Author: Farkas Laura

Zurich North America, one of the nation’s leading property-casualty insurance companies, announced it has added 100 monoline workers’ comp business classifications to its coverage offerings. Most of the new classes are for light manufacturing, wholesale and service company risks.     “This action further demonstrates our appetite to serve small business customers and the distributors… Continue reading Zurich Adds 100 New Workers Comp Classifications to Expand, Service Small Business Market

A new model law adopted by the National Conference of Insurance Legislators (NCOIL) will create a stronger safety net for property/casualty guaranty funds nationwide.      According to legislators, the Post-Assessment Property and Liability Insurance Guaranty Association Model Act, adopted by NCOIL during its annual meeting in Las Vegas, would create a comprehensive, statutory remedy for… Continue reading NCOIL to Adopt Model Law to Strengthen State Guaranty Funds

Travelers of Massachusetts announced yesterday that it will be offering a Roadside Assistance Program Discount of four percent to its automobile insurance customers as a part of an update to the company’s filing with the Massachusetts Department of Insurance.     If approved by the Department, the discounts will be available April 1, 2008 when… Continue reading Travelers to Offer Roadside Assistance Discount in MA

Speaking at a Banc of America Securities bond insurer conference on Tuesday, several executives from some of the larger companies that provide payment insurance for bonds and other securities backed by subprime mortgage stated that they could raise more capital through reinsurance, if needed.    The companies, which have seen their share prices plummet in… Continue reading Reinsurance Available for Increased Capital According to Bond Insurers

Allstate Insurance Co. faces a lawsuit by four Illinois residents who have filed for class-action status, claiming the insurer’s practice of calculating insurance rates based on credit scores violates the state’s Consumer Fraud and Deceptive Business Practices Act. According to court records, Robert L. Johnson Sr., Anthony L. Richardson, Sheila M. Sydnor and Deborah A.… Continue reading IL Residents Sue Allstate Over Credit-Based Insurance Scoring

Although there are substantial differences in House and Senate versions of legislation to renew the Terrorism Risk Insurance Program, industry observers widely expect a workable compromise before the $100 million backstop expires on Dec. 31.      The Senate passed a seven-year extension by unanimous consent on Nov. 16, which differered from he House’s 15-year version… Continue reading TRIA Compromise Likely Before End-of-Year Expiration

Standard & Poor’s Ratings Services announced a number of rating actions, covering five mortgage guarantee insurers: Radian Group, Mortgage Guaranty Insurance PMI Group, Triad Guaranty and Old Republic. The sector has been severely affected by the subprime mortgage crisis, which poses a real threat to their financial stability.     Nonetheless, S&P sees some positive… Continue reading S&P Announces Rating Actions on Five Major Mortgage Insurers

CIGNA, the U.S.’s fourth-largest health insurer as measured by member enrollment, announced its plans to buy regional health insurer Great-West Healthcare for $1.5 billion. The insurer’s objective is to strengthen its position in the West and in the health-benefits market for small and midsize employers. Cigna will pay Great-West’s parent company, Great-West Lifeco Inc. of… Continue reading CIGNA to Acquire Great-West Healthcare

Citigroup is receiving a $7.5 billion capital infusion from the investment arm of the Abu Dhabi government, according to announcement by company last night.     The investment by the Abu Dhabi Investment Authority will help rebuild Citigroup’s capital levels, which have been eroded by a credit crunch that began in the summer. Citigroup Chief… Continue reading Abu Dhabi Invests in Citigroup in the Wake of Large Subprime Losses

In an effort to bring about universal coverage in California, Governor Arnold Schwarzenegger says people must start thinking about health insurance the way they do auto insurance — as a responsibility everyone must shoulder.     In January, Schwarzenegger proposed a plan requiring all Californians to have health coverage, promising to spread the cost among… Continue reading Schwarzenegger’s Universal Health Plan in CA Faces Obstacles