Archive for the ‘insurance news’ Category

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Lead-based Paint Manufacturers in Rhode Island Sue to Recover Costs

July 21st, 2010 by Iris | Comments Off | Filed in homeowners insurance, insurance news

After Rhode Island Superior Court Judge Michael Silverstein ruled, last May, that the state was not required to repay them, companies that sold lead-based paint have appealed the decision.

The paint manufacturers argued that they were due reimbursement because in 2008 the state Supreme Court had ruled in their favor, reversing a landmark verdict that may have cost them billions of dollars.

On Friday, a notice of appeal by the three companies that had won the original case, Millennium Holdings LLC, NL Industries Inc., and Sherwin-Williams Co. Three other companies that had been sued for the same infraction – selling lead based paint – but never went to trial, joined in the appeal.

Charles Moellenberg, the lawyer for Sherwin-Williams, said that Rhode Island rules allow winning sides of a lawsuit to recover costs, and that there should be no difference with this case.

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Insurance Briefs: New Weather Insurance Company in MN

July 20th, 2010 by Iris | Comments Off | Filed in business insurance, earthquake insurance, flood insurance, insurance news

Earlier this month when we talked about the bizzare things people insure, we neglected to mention weather insurance, but there really are companies who offer such a product. It works much like wedding insurance, making sure that you get reimbursed for deposits and such if weather forces you to cancel any kind of event.

A company offering weather insurance products recently opened in Lakeville, MN.

The insurer in question, Milltown Insurance Group, specializes in “…niche property and casualty program business and provides solutions for smoothing revenues, locking in profits and increasing sales through the use of weather insurance products for virtually any type of business, event or promotion.”

The company was opened by Dana D’Arrigo

Milltown says their weather products are extremely customizable as well as being affordable additions to existing insurance and/or marketing programs.

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Feds Announce Largest Healthcare Fraud Takedown Ever

July 19th, 2010 by Iris | Comments Off | Filed in health insurance, insurance fraud, insurance news, medicare

Anyone who is, or has a parent who is, covered by medicare knows that healthcare fraud is a tangible risk. Some good news, then, on this Monday, is that Attorney General Eric Holder and HHS Secretary Kathleen Sebelius announced last Friday at a healthcare fraud summit in Miami, that the feds are in the process of the largest fraud takedown ever, with 94 defendants charged in five different cities (Baton Rouge, LA, Detroit, MI, Houston, TX, Miami FL, and New York, NY)

Also in conjunction with the Miami summit, which gathered together insurance providers, consumer advocates, and patients as well as federal, state, and local authorities, came the announcement from HHS that the state of Florida has been granted a Medicaid waiver which will help fund a program allowing the state’s Medicaid Fraid Control Unit to scan insurance claims for patterns that are red flags for insurance scams. Currently, Federal law prohibits federal matching funds from being used in such fraud control efforts.

As of Friday morning, 36 alleged participants had been arrested in connections with schemes involving over $250 million in fraudulent claims, according to the Justice Department. The suspects include insurance company owners, medical assistants, and doctors, and the allegations against them fit the profile of the kind of healthcare fraud typical of South Florida over the last several years – fraud that is now spreading across the country, with scammers filing false claims for HIV infusion services, home healthcare, durable medical equipment, and physical therapy, and beneficiaries getting monetary kickbacks for their Medicare numbers.

There are plans for additional, similar healthcare fraud summits to be held in Boston, Detroit, Las Vegas, Los Angeles, New York, and Philadelphia.

Source: Modern Healthcare

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Home Burglaries Up 9% in Texas, Allstate Says

July 15th, 2010 by Iris | Comments Off | Filed in homeowners insurance, insurance news

Homeowners in Texas may want to consider boosting their homeowners insurance polices, and re-evaluating their inventory lists after reading this:

Allstate Insurance has shared that burglary claims for their customers in Texas increased 9 percent last year. The insurer is advising people to keep their homes locked, their alarms engaged, and their vacation plans secret, if they go away this summer.

What are the most common stolen items? Allstate surveyed police departments across the Lone Star state, and found that the number one target in home burglaries are flat-screen televisions, which are followed by laptop computers, jewelry, and cash. In some cities, the survey found, an increasing number of home burglaries are being tied to organized groups, like street gangs, which, police say, have “shopping lists” of things to steal, and will actually back into their target’s driveway, knock on the door, and kick it in if no one answers. They then take valuable, portable items and leave within a few minutes. Afterward, most of the stolen goods end up being filtered to other cities and states, or even across the border into Mexico, by an organized fencing operation.

David Christopher, an Allstate agent in the Dallas/Fort Worth area explained, “”Not only do these home burglaries disrupt homeowners’ lives because their valuables are stolen, but they create a potentially dangerous situation if the theft is interrupted. That’s why it’s so important for homeowners to take precautions because these thefts can happen anywhere.”

Source: Insurance Journal

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IPO for AIG’s AIA?

July 13th, 2010 by Iris | Comments Off | Filed in insurance news, life insurance

There may be an IPO for AIG’s AIA.

If that seems like so much alphabet soup, let us explain: the board of directors of American International Group (AIG) is planning to meet later this week, in order to consider the future of one of it’s business units, and an IPO is the most likely outcome, according to a report in the Insurance Journal.

AIA, the Asian life insurance division of AIG is likely to have an IPO – that’s “initial public offering” – because it’s the most attainable option, as opposed to pursuing another acquisition offer and the attendant risks associated with potential funding issues for the buyer.

Company sources, who say that while they’re directly involved in the future of AIA, but are not authorized to make public statements, said that AIG’s board would gather in New York on Wednesday, but that as of yet, no final course has been determined for AIA.

On Tuesday, there was much attention given to the notion of AIA receiving an outside offer. The South China Morning Post reported that four Chinese groups had approached AIG and the U.S. Treasury Department not long after Britain’s Prudential had withdrawn its $35.5 billion bid for AIA last month, after it tried (and failed) for a price renegotiation.

While it’s possible that a second offer may come, the spectacular failure of Prudential to acquire AIA has taken its toll on both company, and sparked disagreements within the upper tiers of AIG’s management.

AIG chose not to comment on the Chinese offers or the likelihood of an IPO.

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U.S. Sanctions Trigger Lloyd’s of London’s Refusal to Insure Iranian Petroleum Imports

July 9th, 2010 by Iris | Comments Off | Filed in insurance facts, insurance news

While the oil spill on U.S. shores remains to be stopped, last week President Obama signed into law new sanctions designed to limit fuel imports into Iran, and increase the Islamic Republic’s international isolation.

On the heels of that announcement came another: the British insurance company Lloyd’s of London, known for insuring high risk properties, has stated it will no longer insure or reinsure petroleum being shipped into Iran.

In a statement earlier today, the insurer’s general counsel Sean McGovern told reporters from Reuters, “The U.S. is an important market for Lloyd’s and, in recognition of this, the market will not insure or reinsure refined petroleum going into Iran. Lloyd’s will always comply with applicable sanctions.

The United States and its European allies suspect Iran is trying to build an atomic bomb. Tehran has said its nuclear program is for the peaceful generation of electricity.

Already, Iran has been finding it difficult to engage in financial trading. Many oil companies, trading houses, and the like have ceased doing business with the country, out of fear of violating U.S. sanctions.

According to Reuters, Iran is buying about half of its July gasoline imports from Turkey, with the rest coming from Chinese sources, since most other suppliers will not sell to them.

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Health Care Overhaul May Mean Longer Lines at ER

July 2nd, 2010 by Iris | Comments Off | Filed in health insurance, insurance news

The Associated Press office in Chicago is reporting that healthcare overhaul may mean even longer waiting times in emergency rooms around the country. ERs are often the only choice for patients who don’t have access to walk-in clinics or primary care physicians, but under the new health law, more may be turning to emergent care providers. This may seem counter-intuitive – shouldn’t more people with insurance mean shorter wait times? Here’s why 32 million more people with health insurance will mean longer lines instead, as explained by AP medical Writer Carla K. Johnson:

-There’s already a shortage of front-line family physicians in some places and experts think that will get worse.

-People without insurance aren’t the ones filling up the nation’s emergency rooms. Far from it. The uninsured are no more likely to use ERs than people with private insurance, perhaps because they’re wary of huge bills.

-The biggest users of emergency rooms by far are Medicaid recipients. And the new health insurance law will increase their ranks by about 16 million. Medicaid is the state and federal program for low-income families and the disabled. And many family doctors limit the number of Medicaid patients they take because of low government reimbursements.

-ERs are already crowded and hospitals are just now finding solutions.

What do hospitals say about this likelihood? Well, Dr. Arthur L. Kellerman, a researcher with Rand Corp explains it thusly, “More people will have coverage and will be less afraid to go to the emergency department if they’re sick or hurt and have nowhere else to go…. We just don’t have other places in the system for these folks to go.”

What does this mean to you? If you are insured, start looking for a family practitioner, general practitioner or primary care physician now, before you actually NEED an appointment; most offices will squeeze in regular patients. Also, see if your insurance covers wellness care, which helps you use preventative measures to stay healthy, minimizing the likelihood of using an emergency room at all.

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Five Bizarre Things People Insure

July 1st, 2010 by Iris | Comments Off | Filed in insurance facts, insurance news

It’s a new month, so we’re taking a break from talking about BP and healthcare and instead offering a lighter topic. We’ve all heard of insuring homes, cars, and boats, but what really odd things do people insure? Here are five:

  1. Specific Body Parts: We’ve all heard of concert pianists insuring their hands, but last December, pop singer Adam Lambert supposedly took out a $1,000,000 policy on his crotch, because the pelvic thrusts he does so often during his concerts can apparently lead to lower back issues and penile arthritis. (We suspect it might have been less expensive to hire a different choreographer.)
  2. Abuse by Ghosts: While bed and breakfasts here in the states – in cities like Charleston and New Orleans – advertise their ghosts, the Royal Falcon Hotel insures against them. Their policy (which smacks of a publicity stunt) protects employees and guests from improper poltergeists.
  3. Hunting Trophies: According to AXA Art, those of you who are big game hunters can actually insure the stuffed lions, tigers, and bears (oh, my) you’ve been collecting, in case they’re damaged or destroyed. Presumably you can also itemize them on your homeowners policy, as well, in case of something mundane, like theft.
  4. Wedding Insurance: Okay, we understand the concept of “Bridezilla,” but rather than insuring your wedding (sorry, it doesn’t find you a new groom if he backs out; it just covers any deposits and such), maybe you should consider having a back-up plan. Or save money, and elope.
  5. Alien Abduction: Apparently about 20,000 of your co-earthlings have taken out insurance policies in case they’re ever abducted by aliens. This might be wise – after all, flying saucers probably don’t have liability insurance – but we suspect it would be smarter to skip the insurance and invest in lots of aluminum foil. Less expensive anyway.

This list was fun, and all of these policies really exist, as well as many others. You can pretty much assume that if someone thought of it, someone else insured it.

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Tropical Storm Alex Affects BPs Recapture Plans

June 28th, 2010 by Iris | Comments Off | Filed in insurance facts, insurance news

Reuters is reporting that the high waves expected to come as Tropical Storm Alex passes through the Gulf of Mexico will delay BP Plc’s plan to increase oil-capture capacity to up to 53,000 barrels a day. This is according to a company executive.

Kent Wells, senior vice president of exploration and production shared with reporters in a briefing earlier today that the storm was not expected to interrupt the drilling of a pair of relief wells intended to stop the leak by August, or interfere with current oil-capture systems. He said those operations are scheduled to continue, “…unless unfortunately a storm heads directly our way.”

The storm is slowly intensifying, and by tomorrow, according to the U.S. National Hurricane Center, will strengthen into the first hurricane of this year’s Atlantic hurricane season. The storm will likely make landfall near the Texas-Mexico border early Thursday.

Wells said that a week-long delay in hooking up a third oil-capture system could be caused by waves of up to twelve feet. “While we are on track for the end of June, it will be roughly a week after that, the 6th or 7th of July,” he said.

The amount of oil continuing to flow into the sea from under the rig’s cap and through vents on top is not certain, but U.S. science teams are estimating that it adds up to about 60,000 barrels a day. The current capture system involves a drill ship and a service rig that can handle a maximum of 28,000 barrels of oil every day. It will take an additional rig to increase capacity to 53,000 barrels a day, according to BP.

Wells said that a plan to increase capacity to 80,000 barrels a day by the middle of July is still on track. Yesterday, BP said, the existing capture systems either collected or burnded off 24,450 barrels of oil.

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Flagstaff Fire Damage Claims Reach $5 million

June 25th, 2010 by Iris | Comments Off | Filed in fire insurance, insurance news

Arizona residents are feeling the heat from more than the sun this summer, especially near Flagstaff.

The Schultz fire, burning near the city that was originally a railroad town, has already incurred up to $5 million in fire insurance and property damage claims, according to the latest information from the National Interagency Coordination Center’s Incident Management Situation report. So far, the fire, which is 40 percent contained, has consumed 14,800 acres.

Fire officials in the area said local residents were being allowed to return to their homes.

The fire, which was sparked by an abandoned campfire last Saturday, has been characterized as having “extreme fire behavior with rapid rates of spread” by the NICC.

Fire officials said people were being allowed to return to their homes.

NICC said the fire, which was started by an abandoned campfire on June 19, was characterized by “extreme fire behavior with rapid rates of spread.”

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