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A senior Treasury official announced late Thursday afternoon that the Bush administration strongly opposes a House bill that would provide new federal support to state-sponsored insurance and reinsurance programs. Assistant Secretary for Economic Policy Phillip Swagel stated that the proposed measure would provide a new subsidy and implied federal guarantees that would distort prices for… Continue reading House Bill for State-Sponsored Insurance Programs Opposed by Administration

On the heels of the sub-prime lending mess, the Securities and Exchange Commission (SEC) and state attorneys general in New York and Ohio have begun to look into the manner in which big credit-rating companies are paid and whether they are independent enough from Wall Street firms issuing bonds.    The SEC and NY State… Continue reading Regulators Look at Credit-Rating Companies

The AIG Companies today announced that it will begin marketing its directors and officers (D&O), errors and omissions (E&O), employment practices (EPL), fiduciary (PTL) and fidelity liability insurance and services under the new AIG Executive Liability brand. These offerings, which traditionally have been marketed under the National Union Fire Insurance Company of Pittsburgh, Pa. (National… Continue reading AIG Establishes New Executive Liability Brand to Market D&O, E&O, Other Products

United Healthcare, United HealthGroup’s biggest health insurance division, agreed to pay as much as $20 million as part of a settlement with 36 states to resolve problems with the insurer’s claims-paying systems. As part of the settlement, the division also agreed to implement a three-year “process improvement” plan requiring it to submit quarterly reports and… Continue reading United Health Settles with States on Claims-Paying Process

The FBI arrested 11 public officials and an official’s top staffer in New Jersey after setting up sting that established a bogus insurance brokerage. The arrested persons alleged are accused of accepting bribes ranging from $1,500 to $17,500 each to influence how municipalities and school districts awarded insurance brokerage and roofing service contracts, according to… Continue reading FBI Arrest Twelve in New Jersey Insurance Sting

Chicago-based financial services company Unitrin has agreed to sell its business insurance segment to New York City-based AmTrust. AmTrust is a multinational specialty property and casualty holding company, which, through its insurance carriers, offers specialty Property and Casualty insurance, including workers compensation, commercial automobile and general liability, extended service and warranty coverage. Although the terms… Continue reading AmTrust in Negotiations for Unitrin’s Insurance Unit

State Farm’s policy language denying Gulf Coast homeowners’ claims after Hurricane Katrina is at the center of a case scheduled to be heard today by a federal appeals court.    According to the insurer, its policies cover damage from hurricane-force winds, but not from rising water, and it has refused to pay for any damage… Continue reading Policy Language at the Core of Katrina Appeals Case

In the face of decreasing lending volumes and an increase in loan defaults, Countrywide Financial announced an additional 900 job cuts. These reductions are in addition to the 500 announced last month in the company’s Full Spectrum division, which handles loans below prime quality, and in the unit that deals with loans originated through brokers.… Continue reading Countrywide Financial to Cut More Jobs

This afternoon Florida congressmen will urge lawmakers to pass legislation designed to stabilize the property insurance market in disaster-prone areas.     Introduced last month by Reps. Ron Klein and Tim Mahoney, the bill would allow state insurance funds to share the risk of a major natural disaster-related loss with one another.     However,… Continue reading FL Congressmen Urging Lawmakers to Pass Bill Stabilizing P/C Insurance Market

The National Highway Traffic Safety Administration announced that for 2013 model-year vehicles, head protection for side crashes will be required.    The safety upgrades are designed to reduce deaths and injuries to motorists struck by another or truck along their vehicle’s side. More than 300 lives may be saved and more than 400 serious injuries… Continue reading Head Protection for Side Crashes in 2013 Vehicle Models Required