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Fannie Mae, Freddie Mac and other companies bleeding red ink as mortgage delinquencies continue to rise have won a substantial victory in a two-year battle with the Internal Revenue Service, and will now be allowed to use those losses to reduce their tax burden.     The IRS withdrew proposed regulations that had asserted that… Continue reading Fannie Mae, Freddie Mac Come Out on Top in IRS Battle

The country’s largest health insurer, WellPoint Inc., posted a 25 percent decline in first-quarter net income amid a rising medical-loss ratio as the insurer once again lowered its full-year earnings projections.    Angela Braly, WellPoint president and CEO, said the new forecast is based on “higher medical costs and a lower level of favorable prior-year… Continue reading Health Insurer Posts Sickening Drop in Profits

Readers of the Wall Street Journal weigh in on whether the government should establish a federal office to regulate insurance after an op-ed piece by Representative Ed Royce appeared in the paper. Here’s what they have to say: In his op-ed “The Forgotten Financial Sector” (April 16), Rep. Ed Royce laments that the states have… Continue reading WSJ: Citizens Comment on Op-Ed Piece about Federal Insurance Regulation

Due to a mistake made on Monday by a Florida appeals court, Allstate’s 1,100 insurance agents in the state are still in business. Less than an hour after issuing an order denying Allstate’s appeal of a state-ordered suspension, the 1st District Court of Appeal withdrew it.    In a terse statement withdrawing the original order,… Continue reading FL Appeals Court Reverses Allstate Suspension

According to the latest Commercial Market Index Survey by The Council of Insurance Agents & Brokers, the soft cycle for commercial property/casualty insurance got even softer in the first quarter of 2008, with three-fourths of the agents and brokers reporting that renewal premiums for their small and medium accounts were down 1-20 percent compared with… Continue reading CIAB Survey: Market is Softer in First Quarter ’08

Federal windstorm insurance offered through the National Flood Insurance Program (NFIP) would needlessly displace the private market, disrupt existing state funds, and create a significant burden for U.S. taxpayers, according to the Property Casualty Insurers Association of America (PCI).    PCI asks the U.S. Senate not to add wind insurance to the flood program (as… Continue reading PCI Weighs in on National Flood Program; Says Wind Coverage Available through Private, State Programs

The insurance industry-supported Institute for Business & Home Safety (IBHS) announced Monday its plans to build a new facility to allow full-scale testing of buildings and construction components. IBHS, located in Tampa Bay, Florida, stated that its members will fund the new Insurance Center for Building Safety Research. In a statement announcing the project, IBHS… Continue reading Insurance Industry to Build Safety Testing Facility

The following are statements from Bob Rusbuldt, President & CEO of the Independent Insurance Agents & Brokers of America (the Big “I”), and Charles Symington, Senior Vice President of Government Affairs, on H.R. 5840. “The Big ‘I’ is very concerned with H.R. 5840, legislation that would create an Office of Insurance Information (OII) within the… Continue reading IIAA Comments on Legislation to Create Insurance Information Office in Treasury

Last month’s release of the U.S. Treasury Department’s Blueprint for Financial Regulatory Reform, which included a plan to set up an optional federal charter (OFC) to regulate insurance, has caused many in the industry to draw clear lines on each side of the issue. The National Association of Insurance Commissioners (NAIC) clearly opposes the establishment… Continue reading NAIC Responds to NAIFA’s Support of Insurance OFC

According to a new A.M. Best special report, “U.S. Property/Casualty 2007 Financial Review”, last year saw the U.S. property/casualty industry experience its first decline in net premiums written since the World War II era.    Driven by across-the-board softening in personal and commercial lines pricing, leakage of premium and a growing interest in alternative forms… Continue reading BestWeek: A.M. Best Report Finds P/C Insurers Post First Drop in Net Premiums Since WWII