Author: Farkas Laura

Alleging that they gave artificially low credit ratings to states, municipalities and other public entities, Connecticut Attorney General Richard Blumenthal is suing the three major credit-rating firms.     In three separate lawsuits, Mr. Blumenthal alleged Moody’s Investors Service, Fitch Ratings and Standard & Poor’s Ratings Services “systematically and intentionally” gave lower ratings to states,… Continue reading Connecticut Sues Top Rating Agencies

The world’s third largest insurance broker, Willis Group Holdings Ltd., said on Wednesday that its quarterly net income tumbled 50 percent on charges for contract buyouts, severance and other costs. Willis’ second-quarter net fell to $39 million, or 27 cents a share, from $78 million, or 54 cents, a year-ago. Willis said it took a… Continue reading Willis Group’s Quaterly Income Falls Fifty Percent

The shareholders of Safeco Corporation today voted overwhelmingly to approve the merger agreement entered into on April 23, 2008 with Liberty Mutual Group. Of those Safeco shareholders who voted, 99.5 percent voted to approve the transaction. Under the terms of the merger agreement, Liberty Mutual will acquire all outstanding shares of common stock of Safeco… Continue reading Safeco Corporation Shareholders Approve Proposed Merger with Liberty Mutual

Today Deutsche Bank AG announced fresh write-downs, taking its bill from the global financial crisis beyond $11 billion. Germany’s leading financier had originally been seen as one of the few to emerge unscathed from the crisis, but as the problems on global markets continue Deutsche Bank is being sucked ever deeper into trouble. The group’s… Continue reading Deutsche Bank Reports $11B in Write-Downs

The Occupational Safety and Health Administration (OSHA) today issued citations proposing penalties totaling $8,777,500 against the Imperial Sugar Co. and its two affiliates alleging violations at their plants in Port Wentworth, Ga., and Gramercy, La. OSHA initiated the inspections following an explosion and fire on Feb. 7, 2008, at the Port Wentworth refinery that claimed… Continue reading OSHA Issues Third-Largest Penalty in its History Against Sugar Company

George A. (Shad) Steadman, chairman of The Council of Insurance Agents & Brokers, urged Congress on Tuesday to take a major step toward modernizing the insurance regulatory system by adopting legislation to provide a uniform approach to regulating the commercial surplus lines market.    In testimony before the Senate Banking Committee during a broad hearing… Continue reading CIAB Urges Quick Senate Action on Surplus Lines Reform

The Independent Insurance Agents & Brokers of America (the Big “I”), the nation’s largest insurance association, testified on Tuesday before a hearing of the Senate Committee on Banking, Housing and Urban Affairs on insurance regulation.     Tom Minkler, an independent agent from New Hampshire, chairman of the IIABA government affairs committee and a recently… Continue reading IIAA Supports Modernized State Insurance Regulatory System, Opposes OFC

New Jersey Banking and Insurance Commissioner Steven M. Goldman, testified on Tuesday on behalf of the National Association of Insurance Commissioners (NAIC) regarding the strength and effectiveness of the state-based system of insurance regulation.     “In addition to successfully protecting consumers, state insurance officials have proven to be adept stewards of a vibrant, competitive… Continue reading NAIC Also Weighs In at Senate Hearing, Touts State Insurance Regulatory Successes

Gov. Marc Racicot, president of the American Insurance Association (AIA), yesterday commended the U.S. Senate Banking Committee for holding a hearing to focus on the state of the insurance industry and examine its current regulatory and oversight structure.    Gov. Racicot’s statement follows:    “AIA is a long-time advocate of an optional federal charter in… Continue reading AIA Commends Senate for Focus on Insurance Regulation, Advocate of OFC

The Property Casualty Insurers Association of America (PCI) renewed its call for reforming the state-based insurance regulatory system based on sound principles of regulation and preserving the prerogatives of the states. However, it also recognized that many states have not made sufficient reforms and that much work is needed to modernize and streamline the existing… Continue reading PCI Calls for Sound Principles in Insurance Regulation at Hearing