Author: Farkas Laura

Florida’s Governor Crist and Insurance Commissioner Kevin McCarty on Tuesday ordered Allstate Insurance Company to turn over documents regarding its business practices and relationships with trade groups, as part of an investigation into possible conspiracy among property insurers to keep prices high. Allstate and its subsidiary Allstate Floridian Insurance Co., Florida’s fourth-largest insurance company, was… Continue reading Allstate Ordered to Turn over Records on Property Insurance in Florida

In its overall efforts to expand in the United States, German reinsurer Munich Reinsurance Co. announced today its plan to will acquire specialty insurance company Midland Co. for $1.3 billion, or $65 per share. The offer is subject to regulatory and other approvals, and represents a 13.5% premium over Midland’s closing price of $57.27 on… Continue reading Munich Re Announces Plan to Acquire Midland

Legislation on terrorism and flood insurance scheduled for discussion in the Senate Banking Committee today represents good steps forward on issues of national importance, according to the Property Casualty Insurers Association of America (PCI).    The Senate version of Terrorism Risk Insurance Act (TRIA) legislation would extend the program for seven years, eliminate the distinction… Continue reading PCI Backs Senate Bills on TRIA and Flood Insurance

The London-based Market Reform Group (MRG) has announced that use of the Insurers Market Repository for processing electronic claims files (ECFs) in the London market is behind in reaching its set target, and Lloyd’s of London has warned business that action will be taken against them if they drag their feet in adopting the system. … Continue reading New Electronic Claims Processing System Falls Short of Target

“A.B. 8,” a California Assembly bill passed during the regular legislative session that would have required employers to provide health insurance to their employees or pay a tax to the state, has been terminated by Governor Arnold Schwarzenegger.    The coverage would have amounted to 7.5 percent of payroll or an equivalent amount paid in… Continue reading CA Governor Nixes Employer Health Bill

The U.S. Senate Banking Committee announced it will meet tomorrow to consider bills that would renew the federal government’s soon-to-expire terrorism insurance program and reform federal flood insurance.   In a morning session sure to be of great concern to insurance industry members and real estate developers alike, the panel will open debate and likely hold… Continue reading Insurance Bills to Be Taken Up Tomorrow by Senate Panel

Proposed Internal Revenue Service (IRS) rule changes could adversely affect an captive insurance companies, an industry that fuels more than 1,400 high-paying jobs in the state of Vermont, say industry onlookers.      If enacted, the IRS rules would effectively eliminate the deductible status of the “reserves” held by captive insurance companies, which is basically money… Continue reading Proposed IRS Rules Alarm Captive Insurance Industry

Stock futures fell today in the face of record crude oil prices and the rising concerns about the negative effects that higher energy costs may have on consumers and corporate profits. A barrel of U.S. crude for November delivery rose to $87.97 in electronic trade due to Middle East tension.    Noted Andre Bakhos, president… Continue reading Stocks Slide Amid Surge in Crude Oil Prices

In a survey conducted by Houston, Texas-based law firm Fulbright & Jaworski, findings indicate that corporate attorneys are filing and defending fewer lawsuits and expect litigation to continue declining next year. Sixty-five percent of survey respondents said they had filed at least one lawsuit during the past year, a five percent decline from 70 percent… Continue reading And the Survey Says… Companies Filing and Defending Fewer Lawsuits

An historic contract with General Motors Corp. that will end GM’s obligation to provide retiree health care benefits to members of the United Auto Workers (UAW) and also establish a cash balance pension plan for certain new employees has been ratified, announced spokespersons for the UAW. The agreement, which was approved by about two-thirds of… Continue reading Union Members Approve Historic Contract with Detroit Auto Maker