OTHER STATES COULD RECONSIDER ANTHEM MERGER:

Georgia and West Virginia may reconsider their approval of the Anthem Inc./WellPoint merger, after learning about California's $265 million concessions package. Seven other states, plus Puerto Rico, may decide to reconsider their earlier approval of the merger including Delaware, Illinois, Missouri, Oklahoma, Texas, Virginia and Wisconsin. Stock analysts suggest that any re-appraisals of the merger by key states that regulate the two companies won't lead to demands that Anthem ante up further concessions that rival those in California. The deal, whose value has risen from $16 billion to more than $18 billion based on a recent run-up in Anthem's share price, sealed the last state regulatory approval that Anthem needed to acquire WellPoint. But the financial concessions California negotiated with Anthem are large enough that other state regulators may see them as a drain on Anthem's overall financial health, causing them to reconsider their approvals. In some of the states reviewing the Anthem-WellPoint merger, there is no precedent for their insurance regulatory agencies demanding financial concessions as a condition of granting an approval for a merger.

MURDER CHARGED IN SLAYING OF TAMPA INSURANCE ADJUSTER:

Charges of murder and of sexual battery have been filed in the Nov. 12 slaying of an insurance adjuster who went to inspect a hurricane-damaged rental home. Jason M. Funk, 27, the home's tenant, was initially arrested in connection with marijuana found growing at the home and was in jail when the new charges were filed. He was ordered held without bond. Katrina Anne Froeschle, 25, was sent to the home on the Hillsborough River to inspect it for Farm Bureau Insurance after the owner reported storm damage to the roof. She contacted her company by cell phone as she headed to the house. The next day, her family reported her missing when they were unable to reach her. Froeschle's body was found in the river behind the house later that day. An autopsy showed she had suffered blunt force trauma to her upper body. Police arrested Funk on drug charges the next day, one day after his birthday, after officers said they found 19 marijuana plants growing in the house. Funk was also charged with armed robbery and burglary of a car.

N.C. HOMEOWNERS DISPUTE CLAIM DENIAL, HIRE LAWYERS:

Six residents in Peeks Creek, N.C., where four people died in what is suspected to be a Hurricane Ivan-triggered landslide, have hired lawyers to represent them after being denied insurance claims. Fifteen houses were damaged or destroyed in Peeks Creek Sept. 16, when trees, boulders, water and earth crashed through the cove. Homeowner policies typically cover events such as fire, wind, hail, lightning and fallen trees but will not cover damage involving movement of earth. A team of scientists investigating the event is calling it a debris flow or landslide. Residents maintain a tornado also hit the area. The scientists haven't entirely discounted a small tornado, which is possible but rare in the mountains. "Exactly what triggered (the debris flow) we don't know," said Rick Wooten, a geologist with the North Carolina Geological Survey. Claims have commonly been denied on the basis of flooding, as well as one that was submitted with cause of damage as a tornado.

MISS. DISASTER ASSISTANCE TOPS $6M:

More than $6 million in disaster assistance has been sent to Mississippians who suffered damage as a result of Hurricane Ivan, the state's emergency response agency reported. Robert Latham, director of the Mississippi Emergency Management Agency (MEMA), said more than $4.9 million of that total was given in Federal Emergency Management Agency (FEMA) grants to help disaster-affected homeowners and renters with temporary housing and emergency disaster repairs to their homes. Residents who applied to FEMA for help with eligible disaster needs, such as replacing personal property, medical expenses, vehicle costs and certain other expenses have received more than $1.8 million in checks. MEMA said counties and cities within Mississippi have estimated more than $16 million in public damages that include such items as public infrastructure, debris removal and emergency protective measures. Those estimates do not include claims made to private insurance companies, but only estimated costs associated with recovery for counties, cities and private nonprofit organizations within the declared counties.

FLA. MARINAS WANT STATE, COUNTY HELP:

South Florida marinas along the state's southeastern Treasure Coast have asked state and county leaders to help them recover from this season's hurricanes. They would also like state legislators to pass laws to provide them with assistance to help rebuild their facilities and purchase insurance. Marina owners, like homeowners, are having trouble obtaining insurance after the devastating storms. Unlike homeowners, marina owners can't turn to the state-sponsored insurer, Citizens Property Insurance Corp. The Marine Industries Association of the Treasure Coast is collecting damage estimate information from marinas and boatyards to quantify the $14 billion industry's economic losses from the hurricanes. Marinas, boatyards and related businesses are a $725 million industry and employ more than 7,000 on the Treasure Coast. Much of the damage was caused by boats left in the water as hurricane winds jostled the vessels against docks or threw them on land. State law does not allow marinas to force boat owners to evacuate their vessels after a hurricane watch or warning has been issued. The idea of the rule is to keep marina owners from making boats set sail when a storm is rolling in.

VESTA POSTS THIRD-QUARTER $54M LOSSES:

Vesta Insurance Group, Inc. (NYSE:VTA) announced its third-quarter earnings indicate operating losses for the third quarter of $53.8 million. The release of information about its earnings were delayed after what the company said was "an adverse jury decision." A Vesta spokesman said the losses were largely the result of the impact of damage costs due to the Florida hurricanes. A year ago the company reported a third quarter operating profit of $6.4 million. The company's net loss for the quarter totaled $42.8 million, compared with last year's net profit of $6.4 million. The hurricanes also pushed Vesta's earnings for the first nine months of the year into the red. The company confirmed a net operating loss for the nine-month period of $30.9 million, well down on last year's net operating profit at this stage of $3.2 million.

STATE FARM HIKES FLA. HOMEOWNER RATES 5 PERCENT:

State Farm Florida Insurance Co. has requested permission from the State Insurance Commission to increase rates 5 percent on all its homeowner and condominium policies due to what it calls, the higher costs of doing business, including increasing prices for building materials. The new rate increase will affect more than 900,000 policyholders. Chris Neal, a State Farm spokesman, said the increase in cost was also due to increased reinsurance costs.

INSURANCE MEDIATION TALKS IN FLORIDA:

Florida hurricane victims, unhappy with their insurance settlement offers, are meeting with state-certified officials and insurance company representatives to work toward an agreement and argue for more money. The Department of Financial Services (DFS) has begun a crucial mediation program. While residents are waiting for settlements, state financial officials are working to prevent companies from dropping coverage on victims' homes until repairs are completed. Florida Chief Financial Officer Tom Gallagher is attempting to extend the moratorium on insurance cancellations for hurricane victims whose homes are still in disrepair. By law, insurance companies have 21 days to try to reach a resolution with residents who are unsatisfied with their insurance settlement offers. Residents who don't think their insurance companies have dealt with their claims adequately must first file a dispute with the insurance company and it has 21 days to resolve the dispute (See related story on page 103).

W. VA. WORKERS' COMPENSATION AUDIT REPORTS POSITIVE TRENDS:

An independent audit report for fiscal 2004 shows continued positive financial trends for the West Virginia Workers' Compensation Commission, according to Gregory Burton, executive director. The report cites a deficit or unfunded liability for the combined funds of the Workers' Compensation Commission of $2.965 billion, compared to $3.1 billion for fiscal 2003. The deficit represents the amount that total liabilities exceed total assets. The Commission's total liabilities as of June 30, 2004 were $4.277 billion. Total assets of $1.312 billion offset these liabilities, leaving the unfunded liability or deficit at $2.965 billion. The commission oversees the Workers' Compensation Fund, as well as the Coal Workers' Pneumoconiosis Fund and the Employers' Excess Liability Fund. The CWPF had net assets of $30.3 million at the conclusion of fiscal 2004, while the EELF had net assets of $13 million.

FLORIDA AGENTS TAKING CONFERENCE REGISTRATIONS:

The "Power of One" will be the topic of the June 23 to 25 Florida Association of Insurance Agents (FAIA) 101st Anniversary Convention and Education Symposium in Orlando at the Gaylord Palms Resort and Convention Center. The event will feature how to bring out the powers of learning, networking and communication. The topic of the general session will be communication, in which participants will gain valuable insights about the insurance industry and learn from others' ideas. During special June 22 "breakout sessions" participants will discuss how to profitably run an agency and earn 12 hours of continuing education credits. Exhibit area activities kick off June 23 with a "Taste of the World" extravaganza featuring Latin American, Asian, European, Polynesian Island and U.S. cuisine. FAIA expects more than 170 insurance-related businesses to exhibit, with a highlight of the event being a demonstration area. Registration information is available at www.faia.com.

JUDGE RULES AGAINST MUTUAL BENEFITS IN FAVOR OF SEC:

A federal magistrate judge has upheld U.S. Securities and Exchange Commission (SEC) findings that Mutual Benefits Corporation (MBC), the nation's largest viatical settlement company, engaged in violations of securities law and defrauded investors. The Florida Department of Financial Services (DFS) and Office of Insurance Regulation (OIR) cited many of the same allegations in administrative charges filed against the company in May.

Barry L. Garber, U.S. Magistrate Judge for the Federal District Court for the Southern District of Florida, recommended granting the SEC's motion for preliminary injunction to stop MBC from continuing its operations in light of these troubling findings by the SEC: 90 percent of MBC viators had lived beyond life expectancies; 74 percent of policies have a negative escrow balance; MBC misused investor funds by paying, in a Ponzi-like fashion, the insurance premiums on older policies with new investors' monies; MBC has been subject to cease and desist orders from at least five state regulatory agencies; Joel Steinger, defacto CEO of MBC, has a prior criminal conviction for wire and mail fraud; The Steinger brothers have extensive disciplinary histories; The defendants and relief defendants used undisclosed consulting agreements to pay themselves millions of dollars; and MBC was selling interest in group policies without converting them into individual policies prior to purchase and was not disclosing the corresponding risk of investing in group policies. U.S. Judge Frederico A. Moreno will issue a final ruling on MBC's motion after hearing responses to Magistrate Judge Garber's findings.

HOUSING WEBSITE DRAWS THOUSANDS:

A housing website for Florida disaster victims drew more than 2,600 visitors during its first several weeks in operation. The Disaster Housing Resources website, www.DHRonline.org. The Federal Emergency Management Agency (FEMA) and State Emergency Response Team (SERT) established the site as a central forum for Florida disaster victims displaced because of hurricanes as a place to search for immediate housing. Its 12,000 listings of more than 32,000 rental units received an average of 217 visits per day. They can search for housing by price, location and specific options such as number of bedrooms and baths. Property owners or their representatives add available rental units to the site daily. Once a resource has been posted for 30 days, the person listing the property is notified by e-mail that, unless renewed, the resource will be archived.

HULL INTRODUCES FLORIDA COMMERCIAL RISK PROGRAM:

An exclusive Best's-rated "A XIV" program for commercial risks, including and excluding wind, is now available in Florida from Hull & Company. The property program is designed for risks up to $5 million. Hull indicates it can offer higher limits, and is looking for all classes of business, occupancies, and construction. In-house binding authority allows Hull to make quick decisions and return quotes and binders to their agents right away. The program offers several coverage enhancements to round out the account at competitive rates with top service and quality. For details contact the Hull & Company branch in Fort Lauderdale, (800) 678-4855, (954) 527-4855; Tampa, (800) 727-4855; Jacksonville, (888) 809-4855, or e-mail info@hullco.com.