St. Paul Travelers has received a subpoena from New York Attorney General Eliot Spitzer as part of his inquiry into how insurers report workers' compensation premiums. The inquiry may stem from alleged infractions by American International Group that Spitzer and the New York Insurance Department discovered earlier this year. In a May lawsuit, Spitzer and the state insurance regulator alleged that AIG had deliberately underreported workers' compensation premiums it collected. St. Paul said it was cooperating with Spitzer's request.
MMC CLIENTS OPT IN
Nearly 70,000 eligible policyholder clients of Marsh & McLennan Cos. Inc. have elected to participate in the $850 million restitution fund MMC established as part of its January settlement with the New York attorney general and superintendent of insurance. These policyholders, which include more than 90 percent of the largest clients eligible, will receive approximately $750 million of the $850 million fund, according to New York-based MMC.
Standard & Poor's has revised its outlook on the global reinsurance industry to negative from stable, citing the impact of Hurricane Katrina and, to a lesser extent, Hurricane Rita. S&P said in a report that the revised outlook means that rating downgrades are expected to outnumber upgrades for the rest of 2005, although the number of downgrades is expected to be modest. Reinsurers now under review with negative implications are Swiss Reinsurance Co.; Transatlantic Reinsurance Co. Ltd.; IPCRe Ltd.; PXRE Group Ltd.; and Renaissance Re Holdings Ltd. The Lloyd's of London market is also under review with negative implications.
OLYMPIC GAMES CARRIER
PICC Property and Casualty Co. Ltd. has been named the official insurance provider for the 2008 Olympic Games in Beijing. Beijing-based PICC Property & Casualty will also provide insurance coverage for the Beijing Paralympic Games, the Beijing Organizing Committee for the Games of the XXIX Olympiad, the Chinese Olympic Committee, and the Chinese delegations to the 2006 Winter Olympics in Turin, Italy.
STUDY CASTS DOUBT
Two out of three adults covered by employer-sponsored health plans prefer that their employer select a set of health plans for them rather than provide them with an account to purchase insurance on their own in the individual market, according to a new Commonwealth Fund study. The study also found that the ability to choose among health care providers matters more to people than having a choice of health plans.
--Compiled by staff from news and wire reports
November 1, 2005
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