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Car insurance is required in all 50 states fo... ]]> Fri, 23 Dec 2011 00:00:00 GMT de107a78-fb21-4de1-99d3-69594e898a2f Auto Insurance Honesty is the best policy. Cheaters never prosper. It’s a sin to tell a lie. You’ve heard all the clichés but sometimes it takes knowing how easily you can be found out and the consequences of fibbing to hammer home the point. So, t... ]]> Wed, 21 Dec 2011 00:00:00 GMT 3c64def9-56b3-49b9-ac54-8f596269bff6 Auto Insurance Just a few shopping days left before Christmas. Don’t let your car become a shopping mall for crooks. Every year, over $1.25 billion in personal property is stolen from America’s vehicles, according to the National Insurance Crime Bureau. M... ]]> Thu, 15 Dec 2011 00:00:00 GMT 943ea575-0c05-4e72-882c-f2ac18331346 Auto Insurance Holiday party season is in full swing. So cheers to you! But before you hit the road after hitting the bars, we’ve got a six-pack of reasons for designating a sober driver. The best one, of course, is that you want to be alive and healthy... ]]> Mon, 12 Dec 2011 00:00:00 GMT 297645d7-1a14-46f6-bca0-91b249f3bce6 Auto Insurance Information is power. In today’s world, knowing who knows what about you is your best bet at leveling the playing field. Here’s what you need to know about insurance credit scoring and whether a less than stellar
score is why you&rsquo... ]]> Wed, 07 Dec 2011 00:00:00 GMT 1a975a5a-a89f-4e20-9c83-66d9a8c52ab2 Auto Insurance The early numbers on Cyber Monday 2011 are in. According to Coremetrics, sales for this year’s Cyber Monday beat last 2010’s by 13.7% and topped this year’s Black Friday by 24.1%. The average dollar amount per online order was up, too... ]]> Fri, 02 Dec 2011 00:00:00 GMT 3e6a8de5-9f9f-4e90-877f-9f47415e158d Auto Insurance Here's a sobering thought for the holidays: Traffic accidents remain one of the leading causes of untimely death in America. Besides not driving like a maniac, observing the rules of the road and exercising basic
safety precautions (buckle up out ... ]]> Wed, 30 Nov 2011 00:00:00 GMT b4784bdb-cc6d-4fad-bef2-acf7c9b042d3 Auto Insurance Holiday shopping season is about to kick off, bringing with it all the dubious joys of trying to find a parking space. Street parking, hard to find anytime, is now at a premium. Shopping mall lots aren’t much better.
Yet, no matter how crowd... ]]> Thu, 17 Nov 2011 00:00:00 GMT 4943974a-769e-4b31-aac3-0fbb20520377 Auto Insurance The Thanksgiving weekend signals the start of the 2011 holiday season and a flood of drivers heading down the Interstate for a family turkey feast. While it’s not the busiest travel time of the year (5 to 10 days in summer get that honor... ]]> Tue, 15 Nov 2011 00:00:00 GMT b51b70f4-b909-4a09-85e0-abefe862f5f1 Auto Insurance Last year, parts of the U.S. saw the coldest winter in 30 years. But if you thought that was cold, hang onto your long johns, because experts are predicting another record-breaker this year.  If October’s early snow storms were any indicatio... ]]> Wed, 02 Nov 2011 00:00:00 GMT 0579bccc-ed63-4ace-bf33-9fe99f8258b2 Auto Insurance With winter on the way, along with White Christmases, ski trips and snowball fights, we can also look forward to more potholes cropping up. Winter weather takes a heavy toll on America’s crumbling roads. The New York DOT estimates it fills as man... ]]> Tue, 25 Oct 2011 00:00:00 GMT 60a364bb-9ef1-49ba-87e4-2f9d928cdfd2 Auto Insurance You’ve probably read about people losing their jobs or blowing a job interview because of indiscrete Facebook posts. But employers and HR departments aren’t the only people scanning social media sites for personal data. Now the car insuranc... ]]> Mon, 24 Oct 2011 00:00:00 GMT 319f2d08-5098-4025-b8c7-eb9756520a4b Auto Insurance The National Association of Insurance Commissioners (NAIC) issued an alert this month reminding consumers to review their auto insurance policies at least once a year. The easiest way to do that, NAIC says, is to get car insurance quotes online using s... ]]> Fri, 23 Sep 2011 00:00:00 GMT 9aaa7c67-9cfc-4b22-98f8-772fc22f9f6e Auto Insurance Motorcycles, scooters, and mopeds must comply with all parking and standing restrictions that apply to traditional vehicles. In some cases the Illinois Vehicle Code treats scooter and moped operation similar to that of a bicycle; however this is not th... ]]> Wed, 14 Sep 2011 00:00:00 GMT b585041e-e9c3-457c-a8e5-8190392fb341 Auto Insurance Distracted driving is a leading cause of car accidents. According to the National Highway Traffic Safety Administration (NHTSA), 20% of all injury crashes and 18% of automobile fatalities in 2009 (the latest data
available) were the result of dist... ]]> Tue, 09 Aug 2011 00:00:00 GMT 37767b05-053a-4b80-815b-6b0d12ae6602 Auto Insurance Summer and the summer driving season officially kicked off this week. With more hours of daylight and warm weather, it seems counterintuitive that summer not dark, dreary winter is the deadliest driving
season. Even more surprising, the Fourth of ... ]]> Thu, 23 Jun 2011 00:00:00 GMT 4f78bb83-a99f-4688-90ea-3999f86e43ac Auto Insurance Spring was a little late in coming to many parts of the country this year. When it did show up, it often wreaked havoc. So if you haven’t done your spring cleaning yet, you get a pass and a second chance to
get organized.  Start... ]]> Mon, 20 Jun 2011 00:00:00 GMT 6f21043f-60c4-4736-a0f1-9ffb1b4fd47a Auto Insurance Good for you! You  applied for competitive health insurance quotes and car insurance quotes at www.einsurance.com. You secured a health insurance policy and auto insurance policy that fit your needs and budg... ]]> Wed, 15 Jun 2011 00:00:00 GMT f95c75da-28bf-4f08-a607-8110513af2dd Auto Insurance Running a red light can be quite costly. In addition to the fine (upwards of $500 in some places), the points on your driving record (1, 2, 3 or more depending on where you live) can result in higher car insurance premiums. It’s bad enough when y... ]]> Fri, 10 Jun 2011 00:00:00 GMT 9bdb94fc-fd3a-4421-8915-cf0270ae8c2e Auto Insurance At least 78% of Americans aged 70 and older are still licensed to drive, according to the Insurance Institute of Highway Safety (IIHS). Popular opinion holds that older drivers pose a higher-than-average danger to themselves and others on the road. But... ]]> Thu, 09 Jun 2011 00:00:00 GMT 6158dec1-1a4d-45fe-871d-262a7904213c Auto Insurance Detroit, Michigan is poised to become a test site for a bare-bones auto insurance program aimed to get the city’s uninsured drivers to carry some kind of coverage. Michigan’s 19% uninsured driver rate is well above the 13% national average,... ]]> Mon, 06 Jun 2011 00:00:00 GMT 07d74499-a0d3-4d61-b690-58f2c5532b6e Auto Insurance New York City officials announced this week that the city is looking into “DriveSmart” technology, an in-vehicle device that tracks mileage, speed and other driving habits to calculate individual car insurance premiums. The pay-as-you-go, u... ]]> Thu, 12 May 2011 00:00:00 GMT b84374b0-3f1b-45f1-ba7f-0bf84b7437b8 Auto Insurance Your good driving habits, combined with car insurance discounts like multi-policy, multi-vehicle and anti-theft devices can help you find cheap car insurance. But while you’re working hard to keep your premiums low, scam artists are driving ... ]]> Mon, 18 Apr 2011 00:00:00 GMT b746186d-93e0-43dc-a2cb-9f2c6f9d21b3 Auto Insurance Shopping for a car for your teen driver? The right choice can have an impact on your teen’s car insurance premiums. If your kid is like most, he or she will want something that’s cool, sporty and fast. Your job as a responsible parent (and ... ]]> Mon, 11 Apr 2011 00:00:00 GMT 1261480e-4d94-485e-b700-c77b9e555079 Auto Insurance You want to shop for a cheaper car insurance policy, a different level of coverage or better service. You’re moving to another state. You sold your car. Your marital status has changed. There are all kinds of reasons to cancel or switch your car ... ]]> Wed, 30 Mar 2011 00:00:00 GMT 219807ca-4634-4a95-838e-352a9534d60b Auto Insurance Penny-pinching is turning into an art form these days, but take care where you decide to save. It could end up costing you more in the long-run. Car insurance, for instance, is one of those expenses you might be tempted to forgo. It's true that the che... ]]> Tue, 29 Mar 2011 00:00:00 GMT ea07ec1f-1ffb-4205-b9d0-f1b1b0dbb295 Auto Insurance Chicago, IL (PR WEB) January 13, 2011--What’s the difference between a bad driving record and a good one? As much as $3,000 a year or more according to a new analysis comparing online auto insurance quotes. The research was conducted by Ryan Krie... ]]> Wed, 16 Mar 2011 00:00:00 GMT c1accdd7-03ae-4e6c-b9f6-329e4a9215a0 Auto Insurance Like millions of Americans who rent vehicles for business and pleasure, you probably shop for the best price, upgrade offers or loyalty points. But how much thought do you give to the safety record or conditions of the vehicle you’re renting? If ... ]]> Tue, 15 Mar 2011 00:00:00 GMT 1367a231-dc4f-452e-b14f-07501d2349df Auto Insurance Would a national law requiring graduated drivers licensing in all 50 states save lives? Backers of the STANDUP Act, including major insurer AllState, believe so, and they’re pushing for the reintroduction of the bill, which would create a standar... ]]> Tue, 08 Mar 2011 00:00:00 GMT 37a3abf9-4b8b-4319-862a-99cd85662ea9 Auto Insurance The new year is well under way, solid economic recovery remains elusive and global events have sent gasoline costs soaring. Is there any good news? Well, maybe, if you’re in a position to take advantage of some industry trends that could help you... ]]> Mon, 07 Mar 2011 00:00:00 GMT a5bc0493-cfde-4bd9-ba36-93a5ed3c6756 Auto Insurance In a perfect world, all insurance claims would be handled promptly and to your complete satisfaction. Then again, in a perfect world, you wouldn’t need insurance. Alas, perfection continues to elude us and our insurance carriers. The National Ass... ]]> Tue, 01 Mar 2011 00:00:00 GMT e128abfe-048c-4dac-b5ea-72559793c1e9 Auto Insurance Tick. Tick. Tick. April 15 is coming. About 1% of the population is audited every year, but in an effort to bolster revenues, the IRS is reportedly ramping up their scrutiny. One of the red flags is unreported income. Is the inheritance you got from yo... ]]> Mon, 14 Feb 2011 00:00:00 GMT aff600b9-a917-4647-9657-18310c1ba233 Auto Insurance Uncle Sam wants you to declare every single penny of taxable income. Failure to do so may result in an audit (which makes root canal without anesthesiology seem like a picnic) and hefty fines. But what exactly is taxable income? The courts have defined... ]]> Mon, 14 Feb 2011 00:00:00 GMT 3a668842-2dc0-4753-b8f8-13dbd2bcd008 Auto Insurance Rats! You just smashed up your two-year-old car. You have a good car insurance policy with comprehensive and collision, and a fairly low deductible. After notifying the police and your insurance company (remember, you’re contractually obligated t... ]]> Fri, 11 Feb 2011 00:00:00 GMT 00f2c4fa-0253-4e0b-8548-93eecac1448c Auto Insurance We’re spending more time in our cars and not always by choice, according to the most recent Urban Mobility Report prepared by the Texas Transportation Institute. The report claims that the average commuter spent 34 hours delayed in traffic last y... ]]> Tue, 08 Feb 2011 00:00:00 GMT 98c0ca54-7f4e-4501-a1cf-e6a8401945c1 Auto Insurance As the price of gasoline continues to inch upward (a national average of $3.10 per gallon as of February 2, 2011), maybe you’re thinking about buying one of the 30 different hybrid cars currently on the market.  You’re not alone. After... ]]> Wed, 02 Feb 2011 00:00:00 GMT e641e232-514c-48dc-beeb-07ac97d9cff1 Auto Insurance The tax man cometh and he’s headed for your wallet. Itemize your tax return and take full advantage of all legitimate income tax deductions that you’re entitled to in 2010, including insurance deductions. Deductions help lower your gross ta... ]]> Mon, 24 Jan 2011 00:00:00 GMT aea1f8e5-c794-4780-85ce-0d31c3170d2c Auto Insurance It’s no secret that teenagers like to sleep, but what comes as a surprise is that lack of sleep in teens could be tied to risky behaviors including driving skills. According to sleep researchers, sleep deprivation can be as detrimental to a drive... ]]> Thu, 20 Jan 2011 00:00:00 GMT 1962d350-0124-4d9e-b9f3-65ea4f2d9b7e Auto Insurance US Transportation Department Secretary Ray LaHood has it out for distracted drivers, specifically all you mobile phone users, hand-held and hands-free. To date, his campaign has resulted in bans on texting or talking while driving in 30 states. His lat... ]]> Tue, 11 Jan 2011 00:00:00 GMT c506ee6c-c26b-4a77-a625-297f3adb8cb1 Auto Insurance Looking for cheap car insurance? If you don’t put a lot of miles on your car each year, Pay As You Drive may be your ticket to car insurance savings. Also called usage-based, distance-based and per-mile pricing, Pay As You Drive (PAYD) is gaining... ]]> Wed, 05 Jan 2011 00:00:00 GMT 417d1993-0150-41a5-8eb4-6086419d2693 Auto Insurance As another New Year’s Eve approaches, reflect on some data before you head for a party or host one.  You might also want to think about a couple of mundane items, including your car insurance and the impact a drunk driving convictio... ]]> Sat, 27 Nov 2010 00:00:00 GMT 8091768a-3e2a-4777-84e3-f8ceb9d51c12 Auto Insurance Almost every state and the District of Columbia requires that you carry a minimum level of car insurance as a condition of registering and operating a vehicle. Some states also add uninsured/underinsured motorist coverage to their minimum requirements.... ]]> Sun, 21 Nov 2010 00:00:00 GMT 5c59fe09-9abc-4aa3-8b11-af75700b2607 Auto Insurance You might never put yourself in the same category as a marijuana or a cocaine user, but if you take certain prescriptions or over-the-counter drugs and get behind the wheel of an automobile, you’re driving under the influence. You can be ticketed... ]]> Wed, 17 Nov 2010 00:00:00 GMT fe1ffa4e-351d-40dc-a6aa-47dd4b609ee1 Auto Insurance If you’re like every other small business owner in today’s economy, you’re scrambling around for ways to save money. Consider commercial fleet insurance. As you’re reviewing your business insurance coverage(always a good plan at... ]]> Tue, 16 Nov 2010 00:00:00 GMT 7067906c-1c72-4ac3-a498-c729cad65df8 Auto Insurance Here comes Santa Claus, only he’s driving a big red monster truck and he’s riding your tail going 70mph. Quick, what do you do when he swerves around you and gives you a one-finger salute before he cuts you off? If you’re like half of... ]]> Sat, 13 Nov 2010 00:00:00 GMT 91309983-f8aa-4dab-b391-a3c308e41401 Auto Insurance Seeing a flashing red light in your rear...

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Benefit Solutions Group Joins Heffernan Insurance Brokers in St. Louis

Heffernan Insurance Brokers is expanding in St. Louis, Mo., with the addition of Benefits Solutions Group, also of St. Louis.

The Benefit Solutions Group will relocate to Heffernan’s offices in 2013 to work as a united team.  Linda Huber, of Benefit Solutions Group has been named Heffernan’s senior vice president and employee benefits practice leader for St. Louis.

Headquartered in Walnut Creek, Calif., Heffernan has offices in San Francisco, Petaluma, Menlo Park, Los Angeles and Orange County, Calif.; Portland, Ore.; St. Louis, Mo., and New York, N.Y.

Source: Heffernan Insurance Brokers

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Combined Agents of America Adds 5 New Kansas-Based Members

Combined Agents of America LLC (CAA) has expanded further into Kansas with the addition of five new agency members: Fuqua Ruth Typer Insurance; SBS Insurance Agency; Keller-Leopold Insurance Inc.; Wood-Dulohery Insurance; and ICI Insurance Brokers.

Together these new members bring more than $65 million in premium growth to CAA, and a wide geographic spread of agency coverage in Kansas.

In 2011, CAA generated more than $505.8 million in combined property and casualty annual premiums.

CAA’s new members will grow its membership to 52 insurance agency members.

Fuqua Ruth Typer Insurance is a family owned and operated insurance agency with offices in Hesston and Newton, Kan., providing quality insurance solutions to clients in Kansas, Missouri and Oklahoma.

ICI Insurance Brokers, established in 1885, is a consultative insurance broker providing personal and business insurance for clients in El Dorado, Emporia, Derby, Wichita and the surrounding areas of Kansas. The agency’s official corporate name is Insurance Center Inc.

Keller-Leopold Insurance Inc. was founded in Garden City in 1943. It is a multi-line insurance agency serving the residents of Southwest Kansas with offices in Garden City, Dodge City, Cimarron, Syracuse, Bucklin and Ness City.

SBS Insurance Agency is a locally owned and operated insurance agency based in Seneca, Kansas. SBS Insurance is officially licensed as Runnebaum Inc.

Wood-Dulohery Insurance Inc. was founded in Parsons in 1961. Today the agency provides personal and commercial insurance coverage to residents in Southeast Kansas with offices in Parsons and Pittsburg, Kan.

Founded in 1997 Combined Agents of America LLC (CAA) is based in Austin, Texas, and is comprised of 52 independent insurance agencies located throughout Texas, Oklahoma and Kansas.

Source: CAA

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R.I.-Based Narragansett Bay Insurance Co. Names New CFO

Pawtucket, R.I.-based Narragansett Bay Insurance Co. named Kirk Lusk as the new chief financial officer.

Kirk Lusk

As CFO, Lusk will provide financial oversight including developing operating and financial strategic plans.

Lusk brings 20 years of finance and insurance experience working as an underwriter, controller and CFO. He recently worked as vice president of finance for The Hartford, where he provided financial oversight to the company’s commercial markets including sales and distribution, claims, and the strategic initiatives office.

He also worked for four years as CFO – international for Aetna, where he was responsible for the overall financial operations for 20 legal entities in the United States, Bermuda, China, Dubai, Ireland and the UK. He also served as the group CFO and chief operating officer of the Alea Group and as CFO of both GE Employers Reinsurance Global Casualty and GE Capital (Auto Warranty Services).

Narragansett Bay Insurance offers specialty insurance services and products to homeowners through a network of independent agents along the eastern seaboard. The company provides homeowners coverage in Massachusetts, New Jersey, New York and Rhode Island – with plans to add additional states.

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Judge Freezes Assets of Owners of Meningitis-Linked Pharmacy

A bankruptcy judge on Monday froze the assets of the owners of the pharmacy linked to a deadly U.S. meningitis outbreak.

Orders signed by U.S. Bankruptcy Judge Henry Boroff temporarily restrict the owners of New England Compounding Center (NECC) from selling their luxury homes or spending up to $21 million they received last year in salary and shareholder distributions.

NECC filed for bankruptcy protection in December after U.S. authorities shut down its pharmacy operations amid a meningitis outbreak that has killed 44 people and sickened nearly 700 others, according to the U.S. Centers for Disease Control.

An FDA agent stood at the doorway of NECC in Framingham, Mass., Oct. 16, 2012, as investigators worked inside. The company's steroid medication has been linked to a deadly meningitis outbreak. (AP Photo/Bill Sikes)

Boroff also ordered three companies affiliated with NECC, including Ameridose LLC, from paying money to the individual owners. Ameridose has paid money to NECC, though, to fund its legal defense and bankruptcy counsel, court filings show.

“This is a victory for the creditors committee,” said Anne Andrews of Andrews & Thornton of Irvine, California, a co-chair of the creditors committee.

The judge’s rulings came in response to an emergency motion of the Official Committee of Unsecured Creditors. The group launched an investigation after the payments to the owners were revealed Jan. 18 in court filings. The creditors’ group, which includes meningitis victims, then sought and received court orders that restrict the sale of owners’ real estate and spending down their bank accounts, according to court papers.

Recent disclosures show how privately-held NECC’s largest shareholder Carla Conigliaro, for example, received nearly $9 million in 2012, according to court papers.

In addition, Barry Cadden, NECC’s chief pharmacist, received about $3.2 million in 2012, filings show. His wife, Lisa Cadden, received about $2.8 million. Greg Conigliaro, a recycling entrepreneur who is Lisa Cadden’s brother and Carla Conigliaro’s brother-in-law, received about $1.6 million, court papers show.

In a statement issued after the payments were revealed, NECC said a large portion of the distributions to owners were for taxes that were coming due.

“The cash flow patterns and expenditures identified as part of the Chapter 11 process were consistent with the routine operations of NECC throughout 2012,” NECC said last week. The company also said there were no indications the pharmacy would experience financial distress in the fourth quarter of 2012.

Last year, NECC shipped thousands of vials of a fungus-tainted steroid to medical facilities throughout the United States, according to authorities. More than 14,000 people have been exposed to the drugs, which were typically injected to ease back pain.

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Treasury Pay Czar Allowed Excessive Pay at Bailed-Out AIG, GM: Inspector General

The U.S. Treasury Department in 2012 failed to curb executive pay at companies rescued with taxpayer funds, the second straight year that it did not live up to its own rules, an internal watchdog said on Monday.

The inspector general for the government’s bailout program had harsh words for Treasury’s Office of the Special Master, the “pay czar” charged with setting compensation for companies that received rescue funds during the financial crisis.

“While taxpayers struggle to overcome the recent financial crisis and look to the U.S. government to put a lid on compensation for executives of firms whose missteps nearly crippled the U.S. financial system, the U.S. Department of the Treasury continues to allow excessive executive pay,” the report said.

In 2012, the pay czar acceded to company requests in approving multi-million-dollar pay packages and pay hikes for top executives at General Motors, AIG and Ally Financial.

The Special Master approved all 18 pay raises requested by the companies, for a total of $6.2 million, and approved pay packages of at least $1 million for 68 of the 69 employees at the companies it was overseeing, the report found.

The government’s Troubled Asset Relief Program, known as TARP, had pumped $68 billion into AIG, $50 billion in GM and $17 billion in Ally Financial, among others, to save them from collapse during the 2007-2009 crisis.

The special inspector general, Christy Romero, said it was not surprising companies asked for large pay packages and higher pay.

“But what we saw in 2012 that is somewhat different than prior years is that this time the companies pushed back on pay, but they seemed to have met no resistance,” she said in an interview.

Romero is tasked with overseeing TARP.

In December, the Treasury sold the last of its common stock in insurer AIG and said it plans to sell its remaining shares in automaker GM in the next year or so, leaving Ally as the last major company that still owes money to the government under TARP.

The acting pay czar, Patricia Geoghegan, said her office achieved its mission, cutting average cash compensation for the top 25 executives at bailed-out companies by more than 90 percent from what they were getting prior to the TARP bailout, and cut average total pay by more than 50 percent.

In 2011 and 2012, the office also froze pay for the chief executives of General Motors, AIG and Ally Financial.

In a Jan. 25 letter accompanying the report, Geoghegan said she disagreed with the findings. She said her office “has sought the appropriate balance” between its competing priorities, which include curbing compensation that would encourage risk-taking, but also ensuring that companies remain competitive with their peers and able to repay TARP funds.

Last year, Romero’s office found pressure from financial institutions undermined efforts to limit executive pay at bailed-out companies, especially as some Treasury officials were more concerned with getting TARP funds back than in limiting pay.

Romero said the situation has worsened since then. Contrary to recommendations the inspector general made last year, the pay czar’s office has not developed procedures for how to decide compensation or when to determine high salaries are warranted.

“Without developing some criteria … Treasury put itself in a position of essentially letting the companies drive what pay Treasury was approving,” she said.

Under the rules governing pay for TARP recipients, cash salaries are supposed to rarely exceed $500,000. But in 2012, 23 of the 69 top executives at TARP recipients had cash salaries exceeding that level, a number that has quadrupled since 2009, the report said. And 94 percent received cash compensation of $450,000 or more.

Romero said in one situation, the Treasury approved a pay raise of $50,000 for one GM employee because the company wanted to “do a little extra for him.”

“This shows the complete lack of appreciation that GM has for the fact that they’re owned by taxpayers, and that Americans are in tight budgets and don’t have any extra” funds, she said.

In another case, the pay czar approved a $200,000 pay raise for an employee of Residential Capital LLC, the bankrupt mortgage lending unit of Ally, despite knowing the unit was about to go bankrupt.

In response to the report, GM and Ally Financial both said they have complied with all TARP restrictions. Ally said it was focused on repaying all remaining Treasury funds.

Romero said the government’s pay curbs were unlikely to have a lasting impact.

The report found it likely AIG will return to its “past practices” in setting high executive compensation now that it has repaid the government’s TARP funds.

“The responsibility shifts to the Federal Reserve Board to ensure that AIG does not encourage excessive risk-taking through compensation,” the report said.

AIG spokesman Jon Diat said the company is currently examining what portion of total employee pay should be tied to incentives, reflecting “our absolute commitment to pay for performance in a post-TARP environment.”

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Monsanto $93 Million Settlement with West Virginia Residents Approved

A judge has given final approval to a settlement between chemical manufacturer Monsanto Co. and thousands of West Virginia residents over pollution claims.

Circuit Judge Derek Swope in Putnam County approved the settlement in a 385-page order.

A $93 million settlement was reached last February with residents who said Monsanto polluted their community by burning waste from production of the defoliant Agent Orange.

St. Louis-based Monsanto had agreed to pay up to $84 million for medical monitoring and $9 million to clean up 4,500 homes. Monsanto also agreed to pay legal fees.

The litigation began with a lawsuit by plant workers in the mid-1980s. Cases involving current and former residents were consolidated into a class-action lawsuit in 2008.

Swope dismissed objections to the settlement, calling it an “all or nothing” approval. Some class members had argued the settlement wasn’t fair and reasonable.

“Any objection that asserts that the settlements could have been better must be rejected because the question is not whether the actual settlements could have been better, but whether the actual settlements are fair, adequate, and reasonable,” Swope wrote.

The Monsanto plant in Nitro produced herbicides, rubber products and other chemicals. The plant’s production of the defoliant Agent Orange created dioxin as a toxic chemical byproduct.

Dioxin has been linked to cancer, birth defects, learning disabilities, endometriosis, infertility and suppressed immune functions. It builds up in tissue over time, so even small exposures can accumulate to dangerous levels.

The Nitro plant closed in 2004.

Swope, a Mercer County circuit judge, was appointed by the state Supreme Court to preside in the case when Putnam County Circuit Judge O.C. Spaulding stepped aside after being diagnosed with ALS, or Lou Gehrig’s disease.

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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State Farm Homeownes Rate Increase Denied in Louisiana

Louisiana Insurance Commissioner Jim Donelon has declined to approve a recent homeowners rate request filed by State Farm Fire and Casualty Co. (State Farm).

State Farm submitted the request for the +16.6 percent rate increase to its homeowners program in November 2012. The filed rate revision would have affected more than 300,000 policyholders and provided an estimated $71,297,954 in additional premiums to the company.

Rate filing requests are reviewed by the Louisiana Department of Insurance within a 45-day time period.nCommissioner Donelon said that after an extensive review of the filing the rate revision was determined to not be actuarially justified.

“There were a number of variables factoring into the decision to deny this request and the actuarial support was lacking prompting concerns regarding the magnitude of the profit provision,” said Donelon. “Additionally, State Farm’s trend selections did not appear in line with actuarial data and that raised additional questions.”

The company’s last rate request of +7.8 percent was implemented on Feb. 15, 2012, after its initial rate request of +14.3 percent was declined.

State Farm Fire and Casualty Co. is the largest homeowners policy provider in the state and as of December 2012 had a market share of 28 percent of all Louisiana homeowners policies.

Source: Louisiana Department of Insurance

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Lockton Companies Forms Kansas City Benefits Analytics Team

Lockton Companies Kansas City is pleased to announce its new benefits analytics team, which specializes in data driven solutions and strategic planning for Lockton’s health and welfare clients.

The benefits analytics team includes:

Sarah Osborne, assistant vice president, benefits analytics manager. Osborne has more than 10 years of experience in the benefits industry as an actuary, and has been a healthcare actuary at Lockton for more than two years.Mick Conrad, assistant vice president, benefits financial analyst. Conrad has more than 15 years of experience in the benefits industry, and was previously an account manager at Lockton.David Harden, benefits financial analyst. Harden was previously a senior financial analyst for Lockton.Kenny Shear, benefits financial analyst, has recently joined Lockton Companies. He was previously a senior underwriter for more than seven years at Coventry Health Care.Meghan Rausch, actuarial assistant, was previously a pharmacy analyst at Lockton before becoming an actuarial assistant.

Source: Lockton

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Oklahoma Insurance Department Creates Anti-Fraud Advisory Board

Oklahoma Insurance Commissioner John D. Doak announced the creation of an advisory board to increase the effectiveness of the Oklahoma Insurance Department’s Anti-Fraud Unit. The board includes four legislators, a county undersheriff, a police chief and two professors of criminal justice.

The board includes: Sen. Bill Brown, R – Broken Arrow, Rep. Dan Kirby, R – Tulsa, Rep. Mike Christian, R – Oklahoma City, Rep. John Bennett, R – Sallisaw, Thom Parr, Criminal Justice Professor at East Central University and CLEET instructor, Dr. Robert Scott, Dean of College of Education and Technology at Fort Hays State University, Tulsa County Undersheriff Tim Albin and Miami Chief of Police George Haralson.

The advisory board, along with OID Anti-Fraud Director Michael Copeland and Deputy Commissioner Owen Laughlin, will meet twice a year to discuss Oklahoma Insurance Department investigations that resulted in criminal charges, offer suggestions and collaborate on statewide efforts. The Anti-Fraud Advisory Board will hold its first meeting later this year.

Source: Oklahoma Insurance Department

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Judge OKs Dewey & LeBoeuf Plan to Shred Old Client Files

A judge on Friday, Jan. 25, approved a plan by bankrupt law firm Dewey & LeBoeuf to foot some of the cost of destroying old client files, a bill that could ultimately reach almost $1.4 million.

In a written order in U.S. Bankruptcy Court in Manhattan, Judge Martin Glenn green-lighted Dewey’s plan to chip in about $4 per box to help destroy an estimated 345,000 boxes of old records, some dating back to the 1930s.

The fate of Dewey’s old files has become an intriguing sub-plot in the unwinding of a once-proud firm that employed 1,000 lawyers in 26 worldwide offices at its height.

Dewey, now liquidating, filed the largest-ever bankruptcy by a U.S. law firm in May. In October it reached a $71.5 million settlement with former partners to help pay back about $260 million owed to secured creditors.

The question of how to destroy files that go unclaimed by former clients has framed a difficult legal issue, pitting Dewey’s fiduciary responsibility to creditors against its ethical duty to clients.

Bankrupt entities have an obligation to creditors to save as much money as possible to maximize payouts. But law firms also owe it to clients to preserve the privacy of their information.

Dewey and several storage companies that hold its files, including Iron Mountain Inc and Citystorage LLC, had been haggling for months over the cost of shredding. Earlier this month, the defunct law firm announced a plan to chip in about $4 per box, a figure that would come to $1.38 million if all roughly 345,000 boxes are ultimately destroyed.

There is no law governing the destruction of client files for liquidating firms, which has made the issue controversial in many law firm bankruptcies. The deal hammered out in Dewey’s case appears consistent with others in the past, including the $5-per-box price that law firm Dreier agreed to pay warehouses after its 2008 bankruptcy.

The case is In re Dewey & LeBoeuf, U.S. Bankruptcy Court, Southern District of New York, No. 12-12321.

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Senate Passes $50 Billion Sandy Aid Package; Bill Goes to Obama

A long-delayed $50.5 billion aid package for victims of Superstorm Sandy cleared the Senate on Monday, three months after the storm destroyed or damaged hundreds of thousands of homes and businesses in coastal New York, New Jersey and Connecticut.

The package, approved 62-36 in the Democratic-controlled Senate, now goes to President Barack Obama to be signed into law. Added to flood insurance legislation passed by Congress earlier this month, it brings Sandy aid appropriations to $60.2 billion.

All the opposing lawmakers were Republicans. But nine Republicans joined Democrats in voting yes to narrowly cross the 60-vote threshold required for passage.

The Senate also defeated a Republican amendment that sought to offset the Sandy aid with cuts to discretionary spending spread over the next nine years.

The vote was delayed last week as Senate leaders wrangled over new rules aimed at limiting procedural roadblocks known as filibusters.

Sandy’s victims “have been waiting for three months for their federal government to step up and help them rebuild their lives and rebuild their livelihoods,” said Appropriations Committee Chairwoman Barbara Mikulski of Maryland. “They have been waiting and waiting.”

The package will provide $10 billion to repair public transport infrastructure, $5.3 billion to replenish the Federal Emergency Management Agency’s disaster relief fund and $16 billion in Community Development Block Grant funding – money to be used by municipalities largely to rebuild homes and businesses.

“This bill meets the current needs of the recovery efforts,” Mikulski said.

The Sandy aid package became ensnared in a bitter partisan battle over deficit reduction. Many Republicans saw it as an opportunity to take a stand against a big spending increase after being forced to swallow tax hikes on the wealthy as part of the New Year’s deal to avert the “fiscal cliff.”

Republican Senator Mike Lee of Utah tried to rein in the Sandy package by seeking to offset the costs with a 0.5-percentage-point reduction in annual discretionary spending.

He said senators owed it to Americans to consider how the disaster spending might impair U.S. ability to fund other programs such as defense or healthcare.

“We have to stop and consider the fact that we are more than $16 trillion in debt and we’re adding to that debt at a rate of more than $1 trillion every single year,” Lee said.

His amendment was defeated 62-35 in another party-line split.

Conservative groups, including the Club for Growth and the Heritage Foundation, had urged senators to vote against the package without any offsets, saying it was filled with “pork.”

The Republican-controlled House of Representatives passed the $50.5 billion package on Jan. 15 – largely with Democratic votes – after shaving off about $160 million and preventing any funds from being diverted to disasters in other states.

House Speaker John Boehner enraged East Coast politicians on Jan. 1 by canceling a previously scheduled vote on Sandy emergency funds. The storm wiped out many New Jersey and New York shore communities and flooded lower Manhattan transit tunnels on Oct. 29.

Since then, Congress has approved $9.7 billion to shore up the National Flood Insurance program to allow it to continue paying the Sandy-related claims of homeowners who bought flood insurance.

The $60.2 billion in aid is short of the $82 billion initially requested by New York, New Jersey and Connecticut.

The legislative delays marked a stark contrast with the congressional response to Hurricane Katrina, which devastated Gulf Coast communities and flooded New Orleans in 2005.

Within 10 days of that storm, Congress had approved $62.3 billion in aid. Subsequent measures brought total taxpayer funds to rebuild the region to more than $100 billion.

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Missouri Insurance Department Returns Nearly $11M to Consumers in 2012

Consumers who filed complaints with the Missouri Department of Insurance received nearly $11 million in additional claim payments from their insurance companies in 2012, the department reported.

Health insurance generated the most complaints from consumers, followed by auto and homeowners. The most common reasons for complaints were denial of claims, claim delays and unsatisfactory offers.

Some notable accomplishments from the past three months:

A northwest Missouri couple contacted the department because their health insurance claims weren’t being paid. The couple was told by their insurance company that their policy was a limited benefit plan, even though their agent told them it was a comprehensive major-medical policy when they bought it. The insurance company has agreed to pay out more than $200,000 since the department became involved, far above the coverage limits in the policy.A Franklin County man contacted the department after he was having claim payment issues with his motor vehicle extended service contract provider. The man had been without his vehicle for five months after he took it in for service because the engine was smoking. Once the department became involved, the company agreed to pay $3,000, the maximum amount under the terms of the contract, to have his vehicle repaired.A Boone County man filed a complaint regarding a claim delay on stolen property. When the department became involved, the company resolved the issue and paid nearly $59,000.

In 2012, the department handled 3,851 formal complaints, while answering questions from 9,240 consumers in writing and more than 22,000 over the telephone. The top categories of complaints were:

Delay of claim processing (631)

The department’s Market Conduct Section returned nearly $2.4 million to consumers, health care providers and the state as a result of exams and investigations in 2012. Enforcement actions against insurance companies resulted in nearly $5.1 million in fines paid.

Market conduct exams and investigations aim determine whether insurance companies are complying with state law in their treatment of customers, including the rates being charged and the way claims are handled. Exams can result in refunds for consumers, fines for companies, changes in business practices and other remedies.

Since 2009, market conduct enforcement actions have generated nearly $13.1 million in payments from insurance companies. The money goes toward refunds for consumers, general revenue and the State School Fund.

Source: Missouri Department of Insurance

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Airbus’ Presentation Warned Airlines of Lithium Battery Risks a Year Ago

Airbus warned the airline industry of risks related to lithium batteries almost a year before two safety incidents grounded 787 Dreamliners built by its chief rival Boeing, according to a presentation seen by Reuters.

The European plane maker spelled out lithium hazards at a forum of airline customers in March 2012, citing the risk of flames, explosion, smoke and leakage in the event of a so-called thermal runaway or uncontrolled battery overheating.

“The risks associated to lithium batteries require the attention of the entire industry,” according to slides of the presentation by Christine Bezard, flight safety leader of the planned Airbus A350 plane that will also use lithium batteries.

U.S. and Japanese authorities are investigating a battery fire and a smoke incident on two separate Dreamliners in recent weeks, with attention focused on their lithium-ion battery power units.

Airbus, which plans to use lithium-ion batteries on its A350 jetliner, declined to comment on the presentation. Both Airbus and Boeing say their designs are safe.

Lithium-ion batteries are widely used in smart phones and hybrid vehicles because they are lighter, smaller and more powerful than traditional nickel or lead-acid batteries. But if managed improperly, lithium-ion batteries can also explode, with some posing a greater fire risk than others based on their chemical makeup.

Last year’s Airbus presentation covered consumer products carried in the cabin or stored as baggage, as well as batteries used in emergency devices such as flashlights and beacons or, in a slide showing the A350, system batteries built into aircraft.

It said that the fire extinguishing gas Halon 1301 is effective in controlling open flames and the spread of fire in lithium-ion and lithium-polymer batteries and that water can stop the propagation of thermal runaway in a cargo shipment.

It did not say whether fire suppression systems would be installed with the main batteries on the A350, but industry sources say the design calls for hazardous fumes to be vented.

The lack of a fire suppression system on the Boeing 787 is one of the issues being examined by the National Transportation Safety Board as it investigates the Boston Logan fire. The battery housing is designed to contain any fire.

The 787 is the first passenger jet to use lithium-ion batteries for back-up and auxiliary power.

Airbus declined to comment on the design of the A350 battery, supplied by French company Saft, which has said it will not comment on the A350, referring questions to Airbus.

“Airbus will carefully study recommendations that come out of the 787 investigation and evaluate whether they apply to the A350,” Airbus spokesman Stefan Schaffrath said by email.

Besides the NTSB investigation, the Federal Aviation Administration is conducting a design review of the 787.

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Texas Medical Liability Trust to Provide Free EPL Coverage to Policyholders

Texas Medical Liability Trust (TMLT) announced that on Feb. 1, 2013, employment practices liability insurance (EPLI) will be added to all TMLT policies at no extra premium.

EPLI covers lawsuits caused by several employment-related events, including harassment, discrimination, FMLA violations, hostile work environment, and wrongful termination.

Limits of liability are $50,000 per claim (including both defense costs and indemnity payments) with a $5,000 deductible. The yearly aggregate limit is also $50,000. Higher limits are available for purchase.

TMLT serves more than 16,000 Texas Medical Association (TMA) member physicians. Rated A (Excellent) by A.M. Best Co., the Trust was created and is endorsed by TMA. TMLT is headquartered in Austin, Texas.

Source: TMLT

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Bowers Joins Florida’s Bass Underwriters as Senior VP Personal Lines

Plantation, Florida-based wholesale insurance broker Bass Underwriters hired Bruce E. Bowers as senior vice president for personal lines. Bowers will be responsible for new product development and the launching of personal lines products on a nationwide basis. Particular emphasis will be placed on online, highly automated products.

Bowers is an insurance industry veteran with 30 years of experience with a national insurance broker. He was formerly with Hull & Co. and its online personal lines platform, National Risk Solutions. He is a past president of the Florida Surplus Lines Association.

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Insurers Say Latest CFA Study Is Flawed; Marketplace Is Highly Competitive

The new auto insurance pricing study from the Consumer Federation of America (CFA) is getting roundly criticized by insurance industry representatives.

The representatives say that states’ auto insurance marketplaces are highly competitive, with most drivers having dozens of auto insurers competing for their business.

The study — released Monday by the Washington, D.C.-based consumer advocacy group CFA — has been getting wide media coverage. The report has been cited in a number of major news outlets since yesterday including the New York Times, CBS News and Forbes.

The CFA report looked at the five largest auto insurers in the country — State Farm, Allstate, GEICO, Farmers, and Progressive — and argued that these insurers, with the sole exception of State Farm, routinely use “non-driving-related” factors such as income level and education in their pricing decisions. The consumer group alleged that this practice can often result in safe drivers with good driving records paying higher premiums.

The study also cited what it described as wide price discrepancies in premiums quoted for drivers with similar records and said the auto insurance marketplace is “highly uncompetitive.”

The study used two hypothetical drivers — an “executive” and a “receptionist” — and sought insurance quotes in 12 cities using websites of the five largest auto insurers. The cities included in the study were Baltimore, Washington, D.C., Atlanta, Tampa, Cleveland, Chicago, St. Louis, Denver, Houston, Phoenix, Los Angeles and Seattle.

I.I.I.: Auto Insurance Expenditures Continue to Drop

In responding to the CFA study, the Insurance Information Institute commented that most drivers have dozens of auto insurers constantly competing for their business. “The price is risk-based, and always will be,” said Dr. Steven Weisbart, a senior vice president and chief economist at the I.I.I.

The I.I.I. said the National Association of Insurance Commissioners found that the typical U.S. motorist had seen his or her annual auto insurance expenditures drop to $791.22 in 2010, more than 3 percent less than they were paying in 2006 ($817.99), according to the NAIC’s 2009/2010 auto insurance database report.

The Institute also said that state insurance regulators already review and approve various rating criteria (e.g., a driver’s age, gender and, in some instances, credit-based insurance scores, and education and occupation) that auto insurers are allowed to employ when pricing a prospective or current policyholder’s policy.

Auto insurance policyholders also have a degree of control over the price they pay for coverage, the I.I.I. said, since the premium is determined in part by their driving record, the type of car they drive and the miles they drive each year. These rate-setting variables were downplayed in the CFA analysis, the I.I.I. said.

“As anyone who watches television commercials knows, auto insurance coverage is widely available in every U.S. state. And competitive marketplaces drive down prices. Drivers should shop around if they feel as though their current auto insurer is not meeting their needs, or is charging too high a price,” said Dr. Weisbart.

Further, the I.I.I. said many consumers are volunteering to have telematic devices placed in their vehicles. These usage-based programs give drivers a financial incentive to drive less and, depending on the information that is monitored, to drive more carefully.

NAMIC: CFA’s ‘Report’ Is Not a Report

The National Association of Mutual Insurance Companies (NAMIC) had even harsher words for the CFA’s findings, suggesting what the consumer group published shouldn’t even qualify as a report.

“CFA’s ‘report’ is not a report; it’s a press release,” said Robert Detlefsen, vice president of public policy at NAMIC.

“A report that describes research findings should contain, at minimum, a detailed description of the research methodology that was used, including an acknowledgement of any limitations that could influence the findings. CFA’s press release provides none of this.”

Detlefsen argued that CFA erroneously suggests what it calls “non-driving-related” rating factors are not predictive of risk. “The only evidence it offers for this assertion is a public opinion survey. CFA simply assumes that the only relevant risk factors are those involving accident history. CFA’s entire critique is based on this one false assumption,” he said.

Detlefsen pointed out that CFA makes no attempt to determine the relative weight the five insurers in its study assigned to the various risk factors cited.

“For example, the fact that its imaginary ‘receptionist’ had been without insurance coverage for 45 days may explain much of the variation in the quotes that CFA says it obtained,” he said.

One way to test this would be to perform a series of experiments in which the receptionist and the executive are given different mixes of risk variables, Detlefsen said. “For example, what would the quotes look like if the ‘executive’ had been without coverage for 45 days, while the ‘receptionist’ had continuous coverage?”

“When pressed by a reporter about the report’s lack of methodological rigor, CFA replied that its work had been ‘labor intensive,’ suggesting that CFA would be incapable of doing a proper study. Such a response underscores CFA’s lack of credibility,” NAMIC’s Detlefsen said.

Detlefsen also argued that CFA limited its inquiry to just five companies, aiming most of its criticism at four of them and ignoring the fact that dozens of insurers compete in the 12 cities it focused on.

Progressive: ‘We Work to Price Accurately’

When asked for comment, Progressive spokesperson Jeff Sibel told Insurance Journal that the company works “to price each driver’s policy as accurately as possible, so that every driver pays the appropriate amount based on his or her risk of having an accident.”

“We use multiple rating factors, which sometimes include non-driving factors that have been proven to be predictive of a person’s likelihood of being involved in a crash,” Sibel said.

He added that there are ways for consumers to take their insurance rates into their own hands by utilizing tools like usage-based insurance.

“For example, our usage based insurance program, Snapshot, is a voluntary program available in 43 states and Washington D.C. It gives customers more control over their car insurance costs by offering personalized discounts based on their actual driving behavior,” the spokesperson said.

“In our Snapshot program we’ve found that actual driving behavior is the leading variable in predicting a driver’s risk. Behaviors that Snapshot measures includes the time of day you’re driving, the amount of miles you drive and how many hard brakes you make.”

State Farm, Allstate and Farmers declined to comment on the CFA study and directed media inquiries to the I.I.I.’s response. GEICO could not immediately be reached for comment.

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Chevron Paid $10M In Northern California Refinery Blaze

Chevron Corp. has paid $10 million in claims stemming from the Aug. 6 crude unit fire at its 245,000-barrels-per-day refinery in Richmond, Calif., the company said.

So far, 23,900 claims have been made due to the blaze that sent a smoke column over San Francisco Bay, according to a letter Chevron sent on Monday to the Contra Costa County Hazardous Materials Program, a local health department.

At least 15,000 people complaining of respiratory problems went to area hospitals in the hours and days after the fire broke out.

In addition to individuals, Chevron said it had paid compensation to area hospitals, city of Richmond agencies and the Contra Costa County Hazardous Materials Program. The compensation to the hospitals and government agencies is for costs incurred in responding to the fire.

The company disclosed the figures in updating the progress of an internal investigation into the fire.

The crude unit, which carries out the initial refining of crude oil coming into the refinery and provides feedstock for all other units, has remained shut since the blaze.

Chevron has said that because of the shut unit, motor fuel output at the refinery has been at least halved, with other production units operating on feedstock the company has bought.

Chevron is repairing the unit and expects to restore full production in the first quarter of this year, the company has said.

The U.S. Chemical Safety Board and the California Division of Occupational Safety and Health are also investigating the fire.

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Trial Under Way In Southern California Hip Joint Replacement Suit

A lawsuit that accuses Johnson & Johnson of knowingly marketing a faulty hip implant that lawyers say left thousands of people with crippling problems or in need of replacement surgeries is underway.

The fraud and negligence suit is the first of thousands of similar cases to reach trial in the United States that involve an all-metal ball-and-socket hip joint that was pulled from the market two years ago.

A California jury on Friday heard from a lawyer for plaintiff Loren Kransky, who showed jurors pictures from a surgery in which black material could be seen in the patient’s hip socket. Attorney Michael Kelly said the material was from pieces of metal that had flaked off of the implant.

Kelly also played a segment of a doctor’s audio deposition in which he said he feared that if the material wasn’t removed, Kransky would have died. The pieces of metal were causing a form of metal poisoning, he said.

Kransky, a former North Dakota prison guard, sought hip replacement to relieve arthritic pain. He received the implant in 2007 and has since has had it replaced. He listened to opening statements Friday from a front row seat.

A lawyer for Johnson & Johnson’s subsidiary, DePuy Orthopedics Inc., which manufactured the metal implant, said Friday that the 64-year-old Kransky had many pre-existing medical ailments. Attorney Alexander Calfo presented a list of 16 major diseases, including kidney cancer, diabetes, high blood pressure and vascular disease as well as exposure to Agent Orange during the Vietnam War.

“Mr. Kransky did not get worse because of the (implant) and did not get better when it was removed,” he said.

He added: “Hip surgery is not perfect. No material to this very day has proven to be perfect.”

Calfo said the metal implant had been designed to improve on plastic and ceramic implants.

The artificial hip socket was sold for eight years to some 35,000 people in the U.S. and more than 90,000 people worldwide. New Brunswick, N.J.-based Johnson & Johnson stopped making the product in 2009 and recalled it the next year.

However, documents unsealed in the court case last week indicated that Johnson & Johnson officials were aware of problems with the device at least as far back as 2008.

Also, according to a deposition from a DePuy official, a 2011 company review of a patient registry concluded that more than one-third of the implants were expected to fail within five years of their implantation.

Johnson & Johnson has put aside around $1 billion to deal with the costs of the recall and lawsuits.

Last year, British experts at the world’s biggest artificial joint registry said doctors should stop using metal-on-metal hip replacements after a study found that, after five years, about 6 percent of people who had used them needed surgery to fix or replace them.

That compares with just 1.7 to 2.3 percent of people who had ceramic or plastic joints.

Kelly said he will ask the jury to assess punitive damages at the end of the trial “to send a message to the defendants who failed to share with doctors what they knew.”

He said that when DePuy Orthopedics learned the device they manufactured might be defective, “They acted in a manner that was indifferent.”

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Dryad Maritime Expands With New UK Office

Dryad Maritime – a commercial specialist in maritime intelligence in the UK- has opened a new office development in Hastings, UK. The move is the next phase in a major program of expansion and comes as Dryad looks to harness growth opportunities.

The expansion marks Dryad’s plan to extend the provision of its global maritime intelligence services.

The new facility was officially opened in December to house the growing technical support and software development teams while offering additional provision to Dryad’s expanding customer base. These teams will continue developing new features for Dryad’s intelligence handling technology, a system designed to improve the Safety of Life at Sea (SOLAS) through improved maritime domain awareness.

The new site also acts as a secondary back-up center for Dryad. Dryad Maritime is a specialist maritime intelligence company helping seafarers to quantify, mitigate and manage the threats from piracy, terrorism and other waterborne threat and crime.

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Fraud Concerns Linger Over Illinois Driver License Law

As Illinois becomes the fourth and most populous U.S. state to issue driver’s licenses to illegal immigrants, nagging concerns remain about whether there are enough safeguards to avoid the identity fraud and other pitfalls faced by other states with similar laws.

Democratic Gov. Pat Quinn signed Illinois’ measure into law on Jan. 27 in Chicago. Backers, including Quinn, Chicago Mayor Rahm Emanuel and some of the state’s top Republicans, tout it as a public-safety measure. They argue that required facial recognition technology is reliable enough to prevent fraud.

They hailed it as an important step for immigrant rights in Illinois, which approved its own Dream Act in 2010 to create a privately-funded scholarship program for immigrant students. President Barack Obama plans to discuss his plan to overhaul the immigration system during a trip to Las Vegas on today.

“This was a bi-partisan effort to pass an important law,” Quinn said. “The president can say about his home state of Illinois … we not only passed the Dream Act last year, we passed driver’s licenses for those who are undocumented.”

However, the law’s opponents have pointed to hundreds of fraudulent cases in New Mexico, Washington state and Utah after those states began giving illegal immigrants permission to drive. Illinois will not require applicants to be fingerprinted, for fear that would discourage immigrants from applying.

“How many people would apply for this document knowing that fingerprints will be going to (federal authorities)? Probably not all that many,” said Fred Tsao, policy director of the Illinois Coalition for Immigrant and Refugee Rights, a driving-force behind the measure.

Proponents say it will allow an estimated 250,000 people unlawfully residing in the state to apply for a three-year temporary driver’s license and require them to get training and insurance. The Illinois secretary of state’s office said the licenses will be available starting in October.

Those ready for the change include 45-year-old Victoria Chavez.

“I need to get my driver’s license because I have two kids,” the Chicago woman said. “They need my support. This is a victory for all of us in the immigrant community.”

The licenses will be like those already issued to certain foreign-born, legal visitors. Under the new law, applicants will be photographed at a driver services facility, and their photo will be entered into the state’s facial recognition database – like the rest of Illinois’ licensed drivers – to verify their identity.

But the other states’ driving programs for illegal immigrants have been abused. New Mexico and Washington state both issue licenses, while Utah issues a permit.

An Associated Press investigation last year found a striking pattern in New Mexico, suggesting immigrants tried to game the system to obtain a license. In one instance, 48 foreign-born individuals claimed to live at a smoke shop in Albuquerque to fulfill a state residency condition. New Mexico does not have a fingerprinting requirement, although it asks applicants to show two proofs of state residency.

Authorities also busted a fraud ring last year that forged documents for illegal immigrants to use after driving from as far as Illinois and North Carolina to obtain a New Mexico license. Gov. Susana Martinez has vowed for years to repeal the decade-old measure, but the legislature has repeatedly rejected such efforts.

Washington state’s requirements attracted national attention when Jose Antonio Vargas, a Pulitzer Prize-winning journalist and then-Washington license-holder, revealed his illegal immigration status in an essay for the New York Times Magazine in 2011. Vargas chronicled how he obtained his license. State authorities conducted an investigation that revealed Vargas did not reside at the address he stated in his application, and canceled his license a month after his essay was published.

Utah issues three different driving privilege cards: one for U.S. citizens and permanent residents, another for legal visitors, and a third for illegal immigrants. Utah’s permit for illegal immigrants is not valid for identification. Illinois’ law will follow suit.

Utah’s Republican-controlled legislature amended the state’s law in 2011 to require illegal immigrants to be fingerprinted, and mandates that the state notify U.S. Immigration and Customs Enforcement if an applicant’s fingerprint check yields a felony on record. If the individual applying has a misdemeanor warrant outstanding, the state must notify the agency that is seeking the person’s arrest.

That kind of information-sharing between state and immigration authorities worries Illinois’ immigrant-rights advocates, like Tsao, who pushed for the legislation without a fingerprinting requirement. They say fingerprinting could deter potential licensees from applying for fear of being identified and deported.

Local law enforcement officials argue in favor of fingerprinting.

“We could see if they have committed a crime; it could be a crime in another state or it could be a crime in their home country,” said John Kennedy, executive director of the Illinois Association of Chiefs of Police.

The Illinois secretary of state’s office has vehemently defended its facial recognition database as highly sophisticated and accurate. The program uses an algorithm to match more than a dozen facial features that are not easy to alter, such as eye sockets and sides of the mouth.

“The integrity of our driver’s license system is a priority,” said Henry Haupt, a spokesman for the office.

The bill’s sponsor, Rep. Edward Acevedo, a Chicago Democrat, said state roads will be safer because illegal immigrants will receive training and be tested before obtaining a license. They also will be required to purchase insurance, an aspect that would save millions for currently insured drivers, Acevedo said.

Tsao’s organization estimates uninsured illegal immigrant drivers cause $64 million in damage claims each year, an expense currently covered by increased premiums.

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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SEC Immune from Investors’ Suit Over Madoff, Says Appeals Court

Investors who said they lost money in Bernard Madoff’s fraud may not pursue a lawsuit against the U.S. Securities and Exchange Commission for missing the swindler’s Ponzi scheme, a federal appeals court said on Monday.

The 9th U.S. Circuit Court of Appeals in Pasadena, California said a federal district judge correctly dismissed their lawsuit seeking to hold the SEC responsible under the Federal Tort Claims Act.

Citing a 2009 report by the regulator’s inspector general, investors led by Dichter-Mad Family Partners LLP in Florida said they would not have invested with Madoff had the regulator availed itself of “multiple opportunities” to stop the fraud.

They said they instead relied on the regulator’s “implied stamp of approval” prior to investing, and sought to recover losses they attributed to SEC negligence.

But the 9th Circuit in an unsigned order said the plaintiffs’ claims fell within the regulator’s “discretionary functions,” depriving courts of jurisdiction to hear the appeal.

“I respectfully disagree with the decision, and intend to seek further appellate review,” Richard Gordon, a lawyer who is one of the plaintiffs and argued the appeal, said in a telephone interview.

SEC spokesman John Nester said in an email: “The decision speaks for itself.”

Monday’s order upheld an April 2010 ruling by U.S. District Judge Stephen Wilson in Los Angeles.

In April 2011, a Manhattan federal judge dismissed a similar lawsuit by two other Madoff investors.

An exhaustive August 2009 report by SEC Inspector General David Kotz outlined how the regulator failed to uncover Madoff’s fraud by missing many red flags, disregarding tips, and failing to follow up properly on leads.

Madoff, 74, pleaded guilty in March 2009 and is serving a 150-year prison sentence.

The case is Dichter-Mad Family Partners LLP et al v. U.S., 9th U.S. Circuit Court of Appeals, No. 11-55577.

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Admiral Mullen to Address Insurance Group

Retired U.S. Navy Admiral Mike Mullen will address an insurance audience in May, offering his view that the country’s financial health is directly tied to its national security.

According to the group, the Target Markets Program Administrators Association (TMPAA), Mullen will discuss the threats that the U.S. faces, including its vulnerability to cyber attacks that could affect business and the nation’s infrastructure. Mullen was America’s top military advisor through two administrations.

“One of our missions is to educate and inform our members about matters that will impact their operations. Admiral Mullen’s unique insight on these issues will provide our group with important information about the security of our businesses and data,” said David Springer, TMPAA president.

TMPAA’s meeting is scheduled for May 6-8 in Baltimore.

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Florida Marks I-75 Crash Anniversary; Tragedy Triggers Safety Measures, Lawsuits

The pre-dawn traffic moved fast on Interstate 75 through Paynes Prairie Preserve State Park outside Gainesville. The highway had been closed for hours after thick fog combined with smoke from a nearby wildfire reduced visibility to near zero, but now it was clear. Until it wasn’t.

On both sides of the highway, some cars and trucks stopped as the returning fog and smoke quickly swallowed the night. Those behind them didn’t. There were collisions. There were explosions. Eleven people died and two dozen were hurt in six crashes involving 24 vehicles a year ago Tuesday in one of worst highway tragedies in Florida history.

In the months since, several survivors have filed notice they plan to file negligence lawsuits against the state and blame has been assigned and deflected. The state has taken some safety measures and others are planned. But whether the state has done enough to prevent future tragedies is unclear.

Paynes Prairie is a low-lying, poorly lit stretch of I-75, which runs the length of Florida from Miami-Dade County into Georgia. Heavy fog and smoke had forced its closure early last Jan. 29, but by about 3 a.m. there was enough visibility that the Florida Highway Patrol was debating whether to reopen it. A sergeant objected, saying that if the visibility again dropped there wouldn’t be time to reclose the highway. But a lieutenant, with support from state forestry and transportation officials, overruled him, citing the danger of drivers taking unfamiliar back roads in the darkness. Within 15 minutes, the sergeant’s fears were realized.

“I could see perfect, one second later, it’s like walking into a blank, to a white blanket that you can’t see nothing,” trucker Hector Rodriguez told a FHP investigator after his stopped semi was struck multiple times. “I started hearing people, you know, something banging on the back of the truck. All these accidents bang, everybody bang, like seconds behind each other.”

People screamed for help in the darkness, the only light coming from burning cars. When reporters toured the scene hours later, twisted, burned-out vehicles were scattered across the pavement, with smoke still rising from the wreckage.

A Florida Department of Law Enforcement report issued last April primarily blamed the FHP. It said the lieutenant who ordered the road reopened had no formal training in procedures for reopening roads.

The FHP responded to the report in August, defending its actions. “Even if each of the recommendations made by the FDLE in its incident review were to have been present or occurred that night, it is probable the same decision would have been reached,” it said.

It also put a lot of the blame on the drivers, saying “No amount of planning or policy will take the place of driver reaction to low visibility and unpredictable conditions.”

Since the accident, the FHP and other state agencies have instituted new safety measures, but even stronger initiatives are still in the planning stages and are at least a year away from being implemented.

Among those the FHP has already implemented:

 It reviewed all of its relevant policies governing road closures and a watch supervisor in each troop is now responsible for the oversight of all significant incidents. It trained more than 6,000 sworn Florida Turnpike Enterprise radio communications members and reserve troopers on road closure procedures and protocols. It will now conduct an annual review its road closure protocols with the Florida Forest Service. It is conducting a public awareness campaign on driving in the smoke and fog, featuring billboards in four cities.

“The Florida Highway Patrol updated its policies, annual training for troopers and guidelines to ensure the most effective response to smoke/fog incidents on Florida highways,” FHP spokeswoman Nancy Rasmussen wrote in a statement to The Associated Press. “Our continued partnerships …assist us with providing information on decisions concerning roadway closures, which are made appropriately and on a case-by-case basis by on-scene personnel, based on their assessment of visibility, safety and other factors.”

The Florida Department of Transportation is spending $4 million to improve safety on the Paynes Prairie stretch of I-75, work that won’t be completed for at least a year.

There are already new programmable signs in each direction that can warn drivers of “Heavy Fog” or other dangers. In addition, FDOT spokesman Gina Busscher said closed-circuit TV cameras, located every mile from the south side of Paynes Prairie State Preserve to two miles north of the SR-222 interchange, have been in place since August.

Further improvements include more message signs, permanent closed-circuit cameras, vehicle detectors, visibility sensors, a fiber optic network to ensure reliable data transmission and infrared detection cameras. The federal government has recommended using closed-circuit TV monitoring for fog-prone roads for 20 years.

There are also plans for the same improvements on US -441, which runs parallel to I-75 through Paynes Prairie.

FDOT State Traffic Operations Engineer Mark Wilson wrote in a statement to The Associated Press that the changes will give the agency “the ability to detect traffic or weather concerns quickly, assess the issue and then quickly implement a response.”

Finding closure for the victims of last year’s crashes may not come as quickly, though.

Georgia attorney Bill Mitchell is representing 15-year-old Brazilian national Lidiane Carmo, one of 13 people who have notified the state of their intention to file a lawsuit relating to the crash.

She was riding in a church van and returning with her family to Marietta, Ga., from an Orlando conference when they were involved in the pileup.

The accident killed her father, Jose Carmo Jr., 43, the pastor at a church for Brazilian immigrants; her mother, Adrianna Carmo, 39; her sister, Leticia Carmo, 17; her uncle, Edson Carmo, 38; and her uncle’s fiancée, Roselia DeSilva, 41.

Lidiane, who was sleeping in her father’s lap, survived. She spent six weeks in the hospital recovering from several broken bones and internal injuries. She has been adopted by an uncle in Georgia and is back in school.

“If the state highway patrol would have done things different, this never would have happened,” Mitchell said. “One of the resolutions we’re seeking is making sure they’re putting things in place so this doesn’t happen again.”

Mitchell said that when Gov. Rick Scott visited accident victims or their families in the hospital days after the crash, he told them that the state “would do what is necessary to do what is right.” But now state officials are telling him and other lawyers to go ahead and sue, rejecting any negotiation overtures.

“We have had preliminary reports come out that say the State of Florida has had significant culpability. I’m surprised that their risk management has taken a different position. We’re not saying the state is 100 percent at fault, but given the findings and reports, they hold some culpability,” Mitchell said.

Scott said he met a lot of the families after the crash “and, your heart goes out to them. That crash was devastating. Unfortunately, that is in litigation right now, so you have to watch and see what happens in the litigation.”

Attorney Jack Adams is representing victims Juliana and Joilson Lima, who were also in a van returning to Georgia from the Orlando church conference. Both sustained major injuries in their crash, including face wounds and spinal damage.

“Physically, they are doing OK,” Adams said. “They had some pretty serious injuries…But I think in talking to all the people involved in this accident, it’s just an emotionally scarring thing for them…There were collisions, fires and explosions all over the place. It’s something out of nightmares.”

He said he isn’t surprised by the posture that state has taken.

The law regarding the state’s sovereign immunity was recently changed and is limited to no more than $200,000 per person and no more than $300,000 “per incident or occurrence” unless the Legislature and governor approve a waiver.

Adams said an argument could be made that each collision is a separate accident or that the entire pileup was one single incident.

“We’re still evaluating the possibility of filing the suit,” he said. “It’s such a complicated accident that nobody wants to do anything prematurely or jump in without understanding fully what happened.

“The state is a difficult party to bring a lawsuit against, and for good reason. But they’re also willing to accept liability when it’s their fault. Considering their decisions to open and close the roadways, it’s hard not to pin some blame for this accident on the state.”

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Massive Floods Hit Queensland, New So. Wales; 4 Dead, Thousands Evacuated

Massive summer floods killed four people and forced thousands of people to evacuate their homes across two Australian states on Tuesday, disrupting air and rail travel and coal production.

A deluge fed by ex-tropical cyclone Oswald dumped more than 200 millimeters (8 inches) of rain in some areas of the Queensland and New South Wales states over the past three days, swelling rivers and swamping towns.

The worst-hit areas were around Bundaberg, Rockhampton and Ipswich in the Sate of Queensland and around the northern New South Wales towns of Grafton and Lismore.

A fleet of 14 helicopters rescued more than 1,000 people across Queensland overnight and rescue efforts continued on Tuesday.

“Across Queensland the wild weather has broken a lot of hearts,” Australian Prime Minister Julia Gillard said.

Among the four people killed was a three-year old boy, who died in hospital after being hit by a falling tree as he and his mother watched floodwaters in parts of Brisbane, Australia’s third largest city.

In Bundaberg, one of the worst hit towns, more than 2,000 homes were swamped and 7,500 people evacuated. People clung to rooftops calling on passing boats to rescue them and television footage showed people being winched from floodwaters.

Brisbane residents have been warned to boil all drinking water as the city’s main water treatment plant had been shut, unable to cope with the torrent of muddy water flowing down stream and swelling the Brisbane River.

But the floodwaters have peaked much lower than similar floods in 2011, which inundated Brisbane, and cost more than A$6.6 billion (US$6.87 billion) to repair. The 2011 floods cut Australia’s gross domestic product by 0.5 of a percentage point, cutting coal production in Queensland by A$6 billion [US$6.25 billion] and cutting agricultural production by round A$1.9 billion [US$1.977 billion].

“It is far too early to be talking about the full financial impact,” Treasurer Wayne Swan told reporters in Queensland.

COAL, RAIL AFFECTED
The heavy rains inundated areas of Australia’s eastern coalfields, dumping up to 400 millimeters [16 inches] of rain on Queensland’s Bowen Basin, home to giant open pit mines owned by BHP Billiton, Mitsubishi Corp, Anglo American, Peabody Energy and others.

A levee bank surrounding the Middlemount open cut mine in the Bowen Basin was breached and water flowed into the mine, according to part owner Yancoal, with production likely to be affected for three weeks.

Transport group Aurizon Holdings Ltd was forced to shut parts of its rail operations that haul coal to the port of Gladstone, a key export terminal on the eastern seaboard.

Aurizon said its Moura and Blackwater networks, which link coal mines in the Bowen basin to two export terminals at Gladstone, remain closed due to the rain and floods.

“Aurizon cannot fully assess some locations because the rail line is still under water. However the current expectation is that the Moura and Blackwater systems will be re-opened within seven to 10 days,” the company said in a statement.

The floods were not expected to have a major impact on Australia’s sugar crop, which has avoided major damage.

Insurer Suncorp said it had already received 4,500 claims related to Queensland’s flooding and storm-related damage in Queensland, adding it was prepared for the financial impact.

The number of claims drove Suncorp’s stock down 2.0 percent, although the company said it had made provisions for natural hazard claims of A$520 million [US$541 million] for the 2013 fiscal year.

The Insurance Council of Australia said insurers had received 6,100 claims by early Tuesday, estimated to be worth A$72 million [US$75 million], although more claims were expected.

Airline Virgin Australia cancelled 20 flights along the east coast, while Qantas Airways said its schedule was returning to normal on Tuesday after all flights to Queensland’s Gold Coast were cancelled on Monday.

(Additional reporting by Jim Regan and Colin Packham in Sydney; Editing by Michael Perry)

By James Grubel CANBERRA, Jan 29 (Reuters) -

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P/C Insurers Better Positioned Than Life Firms for 2013: Moody’s

Both the life and property/casualty (P/C) insurance industries will be challenged in 2013 by slow economic growth that dampens sales and by evolving regulatory frameworks, according to Moody’s Investors Service in its 2013 outlook.

Although the industry sectors share some challenges, including the continuing weak global recovery, Moody’s says life insurers will be the most affected by a slow growth environment, given that their products are often discretionary purchases. Low interest rates will also weigh on life insurers’ margins.

Ongoing low interest rates and volatile equity markets will also accelerate life insurers’ retreat from guaranteed investment products, reducing sales in the short-term. But this retreat will result in improvements to the overall risk profile of the life industry in the years to come, says Moody’s.

Moody’s says P/C insurers are better positioned to withstand a slow growth environment, as many P/C products remain mandatory for buyers, and certain P/C risks are uncorrelated with economic conditions. In addition, in many markets and business lines P/C insurers are responding to these pressures by increasing premium rates, Moody’s says in its report.

For P/C insurers exposed to the U.S., Moody’s says losses from Superstorm Sandy will dominate fourth quarter earnings, although most residential-focused companies will still show a profit for the period, while those covering commercial or industrial risks could lose up to two quarters worth of earnings. The rating agency expects firms to react by augmenting catastrophe-modeling efforts with additional scenario analysis and stress testing.

Both sectors are also closely following solvency modernization initiatives that will have mixed implications for insurers, as regimes move toward more principles-based approaches with incentives for improved risk management, according to the rating agency. While broader risk management is positive for both life and P/C insurers, future solvency frameworks remain under construction. Moody’s believes 2013 should bring progress on key calibrations for EU insurers as regulators contemplate increasing capital requirements under Solvency II, and efforts in the U.S. gain momentum.

 Source:  Moody’s Investors Service

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ACE USA Expands Privacy Protection with Data Breach Fund Sidecar

ACE USA has introduced a new option for ACE privacy protection policyholders through enhancements to its data breach team endorsement. The new data breach fund sidecar endorsement eliminates tiered sub-limits and provides a single data breach fund limit, one that falls outside the policy’s liability limits for all data breach expenses. The ACE data breach team is a panel of independent legal, computer forensic, notification, call center, crisis communications, fraud consultation, credit monitoring, and identity restoration firms. Policyholders can now obtain both the ACE Data Breach Team and a single data breach expense limit, separate from the policy’s liability limit.

The ACE Data Breach Team, combined with one of the data breach team endorsement options, bridges the gap between risk transfer and purchased loss control, creating a risk management program for privacy, data breach, and network security risk.

Data breach team endorsement enhancements include:

Coverage for regulatory communications, including: Payment for legal services to communicate with a regulator before a formal investigationCoverage for the data breach coach or another law firm on the data breach team panelSelf-insured retention for a regulatory proceeding, which is eroded by regulatory communications coverageForensics coverage, which now responds to any failure to protect personal information, and is no longer limited to network security failures

The new data breach fund sidecar endorsement benefits include:

All of the benefits already provided by the data breach team endorsementExpanded coverage for insureds with less than $1 billion in annual sales revenueData breach fund sidecar limit outside of the standard policy limitsSidecar limit intact, even when standard policy limits have been exhaustedTiered sub-limits removed, providing a single limit for all data breach expenses, including expenses incurred to retain services for: the data breach coach, forensics, complying with privacy regulations, regulatory communications, legal services, notification services (statutory and voluntary), call center services, public relations, credit monitoring, identity monitoring, and fraud consultationSidecar limit offered at 50 percent of the privacy liability limit on a standard basis (customers are able to purchase lower limits if requested)No retention for data breach coach expensesSimplified structure to allow brokers and clients to build excess programs above ACE limits

ACE’s data breach fund sidecar endorsement offers expanded coverage and services to help small and mid-sized organizations mitigate and manage the rising risk and expense of data breaches, creating a comprehensive risk management program for privacy, data breach, and network security risk.

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Less Than 50% of Small Businesses Offer Employee Benefits: LIMRA

Only 47 percent of small businesses (2-99 employees) in the United States offer benefits to their employees, the lowest level in two decades of research by the life insurance industry research organization LIMRA.

According to the U.S. Census Bureau, 98 percent of businesses in the U.S. have fewer than 100 employees, accounting for approximately 35 percent of the U.S. workforce.

“The recession has had an impact on smaller employers’ ability to offer benefits, particularly those with fewer than 10 employees,” said Kim Landry, research analyst, LIMRA Product Research. “The weak economy caused a lot of small firms to close, while the new firms cropping up to replace them are less likely to offer benefits. Many small businesses are also hesitant to add new benefits until the economy improves.”

LIMRA’s study found that 78 percent of small businesses in the U.S. are family-owned. Family-owned firms experienced a sharper decline in benefit penetration between 2005 and 2012 than non-family-owned firms, with only 40 percent of these businesses offering insurance benefits in 2012 (compared with 47% in 2005).

One quarter of small businesses are female-owned, according to the LIMRA study. These firms tend to be smaller, produce lower revenue than male-owned firms, and are less likely to offer insurance benefits (37 percent vs. 50 percent of male-owned small businesses).

Among those small businesses that do offer insurance benefits to their employees, medical and prescription drug plans are by far the most popular, and tend to be the first benefits that companies bring on board. “These benefits provide an opportunity for small business owners to obtain coverage not only for their employees, but also for themselves and their families,” noted Landry. “We also found dental and vision coverage to be common offerings among small businesses, as these products tend to be very popular with employees.”

LIMRA found that life insurance is frequently offered by small firms, whose preference for this benefit is most likely associated with its low cost and ease of administration. However, products such as long-term disability, short-term disability, and accident insurance have fairly low penetration rates among small businesses, leaving employees at these firms potentially exposed to a variety of financial risks.

In February through March 2012, LIMRA conducted a telephone survey of 754 private small businesses in the United States with 1-99 employees (including the owner) that had been in business for at least one year. Respondents were the individuals that made or shared in the firms’ decisions concerning business insurance and/or employee benefits. The sample was weighted by company size, industry, and region to be representative of the total population of U.S. small businesses, based on data from the U.S. Census Bureau

LIMRA: Benefits Offered by Size of Business

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Chevron Paid $10M In Northern California Refinery Blaze

Chevron Corp. has paid $10 million in claims stemming from the Aug. 6 crude unit fire at its 245,000-barrels-per-day refinery in Richmond, Calif., the company said.

So far, 23,900 claims have been made due to the blaze that sent a smoke column over San Francisco Bay, according to a letter Chevron sent on Monday to the Contra Costa County Hazardous Materials Program, a local health department.

At least 15,000 people complaining of respiratory problems went to area hospitals in the hours and days after the fire broke out.

In addition to individuals, Chevron said it had paid compensation to area hospitals, city of Richmond agencies and the Contra Costa County Hazardous Materials Program. The compensation to the hospitals and government agencies is for costs incurred in responding to the fire.

The company disclosed the figures in updating the progress of an internal investigation into the fire.

The crude unit, which carries out the initial refining of crude oil coming into the refinery and provides feedstock for all other units, has remained shut since the blaze.

Chevron has said that because of the shut unit, motor fuel output at the refinery has been at least halved, with other production units operating on feedstock the company has bought.

Chevron is repairing the unit and expects to restore full production in the first quarter of this year, the company has said.

The U.S. Chemical Safety Board and the California Division of Occupational Safety and Health are also investigating the fire.

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Sandy Hit N.J.’s Maritime Industry Hard; Insurer Says 25,000 Boats Damaged

Capt. Harold “Smitty” Smith couldn’t believe it — they were everywhere, hundreds of them.

Stacked in piles by the dozen. Leaning against homes and on top of cars. Peeking out from murky waters and marshes up and down the New Jersey coast.

Hurricane Sandy had turned the Shore area into a graveyard of boats. More than 1,400 marine vessels, from Jet Skis to 40-foot yachts, littered the coastline in the wake of the storm, carried from their docks by a record-breaking storm surge and deposited wherever Sandy saw fit — often hundreds of yards away from where they began.

“It was just completely decimated,” said Smith, a towboat captain with TowBoatUS Sandy Hook who has removed dozens of displaced vessels at the Atlantic Highlands Municipal Harbor. “It wasn’t just minor damage either. I’d say 70 percent of the boats that we salvaged were total losses,” he told The Star-Ledger of Newark, N.J.

Sandy caused record-breaking damage to nearly every facet of life along the coast — and the maritime industry was no different. BoatUS, an insurer and the nation’s largest boat-owners association, estimates 25,000 boats were damaged in New Jersey at a cost of $242 million.

The cleanup will be an unprecedented effort, according to the New Jersey State Police and Department of Environmental Protection, one not expected to be completed for months or perhaps years.

State Police data show about 350 boats remain where Sandy deposited them, and dozens more remain missing. The process of reuniting owners with boats can be incredibly complicated, from tracking down people whose entire lives — not just their boats — were uprooted by the storm, to others eluding contact because they cannot afford — and their insurance doesn’t cover — costly salvage operations.

“In a lot of cases it’s not that people aren’t interested in salvaging their vessels, we’re just having trouble finding them. We’re writing letters and placing calls to addresses where there’s no longer a home,” said Lt. Perry Capiak, of the State Police Marine Services Bureau, which has been collecting data on displaced and missing boats and helping reconnect owners.

And Larry Ragonese, a spokesman for the DEP, said cleaning up boats and other debris is only the beginning. In the coming weeks and months, attention will turn to what can’t be seen — boats, cars, docks, boardwalks and tons of sand lying beneath New Jersey’s bays, channels and other crucial waterways.

“What we’re doing right now is really the easiest pickings — boats we’ve identified and we know where they are,” Ragonese said. “There are plenty of boats and other debris that sank and we don’t know where they are. We don’t want to put a timeline on getting that debris cleared because we don’t really know what’s down there; we don’t know what we’re going to find.”

After participating in flyovers in the early days after Sandy, Capiak and the State Police Marine Services Bureau knew they had a tall task ahead. Satellite photos showed boats piled high in marshes several football fields from the marinas they were once docked at, many of which had been heavily damaged as well. Others lay against houses, or obstructing streets, or jammed in train bridges.

“We began putting together a database a few days after the storm,” Capiak said. “It became a security issue, because of the potential for looting. We wanted to get a jump on it.”

The DEP has retained the services of AshBritt, a Florida-based disaster recovery firm that hopes to remove the remaining boats to staging areas in Brick and Tuckerton by early next month.

A day after Sandy struck, the Christie administration gave AshBritt a no-bid contract worth up to $100 million to clean up the state, including removing boats from inland waterways. The contract rates are based on the size of the boat and how far it needs to be hauled.

For example, the state paid AshBritt $481 per linear foot to recover and haul a boat less than 15 miles, according to the contract. A 30-foot boat would then cost the state about $14,000 to recover.

AshBritt later was awarded the contract through a competitive bid, but the rates are essentially the same.

Today, all but 25 percent of the boats have been removed.

But getting to this point wasn’t easy. Some owners still have not been contacted. And at least 85 vessels remain missing, while others were likely swept away and not reported.

Once boat owners began the salvage process, other complications emerged, according to Smith.

“It was very difficult,” Smith said of salvaging vessels. “For some we needed to bring in cranes. Some were left higher up (in elevation) than anything we’d ever seen before. Then you had boats that had washed into people’s properties. There was a lot of difficulty in getting permission just to be on people’s property. They might say `Well, your boat broke my fence, who is going to pay for that?”’

Scott Croft, spokesman for BoatUS, said insurance issues emerged quickly. Boat insurance is not mandated in New Jersey as auto insurance is, but many banks require it for financing and some marinas do as well.

But Croft said several boaters with insurance found it covered the damage to the vessel itself, but not the cost to salvage it, which can run several thousand dollars.

“A lot of boat policies have insurance on the value of the hull (of the vessel). You should have salvage coverage equal to that,” Croft said. “If you’re in a situation where your boat’s a total loss, your insurance may cover that damage, but if you don’t have salvage coverage you’re going to end up paying that out of pocket.”

Smith said it was a situation he has seen all too often.

“I hear the stories every day,” he said. “I had a guy who I towed, the job cost $3,500. His insurance only covered $3,000 of it. But he was dealing with so many other things. He called me up and said `Look, I’m not normally this kind of guy but I just don’t have it.’ I told him not to worry about the $500, but there’s only so many times I can do that as a businessman.”

The next phase of cleanup is what lies beneath.

Officials and experts say tons of debris, from boats to boardwalks, was washed into New Jersey’s critical coastal waterways, creating new hazards for mariners traversing them as boating season approaches.

The DEP is reviewing bids to hire contractors to search for and then remove the debris, but it is a process expected to take months and no one is quite sure how large of an undertaking it will be.

Capiak said Sandy has rendered local knowledge of the waterways useless and urged boaters to use extreme caution when traveling through Sandy-affected regions.

“We all saw the pictures. Those boats that are still missing, they’re sunken somewhere. Until that’s all remapped and everything, I wouldn’t be operating at too high a speed,” Capiak said. “The local knowledge people have relied on for years, that’s all changed now. A depth finder is going to be your best friend.”

The Army Corps of Engineers has started surveys of the region and has already started the process of clearing the Intracoastal Waterway, a heavily trafficked 3,000-mile federal waterway that parallels the entire East Coast.

Much of the initial surveys and quick fixes have been made, such as a stretch near Mantoloking where the bay was reduced to just 2 feet of depth, but projects in other areas historically prone to accumulating sand lack funding, and have for years.

“It was better than I originally thought. We were able to get our inlets done pretty quick,” said Monica Chasten, a manager in the Army Corps Operations Division. “But some of these projects have not been funded. They’ve been on the chopping block for two years. . We have no additional funding to do anything else here. We’ve been using some post-Irene funds. We’re being creative in getting it done because it has to. It’s not something we’re willing to take a chance on.”

Melissa Danko, executive director of the Marine Trades Association of New Jersey, said marinas and other maritime businesses are reeling as well. Without federal, state and private assistance in short order, Danko said businesses could stand to suffer even more if they cannot get back on their feet by the summer season.

“The impacts were tremendous. Our time constraints are a bit different because recreational boating season is coming. Obviously we’re not the only ones that need assistance, but our industry is definitely an industry that needs support,” she said. “I’m hopeful, but I don’t have anything confirmed as of yet.”

Smith said while the shock has faded, the impacts of Sandy will stretch on for years.

“I’ve never seen anything like it and I hope to never see it again. From a personal standpoint, I’m busy now, but I don’t know what the next few years will bring with the impacts on boating here,” he said. “I think it’s going to be four or five years before boating from Atlantic City to the Raritan Bay gets back to normal.”

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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