Archive for April, 2011

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Insurance Brief: Prudential to Sell Global Commodities

April 11th, 2011 by Iris | Comments Off | Filed in insurance news, insurance specialists

Today’s news is from the business side of the insurance industry, rather than the patient side. It’s relevant because it speaks to the health of the industry.

Last week, Prudential Financial, Inc. announced that it had reached an agreement with Jefferies Group, Inc, for the sale of its (Prudential’s) global commodities business. The purchase price is $430 million, and is roughly equal to the book value of the company, as of the end of 2010.

The transaction, which must go through regulatory approval before it’s expected closing this summer, will include FCM, Prudential Bache Commodities, LLC, Prudential Bache Securities, LLC, and the UK and Hong Kong-based Bache Commodities Limited, and Bache Commodities, Ltd.

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Friday Film Strips: Government Shutdown Over Planned Parenthood

April 8th, 2011 by Iris | Comments Off | Filed in friday filmstrips, health care reform, health insurance

As you probably know, there’s a threat of a government shutdown if a budget isn’t agreed to by midnight tonight. One of the issues is funding for Planned Parenthood, but it’s NOT about abortion because there are already laws preventing Planned Parenthood from using government funds for such procedures. De-funding Planned Parenthood would remove access to birth control, cancer screenings, and other health care for low-income women around the country.

But don’t take my word for it. Watch this week’s video:

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Auto Insurance Increases in Canada

April 7th, 2011 by Iris | Comments Off | Filed in auto insurance

The United States isn’t the only part of North America seeing an increase in insurance rates. Kanetix announced earlier today that auto insurance premiums are higher in Alberta, Ontario, and Quebec, Canada.

Specifically, rates in Alberta increased by 0.4 percent, which may seem stable but was actually a reaction to the percentage of customers with less than five years of driving experience having risen by 7.1 percent.

Car insurance rates in Ontario increased by 6.7 percent, this on top of an increase of 9.5 percent in the last quarter of 2010, but analysts think this may mean that prices are actually stabilizing from an artificial low.

In Quebec, the increase in auto insurance premiums was only 1.8 percent and is attributed to an increase in multiple driver and multiple vehicle policies.

To find the best deals on auto insurance in these trying economic times, we recommend comparison shopping, bundling auto and homeowners coverage with the same company, and asking for every available discount.

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In Brief: Geico Hiring in Virginia Beach

April 6th, 2011 by Iris | Comments Off | Filed in auto insurance, insurance news

GEICO announced recently that it is planning to hire 100 associates for its regional office in Virginia Beach, VA by May, 2011, and add another fifty on top of that by the end of the year.

GEICO is the second largest insurer of automobiles in Virginia, and is offering a wide array of job opportunities, including customer service and claims representatives and sales agents.

Many different schedules are available.

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New Flood Reform Bill Due To Appear

April 5th, 2011 by Iris | Comments Off | Filed in flood insurance

Great news from the world of flood insurance: the House Financial Services Subcommittee on Insurance, Housing, and Community Opportunity is scheduled to mark up its last version of the bill to reauthorize and reform the federal flood insurance program tomorrow.

The committee, which is chaired by Representative Judy Biggert (R-IL), launched its NFIP (National Flood Insurance Program) hearings last month. Last Friday, Biggert shared a revised version of the bill, with changes spawned by testimony FEMA administrator (and NFIP overseer) Craig Fugate.

As it currently stands, the Flood Insurance Reform Act of 2011, also known as HR 1309, re-authorizes the program for five years and includes improvements to the way finances are handled and rates are set, as well as increasing the participation of private sector insurers.

Other changes, made last month, include clarifications to the risk mapping standards, and to FEMA’s authority to recommend the rebuilding or demolition of certain properties in order to lessen the financial assistance needed. The bill also requires FEMA to seek proposals from private insurers, and report the results.

Currently, the NFIP is more than $17.75 billion in debt, and much of that is attributed to the hurricanes that devastated the Gulf Coast in 2004 and 2005.

In a statement, Biggert said, “NFIP is deeply in debt, and its current structure simply cannot provide the reliable protection that homes and businesses need without putting taxpayers at extraordinary risk. By putting the program on sound financial footing and encouraging private sector participation within the market, our bill addresses the concerns of homeowners, businesses, industry experts, and taxpayers.”

The flood insurance program‘s last overhaul was in 2004. Since then, it has taken a lot of criticism for under-pricing risk, and promoting development in areas that are known to be flood-prone.

The current authorization for the program expires in September. It is hoped that a new law will be passed by then.

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Retiree Reinsurance Program Sent into Retirement

April 4th, 2011 by Iris | Comments Off | Filed in health care reform, health insurance

In all the talk of budget changes and healthcare reform, there are a number of health insurance-related programs not getting much media attention. ModernHealthcare.com recently reported on one of them: the Early Retiree Reinsurance Program, a section of the Patient Protection and Affordable Care Act that gives money to employers to assist in offsetting the medical costs of retired employees between the ages of 55 and 64 (as well as their spouses and dependents) will be retired itself as of May 5th, 2011.

This program, which is a $5 billion entry in the budget has, so far, paid out almost $1.8 billion of reimbursements to more than 1,300 businesses across the country.

The program is scheduled to terminate completely by January 2014, with no new applications from employers after May 5th of this year. Last October, payments began to be sent to plan sponsors for claims that were incurred after June 1 of last year.

The largest amount of money, so far, has been given to AT&T ($140 million), and the United Auto Workers Retiree Medical Benefits Trust ($206.8), with other recipients including Boeing, UPS, and BP North America. 97% of those funds were used to help reduce the amount of money early retirees had to pay for healthcare. Employers which are part of the program are allowed to choose to use these funds to offset retiree’s health care costs, company health care costs, or a combination of the two.

While payouts were made to companies in all fifty states, the highest percentage of the monies went to employers in the state of Michigan, which received $320 million.

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Friday Filmstrips: What is a Home Warranty?

April 1st, 2011 by Iris | Comments Off | Filed in friday filmstrips, homeowners insurance

Homeowner’s insurance is vitally important in case of fire or burglary, but what if the dishwasher breaks or the water heater fails? That’s where a home warranty comes in, and that’s the subject of this week’s video, courtesy of PMZ Real Insights and YouTube. Enjoy!

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