GEICO'S BLUE-COLLAR RATES CAUSE STIR

Education and occupation matter when it comes to what customers of New Jersey's fourth-largest auto insurer pay, according to a published report. Geico considers professional and college-educated customers less of a risk than blue-collar workers, so those drivers pay less, The Star-Ledger of Newark reported.

"It is really unconscionable," Phyllis Salowe-Kaye, executive director of New Jersey Citizen Action, told the newspaper. "I would love to know who they are marketing themselves to? Are they writing letters to doctors and lawyers? Everybody should be putting down that they are Rhodes scholars."

Assemblyman Neil Cohen, D-Union County, said he will introduce a bill to ban the practice. "It is discriminatory, and it has no relationship to how somebody drives," said Cohen, chairman of the Assembly Financial Institutions and Insurance Committee. "None of that should be considered."

However, according to the Department of Banking and Insurance, using education and occupation to determine rates is acceptable if the company proves they correlate to losses. "They were able to justify it. We didn't have a reason to say 'No, you can't,'" department spokeswoman Jaimee Gilmartin said. "I don't know that we've gotten a single question or complaint with regard to use of education or occupation."

The Star-Ledger of Newark found that a 30-year-old single, male lawyer with a master's degree would pay $1,686 a year for coverage from Geico, but $2,880 if he was a janitor with a high school diploma.

Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

VT. WORKERS' COMP RATES MODERATE

Vermont workers' compensation rates are moderating for the third year in a row, Commissioner John P. Crowley of the Department of Banking, Insurance, Securities and Health Care Administration announced.

Crowley approved a loss cost increase of 1.4 percent for the voluntary market and a rate decrease of 2.6 percent in the assigned risk market, effective April 1, 2006.

Big drop
The 2006 rate changes are a significant drop from the double-digit figures of the recent past, which stemmed from a hard insurance market affecting all lines of property and casualty insurance, both in Vermont and across the country, Crowley noted.

A further sign that the market is stabilizing is the fact that, after years of increases, the number of employers in the assigned risk market decreased by 24 percent in 2005.

N.Y. FARMER ARRAIGNED ON ARSON THAT KILLED 24 COWS

A Worcester, N.Y., farm owner has been arraigned on charges in connection with a fire that killed 24 cows. Peter Mravlja was charged with arson, insurance fraud and witness tampering following a nearly three-year investigation by local authorities and the state insurance department. He was released after posting $5,000 bail, said Otsego County District Attorney John Muehl.

Mravlja Farms, owned jointly by Peter Mravlja and his father, George Mravlja, closed after the fire in April, 2003. The cause was initially listed as undetermined, Muehl said.

The Otsego County Patrons Co-Operative Fire Relief Association of Schenevus paid Mravlja Farms a total of $143,555 for its losses. But spurred by a confidential tip, authorities learned the Mravlja family farm "was in severe financial distress at the time of the fire, creating a potential motive for both arson and insurance fraud," Muehl said.

DEL. REGULATOR PLANS ONLINE SHOPPING SERVICE

Delaware Insurance Commissioner Matt Denn asked for additional staff to investigate complaints against insurance companies and agents as well as fund an Internet insurance rate comparison service that would be the only one of its kind in the country.

Over the last year, the department has hired a new consumer services director and converted three existing positions to consumer investigators. Denn requested the creation of two additional investigators.

Denn said the department has begun developing a Web site for auto and homeowners insurance so consumers can "request a personalized quote from one, two, a few or all of the companies in Delaware."

R.I. JURY FINDS LEAD

Three former makers of lead paint created a public nuisance that continues to poison Rhode Island children, a jury ruled in a verdict that could saddle the companies with millions in cleanup costs and embolden other states to sue, too.

However the judge in the case later ruled there would be no punitive damages.

The jury decided that one of the four defendants, Atlantic Richfield Co., was not responsible. But it found the three others were: Sherwin-Williams Co., NL Industries Inc. and Millennium Holdings LLC.

Rhode Island, the first state to sue the industry, argued that the substance contaminated homes and burdened landlords. Paint companies denied direct responsibility.

LLOYD'S SAYS THE CYCLE IS STILL A CONCERN

According to Lloyd's newly released annual underwriter survey, managing the "boom and bust" insurance cycle remains the most important challenge facing the global industry for the second year running. The survey also found that nearly 90 percent of the underwriters believe that windstorms are likely to be the biggest cause of losses to the industry in 2006.

Other highlights included: The U.S. and China are seen to offer the most significant growth opportunities for the market in 2006. The greatest impact of last year's hurricane season will be decreased reinsurance availability, followed by higher catastrophe rates. Contract certainty and increased transparency are seen as the next most important challenges. While a quarter of underwriters said the industry has made significant progress on managing the cycle during 2005, 69 percent said there has not been enough progress.

THE AGRIBUSINESS CONFERENCE

The Agribusiness Conference, hosted by the Insurance Skills Center, is filed for continuing education credits in more than 30 states. Conference locations for 2006 include: March 15-16 Sacramento, Calif.; May 22-23 Hartford, Conn.; June 26-23 Denver, Colo.; July 17-18 San Antonio, Texas; Sept. 27-28 Richmond, Va.; and Oct. 9-10 Des Moines, Iowa.

At the conference, attendees can qualify for the Agribusiness and Farm Insurance Specialist (AFIS) Designation program. The purpose of the AFIS Designation is to properly train underwriters and broker/agents on the complexities of the insurance farm arena and to reward them for obtaining a measurable level of education and training on farm and agricultural risks through completion of three exams.

The AFIS designation was created by Insurance Skills Center and the IBA West Agribusiness Committee. The AFIS designation was inspired by Dr. Emmett J. Vaughan, who provided guidance on curriculum and program development.

For more information about the conferences or AFIS certification, contact (800) 375-8704 or visit www.insuranceskillscenter.com.

MEN GET THEIR PURSES SNATCHED TOO

Purse snatching has traditionally been a crime directed against women, but the growing use of small electronic devices by men, frequently carried in bags, has increasingly made them the victims of grab and run thieves.

Lloyd's notes that "bag theft" with men as victims has grown dramatically as they carry bags with i-Pods, Blackberries and mobile phones that "can be worth more £1,000 [$1,774]." The majority of these thefts are likely to take place on the street or in bars and other public places, yet many standard insurance policies often don't cover theft of belongings outside the home.

Lloyd's insurer Hiscox said the thefts are increasing because more and more men are "carrying gadgets and other valuable items in canvas or leather satchel-style bags, easier to carry than traditional, heavy briefcases."

STARR AGENCY TO OFFER ACE, BERKSHIRE HATHAWAY PRODUCTS

Expanding its servicing capabilities for new and existing clients, Starr Technical Risks Agency, Inc. announced at press time that it will begin immediately offering commercial insurance coverages by ACE USA and Berkshire Hathaway Group.

Starr Technical, which specializes in complex industrial risks, also announced that it plans to expand internationally in the second quarter of 2006.

Richard Shaak, president and chief executive officer of Starr Technical, said the agreements with ACE and Berkshire Hathaway give Starr Tech $200 million of in-house underwriting capacity that it can access today to write business. Starr Tech said these deals will enable it to provide comprehensive first-party property and machinery breakdown coverage to new and existing clients in the industries it serves. Working with ACE USA and Berkshire Hathaway Group will also allow Starr Tech to broaden its offerings across North America, Europe and Asia.