WP - Insurance & Financial Advisor News 072008

8/7/2019 WP - Insurance & Financial Advisor News 072008

1/28

ByTodd Karpovich

A slump in the financial markets has

not deterred professionals in Pennsylva-

nia from pursuing careers in the insur-

ance industry.

The number of licensed producers in

the state increased to 174,583 in 2007,

compared to 163,898 the prior year, ac-

cording to the most recent data from the

Pennsylvania Department of Insurance.

The number of viatical brokers in-

creased to 458 in 2007, compared to 112

the previous year, state regulators said.

Jeffrey Taggart, president of the Na-

tional Association of Insurance and Fi-

nancial Advisors, said Pennsylvania is

bucking the trend because the numbers

of new producers is

Tenth Anniversary

1998-2008

Volume 3, Issue 2 | August 2008

PRSRT STD

U.S. PostagePAIDBaltimore, MD

Permit No. 7841 Required reading for successful insurance and financial service professionals

SoutheasternPennsylvania

New Jersey

Delaware

IBC mergerdebate centers

on competitionIBC,HighmarkCEOssee no effectswhile competitors fear combination

ByTodd Karpovich

The CEOs of Independence Blue

Cross and Highmark Inc. tried at four

hearings before PennsylvaniaInsurance

Commissioner Joel Arioto convince him

that the proposed merger between the

twofirms willnot havea negative impact

on competition in the state.

However, some lawmakers, competi-

torsand several health careassociations

have lined up to prove them wrong.

Ario helda series of hearings in Pitts-

burgh, Harrisburg and Philadelphia to

get more input on how the proposed

merger would affect the local market.

Highmark and IBC

Huge problemseen in online CEPa. regulators looking for fraud asconcerns about Internetcourses grows

ByBob Graham

An official with the Pennsylvania

Insurance Department said there is a

huge problem with online continuing

education programs and his office is

looking for fraud.

Speaking recently to the Pennsylva-

nia chapter of the NationalAssociation

of Insurance and Financial Advisors,

RonGallagher, a deputyinsurancecom-

missioner, said the departmentis look-

ing at how to ensure

Pa garners D,N.J. earns B forP/C regulationsConsumers freedom to pick right auto,homeowners policies addressed

By MollyGreeley

Pennsylvania was one of five states

to earn a grade of D in a recent study

of property/casualty insurance regula-

tion in the United States.

New Jersey earned a B grade and

Delaware earned a C.

The study, created by the Competi-

tive Enterprise Institute, a nonprofit ad-

vocacy group based

Your only source for the latest local industrynews, as well as new products, sales advice,ratings, and national insurance and financialservice news updated daily.

CALENDAR 20

CAPITOL HILL 19

COMPANIES 12, 22

DEALS 9

LEGAL BRIEFS 17

LIFE/FINANCIAL 20

PEOPLE 15

NEW PRODUCTS 2, 25

RECORD/FINES 27

Departments

See CE on p26 See Grades on p20

See King on p11

Canines bitehomeownersNew study finds that dog bites accountfor a third of all homeowners claims.See story on page 7.

10,685 more producers

licensed in Pa. in 2007

See Licenses on p18

DATED MATERIAL

Please deliver by August 5, 2008

Insurance & Financial Advisor Monthly10600 York Rd. Suite 203, Hunt Valley, MD 21030

Change Service Requested

// Life Insurance

Producersmay miss LTCPartnership deadline

A Pennsylvania deputy insurance commis-

sioner said agents may miss theLTC

Partnership training requirement deadline

because the regulations have notbeen

finalized.

Page 2

// Regulation

The wait is over forCommissioner Ario

Thirteenmonths after being

appointed,Joel Ario was

confirmed as the Pennsylva-

nia insurance commissioner,

succeeding Diane Koken.

Page 5

// Financial Services

Producers droppingtheir Series 6 licenses

Facedwith thetime and expense of com-

pliance,more independents are ditching

their Series 6 licenses.

Page 10

// Health Insurance

New-old dental

plans can cut costs

Jamie Black explains howthisnew-old

approach, using group scheduled

reimbursement dental plan, can cost

employers significantly lessthanPPOor

indemnityplans.

Page 10

Number Check

Source: Ernst & Young

Percentage chance of married couples

with a guaranteed source of retirementother thanSocial Security incomemaking $75,000at retirement outlivingtheir financial assets if theyretain theirpre-retirement standardof living.

31


2/28

2 | Southeastern Pennsylvania / New Jersey / Delaware Insurance & Financial Advisor | IFAwebnews.com August 2008

For commercial and personal insurance, Iroquois Mid-Atlantic, may provide

the solution to your needs.

Why consider joining Iroquois?Heres what you will get:

Direct access to additional carriers*

Lower volume commitmentsCompetitive commission rates

Profit sharing opportunities

Discounts on agency-related products and servicesAccess to large commerical products

and specialty markets

As an Iroquois Member Agent you wont get:

Initiation fees

Interference with current direct contracts

Restrictions on using outside marketsA loss of equity in your agency

More than 1,500 independent agents in 35 states have discovered thebenefits of Iroquois membership. For more information, contactMatt Ward

at 804-320-6984 or email him at [email protected]. You may alsovisit our website at www.iroqma.com.

*subject to individual company approval

Creating Productive Agency-Carrier Relationships for over 25 Years.

The IROQUOIS GroupThe IROQUOIS Group

Somethingto thinkabout.

IROQUOISIROQUOISMid-AtlanticMid-Atlantic

Insurance dept. says producers maymiss LTC Partnership training deadlineByBob Graham

A deputyinsurance commissioner for

Pennsylvania recently saidproducers may

miss the Dec. 31 deadline for completing

required continuing education course-work to sell the Pennsylvania Long-Term

Care Partnership insurance policies.

DeputyCommissioner Ron Gallagher

saidnot meetingthat requirementisnot

a problem because the specifics of the

requirements have not been completed

by the Pennsylvania Insurance Depart-

ment yet. Therefore, he said, its imprac-

tical tothinkthatpeople canmeetthem.

He said regulations to address the situa-

tion should be forthcoming in the next

few months.

The departmentis more producer-fo-

cusedthan[on]thesunset date ofDec.31.

On the insurance departments Web

site, producersare told in Notice2008-05,dated April 19,that theymust completea

one-hour training course prior to any

sale, solicitation or negotiation of a qual-

ifiedPartnershippolicy andcompletean

eight-hour training course (which may

include the 1-hour course) by Dec. 31.

Many agents havecompletedthe one-

hour coursework, butnot theeighthours.

Pennsylvania is one of the first states

to roll out the LTC Partnership program

so course requirements are not final. IFA

Wind coverage for financial losses availableInsurance broker Marsh, along with catastrophe modeling firm Risk Man-

agement Solutions and wind station operator WeatherFlow Inc., developed

an insurance product to address financial exposures faced by businesses due to hurri-

cane-force winds.

WindX-SI provides indemnification for economic losses that result when a named storm

generates winds that exceed a specified velocity within a defined vicinity of a business

location. Coverage is triggered by the combination of two events: wind speed exceeding

a defined velocity and the business suffering a financial loss as a result.

The product is designed to trigger a wide range of risk transfer contracts, including over-

the-counter derivatives, catastrophe bonds and industry loss warranties.

Flexible guaranteed life product launchedMetLife launched a new universal life insurance policy, Guarantee Advan-tage UL, which offers enhanced flexibility with guaranteed protection

through customizable durations of coverageand premium payments, the company said.

The new product is a permanent life insurance policy that offers individuals a tool for

estate and business planning, as well as income replacement to protect families from

the loss of an employed family member. The policys optional Coverage Continuation

Rider features a secondary no-lapse guarantee that coverage will remain in force, evenif

thecash valuehas been reduced to zero.

The product is built using the 2001 Commissioners Standard Ordinary Mortality Table,

allowing clients to reduce their annual premiums by extending payments up until age 121.

Enhanced variable annuity product unveiledHartford Financial Services Group Inc. enhanced its variable annuity product

lineup and introduced Hartford Leaders, combining the options, features,

benefits, service and support from two prior products into one variable annuity.

The product offers a choice of 12 professional money managers with 81 total

investment options, according to Hartford.

In addition, the product offers an enhanced guaranteed lifetime withdrawal benefit

designed to have the potential to grow as the contract holders income needs to grow

over time, the company said.

Program for realestateowners,managersofferedThe Hanover Insurance Group Inc. unveiled a new insurance program offer-

ing specialty coverages for commercial real estate owners and managers.

Real Estate Advantage offers coverages for commercial property, general liability, com-

mercial crime, commercial auto, commercial umbrella and workers compensation.

Property owners may also broaden their coverage and increase limits beyond the basic

package, according to the company.

The programs endorsements include coverage for alternative key systems, anchor store

business income, denial of access, lease cancellation, lost keys, movement of property,

outdoor property, paved areas, realty taxes, tenant move back expense and unintentional

property reporting errors.

Individual health plan with basic benefits startedHealthPartners introduced a new health plan for individuals that offers a

set of basic benefits designed for a broad audience from young people to

early retirees. In addition to three free office visits per year per person, Three For

Free also includes $5 co-pay for all generic drugs, 100% coverage for up to $200 pre-

ventative care annually and a $250 co-pay for an emergency visit. Premiums for the

plan start at $69 per month.

Insurance & Financial Advisor | IFAwebnews.com

Property/Casualty

LifeInsurance

LifeInsurance

Property/Casualty

HealthInsurance

NEWPRODUCTS

For the latest New Products go to IFAwebnews.com.


3/28

Southeastern Pennsylvania / New Jersey / Delaware Insurance & Financial Advisor | IFAwebnews.com August 2008 | 3

(800) 511-9609 www.EmersonReid. com

ReinvestingIn Our Broker Partners

Through our broker channels, we manage over $2 Billion in insured premium, 200,000 medical lives & 7,200 group disability policies.

Talk to us about growing and protecting your group health insurance business. We are a true wholesaler. Brokers are our only clients.

Emerson Reids Ancillary and Worksite Departments

can help you secure your clients.

Strengthen client retention by providing superior benefit

communication and enrollment, along with offering

employer sponsored and voluntary group products.

Contact us to schedule a meeting

on how we enable brokers togrow and protect their

business through

Ancillary and

Worksite.

iR estiv

g

ocan help y

merson RE

un

our clie ysecur

y as Ancillarid

o errr

en

eksite DrWd

tnersr

tmentsar

ewwohno

tsutcatnoC

psreyolpme

communica

eng enr

otsrekorbelban

emaeludehcso

lovdnaderosn

o

ollmion and enr

e en onen r

it

tn

n

ksite.orW

nayrallicnA

rhtssenisub

rpdnaworg

d

hgu

riehttceto

800 511-960 w 9 .E .


4/28


Tony OndrusekPublisher

[email protected]

Bob GrahamExecutive Editor

[email protected]

Todd KarpovichSenior Editor

[email protected]

Sharon SchaferAdvertising Sales Director

[email protected]

Keisha BecklesAdvertising Sales Associate

[email protected]

Terri ReuterAssistant Editor

[email protected]

Molly GreeleyEditorial [email protected]

Jonathan HerndonGraphics Manager

[email protected]

Carol OndrusekCirculation Manager

[email protected]

Insurance & Financial Advisor

10600 York Rd., Suite 203

Hunt Valley, MD 21030

phone: 703-807-2001

fax: 410-667-7977

Insurance & Financial Advisor SOUTHEAST PA-NJ-DEis pub-

lished by New Horizon GroupInc. Thepaper is freefor retail

insuranceand financialserviceprofessionals in theGreater

Philadelphia,South Jersey andDelawareareas.

Thepublisheralsoowns Insurance & Financial Advisor

MARYLAND & WASHINGTON, D.C. EDITIONand Insurance &

Financial Advisor VIRGINIA EDITION.

Insurance & Financial Advisorandits contentis protectedby

U.S. copyright law. Content maynot bereproducedor copied

in any form without permission.

News, photos and articlesare publishedfree. Submissions

may be edited or altered,and become thepublishers property.

Thepublisherassumes no liabilityfor errors oromissions.

PA NJ DEEdition

Mission Statement

To provide an objective and relevant reportof news and issues that affect

the business and success of localinsurance & financial service professionals.

//PUBLISHERS NOTE

Dustingoff the crystalball topredict softmarketend

SisterKay,therenowned psychicwhohas a storefront (complete with a neon

open sign in the window) just down

the road from the IFA offices, probably

can predict what is going to happen in

the property/casualty markets in the

next year or two.

No expert really has any better indi-

cator than whatSister Kaycan see in her

crystal ball, or Tarot cards, or whatever

sheuses to foretell future economicand

financial indicator conditions.

What would Sister Kay sayabout the current market,

which many say is as soft as a

bowl of ice cream sitting in a

hot August sun?

In many cases, particularly

in the personal lines market,

agentsare feelingthe pinch. In

some cases, such as the recently an-

nounced acquisition of HRH by Willis, it

might be fueling mergers and could find

some corporate folks unemployed.

Worse, though, is that this soft market

is unlike many in recent memory due to

severalfactors thatare creating a perfect

storm and are highly UN-predictable.

Soft markets are often cyclical, and a

return to a hard market is sometimes

easyto predict.But many agents aretalk-

ing about the mortgage crisis and the

rising price of gas, which, no pun in-

tended, fuels the fire.

Before the price of gas began to

spike, agents predicted that even withthe mortgage issue, one could expect

to see a return to a hard market nextyear. But since the price of gas plays

such a major role in the U.S. economy

and the world economy some

say the soft market could continue

well into 2010.

And much of this is beyond the con-

trol of the average insurance agent,

carrier executive, the U.S. Treasury, or

even thepresident of theUnited States.

The fluctuations are due to Arab oil in-

terests (gas prices) and investors

(mortgage crisis) who have rigged the

mortgage and petroleum industries for

their own benefit.

At least one recent expert stated that

because premiums declined in June this

year at a rate less than the drop in June

2007, we might be nearing the end of the

soft market.

But at this point, Sister Kays predic-

tionwould holdabout asmuchwater as

that from the most sophisticated, well-

educated economist.

Whatis your prediction? Shootme an

email at [email protected], and we

will letthe rest of ourreaders know whatyou see in your own crystal ball. IFA

What would Sister Kay say about

the current market, which many

say is as soft as a bowl of ice

cream sitting in a hot August sun?

Prior to Eliot Spitzers investigation that led to the

settlements on contingent commissions, many of

Willis competitors would have argued that Willis

had an unfair advantage. The playing field for

Willis competitors then was as uneven as it prob-

ably seems now to Willis and the others who set-

tled contingent commissions cases in New York.

- From Bobs Poston Blog.IFAwebnews.com

Quotes

Producers areoverwhelmed by thecompliance function,yet all of thecomplexity is notgiving clients a betterunderstanding of theproduct they arebuying and we arecontinuing to lose

qualified producers.

Robert KerznerPresident/CEO of LIMRAPage 1

People who build houses on

sand dunes should expect to

pay higher homeowners

insurance rates than those who

live well inland.

Eli LehrerSenior fellow at the CEIPage 1

It used to be a stock broker

was a stock broker. And an

insurance agent was an

insurance agent. The lines have

somewhat been muddled.

Jeffrey TaggartNAIFA President

Page 1

This is a double-edged sword.

There are producers who take

their courses online for

legitimate purposes.

Jack YanoskyPennsylvania Departmentof InsurancePage 1

As the cost of health care

increases, its more importantthan ever to have an agency to

field complaints and work for fair

coverage for consumers.

Rep. JohnYudichakPage 23


5/28

Ario confirmed asPa. commissioner13 months after Rendells nomination,Senate approves Kokens successor

Joel Ario, Gov. Edward

Rendells nominee for

insurance commis-

sioner, wasconfirmedby

the PennsylvaniaSenate,

nearly 13 months after

his nomination.

The confirmation of

Ario, a former Oregon

insurance commissioner, had been held

upbecause theSenate fearedArio wastoo

close to Rendell.Sen. DonWhite (R-Indi-

ana), chair of the Senate Banking and In-

surance Committee, led theeffortto blockthe confirmation of Ario, 54, because of

concerns over how he would handle the

proposed merger of Independence Blue

Cross and Highmark Inc., the states two

largest health insurers.

White ended his delaying of the con-

firmation after the legislature passed a

measureallowing members of the House

of Representativesand Senate insurance

committees toweighin onthe proposed

merger, which would create one of the

largest health insurers in the nation and

one that controls more than half the

states health insurance marketplace.

White also agreed that Ario had been

acting independentlyof Rendell, another

condition heimposed onmoving thecon-

firmation forward, according to reports.

Inthe same week,Ariowasauthorizedby

the Pennsylvania General Assembly to ap-

prove or reject themerger of thetwo com-

panies, not just the combining of the for-

profit operations of the two companies.Ario told Insurance & Financial Advisor

severalmonthsagothat Rendellwarnedhim

that his confirmation might be delayed in-

definitely. IFA

//PROPERTY/CASUALTY

New Jersey auto carrierexpands to PennsylvaniaA New Jersey-based auto carrier has

been approved to write private auto in-

surance in Pennsylvania, company offi-cials announced.

IFA Insurance Co., which has been

writingrate autoinsurancein NewJersey

since 1972, said the agreement with

Pennsylvania regulators is the first time

they company expanded out-of-state.

The company said it hopes to attract

some customers through its Web site. IFA


JoelArio


6/28


Be a part

of something BIGGER!

Hiring the Best People Isnt Everything;Its the Only Thing

A highly competitive compensationmodel with excellent income potential

Wealth-building programs, includingstock options and AXA's SharePlan

Broad spectrum of comprehensivebenefits, including medical anddental, 401k with company match

Breadth of innovative, qualityfinancial products and servicesofferings

Superior marketing and salessupport

Advanced training and coaching

Ongoing professional development

For a confidential inquiry, contact:

Kimberly Dunham 610-660-4310

[email protected]

Karr Barth Associates, IncFinancial professionals are contracted with AXA Advisors,

LLC and AXA Network, LLC, which do not own or o

perate Karr Barth Associates Inc. (KBA).

Equal Opportunity and Affirmative Action Employer M/F/D/V.

AGE-40970(7/07)(7/09)

www.karrbarth.com

Looking for a career with greatopportunity for independence,

education, advancement,and financial reward?

We may be able to provide it!

North Carolina firm expands to New Jersey, DelawareTapco Underwritersprovides software for agents to use for binding and quoting of policies, implements rewards program for agents

Burlington, N.C.-based Tapco Under-

writers Inc. has expanded its products,

quoting and binding process to retail

agents in Delaware and New Jersey.

The companys software helps reduce

thequotingand bindingprocessto a five-

minute phone call, Tapco officials said.

Last year,Tapco reported that it provided

more than 500,0000 telephone quotes to

20,000 agents and producers, generating

morethan $200million in annual revenue.

The expansion into New Jersey and

Delaware comes on the heals of similar

programs in California and Texas. Ex-

pansion into Pennsylvania is in the

works, a company spokeswoman said.

Tapco Underwriters gather basic un-

derwriting information from agents and

enter data into comparative rating soft-

ware, which generates multiple quotes

immediately.

Tapco Underwriters has the binding

authority for more than 1,000 classes of

business, including alltypes of generalli-

ability; general, specialty, and artisan

contractors; property; vacant property

and builders risk; and dwelling/home-

owners, among other lines.

Tapco Underwriters has also imple-

mented a rewards program for agents

who bind policies with its underwriters.

For each policy an agent binds through

Tapco, the producer receives a bonus

commission in the form of a bank-is-

sued debit card that can be used any-

where Visa cards are accepted.

The company began with just three

peoplebuthas sincegrown tofiveoffices

that employ 180 people, service 8,000

agencies andcurrently write in12 states,

company officials said . IFA

With New Jersey, Delaware in the fold,Pennsylvania is in the works, officials say.

//HEALTH INSURANCE

Notari to lead Aetnas regionalsmall-group market salesDavid Notari,a former

regional vice president

for UnitedHealthcares

regional small-group

business, has been

named to a similar po-

sition in Aetnas mid-

Atlantic region.

Notari will be re-

sponsible for driving profitable growth

and retention in the 2-50 member busi-

ness segment, company officials said.In

this role, Notari will lead a team of 48

professionals who are responsible for

promoting small-business benefit solu-

tions and building strong broker rela-

tionshipsthat create opportunities in the2-50 market across the region, which in-

cludes Pennsylvania,Maryland, Virginia,

Delaware, Southern New Jersey and the

District of Columbia, officials said.

Notari spent six years at United-

Healthcare,serving in local, regionaland

national sales leadership roles with the

small-business group servingemployers

up to 99 lives. He was in charge of small

group forUnitedHealthcare whenit tran-

sitioned awayfrom MidAtlanticMedical

Services Inc. or MAMSI, with which it

hadmerged in 2003. As part of that tran-

sition, UnitedHealthcare began allowing

brokersin themid-Atlantic regionto start

selling its products. Under MAMSI, only

itsown brokerscouldsell itsproducts,an

approach that raised the ire of many

health insurance brokers in the region.

Notari has more 20 years of experi-

ence building and managing sales and

marketing organizations, with revenues

of up to $1.2 billion. IFA

// COMPANY NEWS

Shareholders approvedPalisades, North AtlanticHoldings merger

Shareholdersapprovedthe merger be-

tween Berkley Heights, N.J.-based Pal-

isades Safety and Insurance Association

and National Atlantic Holdings Corp., of

Freehold,N.J., the companies announced.Both companies only write policies in

NewJersey and stateregulators must still

approvethe deal.If approved, the merger

willbe finalized in thisyears third quarter

andis expected to boost Palisades market

share as the second largest independent

agency underwriter of auto insurance in

the state, according to reports. IFA

DavidNotari


7/28


Finding exceptional group ancillary benefits

insurance shouldn't feel like a treasure hunt.

Eastern Life & Health takes a fresh outlook on dental, short- and

long-term disability, and term life insurance, leading to better

outcomes for our clients and their employees. If you're looking for

group ancillary benefits insurance, set your course on Eastern.

For more information visit www.elhins.com or call

1.888.654.7100 to speak with an Eastern Life & Health group

sales representative today.

Eastern Life & Health Insurance Co.

Dog bite claims increase to more than $350 million annuallyByTodd Karpovich

Dog bites are becoming an increasingly

bigger problem in the insurance industry

andnowaccountfor one-third of allhome-

owners insurance liability claims, costing

$356.2 million in 2007, up 10.5% from the

previous year, according to a report by theInsurance InformationInstitute.

Theaveragecostof dogbite claimsin-

creased by 11.5% in 2007 to $24,511, ac-

cording tothe most recentdatain there-

port. Since 2003, thecost of these claims

has risen nearly 28%, but the number of

claims paidby insurers hasremained sta-

ble over the past three years at about

14,500, researchers said.

As a result, some insurance compa-

nies are raising premiums with home-

owners and renters insurance policies if

a clients dog bites someone. Most poli-

ciescost between $100,000to $300,000in

liability coverage, and if the claim ex-

ceeds thelimit, thedog owneris person-

ally responsible for all damages above

that amount, including legal expenses,

according to researchers. .

Some companies will require dog

owners to sign liability waivers for dog

bites.Others willcover a petif theowner

takes the dog to classes aimed at modi-

fying its behavior.

Any time specific claims rise that

rapidly, our members take note, but

overall, the bigger problem for our

members is wheninsurersexclude dogs

based on breed rather than biting his-tory, said Kevin Nemith, chairman of

the Insurance Agents & Brokers Service

Group. Given the trend toward in-

creased dog-bite claims, it is reasonable

to expect that insurers will rely more

heavily on breed-based exclusion poli-

cies when they can.

The amount of umbrella liability cov-

erage usually ranges from $1 million to

$10million,andcovers broadtypes ofli-

ability. Most insurance companies have

required minimum amounts of underly-

ing coverage typically at least $250,000

of protection from an auto policy and

$300,000 of protection from a home-

owners policy, according to the report.Thishasbeenon out radar fora num-

berof years, Lynn Knauf, director of per-

sonal lines for the Property Casualty In-

surersAssociationof America,said in an

interviewwith Insurance & Financial Ad-

visor.Lots of times,insurersare just un-

derwriting the risks. Lots of times, they

might not even know in some cases

which of their clients even have dogs. IFA

Industryexperts saidagents should remind dog

owners that they areliable forany injuries their

petscause in various scenarios, including:

If the owner knewthe dog had a tendency to

cause that kind of injury;

If a statestatutemakes theowner liable,

whether ornot the owner knewthe dog had a

tendency to cause that kind of injury;

If the injury was caused by unreasonable care-

lessness on the part of the owner.

// Bites worse than barks for dog owners

Newsstraightto yourinbox.

Subscribe at

// RECOGNITION

Murray recognized with thirdemployee ownershipcommunications awardMurray Risk Management and Insur-

ance, is the recipient of the national

ESOP (Employee Stock Ownership Plan)

Associations 2008 Annual Awards forCommunication Excellence in the cate-

gory of Educational Materials, ESOP In-

tranet. Winners in this category are rec-

ognized for their educational efforts to

inform employee owners about how

their ESOP works or about company fi-

nances, new employee orientation,

training classes and other ESOP-related

communications.

The AACE Awards recognize the out-

standing communications program of

the associations members and winners

are chosen bya panelof five judgesmade

up of both management and non-man-

agement employee owners.

Murrayestablishedits employee stock

ownership plan in 1994. IFA


8/28

The program market has grown and will

continue to expand this year, as insur-

ance companies focus on core concerns

of new business production, premiumwriting and rate profitability, according

to a Guy Carpenter & Co. study.

However, several new trends emerged

so far this year as the markets appetite

for mergers and acquisitions increased,

along with a growinginterestin theuse of

outside capital to fuel new endeavors.

"Theprogram market remainsvibrant

and has become an increasingly attrac-

tive target for new capital," said Carl

Bach, head of Guy Carpenters Program

Manager Solutions Specialty Practice.

"Across programs of all sizes, organi-

zational structures, technology platforms

andservicingcapabilities,we continue tosee a strong interest from carriers in do-

ing business with program administra-

tors and managing general agencies."

Evolving appetites explored

Guy Carpenters fourth annual survey

of domestic insurance companies writing

specialtyprogrambusiness through pro-

gramadministrators examinesinsurance

carriers evolving appetites for program

business through program administra-

tors and managing general agents and

touches on key trends, including market

size and dynamics and operating plat-

forms.Interest by carriers to do more busi-

ness with PAs and MGAs extends across

a number of areas, including providing

insurance forprograms,partneringin ex-

panding operations to grow revenues

and even potentially purchasing a

PA/MGA operation via merger or acqui-

sition, said Bach. "Given these largely

positive trends, all indicatorspoint to an

exciting and active year in the programmarketplace," he said.

Majority says market will grow

The survey found that 56% of survey

respondents expect themarketto grow in

2008, while 32% expect it to remain flat.

Only 12% expect the market to contract.

Respondents perceive the PA/MGA

market to be large, with 92% estimating

the total PA/MGA market to be at least

$20 billion in gross written premium.

Some 33%specified a range of $20billion

to $30 billion, with 38% estimating the

market at between $30 billion and $40

billion. More than 20% believe that the

PA/MGA market generates GWP in ex-

cess of $40 billion.

Profitability perceptions remainedfairly consistent with the Guy Carpen-

ters 2007 survey. Some 92% of respon-

dents estimate a combined ratio for the

market of 90% to 100%, with 68% put-

ting the market at 90% to 95%.

Respondents identified their primary

challenges as new business production

(77%), premiumgrowth (66%) and main-

taining rate levels (58%). The survey also

identifies the compatibility of systems as

an increasingchallenge,givencarriersin-

creasingflexibility in the use of front-endrate, quote, bind, and issue systems. IFA

// EXPANSION

Russell Bond & Co. opensNew Jersey officeBuffalo-based Russell Bond & Co.

opened its first office in New Jersey.

The new office is called the called the

Financial Institutions Underwriting Of-

fice and has its headquarters in Hamil-ton, N.J.

The office, which holds binding au-

thorities on behalf of underwriters at

Lloyds London, specializes in excess

flood,forced-placedproperty and related

coverage,accordingto the companys an-

nouncement and is open for retail and

wholesale producers nationally. IFA

Economy will not slow specialty program marketSector remains vibrant and is an increasingly attractive target for new capital, practice researcher says

Interest by carriers to do more business withPAs and MGAs extends across many areas.


So many eyes,

so many options.

Reach every insurance agency and retail

financial service office in the mid-Atlantic region.

In print, email and online.

Be seen.

Call 703-807-2001.


9/28


you had the

freedom to offer

your clients more...

YOU WOULD OFFER INDIVIDUAL DISABILITY INCOME (DI) INSURANCEFROM METLIFE. Help your clients build a safety net to prepare for the if inlife. With MetLife, youre choosing a company with 140 years of experiencethat provides employee benefits to more than 90 of the top one hundredFORTUNE 500 companies1.

We work with Brokers and independent agents to help you recommendcomprehensive disability income coverage for your clients.

For Quotes or to request a DI Proposals Request form:

Barbara Woessner Brokerage Sales [email protected] Free: (800) 280-8339 x 4211

For Questions:

Kevin Handforth Brokerage Account [email protected] Free: (800) 280-8339 x 4196

Brendhan Crowley Brokerage Account [email protected]

Toll Free: (800) 280-8339 x 4213

Benefits for the if in life.SM

1FORTUNE 500, April 2007 and MetLife Customer Relationship Datamart. FORTUNE 500 is a registered trademark of FORTUNE

magazine, a division of Time Inc. Metropolitan Life Insurance Company, New York, NY 10166. 2008 MetLife, Inc. UFS0707-5083 L04089402(exp0409)

Unitrin teams with Guidewire SoftwareUnitrin Inc., a financial services company, selected Guidewire ClaimCenter,a Web-based claims management system from Guidewire Software, to

improve its end-to-end claims adjusting processes, reduce claims costs and enhance

customer service.

Unitrins property/casualty companies will implement ClaimCenter to handle their entire

claim volume of 700 to 800 claims per day, according to Guidewire. The first project

release will encompass claim intake in 2009.

Berkshire selects DI illustration systemBerkshire Life Insurance Co. of America selected Insurance Technologies

ForeSight to enhance its disability income insurance illustration system.

As part of a launch of an individual disability income insurance line, Berkshire will provideits sales force with a Web- and desktop-enabled illustration system to deliver marketing

opportunities and upgraded efficiencies for field releases, the company said.

In addition, it will allow integration with the Berkshire mainframe and Web-based applica-

tions. ForeSight will enable Berkshire to provide each channel, broker dealer, agent or

agency with a branded interface, product list, product variations and marketing content,

all using one set of code, company officials said.

HUB California acquires Nett & ChampionHub International of California Insurance Services Inc. acquired the assets of

Nett & ChampionInsurance Services, which specialized in employee bene-

fit consulting and brokerage services.

The Nett & Champion team will join HUB California at its existing office. HUB California

president, Kirk Christ, said that the acquisition added greater depth and breadth to the

specialized practices that Hub International continues to build.

Terms of the transaction werenot disclosed.

Life Brokerage Partners allies with Allianz LifeLife Brokerage Partners announced its latest association with Allianz Life

Insurance Co. of North America. Life Brokerage Partners can now offer

Allianz Lifes fixed annuities and life of long-term care insurance products in most states

across the country.

MetLife tobecomefirstmarketingpartner ofstadiumMetLife Inc. reached an agreement in principle to be the first major market-

ing partner of the new Meadowlands stadium in New Jersey, future home

of the New York Giants and Jets.

As a corporate partner, the New York-based life insurer will have the exclusive naming

rightsto brand one of thefour main entrances tothe new stadium as well as one of the

four main scoreboards inside the stadium. MetLife will also become the official life insur-

ance company of the Giantsand Jets.

The insurer said the sponsorship fits in perfectly with MetLifes significant sports promo-

tion strategy, which includes its three blimps and its TV network partnerships to cover

major sporting events.

BenefitMall acquires BenefitPort SouthwestBenefitMall, a broker services company, acquired BenefitPort Southwest, a

full service general agency that provides solutions for individual, group and

senior clients. BenefitMall will gain an office in Fort Worth, Texas, where BenefitPort

Southwest is headquartered, and expand their presence in San Antonio.


Property/Casualty

LifeInsurance

EmployeeBenefits

LifeInsurance

LifeInsurance

HealthInsurance

DONEDEALS

For the latest Done Deals, go to IFAwebnews.com.


10/28

Since 2001, premiums for PPO and indemnity dental

plans have risen as much as 56%, according to the

National Association of Dental Plans. That leaves many small busi-

nesses unable to afford coverage. While more than 90% of


More producers ditchingtheir Series 6 licensesCompliancediscourage independentagents from selling registered products

ByTerriReuter

Citing burdenswithcompliancereg-

ulations, more independent producers

are dropping their Series 6 license, ac-

cording to a recent study by LIMRA In-

ternational.

More thanonethird of the independ-

ent producers surveyed said they

dropped their Series 6 license over the

past two years. The Series 6 license per-

mits a producer to sell mutual funds,

variable annuities and variable life in-

surance products.

The survey consisted of more than600

members of LIMRAs producer panel who

described how compliance has affected

their business practices and the sources

they use to stay informed about newcompliance regulations.

I think it [survey] indicates peoples

legitimate concerns about allof thecom-

pliance, said Randy Scritchfield, Inde-

pendent representative and a recent of-

ficerfor the Greater Washington chapter

of the National Association of Insurance

andFinancial Advisors. Scritchfield,who

saidhe has a series7 license because itis

more comprehensive that a Series 6,

added, he does not reject good compli-

ance in any way.A Series 7 license, the most compre-

hensive andoneof themostdifficultcer-

tificationtests to pass,enables someone

to be a stockbroker who can sell stocks,

bonds,options, limitedpartnershipsand

investment company products like open-

and close-end funds. Series 6 and Series

7 licenses are regulated by FINRA, the

successor to the NASD.

Thereportunderscores the problems

associatedwith todays complex compli-

ance requirements, said RobertKerzner,

president andCEO of LIMRA.Producers

are overwhelmed by the compliance

function, yet all of the complexity is not

giving clients a better understanding of

the product they are buying and we are

continuing to lose qualified producers.

Whilemorethan 80%of the producers

hold at least one FINRA license, they are

increasingly dropping their Series 6 be-

cause of regulatory issues. In the report,many producers said the volume of in-

vestmentbusinessdid notjustifythe ad-

ditional requirements or expense.

I am aware of several people being

dropped formbroker-dealersbecause of

failure to meetminimum production re-

quirements and then throwing in the

towel, said David Barol, regional con-

sultant in the mid-Atlantic region for

Penn Mutual Life Insurance Co.

The reasoning behind the increasing

minimumsis the proposition thatlow pro-

ducers cost the broker-dealer more, even

though the payouts are low which in turn

leads to higher broker-dealer margins,

Barol said.Therationaleis that thelackof

activity causes the producers to makemis-

takes, leading to client lawsuits and thatthelack of activitycauses these producers

to require extra help from the broker-

dealerstaff to getbasic work done.

Half of the producers surveyed said it

takes too much time to meet the in-

creasing requirements and it confuses

clients. Managers of larger agencies said

they added specific compliance person-

nel to handle regulation issues. About

50% saidtheir agency managershandled

compliance issues and 12% said they

outsourced, the report said.The survey also indicated that 46% of

affiliated agents said they receive infor-

mation from their agencys compliance

office, but that number drops to 9% for

independent producers.

If you are serious about the business

and it pays for itself, or you are not, and

the compliance is not worth the income

generated, said John F. Dallavalle of the

Western Maryland chapter of the Soci-

ety of Financial Services Professionals.

Barol said that he has not seen any

studies thatshowedlow volume produc-

ers as the cause of l itigation against bro-

ker-dealers.

Nevertheless, as broker-dealers raise

minimums, they will continue to shove

the occasional producer out of the busi-

ness, he said. IFA

One-third of independent producers said theydropped Series 6 license in last two years.

companies with 1,000-plus employees

offer group dental benefits, as many as

60% of companies with 6 to 24 employ-

ees do not.

This presents a need for an alternative

plan to fill the void left by surging dentalpremiums a plan that allows smaller

companies to offer group coverage while

keeping their spending under control.

Insurance providers looking to help

small businesses solve this dilemma have

turned to the past, dusting off a tried-and-

true concept: the scheduled

reimbursement dental plan.

Group scheduled reimbursement den-

tal plans often cost employers

significantly less than PPO or indemnity

plans set up to pay based on reasonable

and customary (R&C) charges, since they

are not subject to inflationary trends.

With a choice of benefit levels,

employers can select their schedule

based on the companys budget and spe-

cific needs. The schedules can be

adjusted or maintained as desired, mean-

ing lower group premiums and higher

plan satisfaction for employees.

An employer can couple the scheduled

plan with a PPO as a buy-up option to

provide even greater flexibility for employ-

ees who might want a more

comprehensive plan. Any way you slice it,

the employers cost will always be lower

than the traditional dental premium and stay that way!

Employees benefit because there are

no network restrictions, no waiting peri-

ods or guesswork as to what the

insurance company pays per procedure.

Even before a procedure is started, the

employee can negotiate with the den-

tist about the balance due.

Since scheduled reimbursement dental

plans offer savings and cost stability for a

company, while giving employees access

to quality dental care, they present bro-

kers with an excellent opportunity to

increase their dental plan portfolios.

Reimbursement plans are easy to

understand, include an orthodontia bene-

fit and encourage the insured to be a

savvy consumer of dental benefits!

NNeeww--oollddddeennttaallppllaannssccaannhheellppssmmaallllbbuussiinneessssccoonnttrroollpprreemmiiuummssppiikkeess

about the author

Jamie Black is an MGA for AIGs Group

Benefits Portfolio and can be reached at

610-292-9200 or [email protected].

DentalFocus By Jamie Black

// LITIGATION

Supreme Court elects not to rule on life insurance case

The U.S. Supreme Court chose not to

rule on a case of a widow denied $426,000

in life insurance benefits because federal

retirement law does not permit her to

seek compensation, according to pub-

lished reports.

The woman, who lives i n Houston,

wanted the court to rule that her hus-

bands employer breached its fiduci-ary duty.

Under the Employee Retirement In-

come Security Act of 1974, beneficiaries

are entitled to sue to obtain equitable

relief, including a court injunction or

restitution.

However it does not include legal relief

or monetary damages.

The 5th U.S. Circuit Court of Appeals

ruled that ERISA prohibited her from

seeking the monetary damages equaling

the insurance benefit.

Aetna denied the woman, Melissa Am-

schwand, benefits because her sick hus-

band never returned to work. To trigger

the life policy, he needed to return for at

least one day.Amschwand alleges that the employer

was responsible for the error because

employees never told them or provided

documents explaining the return-to-

work requirement, and told them that

they would be covered when the em-

ployer switched plans from another com-

pany to Aetna. IFA


11/28

executives said their markets do not over-

lap. They said the merger will give the

combined company 53% of the market,

but an analysis by an expert with CRA

International put that number at 73%.As a result, the merger would give the

companies an unfair advantage to the

combined company as far as pricing,

consumer choice and perhaps quality,

according to Monica

Noether, an executive

vice president at CRA

International, a con-

sulting firm.

70% market share

When competi-

tive entry is difficult,

as appears to be the

case in Pennsylvania,

a single company

with more than 70%

of the market is likely

to have the ability to

exert market power,

which means they

possess the ability to profitably raise

price or reduce quality, innovation orchoice in ways that can harm con-

sumers, Noether testified.

The companies disputed that num-

ber, saying it was unclear how Noether

came to that conclusion. Furthermore,

Kenneth Melani, president and CEO of

Highmark, said the merger would boost

the market because it will have 18,000

employees between the two companies;

provide $113 million in paid taxes; and

provide $1 billion in savings that will go

back to cutting health care costs.The proposed transaction will not re-

duce competition or choice in any mar-

ket in Pennsylvania, Melani said. Sim-

ply put, the two companies and their

Pennsylvania insurance subsidiaries do

not compete with each other.

Facing the national carriers

Neither disagreed and said Highmark

and IBC do not compete because they

had a 10-year non-compete agreement

that expired on the eve of their an-

nounced plan to combine. The deal,

covering the five-county region of

Greater Philadelphia, ended in 1996, of-

ficials said.

Melani countered that the combined

companies will also be able to better

compete against some of the national car-

riers in the state, including Philadelphia-

based Cigna, Aetna and UnitedHealth-

care. Officials with those companies tes-

tified that IBC and Highmark are already

succeeding as separate companies.

Stephanie Bernaciak, a vice president

of sales and account management forUnitedHealthcare, testified her company

has made significantly lower, more com-

petitive offers when bidding against

Highmark in the Western part of the state.

However, because of Highmarks domi-

nance in the region, the company comesback to buy the business with a still-lower

bid, she said.

This sounds like good news for the

members, who will save on their health

insurance costs, Bernaciak said. The

irony is that the lower rates will only be

offered because Highmark faced com-

petition from my company, United-

Healthcare.

State Sen. Don White, a Republican

who chairs the Senate Banking and In-

surance Committee, has been one of themost vocal critics of the proposed merger.

White has asked federal lawmakers to

take more of an active role in scrutinizing

the proposal.

Make no mistake: This merger will

eliminate competition now and in the

future, White testified. It is absolutely

unfathomable that it wont eliminate ex-

isting and potential competition.

Executives from both companies said

they would not seek to be for-profit enti-

ties. Both companies operate as non-

profit health insurers. IFA

Want more on the merger?

For more coverage of the proposed

merger, including articles about each days

hearings and breaking news, go to the best

source, IFAwebnews.com/Pennsylvania.


From page 1

Merger: Debate over competition goes on

// Far reaching effects

The affected subsidiaries from the consolidation of Highmark Inc. andIndependence Blue Cross include:

First Priority Life Insurance Co.

Gateway Health Plan

HM Casualty Insurance Co.HM Health Insurance Co.

d/b/a Highmark Health

Insurance Co.

HM Life Insurance Co.

Highmark Casualty Insurance Co.

Highmark Senior Resources

HMO of Northeastern

Pennsylvania

d/b/a First Priority Health

Keystone Health Plan West

United Concordia Cos.

United Concordia Dental Plansof Pennsylvania

United Concordia Life and

Health Insurance Co.

QCC Insurance Co.

Keystone Health Plan East

AmeriHealth HMO

Vista Health Plan

Region 6 RX Corp.

// EditorsPicks Highlights and exclusives from online

IFAwebnews.com/Pennsylvania

A FEW HIGHLIGHTS AND EXCLUSIVES FROM ONLINE

Agents, brokers should see no effects from OFC

plan, creator says.

Insurance agents and brokers should not be hurt by the federal governments plan forreform of insurance and financial service reform is approved, a chief architect of the U.S.

Treasury Departments plan said.

I cant see how this would be detrimental to insurance agents and brokers, said David G.

Nason, assistant secretary for financial institutions and a senior advisor for the federal agency.

Nason spoke as members of the House Financial Services Committees capital markets

subcommittee approved two insurance reform bills. By voice vote, the subcommittee the

National Association of Registered Agents and Brokers Reform Act (H.R. 5611), a bill creat-

ing a national organization for licensing of producers, something originally proposed in the

Gramm-Leach-Bliley Act, a financial services reform measure, several years ago.

AugustPicks IFAwebnews.com/PennsylvaniaI Philadelphia mayor joins other city leaders in call for universal health

Mayors of some of the nations biggest cities, including Philadelphia Mayor Michael

A. Nutter, are pushing for some type of universal health program to support the

uninsured and help bail out residents faced with skyrocketing premiums.

I Pennsylvania, New Jersey men indicted on fraud chargesTwo former New Jersey insurance agents were recently indicted along with two

Pennsylvania men on charges that they stole hundreds of thousands of insurance

premium dollars and left insurance customers without valid insurance.

I Pa. passes bill giving insurance commissioner authority over mergerThe Pennsylvania Senate and House of Representatives passed a bill authorizingthe Pennsylvania insurance commissioner to approve or reject the proposed

merger of the states two largest health insurers.

IndustryPicksEach day our editors deliver the most important and relevant national insurance industry news to

post at IFAwebnews.com. These stories only appear online at IFAwebnews.com.

Health IFAwebnews.com/HealthI Bipartisan bill submitted for universal healtht

I

Number of people without access to care continues to grow, report saysI PEOs, outsourcing of human resources functions pose threat to health agents

Life Insurance IFAwebnews.com/LifeI Life insurers forging closer marketing ties with banks

I CFP board says new standards will give 'greater measure of confidence

to consumers

I Penn Life to pay $925,000, offer restitution to settle unsuitable annuities

sales allegations

Property-Casualty IFAwebnews.com/PropertyI Without contingent commission agreement change, Willis could not acquire

HRH, Willis CEO says

I Lawmaker proposes program to help homeowners in vulnerable areas

for disasters

I Smallest agencies, brokers face biggest threat with distribution consolidation


12/28

Firemans Fund receivessocialresponsibilityawardIn recognition of the achievements of Firemans Fund Insurance Co.s corpo-

rate philanthropy initiative, Firemans Fund Heritage, the company was

awarded a 2008 American Business Award for Best Corporate Social Responsibility Pro-

gram in thenation.

The insurer donatedmore than $18 million to more than 1,000 different fire

departments across the country, according to Firemans Fund. The Firemans Fund Her-

itage program was designed to provide needed equipment, training and educational

tools to local fire departments.

Farmers Group puts company history on display

Farmers Group Inc.s board of governors recently dedicated The FarmersHeritage Center to celebrate 80 years of history since the founding of the

company in Los Angeles, Calif.

The center, located at the University of Farmers in Agoura Hills, Calif., displays thousands

of pictures, memorabilia, mementos, signs, film, publications and buttons detailing the

companys history.

At the centers dedication, seven long-time members of the Farmers Insurance Cos.

werehonored. They included Charles Brisco, the first Farmers insured, and Duane Gen-

gler, who earned every district production, size and profitability record in the organization

during his nearly 40-year term as a Farmers district manager.

MetLife honored for its multicultural hiring effortsMetLife was recognized by Working Mother magazine as a 2008 Best Com-

pany forMulticultural Women for the third year in a row.The initiative

celebrates employers that are establishing groundbreaking diversity policies and

programs to encourage the hiring and advancement of African-America, Hispanic, Asian-

American and Native American women, according to MetLife.

This years winners had to complete a detailed application process, with questions focus-

ing on the representation, recruitment and retention of women of color, MetLife said.

Aetna unveils new physician relations principlesAetna recently unveiled its Guiding Principles for Physician Relations, whichformally define the companys continued commitment to buildingits rela-

tionships with the medical community.

The principles coincide with the expiration of the Physicians Settlement Agreement with

Aetna and arerelevant at a time when concerns about health care access, quality and

affordability are on the minds of Americans, the company said.

Among the items that Aetna committed to are allowing physicians to terminate from the

companys network 90 days after giving notice, with no need to show cause; maintain-

ing the Physician Advisory Board, which provides advice on issues of importance to

doctors; and not using all-product or gag clauses in contract.

Gen Re opens liaison office in IndiaGen Re recently opened a new liaison office for life/health reinsurance busi-

ness in Mumbai, India. The official openingceremony was held at theTaj

Mahal Hotel in Mumbai, where several senior managers of the Indian life insurance

industrycame together with a group of Gen Re senior managers.


Property/Casualty

Property/Casualty

LifeInsurance

HealthInsurance

COMPANYNEWS

For the latest Company News, go to IFAwebnews.com.

OfficeExpansion


Excellent products.High compensation.

Annuities Impaired Risk Disability Life Long-Term Care

Underwriting Specialists, Inc.Serving the brokerage community since 1975

215-540-4470

800-652-5700

www.undspec.com

[email protected]

Spend more time prospectingand less on paperwork:

A team of professionals that understands your needs

Fast service on new applications

Expertise to find the best solution for special situations

24-7 access to forms, quotes, software, applicationsubmission, and carrier and product information

Access to advanced commissions, bonuses, incentives

Real-time case status using our EStatus web page

Easy online contracting

Let us help you build your business with:

in partnership

Great service.


13/28

Pennsylvania and NewJersey are doing

better than other parts of the country

with the number of uninsured, according

to a report from the Centers for Disease

Control and Preventions National Center

for Health Statistics.

The mid-Atlantic, which included the

two states, had an uninsured percent-

age (12.2%) lower than U.S. overall

(16.6%), according to the report.

Delaware had a sample size that wastoo small and was excluded from the

state-specific analysis.

Pennsylvania ad New Jersey also per-

formed better than the rest of the nation

with the percentage of people under 65

years of age who were uninsured, and

the percentage of children under 18 years

of age who were uninsured, covered by

private health insurance, or covered by

Medicaid or SCHIP. Pennsylvania Gov. Ed

Rendell is further trying to combat theproblem through a sweeping program

called, Prescription for Pennsylvania,

and New Jersey has taken steps toward

universal health care with a bill, expected

to be signed by Gov. Jon Corzine, that ex-

pands health insurance program for low-

income families.

Employers must help

New Jersey can no longer afford to

provide health care for individuals whose

employers refuse to provide even a min-imum amount of health benefits, said

New Jersey Sen. Sweeney, a Democrat

serving Gloucester, Cumberland and

Salem and chair of the Senate Labor

Committee. Over half of New Jerseys 1

million uninsured individuals either

work or have a family member who

works, yet are not provided with health

benefits. Its time for large employers to

meet their responsibilities and provide

health care benefits.

New Jersey did not perform as well

as the rest of the nation for the per-

centage of persons under 65 years of

age who were uninsured at the time of

interview, by percent of poverty level

coming in at 35.1%, compared to

29.7% nationally

Nationally, 67.8% of the population

under age 65 in the United States had

private health insurance, whereas 13.2 %

had insurance through Medicaid or State

Childrens Health Insurance Program and

3.4 % had other types of public coverage,

leaving 16.6% uninsured during the

2004-2006 period.

New England was best

New England had the lowest per-

centage of uninsured individuals un-

der age 65 in 2004-2006 and the South-

west had the highest, according to a re-

port from the Centers for DiseaseControl and Preventions National Cen-

ter for Health Statistics.

Overall, 91.1% of New Englanders had

some kind of health insurance in 2004-

2006. The Southwest had the greatest

proportion of uninsured 18.2% of chil-

dren and nearly 30% of adults.

The report is based on data collected

from 240,000 people under age 65 as part

of the 2004-2006 National Health Inter-

view Survey. IFA


Its no secret what GBS stands for. As a benefits plan administrator that offers self-funded

products, we provide you with strategic advantages to attract and retain clients. Partner with us

for innovative product and plan designs, advanced technology and superior service. To find out

more about us and to gainyourcompetitive advantage give us a call. GBS stands for you.

6 North Park Drive, Suite 310, Hunt Valley, Maryland 21030 800.638.6085

2400 Research Blvd., Suite 420, Rockville, Maryland 20850 800.359.9065

email: [email protected] www.gbsio.net

Pa., N.J. better than rest of nation with uninsuredCDC report shows mid-Atlantic region had 12.2% people without health coverage

Pennsylvania, New Jersey did well in coveringthose under age 18 and under age 65.

//NEW PRODUCT

Unum expands smallbusiness program to Phila.Unum added a new program, Simply

Unum, for Philadelphia and 40 other

cities.

The launch began in April after a pilot

phase during which sales for SimplyUnum were nearly 60% ahead of projec-

tions, company officials said. To date,

nearly 1,000 lines of coverage have been

sold through the Simply Unum offering,

company officials said.

Designed specifically for small to mid-

size businesses, Simply Unum provides

group disability and life insurance cou-

pled with voluntary benefits. More than

28,000 product combinations possible,

company officials said. IFA


14/28


Timely Analysis

Two Tools of the

Trade blog gives

our publisher andexecutive editor achance to dig

deeper than theheadlines with

commentary rangingfrom the serious

to the sublime.

Quick Access

Our top navigation

enables you to gowhere you want atany time, whether

its local news,national news or themany other features

of the Website.

Regional News

Get a quick readon regional news

or click on any areato get all of

its latest news.

Career

Advancement

IFAwebnews.com

has partneredwith nationallyknown firms to

offer job postings,as well as coursesfor obtaining

continuing

education creditsand designations.

Find It Fast. Even more news updated daily is only a click away.

The new and improved IFAwebnews.com delivers even more

of the local, regional and national insurance news and industry

information that you have come to expect from us. But thats just

part of the story. IFAwebnews.com also boasts a wide range of

information and resources that beyond the printed page.

Revised, refreshed.

Retrieve.


15/28

PeopleNews Insurance & Financial Advisor


The Philadelphia Chapter of the Char-

tered Property Casualty Underwriting

Society announced its 2008-2009 officers

and directors. The new officers are Presi-

dent Dawn Upperman, President-Elect

Kellie Goldfien, Vice President Shannon

Rodgers, Secretary Cindy Wolkiewicz

and Treasurer Larry White. The new direc-

tors are: Margo Turtureja, Donna

OBrien, Mayleen Gallagher, Michael

Etemad, Theresa Gregory and Anita

Devan.

Patrick T. Cassidy was

named vice president

and managing director

of Wilmington Trust ofPennsylvania. Cassidy

works in WTPAs

Philadelphia office.

William J. Shelow Jr.

was appointed president

of Duncan Financial Groups Virginia-

based subsidiary, Atlantic Financial

Group. Shelow previously served as presi-

dent and chief operating officer of

Harleysville Life Insurance Co. in Pennsyl-

vania.

Chris Vincent joined

Devon, Pa.-based Bala

Financial Group as a

financial representative.

The company is a mem-

ber of John Hancock

Financial Network, a

national network of inde-

pendent career firms.

Harry A. Dinger Jr. was

appointed to senior vice

president and surety

practice leader for Hilb

Rogal & Hobbs Co.s

Metro Northeast region,

which includes New

Jersey and southeastern

Pennsylvania. Dinger

has more than 25 years of experience in

the field.

Mindy Colby was named as an exclusive

agent for Allstate New Jersey Insurance.

Donna M. Denver was named senior vice

president of learning, development and

process improvement at Harleysville

Insurance. In her new role, Denver will be

responsible for enhancing the quality of

the companys workforce through the

implementation of learning, career devel-

opment, education and organizational

effectiveness initiatives.

Geraldine Henley was appointed vice

president and director of claims for Com-merce Insurance Services. Previously,

Henley worked for the Graham Co. in

Philadelphia, Pa.

York, Pa.-based E.K.

McConkey & Co. Inc.

announced several

recent staff additions,

nominations and

awards: Karen Mum-

mert was nominated to

the board of directors ofthe Central PA Chapter

of the Construction

Financial Management

Association. Mummert

leads McConkeys con-

struction/surety division.

Barbara Matthie was

named Ambassador of

the Year by the York

County Chamber of

Commerce. Matthie is an account execu-

tive with York, Pa.-based McConkey.Karen Sterner earned her Life and Health

license. Sterner is a select account admin-

istrator with McConkey Benefits &

Financial Services.

Lincoln Financial Group appointed

Bobby Greenberg, Austin Rosenthal and

Todd Manke to head the innovation initia-

tives for its Retirement Income Security

Ventures group, a research and develop-

ment.

Brandon Shuman

joined Murray Risk

Management and

Insurance as a commer-

cial producer in the

companys Quarryville,

Pa., branch office. Previ-

ously, Shuman worked

as a commercial account

representative for a local broker and as a

mature market associate manager for AIG.

Donald W. Wright Jr.

was appointed manag-

ing director and casualty

practice leader for Hilb

Rogal & Hobbs Co.s

metro northeast region,

which includes New

Jersey. Previously,

Wright was with Aon Risk Services.

Allstate recently gave out several awards

at the sixth annual Allstate Leaders

Forum. Among the recipients were: Ren-nel Rodarmel, an exclusive agency owner

from Williamsport, Pa., who was inducted

into Allstates 2008 Hall of Fame; Neil

Greco of Roseland, N.J., who was recog-

nized as one of three top performing

Allstate exclusive agency owners with a

2007 Best in Company Award; and Mark

VanArnam of Aston, Pa., who secured his

Best in Company honor as Allstates high-

est producing personal financial

representative for 2007.

Harleysville Insurance Co. made several

staff additions. Theodore A. Majewski

was named president and chief operating

officer of Harleysville Life Insurance Co.;

Beth Friel was named vice president of

human resources for Harleysville

Insurance; Danielle Bartosiewicz was

named assistant vice president of

business planning and analysis; and Vere

Bryan as vice president commercial lines.

Kevin W. Conboy was hired as chief

executive officer by The NIA Group,

based in Paramus, N.J. Conboy is the for-

mer president and CEO of Acordia.

(Continued on Page 16)

At Denex Dental, dependability is morethan just a claim. It has been provensince 1965.

From unrivaled plan flexibility down to

3 life groups, to a straightforwardenrollment process, to a dedicated

account management team that keepsthe i ssues of f your desk. Wantdependable? Choose Denex Dental.

See how 43 years of experience makes

us the dental carrier you can depend onat www.denexdental.com

Is this how othercarriers deal with

an emergency?

Dependable?

Please call Sales Support at 866-433-6398 or visit ourwww.denexdental.com

Patrick T. Cassidy

Chris Vincent

Harry A. Dinger Jr.

Karen Mummert

Barbara Matthie

Brandon Shuman

Donald W. Wright Jr.


16/28

(Continued from Page 15)

Paula Mayers Styles joined GAB RobinsNorth America Inc. as director of learning

and organizational development for North

American Operations. She was a senior

learning consultant at Horizon Blue Cross.

Mary Jane Wharton

was named 2008 Insur-

ance Woman of the Year

by the Insurance

Women of Sussex

County, Del. Wharton is

a personal lines teamsupervisor with

Atlantic/Smith, Crop-

per & Deeley.

William D. Gruccio was promoted to sen-

ior vice president of The Penn Mutual Life

Insurance Co.s career agency system.

Previously, Gruccio was vice president of

the CAS.

Selective Insurance Co. of America, a

subsidiary of Branchville, N.J.-based Selec-

tive Insurance Group Inc., made several

recent appointments: Fred J. Ferraro was

appointed senior vice president and equity

portfolio manager. Previously, Ferraro was

an analyst with J.P. Morgan. Robert J.

Butler was made vice president of flood

operations. Previously, Butler served as

assistant vice president of flood

operations. Cynthia B. Heismeyer was

appointed vice president of marketing and

communications. Heismeyer joined Selec-

tive in 1986. Alison J. Mahan was made

vice president of business operations. Prior

to this appointment, Mahan served as

assistant vice president and manager ofpersonal lines operations. Bruce B. Mona-

hanwas appointed vice president of

internal audit. Prior to joining Selective,

Monahan was assistant vice president at

Liberty Mutual Group. Steven M. Pass-

manand John E. Wisinger were made

vice presidents and assistant general coun-

sels. Most recently, Passman served as

managing attorney for Selectives East

Hanover Staff Counsel Office. Wisinger

was vice president and associate counsel

for the Chubb Corp. before joining Selec-

tive in 2005. Deborah J. Gangemi was

appointed assistant vice president of the

flood service center. Gangemi joined

Selective in 1999. Debra H. Paziora was

appointed assistant vice president and

bond underwriting manager. Pazoria joined

Selective in 2005.

Murray Risk Manage-

ment and Insurance,

based in Lancaster, Pa.,

named three new assis-

tant vice presidents.

Clarence Kegal was

previously an account

executive in Murrays

commercial sales andservices division. Marla Redding was a

sales and service support supervisor in the

construction services division prior to being

promoted to assistant vice president. Mar-

sha Quade was previously a human

resources manager.

The National Association of Insurance

and Financial AdvisorsPennsylvania

elected the following leaders to 2008-1009

at its annual convention in Harrisburg: Ran-

dall Kaufmann as president; WilliamKrause as president-elect; Joseph G.

Marrazzo Jr. as vice president; and Jason

Muskey as secretary. Kathleen Nieder-

mayer, Tracy Rush and Brad Small were

elected to the board of directors. John C.

Hynes, Robert Donlan, Darrell Westby

and Frank Lazarus were elected as

regional vice presidents.

Christopher J. Maguire was appointed as

the chief operating officer for Philadelphia

Insurance Cos. Maguire served as thecompanys executive vice president and

chief underwriting officer since February

2003.

Fred Gismondi joined Allstate New Jer-

sey as an exclusive agent.

Michael ONeil and Lee Bellarmino were

elected as vice presidents of New Jersey

Manufacturers Insurance. Also elected

were Mitchell Livingston as assistant

secretary and counsel and Ryan Diehl as

actuary.

Several financial profes-

sionals with Devon,Pa.-based Bala Finan-

cial Group qualified for

the ACE Awards. They

are: Marc J. Lowen-

berg, Brian F.

McKittrick, J. David

Scott and William Wilk.


ExperiencedPennsylvania WholesalerDedicatedto Finding Solutions for Retail Agents

ATLANTIC SPECIALTY LINESO F P E N N S Y L VA N I A , LL C

Phone: 877-317-8173

Fax: 877-317-8172

Call 610-940-1662 [email protected]

A.M. BEST A RATED CARRIERS

LET US BECOME YOUR WHOLESALER OF 1ST CHOICE

These are just a few of the classes written:

Commercial & Residential General Contractors | Artisan ContractorsRoofers | Flea Markets | Shopping Centers | Habitational |

Vacant/Rehab/Builders Risk | Restaurants/Bars/Taverns | Lessors RiskYachts | Products Liability | Professional Liability

Offering a wide range of Superior Commercial

and Professional Lines Products

with Comprehensive Coverage at Competitive Prices Dianne SpragueSr. VP & Principal

PeopleNews Insurance & Financial Advisor

Mary Jane WhartonMarla ReddingClarence Kegal

Marsha Quade

J. David ScottBrian F. McKittrick

William Wilk

The easiest way to submit events is online:

Send Your News!

Phone: 215.227.2024 Fax: 410.667.7977Email: [email protected]

// PROPE RTY/CASUALTY

New BOP set for smaller,property-driven risks offeredHarleysville Insurance introduced

its new Businessowners Program, which

targets smaller, property-driven risks in

hundreds of different business classes,

according to the company. Market seg-

ments targeted include habitational,

mercantile, office, service/processing

and wholesalers. The product was intro-

duced under Harleysvilles StarAdvantage

banner in Pennsylvania and New Jersey.

The new program includes class-spe-

cific enhancements for funeral directors,

printers, professional offices and veteri-

narians, as well as options that can fur-

ther tailor coverage to the specific needsof clients within the core business classes

typically written by the companys

agents. Higher liability limitsup to $2

million per occurrence with a $4 million

aggregateare also available.

Coverage for actual loss of equipment

breakdown and spoilage from a power

outage are included in the policy. IFA


17/28


877.584.8112

www.savoyassociates.com

Visit our website to learn more and to view our schedule of

free Continuing Education courses!

Flex your Ability with Savoy Associates.

with SAVOY ASSOCIATES.

As a leading health and ancillary general agency, Savoy

Associates can help you make the most of your abilities

with our continuing education programs, online knowledge

base, expert advice, and renowned industry professionals

- all at your service. And our unique team-based structure

gives us the flexibility to personalize the type of assistance

that works best for you and the business owners who put

their trust in you.

Expand your Knowledge Bolster your Relationships

Wield your Talent Elevate your Service


LEGALBRIEFSPenn Life agrees to unsuitable annuities fine

PennsylvaniaLife Insurance Co. agreed to a $925,000 fine and to offerresti-tution to up to 2,200 purchasers of annuities that Wisconsin regulators say

were unsuitable.

The WisconsinOffice of the Commissioner of Insurance said Penn Life sold more than

$55 million in annuities that may havebeen unsuitable, mostly to Wisconsin senior citi-

zens, between2000 and 2007.

Under the settlement agreement, Penn Life is ordered not to sell annuities in Wisconsin

for four years, comply with Wisconsin law regarding suitability and sales practices and

supervise its insurance agents to ensure compliance with the law. Penn Life also agreed

that Wisconsin officialsmay revoke itslicense to do business in Wisconsin if it is deter-

mined to have materially violated the settlement agreement.

The settlement also requires Penn Life to offer up to 2,200 Wisconsin consumerswhowere sold annuities or asset enhancer policies by its agents or brokers the opportunity to

have their purchase reviewed by an independent remediation firm. If it is determined

that the sales was improper, the consumer will be offered remediation according to the

terms of the settlement.

State Farm wins case in Texas appeals courtStateFarm Insurance wona case in a Texas appeals courtagainstthe

states Department of Insurance in a dispute over the companys

homeowners insurance rates.

The dispute involved a 2003 order by the insurance department that State Farm lower its

rates by 12%. The department said that the company was overcharging its customers

by that percentage, according to written reports.

StateFarm refused to lower itsrates, and thelegal fight that ensued over thepast five

years brought the total of the alleged overcharges to $650 million, reports said.

The appellate court found unanimously in favor of the insurer, saying that it was denied

due process when thedepartmentordered it to lower its rates.

State Insurance Commissioner Mike Geeslin will be charged with reviewing State

Farms rates again, now using a tougher standard to find out how much the companys

customers have been overcharged since 2003, reports said.

N.J. allows drivers to sue for emotional distressThe New Jersey Supreme Court recently ruled that in somecases, individu-alsmay be eligible to sue foremotional harm afterwitnessing thedeath or

serious injuryof a relative in a caraccident, according to written reports.

In a 4-3decision, the courtoverturned an appeals court ruling in a case involvinga

woman who was diagnosed with post-traumatic stress disorder after witnessing her

mothers death in a car accident. The Supreme Courts decision means that the verbal

threshold provisionin thestate lawlimiting the ability of a driver to sue does not applyin

some cases involving emotional distress, reports said. The Insurance Council of New

Jersey expressed concerns over the implications of the ruling to New Jerseys auto

insurance reforms, according to reports.

Delaware court rules in favor of insurerAn insurer recently prevailed in a case involving the Delaware City oil refin-ery. The states Supreme Court rejected an appeal by Premcor Refining

Group and Valero Energy over the ruling that Premcors insurance company was only

obligated to cover up to $9 million in compensatory damages for two wrongful death

actions. In addition, theSuperior Courtruledthat the insurer wasnot responsible forcov-

ering punitive damages brought against Premcor in the deaths of two workers in 2005.

LifeInsurance

Property/Casualty

AutoInsurance

Property/Casualty

For the latest Legal News, go to IFAwebnews.com.


18/28


The Future of Insurance

Smaller

independentagencies are

thriving!THAT IS IF YOU ARE

AN SIAA INDEPENDENT

STRATEGIC AGENCY!

With access to many competitive

companies and preferred

commissions and profit sharing

without minimums, SIAA

Independent Strategic Agencies

ARE thriving! To secure your future,

keep the customers you have and to

gain new ones, you need SIAA.

OVER 55 AGENCIES IN

PENNSYLVANIA!

V I S I T O U R W E B S I T E A T

WWW.SIAA4U.NETSTRATEGIC INDEPENDENT AGENTSALLIANCE

The AlternativeThe Strategic Independent Agents Alliance

(SIAA) is the future of insurance

distributionNOW. Since 1983, SIAA and

our Master Agencies have made a business

out of helping local independent agencies

stayindependent, while helping Captive

Agents, Direct Writers, Producers,

and Life and Financial Service Agents

becomeindependent.

Get Instantly BigAs soon as you join an SIAA Master Agency,

you become instantly BIG by accessing the

companies that you need in order to

compete with and win against any agency.

Your agencys income and value will

increase beyond any amount that you can

generate on your own.

Visit our website at www.siaa4u.net TODAYto find out how over 2430 independent

agencies like yours have increased their

income and value by joining SIAA.

Central& WesternPA

Susquehanna Agents Alliance, LLCA Division of The Glatfelter Agency717-849-4908fax: [email protected]

Northeastern/North CentralPA

Insurance Agency Alliance, Inc.A Division of Richard B. Ryon Insurance570-622-7200fax 570-628-2058ewin

Date post:	09-Apr-2018
Category:	Documents
Upload:	acelitigationwatch
View:	217 times
Download:	0 times

WP - Insurance & Financial Advisor News 072008

Documents