “Any time ads encroach on a place where they haven’t been before, it’s one more refuge from the noise that has been taken away. Every time you do this, you’ll get people screaming.”

The signs have not even been unveiled yet, but the screaming has already started. The borough of Fort Lee, where the toll plaza is located, is considering suing the Port Authority. The borough’s mayor, Jack Alter, said the Port Authority did not consult the borough government before approving the signs, and may have run afoul of laws that determine the size and location of the signs.

“No one talked to us about it,” Mr. Alter said. “They are polluting the aesthetics.”

Mr. Sigmund, the Port Authority spokesman, declined to comment on the potential lawsuit. But he said the authority is “working hard not to litter the bridge with signs.”

“That’s why we’re doing it in a very small way and seeing what the impact is,” he said.

GEICO Information

Government Employees Insurance Company, usually known by the acronym GEICO, is an American auto insurance company. GEICO is a wholly owned subsidiary of Berkshire Hathaway and, as of 2006, provided coverage for more than 10 million motor cars, trucks and other motor vehicles owned by more than 7 million policy holders. GEICO writes private passenger automobile insurance in the District of Columbia and all U.S. states, except Massachusetts.


[edit] History

GEICO was founded by Leo and Lillian Goodwin to market auto insurance directly to federal government employees and their families. GEICO was based on the assumption that such persons would constitute a more financially stable and less risky pool of potential insureds than the general public. After real-time access to computerized driving records became available in the 1970s throughout the United States, GEICO gradually began to insure the general public as well.

GEICO generally prefers to deal directly with consumers via the telephone and the Internet, freeing up capital that would otherwise be spent on employing insurance agents in the field and making the company the nation's largest direct writer of private auto insurance [1]. GEICO does, however, market their products through a small number of field agents, most of which are based near military bases. These agents are known as GFRs (GEICO Field Representatives).

[edit] Commercials

GEICO's advertising strategy incorporates a saturation-level amount of print (primarily mail circulars) and television parody advertisements, as well as radio advertisements. A common tagline used by GEICO is "fifteen minutes could save you fifteen percent or more on car insurance". Another is "So easy a caveman can do it." This was so popular extra commercials were made as a gag about it, but still talked about Geico. They have a caveman-looking actor who plays being offended at "So easy a..."

[edit] The GEICO gecko

The ads sometimes focus on the company's mascot, the GEICO talking gecko, created by The Martin Agency and most recently a CGI creature generated by Rhythm and Hues Studios. The gecko first appeared in 2000 during the Screen Actors Guild strike that ruled out live actors.[2] In the first commercial, the gecko was given an upper-class British accent because it would be unexpected, according to The Martin Agency's Steve Bassett. In current commercials the gecko's accent is more working-class (a typical East London accent), to further "humanize" him. "As (computer animation) got better and as we got to know the character better, we did a few things," says Steve Bassett, creative director at The Martin Agency. "We wanted to make him a little more guy-next-door. And he looks a lot more real than he's looked before."[3]
GEICO's computer animated gecko.
GEICO's computer animated gecko.

Early commericals depicted GEICO customers mistakenly calling the gecko because they confused the words "GEICO" and "gecko". The gecko is initially frustrated by these calls and tries to make people understand he has nothing to do with GEICO. Eventually, he decides to join forces with GEICO and becomes their spokesman. In recent commercials starring the gecko, he's ventured out into what seems like a domesticated jungle talking to his neighbors (other reptiles), who don't seem to be as enthusiastic about saving money on their car insurance. He says something to the effect of "Free GEICO quotes are like free...pie an' chips. I mean, who doesn't want free pie and chips? It's pie...with chips...for free! But pie and chips...you can get 'em anywhere. GEICO quotes: made from scratch, just for you. Only at geico.com." Also, he says to the camera, "Well, ello!!" The current ads being shown feature the GEICO gecko, voiced by Jake Wood being interviewed by an unseen man parodying Larry King (voiced by James Urbaniak).

[edit] Parodies

Another common theme is misdirection, in which the commercial appears to be about something unrelated, or not even be a commercial, and a person comes to say "I've got great news", but then unexpectedly says "I just saved a bunch of money on my car insurance by switching to GEICO!". The commercials use a variety of fictional characters such as Speed Racer and professional wrestlers as well as real people such as Tony Little spoofing themselves.

Yet another theme is the promotion of fictional products. In 2006, parody ads featured such products as long distance phone service, tomato soda, fast-food (this ad featured LeAnn Rimes) and a reality TV show - in all cases, the plugs end with "but it won't save you any money on car insurance." After the GEICO slogan is heard, the commercials end with "Why haven't you called GEICO?" This type of reality-bending in commercials is reminiscent of the Energizer Bunny campaign for batteries which began in the late 80's.

During this time they also featured commercials that told you that in the time it takes to do a certain task, one could save money on car insurance. The tasks mentioned were related to the scene being played out, such as a man telling his wife "You Betcha" without any known remorse for it when she asks him if the dress that she's wearing makes her look fat (saying "In the time it takes to pull out the sleeper sofa..."), or a guy joking and mocking a high-profile businessman ranked above him at a high priority and serious business meeting (saying "In the time it takes to clean out your desk..."), or a man views an ice sculpture looks like Easter Island monolith (saying "In the time it takes to sweep the floor..."), and a woman joking and mocking a waiter to get more bread. (saying "In the time it takes to eat your meal...").

There are also ads that feature stories from GEICO customers about situations in which Geico assisted them, but told by celebrities such as Charo, Burt Bacharach, and Little Richard, who each add their own twist to the stories due to their well known ways of speaking. Don LaFontaine, Peter Graves, and Verne Troyer are also featured in similar situations and D.C. Douglas provides the voiceover. [4]

[edit] Cavemen

In 2005, GEICO began an advertising campaign featuring "cavemen" in a modern setting. In these commercials, a GEICO spokesman tells how signing up for insurance is "so easy a caveman could do it" and ends up offending the cavemen who are still around, either as part of the commercial's production crew or in erudite society. In 2006, a new commercial featuring the cavemen premiered. While Röyksopp's Remind Me is playing in the background, one of the cavemen is on a moving sidewalk at an airport when he spots a billboard for Geico featuring a picture of a caveman along with the insulting phrase. The passing cavemen appears disgusted that one of his fellow cavemen participate in the advertisement. Other Geico caveman commercials include "Roast Duck with Mango Salsa (ordering at a restaurant)," "Looks Like Someone Woke up on the Wrong Side of the Rock (TV ABC news report-style, when caveman wearing a business suit argues by, "Yeh. Inventing the wheel. Discovering fire. Good Point." "Looks like someone..." Caveman groans. "So Easy, A Therapist Can Do It (Therapist-It's just a commercial. Caveman-Well, what if it said, "So Easy, A Therapist Can Do It." Thera-That commercial wouldn't make sense to me. Cave-Why? Because therapists are smart? Cell phone-ring... Cave-That's my mother. I'll put it on speaker.)."

[edit] Market Reach

Over the years, GEICO has introduced several other products to its offering, aside from car insurance. GEICO is most widely known for its car insurance line of products, but also offers motorcycle and ATV insurance, home insurance, umbrella insurance, and boat insurance.[5] As of July 2006, GEICO has accumulated USD 21.2 billion in assets and has 12 major domestic offices including ones in San Diego, Tucson, Dallas, Lakeland, Virginia Beach, Fredricksburg, and Woodbury. GEICO/Berkshire Hathaway, which is headed by renowned investor Warren Buffett has four affiliate companies, GEICO, GEICO General, GEICO Indemnity and GEICO Casualty. According to Fortune Magazine, Berkshire Hathaway's property-casualty insurance has been "among the most admired in the country" since 2004. [6]

[edit] Competition

Major competitors include State Farm, Allstate, Progressive, and USAA. Progressive is particularly countered in their commercials, with many GEICO commercials countering Progressive's claims of being able to give their rates and several of their competitors' rates in quotation by stating that GEICO quotes are only available at GEICO.com.

Farmers Starts the New Year with New Discounts, Saving Customers up to 40%

RICHMOND, Va.--With one of the largest discounts offered in the industry, Farmers Insurance Group of Companies announced today savings of up to 40% for people who insure their home and automobile with Farmers.

“On average our customers will see a 26% savings from this new discount, with a good number of people saving as much as 40%,” said Chuck Browning, State Executive Director of Farmers Virginia. “This is a great way for our customers to save money on something they already buy,” added Browning.

Farmers is also offering various other smaller discounts and other adjustment to its Virginia customers. “Our goal is simple,” says Browning. “We want to grow our business in Virginia by being the best in all that we do and all while being the best priced insurance company.”

In Virginia, Farmers is currently insuring more than 76,000 automobiles, over 51,000 homes, nearly 2,800 small businesses and the lives of over 13,000 Virginians.

The Farmers Insurance Group® companies comprise the nation's third-largest personal lines property & casualty insurance group -- helping to restore the lives of over 15 million customers when the unexpected happens. Headquartered in Los Angeles and doing business in 41 states, these companies provide homeowners, auto, business, life insurance, recreational products and financial services to more than 10 million households through 17,000 exclusive and independent agents and district managers. For an agent near you, call 1-800-FARMERS or visit www.farmers.com

Farmers Insurance Group

Farmers Insurance Group is a provider of insurance management services and a holding company. It was founded in Los Angeles, California in 1928 by Thomas E. Leavey and John C. Tyler. It is now a wholly owned subsidiary of Zurich Financial Services, Zurich, Switzerland.

Farmers Group, acting under the "dba" Farmers Underwriters Association, and its wholly owned subsidiaries, Truck Underwriters Association and Fire Underwriters Association, they act as the attorneys-in-fact for three reciprocals or inter-insurance exchanges - Farmers Insurance Exchange, Truck Insurance Exchange and Fire Insurance Exchange. A reciprocal or inter-insurance exchange consist of policyholders (subscribers) who exchange contracts with one another so that they can provide themselves with insurance against certain losses. In addition, Farmers Group, Inc., is a life insurance holding company of the Farmers New World Life Insurance Company. Farmers Group, Inc. is the country's third-largest writer of both private passenger automobile and homeowners insurance.

Farmers Insurance Group of Companies is based in Los Angeles, California, and operates in 41 states across the country through the efforts of approximately 18,000 employees and services more than 15 million customers. In March 2000, the Farmers Insurance Group of Companies acquired/merged with Foremost Corporation (Foremost Insurance Company) located in Grand Rapids, Michigan. Foremost is the leading writer of manufactured homes and a prominent insurer of recreational vehicles and other specialty lines.


[edit] History

In 1928, Thomas E. Leavey and John C. Tyler founded the first Farmers Company in California. Today, the Farmers Companies (also known as Farmers Insurance Group®) are the country's third-largest writer of private passenger Auto and Homeowners insurance.

Farmers Group is also referred to as the Farmers Insurance Group of Companies, FIG and Farmers Insurance. It was incorporated in the State of Nevada having filed articles of incorporation with the Nevada Secretary of State on October 17, 1927[1]. The first Board of Governors meeting was held on March 28, 1928. The Home Office, built in 1937, is located at 4680 Wilshire Boulevard, Los Angeles, CA 90010.

The Farmers Companies operate in 41 states across the country, servicing more than 15 million customers through the efforts of approximately 18,000 employees and 17,500 agents who are independent-contractor and independent agents.

Farmers New World Life Insurance Company, Mercer Island, Washington, offers a wide range of products from a fully flexible Universal Life product to traditional Term and Whole Life plans and annuities, all marketed by Farmers agents.

Farmers Financial Solutions, LLC, Simi Valley, California, offers a variety of financial products such as mutual funds, Variable Annuities, and Variable Universal Life products, which help build savings for customers’ future needs, such as retirement and college savings.

Farmers acquired the Foremost Insurance Company, Caledonia Michigan, in March 2000. It leads the industry in insuring specialty products such as mobile homes, motor homes, travel trailers and specialty dwellings.

Farmers Group, was previously a publicly traded company most recently traded on the NASDAQ until 1989. B.A.T. Industries, plc, London, England through its US subsidiary, BATUS, Inc. (a Delaware Corporation), submitted an unsolicited tender offer of $4.2 billion in October 1987 which amounted to an attempt at a hostile takeover of Farmers Group, although BATUS characterized it as “friendly”. Farmers Group rejected the initial tender offer[2] but the Farmers Board and stockholders did finally agree to be acquired by BATUS for $5.2 billion and the acquisition was concluded in 1989. Farmers Group became part of the B.A.T. financial services group.

- In September 1998, the Zurich Financial Services Group was created from the merger with the financial services business of B.A.T. Industries p.l.c. Through a dual holding structure, Zurich Financial Services was owned 57% by Swiss-quoted Zurich Allied AG, representing the former shareholders of Zurich Insurance Company, and 43% by London Stock Exchange Allied Zurich p.l.c., the de-merged financial services interests of B.A.T. Industries p.l.c.

- In October 2000, the Zurich structure was simplified and unified under a single Swiss holding company. Allied Zurich and Zurich Allied shares were replaced by shares of the newly incorporated Zurich Financial Services with a primary listing on SWX Swiss Exchange (ticker symbol: ZURN) and a secondary listing in London (LSE: ZURN.L). Zurich Financial Services American Depositary Receipts (ADRs) are traded on the American Stock Exchange (AMEX: ZFSVY).


[edit] Community relations

Since Farmers founding in 1928, Farmerss Insurance has been committed to improving the communities in which our customers, agents and employees live and work. Investing in our communities is nothing new to Farmers - for many decades, we’ve been proud, active partners in bettering the lives of our neighbors across the country.

Farmers Insurance continue to invest considerable resources in programs that improve safety, enhance educational opportunity and increase civic participation in communities across America.

For instance, Farmers has committed much to special initiatives that enhance the ability of our nation's teachers to engage students in becoming better citizens. In partnership with the National Council for the Social Studies, Farmers created The American Promise program in 1995.

Through its citizenship-education curriculum and videos, more than 100,000 teachers have been able to share with their students the inspiring stories of citizens who are improving their own communities.

Farmers Insurance believes that our country’s diverse groups and cultures enrich every American. To promote greater cross-cultural understanding, Farmers has created a program honoring the Hispanic/Latino culture called

Young Americanos. Young Americanos reflects our commitment to the Latino community and to building bridges of communication and understanding among all the cultures making up the United States.

[edit] Farmers Insurance Agents

Farmers agents aren’t employees; they’re independent contractors who can conduct business on their own terms, given they comply with Farmers Companies’ guidelines and normal good-business practices.

This independence allows Farmers agents to live their lives the way they choose, not the way someone else chooses.

One of the unique benefits of Farmers is its comprehensive product offering. Accidents, risk management and asset accumulation: these are becoming essential in today’s world. Farmers agents offer the products that ensure their customers’ lives are restored to order as well as bring them closer to their future goals. Through hard work and professional dedication, our agents help to give their customers the security they deserve.

[edit] Criticism

State Insurance Commissioner reports reflect that Farmers Insurance has the in California, Washington, Texas, Oregon, Kansas, Arizona, Colorado and more. [citation needed] In 2003, Consumer Reports rated Farmers Insurance Homeowners "Worse" for both "Problems with Claim" and "Delayed Payments". [citation needed] In March 2006, Consumer Reports considered Farmers Insurance one of the “poorest performers” [3] amongst 27 insurance companies in terms of paying off (auto) claims in 30 days or less.

A number of consumers, agents, and claims adjusters have had disagreements with Farmers Insurance. Here are some of the more popular cases that have made it into the news.

* Claims Adjusters: In September 2004, Farmers Insurance claims adjusters won a lawsuit, Bell v. Farmers Insurance Exchange, which rewarded them for all their overdue overtime labor. At the time it was largest overtime pay class action ever tried in the United States.
* Insured Consumer: The Ballard v. Farmers Insurance case is one of the most prominent mold claim cases against an insurer. Ballard alleged that Farmers Insurance failed to adequately and swiftly cover repairs for a water leak, allowing the toxic mold Stachybotrys chartarum to overrun their home and damage their family's health.
* Insured Consumer: Barbara Martin did not understand why Farmers Insurance would not compensate Martin for "pain and suffering" -- her lost career, inability to have another child, continuing emotional and physical pain. Martin accused Farmers Insurance of fraudulently using a program called Colossus to rip off customers. Robert Dietz and Christy Klein, former Farmers claims adjusters, stated "There's so much pressure on you to settle for the least amount possible". Dietz and Klein claimed Farmers Insurance would offer monthly incentives to pay less. Typical prizes were $25 gift certificates or a pizza party for an adjuster and her team.
* Insured Consumer: Ethel Adams stated, "This is everybody's worst nightmare. You know you have insurance -- you've paid for it -- and you've got these massive injuries. Then to be told, 'No, you don't have coverage,' it was like someone punched me in the stomach. It makes you physically ill." Farmers Insurance denied Ethel's claim stating it was not "an accident". Washington State Insurance Commissioner Mike Kreidler told Farmers Insurance to pay.

Esurance info

Esurance Inc. is an American auto insurance provider headquartered in San Francisco, California.

[edit] History

Esurance was founded in 1998 under the name of SiliconSierra Holdings Inc. Esurance launched its Web site and started writing personal auto insurance in December 1999. As of March 31, 2006, it has become one of the fastest growing auto insurance companies in America, based on year-over-year premium growth.

In 2000 Esurance was acquired by Folksamerica Holding Company, Inc. (a subsidiary of White Mountains Insurance Group). Esurance is now a direct subsidiary of White Mountains.

[edit] Commercials
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Erin Esurance

Esurance commercials are animated, and feaure a crime fighting pink-haired caucasian female spy named Erin Esurance (Voiced by Mo Mellady) along with a black-haired, caucasian "Mysterious Stranger" who she usually runs into. At first they usually flirted at the end of the commericals, but they were always interrupted, when Erin is needed to fight crime. Although in the latest commercial it seems they are dating. The commercials are animated by the Wild Brain animation company.

Erin represents something of an homage to elements popular to 20th and 21st century spy genre: alter-egos, deep cover, double and triple agents, loads of special gadgets, dead drops, etc. Drawing on the fictional archetypes of Danger Diabolik and Barbarella, Erin presumably lives and works in a timeline parallel to our own, but her living quarters and vehicles are heavily influenced by the "groovy" populuxe style of the 1960s, an unabashed nod to her archetypes.

Each animated spot featuring Erin gives a nod to some aspect of pop culture, particularly movies, particularly relatively obscure movies, though many other references get thrown into the pop culture soup from which Erin springs.

One commercial reveals that Erin works in an office, which we can assume is the Esurance building, during which her hair is actually brown and she wears glasses, probably as a cover for her identity. Only when she suits up and 'transforms' does she gain the pink hair color and lose the glasses.

Erin also seems to have a crush on the man she refers to as The Mysterious Stranger. They meet periodically from time to time, as he asks for information about Esurance. He seems to know about it, but usually asks anyway, just to get to know her better. They are usually separated due to either Erin running off or being chased away by bad guys. However, a recent commercial has implied that he might be something more, since he takes some papers away from Erin at the end.

When the campaign was being developed in the summer of 2004, employees at San Francisco's corporate headquarters got to vote on her hair color, among an offering of about 12 different palettes. Pink hair won overwhelmingly; green hair was the least popular choice, and only selected by 2 associates. (Information from the Director of Brand & Public Relations at Esurance, who developed the concept for the campaign, and organized the San Francisco associates' voting on Wild Brain's original character designs.)

Ironically, Erin is often seen riding a motorycle, although Esurance doesn't issue motorcycle policies.

What is CarInsurance.com

CarInsurance.com, Inc. is an online auto insurance marketplace headquartered in Altamonte Springs, Florida.

History

CarInsurance.com was formed as a logical progression of the retail agency business providing service directly to the customers online and over the telephone. Maitland Underwriters, Inc. (a CarInsurance.com subsidiary) is a Managing General Agency formed in March of 1999. The Florida Department of Financial Services licenses it as a licensed Managing general agent (License #A316527).

CarInsurance.com website was registered in 1994 and in 2004 CarInsurance.com became a full service online car insurance agency in Florida, with partnerships in all 50 states, Canada, and the United Kingdom. In 2006, CarInsurance.com will expand the online agency to 17 additional states and offer the online auto insurance agency model and products to all states in 2007. CarInsurance.com currently offers Safeco Insurance, The Hartford, Direct General Insurance Company, and Esurance. In 2007, they will expand and offer at least 3 new carriers in order to give consumers more auto insurance choices.

Capital One the reality

Capital One Financial Corp. (NYSE: COF) is a McLean, Virginia-based bank holding company specializing in credit cards, home loans, auto loans, and savings products. Founded in 1988 by Richard Fairbank and Nigel Morris, the firm was a pioneer of the mass marketing of credit cards in the early 1990s and is now the fourth largest customer of the United States Postal Service[1].

In 2002, Capital One won the Wharton Infosys Business Transformation Award for its innovative strategy specifically related to their credit card products. In 2005, Capital One entered the retail banking market with its acquisition of New Orleans, Louisiana-based Hibernia National Bank.

On March 12, 2006, Capital One announced an agreement to acquire Melville, New York-based North Fork Bank for $14.6 billion U.S. dollars. The merger was completed on December 1, 2006. Upon the completion of the merger, the bank is to be renamed as "Capital One Bank".[2]


[edit] Marketing

Capital One is a major sponsor of sports teams. In 2001 Capital One became the principal sponsor of the Florida Citrus Bowl, an annual college football game played in Orlando, Florida, renaming it the Capital One Bowl. In the UK, the company currently sponsors Premier League football club Sheffield United and Football League One club Nottingham Forest.
Capital One bank in Wake Village, Texas
Capital One bank in Wake Village, Texas

[edit] International Operations

Capital One commenced operations in Canada in 1996. Its head office is located in Toronto, Ontario. Unlike its diversified American parent, the Canadian business currently operates solely in the credit card market.

The UK headquarters of Capital One is in Nottingham, England.

Capital One also has a presence in Spain, with the local office located in Madrid.

The company was once active in France and South Africa, but has since withdrawn from these markets.

[edit] Diversity

Capital One received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2003, the second year of the report. Capital One's American division has a large number of foreign-born employees: in 2003 it sponsored more people for H-1B visas than any other financial services company (19th overall),[3] though in 2005 it was 4th in financial services (34th overall).[4]

[edit] Controversy

Capital One has a strategy to issue multiple cards with low limits to consumers, in an attempt to collect late fees across several cards. This is considered by many consumer advocates to be predatory.[5]


[edit] Management & Corporate Governance

Key executives include:

* Richard Fairbank Chief Executive Officer, President
* Gary Perlin Chief Financial Officer, Executive Vice President, Principal Accounting Officer
* John Finneran Executive Vice President, General Counsel, Secretary
* Matthew Schuyler Executive Vice President, Chief Human Resources Officer
* J. Herbert Boydstun Executive Vice President;President, Banking
* Larry Klane Executive Vice President, Global Financial Services
* David Lawson Executive Vice President, President and Chief Executive Officer, Capital One Auto Finance
* Peter Schnall Executive Vice President, Chief Credit Officer
* Gregor Bailar Executive Vice President, Chief Information Officer


The current members of the board of directors of Capital One are:

* E.R. "Bo" Campbell Former Chairman of Hibernia National Bank
* W. Ronald Dietz President of W.M. Putnam Company
* Richard Fairbank CEO and Co-Founder of Capital One
* Patrick Gross Co-Founder of American Management Systems
* Ann Fritz Hackett President of Horizon Consulting Group
* Lewis Hay III CEO and Chairman of Florida Power & Light
* Pierre Leroy Divisional President at Deere & Company
* Mayo A. Shattuck III CEO and Chairman of Constellation Energy
* Stanley Westreich Former President of Westfield Realty

Auto-Owners Insurance Info

Since 1916 Auto-Owners Insurance has helped people with their insurance needs. We are dedicated to the independent agency system, offering our products through over 5,800 independent agencies in 25 states. Auto-Owners products are brought to you through caring, knowledgeable professionals, who live and work right in your community.

Life... Home... Car... Business...

Auto-Owners has been providing insurance since 1916. We are represented by over 35,000 independent agents in more than 5,800 agencies in 25 states.

To learn more about why you should choose Auto-Owners, the Independent Agency Advantage, Auto-Owners history, our Core Values; or to view the 2005 Annual Report or inquire into career opportunities, click on one of the links provided at the left.

Auto-Owners Insurance has been providing insurance since 1916. We are represented by over 35,000 independent agents in more than 5,800 agencies in 25 states.

To find out more about our insurance products for life, home, car and business click on
one of the links provided at the left.

Auto-Owners Insurance has been providing insurance needs since 1916. We are represented by over 35,000 independent agents in more than 5,800 agencies in 25 states. Auto-Owners consistently receives high rankings in growth, financial stability and claims service.

Click on the links provided at the left for information on contacting us and for after hours emergency claims reporting.

American Family Insurance

American Family Insurance Group is a private mutual company which focuses on property, casualty and auto insurance, but also offers commercial insurance, life, health, and homeowners coverage, as well as investment and retirement-planning products.

The company was founded as the Farmers Mutual Automobile Insurance Company (not to be confused with the Farmers Insurance Group) by Herman Wittwer on October 3, 1927. A Fortune 500 company, its revenues for 2005 were over $6.8 billion.

It is based in Madison, Wisconsin as of 2006, but also has regional offices in Eden Prairie Minnesota, Saint Joseph, Missouri.

[edit] States where American Family Insurance operates

Arizona, Colorado, Iowa, Idaho, Illinois, Indiana, Kansas, Minnesota, Missouri, North Dakota, Nebraska, Nevada, Ohio, Oregon, South Dakota, Utah, Washington, Wisconsin

[edit] Company History

1927 Farmers Mutual Automobile Insurance Company is founded on Oct. 3 in Madison, Wis.

1938 Both premiums and assets surpass $1 million.

1957 Farmers Mutual offers its own sickness and accident insurance.

1958 Company introduces homeowners insurance and opens American Family Life Insurance Company.

1959 Farmers Mutual enters the computer age with the RAMAC 305.

1961 American Standard begins sales.

1962 Company offers farmowners insurance.

1963 Policyholders give final approval on March 5 to change the company's name to American Family Mutual Insurance Company.

1965 American Family jingle is copyrighted on July 9.

1969 American Family Financial Services opens.

1975 Commercial Lines is introduced. American Family grows to become the fifth-largest mutual auto insurer.

1981 Assets surpass $1 billion. American Family becomes the fourth-largest mutual auto insurance company.

1985 American Family Brokerage, Inc. opens.

1986 President Dale Mathwich introduces the motto, "Strong, growing and friendly." American Family posts its first $100 million operating gain.

1992 Policyholders' surplus exceeds $1 billion.

1994 American Family rolls out its one-of-a-kind catastrophe trailer. The company ranks as the 11th-largest property/casualty insurer.

1996 American Family first appears on the Fortune 500 list at number 403. The company has been on the list ever since.

1997 American Family grows to become the 10th-largest property/casualty insurer in the nation. Assets surpass $8 billion.

2001 American Family Securities, LLC introduces variable products. Assets for American Family Mutual Insurance Company exceed $10 billion.

2002 American Family celebrates its 75th anniversary.

Allstate Insurance In Depth

The Allstate Corporation NYSE: ALL is the largest publicly held personal lines insurer in the United States. Allstate was founded in 1931 as part of Sears, Roebuck & Co.

In 1952, Sears also used the name Allstate for a line of Allstate automobiles sold through some of its southern department stores which were rebadged products of Kaiser Motors; the cars were withdrawn following the 1953 model year. (Also see Henry J.)

The company slogan is "You're in good hands." The current advertising campaign, in use since 2004, asks, "Are you in good hands?" Their current spokesperson is Dennis Haysbert.


[edit] Awards

* Allstate was named one of the 100 Best Companies for Women of Color in 2004.

* Working Mothers magazine named Allstate a 2006 Working Mother 100 Best Company – marking the 16 th year in a row the company has made the list. The Working Mother 100 Best list recognizes employers whose groundbreaking benefits—from flexible schedules and child care to innovative leave policies for new parents—are helping redefine workplace standards across the country.

* Allstate was honored as a top ten company for African-Americans in technology by Black Data Processing Associates, a national organization dedicated to the professional grow