V o lu m e 9, Issu e 10 | D e ce m b e r 2 0 0 7 G ro ss q u estio n s...

Gross questions fed plan Treasury Dept. should stay out of industry regulationBy Todd Karpovich

Despite the U.S. Treasury Depart-ment’s preliminary interest in possiblyregulating insurance, Virginia’s insur-ance commissioner says the existingstate-based regulatory system is work-ing in the commonwealth.

Virginia Insurance Commissioner AlGross said he doubts federal regulationwould improve the Virginia market.

“I have a very healthy retail market,in particular with homeowners and au-tomobile, and those are lines that affecta majority of the citizens,” Gross said.“The rates are relatively low comparedto other jurisdictions.”

Gross said the General Assembly puttogether a series of laws that has helpedboost the Virginia insurance market.”

The Bush admin-

Industry Leads// Property/Casualty

Virginia directorreceives Spirit awardThe Independent Insurance Agents andBrokers of America or the “Big I’ awardedits Spirit of Education award to DianeMattis, education director for the IndepIIABA in Virginia.

Page 22

// Sales Ideas

Meet the client needswith the dentalbenefits plansWhen selecting a dental provider for yourclients, remember that not all dental bene-fits plans fit everyone. Work with carriersthat fit the size of the client group, saidDenex Dental President Ethan Foxman.

1

// Life Insurance

IRS sets Colaadjustments forpensions for 2008The Internal Revenue Service announcedcost of living adjustments applicable todollar limitations for pensions plans andother items for the 2008 tax year.

Page 10

// Health

Anthem of Virginia toprovide new optionsin CDHP productsAnthem Blue Cross and Blue Shield inVirginia will soon offer consumer drivenhealth plans to large and small businessesalong with individuals, with combinedemployee/employer-funded or traditionalPPO health coverage.

Page 7

NAIFA $49 duesincrease garnersearly supportBy Rachel BernsteinThe National Association of Insur-ance and Financial Advisors has ap-proved a $49 increase in dues, which itplans to use to fund its NAIFA 21 strate-gic plan and the Connections thatCount program. The rate hike takes ef-fect Jan. 1.

The new NAIFA efforts drew supportfrom Virginia’s agent community.

“The benefits of joining NAIFA-Vir-ginia have not

Larry King suesfirm over $15M in life settlementsBy Todd KarpovichTalk show host Larry King is suingAlan Meltzer and his Bethesda, Md.-based insurance services company, theMeltzer Group, for allegedly advisinghim to sell $15 million in life insurancepolicies to make illegal commissions,according to a lawsuit filed in U.S. Dis-trict Court for Central District of Cali-fornia in Los Angeles.

Attorneys for King, who hosts anightly talk show

Va. HMOs betterthan nationalaverage on quality‘Good news for HMO members as state’splans excel in 70% of quality measures

Virginia HMOs performed better thanthe national averages for 70% of thequality measures in 2006, according to arecent summary published by VirginiaHealth Information, a nonprofit healthinformation company.

“This is good news for HMO mem-bers,” said Michael Lundberg, VHI’s ex-ecutive director.

Statewide, HMOs also improved over-all rates from last year in more than 50%of all measures. More than 1.1 millionVirginians are enrolled in HMOs.

Statewide monthly premiums permember averaged $264, according toVHI, which provides

The latest industry news, including Carrier Ratings, New Products, Videos and How-To Columns are available 24/7.

CALENDAR 20

COMPANIES 12

DEALS 16

LEGAL BRIEFS 9

LETTER TO EDITOR 15

LIFE/FINANCIAL 10, 14

PEOPLE 13

NEW PRODUCTS 6

RECORD/FINES 23

Departments

See “King” on p19 See “NAIFA” on p17

See “HMO” on p8

See “Gross” on p15

Volume 9, Issue 10 | December 2007

PRSRT STDU.S. Postage

PAIDBaltimore, MD

Permit No. 7841 Required reading for successful insurance and financial service professionals.

Virginia

Edition

DATED MATERIALPlease deliver by November 28

Insurance & Financial Advisor Monthly10600 York Rd. Suite 203, Hunt Valley, MD 21030

Change Service Requested

Va. auto rates rankin middle of pack Virginia’s auto insurance premiums for 2005 averaged$796, declining only a few dollars from the previous year.To read more, turn to page 3.

Views On Retirement“Thinking about how much you and yourspouse or partner view retirement andhow much you need to save, which ofthe following best describes you?”

Topic $35K-$49.9K

$50K-$74.9k $75K+

I want to save more for retirement the my spouse/partner

13% 15% 9%

We are inagreement abouthow much we need to save

28% 30% 67%

My spouse/partnerwants to save morefor retirement than Ithink is necessary

5% 4% 11%

Source: WSJ.com/Harris Interactive

IFA_VA-1207 11/16/07 10:47 AM Page C1

2 | Maryland / Washington, D.C. Insurance & Financial Advisor | IFAwebnews.com October 2007

IFA_VA-1207 11/16/07 10:47 AM

Maryland / Washington, D.C. Insurance & Financial Advisor | IFAwebnews.com October 2007 | 3

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Virginia auto ratesrank in middle ofnational packAverage premium in 2005pegged at $796 in stateVirginia’s auto insurance premiums for2005 averaged $796, declining only a fewdollars from the previous year, accordingto the latest research by the National As-sociation of Insurance Commissioners.

The average auto insurance expendi-tures in 2005 for Virginia were $698,which also declined by a few dollarsfrom 2004.

Virginia averaged less than its north-ern neighbors in Maryland and Wash-ington, D.C. for both insurance premi-ums and expenditures in 2005.Maryland’s auto expenditures ($954), av-eraged $228 less than the District’s rates($1,182), which were among the highestin the nation. The district was second inthe nation to New Jersey’s auto expendi-tures ($1,184). Auto insurance premiumsin Maryland ($1,037) and the District($1,343) were also significantly more thanthose in Virginia.

States to the south of Virginia, likeNorth Carolina and Tennessee, averagedless for both auto premiums and expen-ditures. Virginia was slightly more thanTennessee’s premium rate ($788) andNorth Carolina’s rate ($731).

In auto expenditures, Virginia’s rate was$39 more than that of Tennessee ($659)and was $96 more than the auto expendi-tures reported in North Carolina ($602).

Officials with the NAIC said they rec-ognized the differences in state require-ments for insurance coverage, limits andbenefits. Many factors affect a state’s ex-penditures and premiums, including un-derwriting costs, driving locations, acci-dent rates, traffic density, auto theftstatistics, repair costs and state laws.

These difference make direct state-by-state comparisons difficult.

In addition, data contained in the2004/2005 report may differ from datareleased in previous reports, as updatedinformation from insurers is periodicallyobtained and included in the most re-cent report. IFA

News straight to your inbox.Subscribe at

IFA_VA-1207 11/16/07 10:47 AM

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Mission StatementTo provide an objective and relevant report

of news and issues that affect the business and success of local

insurance & financial service professionals.

Tony OndrusekPublisher

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Bob GrahamExecutive Editor

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Exclusive online content

Most read stories onlineLocal Insurance News

1 |Virginia community to require golfcarts to have insurance

2 |New small-group product avail-able in Virginia

3 |New Aetna vice president of key,select account sales for Va. named

4 |Virginia financial service firm withinsurance arm expanding

Insurance Industry News

1 |Court: Laci Peterson’s mother dueslain daughter’s life policy

2 |Big I adopts board policy regardingcertificates of insurance

3 |Class-action suit filed againstAetna over membership claims

Quotes“I have a very healthy retail mar-ket, in particular with homeown-ers and automobile, and thoseare lines that affect a majority ofthe citizens.”

Al GrossVirginia insurancecommissionerPage 1

“For employers, these [CDHP]products help engage employ-ees and make them active part-ners in helping to control theirrising cost of health care.”

Tom ByrdAnthem Blue Cross Blue ShieldPage 7

“It’s obvious that today’s employ-ers understand that the majorityof their employees take a backseat in managing their retire-ment.”

Pamela HessHewitt AssociatesPage 14

Now is the time. Not tomorrow, nextweek, next month, next year. We’ve allsaid that we are going to make changesat work, and most of us, for a variety ofreasons, some good and some not,never get around to it.

The problem with that approach isthat everything else is changing allaround us, and being stagnant in a seaof change is bad.

As I pointed out last month, the reg-ulatory environment is changing, withmore consumer-friendly regulationlikely. A continued soft property-casu-alty market, concerns about universalhealth care and all its alternativelynamed manifestations, and the likeli-hood of more acquisitions of smallagencies by national firms – these arebut a few of the industry’s big concernsheading into a new year.

More challenges face us all, including:

The growing role of technology. Pa-per forms and faxes have been replacedwith emails and web forms. Theamount of information reaching all ofus through our Inboxes is alarming.Finding ways to manage it can includesetting up automated filtering of emailsinto folders or picking up the telephoneor walking down the hall to meet withsomeone rather than sending anothermessage that will be misinterpreted.

People’s reliance on the Internet.People are going to the Internet to re-search just about everything. If youhaven’t created a Web site featuring alist of services provided, About Us andContact Us pages, you’re way behind.Find someone to help. (Many carriersprovide templates from which a page

can be easily built.) Do it now or watchas your competitor steals your business.

The Web as competition. As peoplebecome increasingly comfortable withthe Internet as a forum for conductingcommerce, the chances of you losingmarket share to the Internet rises. Fightit now. If you don’t already, start tellingyour clients what you bring them. On-line auto insurance purchases seemgreat until you have to call with a ques-tion about whether to get the coveragefor a rental car or whether your child’scovered if he takes a trip to the Ba-hamas on spring break. Choosing tobuy through an agent adds value. Tellone and tell all.

Marketing yourself better. At indus-try events all the time I ask for agents’business cards only to hear that theydidn’t bring any. This approach seemssymptomatic of a larger problem.Agents aren’t actively marketing them-selves enough. Carry business cardswith you all the time. You never knowwhen someone who might need yourservices will ask. Writing your name ona napkin won’t do. Business cards are asimportant as your wallet and keys. Treatthem that way.

Perhaps you have other challengesfacing you. Don’t wait for Jan. 1 to ad-dress them. Do it now.

It also helps to add accountability.Tell someone what you plan to accom-plish. Tell me at [email protected].

And don’t lose sight of the fact thatthe insurance industry is full of oppor-tunities, flexibility and possibilities.Seize them and all they bring you in thenew year. Better yet, start seizing thema month early! IFA

// PUBLISHER’S NOTE

Time for changeBeing stagnant in sea of change is bad

// OnlineInsights

IFAwebnews.com/Virginia

• Virginia congressman takes heat for vote on SCHIP

• Enrollment for prescription drugsopens in Virginia

• Group lauds coastal homeowners’ bills

IFAwebnews.com/MarylandDC

• Brokerage with Maryland officerecognized for growth

• Bethesda organization has newclearinghouse system for life firms

• D.C. regulators to bring attention to health

News & Information exclusive to

IFA_VA-1207 11/16/07 10:47 AM

Virginia Insurance & Financial Advisor | IFAwebnews.com December 2007 | 5

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Two plead guilty inhealth fraud caseChiropractor, nurse practitioner involvedin conspiracy effort to defraud Medicare

An Abingdon, Va., chiropractor pleadedguilty to conspiring to defraud Medicareand TennCare, a Tennessee health in-surer, and obstructing justice, accordingto reports.

Chiropractor Mark Allen Bradley, alsocharged with obstruction of justice, anda nurse practitioner from Snowflake, Va.,entered pleas before a U.S. federal mag-istrate judge in Abingdon.

Bradley pleaded guilty to one count ofa 24-count indictment, which includedcharges of conspiring to defraudMedicare and TennCare, mail fraud, wirefraud and distributing controlled sub-stances unlawfully, according to press re-ports.

He faces up to five years in prison, a$250,000 fine, restitution payment and asupervised release.

The nurse practitioner, KatherineElaine Turner Yeary, 33, pleaded guilty toobstructing justice. She faces a maximumpenalty of 20 years in prison, a $250,000fine, and a supervised release.

Bradley and Yeary are scheduled to besentenced Jan. 3.

Virginia Center for Integrative Medi-cine, owned by Bradley, provided care inWeber City, Va. The Department ofHealth and Human Services investigatedthe center with the Tennessee Bureau ofInvestigation and Virginia State Police tofind Bradley worked with other medicalproviders to defraud Medicare.

Bradley was not authorized to pre-scribe controlled substances, but a Ten-nessee physician allowed Bradley to usethe doctor’s Drug Enforcement Agencynumber to write prescriptions for Sched-ule II narcotics. Bradley then billedMedicare as though the Tennessee doctorhad treated the patients. IFA

// PROPERTY-CASUALTY

Allstate subpoenaed in Fla.probe of industry collusionFlorida regulators subpoenaed All-state Corp. in an ongoing probe into pos-sible industry collusion to thwart stateefforts to slash homeowner insurancerates, news reports said.

Allstate was ordered to turn over doc-uments related to reinsurance activity aswell as corporate communications. IFA

IFA_VA-1207 11/16/07 10:47 AM


Moreproperty/casualty news.

Morelife and health news.

Morenew product news.

Morelocal news and exclusive content to supplement thepages of Insurance & Financial Advisor.

Are you getting More?

Required reading—and surfing—forinsurance and financial service professionals.

Delta Dental adds maximum rollover Roanoke-based company plans to offer reward for preventative dental care

Delta Dental of Virginia hopes to helpsmall businesses with its new MaxOverprogram.

The Roanoke, Va.-based Delta Dentalsaid MaxOver has an annual maximumrollover feature that rewards preventa-tive dental care and helps to keep dentalbenefits costs down.

MaxOver allows eligible members to rollover a portion of their unused annual ben-efit maximum for use in future years.When members need a dental procedurethat costs more than the annual maximumallowed in their Delta Dental plan, theycan utilize funds from the MaxOver ac-count to help meet the cost difference and

minimize out-of-pocket expenditures.MaxOver will be a standard on all

plans featured in Delta Dental’s smallgroup product portfolio.

In reply to small business owners’ re-quests for flexibility in benefit design,Delta Dental added more annual benefitmaximum choices, and introduced a new25% coinsurance option for its smallgroup product, aXcess. IFA


Program locks single-digit medical rate hikeThe Guardian Life Insurance Co. of America introduced a new program thathelps employers manage health care costs by locking in a single-digit med-

ical premium renewal rate when companies sign-up.

Traditional plans have an annual renewal cycle and often require employers to estimatetheir future healthcare expenses. This annual cycle has proven difficult for some employ-ers at a time when health care premiums have significantly outpaced inflation. GuardianPremium Protect, a new offering for groups with 51-150 employees was designed tomitigate this problem by eliminating the guesswork related to second year medical bene-fit renewals.

The program will be available in New Jersey, Maryland, Washington D.C, Virginia and theChicago and New York metro areas.

No Borders to provide international medical planAmWINS Group Benefits launched an international medical plan that helpsto protect the health of employees while managing benefit costs for

employers. The new plan is called No Borders.

No Borders would provide care for four million expatriate Americans while alleviatingtime-consuming administration and care coordination for employers. Plus, AmWINSGroup Benefits includes a patient advocacy service to help patients secure second opin-ions 24/7 on medical decisions and diagnoses.

New product links LTC coverage to life stageMetLife introduced an innovative long-term care insurance solution forevery stage of life called MetLife LTC LifeStage Advantage.

This new product allows individuals to match their long-term care insurance coverage totheir life stage, helping to change the traditional way that long-term care insurance isbought and sold. MetLife allows customers to purchase additional coverage (up to dou-ble) until age 65 without further proof of insurability.

Legal damage, defense costs covered in policyThrough its CNA Connect product, Employment Practices Liability (EPL) andFiduciary Liability endorsement is designed to protect companies and indi-

viduals against damages and defense costs from lawsuits based on hiring practice,benefits programs or workplace practices.

CNA offers this kind of endorsement on a business owner policy. The global businessinsurer previously offered this coverage combination through separate policies; however,it is now included for most CNA Connect classes. CNA Connect offers $10,000 of first-dollar defense and indemnity coverage for EPL and Fiduciary Liability. Increased limits ofup to $250,000 are also available.

National Transplant Network introducedCofinity — the division of Aetna that provides health related services andproducts to other insurance companies, third-party administrators, health

plans and other customers — announced the introduction of the Cofinity Institutes ofExcellence national transplant network.

The Cofinity Institutes of Excellence (IOE) network is currently a sub-set of the AetnaInstitutes of Excellence transplant network and is being expanded further to be one ofthe most comprehensive transplant networks in the nation. The IOE transplant programhad previously been available only to customers who purchased Aetna administeredbenefits. The Cofinity introduction furthers the business unit’s strategy to provide healthrelated services and products that complement the services provided by other insurancecompanies, third party administrators and health plans.

Insurance & Financial Advisor | IFAwebnews.com

LifeInsurance

FinancialServices

Property/Casualty

HealthInsurance

NEWPRODUCTS

HealthInsurance

For the latest New Products go to IFAwebnews.com.

IFA_VA-1207 11/16/07 10:48 AM


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GBS launches Healthy AdvantageNew health product designed to lessen costs for small-group health plans

Group Benefit Services Inc. has launchedHealthy Advantage, a new product de-signed to help control the cost of small-group health plans, the third-party andfully insured plan administrator said.

Geared for employers with 10-50 em-ployees, Healthy Advantage rewardsbusinesses with good claims experiencein a way that makes sense for smallerbusinesses by combining the features ofa guaranteed cost of a fully insuranceplan with the opportunity for savings ofa self-funded plan, according to the com-pany. The new program is called “HealthyAdvantage – Alternative Funding.”

The plan is available in Maryland, Vir-ginia, Pennsylvania and Delaware.

Hunt Valley, Md.-based GBS saidHealthy Advantage is designed to pro-vide a lower cost, limited risk, qualityprogram when compared to a tradi-tional fully insured health plan. Theproduct offers a wide range of PPO ben-efit designs as well as tax-favored HSAand HRA plans.

The new product is a response to thegrowing number of companies trying tocut costs and choosing high-deductiblehealth plans, the company said. Thesecompanies are raising their individualdeductibles to $1,200 or $1,500 to re-duce premiums while subsidizing alower deductible for their employees,according to GBS. IFA

Anthem offering newconsumer-driven optionsNew plans for individuals,small- and large-groupclients designed to trim costsAnthem Blue Cross and Blue Shield inVirginia will offer new health plan op-tions for employers and individuals de-signed to control the rising cost of care.

Beginning next month, Anthem, partof Indianapolis-based WellPoint Inc., willoffer consumer-driven health productsand services to large and small busi-nesses, along with individuals.

“Anthem members who choose theseconsumer-driven products will have bet-ter support to help them lead healthierlives,” said Tom Byrd, president of An-them Blue Cross and Blue Shield in Vir-ginia. “These plans give consumers thedecision-making power and control todirect how they want to spend theirhealth care dollars. For physicians, theproducts help create more informed pa-tients who know what kind of questionsto ask. And for employers, these prod-ucts help engage employees and makethem active partners in helping to con-trol the rising cost of health care. More in-formed consumers could make betterhealth care decisions.”

Anthem will offer the following coreconsumer-driven health products:

• Lumenos(R) Health

Reimbursement Account • Lumenos Health Savings Account • Lumenos Health Incentive

Account • Lumenos Health Incentive

Account PlusAnthem’s CDHP options will combine

an employee- and/or employer-fundedhealth account with traditional PPOhealth coverage. Each is paired with pow-erful online decision support tools, andpersonal health coaching which con-sumers may use to learn more abouttheir health care treatment and cost op-tions. Extensive preventive care, smokingcessation and weight management pro-grams are also benefits of the products.In addition, consumers may better con-trol their individual health as well as theirhealth care spending. They may also re-ceive financial rewards for completingvarious wellness programs.

For example, when members completean online health assessment, enroll in aprogram with a health coach, success-fully complete a smoking cessation pro-gram or make other healthy lifestylechoices, they will receive tangible incen-tives and rewards under these plans. Theincentives range from $50 for complet-ing a smoking cessation program to $200for graduating from a personal health-coaching program that helps consumersbetter manage their conditions. IFA

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information and data on Virginia hospi-tals, health insurance, health providersand others.

The lowest HMO average reported was$230 and the highest was $301.

Individual HMO profit/loss ratios var-ied widely from 1.7% to more than 16%and averaged more than 8% statewide,the VHI said.

The report said that HMO membersreported higher levels of satisfaction infive of seven measures:

• Members said they were moreable to get the care they neededand get it quickly; and

• Exactly 92% of members saidtheir doctors spent enough timewith them and listened to theirconcerns.

The HMO measures that fell shortincluded:

• The rate of women receivingmammograms dropped for thethird year in a row to 69%;

• Colorectal cancer screeningimproved, but performed n just57% of eligible adults; and

• About one in five women whoshould have been screened forcervical cancer were not; andstatewide cervical cancerscreening dropped to 81.7% ofeligible women. IFA

HMO: Va. ranksabove average From Page 1

associationnews Invincia raises funds forSpecial OlympicsThe Virginia Special Olympics received $20,000 and twoSpecial Olympics families were awarded free trips toWalt Disney World as part of the first Invincia Cup GolfTournament. Sponsored by Chesterfield, Va.-based Invin-cia Insurance Solutions, 112 golfers recently formed 28teams at the Country Club of Petersburg. Pictured: (backrow, from left) Kristie Belvin, Ashby Pedigo, BarbaraBeale, Arnold Little, Rob Guidry, Frank Beale (Invinciapresident), Patrick Martin, Paula Thompson, Rick Jeffrey(president of Special Olympics of Virginia); (front row,from left) Maida Graham, Justin Graham (Special Olympicathlete), George Graham, Paul Marretti (Special Olympicathlete and guest speaker), Von Weber (Special Olympicathlete), Mike Weber, Beth Weber, and Laura Grivetti.

Send photos of your company events and [email protected]

// HEALTH INSURANCE

Kern changes mind, to remainat Sentara HealthcareHoward P. Kern will remain with Nor-folk, Va.-based Sentara Healthcare aspresident and chief operating officer. InSeptember, Kern had accepted the posi-tion as president and chief executive of-ficer at Iowa Health System in DesMoines and would leave Sentara in Janu-ary. However, significant family consid-erations caused him to revisit his plan torelocate, reports said.

Sentara operates Virginia Beach, Va.-based Optima Health, which providescoverage to more than 341,000 people inVirginia through its consumer-driven,employee-owned and employer-spon-sored plans, as well as plans for Medicareand Medicaid enrollees. IFA

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Willis given initial approval for $8M settlementInsurance broker Willis Group Holdings said a federal court in New Yorkgave preliminary approval to an $8.5 million settlement of a class action suit

for gender discrimination, according to reports.

The proposed consent decree, if approved, will create a fund of about $8.5 million thatwill be distributed to certain current and former female employees of various offices.

The suit, filed against the company in 2001, raised issues of gender discrimination in com-pensation and promotion during the period of Oct. 31, 1998, through Dec. 31, 2001.

It affects employees of Willis of New York, Willis of New Jersey, as well as Willis of Mas-sachusetts.

Willis said it denies any discrimination took place. The settlement was reached in June2007 and was reflected in the company’s second-quarter financial results.

Injunction issued in alleged misrepresentationA state judge has issued a temporary injunction against Arch Capital GroupLtd. after finding that several Arch facultative reinsurance officials misappro-

priated General Re Corp. trade secrets when they left Gen Re to join Arch earlier thisyear, according to reports.

Connecticut Superior Court Judge Taggart Adams ordered Arch not to use or divulge anyGen Re proprietary information or trade secrets, including loss cost data that the judgeconcluded Arch officials were using to compete with Gen Re.

The dispute dates back to April 2007, when four of Gen Re’s top property facultativeunderwriting executives—Steven Franklin, Jennifer Apgar, Philip Augur and KennethVivian—quit to start a new facultative operation for Arch. Within a week, 26 other GenRe facultative employees followed suit.

Caterpillar claims Aon steered businessChicago-based Aon Corp. faced fraud and anticompetitive charges relatingto its business practices by longtime client Caterpillar Inc.

Similar to allegations made in 2005 by attorneys general in Connecticut, Illinois and NewYork, Caterpillar charges that Aon steered business to favored insurers, tied the place-ment of retail insurance business to the purchase of reinsurance brokerage services andmanipulated pricing on client placements.

Caterpillar accuses Aon and units Aon Risk Services of Illinois Inc. and Aon Re Global offive counts of violating federal and state antitrust laws in addition to various other fraudand unjust enrichment allegations. The suit, filed in U.S. District Court in Peoria, Ill., seeksdamages, attorneys fees, restitution and disgorgement

Whistleblowers suit against insurers thrown outA federal judge threw out a so-called “whistleblowers’” lawsuit thataccuses insurance companies of overbilling the federal government for Hur-

ricane Katrina’s flood damage to Louisiana homes.

Allan Kanner, the New Orleans-based attorney who filed the suit on behalf of a group offormer insurance adjusters, said U.S. District Judge Peter Beer dismissed the case onprocedural grounds and didn’t rule on the merits of the allegations, according topublished reports.

Kanner’s suit accuses Allstate Insurance Co., State Farm Fire and Casualty Co. and otherinsurers of misrepresenting claims to the National Flood Insurance Program to limit theirliability for storm damage after Katrina laid waste to tens of thousands of Gulf Coasthomes, the reports said.


P/CInsurance

TemporaryInjunction

KatrinaFollowup

LEGALBRIEFS

HealthInsurance

For the latest Legal News, go to IFAwebnews.com.

IFA_VA-1207 11/16/07 10:48 AM


A LIMITED BENEFIT MEDICAL INSURANCE PLAN WITH UNLIMITED POTENTIAL.

TransChoice® Presents A Good Fit For An Estimated 45.8 Million Uninsured Americans.1

Some valuable features of TransChoice include:

To say that there is a need for catastroph-ic health coverage for working Americansis an understatement. The number ofAmericans without health insurance waslast reported to have reached a recordhigh 15.7% of the total U.S. population.1

TransChoice is a limited benefit medicalinsurance plan designed to provideyour clients with a cost-effective health

benefits alternative for their uninsured fulland part-time employees. TransChoice isan indemnity plan, as opposed tothe usual benefit amounts used in otherlimited benefit medical plans.TransChoice represents an invaluablesolution for vulnerable employees andstands to generate a sizeable revenuestream for you as well.

Guaranteed Issue – no health questionsNo deductibles or co-paymentsDoctors office visit benefitsIn-patient benefitsOut-patient benefits

Physical exams & diagnostic tests benefitsPrescription benefitsSurgical & anesthesia benefitsShort-Term Disability Income and/orGroup Term Life Insurance can be soldwith TransChoice

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For more information on this and other innovative productsfor the worksite, call or email Eric Yeager, Regional Vice President,Southeast Region at (804) 986-5243 or [email protected].

1 U.S. Census Bureau, 2005.Use of statistics does not imply endorsement.

Underwritten by Transamerica Life Insurance Company, Home Office: Cedar Rapids, Iowa. Policy Form Series CP200100ASL SEEY 0406

Life InsuranceFinancial Services

IRS sets COLA adjustmentsfor pensions for 2008Annual changes to tax code affect limitations for benefits andcontributions under various qualified retirement plansThe Internal Revenue Service an-nounced cost of living adjustments appli-cable to dollar limitations for pensionplans and other items for the 2008 tax year.

Section 415 of the Internal RevenueCode provides for dollar limitations onbenefits and contributions under quali-fied retirement plans. It also requires thatthe commissioner annually adjust theselimits for cost of living increases.

Many of the pension plan limitationswill change for 2008 because the increasein the cost-of-living index met the statu-tory thresholds that trigger their adjust-ment. However, for others, the limitationwill remain unchanged. For example, thelimitation on the exclusion for elective de-ferrals on 401(k) plans and governmentThrift Savings Plans remains unchangedat $15,500.

Changes start Jan. 1

Starting Jan. 1, the limitation on the an-nual benefit under a defined benefit planincreases from $180,000 to $185,000. Forparticipants who separated from servicebefore Jan. 1, 2008, the limitation for de-fined benefit plans is computed by multi-plying the participant’s compensation lim-itation, as adjusted through 2007, by1.0236. The limitation for defined contri-bution plans under Section 415(c)(1)(A) isincreased from $45,000 to $46,000.

The adjusted gross income limitation fordetermining the retirement savings contri-bution credit for taxpayers filing a joint re-turn is increased from $31,000 to $32,000;the limitation under Section 25B(b)(1)(B)is increased from $34,000 to $34,500; andthe limitation rose from $52,000 to$53,000. The adjusted gross income limi-tation for determining the retirement sav-ings contribution credit for taxpayers filingas head of household is increased from$23,250 to $24,000; the limitation is in-creased from $25,500 to $25,875; and thelimitation under Sections 25B(b)(1)(C) and

25B(b)(1)(D), from $39,000 to $39,750.The adjusted gross income limitation

under Section 25B(b)(1)(A) for determin-ing the retirement savings contributioncredit for all other taxpayers is increasedfrom $15,500 to $16,000; the limitation un-der Section 25B(b)(1)(B) is increased from$17,000 to $17,250; and the limitation un-der Sections 25B(b)(1)(C) and 25B(b)(1)(D),from $26,000 to $26,500.

IRA contributions change

The applicable dollar amount underSection 219(g)(3)(B)(i) for determining thedeductible amount of an IRA contributionfor taxpayers who are active participantsfiling a joint return or as a qualifyingwidow(er) is increased from $83,000 to$85,000.

The applicable dollar amount underSection 219(g)(3)(B)(ii) for all other tax-payers (other than married taxpayers filingseparate returns) is increased from $52,000to $53,000.

The applicable dollar amount underSection 219(g)(7)(A) for a taxpayer who isnot an active participant but whose spouseis an active participant is increased from$156,000 to $159,000.

Maximum Roth limit updated

The adjusted gross income limitationunder Section 408A(c)(3)(C)(ii)(I) for de-termining the maximum Roth IRA contri-bution for taxpayers filing a joint return oras a qualifying widow(er) is increased from$156,000 to $159,000.

The adjusted gross income limitationunder Section 408A(c)(3)(C)(ii)(II) for allother taxpayers (other than married tax-payers filing separate returns) is increasedfrom $99,000 to $101,000. IFA


John Hancock offers new LTC trainingCourse approved in Virginia and other states to meet new Partnership requirements

John Hancock Life Insurance Co. is offer-ing a new, continuing education-approvedlong-term care insurance training coursein Virginia and other states coming onboard with new LTC partnership policies.

This eight-hour course meets all stateand national requirements. Most statesrequire that all producers take this type oftraining in order to sell LTC insurance,whether or not they are planning to sellpartnership policies.

The course is open to all LTC insur-ance distributors and will be offered ineach new partnership state, for $50. Asan incentive, John Hancock is offeringto refund the course fee to producers

who submit two John Hancock LTC in-surance applications within 60 days ofthe class.

“We are pleased that states are be-ginning to opt into LTC partnershipprograms following the passage of theDRA [Deficit Reduction Act of 2005]last year,” said Laura Moore, presidentof Long Term Care Insurance for JohnHancock. “As a carrier, we believe it isimportant to make available high qual-ity training sessions to help producersfully understand the partnership con-cept and make it easy for them to meetthe new training requirements that ap-ply in each state.” IFA

IFA_VA-1207 11/16/07 10:48 AM

Below are five tips to help you uncover adental benefits solution.

Specialization is Important

As a broker, selecting the right dentalbenefits plan is more than a matter ofchecking a box. To ensure a comprehen-sive set of high quality dental benefits foryour small group clients, consider pairingan offering from a firm that specializes inhealth benefits with an offering from afirm that specializes in dental benefits.This “best in class” approach will help youcreate the ideal total benefits package.

One Size Does Not Fit All

Often, small groups accept “cookiecutter” dental benefits plans that lackflexibility. Many times, this problem is theresult of carriers focusing almost exclu-sively on large group clients. If you arelooking for a dental benefits plan for asmall to medium-sized client, carefullycompare the flexibility of plan options andlook for a carrier that caters to smallgroups. Work with a carrier that has thebenefits options your client wants.

Look for Plans with Price Stability

Changing rates can lead to big admin-istrative headaches for HR and benefitsadministrators. As a broker, look for den-tal benefits plans that offer multi-year rateguarantees. These types of plans are eas-ier to budget, increase price stability andallow HR departments to focus on strate-gic functions rather than administrativework. If your clients have been with thesame dental carrier for a few years andhaven’t been hit with significant rateincreases, then chances are rates willremain stable into the future.

Network Usage Affects Cost

Rather than evaluating a dental net-work solely based on the size, anequally important measure is networkpenetration. Many networks preachlarge numbers, but the important ques-

tion is, where are the dentists locatedand will my clients be able to takeadvantage of the discounts these in-net-work dentists provide?

Always ask a prospective carrier what

their typical in-network penetration in aparticular area – anything less than 30% isbelow marker standards.

Insurance is a relationship business.Ultimately, high quality dental plans arethe result of people going the extra mileto make sure benefits are explainedclearly and claims are processedsmoothly.

Throughout the course of the policyyear, issues will occur and it is important

for clients to be able to interact with atrained professional.

Look for a dental benefits provider thatis willing to deliver a human touch foryour clients. Even if it costs a few dollarsmore, it will keep your clients more satis-fied in the end. IFA

about the author:Ethan Foxman is president ofRockville, Md.-based DenexDental, a provider of full-service dental benefits andunderwriting services both inthe Mid-Atlantic andnationally. His email [email protected].

DentalFocus By Ethan Foxman

Selecting the right dental benefits solution for your small to medium-sized

clients can be daunting. Between evaluating the individual needs of your client

and identifying a dental benefits provider that can meet those needs, there are

a lot of decisions to be made about cost, benefit options and level of service.

Tips for Selecting the Right Dental Benefits Solution for Your Small to Medium-Sized Clients


The star performer of Kaiser Permanente’s new incentive plan will win a weekend getaway for two to New York City, including air fare, ground transportation, two nights in a luxury hotel, dinner, and tickets to a Broadway show. The star performer will be the broker with the greatest cumulative number of enrolled subscribers resulting from new small group sales with effective dates from October 1, 2007 through March 15, 2008.

On the way to becoming our star performer, you’ll earn extra rewards, paid in addition to Kaiser Permanente’s Annual Producer Bonus Program rewards and standard commissions.

Visit kp.org for additional contest rules. If you have questions, contact Patrick Durbin at 301-816-6509 or [email protected].

Each new group with Additional reward

2–5 subscribers $300

6–10 subscribers $600

11–25 subscribers $1,200

26–50 subscribers $2,400

236158 10/07-2/08 Kaiser Foundation Health Plan of the Mid-Atlantic States, Inc., 2101 E. Jefferson Street, Rockville, MD 20852kp.org

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IFA_VA-1207 11/16/07 10:48 AM


This Holiday season,take time to rememberwhat is truly important.

Amidst the hustle and bustle of decorating theoffice, toasting the closing of a deal, and wrappingup the final stories, we reflect on what’s important…

Our cherished readers and friends.

Happy Holidays.

New trucking market solutions createdAIG Cos. launched a new unit for insurance solutions for the U.S. truckingmarket. AIG Transportation Solutions, to be headed by Lentz Merisier, direc-

tor, will provide a broad portfolio of insurance solutions to trucking operations of all sizes.

AIG Transportation Solutions offers workers’ compensation, general liability, automobileliability, excess automobile liability, environmental/pollution, excess casualty and occupa-tional accident insurance. The unit also offers extensive property, infrastructure andmobile property coverage of all types to protect an insured’s cargo and mitigate the finan-cial risk of physical damage to their fleets.

Retirement plan consulting practice to divideWatson Wyatt Worldwide is dividing its multi-employer retirement plan con-sulting practice in the U.S. and Canada, with the business being taken over

by two new firms of current Watson Wyatt employees. Watson Wyatt executives sayoperating the practice did not fit with company goals.

Aetna to support government health projectAetna announced support for a five-year demonstration project unveiled byU.S. Secretary of Health and Human Services Mike Leavitt. The goal of the

project is to encourage small to medium-sized physician practices to adopt electronichealth records, by offering bonuses to practices that develop certified electronic healthrecords for their patients as a way to improve care quality and reduce medical errors.

Binder granted to Montpelier’s Lloyd’s syndicateMontpelier Re Holdings Ltd. launched its Property Treaty underwriting busi-ness in the U.S. Montpelier’s Lloyd’s Syndicate 5151 granted a binder to

Montpelier Underwriting Inc., Montpelier’s wholly-owned U.S. managing general agent.

Scholarships granted for auto aftermarket interestZurich announced that Zurich Direct Underwriters, its business unit focusedon the North American automotive industry, is working with the Global

Automotive Aftermarket Symposium by awarding $10,000 in scholarships for those plan-ning careers in the automotive aftermarket.

The typical scholarship award amount is $1,000, but qualified applicants may be eligiblefor additional funding. Applicants must either be graduating high school seniors or havegraduated from high school within the past two years. An exception to the two-yearrequirement can be made for those in the military or religious service.

AIG introduces Direction Forward approachThe AIG Companies introduced The Direction Forward, an enhanced serviceapproach that applies responsive customer service and exceptional techni-

cal expertise to workers’ compensation claims.

The Direction Forward builds on the AIG Companies’ specialized workers’ compensationclaims service model and allocates deeper technical and customer service-focusedresources in service centers nationwide, including newly formed Complex Claims Teamsdedicated to managing complex, high-severity workers’ compensation claims.

ACE changes marine marketing units brandACE USA, the U.S.-based retail operating division of the ACE Group of Com-panies, announced that INAMAR, its marine marketing and underwriting

division, was renamed ACE Recreational Marine Insurance. This name change will allowACE USA to present a consistent name on all agent and customer-facing communica-tions, websites and policy documents.


P/CInsurance

P/CInsurance

P/CInsurance

Workers’Comp

P/CInsurance

COMPANYNEWS

FinancialServices

HealthInsurance

For the latest Company News, go to IFAwebnews.com.

IFA_VA-1207 11/16/07 10:48 AM

Steve Fargis was appointed vice presi-dent for Professional Risk Associates,based in Midlothian, Va. Fargis was previ-ously senior vice president for K&BUnderwriters, LLC.

Allstate Insurance Co. opened a newoffice in Richmond, Va., owned and oper-ated by Virginia A. “Gin” Brockwell. Theoffice is located at 9505 Hull St. Road,Suite A2.

Valerie J. Corekinjoined Long & FosterInsurance Agency Inc.as director of commer-cial insurance for themid-Atlantic region;Corekin has worked incommercial insurancefor more than 30 years.

Kim Fiedler was named vice president ofalternative risk services for Key Risk Insur-ance Co. Fiedler has been with Key Risksince 2004, most recently serving as assis-tant vice president of client services andmanager of Virginia businessdevelopment. Glen R. “Chip” Marohnwas named regional director for Key Risk’smid-Atlantic region, including Virginia andstates to the north.

David H. Moore, andPeggy P. Porter joinedAlexandria, Va.-basedInVEST’s nationalboard. Moore is assis-tant vice president ofmarketing for The Hart-ford; Patty Padon issenior benefits consult-

ant for Manuel Lujan Agencies inAlbuquerque, N.M.; Porter is executivevice president of the Independent Insur-ance Agents of Kentucky.

Nelson Metheney joined HumphreyStump & Haynie Insurance in Salem, Va.,as vice president, surety bonding, manag-

ing the bonding division.

Kevin Grenier wasnamed head of under-writing activities forGEICO’s regional head-quarters inFredericksburg, Va. Gre-nier will overseeunderwriting, productmanagement and actuar-ial functions for GEICO’s mid-Atlantic region.

Chris Shipe, president and CEO ofLoudoun Mutual Insurance Co. in Water-

ford, Va., was named officer for theNational Association of Mutual InsuranceCo. Property Casualty Conference board ofdirectors.

Barry Layman, CEO ofThe Colony Group inNewport News, Va.,was awarded the F.W.Hirt Quality AgencyAward from The ErieInsurance Group duringan annual dinner meet-ing this fall.

Tim Matthews was named vice presidentof sales for key and select accounts for theAetna, the Linthicum, Md.-based arm ofthe national company that operates in Vir-ginia. Matthews joins Aetna from StandardLife Canada, where he was most recentlyregional director.


© 2007 DentaQuest. DentaQuest provides dental benefit programs to employers, unions, and associations located in Maryland and Washington, D.C. throughDentaQuest Mid-Atlantic, Inc. and to those located in Virginia through DentaQuest Virginia, Inc. DQ171-IAM-MA

Value pricing AND great access? Believe it. Access ePPO feels like a DHMO,only better. The low-cost fee schedule is spelled out in advance, so unexpected costsare history, but open access to 2, participating dentist locations is reality. Equallyamazing, Access ePPO’s maximum rollover means members’ benefit dollars go further.

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PeopleNewsInsurance & Financial Advisor

Valerie J. Corekin

Patty Padon

Peggy P. Porter

David H. Moore

Kevin Grenier

Barry Layman

• The easiest way to submit events is online:

Send Your News

Phone: 703-807-2001 Fax: 410.667.7977Email: [email protected]

IFA_VA-1207 11/16/07 10:48 AM


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Life InsuranceFinancial Services

Employers putting 401(k)plans on autopilotEmployers are increasingly using automatic enrollment and otherapproaches to improve the quality of employee participation in401(k) plans, according to a new survey by Hewitt Associates.The global human resources servicescompany found that employers are start-ing to realize that 401(k) plan participa-tion alone is not enough. They are takingproactive steps to prepare their employeesfor retirement through a more sophisti-cated design of the automated features oftheir 401(k) plans.

Hewitt’s biennial survey of more than300 mid-sized to large-sized companies of-fering 401(k) plans revealed that only 25%of companies viewed a high participationrate as the primary measure of success fortheir 401(k) plans, down from 43% in 2005.Instead, many are focusing on their 401(k)plan’s ability to facilitate a sufficient retire-ment income for their employees.

Quality participation targeted

As a result of this shift in priorities, agrowing number of companies are struc-turing their 401(k) plans in a way to notonly ensure that employees participate,but also help improve the quality of par-ticipation once they are enrolled. Accord-ing to Hewitt’s survey, approximately one-third (34%) of companies automaticallyenrolled employees in their 401(k) plans in2007, up from just 19% in 2005.

Of those, more than 77% defaulted em-ployees into a diversified portfolio, suchas target- risk, target-maturity or bal-anced funds. This is up from 39% in 2005.While this category grew, the biggest win-ner was target-maturity portfolios withmore than 50% of plans utilizing them asa default. Further, 83% of companies settheir default contribution rates as 3% orhigher, compared to just 66% two yearsago. In addition, almost 30% of compa-nies (28%) used contribution escalationin conjunction with automatic enroll-ment, with more than 40% of companiesescalating employees to target rates be-tween 8% and 15%.

Putting plans on autopilot

“It’s obvious that today’s employers un-derstand that the majority of their em-ployees take a back seat in managing theirretirement. This is why we continue to seea steady number of companies puttingtheir 401(k) plans on autopilot and adopt-ing features like automatic enrollment,”said Pamela Hess, director of retirementresearch at Hewitt Associates. “Employersare helping their employees obtain suffi-cient retirement income by picking moreappropriate default contribution rates andinvestment funds, and coupling automaticenrollment with other automated toolsthat force employees to save and investmore wisely.”

Four out of ten companies (40%) offeroutside investment advisory services, upfrom 28% in 2003. The types of servicesvary with 20% offering online advice and11% offering managed accounts.

Plan expenses down

Hewitt’s study also shows that an in-creasing number of companies are takinga closer look at 401(k) plan fees, a trenddue in part, to an upsurge in governmentand media scrutiny of companies’ 401(k)plans. In fact, 61% of employers noted theyare very or somewhat concerned aboutplan expenses. A similar number of em-ployers (60%) have attempted to calculatethe total cost of maintaining their 401(k)plan—an increase from 34% in 2003—andmore than half (57%) have made efforts toreduce fund or plan expenses in the pasttwo years. Forty percent of employersnoted they were planning to evaluate thecost of their funds. IFA

IFA_VA-1207 11/16/07 10:48 AM


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istration recently published a notice inthe Federal Register asking for answersto questions regarding possible federalregulation of the insurance industry.The filing said the department is takinga “broad review of the regulatory struc-ture associated with financial institu-tions.” One of the key areas the federalgovernment plans to scrutinize iswhether it should take a more activerole in overseeing the insurance indus-try, according to the filing.

The innocuous request came asCongress continues to debate whetherto regulate insurance through an op-tional federal charter, an effort thatfailed last year. State insurance com-missioners continue to align lawsthrough the National Association of In-surance Commissioners.

Gross said the state has done a solidjob with regulation in its ability to attractcarriers and also had consumer issues.

Gross said there are stronger argu-ments for some type of uniformity inthe life insurance market, but othermarkets, such as property/casualty, aredrastically different and need a moreindividualized approach to regulation.

The notice takes a big picture view ofpossible regulation.

“Over time, there has been an in-creasing convergence of productsacross traditional ‘functional regulatorylines of banking, insurance, securities,and futures,” the notice said. “What doyou view as significant market develop-ments over the past two decades (e.g.securitization, institutionalization, fi-nancial product innovation and global-ization) and please describe what op-portunities and/or pressures, if any,these developments have created in theregulation of financial institutions?”

Federal regulation versus state regu-lation has been a heated topic over thepast year as regulators and insuranceofficials discuss the feasibility of an op-tional federal charter. Critics of federalregulation say the government simplycannot handle dealing with thousandsof claims and complaints from con-sumers, in addition to its daily activitiesof running the country.

Congress let die a bill that wouldhave created an optional federal charterlast year, and a new bill was introducedthis year.

However, proponents of federal regu-lation said it is a way to develop unifor-mity in the insurance industry so com-panies do not have to jump through somany hoops to get products approved.

Walter Bell, the Alabama insurancecommissioner and president of the Na-tional Association of Insurance Com-missioners, has testified before Con-gress to keep state-based insuranceregulation.

Bell has outlined a number of majorareas where state insurance regulatorshave implemented initiatives that havesuccessfully strengthened state insur-ance regulatory processes, includingspeed to market; solvency and guarantyfunds; consumer assistance and educa-tion; fraud detection; regulatory actionsagainst companies, agents and brokers;turnaround on rate and form filings;and producer and company licensing.

“We have been the face of regulatoryreform, coupling an aggressive enforce-ment mindset with advanced tech-niques to provide comfort to Americanconsumers in times of peril,” Bell saidat a recent hearing. “However, there arelimited areas where insurance regula-tion could benefit from a federal pres-ence.” IFA

Gross: Federal plan questionedFrom Page 1

Letter to the editorLiability excluded in one-bite rule for dogs

Editor:

In response to your article (“Dangerous dogs add bite to liability in Va.,” from the No-vember 2007) , I sell property casualty insurance in Virginia and ran into an interest-ing situation regarding homeowners insurance for a client whose dog has been de-clared a dangerous dog under Virginia law.

Even though dog bites are covered by liability portion of homeowners insurance, car-riers usually have a “one bite” rule. This excludes liability coverage for dog bites after thedog has bitten someone one time.

And, a dog doesn’t get declared a dangerous dog unless it has already bitten someone.The result is a second bite wouldn’t be covered by liability policy. I don’t believe this

is what legislation took into account.

James L. Fish,Legacy Partners LLCMidlothian, Va.

USI leaves Seaboard Center for new offices in NorfolkAfter serving 24 years in the historicSeaboard Center in Norfolk, Va, USI In-surance Services has relocated its officesto the Main Street Tower.

The new location is at 300 East MainSt., Suite 1300, Norfolk, Va. 23510. Itsphone numbers are 757-625-1800 or tollfree, 800-733-7475.

“We were very fortunate to occupy theSeaboard Center for the last 24 years” saidF. Dudley Fulton, president and CEO. “Ithink everyone who has worked for or vis-

ited USI would agree that the characterand architecture of the building is trulyunique. We look forward to continuing toprovide high quality insurance and finan-cial products and services to our clients.”

The Seaboard Center, a historic land-mark designated by both the Virginia His-toric Landmark Commission and the Na-tional Historic Register, was built in the1890’s. Henderson & Phillips Insurance,founded in 1896, occupied the buildingfrom 1984 to 1996. IFA

IFA_VA-1207 11/16/07 10:48 AM


The cost of benefits. The value of benefits. How do you keepthem in balance? As the region's premier employee benefitsadministrator, KELLY has the experience, the technology,the alliances and - best of all - the ideas to help you makethe right decisions, for your clients and their employees.Call us today, and everyone will benefit.

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BISYS changes name after acquisitionAscensus chosen to address company philosophy of always striving for highest level

BISYS Retirement Services, the nation’slargest independent administrator andservice provider for small- and mid-sizedretirement plans, has changed its com-pany name to Ascensus.

The name change follows the an-nouncement in August that BISYS Re-tirement Services was acquired by pri-vate equity firm J.C. Flowers & Co. LLCand would operate as a division ofCrump Group Inc.

The BISYS Retirement Services nameand logo will be phased out graduallyover the coming months.

The name change is designed to es-tablish a clear brand that emphasizes

the company’s extensive industry expe-rience as well as its forward-lookingbusiness strategy which continues toevolve the company beyond its core ad-ministrative solutions.

“Ascensus” is Latin for “a moving up-ward.” Company officials decided on thechange because they said the root of thename speaks directly to the their philos-ophy of “always striving to reach thehighest level,” with a particular focus ondelivering the best programs to its clients.

“Helping clients meet the rising tide ofever changing business objectives is in-tegral,” said Bob Guillocheau, presidentof Ascensus. IFA

LPL chooses preferred wealth mgmt. solutionConshohocken, Pa.-based eMoney Advisor, a financial-planning softwareprovider, was selected by Linsco/Private Ledger Corp., a national independ-

ent brokerage firm, as its preferred wealth management solution.

The integration of wealth-management tools from eMoney into LPL’s existing advisordesktop was a critical component of a broader LPL initiative to improve and expand plan-ning services and support for LPL advisors, according to the companies.

LPL’s WealthVision, a Web-based, wealth-planning tool powered by eMoney and exclu-sively available to LPL advisors, offers account aggregation, modular and comprehensivefinancial planning, a client Web site and an online storage facility that helps clients keeptrack of valuable documents. The WealthVision system offers financial advisors a com-prehensive view of a client’s financial picture.

National Health Partners, Consultancy ink dealNational Health Partners Inc. entered into an agreement with ConsultancyServices International Inc., an insurance agency that designs, implements

and administers employee benefit programs.

CSI’s network of insurance brokers and agents markets and sells a variety of individualhealth insurance, group health insurance, dental insurance, life insurance and other bene-fits from top insurance companies across the country. Under the agreement, CSI’snetwork of insurance brokers and agents will market and sell the company’sCARExpress membership programs to the public through its network of insurance bro-kers and agents. CSI’s decision to add the company’s CARExpress membershipprograms to its roster of employee benefit programs represents CSI’s first move into thediscount healthcare market.

Lexington Insurance to help recover stolen itemsThe National Equipment Register teamed up with Lexington Insurance Co., amember company of American International Group Inc., to help their clients

recover stolen equipment and reduce the costs associated with construction theft.

Lexington’s contractors’ equipment policyholders who have registered their equipmenton the NER HELPtech database (prior to any loss), are eligible to have policy theftdeductibles of up to $10,000 waived if the equipment is stolen and not recovered. Addi-tionally, Lexington is helping the construction industry and law enforcement fightequipment theft by offering a reward for the arrest and conviction of persons involved ineach occurrence of theft of registered and insured equipment.

NER’s secure and confidential online registration of contractors’ equipment, includingdescriptions of construction equipment and serial numbers, is stored in a national data-base for the use of law enforcement officials. In addition, registrants are given a warningdecal for each piece of equipment to help deter thieves.

Colonial Penn to recapture REALIC life policiesConseco Inc. announced that its Colonial Penn Life Insurance Co. subsidiarywill recapture a block of about $50 million of annualized traditional life insur-

ance premium in force that was ceded in 2002 to Reassure America Life Insurance Co.,an affiliate of Swiss Reinsurance Co.

In the transaction, Colonial Penn will pay REALIC a recapture fee of $63 million, recap-ture 100% of the liability for the future benefits previously ceded and recognize profits asthey emerge over time, according to Conseco officials.

Colonial Penn already administers the policies being recaptured. The transaction, whichhad an effective date of Oct. 1, requires insurance regulatory filings in several states andis expected to close by year-end.


FinancialServices

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For the latest Done Deals, go to IFAwebnews.com.

IFA_VA-1207 11/16/07 10:48 AM

changed,” G. Jane Thornhill, presidentof Virginia AIFA, said. “As a member ofNAIFA your voice is heard when ourlegislators are making policies and de-cisions that effect your clientele and theway you do business. It provides easyand effective educational opportuni-ties, as well as networking and otherprofessional growth opportunities.”

For some the benefits reaped weremore important than the dues increase.

“I can only say that there are plansto increase member benefits throughalliances and marketing of the insur-ance industry,” said Barton C. Pasco,principal of Pasco Financial GroupLLC, in Richmond, Va., and president-elect of Virginia AIFA.

“But most do not need to know thatthere was a price increase—it is just theprice and a cost of doing business. Rel-ative to the cost increase of E&O cover-age no one speaks about what the costwas last year it is needed and you ab-sorb it. The primary reason to belongis to protect and serve the ‘orphansand beneficiaries’ of our clients. Not tosave our jobs,” Pasco said.

The rate hike and plans were ap-proved in September at the NAIFA Con-vention and Career Conference, whereits National Council, which has repre-sentation from each state, vote on by-

law changes.Among the highlights of the NAIFA

21 plan, which will be rolled out overthe next two years, are:

• A career resource center to meetthe needs of agents and advisorsin every practice specialty,distribution channel or careerstage (novice, middle oraccomplished.)

• Enhancements to NAIFA’spolitical programs to strengthenadvocacy leadership position.Plans are to enhance lobbyingefforts, and to more effectivelycommunicate NAIFA’s legislativeand regulatory activities.

• Unique networkingopportunities at the local, stateand national levels.

• A multifaceted marketingcommunications campaign,which will differentiate NAIFAfrom competitors and piqueinterest among non-members.

“Hopefully, our membership will notdecline but grow due the enhancementsto NAIFA’s political programs, and themarketing communications campaign.My preference would have been not toincrease the membership dues at thistime, however, in order to continue withour programs, the increase was neces-sary,” said Thornhill. IFA


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Virginia insurer completesTennessee acquisitionWith additional 167,000 members,AMERIGROUP covers 1.7 million

Virginia Beach, Va.-based AMERIGROUPCorp. says its Tennessee subsidiary hascompleted the previously announced ac-quisition of the assets of Memphis Man-aged Care Corp., including TLC FamilyCare Health Plan.

The deal received necessary regulatoryapprovals and became effective Nov. 1.

With the completion of this trans-action, AMERIGROUP CommunityCare of Tennessee now serves an ad-ditional 167,000 Tennessee residentswho are enrolled in the state’s Ten-nCare program and who live inMemphis and the surrounding West

Tennessee region. On April 1, AMERIGROUP Commu-

nity Care of Tennessee began servingTennCare enrollees who live in Nashvilleand the surrounding Middle Tennesseeregion. Total membership in both regionsnow stands at about 352,000.

AMERIGROUP Community Care ofTennessee operates in West Tennesseethrough an administrative services onlyagreement with the state, which meansthat the company maintains and admin-isters a network of physicians, hospitalsand other healthcare providers.

Nationwide, AMERIGROUP Corp. nowserves about 1.7 million people throughpublicly-funded healthcare programs in11 states. IFA

Va. firm expands contagion risk coverageMarkel Corp. now makes it available to public entities, including school districts

Richmond, Va.-based Markel Corp. isexpanding the classes eligible for Conta-gion Risk with OUTBREAK Extra Expensecoverage to include public entities, in-cluding school districts.

According to Scott Rohr, vice presi-dent of Markel Re’s Public Entity Opera-tions, the company will write OUTBREAKExtra Expense for any commercial entity.

“However, the coverage is perfectlysuited for schools. They are a naturalbreeding ground for contagion becausestudents are always in close contactwith one another and with staff,” Rohrsaid. “Contagious events continue tooccur, including the Norwalk virus, an-

tibiotic-resistant staph (MRSA), andeven TB.”

OUTBREAK Extra Expense provides aper-day limit for each location where op-erations have been suspended by a pub-lic health official. The product also addsa workplace violence component andlimited coverage for suspension resultingfrom illness generated by mold/fungus.The policy proceeds can be used at theinsured’s discretion to offset loss incurreddue to a covered suspension such as lostrevenue, decontamination/disinfection,and public relations expense. IFA

NAIFA: Dues, benefits to increaseFrom Page 1

IFA_VA-1207 11/16/07 10:48 AM


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News From The Nation’s Capitol

On the Hill

House panel acts onHolocaust claims issue

A U.S. House of Representatives’ panelendorsed legislation that would require insur-ance companies to disclose information onHolocaust-era policyholders. The legislation isto resolve concerns among some survivorsthat payment by the International Commis-sion on Holocaust Era Insurance Claims didnot address all outstanding claims.

The measure, approved by the House For-eign Affairs Committee, would allowsurvivors or their heirs to sue foreign compa-nies in U.S. courts to recover payments onclaims. The legislation’s prospects are uncer-tain. It would have to be approved by the fullHouse as well as the Senate and signed bythe president to become law.

IRS increases deductibilitylevels for 2008 LTC policiesThe Internal Revenue Service announcedincreased deductibility levels for long-termcare insurance policies purchased in 2008.

There is still time to take advantage of taxdeductions in 2007 and also benefit from theincreased deductible limits next year. In addi-tion to the federal tax deduction, many statesnow offer tax incentives for individuals pur-chasing tax-qualified long-term care coverage.

Trade groups offer coastalinsurance solutionTwo insurance trade groups commissioneda paper which suggests that a possible solu-tion to the coastal insurance availability crisisis for the federal government to offer insur-ance and mitigation tools to low- andmoderate-income homeowners.

The report, commissioned by the AmericanInsurance Association and the ReinsuranceAssociation of America was written byRobert Litan, a senior fellow in EconomicStudies at the Brookings Institution in Wash-ington, D.C.

Congress is being asked to help homeown-ers in coastal states the creation of statecatastrophic reserve funds and federal insur-ance.

Members of Congress and state officials are

also looking for insurance companies to pro-vide more affordable coverage, as well asexpand exposures in high-risk areas.

At least seven bills regarding coastal insru-ance have been introduced in Congress thisyear.

Voters want candidates tooffer LTC proposalsNearly 80% of American voters in a recentsurvey say they want to see more attentionpaid to long- term care included in thehealthcare proposals offered by the presi-dential candidates.

More than 80% also said that positions on LTCfunding would be an important factor in decid-ing whom they’ll vote for in the 2008 election,according to survey, released at the recentNational Long Term Care Symposium hostedby Genworth Financial Inc. in Washington

The survey, conducted by Public OpinionStrategies and the Mellman Group, alsofound nearly 70% of Americans have notmade any plans for their own, a spouse’s oranother relative’s LTC needs. Yet over 50%said they have had a loved one who neededsome form of long term care.

The poll also showed that Americans arewilling to bear part of the responsibility todevelop a national LTC program. Of voterssurveyed, 60% supported new taxes or pay-roll deductions to subsidize an LTC program.Of those who supported new taxes or pay-roll deductions, 68% also said they wouldbe willing to pay between $25 to $50 permonth to support such a program.

Senate committee approvesbill to reform NFIPThe U.S. Senate Banking Committeerecently approved legislation to reform theNational Flood Insurance Program. TheFlood Insurance Reform and ModernizationAct of 2007 was scheduled to move to thefloor of the full Senate.

The U.S. House passed a similar measure,but while both the House and Senate ver-sions reauthorize the NFIP through 2013,the Senate bill does not increase maximumcoverage limits and leaves out optional cov-erages, including business interruptions.

SFSP holds ethics awards celebrationThe National Capital Chapter of the Society of Financial Service Professionals (SFSP), in associationwith George Mason University, recently hosted the 2007 National Capital Business Ethics Awards,which recognizes firms that exhibit a strong commitment to ethical business practices. The recogni-tion banquet was held at the Ritz Carlton in Tysons Corner, Va., and drew participants from acrossMaryland, Virginia and Washington, D.C. This year’s winner were: Small Company, F.B. Harding, Inc.,Rockville, Md.; Medium Company: VIPdesk, Alexandria, Va.; Large Company, Ruppert Nurseries, Lay-tonsville, Md.; and Not-for-Profit, So Others Might Eat, Washington, D.C. Among those who attendedand supported the event were, from left: Lou Berger, Benefit Design Group, Towson, Md.; Mark Khatib,Employee Benefits Corporation of America, Tysons Corner , Va.; and Gary Gentilini, Virginia Farm Bu-reau, Richmond, Va.For more photos, click on “Photo Gallery” at IFAwebnews.com.

Send photos of your company events and happenings: [email protected]

associationnews

IFA_VA-1207 11/16/07 10:48 AM


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on CNN, said he bought a $10 millionlife insurance policy from Meltzer thatwas eventually sold for $550,000 andanother $5 million policy that was soldfor $850,000, according to the courtdocuments. King’s attorneys say thepolicies’ the sale price was below mar-ket value and also caused heavy taxburdens for King.

The attorneys also allege Meltzer ad-vised the sale of King’s policies to gener-ate substantial sales commissions. Theattorneys also question whether it wasproper to sell the policies to CoventryFirst LLC because the firm is currentlyunder investigation by the New York at-torney general for “illegal conduct.”

Firm denies allegations

“The fiduciary defendants did notdisclose to Plaintiff that the ostensiblepurchaser of the policy, Coventry, is acompany of questionable repute with ahistory of making secret payments andkickbacks to insurance agents and bro-

kers who steer business to it,” King’s at-torneys said in court documents.

Fort Washington, Pa.-based Coven-try First officials also have deniedKing’s allegations.

“Although Coventry is not a party tothe suit, the company believes certainstatements in the complaint are sus-ceptible to misleading and erroneousinferences about Coventry’s businesspractices,” company officials said in astatement. “The purchase and immedi-ate sale of the $10 million dollar policyis a type of transaction that Coventryopposes and the company has been theleading proponent of legislation andregulation to protect life insurance con-sumers against these sorts of schemes.”

Coventry First officials said they didnot purchase the $10 million dollarcontract…”which the plaintiff admits,was taken out for the express purpose“to immediately sell his beneficial inter-est in the new $10 million dollar insur-ance policy to a third person.”

Attorneys for Meltzer did not com-ment on the allegations. IFA

King: Suit filed over life settlementsFrom Page 1

A. Rogal, founder of Hilb,Rogal & Hamilton, diesCompany formed in 1982 with Bob Hilb, David HamiltonAlvin Rogal, one of the three foundersof Hilb, Rogal & Hamilton, died Nov. 8,after complications from a brief illness.He was 84.

He founded Hilb, Rogal & Hamilton in1982 with Bob Hilb and David Hamiltonin Richmond, Va. The company changedto its current name, Hilb, Rogal andHobbs, in September 2003. It is now theeighth largest insurance intermediarywith 120 offices in the U.S. and world.

Mr. Rogal was a particularly strongleader in HRH’s Pittsburgh office, origi-nally started by his father as The Rogal

Co., according to company officials. He was president of the Pittsburgh of-

fice from 1982 to 1987, and served on theboard of directors for many years. Afterhe gave the Pittsburgh office’s presidencyto his son, he became chairman of the of-fice until retiring last July.

Among his achievements, he was anemeritus life trustee of Carnegie Mel-lon University, an officer and directorof The Pittsburgh Foundation, a fellowof Brandeis University and past presi-dent of the board of trustees of Monte-fiore Hospital. IFA

In Memoriam■ Joseph Victor Arthur Jr., 81, of Winchester,

Va.; executive vice president of J.V. ArthurInsurance Inc. and former president of theVirginia Association of Insurance Agents and the Winchester Association of Insurance Agents.

■ Joseph Eugene Wilkin, 86, of Silver Spring,Md.; agent for an independence insuranceagency in Washington, D.C.

■ Lester Franklin Simmons, 85, of SilverSpring, Md.; claims adjuster in West Virginia,Virginia and Maryland.

// FINANCIAL SERVICES

Watson Wyatt to spin off multi-employer retirement businessWatson Wyatt Worldwide, a global con-sulting firm, plans to spin off its Taft Hart-ley multi-employer retirement businessinto a new company.

Horizon Actuarial Services will beowned and operated by current WatsonWyatt associates. These associates, who

focus on multi-employer retirementplans, will move to the new companyover the next several months. Watson Wy-att will have no ownership stake in thecompany, but will receive a percentage ofthe new company’s revenues for the nextfive years. IFA

Aetna officials says ‘Hola’ toSpanish-language Web siteHartford, Conn.-based Aetna haslaunched a new Spanish-language Website to make it easier for many Hispanicconsumers to learn about the healthinsurer’s products, services and net-work of providers.

Aetna.com en Español also providesgeneral information and tips abouthealth benefits to help Hispanics choosebenefits plans that best serve them andtheir families.

The campaign is part of Aetna’s in-creasing outreach and service to His-panic members, said Raymond Arroyo,Aetna’s chief diversity officer. The com-pany is introducing new culturally basedproducts. IFA

IFA_VA-1207 11/16/07 10:48 AM


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Calendarof Events

DEC. 5 – December Lunch AndLearn-Young Agents Committee-IIAV.10 a.m.-1:30 p.m. IIAV Office, Richmond, Va.Contact: www.iiav.com, 800-288-4428.

DEC. 6 – Holiday Social-SWVAHU.Contact: www.vahu.org.

DEC. 6 – Quarterly LuncheonMeeting-SFSP Richmond. 12:00 p.m.Westwood Club. Contact: Contact: GinnyCrenshaw, 804-741-2043.

DEC. 7 – December MembershipMeeting-FPA Central Va. 8:30 a.m.-12:00 p.m. Westwood Club. Contact:804-749-8149.

DEC. 8 – Volunteer AppreciationAnd Holiday Luncheon-FPANCA.11:30 a.m.-2:00 p.m. Westwood CountryClub, Vienna, Va. Contact: Peggy Nelson,703-620-1712, or email,[email protected].

DEC. 11 – Monthly Networking AndEducation Meeting-FPA-Peninsula.7:30-9:00 a.m. The Point Plaza, NewportNews, Va. Contact: Emily Roussos, 866-360-6845, or email,[email protected].

DEC. 12 – Monthly Networking AndEducation Meeting-FPA-HamptonRoads. 7:30-9 a.m. Cypress Point CountryClub. Contact: Emily Roussos, 866-360-6845, or email,[email protected].

DEC. 13 – 4Th Annual LegislativeForum-NAIFA Va. 11:30 a.m.-2:30 p.m.Richmond, Va. Contact: Robert E. West Jr.,757-397-1291.

DEC. 13 – Mini-Course - SFSP-Richmond. 8:30-10:30 a.m. 4807Emerywood Parkway, Richmond, Va. Contact:Ginny Crenshaw, 804-741-2043.

DEC. 13 – Breakfast Seminar-SFSPNorfolk-Tidewater. 7:30 -9:15 a.m.Holiday Inn Executive Center, Virginia Beach,Va. Contact: Jane E. Martin, 757-363-7345.

DEC. 13 – Membership Meeting-Shenandoah Valley AIFA. 10:15 a.m.Mrs. Rowe’s Restaurant, Mt. Crawford.Contact: Robert E. West Jr., 757-397-1291.

DEC. 13 – Breakfast Seminar-SFSPNorfolk-Tidewater. 7:30-9:15 a.m. HolidayInn Executive Center, Virginia Beach, Va.Contact: Jane E. Martin, 757-363-7345.

DEC. 13 – Financial EducationSeminars: “All You Need To KnowAbout Having A Mortgage”-Disb. 3p.m.-4:30 p.m. Martin Luther King Jr.Memorial Library, Washington, D.C. Contact:202-727-1171.

JAN. 9 – Monthly Networking AndEducation Meeting-FPA-HamptonRoads. 7:30-9 a.m. Cypress Point CountryClub. Contact: Emily Roussos, 866-360-6845, or email,[email protected].

JAN. 10 – Breakfast Seminar-SFSPNorfolk-Tidewater. 7:30 -9:15 a.m.Holiday Inn Executive Center, Virginia Beach,Va. Contact: Jane E. Martin, 757-363-7345.

Homeowners’ rates in hurricane states do not reflect riskThe national prospective return onequity for the homeowners’ line of in-surance for 2007 is 7%, up from 5.4% in2006, according to an analysis by Aon ReGlobal, a unit of Aon Corp.

The year-over-year improvement inprospective ROE is a result of margin-ally more adequate homeowners in-surance rates than in 2006 and an ex-pected lower cost of reinsurance, theanalysis found.

The update for 2007 -- the sixth yearAon Re has undertaken this study -- isbased on a review of the rate filings ofthe top five companies in states making

up more than 80% of the U.S. popula-tion. The study looks at prospective re-turn on equity by state.

As in 2006, a significant difference inprospective ROE is found between "hur-ricane states" and “non-hurricanestates” –at 5.4% versus 8.7% respectively.

“Our assignment of capital by state isbased on retained risk by state,” saidRandall E. Brubaker, senior vice presi-dent and actuary at Aon Re Services. “Wecontinue to find that approved rates inhurricane states in general do not ade-quately reflect the level of risk and capi-tal requirements derived from operating

in these states.”The continuing reductions of poli-

cies in force by insurance companies inthe hurricane states and the growth ofstate-sponsored residual markets isdriven in part by the lower prospectiveROE in these states.

"We see the market share of publicentities growing in the hurricanestates," said Kenneth Selzer, executivevice president at Aon Re Global. "Aon Reis working to serve both private insurersand the public entities to make efficientuse of capital in this changing operatingenvironment.” IFA

IFA_VA-1207 11/16/07 10:48 AM

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The Financial Industry Regulatory Au-thority fined Oppenheimer & Co. Inc. $1million for submitting mutual fundbreakpoint data to FINRA that the firmknew to be inaccurate, as well as for re-lated supervisory deficiencies. FINRAalso ordered the firm to engage an inde-pendent consultant to evaluate its poli-cies, systems and procedures for re-sponding to information requests fromregulators.

“The self-regulatory model dependson accurate, timely, and complete re-sponses by firms to informational re-quests from FINRA,” said Susan Merrill,FINRA executive vice president and chiefof enforcement. “This settlement sends aclear message to broker-dealers that theymust have sound programs that insureconscientious responses to regulatory re-quests as well as reasonable safeguardswhen responsibility is delegated.”

FINRA’s (then NASD) initial request toOppenheimer for a breakpoint assess-ment was made in March 2003 as part ofa review of approximately 2,000 broker-dealers that sold front-end load mutualfunds in 2001 and 2002. That request fol-lowed findings by NASD and other regu-lators that showed that nearly one inthree mutual fund transactions in front-

end load mutual funds that appeared el-igible for a breakpoint discount did notreceive one.

FINRA found that on two occasions,June 11, 2003, and Nov. 20, 2003, Oppen-heimer submitted inaccurate and in-complete data in response to NASD’s re-quest to perform a self-assessment of itsmutual fund breakpoint discount prac-tices. The firm knowingly, or at a mini-mum recklessly, submitted flawed data toNASD, failed to notify NASD that the datawas flawed, failed to follow up to correctthe firm’s data and failed to timely submitaccurate data to NASD.

In its June 11 submission, Oppen-heimer provided data that it knew to beflawed, without advising NASD of theknown flaws. On June 13, 2003, NASD ad-vised the firm that its submission was“pervasively flawed” and “rife with er-rors” and directed Oppenheimer to im-mediately generate and submit a newself-assessment.

The investigation further found thatthe firm’s second self-assessment, sub-mitted more than five months after thefirm’s initial submission, contained obvi-ous deficiencies, such as the inclusion ofineligible transactions that should havebeen excluded from the sample. IFA

FINRA fines Oppenheimerfor submitting false dataInaccuracies, supervisory deficiencies found in 2003

Insurer aligns with ID theft managerDeal with Identity Theft 911 allows homeowner policyholders to get access to specialists

Identity Theft 911, a provider of identitytheft recovery management, educationand resolution services, recently formeda partnership with Cumberland Insur-ance Group, which has offices in Mary-land, New Jersey, Pennsylvania and Ohio,that grants homeowner policyholdersfree access to fraud specialists who pro-vide guidance in dealing with the grow-ing threat of identity theft.

Identity theft has been the number oneconsumer complaint for seven consecu-tive years and there are an estimated27,000 new victims daily. According to theGartner Research Group, the number ofvictims has risen by 50% since 2003.

Cumberland Insurance Group home-owner policyholders seeking advice orvictim resolution will have access to the

Identity Theft 911 fraud specialists. Thecompany’s restoration services stream-line the resolution process and reducethe stress and financial impact that vic-tims invariably endure.

If a policyholder becomes a victim ofidentity theft, an Identity Theft 911 per-sonal advocate will guide them throughthe entire process of restoring their iden-tity. Identity Theft 911’s resolution serviceincludes unlimited access to a personaladvocate and fraud alerts placed with allthree credit bureaus. IFA

IFA_VA-1207 11/16/07 10:48 AM

• CIRO JORGE AGUILARManassas, Va.ACTION: Aguilar is ordered to pay a settlement of$750. SYNOPSIS: Aguilar made false statements or repre-sentations on or relative to an application for an in-surance policy for the purpose of obtaining a fee,commission, or other benefit, failed to retain allrecords available promptly upon request for examina-tion by the commission or its employees, failed tohold all premiums, return premiums, or other fundsreceived by Aguilar in a fiduciary capacity, failed tomaintain an accurate record and itemization of fundsdeposited into a separate fiduciary account, andfailed to pay funds in the ordinary course of businessto the insured or his assignee, insurer, insurance pre-mium finance company or agent entitled to the pay-ment.INS-2007-00159

• JUDIE MARIE CHISOLMCharlotte, N.C.ACTION: Chisolm is ordered to pay a settlement of$500.SYNOPSIS: Chisolm provided materially incorrect,misleading, incomplete or untrue information in herlicense application filed with the commission.INS-2007-00171

BRYAN LEE NEWCOMBVirginia Beach, Va.ACTION: Newcomb is ordered to pay a settlement of$500.SYNOPSIS: Newcomb provided materially incorrect,misleading, incomplete or untrue information in hislicense application filed with the commission.INS-2007-00172

SCHALISA M. TATESouth Bend, Ind. ACTION: Revocation of Tate’s license.SYNOPSIS: Tate failed to report to the commissionwithin thirty days an administrative action that wastaken against her by the state of New York.INS-2007-00173

CORNHUSKER CASUALTY CO.Alpharetta, Ga. ACTION: Cornhusker Casualty is ordered to pay asettlement of $1,000.SYNOPSIS: Cornhusker Casualty made or issued aninsurance contract or policy not in accordance withthe rate and supplementary rate information filings ineffect for Cornhusker Casualty.INS-2007-00175

TYCHAR DEVONNAE SMITHNorfolk, Va.ACTION: Revocation of Smith’s license.SYNOPSIS: Smith failed to pay funds in the ordinarycourse of business to the insured or his assignee, in-surer, insurance premium finance company or agententitled to the payment. INS-2007-00184

CLEARTRACT, INC.Wilkes Barre, Pa.ACTION: Revocation of Cleartract’s license.SYNOPSIS: Cleartract failed to timely provide thecommission with a copy of Cleartract’s analysis oraudit report of its escrow account. INS-2007-00198

JOHN C. FLOOD, JR.Winchester, Va.ACTION: Flood is ordered to pay a settlement of$500.SYNOPSIS: Flood failed to maintain funds in a fidu-ciary capacity, failed to maintain an accurate recordand itemization of funds deposited into a separate fi-duciary account, and commingled business or per-sonal funds with funds required to be maintained in aseparate fiduciary account.INS-2007-00158

TRANSAMERICA LIFE INSURANCE CO.Cedar Rapids, IowaACTION: Transamerica Life is ordered to pay a set-tlement of $2,000.SYNOPSIS: Transamerica Life failed to timely notifyand report terminations of agent appointments.INS-2007-00165

KAISER PERMANENTE INSURANCE CO.Oakland, Calif.ACTION: Kaiser Permanente is ordered to pay a set-tlement of $5,000.SYNOPSIS: Kaiser Permanente failed to file timelywith the commission Kaiser Permanente’s PrimarySmall Employer New Business Report.INS-2007-00167

TECHNOLOGY INSURANCE CO.Cleveland, OhioACTION: Technology Insurance is ordered to pay asettlement of $1,000.SYNOPSIS: Technology Insurance made or issuedan insurance contract or policy not in accordancewith the rate and supplementary rate information fil-ings in effect for Technology Insurance.INS-2007-00176

COMMONWEALTH DEALERS LIFEINSURANCE CO.Richmond, Va.ACTION: Commonwealth Dealers Life is ordered topay a settlement of $2,400.SYNOPSIS: Commonwealth Dealers Life failed tofile the 2006 Actuarial Opinion Memorandum withthe commission on or before March 1, 2007. INS-2007-00188

MICHAEL TODD HALL; ALL AMERICANFINANCIAL GROUP, LLCWinchester, Va.ACTION: Hall and All American Financial are or-dered to pay a settlement of $750.SYNOPSIS: Hall and All American Financial failed toretain records relative to insurance transactions forthe three previous calendar years, failed to makerecords available promptly upon request for examina-tion by the commission or its employees, failed topay funds in the ordinary course of business to theinsured or his assignee, insurer, insurance premiumfinance company or agent entitled to the payment,failed to hold all premiums, return premiums, or otherfunds received in a fiduciary capacity, failed to main-tain an accurate record and itemization of funds de-posited into a separate fiduciary account,commingled business or personal funds with fundsrequired to be maintained in a separate fiduciary ac-count.INS-2007-00190

MARIKA LYNN MERRITTChesapeake, Va.ACTION: Revocation of Merritt’s license. SYNOPSIS: Merritt failed to report to the commis-sion within 30 days an administrative action that was


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FOR THE RECORDVirginia agent & carrier finesThe following summaries are based on information obtained from the StateCorporation Commission, Virginia Bureau of Insurance (BOI).

IIAV honors D. Mattis with Spirit AwardDirector of education and technicalaffairs recognized for national work

The Independent Insurance Agentsand Brokers of America “Big I” has hon-ored Diane Mattis, of Virginia’s “Big I”with the Spirit of Education award.Mattis serves as director of educationand technical affairs for the Virginia as-sociation, IIAV.

“Diane genuinely embodies themeaning and purpose of this award andI thank her for the important work shedoes in her state and for the national or-ganization,” said Madelyn Flanagan,vice president for education/research.

The Spirit of Education award was

created by IIABA’s ed-ucation and researchdepartment to recog-nize a person or or-ganization workingclosely with the na-tional organization todeliver quality educa-tion to IIABA mem-

bers. Mattis was selected for her dedica-

tion in helping fellow state associa-tion and education directors expandtheir programs to be similar to Vir-ginia’s, officials said. She also sharesher knowledge with other state asso-ciations and education directors. IFA

Diane Mattis

IFA_VA-1207 11/16/07 10:48 AM

taken against her by the state of South Carolina, andprovided materially incorrect, misleading, incompleteor untrue information in her license application filedwith the commission.INS-2007-00220

TECUMSEH IRVIN BEYRichmond, Va.ACTION: Revocation of Bey’s license.SYNOPSIS: Bey failed to make records availablepromptly upon request for examination by the com-mission or its employees.INS-2007-00226

RANDY C. WIMMERFredericksburg, Va.ACTION: Wimmer is ordered to pay a settlement of$500.SYNOPSIS: Wimmer provided materially incorrect,misleading, incomplete or untrue information in his li-cense application filed with the commission.INS-2007-00210

GROUP HOSPITALIZATION ANDMEDICAL SERVICES, INC.Owings Mills, Md.ACTION: Group Hospitalization and Medical Serv-ices is ordered to pay a settlement of $1,500.SYNOPSIS: Group Hospitalization and Medical Serv-ices failed to file timely with the commission is Pri-mary Small Employer New Business Report.INS-2007-00168

CHRISTOPHER T. SKAGGSCoralville, IowaACTION: Skaggs is ordered to pay a settlement of$500.SYNOPSIS: Skaggs provided materially incorrect,misleading, incomplete or untrue information in his li-cense application filed with the commission.INS-2007-00223

ANTHONY CARUSOIndianapolis, Ind.ACTION: Revocation of Caruso’s license.SYNOPSIS: Caruso failed to report to the State Cor-poration Commission within 30 days of resolution an

administrative action that was taken against him bythe state of South Dakota.INS-2007-00230

JILLRAE DILL COLTARTDallas, TexasACTION: Revocation of Coltart’s license.SYNOPSIS: Coltart failed to report to the commis-sion within thirty days an administrative action thatwas taken against her by the state of Utah.INS-2007-00231

KRISTINA PATRICIA JOHNSONBurlington, IowaACTION: Revocation of Johnson’s license.SYNOPSIS: Johnson failed to report to the commis-sion within thirty days an administrative action thatwas taken against her by the state of Vermont.INS-2007-00234

THOMAS J. CAVALARIPhoenix, Ariz. ACTION: Revocation of Cavalari’s license. SYNOPSIS: Cavalari provided materially incorrect,misleading, incomplete or untrue information in his li-cense application filed with the commission.INS-2007-00200

KAREN S. JAMERSON; INSURPROSERVICES, INC.Buckingham, Va.ACTION: Jamerson and Insurpro are ordered to paya settlement of $500.SYNOPSIS: Jamerson and Insurpro failed to hold allpremiums, return premiums, or other funds receivedin a fiduciary capacity, failed to pay funds in the ordi-nary course of business to the insured or assignee,insurer, insurance premium finance company or agententitled to the payment, failed to report within thirtydays to the commission and to every insurer forwhich she is appointed any change in her residenceor name.INS-2007-00206

INSURANCE COMPANY OF NORTHAMERICAPhiladelphia, Pa.

ACTION: Insurance Co. of North America is orderedto pay a settlement of $1,000.SYNOPSIS: Insurance Co. of North America failed tofile timely with the commission its 2005 Audited Fi-nancial Report.INS-2007-00104

ERIC DESMOND JONESSmithfield, Va.ACTION: Jones is ordered to pay a settlement of$500.SYNOPSIS: Jones failed to retain all records rela-tive to insurance transactions for the three previouscalendar years, failed to make records availablepromptly upon request for examination by the com-mission or its employees, and failed to maintain anaccurate record and itemization of funds depositedinto a separate fiduciary account.INS-2007-00075

BRIAN K. HILLMt. Olive, N.C.ACTION: Hill is ordered to pay a settlement of$1,000.SYNOPSIS: Hill misrepresented the benefits, advan-tages, conditions or terms of an insurance policy, andmade false statements or representations on or relativeto an application for an insurance policy for the purposeof obtaining a fee, commission or other benefit. INS-2007-00088

LAWRENCE J. O’DONOHUE, JR.Leesburg, Va.ACTION: O’Donohue is ordered to pay a settlementof $1,000.SYNOPSIS: O’Donohue failed to implement a com-prehensive written information security program thatincludes administrative, technical and physical safe-guards for the protection of policyholder information. INS-2007-00117


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Boomers wrong about LTC coverageMisconceptions, failure to consider benefits noted in new long-term care study

One in four baby boomers erroneouslybelieve they have coverage for long-termcare expenses, according to new data byAmerica’s Health Insurance Plans.

The survey found that many babyboomers have misconceptions aboutwho pays for long-term care services andhave not thought about LTC insurance.

Specifically, the survey found:• Most baby boomers have not focused

on planning for long-term care ex-penses. The new survey shows that evenamong baby boomers nearing or at theage of 60 – when concerns about the po-tential impact of long-term care on re-tirement savings might be most promi-

nent in their minds – only one in foursay they are “very familiar” with long-term care insurance. In addition, 41%say they have not had any discussionsabout long-term care in the last year.

•Many baby boomers erroneously be-lieve they have coverage for long-termcare expenses. The survey found that30% of baby boomers think they havelong-term care coverage, but accordingto the National Association of InsuranceCommissioners, just 5.2 million Ameri-cans carry LTC insurance. Even if allthose covered were baby boomers, whichthey are not, that would only account for6.6% of the baby boomer population. IFA

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