COLO. MEDICAL PAYMENT COVERAGE BILL DEFEATED

Legislation to force Colorado consumers to buy medical payment coverage was narrowly defeated in the Colorado House.

House Bill 1036, killed by a one-vote margin, would have required insurers to provide $5,000 medical payment coverage unless it was rejected in writing by the consumer. Legislation to mandate medical payment coverage has been debated in the Colorado Legislature every year since the state reverted back to a tort-based automobile insurance system in 2003.

Under the tort system, drivers are given the option to purchase medical payment coverage so that they can decide if it fits their insurance needs. For some consumers medical payments coverage is duplicative of their health care insurance.

Studies reportedly show that 84 percent of Coloradoans already have access to health insurance and that would require them to pay twice for medical coverage -- once through their health insurance and a second time through car insurance.

"Defeating this legislation was important because it would have been a first incremental step back toward the old no-fault system, with its high costs and unnecessary coverages," said Kelly Campbell, regional manager for the Property Casualty Insurers Association of America (PCI). "One of the major benefits of the new system is that consumers have choices regarding the coverage they purchase. To mandate a coverage that must be rejected could have been confusing for consumers and led some to think they were legally required to purchase the coverage even if they had health insurance. House Bill 1036 was unnecessary and would have made insurance more expensive for all consumers."

COALITION AGAINST INSURANCE FRAUD LISTS 2005's WORST INSURANCE CON ARTISTS

Scalpel-wielding surgeons and klutzy grave robbers were among the eight worst insurance swindlers of 2005, according to the Coalition Against Insurance Fraud. Elected to the Insurance 2005 Fraud Hall of Shame, those scam artists were among the year's most-brazen and tragic insurance criminals. All had legal closure during 2005.

Some of the infamous winners are:

Surgery patients cut no breaks -- Tam Vu Pham paid more than 5,000 healthy people to have surgeons operate on them so his Southern California medical clinic could fraudulently bill insurers more than $96 million. Surgeons performed colonoscopies, sweaty-palm surgery and other invasive procedures.

Truth decay -- Dentist Alireza Asgari did hundreds of painful, worthless and botched surgeries on patients to steal nearly $370,000 in insurance money. The Wilkes-Barre, Pa. dentist did unneeded root canals, cavities and extractions.

Princess was pauper -- Antoinette Millard pretended she was a Saudi Princess and hobnobbed with Manhattan society. Millard actually was the daughter of a Buffalo steelworker. She couldn't afford the swanky living, and tried to raise cash by lying to Chubb Insurance that a thief stole $226,000 worth of her jewels.

Blight of the living dead -- Molly and Clayton Daniels dug up the body of an elderly woman, dressed her in Clayton's clothes, put her in his car, torched it and pushed it off a cliff near Georgetown, Texas. They faked Clayton's death for $110,000 in life-insurance money. Clayton returned disguised as her new boyfriend.

PIA WESTERN ALLIANCE FORMS CHARITABLE FOUNDATION

The Professional Insurance Agents (PIA) Western Alliance has formed the PIA Western Alliance Community Foundation, a partnership formed by the member-agents and independent insurers, to invest in local communities.

Insurers and agents representing the nine Western Alliance states --Alaska, Arizona, California, Idaho, Montana, Nevada, New Mexico, Oregon and Washington -- will contribute to the foundation to support Main Street and local projects.

According to PIA, the foundation is not a high-end donor program, nor is it designed for large charities where a donation can get "lost in the shuffle."

The finances available through the foundation are aimed at providing civic, sports, shelters, community beautification and other programs a helping hand from PIA members with grassroots ties to a particular community. At times, a PIA member may create the cause -- the donation will be a part of the efforts of others.

NEW ONLINE SERVICE AVAILABLE FOR CALIF. LICENSE RENEWALS

A new online system has been created to allow licensees to renew licenses and change their address of record, according to California Insurance Commissioner John Garamendi.

Prior to the new service, licensees filled out paper applications that were reportedly often prone to errors or omissions. That sometimes resulted in substantial delays for approvals.

The new online service, however, is designed to assist the licensee in completing the renewal application accurately to ensure that all required information is included.

The new system will reportedly help applicants verify the accuracy of the application before it is electronically sent to the CDI. Those who use this service will have their renewed licenses mailed to them within three business days of submission.

A licensee renewing online will be asked to complete the same set of questions that are listed on the traditional paper renewal application.

Sometimes, agents and brokers reportedly do not notify CDI when they move to a new residence or business location. Without a current address on file, the CDI cannot send important information to the licensee, such as the biennial renewal notice.

The new online service allows licensees to change their mailing, business and resident address information, in addition to changing their e-mail addresses and telephone numbers. Their new information will be immediately updated on CDI's Web site.

The online service is available at the CDI Web site: http://www.insurance.ca.gov/ 0200-industry/0200-prod-licensing/onlinerenewalservice.cfm and https://cdinswww.insurance.ca.gov/flrs/addressChange/Welcome.jsp Or, visit www .insurance.ca.gov and click the "Online License Application" link.

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.