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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

Dutch insurer Aegon adjusted its 2010 target for value of new business, a way of valuing income from the sale of insurance premiums, to 1.25 billion euros, up 14 percent from its original target. The insurer said that it expects to make “better-than-expected” progress toward the new target and revised it original 1.1 billion euros… Continue reading Dutch Carrier Aegon Increases Premium Target for 2010

Swiss Re, the world’s largest reinsurer by premiums, last week announced a 1.2 billion Swiss Franc loss, and now finds itself under scrutiny by the Swiss Federal Office for Private Insurance. Monica Maechler, chief executive of the supervisory authority that monitors the business operations of private insurance companies, is looking carefully at the indirect engagements,… Continue reading Insurance Office Looking into Swiss Re’s Investments

With so many people planning to visit family and friends over Thanksgiving, there are likely to be long lines at rental car companies across the country. Properly insuring a rental car can be tricky. Unfortunately, many consumers don’t even think about car rental insurance until they get to the counter, which can result in costly… Continue reading Consumers Confused Over Car Rental Insurance