Fighting
fires
15
Pennsylvania
New Jersey
Investors who feel
they have been
burned turning to
indexed annuities.
Delaware
Required reading for successful insurance and financial service professionals
Volume 5, Issue 4 |
Transitions
New Eastern CEO
Eastern Insurance
Holdings’ new CEO
is Steven Boguski,
the first employee
hired by outgoing CEO Bruce
Eckert.
Page 4
1
Addiing Philadelphia
HealthSpring buys
Bravo Health, a
Medicare
Advantage provider,
with sights on Philadelphia
market.
Page 6
2
Going global
CIGNA acquires
Vanbreda
International to
expand its reach to
more of the world’s
expatriates.
Page 11
3
Highmark, Del. Blues forge
alliance to confront reform
False ‘slip and fall’
claims no longer
getting the slip
Insurer said to be looking for a new partner
since CareFirst partnership ended in 2006
Businesses, insurers digging deeper into cases
in face of 57% increase in questionable claims
By Bob Graham
The affiliation of Blue
Cross Blue Shield of Delaware
with Pennsylvania’s largest
health insurer, Highmark, signals a logical alliance, not a
shifting of the health insurance industry’s tectonic plates,
according to experts.
Kenneth Melani
“I don’t think it’s a sign of
things to come,” said Mark Khatib, vice president of sales and operations for Employee Benefits Corp. of America, a McLean, Va.-based re-
gional insurance brokerage. “I don’t think their
deal will lead to others among health insurers.”
Kenneth Melani, president and CEO of Pittsburgh-based Highmark, said the deal responds to
federal health reform’s passage in March.
"As the health care marketplace continues to
evolve…it is imperative for health insurers to reduce their administrative costs and operate
more efficiently," Melani said
in a statement. “This affilia- See “Alliance” on p 13
// Health reform to fuel increase
in usage of preventative services
A new forecasts suggests the federal health
insurance changes will mean greater use of
preventative care offering
Page 12
Property-Casualty :: Page 17
10
Dogs biting into
homeowner’s claims
Everywhere.
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Appreciation for life insurance’s value
grows as people’s income, education rises
Percentage of full-time workers enrolling in
workplace coverage rises 5% in last year
By Bob Graham
Subscription information
available online at:
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subscribe
October 2010
Employees with higher household incomes
and education find life insurance more appealing, according to the national survey of
full-time workers.
The survey from The Hartford Financial Services Group comes as the life insurance industry
struggles to recover from several years of flat sales. Life insurance sales increased 7% in
the second quarter this year,
compared to last year’s second
quarter, which was the worst
quarter in 70 years.
After several years of sagRon Gendreau
ging, life insurance sales are
showing new signs of life, proSee “Life” on p 4
“Slip and fall” insurance
claims are starting to undergo
tougher scrutiny as businesses
and their insurance companies
seek to combat a 57% increase
in questionable claims in the
last 2½ years.
The National Insurance
Joe Wehrle
Crime Bureau (NICB) said
more than 4,600 questionable claims inquiries
were received in 2008, 2009 and the first half of
this year. Most of those claims were tied to commercial policies.
See “Claims” on p 9
Owners not looking
to sell agencies
As an agency owner, I am:
Eager to sell my agency
and take what I can
get in this market
37%
Waiting to see
if I can get more
for it later
20%
Not interested in
selling my agency
at this time
IFAwebnews.com poll,
August 9-23, 2010.
Call us today to meet with one of
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IFAInsights
// Publisher’sNote
Fears rise as reform
is brought to life
2010 Reader Survey
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of Our Survey Sweepstakes.
Insurance & Financial Advisor and IFAwebnews.com asked you, our
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Debbie Rowley
COO, The Pinnacle Group
Virginia Beach, Virginia
The Pinnacle Group is a full-service employee benefits firm that has
served the Hampton Roads community since 1989. It employs 19
individuals and offers a full-range of group and individual health
insurance products, as well as human resources consulting.
Passage of health care reform has done
nothing to quell Americans’ concern about
the rising cost of health care and insurance;
in fact, it has made it worse.
A Thompson Reuters survey from August shows that consumer confidence in
their ability to pay for and access health
care decreased five points since December,
three months before the law’s passage.
What does one have to do with the other?
Plenty. President Obama says reform will
lower costs, increase access, improve quality and diminish the role of insurers. None
of those has happened, and likely won’t.
People feel duped.
"I doubt the average person really knows
what has been implemented," said Gary
Pickens, the survey’s chief researcher. "The
healthcare debate raised people's expectations and there is now disappointment as a
result that the problem isn't solved."
Democrats don’t dare mention health care
reform as the nation nears midterm elections.
Republicans can expect a bounce from
consumer dissatisfaction. And that is well
before the negative consequences of the
law – higher premiums, purchase mandates, increased employer costs and decreases in care quality – take effect.
Ironically, the law does not address costs.
It simply shifts money around. But its complexity could actually inhibit access.
Rodger Bayne, vice president at Group
Benefit Services, told agents recently that
implementation will lead to more confusion and obstacles. “The burden on the
small employer will be daunting,” he said.
Bayne cited such issues as how small
Tony Ondrusek
Publisher
Tony@IFAmedia.com
Thanks to all
who participated!
Bob Graham
Executive Editor
BGraham@IFAmedia.com
Sharon Schafer
Advertising Sales Director
SSchafer@IFAmedia.com
2 | Pennsylvania / New Jersey / Delaware
Insurance & Financial Advisor
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IFAwebnews.com
businesses will find
the time and in-house
expertise to communicate intricacies of insurance exchanges
and subsidies to em- Tony Ondrusek
ployees. Or how large Publisher
employers will traverse a complicated path. He asked if medical-loss ratios will put agents out of business, and about the effects of the young
and healthy opting out of standard pools,
leaving fewer people to pay for more services. “Mini-med plans will explode,” he said.
Is up to six month to wait to see a specialist acceptable once 32 million people
join the system? And did the law’s designers consider outcomes such as how a newborn dependent of a 26-year-old dependent on her parents’ plan will get coverage?
Major gaps remain. Finally, Bayne asked,
why must employers soon list benefits
costs on W-2’s? Potential taxation?
The villagers are restless, but not yet a
torch-wielding mob intent on ousting the
mad doctor and his monstrous creation.
Destroying it completely is unlikely anyway, Bayne suggested, because the law’s
tentacles already reach far and wide.
So we villagers may have to accept the monster in our midst, and focus our worry on rising unemployment, lack of consumer spending, and record-setting decreases in home
sales.Yet other issues
that the mad doctor
must address.
That’s my take,
Insurance & Financial Advisor
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phone: 877-IFA-5001 / 410-667-0864
fax: 410-667-7977
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assumes no liability for errors or omissions.
October 2010
Did you know?
Good oral hygiene
does more than make
you look good . . .
It can also reduce your risk for some pretty
nasty stuff.
The connection between a healthy mouth and
a healthy body has never been clearer. Research
continues to show the correlation between poor
oral health and more serious conditions such as
heart disease, stroke and diabetes.
That’s why United Concordia’s plan designs
contain features like Preventive Incentive® to
exclude Type 1 services from annual deductibles
and maximums, and Smile for Health® Maternity
and Enhanced benefit options to provide
increased benefits for those at higher risk.
Ask your United Concordia sales representative
how United Concordia’s plan designs, contracts
and educational materials come together
to make a stronger dental benefits plan for
your clients’ employees. Reach us online at
www.UnitedConcordia.com or call 1-888-884-8224.
"%7*'"r'PS1SPEVDFS6TF0OMZ
Pennsylvania / New Jersey / Delaware
Insurance & Financial Advisor
|
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October 2010
|
3
Eastern’s founder passes torch to his first employee
Eckert to remain on board, but cede CEO
title to Boguski, firm’s president and COO
The first employee hired by Eastern Insurance Holdings, a Lancaster, Pa.-based insurance company, has been
named successor to its
founder, Bruce M. Eckert.
Michael L. Boguski, 47,
now the company’s president and chief operating
Bruce Eckert
officer, take over the role
of chief executive, replacing the current
CEO, Bruce Eckert, 66. Eckert hired Boguski,
the company’s first employee, in 1987.
The succession plan is scheduled to take
effect Jan. 1, 2011, and Boguski will remain
president.
“Together, they have grown the Eastern
Alliance Insurance Group into one of the
most profitable writers of workers’ compensation insurance in each of its core operating territories,” said Robert M. McAlaine,
chairman of Eastern’s board of directors, in
a statement. “They created and nurtured a
culture of superior agency relationships,
client service, and core values of dedication,
collaboration and mutual respect among
[the company’s] team of employees.”
McAlaine added that the succession plan
“ensures continued strong leadership” for
Eastern, calling Boguski “a proven leader in
the industry, ideally suited to succeed” Eck-
ert. Boguski was a key leader in the company’s strategic planning, profitable geographic expansion, and handling of changing economic and insurance cycles,
“As I look to the future,” he said, “I am
committed to profitable expansion of our
core workers’ compensation business as a
key driver of future earnings while main-
Boguski has been with the Lancaster, Pa.based insurance company since 1987.
according to McAlaine.
“This succession plan has been years in
development,” said Eckert. “I am excited to
transition into my new role and am extremely confident” in Boguski and other
leaders at Eastern.
Boguski said he was “honored” to be
named the company’s CEO.
taining a strong balance sheet and dynamic culture.”
Eastern Alliance Insurance Group, operates in Pennsylvania, Maryland and
Delaware; Eastern Life and Health Insurance Co.; Employers Alliance, which operates in Maryland and Pennsylvania; and
Eastern Re Ltd. IFA
Life: Policy appeal linked to education
From page 1
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insurance companies to innovate Clinical
Collaborative Plans providing affordable
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other health-rich features. We work with
brokers to connect clients with the plan
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For more information, contact Kevin Hausmann,
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4 | Pennsylvania / New Jersey / Delaware
The survey results, released in conjunction
with Life Insurance Awareness Month, also
pelled in part by a 23% increase in whole indicate that the overall number of workers
signing up for life insurance benefits increased
life policies sales in the second quarter..
Total individual life insurance new an- from 64% in 2009 to 69% in 2010. Women
showed the biggest jump in
nualized premium rose 7%
participation, going from 60%
in the second quarter and
// IFA_FAST FACT
last year to 69% this year. Men
9% for the first six months
increased their participation
of the year, according to
Full-time workers with less
by two percentage points to
LIMRA’s U.S. Individual Life
than $50,000 in household
70% in 2010.
Insurance Sales survey.
income were least likely to
The Hartford’s survey
The Hartford’s survey
completely understand life
insurance (29%) and were
found employees with a
found Generation Y (ages
least likely to sign up for
high school education had
18-29) had the lowest level
this benefit (64%).
the lowest level of underof life insurance understanding of life insurance
standing and participation
Source: The Hartford Financial
Services Group
and were least likely to sign
compared to Generation X
up for this benefit (65%)
(ages 30-44) and baby
compared to workers with a college de- boomers (ages 45-65). Sixty-four percent of
gree. Exactly 30% of workers with only a Gen Y said they completely or mostly unhigh school education said they com- derstand life insurance compared with
pletely understand life insurance.
77% Gen X and 79% of boomers. IFA
Meanwhile, survey respondents with a
household income of less than $50,000 CORRECTION
were least likely to completely understand An article in the September edition relife insurance (29%) and were least likely to garding a proposed Pennsylvania public
sign up for this benefit (64%).
adjuster’s law contained several errors.
The latest version of HB 2370 requires
The average earnings for a full-time
U.S. worker is nearly $38,500, which the public adjuster’s contract to contain
translates to a considerable segment of disclosure that the policyholder has a “five
the employee population that would fall business” day right of rescission. The bill
into this category, noted Ron Gendreau, also would allow an adjuster to have an
executive vice president of The Hart- interest in a restoration or repair business,
but not salvage, as long as it is fully disford’s group benefits.
“We are concerned that many working closed to the insured. The bill would conAmericans are putting their family’s finan- tinue the prohibition on performing such
cial security at risk. No matter what your work until after the claim is fully resolved.
Insurance & Financial Advisor regrets
income level, you can benefit from life inthe errors. IFA
surance,” Gendreau said in a statement.
Insurance & Financial Advisor
|
IFAwebnews.com
October 2010
NewProducts
For more go to IFAwebnews.com/Products
New coverage enhancements
included with all policies
Zurich North America Commercial launched Coverage C
Casualty Business Crisis Expense to cover
reputational risks and related issues.
PropertyCasualty
Coverage C was offered as an endorsement
before Zurich added it to every Umbrella Liability Policy, with a limit of $250,000, according
to the company. Policy enhancements include
flexibility to go over defense within or in addition to the limits, built-in frequently requested
enhancements and elimination of the shortrate cancellation provision.
New iPhone app gives access
to health care information
Highmark introduced its
Highmark Health@Hand
iPhone application, a free tool that locates
nearby medical facilities and provides health
information.
Health
Insurance
Members can search for health care
providers such as hospitals and pharmacies
that are closest to them at any point in time,
says the company.
The application can also access information
about various medical conditions and offers
tips for a healthy lifestyle.
Online tool created to identify
client product solutions
American General Life Cos.
introduced “I’ve Got a
Client,” an online tool to help financial services representatives find product solutions
for clients.
Life
Insurance
The three-step program generates life, annuity and accident and health product solutions
based on a client’s needs and demographic
characteristics, according to the company. It
was created as a quicker and easier way for
producers to find solutions for their clients
and also allows producers to access product-specific marketing tools, said American
General in a statement.
Cos. partner to offer quicker
and cheaper repair programs
Crawford & Co. partnered
with CEI Group to offer
clients access to CEI’s auto and heavy
equipment repair programs, thereby reducing claim costs and vehicle down time, the
company said in a statement.
PropertyCasualty
With CEI’s provider network, Crawford can
offer vehicle programs that include 4,000
Pennsylvania / New Jersey / Delaware
repair shops, estimates that are audited for
accuracy and a national limited warranty,
according to the company. With these programs, small companies can offer services
similar to larger carriers, the company said.
Crawford and CEI are also offering programs
for rental and glass claims.
New plan bridges life policy,
cash accumulation gap
Foresters introduced SMART
Universal Life, a product that
offers flexibility, adjustable payments limits
and protection and savings potential, according to the company.
Life
Insurance
SMART Universal Life combines lifetime
protection with the potential for tax-deferred
cash value accumulation. Cash accumulation
grows at a guaranteed minimum annual 3%
interest rate and offers no lapse guarantee
for the first 10 years, according to Foresters.
SMART Universal Life offers a variety of
riders including accidental death, children’s
term and family health benefit.
Network security insurance
solution coverage expanded
Chartis expanded Specialty
Risk Protector to give customers additional protection for network
security and privacy risks.
PropertyCasualty
Policyholders are now offered
enhancements such as expanded coverage
for business income or revenue losses,
express coverage for losses resulting from
cyber-terrorism and for claims arising from
breaches of confidential information, according to the company. Policyholders also will
have access to the eRisk Hub risk management and loss prevention portal, which
holds information on safe security and privacy practices.
Optional rider helps investors
plan for their retirement
Transamerica launched the
Income Link rider, an optional
rider that helps address income needs in the
early stages of retirement.
Life
Insurance
The rider offers withdrawal options and
potential for increased income. Withdrawal
options provide 4% of the withdrawal base
for life, after the initial rider withdrawal
years; some options include 10% for two
years, 4% thereafter, and 9% for three
years, 4% thereafter. It also allows
investors to lock market gains with the highest of the past 12 monthly values.
Insurance & Financial Advisor
|
IFAwebnews.com
October 2010
|
5
// PROPERTY-CASUALTY
Federal appeals court reopens portions of Marsh bid-rigging suit
A federal appeals court restored part of a
class-action suit involving scores of insurance companies and brokers accused of
conspiring to rig bids.
The restoration of the case comes three
years after U.S. District Judge Garrett
Brown, presiding in Trenton, N.J., dismissed the original national class action,
which alleged that up to 20 defendants,
including insurance brokerages and insurance companies, colluded to steer business to certain insurers in return for payments or kickbacks.
In a 200-page ruling, the U.S. Third Circuit Court of Appeals in Philadelphia reinstated antitrust and racketeering claims
allegedly involving Marsh and McLennan,
along with claims against some brokerages accused of conspiring to steer bids.
Among insurers named in the reinstated
suit are American International Group,
Chubb, Hartford Financial Services Group,
Liberty Mutual Group and Travelers.
The reinstatement is the latest chapter
in a 6-year-old battle over alleged bid rigging and racketeering in insurance, initiated when then-New York Attorney General Eliot Spitzer began investigating the
allegations. Spitzer filed a civil suit in October 2004, accusing Marsh of bid rigging.
Marsh had already paid its part of the
class action, settling the case for $69 million in February 2009 and Spitzer’s suit for
$850 million in January 2005. IFA
Financial Planning
fastest
growing careers.
is among the
Philadelphia market is gem in
HealthSpring’s Bravo Health buy
Baltimore-based Medicare Advantage
plan provider sold for $545 million
HealthSpring will create the seventh
largest Medicare Advantage plan – and obtain an “immediate and sizable presence”
in the Philadelphia market — through its
planned acquisition of Baltimore, Md.based Bravo Health.
Nashville, Tenn.-based HealthSpring
will acquire Bravo Health, a privately held
company, for $545 million, adding more
than 100,000 Medicare Advantage and
290,000 Part D Prescription Plan members
to its rolls. The deal is expected to close by
the end of the year.
The deal is the latest in a series of efforts
by companies to form new relationships in
the face of federal health care reform.
“With diversified geography and increased membership scale, the combined
companies will be even better positioned
in the new environment created by health
insurance reform,” Herb Fritch, chairman
and chief executive of HealthSpring, said
in a statement.
Demonstrating a commitment
Earn the credentials that matter.
Financial-management acumen is
expected to be one of the most
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and the CFP® designation is the best
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Enhance your career opportunities by
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The next session begins on
January 28. Courses will be
held on Friday evenings and
Saturdays on alternating weekends.
// LICENSE REVOKED
Agent can’t duck 114 false
AFLAC policy applications
An insurance agent from Secane, Pa., had
his insurance license revoked after state
regulators determined he submitting 114
false insurance applications.
Derek Michael Chastain was terminated
by AFLAC Nov. 30, 2009, in connection with
the case, according to Pennsylvania Insurance Department records.
Between April 2005 and August 2009,
Chastain submitted 165 policies to
AFLAC to cover his family and friends,
records show. Of those policies submitted, 114 were declined and the premium
never submitted to AFLAC, according to
case files.
Authorities say Chastain knowingly
submitted business to AFLAC that contained false, inaccurate or misleading
information that caused the policies to
be issued. He started working for AFLAC
in September 2003. IFA
// HEALTH INSURANCE
Medicare Part D costs come in 43% lower than forecast
Certified Financial Planner Board of Standards, Inc.
owns the mark CFP®, which it awards to individuals
who successfully complete initial and ongoing
certification requirements.
Attend an information session on Wed., Nov. 10 - 5:30 to 7 pm
or Webinar on Tues., Dec. 7 - 12 noon to 1 pm.
To register, call 412.396.5600.
6 | Pennsylvania / New Jersey / Delaware
Bravo Health is an operator of Medicare
Advantage coordinated care plans in Pennsylvania, the Mid-Atlantic region, and
Texas, and Medicare Part D stand-alone
prescription drug plans.
“I cannot think of a better way to demonstrate our commitment to Medicare Advantage and our confidence in the long-term future of the program than the transaction we
are announcing,” Fritch said. “This acquisition will extend HealthSpring’s reach into new
geographies, including an immediate and sizable presence in the Philadelphia market.”
Fritch said the transaction will create
the largest company in the country focusing exclusively on the Medicare Advantage
population. The prescription plan will be
the ninth largest in the U.S., he said.
Jeff Folick, chairman and chief executive
of Bravo Health, said the acquisition is “the
right next step for our company, and we
are fortunate to be aligning ourselves with
an organization that is so similar to ours.”
Bravo Health generated premium revenue of about $832.8 million in the first
six months of this year.
Bravo Health, based in the Brewers Hill
area of Baltimore City, is not expected to
leave those offices, according to a report in
the Baltimore Business Journal, which also
indicated that the company has been
adding up to 40 jobs a month to meet its
growing membership’s needs.
HealthSpring owns and operates Medicare
Advantage plans in Alabama, Florida, Georgia, Illinois, Mississippi, Tennessee, and Texas,
along with a national, stand-alone Medicare
prescription drug plan. IFA
Federal authorities say the 10-year cost estimate for Medicare Part D came in 43% lower
than the initial cost estimate of $634 billion.
The 2004 to 2013 period is now estimated to cost about $373 billion, according to the U.S. Centers for Medicare &
Medicaid Services, which administers the
program. The federal agency said the re-
Insurance & Financial Advisor
|
IFAwebnews.com
duction was because “plans are negotiating better pricing than anticipated.”
Medicare Part D spending was one of
many focal points in the recent debate
over health reform.
The reduction in costs was hailed by the
Pharmaceutical Care Management Association as proof its tools are working. IFA
October 2010
LEGALBRIEFS
20 insurers pay N.Y. $716,800
for ‘prompt pay’ violations
News from the federal and state courts.
Federal court refuses revival of fraud suit against Aetna
A federal appeals court declined Aetna investors’ request to revive a securities fraud suit against the company for allegedly making false statements to
boost the health insurer’s stock price so three executives could sell $61 million in stock.
PropertyCasualty
The unanimous three-judge ruling by the 3rd U.S. Circuit Court of Appeals in Richmond, Va.,
said that “safe harbor” provisions in securities law provided protection against the allegedly
misleading statements, according to the ruling.
“General statements about the company’s dedication to ‘disciplined’ pricing and commitment to ‘discipline and rigor’ could not have meaningfully altered the total mix of information
available to the investing public,” U.S. Circuit Court Judge Jane R. Roth wrote in re Aetna
Inc. Securities Litigation. The allegedly false statements were ruled immaterial.
Man to pay IRS $2.9 million for role in Ponzi scheme
A California man was sentenced to 70 months in prison and ordered to pay
$2.9 million in restitution to the Internal Revenue Service for his role in a
Ponzi scheme involving a bogus foreign currency exchange investment fund.
Health
Insurance
John S. Lipton, formerly of Mission Viejo and Laguna Hills, Calif., pleaded guilty in April to
conspiracy to defraud the United States and tax evasion.
Lipton and several co-defendants were indicted on charges stemming from operation of the
bogus fund from May 1998 to June 2002, which received investments of millions of dollars.
The remaining four defendants are scheduled to begin trial in April 2011. A separate trial on
charges related to the Ponzi scheme is set for September 2011.
Post-Katrina airport rebuilding project head charged
PropertyCasualty
State law mandates that health insurers
resolve claims within 45 days of receipt
tremely effective in ensuring that consumers and health care providers are paid
in a timely fashion and it remains an excellent deterrent against entities slow to
pay undisputed claims,” New York Insurance Superintendent James Wrynn said in
the statement.
New York insurance regulators clamped
down on 20 health insurers and HMOs operating in the state by fining them a total of
$716,800 for failing to promptly pay claims.
The New York State Insurance Department said the vio// Fines paid to New York
lations of New York’s Prompt
• Aetna, $25,100
• HealthNet, $13,600
Pay Law stemmed from com• Affinity, $154,000
• HealthPlus, $9,600
plaint files that were closed by
• HIP, $54,500
•
Amerigroup,
the agency between Oct.1, 2008,
$43,500
• MetroPlus, $3,300
and Sept. 30, 2009.
• Neighborhood
• CIGNA, $57,750
New York’s Prompt Pay Law re• Empire, $31,500
Health,
quires health insurers and HMOs
• Excellus, $8,000
$1,000
to pay undisputed health insur• NY-Presbyterian,
• Fidelis, $7,200
ance claims within 45 days of re• GHI, $68,500
$9,600
• Oxford, $31,100
• GHI HMO, $2,400
ceipt, ensuring timely payment.
• Guardian, $2,600
• UnitedHealthcare,
By agreeing to pay the fines im• HealthFirst,
$159,650
posed by the NYSID, the compa•
Wellcare, $9,000
$24,900
nies acknowledged that they
failed to pay certain claims within
the state-mandated timeframe, officials
noted in a statement.
“The Prompt Pay Law has been ex-
Insurers and HMOs have paid the state
$9.1 million in prompt pay fines since 1998
when the law became effective. IFA
The man who led a New Orleans airport’s rebuilding after Hurricane Katrina now
faces with his wife charges that he filed a false insurance claim on his vehicle.
Save the Date
Sean Hunter, who was airport director at Louis Armstrong New Orleans International Airport,
and his wife, Shauna Crowden Hunter, are each charged in a federal criminal information
document with filing the false claim declaring their BMW as a total loss after the hurricane in
2005, according to WDSU.
Sean Hunter took a leave of absence last year and then resigned when pictures of the BMW
surfaced and sparked federal investigation, according to the report. Among the charges are
conspiracy to commit mail fraud and making false statements to the FBI, the report said.
October 19, 2010
8:00AM – 4:00PM
ACE Conference Center,
Agency’s treasurer embezzled $796,000 in premium
Lafayette Hill, PA
www.aceconferencecenter.com
The man who took over an insurance agency previously owned by former
Arizona Rep. Richard Renzi was found guilty in federal court of embezzling
$796,000 in insurance premiums, which he funneled to the former congressman’s account.
Federal
Case
Financial Services Super Day, bringing
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Dwayne Lequire, 51, of Elgin, Ariz., was convicted by a federal jury in Tucson, Ariz., of eight
counts of embezzling insurance premiums and one count of conspiracy, according to Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Dennis K.
Burke for the District of Arizona.
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Between 2006 and 2009 Lequire embezzled the money, funneling it to Renzi’s personal
accounts. He was found to have conspired with the former congressman.
Fairfield Sentry liquidated after $3.2 billion Ponzi scheme
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Services
Fairfield Sentry sued 17 of its investors in an attempt to recover from a $3.2
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Bernard Madoff, 72, pleaded guilty to organizing the Ponzi scheme and was sentenced to
150 years in federal prison in Butner, N.C., according to Bloomberg.
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Fairfield Sentry, an affiliate of Fairfield Greenwich Group, said it raised money for Bernard L.
Madoff Investment Securities without knowing it was a scheme and has no way of repaying
the $3.2 billion without recovering $160 million in payments to shareholders since 2004.
Tickets and exhibit info:
Susan Whitehead: 610-765-1417 • office@naifa-gp.org
For the latest Legal news go to IFAwebnews.com/Record
Pennsylvania / New Jersey / Delaware
Insurance & Financial Advisor
|
IFAwebnews.com
October 2010
|
7
Exits&Acquisitions
By Kenneth H. Marks
Key concepts for successful deals
Merger and acquisition transactions can be a viable alternative for accomplishing a number of strategic objectives in the context of building and
realizing value for emerging growth and middle-market companies (those
from startup to several hundred million dollars in revenue).
In recent months, big firms and small
agencies have been buying and selling more
frequently than in the last few years, a signal
to many that the big chill in M&A activity is
finally coming to an end.
Let’s take a high-level view of the buyside and sell-side processes, and a
framework for thinking about and planning
for each of these possibilities.
Exits
In many instances the distinction
between selling a company (i.e., an
“Exit”) and raising capital is measured by
the amount of equity sold and the contractual rights obtained by the buyer.
Financing growth raises the issue of
long-term shareholder objectives, which
many times involve eventual liquidity. As
the wave of business transitions driven
by baby boomers planning their legacy
and succession continues, some shareholders are confronted with a
multifaceted decision of how to finance
the continued growth of their business,
create liquidity for their owners, and lay
the foundation for operations independent of the owner/founder.
Others see the opportunity to buy out
partners or create some liquidity while
staying in the game for what may be
Kenneth H. Marks is founder and
a managing partner of High Rock
Partners, providing growth-transition leadership, advisory and investment. He is lead author of
the Handbook of Financing
Growth published by
John Wiley & Sons.
He can be contacted at
khmarks@HighRockPartners.com.
ing the relative mix of debt and equity with
an eye toward company growth objectives
and the required go-forward capital. For
example, a leveraged recapitalization will
most likely increase the company’s debt in
exchange for distributions, dividends or
purchase of equity.
Acquisitions
Acquisitions can meet a number of
goals if approached and executed as part
of a long-term strategy. Some reasons
Acquisitions can meet a number of goals
if approached and executed as part of a
long-term strategy to build a business.
Focused.
…on helping our agents grow.
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Business • Auto • Home • Surety
8 | Pennsylvania / New Jersey / Delaware
deemed a second bite at the apple. Selling
a controlling interest to a financial buyer
(i.e., a private equity group) and rolling over
or keeping a minority interest until a subsequent sale or liquidity event happens can
buy time until the company’s value
increases (under the watch of the new
owners with their capital). There are
numerous examples where the sale of the
minority interest in the follow-on transaction (three to five years from the first
transaction) resulted in as much economic
gain as the original sale to the buyer.
Shareholders and partners may find a
full or partial Exit attractive for many reasons, including diversifying away the
risk of having too much personal net
worth in a single asset, or minimizing
the risk of growth by obtaining a financial or strategic partner.
In this case, several potential solutions
exist, including recapitalization, sale to a
financial buyer while keeping a minority
stake, or an outright sale to a strategic or
financial buyer with contractual rights for
some level of future performance.
Recapitalization
Generally a recapitalization will involve a
lower cash-out (as a partial Exit or staged
Exit) for the active owners than a buyout
(which involves a change of control). A
recapitalization typically focuses on chang-
Insurance & Financial Advisor
|
IFAwebnews.com
executives pursue acquisitions include to
accelerate revenue growth, to enter an
adjacent market space, or to expand into a
new geography or obtain a physical footprint in a new location.
Other reasons include obtaining access,
new customers or technology, strengthening the pool of talent and capabilities,
completing or augmenting a product or
service line, or reducing costs or capture
market share.
The first phase of a typical acquisition
process addresses finding a target company to buy; this begins with the
strategic plan that should lay the foundation to determine many of the
parameters and the focus of the process.
The second phase of the process is to
structure the deal, close the transaction
and integrate the business.
Whether selling the entire company or
raising a tranche of growth capital (in the
form of debt or equity), what is really being
sold is the future cash flow of the
business. While past performance provides
credibility to management’s claims, future
cash flow is the foundation for valuation
and usually the primary reason for buying
or investing in a company.
Online CE.
At your pace, at your desk.
IFAwebnews.com/Career
October 2010
Claims: ‘Slip and
falls’ draw attention
From page 1
New York, Los Angeles, Philadelphia,
Las Vegas and Chicago were the five cities
with the most questionable claims for
slip and falls, and California, Florida,
New York, Illinois and Texas were the top
five states, according to the NICB.
“While many people have legitimate accidents in stores and businesses across the
country, we’ve seen a growing number of
cases that have some indication of potential fraud,” said Joe Wehrle, NICB president and CEO, in a statement. “Our agents,
working with insurance company investigators and law enforcement, are busy
identifying and targeting organized criminal rings that make a good living staging
slip and fall accidents.”
The NICB is working with insurers to
raise awareness and encouraging companies to investigate all claims.
Paying without investigating
“Many retailers are self-insured and
they look at this as a cost of doing business
- they’ll write a check without investigating,” Wehrle said. He estimated that the
unwarranted payouts from self-insured
companies run into the millions.
Wehrle said the NICB has increased
its focus on commercial fraud, and slip
and falls and workers’ compensation
fraud are cases that are priorities for
many of its member companies who
write commercial policies.
Often, Wehrle said, the perpetrators
“come into an area and hit several retailers, grocers, or other businesses with sophisticated schemes and professional execution. They hope to collect a quick
payout and move on before anyone realizes what’s going on.”
Typically, a case might involve two people visiting a big box store or retailer, and
splitting up. “The first person goes down
an aisle while the other keeps a lookout,”
he said. “When the coast is clear, he or
she pulls out a small bottle of liquid, pours
it on the floor and then pretends to fall.
The partner runs to assist and tells everyone that he witnessed the fall.”
The number of slip and fall questionable claims submitted to NICB went from
325 in the first quarter of 2008 to a high of
565 in the fourth quarter of 2009. In the
first half of 2010, there were 997 slip and
fall claims referred to NICB for further
analysis. IFA
Pennsylvania / New Jersey / Delaware
Property-casualty insurers’ operating profits down, but better
Reserve redundancies no longer masking
sagging earnings, Fitch researchers say
Operating profits declined for most
property-casualty insurers in the first half
of the year, but exceeded the poor performance in the first six months of 2009, according to a Fitch analysis of 50 publicly
traded companies.
For the first half of this year, the $16.2
billion of aggregate net earnings reported
by these companies represents a substantial improvement, caused by more favorable investment results, particularly among
some of the larger companies in Fitch’s universe.
Looking ahead, Fitch said profitability
will continue to be pressured by limited
premium growth and weaker accident year
loss ratios in “a stubbornly competitive”
insurance market with a weak economic
recovery and low investment yields.
Fitch also said it believes that reserve re-
scarce and GAAP underwriting leverage at
relatively low levels, the pace of share repurchases has, not surprisingly, accelerated.
Fitch estimates that companies in its universe repurchased $8.4 billion of common
Insurer profitability to be challenged by
‘stubbornly competitive’ insurance market.
dundancies that have enhanced earnings
for some time have approached exhaustion for many insurers. A reduced ability to
mask weaker current year results with favorable prior period development may be
a contributing factor toward a future shift
in pricing trends.
With profitable growth opportunities
equity in the first half, compared to $1.2 billion in the previous period. Fitch does not
expect share repurchases to create downward rating pressure for most companies,
assuming individual rated entities’ financial leverage and insurance subsidiary capital adequacy levels remain within its rating
rationale assumptions. IFA
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IFAwebnews.com
October 2010
|
9
// CRIMINAL CASE
PeopleNews
Pa. man accused of filing $1.39M claim for bogus storm damage
A Pottstown, Pa., man was accused of fabricating and submitting a false $1.39 million insurance claim for storm damage to
a series of modular townhomes that he
owned and allegedly hid in protective
wrapping for nearly a year.
Kevin Paul Kollar, 48,
filed an insurance claim
in 2008 for water and
wind damage that allegedly involved eight
modular townhomes in
the Pottstown, Pa., area,
according to the PennKevin Paul Kollar
sylvania authorities. The
vacant homes had been stored at an open
lot in Pottstown and Kollar allegedly
claimed they suffered extensive damage
during a storm in March 2008.
Kollar claimed in the insurance filing that
the homes were in “as new” condition, had
been wrapped in protective materials and
were personally inspected by him on a regular basis during the weeks leading up to
the purported storm damage. The homes
were valued at $1,399,000.
Prosecutors say Kollar’s claims about
the good condition of the homes prior to
the storm were directly contradicted by
observations and photographs taken by
an employee of the business that sold the
homes to Kollar. The damage was reported
to Kollar when it was discovered in April
2007, prosecutors said. IFA
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IFA/Career Center Partners
Insurance & Financial Advisor
Rosemarie DiCola, coowner of DiCola
Insurance and Financial
Services in Leechburg,
Pa., was named chair of
the Strategic Planning
Committee for the
Women’s Business Network of Southwestern
Pennsylvania.
Rosemarie
DiCola
Penn Mutual Life Insurance named James
C. Pierce as managing partner of a new
career agency in Wilton, Conn.; Phil D’Ambrisi as managing director of Products and
Field Support at Hornor, Townsend &
Kent, a broker-dealer subsidiary of Penn
Mutual; and Keith Karchmar as sales manager for The Heartland Group, a Penn
Mutual career agency in Chicago.
McConkey Insurance and Benefits’ John
Dormuth was one of Central Penn Business Journal’s 2010 Forty Under 40 award
recipients in October for his dedication to
business growth and professional
excellence; Ashley Vervaeke earned the
Certified Insurance Service Representative
designation; and Beth Cook was hired as
client relationship manager for the York, Pa.based company.
Bob Jones was appointed as vice president
of PMC Insurance Group with specific
responsibility for New Jersey, as well as
Connecticut and New York. Jones has 30
years experience in the insurance industry
and joins PMC Insurance from InStrategy
Group in North Carolina.
Susan Sarafinas was hired as office manager and administrative services associate
for Penn Ride Benefits, based in Downingtown, Pa.
Jeffrey B. Barr of Miers Insurance, based
in Allentown, Pa., earned the Chartered
Property Casualty Underwriter designation.
Vere Bryan of Telford, Pa., joined
Branchville, N.J.-based Selective Insurance
Group’s subsidiary, Selective Insurance
Company of America as assistant vice president, general liability, umbrella and
professional liability line of business manager. Bryan was assistant vice president of
casualty for Harleysville Insurance Co.
Send Your News!
The easiest way to submit news about
your promotions, new hires, awards and
other honors is online. It’s fast and free.
Phone: 877-IFA-5001 Fax: 410.667.7977
Email: Edit@IFAwebnews.com
Stephen Selverian joined Philadelphia, Pa.based ACE USA Accident & Health Sales
as business development director for the
Mid-Atlantic region.
// PROPERTY-CASUALTY
Edward Marcinkevich joined Franklin
Lakes, N.J.-based Western World Brokerage Division as second vice president and
head of property underwriting.
Foremost Insurance Group, a Grand
Rapids, Mich.-based insurance carrier that
offers specialty personal lines insurance
products for independent agencies, is rebranding its Bristol West Auto Insurance to
the Foremost brand.
The rebranding of Bristol West, expected to be completed by the end of the
year, supports Foremost’s market strategy,
company officials said in a statement.
Both Foremost, in 2000, and Bristol
West, in 2007, were acquired by Farmers
Insurance Group.
Among states serviced by Bristol West
are Pennsylvania and Virginia. IFA
Kari M. Jarmuz, a new business consultant
for eight years, was promoted to manager
of group broker sales for BlueCross
BlueShield of Delaware.
Erie Indemnity Co. announced three
appointments: Johns F. Kearns as executive vice president of sales and marketing;
George D. Dufala as executive vice president of services; Eric Roots as leader of
commercial operations.
10 | Pennsylvania / New Jersey / Delaware
Thomas H. Harris of Horsham, Pa.-based
Penn Mutual was appointed to The American College board of trustees. The company
also recognized Rodney M. Hebert with the
Gold Medal Award and Life Sales Leader;
Rodney D. Dir with Bronze Medal Award
2009; and Mark E. Vujevich, sales manager
of The Parks Agency’s branch office in Pittsburgh, with the Gold Medal Sales Manager
of the Year 2009.
Insurance & Financial Advisor
|
IFAwebnews.com
Bristol West Auto Insurance
to be rebranded as Foremost
October 2010
CIGNA to ‘go global’ with acquisition
Pa. insurer diversifies by adding
expatriates’ insurance company
By Bob Graham
CIGNA is extending its reach in expatriate benefits internationally with its acquisition of a Belgium-based
insurance company.
Philadelphia-based
CIGNA acquired Vanbreda International, an
Antwerp, Belgium-based
company whose 400 employees provide health William L. Atwell
insurance and employee
benefits for international organizations,
multinational corporations and their international workforces, as well as individual expatriates.
Financial terms of the deal were not disclosed.
“The acquisition demonstrates CIGNA’s
growth strategy to go deep into existing segments, to go global – seeking worldwide opportunities to diversify our earnings stream,
build on strengths and serve customer
needs – and to go individual, as Vanbreda In-
Pennsylvania / New Jersey / Delaware
ternational has a growing portfolio of inter- tween CIGNA and Vanbreda International.
Vanbreda, a privately owned, 50-yearnational individual business,” said William
L. Atwell, president of CIGNA International, old company, designs, implements and
manages cross-border health insurance
in a statement.
The deal can be seen as
further proof that Ameri// Two companies have world view
can health insurers are
CIGNA
Vanbreda International
looking at new options in
Based
in
Philadelphia
Based
in Antwerp, Belgium
the wake of the federal
U.S.,
global
health
insurer
Health
insurer for expatriates
health reform legislation’s
In
50
countries
In
129
countries
passage in March. With
Publicly traded
Privately held
new health exchanges and
rules to be applied over the
next three years, health insurers face an and employee benefits programs from offices and sales representations in the
uncertain future in the U.S.
Teaming Vanbreda International’s strong Netherlands, Germany, Italy, England and
presence in Europe complements CIGNA’s Switzerland, the United Arab Emirates,
position in providing expatriate benefits Kenya, China, Singapore and Malaysia,
primarily to corporate clients in North Chile and Florida. Vanbreda International
America, as well as Europe and Asia, Atwell serves plan members in 192 countries.
Vanbreda International will retain its
said. Collectively, the companies care for
more than 700,000 expatriate customers brand, officials said, and its leadership, including Chief Executive Officer Rudi Bertels
around the world.
“There is little overlap between our cur- and Chief Operating Officer Wouter Regrent businesses and capabilities, bringing gers, will remain in place.
CIGNA serves about 60 million expatrimutual opportunity to both,” Atwell said.
He also stressed the “strong cultural fit” be- ates in more than 27 countries. IFA
Insurance & Financial Advisor
|
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// NEW PRODUCT
Dominion Dental launches
new producer web portal
Dominion Dental Services (Dominion),
a regional provider and administrator of
dental and vision benefits, launched a
new producer portal, allowing agents to
create quotes and proposals, track their
quote activity and view dental and vision
product information in one location, according to a company statement.
“We’ve invested a considerable
amount of time, resources and effort to
develop an innovative online application
that provides our producers with unparalleled administrative convenience,” said
Dominion COO Mike Davis in the statement. “Our producer portal creates proposals on the fly with pre-approved rates
and plans, significantly minimizing the
time producers spend on obtaining dental and vision quotes.”
The Producer Portal, available at
www.dominiondental.com, offers 10
dental plans for groups under 50 lives
and custom quotes for groups over 50
lives (over 20 lives if employer-paid); no
need for census information; and customizable dental plan designs. IFA
October 2010
|
11
Insurer adds employment practices
liability coverage in New Jersey
New policies geared toward helping
small- and medium-sized businesses
Farmers Mutual Fire Insurance Company of Salem County added Employment
Practices Liability (EPL) insurance for
small- and medium-sized businesses in
Maryland and New Jersey, starting Sept. 1.
“Employment Practices Liability coverage has evolved from a high-priced
option for large employers to an affordable necessity for all businesses,”
said Farmers of Salem Product Manager Jim Reagan in a statement. “In today’s workplace, small business owners must defend themselves against
damaging employment claims.
Farmers’ coverage is offered as part of its
Business Owners Policies for eligible
clients up to 50 employees. The program
includes coverage of $50,000 on eligible
new and renewal policies. Other limit options of $25,000, $75,000, $100,000 and
$250,000 also are available. It also provides
an online loss prevention program, dedicated EPL claim specialists and access to
experienced employment liability attorneys, according to the statement.
Reagan said recent statistics suggest that
more than of claims, including wrongful
termination, discrimination and sexual harassment, are brought against small firms. IFA
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// LOOKING AHEAD
Health reform expected to increase preventive care usage
The floodgates on usage of preventive
health care service – a key component of
wellness – may open next year, when outof-pocket cost for these services are removed from many health plans as part of
federal health reform.
While financial uncertainties drove
many Americans to rein in their consumption of health care services during the recession, the Patient Protection and Affordable Care Act will remove patient
out-of-pocket costs for preventive care
services under many plans beginning in
2011 and drive an increase in the use of
these services, according to Towers Watson,
a global professional services company.
Many employer-provided health plans
have promoted low-cost or no-cost preventive care for years, but the new law broadens
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// PRESCRIPTION COSTS
Sebelius: Medicare Part D ‘donut hole’ is smaller with aid
Federal health reform has led to more
than 1 million Medicare beneficiaries receiving prescription drug cost relief, according to U.S. Health and Human Services Secretary Kathleen Sebelius.
As part of the Patient Protection and Affordable Care Act’s step-by-step efforts to
close the Medicare Part D prescription drug
coverage gap, eligible beneficiaries who fall
in this “doughnut hole” this year are mailed
a one-time, tax-free $250 rebate check.
More than a quarter of the 4 million
checks Medicare expects to distribute
have been received by eligible Medicare
beneficiaries.
“Many seniors and people with disabilities on Medicare face extraordinary prescription drug costs, and too often stop
following the drug regimens that their doctors have recommended as a result,” Sebelius said in a statement. “These checks
will make a difference in helping seniors
continue to get the medications they need,
and are one of many ways that the Affordable Care Act is helping seniors.”
Nationwide, 1 million Medicare beneficiaries have already been mailed their rebates and more beneficiaries will be receiving checks in the coming months as
they enter the coverage gap. Eligible beneficiaries receive these checks automatically in the mail when they reach the donut
hole, and they don’t have to sign-up to be
eligible for the rebates.
Rebate checks will help people with
their drug costs this year. Next year, those
who fall into the donut hole will receive a
50% discount on covered brand name
medications while in the donut hole. Every
year, the amount Medicare beneficiaries
pay in cost sharing will decrease markedly
until the coverage gap is closed. IFA
// FIGHTING THE LAW
Cuccinelli calls health reform ‘Nancy-approved’ health insurance
Virginia Attorney General Ken Cuccinelli called the federal health reform legislation passed in March “Nancy-approved” health insurance and said he
expects a court ruling on the controversial law by Thanksgiving.
Cuccinelli made the remark, referring to
U.S. House Speaker Nancy Pelosi, a key architect of the legislation, during comments
12 | Pennsylvania / New Jersey / Delaware
lishes a uniform standard for services
grounded in the recommendations of the
U.S. Preventive Services Task Force and
other similar bodies. Under the provision,
insurers and self-funded health plans must
cover regular wellness visits based on the
patient’s age and gender as well as a range of
recommended screenings. New additions
to coverage for most employees and their
families will include depression, supplemental pregnancy, and HIV and other sexually transmitted diseases screenings as well
as HPV tests for females. It also includes recommendations to take aspirin to prevent
heart disease and fluorides for children.
Plans that are not considered grandfathered under the law must provide these
benefits at 100%, beginning in plan years
starting on or after Sept. 23. For employer
plans, this is commonly Jan. 1. IFA
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at the Fredericksburg Regional Chamber
of Commerce, according to the Fredericksburg Free-Lance Star newspaper.
Cuccinelli, who filed one of a handful of
federal suits against the legislation, told
business leaders that even if the U.S. District
Court for the Eastern District of Virginia
rules by Thanksgiving, the case is ultimately
likely to reach the Supreme Court. IFA
October 2010
IFAwebnews.com/HealthReform
Alliance: Highmark, Del. Blues align to combat health reform
From page 1
tion will help the two companies achieve
that vital goal.”
Shelly Bloom, president of the Pennsylvania Association of Health Underwriters,
said the deal could be the first as insurers
affiliate since 2006, when it was forced to
terminate its six-year-old affiliation agreement with Owings Mills, Md.-based CareFirst, Maryland’s largest health insurer.
For Highmark, which provides health
plans in western and central Pennsylvania, the deal comes about 18 months after
Deal enables Delaware’s largest health insurer
to remain a separate, nonprofit entity.
retool in preparation for health exchanges.
“We do believe that there will be many
other announcements like this one as we
move forward with reform,” Bloom told
IFA. “When we lobbied in D.C. before the
passage of federal reform, Sen. [Arlen]
Specter’s staff and many others in the
House asked how PAHU could encourage
more competition, not less. It’s a curious
twist that many voted for reform and it is
having the opposite effect.”
The partnership is hardly unexpected.
Delaware’s Blues’ affiliate, the largest health
insurer in the state, has been looking for an
it killed plans to merge with Independence
Blue Cross, a Philadelphia, based health
insurer. That merger, which died when Joel
Ario, Pennsylvania’s insurance commissioner, told the companies they would
have to relinquish either the Blue Cross or
Blue Shield service mark, would have created one of the largest health insurance
companies in the nation.
"After careful deliberation, we have selected Highmark, also a Blue Cross and
Blue Shield plan, as our proposed affiliation partner," said Timothy J. Constantine,
president and CEO of the Delaware insurer,
in a statement. "We recognize that it will
become increasingly difficult for small, independent plans to access the capital required to make the necessary investments
to stay competitive."
The Delaware insurer will remain a separate entity, remaining in that state, under
terms of the arrangement. Constantine will
remain as president.
The affiliation also enables the Delaware
Blues “to retain our not-for-profit status,
enhance operations, maintain financial
stability and continue to provide the high
level of local service that our customers
and providers expect," Constantine said.
If Delaware’s Department of Insurance
approves the deal, then two companies
are expected to share costs on investments in systems and capabilities, including technology.
The regional affiliation will afford both
companies greater economies of scale and
the ability to streamline operations, while
maintaining their strong local presence
and focus on community support, company officials said. IFA
// FEDERAL FUNDS
Del. to use $1 million grant to
open up rate review process
The review process for setting health
insurance rates in Delaware could become open to the public because of a $1
million influx from the U.S. Department
of Health and Human Services.
Delaware was one of 46 states to receive the money, part of a five-year, $250
million program to improve health insurance regulation in states.
The Delaware Insurance Department’s
current review system is private, but with
the money, state officials intend to develop
new rate filing regulations, hold public
hearings and post updated information
on rate requests on its website, according
to a Wilmington News Journal article.
Delaware, in its request for funding,
indicated it would add staff to handle the
additional work.
Even after the changes take place, “proprietary” information in insurers’ filing
will remain confidential, as is customary
in other states where public reviews are
common, according to the report. IFA
Constantly adapting.
Consistently achieving.
These days, flexibility is essential. Finding success in an evolving
industry calls for the ability to respond quickly and confidently.
BenefitMall is up for the challenge and committed to
keeping you ahead of the pack.
sPartnership for a changing industry
sPeople who can help you stay ahead of the curve
sProducts to meet the demands of the marketplace
Partner with BenefitMall and let’s continue to achieve success together.
Contact your local BenefitMall Sales Team today
or log onto www.benefitmall.com.
Livingston 973-548-2830
Rockville 301-517-4900 I Towson 410-512-3840
©2010 BenefitMall®. All rights reserved. BenefitMall, the circle “b” logo and the corporate logo are registered trademarks of Centerstone Insurance and Financial Services, Inc. California license #063979.
Pennsylvania / New Jersey / Delaware
Insurance & Financial Advisor
|
IFAwebnews.com
October 2010
|
13
// UPCOMING EVENT
// UPCOMING EVENT
NAIFA-PA plans Eastern,
South Central sales events
GPAHU lines up health execs
to discuss health reform Oct. 7
The Pennsylvania chapter of the National Association of Insurance and Financial Advisors has scheduled two sales
events in October.
On Oct. 26, the NAIFA-PA Eastern Regional Sales Caravan, with a theme of
“The Road to Success” event, will feature
two Million Dollar Round Table speakers.
Other features of the day-long event
include an economic update from a local
investment advisor and a political advocacy workshop.
The event is being held at the Holiday
Inn Lehigh Valley at the intersection of
Interstate 78 and Route 100.
The following day the fourth annual
South Central Regional Sales Symposium
is planned for the Penn Grant Centre, 777
East Park Drive in Harrisburg, Pa.
The event will feature a day of education and networking, including two
MDRT speakers, a political advocacy program: “Grassroots V. Grass Tops;” and the
opportunity to obtain up to four insurance continuing education credits.
For more information or to register,
visit www.naifa-pa.org. IFA
A panel of health care executives will offer
their views of the health care landscape, in
the wake of federal health reform, at the
Greater Philadelphia Association of Health
Underwriters’ annual conference Oct. 7.
Also, David B. Nash, founding dean of
the Jefferson School of Population Health
at Thomas Jefferson University in
Philadelphia, will discuss how health care
reform will affect the health care industry.
The event runs from 8 a.m. to 3 p.m.
and includes a buffet lunch. It will be held
at the Drexelbrook Conference Center at
4700 Drexelbrook Drive in Drexel Hill, Pa.
Panelists who are scheduled to participate include Dan Hilferty, president of
health markets at Independence Blue
Cross; Patrick R. Young, president of
Pennsylvania and Delaware markets for
Aetna; Sue Schick, CEO of UnitedHealthcare of Pennsylvania; Vince Sobocinski,
president and general manager for
CIGNA in Pennsylvania; and Stewart
Lavelle, senior vice president for sales and
marketing for Coventry’s HealthAmerica.
For more information or to register,
visit www.gpahu.net. IFA
DoneDeals
mergers • acquisitions • partnerships
Aon, Hewitt Associates merge,
renamed Aon Hewitt
inventions, identify emerging industry trends
and conduct required portfolio reviews.
Aon Corp. merged with
Hewitt Associates to form
Aon Hewitt, a human resources and
benefits outsourcing provider, in a $4.9
billion deal.
MassMutual, home builders to
provide DB retirement plan
Life
Insurance
Hewitt will be integrated with Aon’s current
consulting and outsourcing operations, Aon
Consulting. The new brand will be led by
Hewitt Chairman and CEO Russ Fradin, who
will report to Aon CEO Greg Case, according
to the company.
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with Comprehensive Coverage at Competitive Prices
Dianne Sprague
Sr. VP & Principal
A.M. BEST “A RATED” CARRIERS
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These are just a few of the classes written:
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Participants choose a listed
charity on the website, and
every week State Farm will select a winner. For every homerun hit during Major
League Baseball games the previous
week, State Farm will donate $100 to the
winner’s charity. A total of 10 winners will
be drawn and the most popular charity will
receive an additional $25,000 at the end of
the season, according to State Farm.
PropertyCasualty
The Mutual Service Office
(MSO) partnered with Intuitive Web Solutions (IWS) and has adapted
BriteCore, a web-based program recently
introduced by IWS.
PropertyCasualty
BriteCore is an editable processing system
with settings that can adapt to an insurance
company’s business needs, according to
MSO, and is compatible with programs
offered by MSO.
Virtus to become advisor of
Phoenix Edge Series Fund
AIMS’ new program is
bootcamp for Internet training
The Phoenix Cos. and Virtus
Investment Partners
announced that Virtus will be the advisor
and distributor to the Phoenix Edge Series
Fund, a variable insurance trust.
The American Insurance
Marketing & Sales (AIMS)
Society introduced Agency Internet Bootcamp, an Internet training program.
Virtus plans to rename the trust Virtus Variable Insurance Trust and market its
investments strategies to other companies.
The trust is composed of 17 funds and $1.6
billion in assets; Virtus is subadvisor for $300
million of fund assets and will have responsibility for another $500 million, according to
the company.
Willis, Innography launch
program to prevent IP risks
Willis Group Holdings joined
forces with Innography to
launch PatentWize, an intelligence solution
designed to help companies manage intellectual property risks.
PropertyCasualty
PatentWize provides insights based on the
correlation of patent, trademark, legal and
financial information, according to Willis. It
advises how to improve strength and marketability of new technologies and
www.atlanticspecial.com
14 | Pennsylvania / New Jersey / Delaware
The plan involves more than $22 million in
assets under management and about 600
participants, according to MassMutual.
MSO deal means it can adapt
new IWS web system
State Farm, Major League
Baseball going to bat
Life
Insurance
Experienced Pennsylvania Wholesaler
Meritage Homes Corp. partnered with MassMutual’s
Retirement Services Division to provide a
defined contribution retirement plan.
Life
Insurance
PropertyCasualty
The program is a one-day intensive training
session taught by its creator, Steve Anderson, who addresses the effective use of
Internet-based tools to increase growth and
profits, according to the company. The
course also meets AIMS Society requirements for maintaining the CPIA professional
designation. Some topics covered are blog
creation, using social media, and monitoring
reputation and competition.
The Institutes, AGILE team to
develop business leaders
The Institutes partnered with
AGILE Insurance Performance to include the simulation component in
the Insurance Executive Development (IED)
program at The Wharton School. The class
is designed to help participants hone their
decision-making skills. The program
instructs managers by combining the implementation of business strategies with the
simulation of the insurance industry.
PropertyCasualty
For the latest deals go to IFAwebnews.com
Insurance & Financial Advisor
|
IFAwebnews.com
October 2010
In Memoriam
■
Madeline T. Missimer, 70, of Bushkill, Pa.;
former claims adjuster for Chubb Insurance Co.
for 20 years.
■
Patricia Dorcas Moore, of Red Bank, N.J.;
former employee of Equitable Life Insurance Co.
in New York.
■
John H. Morrell Sr., 93, agent with Phoenix
Mutual Insurance Co. for 35 years
■
James R. Mullard, 80, formerly of Erie, Pa.;
longtime life insurance agent.
■
Doris A. Murphy, 76, of Toms River, N.J.;
retired supervisor at New York Life Insurance Co.
for 16 years.
■
Gerald M. Pinkstone, 79, of Moorestown,
N.J.; retired insurance investigator for General
Accidents Insurance Co. of Cherry Hill.
■
Martha H. Pye, 83, of Paoli, Pa.; former
employee of Gillespie, Pye & Gray Insurance
Agency.
■
Joan M. Natali Russo, 79, of Washington, Pa.;
former agent for Tregemo’s State Farm Insurance
In Monongahela, Pa., for more than 20 years.
■
Sam Sandler, 84, of Highland Park, N.J.; 36year employee of John Hancock Insurance Co.
■
Clara B. Sexton, 92, of Orange, N.J.; retired
underwriter for Home Insurance Co.
■
Michael A. Silvani, 77, of West Orange, N.J.;
former employee with the New Jersey
Department of Banking and Insurance.
■
Paul A. Simpson Jr., 70, of Lower Bank, N.J.;
vice president of insurance claims for USAA.
■
Truman Madden Sminkey, 96, formerly of
New Cumberland, Pa.; WWII veteran and retired
insurance agent.
■
Arthur Milton Smith, 92, of Hopewell
Township, N.J.; retired agent with MetLife of
more than 30 years.
■
Debbie B. Smith, 82, of Malvern and West
Chester, Pa.; retired employee of the Insurance
Institute of America.
■
James S. Starr, 90, of Hughesville, Pa.; 28-year
agent with MetLife.
■
Edwin M. Stein, 89, of Exeter Township, Pa.;
retired claims adjuster for Aetna.
■
Betty Ann Christie Sweeney, 84, of
Pennington, N.J.; former employee of New
Jersey Manufacturers Insurance.
■
James F. “Jim” Saleme, 96, of Altoona, Pa.;
founded Saleme Insurance Services, retired in
1983.
■
Madeline Margaret Plesenski, 91, of
Bellevue, Wash., and formerly from Clearfield,
Pa.; retired from Farmers New World Life
Insurance Co. in 1984.
■
Kelly (Keyser) Cordts, 43, formerly of
Hollidaysburg, Pa.; worked for Prudential
Insurance Co., Blue Cross of Hawaii, Central
United Life Insurance Co. and Transamerica
Insurance Co.
■
Thomas N. Shedlock, of Nether Providence,
Pa.; worked for Blue Cross/Blue Shield in
Rochester, N.Y., and Union Labor Life Insurance
Co.
■
Dean D. Young Sr., 79, of Concord, Pa.;
insurance agent/owner of Dean D. Young
Insurance Agency for 55 years, top producer for
Nationwide’s commercial insurance division.
Pennsylvania / New Jersey / Delaware
New indexed annuity offerings salve for burned investors
Guaranteed lifetime income stream with
some risk appealing to baby boomers
By Bob Graham
Variations on the indexed annuity offerings are providing a growing number of
pre-retirees and retirees with new financial planning options.
“They are a great story right now,” said
Dana Pedersen, vice
president for business
development for The
Phoenix Cos. “People can
get a guaranteed lifetime
income stream while participating in the market’s
potential upside.”
Dana Pedersen
These new products
are benefiting from people’s fears in the
wake of the economy’s near collapse in fall
2008. Last year, indexed annuity sales set a
record, topping $30.1 billion and eclipsing
2008’s numbers by 13%, according to AnnuitySpecs.com.
After a slight dip in the first quarter, this
year’s second quarter continued the strong
performance, falling off 0.1% from the second quarter of 2009, which also set a
record. Sales for this year’s second quarter
were $8.3 billion.
“People who, unfortunately, may have lost
money during the market turmoil of the last
couple years, don’t want to risk losing their
principle,” Pedersen told IFAwebnews.com.
Pedersen said the products, especially
those with riders providing guaranteed life-
time income, appeal most to people who
have retired and want to generate a guaranteed level of income to ensure they can
maintain their lifestyle. In addition, many
riders also provide a guaranteed increase to
the income amount during the deferral period prior to the income start date and therefore also appeal to pre-retirees who may not
be on track to meet their retirement goals.
The customization, she said, will only
continue, with new index crediting strategies and riders that provide a death benefit in addition to the income protection.
“I think these products will remain quite
popular,” she said. “Even when market
downturns and volatility are a distant
memory, consumers will still want protection, and these products provide it.” IFA
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800-652-5700
Insurance & Financial Advisor
|
IFAwebnews.com
www.undspec.com
info@undspec.com
October 2010
|
15
// PAYOUT
Insurer may pay $250,000
to settle Phila. agency’s
sexual harassment case
A nonprofit insurance company may
pay $250,000 to settle a sexual-harassment claim filed against the executive
director of the Philadelphia Housing
Authority.
The Housing Authority Risk Retention
Group “accepted our settlement demands” Aug. 20, John M. Elliott, the
lawyer for Elizabeth Helms, the accuser,
told the Philadelphia Inquirer.
The claim arose when Helms, 29, an
interior designer and planner for the
housing authority, accused the executive
director, Carl R. Greene, 53,of unwanted
sexual advances in April, according to
the report. She filed complaints with the
Pennsylvania Human Relations Commission and the federal Equal Employment Opportunity Commission.
She wrote in a four-page letter to Gov.
Ed Rendell and others, dated April 21, of
alleged “serial predatory sexual misconduct” by Greene and said he groped her
at the Prime Rib restaurant after “insisting” he meet with her at that location,
according to the report. IFA
For the Record
to an Order to Show Cause charging her
with violations relating to a conviction
of five counts of theft by failure to make
required disposition of funds received
and one count of acting as a brokerdealer without being registered.
New Jersey Agent
& Carrier Actions
The following summaries are
based on information obtained
from the New Jersey
Department of Banking and
Insurance.
■
■
Senior Financial Planners
Ins.
Marmora, N.J.
Action: Licenses revoked, ordered to
pay $2,000 fine and $575 in court costs
Synopsis: Kirchhoff and the company
failed to respond to an Order to Show
Cause charging them with violations
relating to a federal conviction for conspiracy to commit securities fraud, conspiracy to commit wire fraud,
conspiracy to commit money laundering, conspiracy to interfere with commerce by threats of violence and
bankruptcy fraud.
Order # E10-40
■
Debbie L. Madosky
Cambridge Springs, Pa.
Action: License revoked, ordered to
pay $1,000 fine and $1,275 in costs
Synopsis: Madosky failed to respond
Carney Gavin Gatta Jr.
Wayside, N.J.
Action: Temporary license suspension
Synopsis: License was suspended temporarily in July pending department investigation of allegations of misconduct.
Rhett Kirchhoff
Christopher Davis Powell
Pittsburgh, Pa.
Action: Five-year license suspension
and $5,000 fine
Synopsis: The agent, a designated licensee of Supplemental Benefit Specialists, received applications from an
unlicensed person. The applications
had been completed and signed by
the applications, but none contained
the signature of a licensed producer.
Powell was not present when applications signed them, yet he signed and
submitted them to the insurance company.
Order #E10-43
Marmosa, N.J.
■
■
Consent Order #E10-45
Synopsis: The agent self-reported ot
American General Life and Accident
Insurance Co. in December 2009 that
he in “recent years” he had collected
premiums from some policyholders
that he used to pay premiums on others’ insurance because of the latter’s
own shortfalls and that he suffered
“personal loss by correcting the shortfall with personal funds.”
Docket No. CO10-04-022
■
Docket No. CO10-05-006
Pennsylvania Agent &
Carrier Actions
■
The following summaries are
based on information obtained
from the Pennsylvania
Insurance Department.
■
Edward Stetz
Johnstown, Pa.
Action: License revoked
Synopsis: The agent failed to notify
the Pennsylvania Insurance Department
that he had been barred from the securities industry since August 2009 by the
Pennsylvania Securities Commission.
Docket No. CO10-05-022
Marc Anthony Misiti
Hanover, Pa.
Action: License revoked
Synopsis: The agent failed to report
two misdemeanor arrests in 2008 and
2009, as required by law. Charges included forgery, theft by deception and
identity theft in the latter case, filed in
Adams County. Charges in the first case
involved theft by deception and failure
to make a required disposition of funds.
Docket No. CO10-04-023
■
Frank S. Mesick
Pittsburgh, Pa.
Action: Five years of license
supervision
Aqueelah N. Jackson
Philadelphia, Pa.
Action: Granted a 1033 waiver to obtain
a public adjuster solicitor license and
placed on indefinite license supervision
Synopsis: Jackson was granted the
waiver in connection with a felony conviction for third-degree shoplifting in
New Jersey Superior Court in February
2003.
Docket No. CW10-04-025
■
Robert Holmes
Pittsburgh, Pa.
Action: Five years of license supervision and ordered to pay restitution of
$525.75 to American General Life and
Accident Insurance Co.
Synopsis: Agent withheld premiums
received from a policyholder.
Docket No. SC10-04-002
Ranked #1 in innovation by Fortune magazine
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Innovation. It’s what sets us apart, and moves you ahead.
At UnitedHealthcare, we’re dedicated to helping you provide more clients with affordable, quality health coverage – because it’s the right
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© 2010 United HealthCare Services, Inc. Insurance coverage provided by or through UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by UnitedHealthcare
Insurance Company, United HealthCare Services, Inc. or their affiliates. Health plan coverage provided by or through a UnitedHealthcare company. UHCEX477523-000
16 | Pennsylvania / New Jersey / Delaware
Insurance & Financial Advisor
|
IFAwebnews.com
October 2010
Dog bites chewing deeper hole in
homeowners’ insurance policies
AIG pays back $4 billion; CEO says
he sees ‘light at the end of the tunnel’
Claims accounted for one-third of all
homeowners’ liablity claims filed in 2009
Global insurer at heart of 2008 financial crisis continues to return $182 billion in aid
Dog bites took a bigger meal from homeowners in 2009, with insurance liability
claims related to the canine set costing
$412 million.
The Insurance Information Institute
said dog bits accounted for more than onethird of all homeowners insurance liability
claims paid out in 2009. The payouts rose
6.4% from 2008.
An analysis of homeowners’ insurance
data by the III found that the average cost
of dog bite claims was $24,840 in 2009, up
slightly from $24,461 in 2008.
Since 2003, the cost of these claims has
risen nearly 30%. Additionally, the number of
claims increased by 4.8%, to 16,586, in 2009.
“The rise in dog bite claims over the last
seven years (2003-2009) can be attributed
to increased medical costs as well as the
size of settlements, judgments and jury
awards given to plaintiffs, which have risen
well above the rate of inflation in recent
years,” said Loretta Worters, vice president
at the III.
More than 4.7 million people in the
United States are bitten by dogs annually,
and nearly 900,000 of those, half of them
children, require medical care, according
to the Centers for Disease Control and Prevention (CDC). Of those injured, 386,000
require treatment in an emergency department and about 16 die. The rate of dog
bite related injuries is highest for children
aged five to nine years old; the rate decreases thereafter.
Almost two-thirds of these injuries
among children ages four years and
younger are to the head or neck region.
Injury rates in children are significantly
higher for boys than for girls. With more
than 50 percent of bites occurring on the
dog owner’s property, the issue is a major
source of concern for insurers. IFA
// COURT CASE
Pa. woman sentenced for stealing $100,000 from two Pa. estates
A Spring City, Pa., paralegal who stole
more than $100,000 from two estates handled by the law firm with which she was
employed was sentences to 21 months to
seven years in prison.
Kathleen Foer-Morse, 50, pleaded guilty
to charges of forgery and theft by deception in connection with her theft of
$100,937 from the High Swartz law firm
between November 2008 and May 2009,
according to a report in the Springford Reporter Valley Item.
Foer-Morse allegedly used some of the
money she took to help repay some of the
$285,000 she stole from a Manhattan, N.Y.,
law firm, prosecutors said.
In the latest case, Foer-Morse, who
worked for the Pennsylvania law firm from
July 2008 until May 1, 2009, wrote nine
checks, totaling $50,087, from one of the
estates and $50,850 from the second account by forging the executors’ signatures
and depositing the checks in her account,
according to the report.
Her lawyer, Elliott Goldberg, called her
a “serial thief.”
Montgomery County Judge Steven T.
O’Neill also sentenced Foer-Morse to five
years of probation and ordered her not to
work in any fiduciary capacity, telling her
that she is “required to inform employers
that she cannot help herself in terms of
stealing money,” according to the report.
She also must repay her law firm and
any insurance company that covered the
losses, the newspaper said. IFA
American International Group has decreased the money it owes the Federal Reserve Bank of New York by $4 billion.
The global insurer,
which received nearly
$182 billion in federal
bailout funds, applied
nearly $4 billion received
from International Lease
Finance
Corporation
(ILFC) to the Federal Re- Robert
serve Bank of New York Benmosche
(FRBNY) Revolving Credit Facility, reducing its outstanding principal balance to
slightly more than $15 billion, not including accumulated interest and fees, according to a statement from the insurer.
The payment of $3.95 billion represents
the single largest cash payment AIG has
made to the credit facility and is the largest
reduction in the credit facility’s principal
balance since AIG placed AIA Group Limited (AIA) and American Life Insurance
Company (ALICO) into Special Purpose
Vehicles last December and exchanged
preferred equity interests in AIA and AL-
ICO for a $25 billion reduction in the balance outstanding on the credit facility, the
insurer said.
The payment also reduces the size of
the FRBNY credit line available to AIG from
about $34 billion to about $30 billion.
“This is continuing tangible evidence
of AIG’s progress in repaying the American taxpayers,” said AIG President and
CEO Robert H. Benmosche in a statement. “AIG is getting stronger every day.
We still have more work to do, but we will
finish the job and make sure we repay
the American taxpayers.”
Benmosche said the company’s insurance businesses, primarily property-casualty coverage, “are profitable; client retention rates have stabilized; and
surrender rates have improved to normal
levels. We are starting to see light at the
end of the tunnel.” IFA
Online CE.
At your pace, at your desk.
IFAwebnews.com/Career
EIC
ELIZABETHTOWN INSURANCE COMPANY
56 N Market Street, Elizabethtown, PA 17022
www.e-townins.com
SERVICE and STABILITY since 1844
Does your agency need a carrier
that provides outstanding service
to both you and your clients?
// PROPERTY-CASUALTY
We offer products to protect your personal and
commercial lines clients. Our service is outstanding,
our pricing is competitive and we do not use credit
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FRPPLVVLRQVFKHGXOHLVUHZDUGLQJDQGZHRIIHUDSUR¿W
sharing program that includes production incentives.
Polamalu’s hair gets $1 million, star insurance policy treatment
Lloyd’s of London, known for insuring a
wide range of unusual interests, has
agreed to provide a $1 million policy for
the long hair of Troy Polamalu, a safety
for the Pittsburgh Steelers.
Polamalu’s dark, curly locks, which flow
below his helmet and have not been cut
since 2000, are tied to his endorsement of
Head & Shoulders shampoo, whose corporate parent, Procter & Gamble, filed the
Pennsylvania / New Jersey / Delaware
paperwork with Lloyd’s to obtain insurance protection, according to media reports. Polamalu, a safety, wears his hair
long as a tribute to his Samoan ancestors,
the reports said.
He joins other stars whose personal and
business assets require coverage. They include, according to the Washington Post,
soccer star David Beckham’s legs, Dolly Parton’s breasts and Tom Jones’ chest hair. IFA
Insurance & Financial Advisor
If you would like to learn why a partnership with EIC
is a great choice for your agency, please contact Lynn
Reynolds at lreynolds@e-townins.com or call her at
800-736-8112, extension 404.
|
IFAwebnews.com
October 2010
|
17
Scranton insurance agents, agencies linked to ‘pyramid scheme’
Latest charges against Brian James Murray
follow premium theft charges in July
Two Scranton, Pa., insurance agents, their
spouses and three insurance agencies allegedly were part of what
prosecutors call a “pyramid scheme” in Lackawanna County, Pa., netting more than $7.5
million.
In July, one of the alleged participants, Brian Brian James
James Murray, 67, owner of Murray
the bankrupt Murray Insurance Agency in
Scranton, Pa., was arrested for his alleged involvement in the theft of more than $1.3
million in premium payments that were collected by his company.
In the latest action, the Pennsylvania Attorney General’s Insurance Fraud Section filed
criminal charges against Murray, who served
as chairman, CEO and principal of the Murray Insurance Agency, and the company’s
president, Christine M. Oliver-Shean, 51, also
of Scranton. Both are charged with a series of
crimes, including criminal conspiracy, money
laundering, theft, insurance fraud, forgery,
participating in a corrupt organization, tampering with evidence, obstructing law en-
forcement and various tax crimes.
Murray’s wife, Diane D. Murray, 66, is
charged with theft and conspiracy involving
ment regarding efforts to allegedly hide
company records from investigators.
After an “extensive” grand jury inves-
Colleges, local government agencies among
alleged victims, according to prosecutors.
money allegedly diverted from another business to the Murray Insurance Agency, along
with filing false corporate tax returns and filing false personal income tax returns. OliverShean’s husband, Timothy G. Shean, 53, is
accused of conspiracy, tampering with physical evidence and obstructing law enforce-
tigation, Attorney General Tom Corbett
said, Murray and Oliver-Shean allegedly
used an offshore business, registered in
the British Virgin Islands, to conceal more
than $10 million in income and avoid
paying Pennsylvania taxes.
Three businesses also charged
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18 | Pennsylvania / New Jersey / Delaware
Insurance & Financial Advisor
|
IFAwebnews.com
Among the victims of the alleged
scheme, according to prosecutors, are
the University of Scranton, Marywood
University, Loyola College of Maryland,
St. Joseph’s University and other educational institutions; Mount Airy Casino
Resort; local government agencies like
Phoenixville Borough; Moses-Taylor Hospital; the Lackawanna County Multi-Purpose Stadium; and other unsuspecting
businesses and non-profit groups.
Three businesses linked to the alleged
scheme also were charged. They include:
The Murray Insurance Agency, 415 Spruce
St., Scranton; The Mallow Holding Company, 415 Spruce St., Scranton; and Gaffer
Insurance Company Limited, incorporated in Tortola, British Virgin Islands.
For more on this unfolding article, visit
IFAwebnews.com. IFA
// UPCOMING EVENT
Financial Services Super Day
set for Lafayette Hills Oct. 19
Financial Services Super Day will be held
Oct. 19, from 8 a.m. to 4 p.m. at the ACE
Conference Center in Lafayette Hill, Pa.
Sponsored jointly by the Greater
Philadelphia chapter of the National Association of Insurance and Financial Advisors
and the Financial Planning Association of
the Greater Philadelphia Tri-State Area, the
event features continuing education credit
courses and networking opportunities.
For more information or to register,
contact Susan Whitehead, NAIFA-GP’s
executive director at either 610-765-1417
or office@naifa-gp.org. IFA
News straight to your inbox.
Subscribe at
October 2010
NewProducts
Calendar of Events
has gone digital.
For more go to IFAwebnews.com/Products
New features added to two
whole life policies
Workers’ comp. carrier adds
regional, specialty networks
Security Mutual Life Insurance Co. of New York has
added features to its two whole life products.
Broadspire, a Crawford Co.
and third-party administrator
of workers’ compensation claims, liability
claims and medical management services,
launched the BOLD network, a custom a
custom PPO strategy that includes targeted
selection of medical networks on a state-bystate basis to produce superior outcomes
for clients, according to the company.
Life
Insurance
The Binghamton, N.Y.-based company said
the new features are particularly useful to
life insurance planners who embrace the
Infinite Banking, Be Your Own Banker and
Bank on Yourself concepts. Planners can
now combine a new Flexible Paid Up Additions Rider (PUAR) with a new Level Term
Rider to create higher early cash values,
which in turn can be accessed through
favorable policy loan provisions. Security
Mutual's illustration software allows the life
insurance planner to illustrate loans and the
repayment schedules.
N.J. insurer gives customers
access on iPhones, iPads
Palisades, a Berkeley
Heights, N.J.-based insurer,
has launched an iPhone application for its
customers in New Jersey.
PropertyCasualty
The free app is available to download on iTunes
and Palisades.com for use with an iPhone or
iPod Touch.
The app offers a variety of resources, including the ability to store insurance information,
click-to-call on-the-go emergency contact lists,
easy accident reporting and instant access to
important car maintenance records including
date of last service, next oil change, and
mileage and maintenance reminders, according to the company.
Palisades sells exclusively through over 300
independent agents and is a leader in the
fast settlement of claims.
Managed contractor repair
network available to all
Crawford Contractor Connection, a large, independently
managed contractor repair
network, part of claims management company Crawford & Co., is now available to
property owners seeking contractors for
remodeling and renovation projects.
PropertyCasualty
The Consumer Services Network offers the
following services to property owners: general contracting; board ups; water mitigation;
roofing, siding and gutter work; remodeling;
flooring; tree removal; special needs modification; and general home maintenance.
Services are available whether repairs are
related to an insurance claim or just part of a
remodeling or maintenance project.
Pennsylvania / New Jersey / Delaware
To provide the latest, most accurate
Calendar of Events information, the
calendar is now online at
IFAwebnews.com/calendar. A print
calendar will no longer appear each month.
PropertyCasualty
Associations and other groups are encouraged to post
events, seminars and other activities on the calendar
at no charge. It’s quick, easy and always up-to-date.
The BOLD network features regional networks and specialty networks.
Benefits group inks deal
to expand LTC program
The American Senior Benefits Association has a new
long-term care program aimed at helping
members and their families learn about the
costs associated with unexpected long-term
medical care, according to the group.
Life
Insurance
The new program is being offered through
ASBA's relationship with AIMS Benefit Solutions, a benefits administrator with a 22-year
presence in the long-term care arena.
The program provides for caregivers who
can help with basic life activities such as
bathing, dressing, eating, and transferring
(as with moving from the bed to a chair,
from a chair to a walker, etc.), or for skilled
professionals to come to an individual's
home, perform a specific task, perhaps rehabilitation, and then leave. The program is at
www.asbaltc.com.
Amusement industry riding
high with new options
Allegiant Programs Group said
Amusement Insurance
Resources, a national specialty insurance program serving the amusement rental industry,
has partnered with the Event Planners Association (EPA) to offer marketing, legal, safety
and affinity program services to Amusement
Insurance Resources’ policyholders.
PropertyCasualty
As part of the deal, all AIR policyholders will
become members of EPA, a service
provider to the event and entertainment
communities.
This partnership with EPA provides policyholders with industry resources and added
value with their insurance coverage, according to the company.
Online CE.
At your pace, at your desk.
IFAwebnews.com/Career
Insurance & Financial Advisor
|
IFAwebnews.com
October 2010
|
19
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