IFA Virginia February 2008.pdf

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                                                                                                                                                   Volume 8, Issue 12 |            February 2008

                                                                                                                                                             Va. legislature has
Industry Leads
// Health Insurance
                                                     Kaine launches pilot                                                                                    insurance issues
EEOC publishes final
rule regarding retiree                               plan to cover uninsured                                                                                 on its to-do list
health benefits                                                                                       port from local insurance associations.
                                                                                                                                                             Measures to affect appointments, other
The EEOC published a final rule allowing
                                                     Health care proposals                               Gov. Tim Kaine’s proposed budget for
                                                                                                                                                             industry issues go to General Assembly
employers that provide retiree health                include new initiative                           fiscal 2009, which begins July 1, includes             By Terri Reuter
benefits to continue the longstanding                                                                 increased funding for a pilot program to               A handful of insurance bills have been
practice of coordinating those benefits with         By Terri Reuter                                  expand insurance for Virginia residents                proposed in this year’s Virginia General
Medicare without violating the Age                   Health care,including providing insur-           with no medical insurance.                             Assembly, including several that would af-
Discrimination in Employment Act.                    ance for the working uninsured, will be             The program is somewhat similar to                  fect how agents conduct business.
                                         Page 3      one of the top issues this year for Virginia’s   Tennessee’s CoverTN, said Richmond-                       The state’s Bureau of Insurance has
                                                     General Assembly and has gained sup-             based Asset Protection See “Health” on p18             also proposed several bills as of press
// Financial Services                                                                                                                                        time. Other bills are being considered,
First boomers have                                                                                                                                           but have not yet been filed, according
$257,800 net worth                                                                               Va. satellite firm                                          to the bureau.
                                                                                                                                                                An agent appointments proposal
The first wave of baby boomers, those
turning 62 this year, have an average net
                                                                                                 finds coverage                                              would eliminate the paper notification re-
                                                                                                                                                             quirement to the agent from the BOI that
worth, excluding their home, of $257,800                                                         GeoEye inks deal with Willis Group for                      the agent has been successfully appointed
and have not saved enough for their                                                              coverage of IKONOS satellite.                               an insurer. The obligation to notify the
future long-term care needs, according                                                           See story on page 14.                                       agent of the status          See “Agents” on p8
to new research.
                                        Page 10

                                                     Va. homeowners’                                   Affluent investors                                    Baffled buyers
// Life Insurance
Life industry adopts                                 rates near middle                                 see no need for                                       Consumers don’t understand their own
                                                                                                                                                             health insurance coverage.
new amendments to                                    NAIC study shows some neighbor                    advisor’s help                                                           were certain what they
settlement model act                                 state’s costs higher, others lower
                                                                                                       By Bob Graham
                                                                                                                                                                50%              paid for their monthly
                                                                                                                                                                               health insurance premium
The Life Insurance Finance Association               The average premiums for homeown-                 Just under half of the region’s high
                                                                                                                                                                                  were sure of their
applauded the recently adopted                       ers’ policies in Virginia were similar to         net-worth individuals rely on a profes-                  45%               annual deductibles
amendments to The National Conference                the premiums in some of the sur-                  sional advisor to
                                                                                                                             // IFA_Intel
of Insurance Legislators Life                        rounding states, but still continue to            manage their in-                                                        were “very sure” of what
                                                     rise, according to research by the Na-            vestments, a new                                                         the terminology used in
Settlements Model Act.                                                                                                                                           23%
                                        Page 19      tional Association of Insurance Com-
                                                                                                       study finds.
                                                                                                          About 48% of
                                                                                                                                 69%                                             their health insurance
                                                                                                                                                                                 policy actually means

// Property/Casualty                                    The NAIC report found that the av-             high net-worth in-    Percentage of
                                                                                                                                                                   36% couldn’t define HMO,
Virginia to get new                                  erage premium paid in Virginia was                dividuals turning
                                                                                                                             participated in
                                                                                                                                                                 20% didn’t know what a PPO is
                                                     $641in 2005, a 4.1% increase from the             62 this year who                                        11% couldn't explain what an HSA is
flood insurance                                      previous year.                                    live in the South,
                                                                                                                             401(k) or 403(b).
expansion program                                       In nearby states See “Premiums” on p7          an area that includes       See “Advice” on p20
                                                                                                                                                             Source: eHealth

Markel American Insurance launches new
flood insurance program for residential and           Departments
nonresidential properties in several states,
                                                     CALENDAR                   20    DEALS                      11    PEOPLE                       13       Your source for the latest Local industry
including Virginia.
                                        Page 14      CAPITOL HILL               15    LEGAL BRIEFS                9    NEW PRODUCTS                      6   news, as well as New Products, Sales
                                                                                                                                                             Advice, Videos and national insurance and
                                                     COMPANIES                  16    LIFE/FINANCIAL         10, 19    RECORD/FINES             22, 23       financial service news updated daily.
2 | Virginia   Insurance & Financial Advisor   |   February 2008
Final rule on
retiree health
benefits published
EEOC says employers can legally
coordinate benefits with Medicare

The U.S.Equal Employment Opportunity
Commission published a final rule allow-
                                              NEW Plans for 2008                         Medicare Advantage

                                              Earn Top Commissions and Expand Your Portfolio!

ing employers that provide retiree health
benefits to continue the longstanding
practice of coordinating those benefits
                                                • PFFS, HMO and PPO Plans Available (13+ Carriers)
with Medicare–or comparable state health        • MA, MAPD and PDP Plans Available
benefits–without violating the Age Dis-
crimination in Employment Act.
                                                • Special Needs Plans for Dual Eligible’s
   The regulation, which safeguards re-         • Zero Premium Plans and Premium Plans with Dental, Vision and Hearing                 COMMISSIONS
tiree health benefits, was published in
today’s Federal Register and is available
                                                • Competitive PDP Plans that cover 100% of Formulary Drugs
on the EEOC’s Web site at         • Group and Individual Medicare Advantage plans
   “By this action, the EEOC seeks to pre-
serve and protect employer-provided re-
tiree health benefits which are increas-      S-IMC is your “One Stop Resource” for Medicare Products
ingly less available and less generous,”
said Commission Chair Naomi C. Earp.            • S-IMC Pays top commission Plans bonus and Carriers Trips
   The EEOC proposed the rule in re-            • S-IMC Provides continued Sales & Marketing Training
sponse to a controversial decision in 2000
by the U.S. Court of Appeals for the Third      • S-IMC Provides Marketing Support such as Seminar & Co-op materials                      Per enrollment
Circuit in Erie County (Pa.) Retirees As-       • S-IMC Provides FREE LEADS and COMMISSION ADVANCES*                                      Plus Renewals
sociation v. County of Erie. The court held                                                                                            Commission includes volume bonus
                                                                                                                   *qualified broker
that the ADEA requires that the health
insurance benefits received by Medicare-
eligible retirees be the same, or cost the    Contact S-IMC Now!
employer the same, as the health insur-
ance benefits received by younger re-             Open Enrollment Period Starts January 1, 2008.
tirees. After the Erie County decision, la-
bor unions and employers alike informed                  Why Use Senior Insurance Marketing Center?
the EEOC that complying with the deci-             S-IMC is the only local Broker Resource with all of the major Medicare Carriers
                                                      • S-IMC - Quality Leads Program                              • S-IMC - Provides Commission Advances
sion would force companies to reduce or

                                                      • S-IMC - Top Contracts - Top Carriers                       • S-IMC - Selling Training Seminars
eliminate the retiree health benefits they

                                                      • S-IMC - On Line Carrier Certification                      • S-IMC - Personal Broker Support
currently provided–leaving millions of
retirees aged 55 and over with less health
insurance, or no health insurance at all.

Changing retiree health plan law
    “The Erie County decision would have               Whether you are new or seasoned in selling Medicare Products
made most existing retiree health plans                                         S-IMC has the resources for you.
unlawful,” EEOC Vice Chair Leslie E. Sil-
verman said. “EEOC’s new rule will en-                      For Further Information about Marketing Medicare Plans
sure that employers can continue to offer
their retirees much needed health bene-                     Call 800-462-9098 or email
fits.” Silverman had testified on the rule
before the U.S. Senate Special Committee
on Aging in 2004 and before a subcom-
mittee of the House Committee on Edu-
cation and the Workforce in 2005.
    The commission’s rule has the sup-
port of key members of Congress, as well
as the employer and labor communities,
including such major organizations as                  Medicare Advantage & PDP Carriers include: AARP, Aetna, Aetna Group MA, American Progressive, Bravo Health,
                                              Care Improvement Plus (CIP), Cigna, Coventry, Evercare, Humana, Pennsylvania Life, Pyramid, Secure Horizon, United Health, Wellcare.
the Society for Human Resource Man-
agement and the AFL-CIO. IFA

Virginia                                                      Insurance & Financial Advisor   |                                                       February 2008   |   3
                                                          // PUBLISHER’S NOTE
       Exclusive online content

   Virginia                                               Making balancing act
   I   Insurance, annuities                               a complete circus act                                                                Virginia Edition

       lecturer to speak despite        Insurance regulators in Maryland and            different, but still designed to shift
                                        Pennsylvania are using the media in new         public interest.
       losing license                   ways in an attempt to curry public favor
                                        and further the agendas of their respec-        Late Friday announcement                                    Tony Ondrusek
   I   Proposed budget could            tive governors.                                    Late on the Friday before Christmas,             
                                           Playing to the public is an approach         the Pennsylvania Insurance Depart-
       lower state's group life         that worked well for New York Gov. Eliot        ment announced that Joel Ario, Gov.                            Bob Graham
                                                                                                                                                         Executive Editor
       insurance rates                  Spitzer. As New York’s attorney general,        Edward G. Rendell’s nominee for insur-            
                                        Spitzer fought contingent commissions           ance commissioner, plans to hold hear-
                                        and AIG Group over fraudulent prac-             ings all over the state this summer on                     Todd Karpovich
   Property/Casualty                    tices in his quest for justice and, ulti-       the proposed Highmark-Independence
                                                                                                                                                           Senior Editor
                                        mately, that state’s highest office.
   I   Massachusetts attorney              But using the media is new to some                                                                       Sharon Schafer
                                        recent administrations. Regulators have
                                                                                             Insurance regulators are                                Advertising Sales Director
       general files suit for alleged   largely labored in the trenches, away                seeking increasingly to                                Keisha Beckles
       bid-rigging                      from the public eye. How many people
                                                                                                                                                    Advertising Sales Associate
                                        – agents and non-agents alike – can                  appeal to the public.                        
   I   Last year losses worst for       name their state’s insurance commis-
                                        sioner? How many even care?                                                                                   Terri Reuter
       some insurers since 2002                                                         Blue Cross merger.
                                                                                                                                                          Assistant Editor
                                        Maryland’s consumer voice                           The timing was perfect. With a 3:30
   I   Ratings service changes              In Maryland, Gov. Martin O’Malley           p.m. release, reporters would struggle                       Molly Greeley
                                                                                                                                                        Editorial Associate
                                        named a lawyer with no insurance expe-          with a major holiday looming to get
       property catastrophe             rience, Ralph S. Tyler, to run the Mary-        anyone to comment, and they couldn’t

       sector criteria                  land Insurance Administration. O’Mal-           afford to sit on the story for nearly a                       Carlie Nason
                                                                                                                                                         Office Manager
                                        ley said consumers need a louder voice.         week. As a result, the story ran as pre-           
                                            O’Malley’s appointee (still uncon-          sented in the press release. Being able
   Life Insurance                       firmed at press time) appears to be suc-        to talk to the public without the usual                  Jonathan Herndon
                                        ceeding. Tyler has garnered headlines           rebuttals and comments of others is a                            Graphics Manager
   I   MetLife named best               throughout the state in three cases. He         success for the Ario and Rendell admin-
                                        challenged and ultimately resolved a            istrations.                                                Carol Ondrusek
       managed insurance                proposed dividend payment to doctors               While each state approached its me-                          Circulation Manager
       company by Forbes                from a medical malpractice insurer the          dia differently, the goal was the same:
                                        state had helped with funding a few             Regulators in Maryland and Pennsylva-                                 • • •
   I   Specter of Democratic            years earlier. Tyler fined Allstate Corp.       nia are seeking increasingly to appeal to                Mission Statement
                                                                                        the public.                                      To provide an objective and relevant report
                                        $750,000, the “largest-ever” property-
                                                                                                                                                of news and issues that affect
       president worries                casualty fine in state history, a story            Consumers remain frustrated about                  the business and success of local
       financial advisors               juicy enough to have his office make            the insurance industry’s response to             insurance & financial service professionals.
                                        outbound calls to some reporters asking         Hurricane Katrina, the plight of the                        • • •
                                        if they wanted to interview the associate       uninsured and rising health care costs.          Insurance & Financial Advisor
   I   Life industry supports           commissioner who heard the case. Tyler             Effective insurance regulation re-                      10600 York Rd., Suite 203
       changes to model act             also issued a press release in a case in-       quires balance. The needs of con-                           Hunt Valley, MD 21030
                                        volving two local TPAs, who must pay            sumers must be considered along with                        phone: 703-807-2001
                                        $10,000 each for not recognizing the fal-       the needs of agents and brokers, and                          fax: 410-667-7977
   Health Insurance                     sified names, ages and addresses of en-         carriers. If carriers’ needs aren’t being
                                                                                                                                    Insurance & Financial Advisor VIRGINIA EDITION is published
                                        rollees given to them by an agent and           considered, then they will leave the        by New Horizon Group Inc. The paper is free for retail insur-
   I   Having insurance and             his company who were acting illegally           market and the consumers will suffer.       ance and financial service professionals in Virginia.
                                        as a TPA. The agent and his company                In the past, the balancing act has       The publisher also owns Insurance & Financial Advisor –
       understanding it are two         were fined $60,000. The stories gener-          been managed and maintained largely         MARYLAND & WASHINGTON, D.C. EDITION and Insurance
       different things                 ated big media coverage, the type not           out of the public’s view. In Maryland       & Financial Advisor –SOUTHEAST PA-NJ-DE EDITION.
                                        seen in Maryland since former Com-              and Pennsylvania, that appears to be        Insurance & Financial Advisor and its content is protected by
                                        missioner Steven B. Larsen ruled against        changing. And if they are successful,       U.S. copyright law. Content may not be reproduced or copied
   I   Businesses expected to dig                                                                                                   in any form without permission.
                                        the CareFirst merger with Wellpoint.            then other states will certainly follow.
       deeper for health coverage           If Tyler’s mission is to be the con-           The net result may be that that insur-   News, photos and articles are published free. Submissions
                                                                                                                                    may be edited or altered, and become the publisher’s property.
                                        sumer’s voice, he is succeeding.                ance regulation balancing act could be-     The publisher assumes no liability for errors or omissions.
                                            In Pennsylvania, the approach is            come a circus act. IFA

4 | Virginia                                                 Insurance & Financial Advisor   |                                                                February 2008
Smith brokerage
boosts presence                               associationnews                                                                                                                                         AIAM designation
in mid-Atlantic                                                                                                                                                                                       recipients noted
S. H Smith & Co., Inc., a national, inde-                                                                                                                                                             The Independent Insurance Agents of Virginia re-
pendently owned wholesale insurance                                                                                                                                                                   cently bestowed the Associate in Insurance Ac-
broker, managing general agency and                                                                                                                                                                   count Management designation to students from
program administrator, has acquired Se-                                                                                                                                                               the Best Practice Account Management Training
                                                                                                                                                                                                      program. Pictured are recipients (seated, from
cureRisk Intermediaries Insurance
                                                                                                                                                                                                      left) Leigh S. Coffey, Minnesota Lawyers Mutual,
Agency and is opening an office in                                                                                                                                                                    Richmond; Susan Buford, Medical Society of VA
Philadelphia to better serve its customers                                                                                                                                                            Insurance Center Agency, Richmond; (standing,
in the Pennsylvania/mid-Atlantic region.                                                                                                                                                              from left) Diane Mattis, IIAV instructor; Patricia A.
   “We have a considerable amount of                                                                                                                                                                  Meyer, Morgan Marrow, Hampton, Sandra P. Har-
                                                                                                                                                                                                      ris, HRH of Va, Richmond; Donna Pierce, HRH of
customers in the mid-Atlantic region
                                                                                                                                                                                                      Va, Norfolk; Sonia Ingersoll, Morgan Marrow,
whom we felt would be better served by                                                                                                                                                                Hampton; Marci Danzing, INSCO Group, Virginia
our opening a regional office in Philadel-                                                                                                                                                            Beach; Brandy Garcia-Heng; and Sheila Mc-
phia,” said Scott Smith, the company’s                                                                                                                                                                Cormick, Mountain State Insurance, W. Va.
   “This decision supports not only our
company’s ambitious growth plans, but
also serves to support our high standards
for customer service.”
   The company’s mid-Atlantic region in-
cludes Virginia, Maryland, Pennsylvania,
                                              The Proven Partner in Broker Services
New Jersey and Delaware.
   The Philadelphia office is located at
33 Musket Court, in West Chester, Pa. IFA


New Anthem national
accounts CEO appointed
WellPoint Inc., parent company of An-
them Blue Cross and Blue Shield of Vir-
ginia, appointed John Langenus to senior
vice president and president and CEO of
its Anthem National Accounts division,
effective Feb. 25.
   In his new role, Langenus will be re-
sponsible for customer relationships and
continued growth of Anthem National
accounts, which currently serves more
than 10.9 million members.
   “John’s experience working with large
accounts, along with his excellent repu-
tation in the market, his focus on the        At BenefitMall we’ve made selling employee benefits more efficient. Not only do we
customer and his passion for health care
will enhance our already strong National      provide access to the products employer groups want, but we make the Broker’s job easier
Accounts team,” said Ken Goulet, pres-        with outstanding sales support and exclusive technological tools.
ident and CEO of WellPoint’s Commer-
cial Business unit.                           Nationwide strength plus outstanding local market expertise – it’s a combination that has
   Langenus is joining Anthem National        made BenefitMall the proven partner in Broker Services.
Accounts from Bethesda, Md.-based
Coventry Healthcare, where he served as       Our more than 500 insurance professionals are available to assist you in 33 markets across
president of Group Healthcare for more
                                              the country, and they’re with you from quoting to closing – and beyond.
than two years. Prior to his role at Coven-
try, he held leadership positions at Evo-
                                              To work with The Proven Partner in Broker Services visit or call
lution Benefits and Cigna Healthcare,
where he held increasingly responsible        the Towson office at 800-825-6650 or the Rockville office at 800-472-4961.
roles, including senior vice president of
the National Market Segment. IFA                 ©2007 BenefitMall®. All rights reserved. BenefitMall, the circle “B” logo and the corporate logo are registered trademarks of Centerstone Insurance and Financial Services, Inc. California License #063979.

Virginia                                                              Insurance & Financial Advisor                   |                                                                                                         February 2008   |   5
                   TMC-ADVANTAGE                                                                             NEWPRODUCTS                            Insurance & Financial Advisor |
                              Workers Compensation
                                 Union Liability                                                             Rockwood expands E&O with two endorsements
                                                                                                             Property/    Rockwood Programs Inc. has expanded its life, accident and health insur-
                                  Unique Programs                                                            Casualty     ance agent’s E&O product offering to include two new endorsements. One
                               Available to Other Agents                                                     enhancement expands coverage to include incidental property and casualty activity; the
                                                                                                             other provides E&O for the placement of financial products.
                                                                                                             The P/C endorsement covers the policyholder for placement of several types of P/C-
                                                                                                             related products, including personal automobile, homeowners, and business owner
               The McLaughlin Company,                                                                       policies. Agents who derive less than 20 percent of their total annual revenues from P/C-
               1725 DeSales St., N.W.                                                                        related activities are eligible. Other restrictions may apply.
               Washington, DC 20036
                                                                          The other endorsement that is now available expands E&O protection to include certain
               202-293-5566                                                                                  types of financial products.

                                                                                                             Aetna launches new medication program
                                                                                                             Aetna introduced Aetna Healthy Actions Rx-Savings, an incentive program under which
                                                                                                              Health      co-pays for individuals enrolled in self-funded benefit plans who have high
                                                                                                              Insurance   risk clinical profiles and are taking medications for chronic health conditions
                                                                                                             including asthma, diabetes, high cholesterol, high blood pressure, and heart disease are
                                                                                                             paid in whole or in part by their employer.
                                                                Dealing with                                 The program is designed to encourage member compliance with medications shown to

                                                 CATastrophes                                                be essential, according to the evidence base, to the effective management of these con-
                                                                                                             ditions for high-risk members.
                                             Natural and Intentional
                                                     March 11, 2008                                          New hotel plan unveiled by Travelers
                                                                                                             Travelers has a new product exclusively for the hotel industry, designed to provide prop-
                                                         Speakers include:
                                                          FEMA Executive                                      Property/   erty, general liability, auto, workers’ compensation, and excess liability
                                        Sam Anderson, Argonaut Specialty                                      Casualty    coverage for business class, resort, family and leisure hotels.
                Robert Crouch, Office of the Commonwealth Preparedness
                                                plus a Distinguished Panel                                   Also available are key coverage specific to the hotel industry, including:
                                                                                                                   • Hospitality errors and omissions coverage that offers tailored protection for
                                           More Information                                                          unique hotel exposures such as failure to provide a service
                                        Sponsorship Opportunities                                                  • Personal grooming services liability for hotel salons, spas, and other personal
                                              Registration                                                           services
                                                                                                                   • Guest’s property (or innkeeper’s liability) for the property of guests in the care,
                                                                                            custody and control of the insured
                                                                                                                   • Bond and financial product options such as crime coverage, employment
                                                                                                                     practices liability, directors and officer’s liability, general partnership liability
                                                                                                                     and fiduciary liability.
                                       R i sk & I n su r a n c e S t u d i e s C e n t e r
                                             VCU Business @ Snead Hall
                                                     301 West Main Street                                    New annuity rider from Pacific Life announced
                                                     Richmond, VA 23284                                      Pacific Life Insurance Company has added a suite of variable annuities as a funding
                                                                         with the assistance of               Life          option for its Pacific Life Individual(k) Program. Originally launched in 2004
                                                     The Independent Insurance Agents of VA
                                                          and the Virginia Bureau of Insurance                Insurance     with five PL Portfolio Optimization Funds and 15 individual mutual funds,
                                                                                                             the program is a cost-effective 401(k) designed for self-employed business owners and
                                                               Phone: 804-828-1486                           their spouses. For 2007, the IRS increased contributions limits of up to $45,000 annually.
                                                               Fax: 804-828-7554
                                                                                   The program will continue to offer Portfolio Optimization Funds — five asset allocation
                                                                                                             “fund of funds” to help investors diversify among management companies as well as
                                                                                                             asset classes.

                                                                                                             CNA enhances monoline EPL product
                                                                                                             CNA added to its stand-alone employment practices liability product, EPL Solutions. Pri-
                                                                                                              Property/  marily aimed toward publicly traded commercial companies, financial
                                                                                                              Casualty   institutions, and financial service companies with 500 employees to 7,500
                                                                                                             employees, the revised policy includes many of the most up-to-date coverage enhance-
                                                                                                             ments available in the marketplace.

                                                                                                                                            For the latest New Products go to

6 | Virginia                                                                 Insurance & Financial Advisor    |                                                                  February 2008
Premiums: Rates in
Va. below others
                From page 1

such as West Virginia, homeowners paid
$640, a 3.9% increase from the prior year,
and $644 in North Carolina, a 3.4% in-
crease, according to the report.
   Virginia’s average is less than the rates
found in Maryland ($696; a 6.7% increase
from 2004), and Washington, D.C. ($963;
7.7% increase from 2004), but higher than
in Delaware ($498; a 2% increase from
2004), according to the report. Premiums
in Pennsylvania were slightly less with
$624 in 2005, a 5.2% increase from the
year before. Experts with the NAIC said
there are numerous reasons why rates are        See it in your clients when
higher in different areas, including popu-
lation and vacation housing.                    you offer Delta Dental
   “In general, real estate values and con-
struction costs tend to be higher in areas      Want to bring sparkling smiles to your clients? Make a smart
of greater population densities. Homes in       choice by adding Delta Dental to your benefits package.
these areas are generally more expensive        As The Dental Experts, we specialize in creating customized,
than in some less densely populated lo-         cost-effective dental benefit solutions for groups with
cations,” researchers said in the report.       two or more employees.
   “Since the amount of home insurance
needed is based on the value of the             Our sole focus on dental means simplified administration
home, premiums for homeowners insur-            and dedicated, dental-only customer service. It also
ance are often higher in more heavily           means built-in benefit flexibility and lower rates.
populated places. Vacation and retire-
ment areas also have relatively higher
                                                We offer customized plans... with the quality benefits
real estate values where there is an influx     your clients deserve… and access to the country’s
of money from outside the community             most extensive dental network — with coverage
and areas of rapid economic develop-            outside the network, too.
ment. Some states experienced a high
                                                Add more sparkle to your client’s employee
incidence of mold claims that caused
homeowners claims costs to rise.”
                                                benefits program with Virginia’s leading
   Texas had the highest monthly rates at       provider of dental care coverage. We’ve been
$1,372, while Idaho had the lowest at           meeting the dental needs of businesses in
$457, according to the report.                  Virginia for more than 40 years, and we’re
   Premium data for homeowners                  ready to serve you.
owner-occupied policies represent a
“package” of coverage for buildings, con-
tents and liability. The data shown in the
table are for an HO-3 package policy for
                                                Call your Delta Dental
single-family dwellings.                        Representative today,
   The HO-3 contract provides “all-
risks” coverage on buildings, broad             or call toll-free at
named-peril coverage on personal prop-
erty, the most commonly purchased               1-888-335-8216.
homeowners policy.
   Data from the report was collected
from insurance statistical agents for all
states except Texas and California, both
of which directly supply data to the NAIC.
The Florida data excludes policies writ-
ten by Citizen’s Property Insurance Cor-
                                                 The Benefits of Experience
poration, the state’s insurer of last resort,
and therefore are not directly compara-
ble to those of other states. IFA

Virginia                                                 Insurance & Financial Advisor   |    February 2008   |   7
                                                                                                         Va. firm joins life venture
                                                                                                         Genworth Financial subsidiary becomes minority shareholder in new company
                                                                                                         Senior Financial Inc., a wholly owned            their retirement safety net,” said Cheryl
                                                                                                         venture investment subsidiary of Rich-           Whaley, chief executive officer of Senior
                                                                                                         mond, Va.-based Genworth Financial               Financial. “Our involvement with ILS will
                                                                                                         Inc., is becoming a minority shareholder         allow Genworth participate in this grow-
                                                                                                         in Institutional Life Services LLC, a joint      ing competitor to the life industry.”
                                                                                                         venture of the Goldman Sachs Group Inc.             The new company, announced last
                                                                                                         and National Financial Partners Corp.            September, will participate in the sec-
                                                                                                            “The Life Settlement market is a rap-         ondary insurance market.
                                                                                                         idly growing secondary market for life              ILS, which should be launched by
                                                                                                         insurance, Genworth spokesman Tom                April, will bring together high institu-
                                                                                                         Topinka said.                                    tional investors and seller representatives

               Make Our Experience,                                                                         Life settlements provide insurance
                                                                                                         policyholders, usually older than 65, a
                                                                                                         way to access more money than they
                                                                                                                                                          to engage in life settlements transactions,
                                                                                                                                                          including transparency in the bidding
                                                                                                                                                          process, disclosure of all intermediary

                 Your Advantage.                                                                         might otherwise be able to do, he said.
                                                                                                         Consumers can monetize assets they no
                                                                                                         longer need and receive cash they do
                                                                                                                                                          compensation and protection of per-
                                                                                                                                                          sonal identifying information, according
                                                                                                                                                          to company officials.
                                                                                                         need, while they are living.                        Under the agreement, Genworth In-
                  The Harford Mutual Insurance Companies                                                    “This opportunity is an extension of          stitutional Life Settlements Inc will have
                  165 years experience in Commercial Lines                                               our strategy to provide senior market            a 10% ownership interest in ILS and will
                                                                                                         consumers new products that provide              hold one seat on the board of directors of
                       Join our team today. Contact us to learn more:                                    liquidity, retirement income and enable          ILS, GS Re Holdings Inc. IFA
    The Harford Mutual Insurance Companies 200 North Main Street Bel Air, Maryland 21014-3544
                                                                                                         Agents: Industry issues go to Richmond
                                                                                                                           From page 1                    the commission may share confidential
                                                                                                                                                          and privileged documents with state, fed-
                                                                                                         will be shifted to insurance companies,          eral and international law enforcement.
                                                                                                         who currently notify their agents of their       Confidentiality language was added to

         Capital                                                                                         appointment status.
                                                                                                            “We favor this as we see no reason for
                                                                                                                                                          the code because “local” was inadver-
                                                                                                                                                          tently excluded.
                                                                                                                                                             • A certificate of authority proposal
                                                                                                         the duplication of these confirmations,”
       “I” Day ’08                                                                                       said Elsie Reamy, former executive vice
                                                                                                         president of Professional Insurance
                                                                                                                                                          deletes the requirement that a business
                                                                                                                                                          entity, foreign or domestic, first obtain a
      Excellence Through Education                                                                       agents Association, Virginia and the Dis-        certificate of authority (or certificates of
                                                                                                         trict of Columbia.                               registration, organization, limited part-
        March 18, 2008                                                                                      Other insurance bills include:                nership, or charter) from the SCC prior to
                   New Location!                                                                            • An industrial insureds proposal             obtaining a license as a consultant, sur-
                                                                                                         would mean acts of foreign and alien in-         plus lines broker, or viatical settlement
                Hilton Hotel                                                                             surers involving insurance contracts is-         broker.
                1750 Rockville Pike                       • 6 CE Credits for P/C
                                                                                                         sued to industrial insureds are exempt              “ We’re just deleting the ‘prior to.’ It re-
                  Rockville, MD                           • 3 CE Credits for L/H
                                                                                                         from regulation. The amendment allows            ally doesn’t affect Virginia agencies, just
                                                          • Exhibit Hall                                                                                  the out of state agencies that do business
                                                                                                         for the use of a qualified insurance con-
       Sessions Include:                                  • Networking                                   sultant, whose aggregate annual pre-             in Virginia,” said Robert
       • Morning session: Chris Amhrein’s                 • Luncheon Included                            mium requirements are increased from             Bradshaw, executive
         “Top Twenty Countdown: A Musical                                                                $25,000 to $100,000 and require a mini-          vice president, Inde-
         ‘Ask the Expert' Experience”                     Join 200 other fellow                          mum amount of gross assets or annual             pendent        Insurance
       • “Going Green” Best Practices approach            agents for this annual,
         to environmental programs
                                                                                                         gross revenues in order to meet the defi-        Agents of Virginia.
                                                          informative event!                             nition of industrial insured.                       • Another bill would
       • Flood Insurance
       • Ethics                                                                                             • A confidentiality proposal would            eliminate the require-
       • Risk management financial analysis                       Register online:                       amend subsections on confidentiality of          ment that insurance
                                                                                                         information obtained from the commis-            coverage be declined by Robert Bradshaw
       CE Credits in MD, VA, and D.C.!                                      sion and notification to commission of           three unaffiliated admitted insurers li-
                                                              [click on “continuing education”]
      Media Sponsor                                                                                      termination; notice to agent; immuni-            censed and authorized to write coverage
                                                               Exhibitor / Sponsor info:                 ties; confidentiality, and penalties. It clar-   in the state prior to its being written in
                                                           Stanley Lipshultz, CPCU                       ifies the ability of the commission to           the surplus lines market. IFA
                                                                                                         share confidential information with local        -Visit for the latest news
                                                                 301-468-5511                            law enforcement authorities. Currently,           on the Virginia General Assembly.

8 | Virginia                                                                  Insurance & Financial Advisor   |                                                         February 2008
                                                                                                       Financial advisor pleads guilty to fraud
 LEGALBRIEFS                            Insurance & Financial Advisor |
                                                                                                       Long-time employee admits to scheme to defraud investors in Tri Capital Advisors
                                                                                                       A North Potomac financial advisor
                                                                                                       pleaded guilty to wire fraud and money
                                                                                                       laundering related to a scheme to de-
                                                                                                                                                        Between March 2002 and June 2003,
                                                                                                                                                     Freedman debited more than $300,000
                                                                                                                                                     from the account, purportedly to make
 Federal ruling could affect state, local coverages                                                    fraud investors and use the money for
                                                                                                       his personal benefit, the Maryland U.S.
                                                                                                                                                     19 transactions for stock purchases that
                                                                                                                                                     were not in fact made.
  Health      In a recent ruling that could have implications for all states hoping to cover           attorney’s office reported.                      On June 14, 2004, Freedman wrote a
  Insurance   the uninsured, a federal judge changed San Francisco’s new health insur-
                                                                                                          Prosecutors said between 2002 and          $5,000 check, drawn on the trust ac-
 ance law, throwing out an ordinance that would have required employers to either cover
                                                                                                       2004, Marc Freedman, 49, defrauded            count, and made payable to the Wash-
 their employees’ health insurance or pay a fee to the city, according to reports.
                                                                                                       clients of Tri Capital Advisors, an invest-   ington Asset Group, a company owned
 Using this fee, the city planned to provide health insurance for all of its uninsured adult                                                         by Freedman.
                                                                                                       ment firm and registered investment ad-
 residents. If the ruling stands, the city would be forced to provide coverage only to those
                                                                                                       visor, where Freedman had been em-               Freedman faces a maximum sentence
 uninsured residents making no more than three times the federal poverty level.
                                                                                                       ployed since 1993. For example, between       of 20 years in prison followed by five
 The ruling judge said that the ordinance was incompatible with a 1974 federal law that                Sept. 17 and Sept. 27, 2002, Freedman         years of supervised release for wire fraud
 bans regulation of employee benefits by local and state governments.
                                                                                                       caused about $65,000 in advisor fees to       and 10 years in prison, followed by three
                                                                                                       be deducted from a trust account he con-      years of supervised release for money
 AIG executive charged with fraud                                                                      trolled on behalf of a client.                laundering. IFA
  Property/  John Falcetta, formerly a human resources executive at American Interna-
  Casualty   tional Group Inc. in Manhattan, N.Y., has been charged along with three
 other men in a plan to defraud AIG of more than $1 million, according to reports.
 Falcetta and two others were arrested in relation to the alleged plan, which is supposed
 to have taken place between 2005 and 2007. According to documents filed in Manhat-
 tan federal court, Falcetta had the other men send invoices to AIG, charging the
 company for services supposedly carried out by phony headhunter companies. In return,
 Falcetta is alleged to have received kickbacks.
 Prosecutors said the fourth man involved in the plan is still at large.

 Accenture files lawsuit against Guidewire Software
  Financial     Guidewire Software was accused of patent infringement and trade secret
  Services      misappropriation by Accenture in a lawsuit filed with the U.S. District Court
 for the District of Delaware, according to published reports. The two companies are
 rivals in the insurance claims software market.
 The suit alleges that Guidewire infringed on the patent protecting the Accenture Claim
 Components solution and has misappropriated trade secrets related to the design, cod-
 ing and implementation of the Accenture software.
 Accenture alleges in the suit that Guidewire “willfully and maliciously obtained Accen-
 ture trade secrets without authorization” to enable it to better compete in the claims
 software market.
 Guidewire officials deny the claims.

 HealthSouth pays $14.2M in fraud settlement
              HealthSouth Corp. and two physicians have agreed to pay the U.S. $14.9
  Insurance   million to settle allegations that the Birmingham, Ala.-based company sub-
 mitted false claims to the government and paid illegal kickbacks to physicians who
 referred patients for care in some of its hospitals, outpatient rehabilitation clinics, and
 ambulatory surgery centers, according to reports.
 HealthSouth will pay $14.2 million and the physicians will pay $700,000 under separate
 settlement agreements. HealthSouth is the nation’s largest provider of inpatient rehabili-
 tation services.

 Court settles Coventry First, Ritchie Capital dispute
  FinancialA federal judge in New York approved a settlement between Coventry First
  Services LLC and Ritchie Capital Management over various accusations between the
 two companies involving life settlement contracts, according to report.
 Ritchie, which filed for bankruptcy in June, had accused Coventry of breach of contract
 and other violations during their business partnership. The most recent agreement ends
 the dispute between the two companies in bankruptcy court, but Ritchie is still suing
 Coventry in a district court for $2 billion, according to reports.

                                 For the latest Legal News, go to

Virginia                                                                    Insurance & Financial Advisor   |                                                February 2008   |   9
University nets $130,000 in deal
George Washington University benefits from sale of former trustee’s life policy
                                                                                                                               Life Insurance
Chesapeake Financial Settlements, a
life settlement brokerage firm based in
                                                                           George Washington then contacted
                                                                        Chesapeake, which acted as an agent in
                                                                                                                               Financial Services
Rockville, Md., and The George Washing-                                 offering the policy to potential buyers.

                                                                                                                              First boomers have
ton University completed a $210,000 life                                   A top offer of $210,000 was received (42%
settlement on a $500,000 life insurance                                 of the policy’s face amount), which was a
policy owned by the university.                                         $130,000 gain for the university, according

                                                                                                                              $257,800 net worth
    The George Washington University                                    to Chesapeake Financial Settlements. IFA
owned a $500,000 universal life policy
that was donated by an 82-year old for-                                 // HEALTH INSURANCE
mer trustee of the university.                                          OptumHealth extends access
    The surrender value of the policy was
                                                                                                                              New study paints detailed portrait of the financial stature,
about $80,000 and the donor’s annual                                    UnitedHealth Group’s OptumHealth                      needs of first baby boomers to reach the milestone
premium payments to maintain the pol-                                   wellness company now enables people                   The first wave of baby boomers, those               they need the money right now and they
icy totaled nearly $40,000. Not interested                              changing employers, health plan or doctors            turning 62 this year, have an average net           fear there will be nothing left in the sys-
in continuing premium payments, the                                     to access their previous medical history              worth, excluding their home, of $257,800            tem if they wait.
donor suggested a life settlement.                                      based on their health insurance claims. IFA           and have not saved enough for their fu-                The survey reports that the majority
                                                                                                                              ture long-term care needs, according to             (77%) of boomers born in 1946 say they
                                                                                                                              new research.                                       are in good to excellent health.
                                                                                                                                 The average annual income of this                   They are empty nesters; of those who
                                                                                                                              group is about $71,400, according to the            have children very few have children liv-
                                                                                                                              MetLife Mature Market Insti-
                                        A LIMITED BENEFIT MEDICAL INSURANCE                                                                                        Getting a fix on those born in 1946
                                                                                                                              tute’s study, Boomers Ready to
                                              PLAN WITH UNLIMITED POTENTIAL.                                                  Launch, a profile of baby            • 31% plan to apply for Social Security when they turn 62 and
                                                                                                                                                                     32% say they will wait until age 66 or beyond when they can
                                                                                                                              boomers as they turn 62.
                                                                                                                                                                     receive full benefits.
                                                                                                                                 The profile offers insurance
                                                                                                                                                                   • 68% say they have employee or retiree health insurance.
                                                                                                                              and financial service profes-
                                                                                                                                                                   • 47% are covered by a defined benefit plan, 50% have a
                                                                                                                              sionals clues on the needs and         401K, 50% have an IRA.
                                                                                                                              interests of this fast-growing       • 38% have stocks and 38% have mutual funds.
                                                                                                                              segment of the population.           • 22% have long-term care insurance.
                                                                                                                                 The majority of baby              • 85% own their own home.
                                                                                                                              boomers to turn 62 in 2008 re-       • The average value of their homes is $297,900.
                                                                                                                              port that they are retired or will • 16% would consider a reverse mortgage primarily to take
                                                                                                                              be fully retired by age 65, that       care of their own long-term care needs and costs; 74%
                                                                                                                              they’ll collect Social Security        aware that they are eligible at age 62 to apply for a federally
                                                                                                                              by age 65, that they’ve been           backed reverse mortgage.
                                                                                                                              married only once and that           • 25% say they plan to move to another area for retirement.
      TransChoice® Presents A Good Fit For An                                                                                 they have 2.4 children on aver-
      Estimated 45.8 Million Uninsured Americans.1                                                                            age, according to new research. Of those            ing with them (fewer than one in five).
      To say that there is a need for catastroph-                     benefits alternative for their uninsured full           who have children, 78% have grandchil-              Of those who have grandchildren, 8%
      ic health coverage for working Americans                        and part-time employees. TransChoice is                 dren (66% of total). Conservatives out-             have grandchildren living with them.
      is an understatement. The number of                             an indemnity plan, as opposed to                        number liberals by two to one.                         On average, the age at which they be-
      Americans without health insurance was                          the usual benefit amounts used in other                    “Contrary to what most of us have be-            lieve they’ll be “old” is 78, with their
      last reported to have reached a record                          limited benefit medical plans.                          lieved about the baby boomers who                   health status being a deciding factor.
      high 15.7% of the total U.S. population.1                       TransChoice represents an invaluable
                                                                                                                              came of age in the turbulent 1960s, the             Those in excellent health say they’ll be
      TransChoice is a limited benefit medical                        solution for vulnerable employees and
      insurance plan designed to provide                              stands to generate a sizeable revenue                   group is very much like the ‘Silent Gener- old at 83, while those in poor health put
      your clients with a cost-effective health                       stream for you as well.                                 ation’ that preceded them,” said Sandra             that number at 74. The most popular
                                                                                                                              Timmermann, director of the MetLife                 words they use to describe the best
      Some valuable features of TransChoice include:
                                                                                                                              Mature Market Institute.                            things about being 62 are “retirement,”
      L L L L L

                                                            L L L L

                  Guaranteed Issue – no health questions              Physical exams & diagnostic tests benefits                 Thirty-eight percent are expecting an            and “not having to work,” and the words
                  No deductibles or co-payments                       Prescription benefits                                   inheritance of an average of $210,000.              used to describe the worst things are “old
                  Doctors office visit benefits                       Surgical & anesthesia benefits
                                                                                                                              Thirty-five percent have already received           age” and “health problems.” As a group,
                  In-patient benefits                                 Short-Term Disability Income and/or
                                                                      Group Term Life Insurance can be sold                   an inheritance of an average of $113,000.           these boomers feel they have done a
                  Out-patient benefits
                                                                      with TransChoice                                           Members of the group who say they                good to excellent job contributing to
                                                                                                                              will take Social Security at age 62 rea-            their communities and 83% say they
  For more information on this and other innovative products                                                                  soned that they feel they’re entitled and           were good to excellent at providing for
  for the worksite, call or email Eric Yeager, Regional Vice President,
  Southeast Region at (804) 986-5243 or
                                                                                                                              would rather have the money than let the their spouses’ and children’s needs.
                                                                                                                              government have it. Respondents re-                 Fifty-four percent acknowledge doing
  1 U.S. Census Bureau, 2005.
  Use of statistics does not imply endorsement.                                                                               ported that they believe it’s in their finan- only a poor to fair job of ensuring that
  Underwritten by Transamerica Life Insurance Company, Home Office: Cedar Rapids, Iowa. Policy Form Series CP200100           cial interest to take Social Security               they have adequate coverage for their
  ASL SEEY 0406
                                                                                                                              sooner. Other reasons reported were:                own long-term care needs. IFA

10 | Virginia                                                                                      Insurance & Financial Advisor   |                                                                February 2008
                                                                                                      Aetna signs deal with Va. hospital
 DONEDEALS                            Insurance & Financial Advisor |
                                                                                                      Health insurer to add Martha Jefferson Hospital and 269 affiliated physicians to network
                                                                                                      Aetna reached an agreement recently
                                                                                                      with Martha Jefferson Hospital on a new
                                                                                                      contract that adds the hospital and its
                                                                                                                                                               Richmond market. “And we’re looking
                                                                                                                                                               forward to offering the people in the
                                                                                                                                                               Charlottesville area access to our HMO-
 Sun Life sells U.S. plan administration business                                                     269 affiliated physicians to the com-
                                                                                                      pany’s Richmond-area network. The
                                                                                                                                                               based products.”
                                                                                                                                                                  Martha Jefferson Hospital serves Char-
  Life       The U.S. division of Sun Life Financial Inc. reached an agreement to sell Sun            company already provides benefits to                     lottesville and eight surrounding counties
  Insurance  Life Retirement Services Inc., a 401(k) plan administration business in the
                                                                                                      more than 470,000 members in Virginia.                   in Central Virginia. The facility is licensed
 United States, to The Hartford Financial Services Group Inc.
                                                                                                         Under the agreement, members of                       for 176 beds, and provides cardiac and vas-
 The transaction is expected to close this quarter.                                                   Aetna network-based plans will be able                   cular care supported by on-site cardiac
 RSI provides administration services to bundled and unbundled defined contribution                   to receive covered in-patient and outpa-                 catheterization labs and a vascular inter-
 plans, serving approximately 6,000 retirement plan sponsors and 465,000 retirement                   tient services, at in-network rates, from                ventional radiology lab. Martha Jefferson is
 plan participants in the United States. Sun Life Financial’s wealth strategy includes its            Martha Jefferson Hospital.                               accredited as a Community Hospital Com-
 significant presence in asset management through its subsidiary Massachusetts Finan-                    “We’re very excited to welcome                        prehensive Cancer Care Program by the
 cial Services Company (MFS). MFS has strong distribution relationships with both RSI
                                                                                                      Martha Jefferson Hospital to the Aetna                   American College of Surgeons. IFA
 and The Hartford which will continue when the RSI business moves to The Hartford.
                                                                                                      network,” said Carolyn Harrington,
                                                                                                      Aetna’s senior network manager for the
 Arch Insurance Group buys Wexford Underwriting
  Property/   Arch Insurance Group, a member of Arch Capital Group Ltd., completed its
  Casualty    acquisition of Wexford Underwriting Managers, a managing general underwriter.                                                                 BUSINESS • AUTO • HOME • SURETY
                                                                                                                                                             USINESS    U TO   OME    URETY
 Arch Insurance Group entered into an agreement with Wexford Underwriting Managers
 to write excess workers’ compensation business and employers liability insurance.
 Arch also entered into an asset purchase agreement to acquire the operations of Wex-
 ford from Aon Corp. The Wexford operation, now a division of Arch Insurance Group, will
 be known as Arch Wexford.

 Aon selling off Combined Insurance, Sterling units
  Life        Aon Corp. has signed separate definitive agreements to sell its Combined
  Insurance   Insurance Co. of America and Sterling Life Insurance Co. The Sterling trans-
 action is expected to be completed this quarter, and the CICA deal is expected to be
 completed by the end of the second quarter.
 Aon also said it will devote the proceeds of these transactions to an increase in its previ-
 ously authorized share repurchase program. The program will increase by $2.6 billion,
 bringing the total amount currently available for repurchase to about $2.78 billion.

 The Hartford to buy DC business from Princeton
  Financial The Hartford Financial Services Group Inc. has agreed to acquire the
  Services  defined contribution recordkeeping alliance business of Princeton
 Retirement Group.
 This acquisition, when completed, will give The Hartford a foothold in the business of

 providing recordkeeping services to large financial firms which offer defined contribution
 plans to their clients.
 With the transaction, The Hartford adds an additional $7 billion in retirement plan assets
 across over 720 plans and about 170,000 plan participants.

 Columbia Insurance to buy P/C firm
                                                                                                                      We’re about
                                                                                                                      We’re all about finding solutions. From developing
  Property/  Columbia Mutual Insurance Company, a member of the Columbia Insurance                                    programs for
                                                                                                                      programs for unique business classes to providing training to help
  Casualty   Group has entered into an definitive agreement to acquire Georgia Casualty                                                                creating                automation
                                                                                                                      minimize loss exposures. From creating fast and simple automation
 & Surety Company and Association Casualty Insurance Company, currently owned by                                                for        agency
                                                                                                                      solutions for better agency workflow to quick claims resolutions.
 Atlantic American Corporation.                                                                                                                    ways give         agents
                                                                                                                      These are just some of the ways we give our agents and policyholders
 The transaction is expected to close in the first quarter of 2008 and it is anticipated that                                       for
                                                                                                                      big solutions for their business and personal insurance needs.
 the ratings of Columbia Group will not change. However, A.M. Best will continue to ana-                              Not to mention our competitive products and pricing.
 lyze the implications for Columbia Group as it relates to the execution risk associated
 with the strategic integration of the acquired entities, their historical variable operating                                                                             What do you expect from
                                                                                                                                                                          What do you expect from
                                                                                                                                                                          your insurance carriers?
                                                                                                                                                                          your insurance carriers?
 performance and the overall impact on the risk profile of Columbia Group.
 As a result, following the close of the transaction, A.M. Best will reevaluate whether the
 current positive outlook of Columbia Group will be affected.

                                                                                                                      Visit us at to find out how
                                                                                                                      Visit                                                    how
                                For the latest Done Deals, go to                                      you               agent          opportunities for growth.
                                                                                                                      you can become an agent with big opportunities for growth.

Virginia                                                                   Insurance & Financial Advisor   |                                                                February 2008   |   11
12 | Virginia   Insurance & Financial Advisor   |   February 2008
   PeopleNews                                                                                                                                                    Insurance & Financial Advisor

Nancy Rutherfoord was                         Group in Roanoke, Va., earned the Char-
promoted to director,                         tered Financial Consultant professional
                                                                                                      Aetna names mid-Atlantic sales team
contracting and licensing                     designation from The American College in                Aetna announced that it has created a new-business team to help grow small-group
at Roanoke, Va.-based                         Bryn Mawr, Pa.                                          business in Maryland, Virginia and the District of Columbia.
Shenandoah Life Insur-
                                              Kay Amos was                                            The new team is led by Tammy O’Hare, who
ance. Rutherfoord has
                                              appointed as sales exec-                                was promoted to director of new business sales.
been with Shenandoah
                                              utive for Humana                                        Other team members include: Susan Yenyo as
Life since 2003.             Nancy
                             Rutherfoord      Dental and Life’s new                                   account executive for Fredericksburg, Va., and
The following individuals                     office in Glen Allen, Va.                               counties in Northern Virginia; Dawn Chirgott as
earned the Accredited Customer Service                                                                account executive for Maryland; Phil Rigueur as
                                              David Smith was
Representative (ACSR) designation                                                                     account executive for Prince George’s County,
                                              appointed senior
through the Independent Insurance                                         Kay Amos                    Md., and Washington, D.C.                            Tammy O’Hare         Susan Yenyo
                                              account executive for
Agents of Virginia: Tory Skinner and
                                              UnitedHealthcare in
Peggy Davis, both of HRH of Virginia in
                                              Vienna, Va.
Norfolk, Va.; Ashlie Willis, Insurance Doc-
tor of Fredericksburg, Va.; and Tracy         Angela Bassett, Ron Sada and W.
Reynolds of Partlow Insurance in Win-         Campbell Pendleton earned the designa-
chester, Va.                                  tion Certified Builders Insurance Agent
                                              through Builders Mutual Insurance Co.
Kathy McVey was
                                              through their educational unit, Builders
named Optima
                                              University. Sada and Pendleton are produc-
Health’s new Medicare
                                              ers, and Bassett is the marketing director
sales manager. McVey
                                              with Brown & Brown Insurance in the
previously served as an
account executive for
Optima Health, and was                        Risa J. Lavizzo-Mourey was elected to
employed for nearly 20                        Richmond-based Genworth Financial
                         Kathy McVey
years by Sentara Health-                      Inc.’s board of directors. Lavizzo-Mourey is
care, Optima’s parent company.                president and chief executive officer of the
                                              Robert Wood Johnson Foundation.
Don Raper Jr. was pro-
moted to assistant vice                       David G. Simmons
president of Raleigh, Va.-                    joined the Harford
based BB&T Insurance                          Mutual Insurance
Services Inc. Raper is a                      Companies of Bel Air,
business insurance                            Md., which operates in
agent and joined BB&T                         Virginia, as vice presi-
in 2005.                                      dent of marketing.
                            Don Raper Jr.     Previously, Simmons
Jerry Zirkle, Brent                                                    David G. Simmons
                                              worked for Penn
Showalter and Chad                                                                                                               Feeling like you don’t matter?
                                              National Insurance and Donegal Mutual.
Hatter of Weaver Insurance & Financial                                                                                           Declare your independence with Founders Financial.
Advisors received the life Annualized Pre-    Robert Clark, president and CEO of                                                 With us,going independent doesn’t mean going it alone.
mium Award, Division I, during the            Roanoke, Va.-based Shenandoah Life                                                 Our exclusive members-only producer group,featuring
Richmond office of Erie Insurance’s           Insurance Co., was recently appointed to                                           a private full-service broker dealer, strengthens you
annual dinner. Mark Staley of Staley          the board of LL Global Inc., the umbrella                                          through community – an association of the like-minded
Insurance won the Life Annualized Pre-        organization of the Life Insurance Market-                       who share expertise, knowledge and ideas with professionals who share
mium Award, Division III, the Auto            ing Research Association (LIMRA) and Life                        their values. So go ahead and strike a blow for your own professional
Applications award, Division III, and the     Office Management Association (LOMA),                            liberty.The Founders are right beside you.
P&C award, Division III. Thom Jennings        two of the world's largest insurance and                                                                 Call Founders Financial today.
of ProSure Inc. was awarded the P&C           financial trade associations. The two
award, Division I.                            groups merged Jan. 1.

Daniel Winn was appointed vice president
and senior medical director in the medical       Send Your News
affairs division of CareFirst BlueCross
                                              • The easiest way to submit events is online:
Blue Shield.                                                                                         888-523-1162

Ed Price of the Greystone Financial                    Email:

Virginia                                                              Insurance & Financial Advisor   |                                                        February 2008   |   13
Va. satellite project gets Willis coverage                                                                     Markel unveils flood program
Dulles firm’s IKONOS satellite project               IKONOS high-resolution Earth-imaging
obtains $20 million in insurance                     satellite. The company now estimates
                                                                                                               New coverage available in Virginia, nine other states
                                                     IKONOS may continue to meet mission                       Markel American Insurance Co., a sub-       Coverages Inc., a wholly owned sub-
GeoEye Inc., a Dulles, Va.-based provider            requirements into the next decade.                        sidiary of Richmond, Va.-based Markel       sidiary of National Flood Services Inc.,
of satellite, aerial and geospatial infor-              The satellite was built and launched                   Corp., launched its new Excess Flood        and is designed to provide additional
mation, has secured $20 million of in-               into a low Earth orbit by Lockheed Martin                 program for residential and non-resi-       protection for the tens of thousands of
surance on its IKONOS satellite for 2008             in 1999. At the time of launch it was esti-               dential properties in several states, in-   property owners who are affected by
with terms comparable to those it had                mated that the satellite would be opera-                  cluding Virginia.                           flooding each year.
for 2007.                                            tional for a period of five to seven years,                  The program is also available in Penn-
   Willis Inspace, which has regional of-            reports said. The new study indicates that                sylvania, Alabama, Arizona, California,     More flood coverage
fices in Virginia, Maryland and Pennsyl-             the estimated life expectancy is 2010.                    Colorado, Mississippi, North Carolina,         “Since most standard homeowner
vania and provides insurance and risk                   “IKONOS continues to perform almost                    Oregon, and South Carolina.                 insurance policies don’t provide cov-
management services for the space in-                flawlessly in terms of quantity and qual-                    The Excess Flood program provides        erage against flood damage, home-
dustry, served as the insurance broker.              ity of imagery that it collects,” said CEO                property owners with coverage in excess     owners have traditionally turned to the
   The new analysis was based on infor-              Bill Schuster. With IKONOS, researchers                   of the National Flood Insurance Pro-        NFIP for flood protection,” according
mation performed by Lockheed Martin                  now know that radiation is no longer a                    gram. The new MAIC program will be          to Timberlee Grove, president and
Corp. on the life expectancy of its                  near-term life-limiting factor. IFA                       offered through Advanced Insurance          COO of Markel American Insurance
                                                                                                                                                           Co. “However, the NFIP doesn’t offer
                                                                                                                                                           enough protection for many home-
                                                                                                                                                           owners, given the maximum $250,000

       NEW PLANS, REDUCED RATES,                                                                                                                           available for dwelling coverage. MAIC’s
                                                                                                                                                           Excess Flood insurance allows prop-
                                                                                                                                                           erty owners to more fully protect

       AND BIG INCENTIVES MAKE                                                                                                                             against flood damage.” IFA

                                                                                                                                                           // HEALTH INSURANCE

       YOUR 4TH QTR CHOICES EASY                                                                                                                           Virginia uninsured
                                                                                                                                                           program shows gains
                                                                                                                                                           Since being launched last July, the Vir-
       Take a fresh look at Kaiser Permanente                                                                                                              ginia Cares Uninsured Program’s health-
                                                                                                                                                           care professionals at Patient Advocate
       small group plans                                                                                                                                   Foundation have helped more than 780
                                                                                                                                                           uninsured Virginians who faced various
                                                                                                                                                           types of issues by seeking to negotiate
                                                                                                                                                           funding and insurance coverage to ac-
                                                                                                                                                           cess medical treatments.
                    We’ve just introduced the new, small group plans you’ve been asking for at rates your
                                                                                                                                                              The program also tried to negotiate
                    groups won’t be able to pass up. And with a special bonus incentive plan for all small groups
                                                                                                                                                           free or reduced medications, nutrition,
                    effective October 1, 2007 through March 15, 2008, it’s an opportunity you can’t afford to miss.
                                                                                                                                                           housing, utilities and free or reduced
                                                                                                                                                           transportation and lodging for patients
                    Fourth quarter rates are significantly lower on select HMO, DHMO, and POS plans, and
                                                                                                                                                           who must travel for treatment; assisted
                    we’ve reduced rates on all HSA-qualified High Deductible Health Plans (HDHPs).
                                                                                                                                                           patients with obtaining insurance with
                                                                                                                                                           COBRA, Medicaid, Medicare, Guarantee
                    Our suite of product solutions continues to expand. New Kaiser Permanente Flexible
                                                                                                                                                           Issues Plans, HIPAA plans and
                    Choice POS and HDHP plan designs have been introduced in Maryland, Virginia, and the
                                                                                                                                                           FAMIS/FAMIS Select; and helped pa-
                    District of Columbia. Four HDHP plans feature zero copays after deductible.* Also, three
                                                                                                                                                           tients with applying, expediting decisions
                    new HMO plans are now available in Virginia and the District.
                                                                                                                                                           and appealing social security disability
                                                                                                                                                           insurance, supplemental security in-
                    Don’t plan your fourth quarter without us. For details about our new plans and rates, plus
                                                                                                                                                           come, long term disability and/or short
                    a special broker bonus incentive plan, contact Patrick Durbin at 301-816-6509 or your Kaiser
                                                                                                                                                           term disability.
                    Permanente sales representative.
                                                                                                                                                              Of those the VCUP helped, about 380
                    *Excludes ER, fertility, and network pharmacy                                                                                          were uninsured with serious medical
                                                                                                                                                           conditions and required case manage-
                                                                                                                                                           ment assistance to create access to       236112 8/07-3/08 Kaiser Foundation Health Plan of the Mid-Atlantic States, Inc., 2101 E. Jefferson Street, Rockville, MD 20852
                                                                                                                                                              The group also launched a Web site,
                                                                                                                                                 , whereby uninsured
                                                                                                                                                           patients can access additional informa-
                                                                                                                                                           tion about the VCUP and PAF. IFA

14 | Virginia                                                                   Insurance & Financial Advisor     |                                                   February 2008
                                     On the Hill                                                                  Independent Insurance Agents of Virginia
                                                                                                                  110th Annual Convention
                                                                                                                  Norfolk Waterside Marriott
                                                                                                                  June 26-28, 2008
                                     News From The Nation’s Capitol

Congress approves measures                         hope that this communication will assist the                   Unloc king the Keys to Your
                                                                                                                                    Agency Value
to extend SCHIP coverage                           IRS to understand how disruptive this regu-
                                                   lation would be to a large segment of
Legislation was recently passed in the
                                                   corporate America.”
House of Representatives that would pre-
serve the State Children’s Health Insurance        The submission of written comments fol-
Programs and postpone scheduled cuts to            lows recent lobbying efforts where the                                                                     Business guru and
payments for physicians participating in           association was represented at a high-level                                                                Business Week best
Medicare and Medicaid.                             meeting with Sen. Max Baucus, Senate
                                                   Finance Committee chair, in which congres-
                                                                                                                                                                 selling author
The Senate also recently passed stopgap
                                                   sional oversight action was discussed.                                                                   Harry Beckwith presents
legislation on the bill, which is designed to
provide healthcare coverage to uninsured           The proposed regulation would change the
                                                                                                                                                           The Four Keys to Growing
children from low-income households. The           tax treatment of certain captive insurance                                                                     Your Agency
Senate’s legislation will preserve SCHIP           companies. The proposed regulation
through March 2009.                                would end the IRS allowance of
                                                   deductions for loss reserves by single-par-                                                            services exhibition hall in the
Bush signs terrorism backstop                      ent captive insurance companies that file                                                              state
                                                   income tax returns on a consolidated basis
extension measure                                  with their parent corporation.                                                                         Building a Foundation for Best
President Bush signed legislation approved
                                                   The Self-Insurance Institute of America Inc.,
                                                                                                                                                          Practices–by six of the leading
by the Senate and House of Representa-
                                                   which advocates on behalf of the self-insur-                                                           best practice agencies:
tives that will extend the current federal
                                                   ance industry, asked the IRS to withdraw its
terrorism insurance backstop for an addi-                                                                                                                  • Craig Ryder, Scott Insurance
                                                   proposed regulation, citing potential unin-
tional seven years.
                                                   tended consequences of the proposed
                                                                                                                                                           • Robert Short, Short Insurance Associates
The Terrorism Risk Insurance Revision and          regulation such as the possibility that captive
Extension Act of 2007 would modify the             insurance companies will move offshore to
definition of terrorism to include domestic        avoid U.S. income taxes, resulting in a loss
acts of terror, and would also require ongo-       of U.S. jobs and tax revenue.                                                                          Establishing a Game Plan for
ing reports to Congress on inclusion of                                                                                                                   Internal Perpetuation
coverage for group life and nuclear, biologi-
                                                   Building code legislation                                                                               • Craig Ryder, Scott Insurance
cal, chemical and radiological events.
                                                   introduced before Congress
The act also reinforces the $100 billion cap
                                                   A bill was recently introduced before Con-                                                             Does your agency have what it
on aggregate insured losses.
                                                   gress that would provide $100 million to                                                               takes?
In response to the revision contained in the       help local officials enforce building codes.
Act, ISO has begun to file a full complement
                                                   The National Association of Mutual Insur-
of products that insurers will need to comply
                                                   ance Companies, which advocates for the                                                 agency’s
                                                                                                                    Find the keys to your agency’s success and bring your agency personnel to
with the provisions of the bill, including revi-
sions to the required disclosures, an
                                                   property/casualty insurance industry, urged                                                                                      CSR’s
                                                                                                                    this once in a lifetime event. Agency principals, producers and CSR’s will
                                                   members of Congress to support the bill,
endorsement setting forth the $100 billion
                                                   citing the need for stronger building codes                                            Invisible,
                                                                                                                    author of Selling the Invisible, What Clients Love and Invisible Touch, draws
cap, and revised exclusion endorsements.                                                                            on 25 years of experience with service industry organizations and extensive
                                                   to increase building safety.
                                                                                                                    work with many Fortune 500 companies to help your agency reach new
Captives group files comments                      The Community Building Code Administra-                          heights of success.
                                                   tion Act of 2007 would provide $100 million
on IRS tax regulations                             over a five-year period to help local and state
Responding to proposed IRS regulations             authorities enact and enforce building codes.
                                                                                                                                        June 26-28, 2008
that would negatively impact certain captive       Building code administration and enforce-                                               Waterside
                                                                                                                                   Norfolk Waterside Marriott
insurance companies, the Captive Insurance         ment is generally funded by states without
Council of the District of Columbia Inc. said      federal assistance.                                                                                IIAV
                                                                                                                               Registration open to IIAV members and non-members.
it filed comments with the IRS requesting                                                                                                                              
                                                                                                                         For registration, exhibit and lodging information visit
that the proposed regulations be withdrawn.

“Our comments are focused on what we                                News straight to your inbox.                                                  Virginia
                                                                                                                  Independent Insurance Agents of Virginia
believe to be a fundamental misunderstand-                              Subscribe at                                                             VA
                                                                                                                  8600 Mayland Drive, Richmond, VA 23294
                                                                                                                  804-747-9300 / 1-800-288-4428
ing of insurance accounting by the IRS,”
said CIC-DC Chairman Larry Smith. “We

Virginia                                                                      Insurance & Financial Advisor   |                                                      February 2008   |   15
     Long Term Care
   Agent Training Event
  Stay Informed
                                                                                                          COMPANYNEWS                          Insurance & Financial Advisor |

                  LTC Industry Update
                                                                                                          MetLife to pay $1.7 billion policy dividend
                                                                                                          Life        MetLife Inc. announced three of its life insurance subsidiaries – Metropoli-
                Tuesday, March 11 from 1:00 pm – 4:00pm
                                         th                                                                           tan Life Insurance Co., New England Life Insurance Co. and General

                            Vienna, Virginia
                                                                                                          American Life Insurance Co. – will pay an aggregate amount of about $1.7 billion in policy
                                                                                                          dividend payments to eligible life insurance policyholders for 2008.

                                Presented by:                                                             Eligible life insurance policyholders include MetLife clients with in-force permanent life
                                                                                                          insurance policies, primarily whole life and certain term life insurance.
                    David Hillelsohn, Brokerage Manager
                                                                                                          Life insurance policy dividends are based on the performance of participating policies,
                    The Haslett Management Group, Inc.                                                    including investment returns, mortality, persistency and expenses, among other factors.

    Seminar will include highlights from David’s presentation                                             Former Reinsurance managers open new firm
         at the 2008 LTC Sales Summit in Atlanta, GA.

                      The Haslett Management Group, Inc
                                                                                                          Property/  Two insurance industry leaders have formed an underwriting manage-
                                                                                                          Casualty   ment company to take advantage of the rapidly changing insurance

                                   LTC Agency Brokerage
                                                                                                          industry marketplace.

                                                                                                          James N. Stanard, former CEO of Renaissance Re and Rod Fox, former CEO of Praeto-
                                                                                                          rian, have joined forces to launch New Asset Class Management. It will be wholly
                                                                                                          owned by F&S Ventures, a privately held investment company.
     LTC Market Update                                                                                    New Asset Class will generate income from three sources: Managing and acquiring
     Current Product Review
                                                       Register now at
                                                                                                          large portfolios of insurance risk; managing risk portfolios for insurance carriers; and pro-

     Corporate Solutions
                                                                                                          viding advice and risk analysis to insurers, hedge funds, private equity firms and other

                                                                                                          investors interested in insurance risks.
     Sales Tools                                                                                          While insurance rates are softening in some sectors and remaining firm in others, under-
                                                                                                          writing remains the key determining factor in insurance profitability. New Asset Class will
                                                                                                          specialize in rigorous underwriting using resident expertise and the latest technology.

        It’s That Easy!
                                                                                                          Sun Life celebrates growth of stop-loss business
                                                                                                          Life         The U.S. division of Sun Life Financial, having just reached its 25th anniver-
                                                                                                          Insurance    sary, has 1,665 self-funded, employer stop-loss plans, covering more than
                                                                                                          2.5 million employees.

         A revolutionary improvement in member dental benefits
                                                                                                          Company officials say the Wellesley, Mass.-based company is one of the large providers
                                                                                                          of stop-loss insurance in the U.S.
                                                                                                          The company acquired Genworth Employee Benefits Group in June, which significantly
                                                                                                          increased its customer base and expanded its distribution network to 34 offices nation-
                                                                                                          “Self-funding is an effective way for employers to reduce health plan costs without sacri-
                                                                                                          ficing high-quality benefits,” said Christopher Brown of Sun Life. “We’re committed to
                                                                                                          making self-funding more affordable with enhanced services, strong contract provisions
                                                                                                          and programs.”

                                                                                                          Unum Group establishes credit facility
                                                                                                          Financial      Unum Group established a $400 million unsecured revolving credit facility.
                                                                                                          Services       The facility was arranged through Wachovia Capital Markets LLC and Banc
                                                                                                          of America Securities LLC. The company intends to use any drawn borrowings from the
                                                                                                          facility for general corporate purposes.

         Group-level dental benefits for members of:                                                      Progressive notes losses in fall sales
           Associations        Credit Unions          Colleges        Chambers                            Property/ Progressive, which sells insurance online at and through
       ● Direct member billing and group billing options              Brought to you by
                                                                                                          Casualty  about 30,000 independent agents, reported that net premium written

       ● Monthly payments start at just $7.50
                                                                                                          dropped 5% in November, to $912.8 million, compared to the same month a year ago.

       ● Easy online enrollment                                                                           The company reported $1.048 billion in net premium earned (down 3%) and $93 million
       ● Customized group website provided at no charge
                                                                                                          in net income (down 29%) for the month. The company was the first to sell auto insur-
       Call Mona Bakaly at 703-518-5000, ext. 3043 in Northern VA
                                                                                                          ance online, starting in 1997.
       Call Beth Stoner at 804-282-7003 in Central and Southeast VA

                                                                                                                                    For the latest Company News, go to

16 | Virginia                                                             Insurance & Financial Advisor    |                                                               February 2008
                                                                                                                     // PARTNERSHIPS                                   // HEALTH INSURANCE

  notablenews                                                                                                        ImageRight software gains
                                                                                                                     new mid-Atlantic clients
                                                                                                                                                                       athenahealth to collaborate
                                                                                                                     ImageRight, a provider of insurance-fo-           UnitedHealthcare and athenahealth
                                                                                                                     cused content management and work-                Inc. are collaborating to further expand
                                                                                                                     flow solutions, recently gained five new          the two companies’ national real-time
                                                                                                                     clients, two of which do business in the          claim adjudication capabilities.
                                                                                                                     mid-Atlantic.                                        This collaborative effort enables
                                                                                                                        Rockingham Mutual Insurance Co. is             physician offices nationwide using
                                                                                                                     a Harrison, Va.-based subsidiary of the           athenahealth’s on-demand practice
                                                                                                                     Rockingham Group, which provides in-              management service to submit United-
                                                                                                                     surance services throughout Virginia and          Healthcare claims and receive a fully ad-
                                                                                                                     Pennsylvania. Appalachian Underwrit-              judicated response in seconds, showing
                                                                                                                     ers, a brokerage outlet for agents need-          physician office staff and patients how a
                                                                                                                     ing workers’ compensation and certain             claim will be paid.
                                                                                                                     lines of commercial insurance, does                  Currently, athenahealth, which oper-
                                                                                                                     business in Virginia, New Jersey, Penn-           ates in 33 states, including Virginia, Mary-
                                                                                                                     sylvania and Maryland. IFA                        land and Washington, D.C. IFA

    GEICO recognizes employees' service
    GEICO recently celebrated the careers of 29 Stafford County associates who represent a combined                                                      Associate in Insurance
    total of 935 years of service to the company. President and CEO Tony Nicely congratulated those asso-
    ciates celebrating 25, 30, 35, 40 and 45 years with the company.
    Pictured (from left) are Nicely, Garry Folkerts, a 35-year veteran, and Nancy Pierce, regional vice pres-

                                                                                                                                                         The Most Comprehensive Insurance
    ident of operations in Fredericksburg.

                                                                                                                                                         Sales Training Course Available!
    Send photos of your company events and happenings:

                                                                                                                                                         The AIP Designation Program teaches the
InsWeb launches new agent directory                                                                                                                      full psychology of the sale, from negotiation
                                                                                                                                                         skills and time management to relationship
Searchable online guide to help                              can view their contact information along
                                                                                                                                                         building and teamwork.
consumers find agents in Virginia                            with a link to a website.
                                                                The program, according to the com-
                                                                                                                           AIP designees                                                       Starts
                                                                                                                          average $65,000                                                     Soon!
    InsWeb recently launched its new                         pany, will be one of the largest online di-
                                                                                                                                                                          Why AIP?
agents directory primarily for auto and
property coverage in Virginia and nu-
                                                             rectory to focus exclusively on insurance
                                                             agents, giving agents a cost-effective way
                                                                                                                          in commissions
                                                                                                                                                         • Sales trailing for one year−not one week.
merous other states.                                         to connect with the rapidly growing pool
    Agent Directory is an online guide that                  of consumers who begin their insurance                                                      • Monthly mentoring
provides consumers who are searching                         search online. Agent Directory is line-
for insurance with a focused, prioritized                    specific and will show the consumer only                         • 20 P&C/L&H
                                                                                                                                                         • Goal setting and reports are key essentials of
list of local insurance agents. Insurance                    eight local agents. The agents who are                              credits                   the program
agents can target specific counties where                    enrolled can target any or all counties                                                     • Build your own sales library with invaluable
they want to be listed, and consumers                        within 25 miles of their offices. IFA                            • 12 Days of                 reading material given during classes.
                                                                                                                                                         • Taught by IIAV trained facilitator and guest
Associations plan Insurance Day on the Hill                                                                                   • REGISTER                   speakers
Three groups join forces for event at Downtown Richmond Marriott in February                                                     Class size limited to           Enroll today to get on a path
The 2008 Insurance Day on the Hill will                      state bills for 2008.                                               15 participants.                    to create $65,000 in
be held Feb. 6 and 7 at the Downtown                             Speakers include Robert Graboyes                                                                         commissions!
Richmond Marriott. The two-day event is                      and Julia Ciarlo Hammond of the Na-                              • Appropriate for
hosted by the Independent Insurance                          tional Federation of Independent Busi-
                                                                                                                                 both P&C and
                                                                                                                                 L&H agents                   For more course dates and locations and more
Agents of Virginia, the Virginia Council of                  ness; Robert Bradshaw, of the IIAV; Ger-                                                     information on the AIP Program courses and IIAV’s
the National Association of Insurance                        ald Milsky and John Prible of IIABA; and                                                    other Educational Resources, please visit our website:
                                                                                                                              • Consistent
Women, the Virginia Association of Insur-                    Robert D. Holsworth, professor of po-
                                                                                                                                 training over 12              
ance of Insurance and Financial Advisors                     litical science at VCU and political an-
                                                                                                                                 months–not just
and the Greater Richmond CPCU Society.                       alyst who has appeared on several net-                                                                                       8600 Mayland Drive
                                                                                                                                 one week!
   Registration for the event begins                         work news shows.                                                                                                          Richmond, Virginia 23294
Feb. 6 at noon. Activities start at 1 p.m.                       For more information, call 804.747.9300                                                                                Phone: (804) 747-9300
                                                                                                                                                                                       Toll Free: (800) 288-4428
and include a review of federal and                          or visit the IIAV, IFA                                                                                         Fax: (804) 747-6557

Virginia                                                                                  Insurance & Financial Advisor   |                                                    February 2008   |   17
Health: Kaine proposes expanded care                                                            households. In addition, the study re-
                                                                                                ported that $1.45 billion in care was pro-
                                                                                                                                                access to health insurance coverage for
                                                                                                                                                low-income families earning 200% of the
                From page 1                   money will be allocated for this until            vided for the uninsured in 2005.                federal poverty level or less, which work
                                              2009, said Bob Bradshaw, executive vice              The commission had recommended               for small businesses.
Group President Monty Dise, who repre-        president of Independent Insurance                that the state spend $20 million to create         “The huge thing about it, at least
sented the Independent Insurance              Agents of Virginia, which lobbies for             a private health insurance product for          from an agent perspective, is it will be
Agents of Virginia on the governor’s          agents before the General Assembly.               those uninsured who were eligible.              sold through agents,” Bradshaw said.
Health Insurance Taskforce.                      “It’s a start. It’s not going to solve all        Mark Khatib, direc-                             Within the program, the cost of insur-
   “However, Virginia Share will have one     of the uninsureds’ problems, but it’s             tor of sales and opera-                         ance will be shared in thirds by the state,
big difference,” he said. “We intend to al-   reasonable in the area of preventive              tions with EBCA in                              the individuals and their employers. The
low independent insurance agents to           care,” Dise said.                                 McLean, Va., said he                            state will cover up to $75 per month.
have access to representing this plan,           The state Health Care Reform Com-              has reviewed the gover-                         More than 5,000 Virginians are expected
whereas it is my understanding that           mission, created by Kaine in 2006, issued         nor’s proposal and “as                          to gain health insurance initially.
CoverTN does not allow insurance              a report last September that estimated 1          many in the industry,                              The proposed budget for the program
agents’ access.”                              million state residents were uninsured. In        we are all still waiting                        includes additional funding to support
   The program, VirginiaShare Health In-      addition, a report issued by the Joint Leg-       for more specifics Mark Khatib                  Virginia’s health and dental care safety
surance Program, is voluntary for small       islative Audit and Review Commission              about the pilot program.” He said that          net providers to stabilize their operations,
businesses that want to help their em-        last March, said that most uninsured              helping the uninsured is a common goal          expand access to health and dental care
ployees, but have difficulty affording it.    state residents are low-income people             for those in the industry.                      services, and coordinate services for
As part of the governor’s budget, no          under the age of 35 who live in working              “As agents, we strive to help, when we       uninsured Virginians. The community-
                                                                                                can, each day,” Khatib said. “Assisting         based providers who will receive funding
                                                                                                uninsured women with preventive care is         consist of free clinics, health centers, lo-
                                                                                                critical, especially if a pregnancy is in-      cal health departments, and other local or
                                                                                                volved. However many in our business            regional organizations providing care to
                                                                                                are still looking for more details as we re-    the uninsured.
                                                                                                view the proposed budget.”                         Kaine also plans to expand preventive
                                                                                                   The governor’s program will expand           care for uninsured women. IFA

                                                                                                Travelers agrees to multi-state settlement
                                                                                                $6 million to resolve allegations of running illegal ‘pay-to-play’ scheme
                                                                                                Maryland, Washington, D.C., and                    In addition to the financial settle-
                                                                                                eight other states reached a settlement         ment, Travelers has agreed to disclose
                                                                                                with a large insurance carrier allegedly        compensation that Travelers pays to in-
                                                                                                involved in a “pay-to-play” scheme or-          surance brokers. The company will also
                                                                                                chestrated by insurance broker Marsh            be required to disclose to all customers
                                                                                                & McLennan.                                     and prospective policyholders the
                                                                                                   The Travelers Cos. will pay a multi-         ranges and averages of payments it
                                                                                                state task force $6 million to resolve al-      made to insurance brokers on specific
                                                                                                legations of improper business steer-           lines of insurance.
                                                                                                ing in the commercial insurance                    Travelers has cooperated with the
                                                                                                market that resulted in higher premi-           multi-state task force and will provide
                                                                                                ums being paid by Florida governmen-            assistance to the states as they con-
                                                                                                tal entities, companies and nonprofit           tinue their investigation of insurance
                                                                                                organizations.                                  brokers and other insurers. The com-
                                                                                                   Travelers allegedly conspired with           pany has already reimbursed a na-
                                                                                                Marsh & McLennan and other brokers              tionwide group of policyholders for
                                                                                                to create the illusion of a competitive         overcharges and has adopted signifi-
                                                                                                bidding process by submitting fake              cant business reforms that govern its
                                                                                                bids even though the brokers had al-            bidding and underwriting practices.
                                                                                                ready determined which insurer would               In addition to Maryland, the District
                                                                                                receive a particular policyholder’s             and Florida, the other states that par-
                                                                                                business. Travelers paid “contingent            ticipated in the investigation and set-
                                                                                                commissions” to these brokers, and              tlement are Hawaii, Massachusetts,
                                                                                                these commissions were not disclosed            Michigan, Oregon, Texas, West Virginia
                                                                                                to policyholders.                               and Pennsylvania. Litigation against
                                                                                                   “Policyholders deserve to know ex-           Marsh & McLennan continues. IFA
                                                                                                actly what they are paying for and that
                                                                                                they are not paying for hidden
                                                                                                                                                               Did you miss online exclusives?
                                                                                                charges,” said Alex Sink, Florida’s chief
                                                                                                financial officer who oversees the De-
                                                                                                partment of Financial Services.

18 | Virginia                                                        Insurance & Financial Advisor   |                                                            February 2008
 Life Insurance                                                                                         associationnews
 Financial Services                                                                                     Capital I Day slated for March 18 in D.C.
                                                                                                           The annual Capital I Day has been scheduled for Tuesday, March 18, at the

Life settlement act passed                                                                              Hilton Hotel in Rockville, Md.
                                                                                                           The location is new this year, but the event’s contents remain the same. Exec-
                                                                                                        utives from various insurance associations organize the event to call attention to
                                                                                                        industry trends and new information about the insurance industry.
NCOIL calls on states to approve its version of model law                                                  The event is scheduled for 7:30 a.m. to 4:30 p.m..
                                                                                                           Agents and brokers from throughout Maryland, Virginia and Washington, D.C.
The National Conference of Insurance          from the recent amendments to the
                                                                                                        participate in the event each year. Attendees can earn multiple continuing edu-
Legislators recently unanimously ap-          NAIC Viatical Settlements Model Act,
                                                                                                        cation credits during a variety of workshops and educational sessions taught by
proved the Life Settlements Model Act.        which was adopted over the objection or
                                                                                                        executives in their respective fields. In addition to speakers, the day provides
   “This action was taken only after fully    abstention of some NAIC member states.
                                                                                                        agents and brokers with an opportunity to network with one another.
vetting all issues over more than 40 hours       “The adoption of the NCOIL Model
                                                                                                           The Hilton Hotel is located at 1750 Rockville Pike in Rockville.
of meetings between all interested par-       Act shows that even if all parties do not
                                                                                                           For more information or to register, call 703-706-5446.
ties in concert with the NCOIL legislators    agree with all portions of the final act, the
and staff. The model was crafted to meet      process works, and the property rights of
the stated objectives of the legislators,”    the consumers that the Model Act was
said Scott Cipinko, executive director of     aimed at protecting were considered.
the Life Insurance Finance Association, a     The NCOIL Model Act as adopted, unlike
nonprofit trade association comprised of      the NAIC Model Act, adequately consid-
individuals and companies involved in         ers those essential rights,” said Cipinko.
the life insurance premium finance in-
dustry. The group supported the model         Industry collaboration
act’s passage and has called on states to        Consumer groups and a number of
approve the model.                            trade associations representing the life

   LIFA believes the NCOIL Model Act adoption by
      states will protect consumer property rights.

   “In addition, the adopted changes rec-     insurance and life-settlements markets
ognize how the life insurance industry        collaborated with LIFA to represent the
and the secondary markets actually oper-      life insurance premium finance industry
ate,” Cipinko said.                           to fashion amendments to the model act.
                                                  LIFA said it believes that the adoption
Differing from NAIC model                     of the NCOIL Model Act by the states will
   Key changes to the NCOIL Model Act         protect consumer property rights. Fur-
include language concerning the use of        thermore, it will prevent abuses in the
trusts in connection with the creation of     market referred to as SILI, which the
Stranger Initiated Life Insurance (SILI).     changes were drafted to address, the
These changes differ from the National As-    group said. LIFA said it continues to sup-
sociation of Insurance Commissioners          port the efforts of state policymakers to
Model Act amendments in that they di-         eliminate such abusive transactions.
rectly address the creation of these          While LIFA believes premium-finance
arrangements. In addition, the NAIC           lenders must be subject to reasonable
Model Act extended the time during which      regulation, it also advocates strongly for
a policy owner is prohibited (with certain    the protection of consumer rights.
limited exceptions) from selling a life-in-       LIFA will continue to support the
surance policy in the secondary market        rights of all consumers to purchase and
from two years to five years, which, ac-      sell life-insurance policies and will op-
cording to consumer advocates, including      pose the NAIC legislation in any state.
the Center for Economic Justice and the       LIFA also called on the state legislatures
Florida Consumer Action Network, im-          to adopt the NCOIL Model Act in order to
pairs the property rights of consumers        protect consumers. IFA
rather than actually addressing the cre-
ation of these arrangements. The NCOIL          // OnlineUpdates
model retains the two-year provision.           Keep track of the latest developments in local
   Cipinko added that this round of             and national insurance news every day at one,
                                                convenient source.
NCOIL amendment adoptions differs

Virginia                                                                Insurance & Financial Advisor   |                                                  February 2008    |   19
Advice: Affluent boomers eschew financial help with investing                                                                                                    Calendar
                     From page 1                                 more times a year, according to the                 In the South region, the study found        of Events
                                                                 study. Another 2% could not recall the           42% of respondents said they had
Maryland, Virginia and Washington, D.C.,                         last time they checked their investments.        “enough funds to retire comfortably,”      I   February
turn to a professional advisor for assis-                           The data suggests an opportunity for          26% said they had enough “but would            5 – Agency Operations – CISR.
                                                                                                                                                                 Richmond, Va. Contact: 804-264-2582, or
tance with their investments, according                          financial service professionals in the re-       have to reduce their lifestyle” and 4%         email or
to new research. Bell Investment Advi-                           gion, as high net-worth individuals seek         said they did not have enough money  
sors, an Oakland, Calif.-based wealth                            to preserve and protect their wealth for         with which to retire.                          6-7 – Insurance Day on the Hill - IIAV.
management firm, has surveyed the new                            themselves and their heirs. Those goals             About 71% of boomers in the region          Richmond, Va. Contact: 800-288-4428.
class of baby boomers for the last two                           will be more challenging for boomers             have participated in a 401(k) or 403(b)        8 – Mini-Course- SFSP-Richmond.
years, breaking them into four geo-                              than for the people who modeled finan-           plan during their careers, with 28%            8:30-10:30 a.m. 4807 Emerywood Parkway,
                                                                                                                                                                 Richmond, Va. Contact: Ginny Crenshaw,
graphic regions, including Northeast,                            cial planning to them: their parents.            saying they did not and 1% saying they         804-741-2043.
South, Midwest and West.                                            Boomers are living longer, generat-           did not know. Of those who partici-            13 – William T. Hold Seminar-
   About 25% of Southerners manage, re-                          ing more wealth and more eager to par-           pated in a 401(k) or 403(b) in this re-        Personal Lines – CISR. Chatilly, Va.
view and reallocate their investments                            take of an active lifestyle than their par-      gion, more than three quarters (85%)           Contact: 804-264-2582, or email
once a year, and 21% of respondents say                          ents. At the same time, they also hope           considered it important to their overall
they manage and reallocate them two or                           to provide for their children.                                                                  14 – Membership Meeting –
                                                                                                                  retirement savings. IFA
                                                                                                                                                                 Shenandoah Valley AIFA. 10:15 a.m.
                                                                                                                                                                 Mrs. Rowe’s Restaurant, Mt. Crawford.
                                                                                                                                                                 Contact: Robert E. West Jr., 757-397-

                                        INSURANCE MARKETPLACE                                                                                                    20 – VTC/DVD Teleconference-
                                                                                                                                                                 SFSP Norfolk-Tidewater. 9:00
                                                                                                                                                                 a.m.-12:00 p.m. Niel Friedman Insurance
                                                                                                                                                                 Agency, Virginia Beach, Va. Contact: Jane
                                                                                                                                                                 E. Martin, 757-363-7345.

                                                                                                                                                                 28 – Commercial Property – CISR.
                                                                                                                                                                 Roanoke, Va. Contact: 804-264-2582, or
                                                                                                                                                                 email or
                Earn Commissions…                                                                   We have excellent markets for                            I   March
                                                                                                   garage clients, including used auto
                Use Benefit Providers as your hidden secret, to                                                                                                  5 – Commercial Casualty – CISR.
                                                                                                      dealers and tow operations.                                Richmond, Va. Contact: 804-264-2582, or
                provide your client(s) with Individual or Comprehensive
                Service packages, that include:
                                                                                                        Let us work for you.                                     email or
                • Internet based Human Resource Information System – HRe-file
                                                                                                          check out our online                                   7-8 – 2008 Annual PIA Young
                • Section 125/132 Administration                                                          APPLICATIONS                                           Professionals Spring Conference.
                                                                                                                                        Great Wolf Lodge, Williamsburg, Va.
                • COBRA Administration                                                                                                                           Contact: 804-264-2582, or
                • Payroll Processing                                                                                                                   
                • FSA/HRA/HSA Debit Card Issuance and Administration Program                               800-396-6226 ext. 108                                 10-14 – Property & Casualty Pre-
                                                                                                                                                                 Licensing Seminars – IIAV. Richmond,
                                                                                                                                        Va. Contact: Rhonda Ligon, 1-800-288-IIAV.
                    Contact:    Joel H. Bernstein                                                                                                                11 – Third Annual RISC
                                                                                                                                                                 Conference-IIAV and the Virginia
                    office: 877-370-2226 cell: 703-906-8625                                                                                                      Bureau of Insurance. VCU School of
                       205 South Whiting Street, Suite 311, Alexandria, VA 22304                                                                                 Business. Contact: 804-828-1486, or
                                                                                                                                                                 12 – Bernard Wilner Award
                                                                                                                                                                 Luncheon. Congressional Country Club,
                                                                                                                                                                 Bethesda, Md. Contact: Barbara
                                                                                                                                                                 Hildenbrand, 703-820-1989.
                                                                                                   SIMPLE Online Quoting                                         13 – Commercial Property – CISR.

                                                                                                                                                                 Fredericksburg, Va. Contact: 804-264-
                                                                                                                                                                 2582, or email or
                 New Individual Products!!                                                  Get a bindable quote anytime, anywhere you
                                                                                                                                                                 20 – Agency Operations – CISR.
                                                                                                                                                                 Roanoke, Va. Contact: 804-264-2582, or
                                       for January 2008                                              can connect to the internet                                 email or
                                                                                               200 eligible classes of Commercial Business             
                        PPO, HSA and Foursight plan designs
                                                                                                                                                                  26 – Accredited Advisor in
                                                                                                                                                                 Insurance Seminar. 127 Peyton St.,
                    For appointment paperwork, web based training,                                             Log-on Today:                                     Alexandria, Va. Contact: Suellen Terrell,
                               or more information call                                          804-747-9300, or email
                           Genna Zapolsky 877-777-9554
                                                                         SIMPLE for You
                                                                                                      Atlantic Specialty Lines                               Send Your Events!
                                                                                                          800-368-2095                                       • The easiest way to submit events is online:

                                                                                                                                                                   Phone: 703-807-2001 Fax: 410.667.7977

20 | Virginia                                                                          Insurance & Financial Advisor   |                                                     February 2008
                                                                                               // TRAINING
                       Letters to the editor                                                   Disability insurance
                                                                                                                                                              Critical Illness, Sept. 24.
                                                                                                                                                                 For more information or to register,
                                                                                                                                                              contact Ellicott City, Md.-based Finan-
                                                                                               Webinars scheduled                                             cial Solutions Group at 800-995-6532 or
Life agent feels burdened by state regulators and carriers                                     Financial Solutions Group is a local                           email IFA
as he has watched industry change over last 25 years                                           sponsor for DI Day Training Webinars
                                                                                                                                                              // PROPERTY-CASUALTY
                                                                                               scheduled for each month.
                                                                                                  The 30-minute sessions begin at 2                           Atlantic Specialty has new
Dear Editor:
                                                                                               p.m. and are being put on by The Plus
                                                                                               Group, a disability insurance marketing                        condo/townhome product
   As a life agent, I find your Publisher’s Note (“Agents face dire future,” No-               organization and founder of DI Day. No                         Atlantic Specialty Lines of Richmond,
vember 2007) scary. When I made a career change into the life insurance busi-                  fee is charged.                                                Va., is partnering with United States Lia-
ness 25 years ago, I thought I was getting into a noble profession where the hard-                Sessions include: DI and the Busi-                          bility to offer a new condominium/town-
est part was finding prospects to talk to. Ironically, that’s the easiest part in this         ness Owner, Feb. 23; The Top Hat Pro-                          home association package product,
age of technology. One of my questions is how did we go from agencies or agent                 gram, March 19, Impaired Risk DI                               which is available in Virginia.
distribution systems supporting insurance companies to agents/brokers doing                    (graded benefit), April 23; Protecting                            Officials with Atlantic Specialty Lines
the same thing and now being treated like we are at the bottom of the “food                    Your Client’s Retirement, May 21;                              said the new coverage includes the avail-
chain?” I feel we are sheep slowly being led to slaughter not only by state in-                Buy/Sell and BOE Market, June 25,                              ability of GL, D&O, crime, fiduciary, EPLI,
surance departments but by the very insurance companies we are licensed with                   Guaranteed Issue Market, July 23; Spe-                         umbrella and property lines, contained
and support.                                                                                   cial Risk Insurance, Aug. 20; and DI and                       within a package policy. IFA
   As a one-man operation, I feel burdened by the following:
   The abundance of paperwork needed to submit an application. Yet, these
are the same companies that want you to “download” your commission state-
ments and ETF your commission checks. Like I have nothing better to do than
“download” statements from all of the companies I’m licensed with. Not to
mention that they update and change their forms without notice and threaten
to not pay you until the new forms are signed.

  ‘We are sheep slowly being led to slaughter by
  the state, but by the carriers we support.’
                                                                                                        Q:                       Helping my clients manage their
                                                                                                                                 healthcare benefits can be overwhelming.
                                                                                                                                 Is there any way to make things simpler?

   Front line companies being controlled by the re-insurance companies.
                                                                                                        and                     Give yourself and your clients 24/7 access to

It used to be that the front line companies had some “wiggle room” when                                                         benefits information. Online tools educate and
dealing with cases but not now. They are afraid of audits and losing their re-                                                  improve administrative accuracy.
insurance treaties. In my twenty-five years, I have seen “slow” underwrit-
ing and “strict” underwriting but I have never seen it “strict” and “slow”, like
it is now.
   Some states require replacement forms when no replacement is noted on
the application. How dumb is that? Most applications ask if replacement is in-
dicated and how much is in-force. Not to mention that the client has to ini-
tial if he or she doesn’t want the form read out loud. Wow.
   Non-uniformity of paperwork. I am licensed in many states. Why does
there have to be fifty different AIDS consent testing forms?
   Finally, my favorite. Anti-money laundering. Insurance companies have
been accepting large sums of money from people for years without care of
where it came from. Do you think with all of the publicity that the Patriot Act
received that there will be a member of a drug cartel or terrorist group that is
looking to launder money trough an insurance company? Then they “insult”
us by making the AML a yearly course to take.                                                             The cost of benefits. The value of benefits. How do you keep
   I’m sure there are many dedicated people in our industry who serve for our                             them in balance? As the region's premier employee benefits
better good but I don’t know how we evolved into the position we are in. My                               administrator, KELLY has the experience, the technology,
only wish is that I retire before it’s my turn “for slaughter.”                                           the alliances and - best of all - the ideas to help you make
                                                                                                          the right decisions, for your clients and their employees.
                                                                                                          Call us today, and everyone will benefit.
   Joseph F. Kisleiko III
   K-C Financial Group Inc.
                                                                                                                                The Answer is KELLY.
                                                                                                          Call 1-800-972-7227 or 703-847-6572 /
What do you think?                                                                                                          E-mail a question regarding your business benefits to
                                                                                                              and it may appear in one of our future ads.   A Division of Kelly & Associates
                                                                                                                                                                                           Insurance Group
We want to hear from you. Send a letter to

Virginia                                                            Insurance & Financial Advisor   |                                                                     February 2008           |   21
                                                                                                          For the Record
                                                                                                     Virginia agent & carrier fines
                                                                                                     The following summaries are based on information obtained from the State
                                                                                                     Corporation Commission, Virginia Bureau of Insurance (BOI).

                                                                                                     Thomas J. Spellman III                                         Synopsis: Valdez failed to report to the commission
                                                                                                          Virginia Beach, Va.                                       within 30 days an administrative action that was
                                                                                                          Action: Spellman is ordered to pay a settlement of        taken against him by the state of Utah; failed to re-
                                                                                                          $500.                                                     port to the commission and to every insurer for which
                                                                                                          Synopsis: Spellman failed to hold all premiums, re-       he is appointed any change in his residence or name;
                                                                                                          turn premiums, or other funds received in a fiduciary     and failed to request a hearing or otherwise commu-
                                                                                                          capacity; failed to maintain an accurate record and       nicate with the bureau.
                                                                                                          itemization of funds deposited into a separate fiduci-    Case INS-2007-00289
                                                                                                          ary account; and commingled business or personal         Lori M. Herron
                                                                                                          funds with funds required to be maintained in a sep-
                                                                                                                                                                    Jamestown, N.C.
                                                                                                          arate fiduciary account.
                                                                                                                                                                    Action: Revocation of insurance license; all appoint-
                                                                                                          Case INS-2007-00239
                                                                                                                                                                    ments issued under licenses are void; may not apply
                                                                                                     Premier Brokers Inc.                                           to be licensed as an insurance agent in Virginia for
                                                                                                          Virginia Beach, Va.                                       five years.
                                                                                                          Action: Premier Brokers is ordered to pay a settle-       Synopsis: Herron failed to report to the commission
                                                                                                          ment of $500.                                             within 30 days an administrative action that was
                                                                                                          Synopsis: Premier Brokers failed to hold all premi-       taken against her by the state of North Carolina; and
                                                                                                          ums, return premiums, or other funds received in a fi-    failed to request a hearing or otherwise communi-
                                                                                                          duciary capacity; failed to maintain an accurate          cate with the bureau.
                                                                                                          record and itemization of funds deposited into a sep-     Case INS-2007-00290
                                                                                                          arate fiduciary account; and commingled business or      Sharon Burton McCormick
                                                                                                          personal funds with funds required to be maintained
                                                                                                                                                                    Lynchburg, Va.
                                                                                                          in a separate fiduciary account.
                                                                                                                                                                    Action: McCormick is ordered to pay a settlement of
                                                                                                          Case INS-2007-00238
                                                                                                     Jillian Auty                                                   Synopsis: McCormick failed to retain all records rel-
                                                                                                          Virginia Beach, Va.                                       ative to insurance transactions for the three previous
                                                                                                          Action: Auty is ordered to pay a settlement of $500.      calendar years; failed to make records available
                                                                                                          Synopsis: Auty provided materially incorrect, mis-        promptly upon request for examination by the com-
                                                                                                          leading, incomplete or untrue information in her li-      mission or its employees; failed to pay funds in the
                                                                                                          cense application filed with the commission.              ordinary course of business to the insured or his as-
                                                                                                          Case INS-2007-00262                                       signee, insurer, insurance premium finance company
                                                                                                                                                                    or agent entitled to the payment; failed to hold all
                                                                                                     Charles Jon Pellissier                                         premiums, return premiums, or other funds received
                                                                                                          Citrus Heights, Calif.
                  Financial Solutions Group, Inc.                                                         Action: Revocation of insurance license; all appoint-
                                                                                                          ments issued under licenses are void; may not apply
                                                                                                                                                                    in a fiduciary capacity; failed to maintain an accurate
                                                                                                                                                                    record and itemization of funds deposited into a sep-
                                                                                                                                                                    arate fiduciary account; commingled business or per-
                            5114 Dorsey Hall Drive, Ellicott City, MD 21042                               to be licensed as an insurance agent in Virginia for      sonal funds with funds required to be maintained in a
                                                                                                          one year.                                                 separate fiduciary account; and conducted the busi-
                                                                                                          Synopsis: Pellissier failed to request a hearing or       ness of insurance under an assumed or fictitious
       Sales Idea                      Do you enjoy medical                                               otherwise communicate with the bureau; provided           name without notifying the bureau.
                                          underwriting?                                                   materially incorrect, misleading, incomplete or untrue    Case INS-2007-00229
                               Can you carve your groups out down to 2 employees?                         information in his license application filed with the
        Do your health                                                                                    commission.                                              Banner Life Insurance Co.
     insurance groups or         Do you love gathering income documentation?                                                                                        Rockville, Md.
                                                                                                          Case INS-2007-00291
      medical insurance           We Didn’t Think So!!!                                              Ann Marie Nashif Nelson
                                                                                                                                                                    Action: Banner Life Insurance is ordered to pay a
                                                                                                                                                                    settlement of $5,000.
    clients have a waiver                                                                                 Action: Nelson is ordered to pay a settlement of          Synopsis: Banner Life Insurance failed to give to an
      of premium benefit        Spend more time doing what you want to do and                             $500; is placed on probation for a period of two          applicant for insurance written notice of an adverse
                                 less time dealing with underwriters and paper.                           years; must notify her current and any potential fu-      underwriting decision in the form approved by the
          if employees                                                                                    ture employer during the two year period of her pro-      commission.
       become disabled?                                                                                   bationary status.                                         Case INS-2007-00208
                                      Here is a SIMPLE solution:                                          Synopsis: Nelson failed to report to the commission
                                                                                                          and to every insurer for which she is appointed          Justin Marc Howard
                No?               With as few as 2 employees you can offer Guaranteed                                                                               Scottsdale, Ariz.
                                                                                                          within 30 days a change in her residence address; af-
                               Issue Life, Guaranteed Issue STD and/or Guaranteed                         fixed the signature of another person to a document       Action: Howard is ordered to pay a settlement of
                                Issue LTD on a single employer app, no medical questions,                 pertaining to the business of insurance without the       $500.
   Offer them Guaranteed       no tax documents, with a 3 year Own Occupation Defenition,                 written authorization of such person; improperly          Synopsis: Howard failed to report to the commis-
     Issue STD and LTD           partial, pre-x conditions covered, premium waiver, survivor              withheld, misappropriated or converted any moneys         sion within 30 days an administrative action that was
     so their employees           benefit, no individual coverage offset, jet issue same day              or properties received in the course of doing insur-      taken against him by the state of Massachusetts.
                                              group number with a major carrier.                          ance business; and demonstrated financial irrespon-       Case INS-2007-00237
        can pay their                                                                                     sibility in the handling of agency funds.
       medical/health                           Oh, by the way:                                           Case INS-2007-00272
                                                                                                                                                                   Bruce Edward Cluett
                                  “Excellent vested commissions & renewals”                                                                                         Kingston, Mass.
    insurance premiums                                                                               Joshua Valdez                                                  Action: Cluett is ordered to pay a settlement of
       and other living                       Call Us For Information                                     Helotes, Texas                                            $500.
                                                                                                          Action: Revocation of insurance license; all appoint-     Synopsis: Cluett provided materially incorrect, mis-
       expenses if they
      become disabled.
                                    1-800-995-6532                                                        ments issued under licenses are void; may not apply
                                                                                                          to be licensed as an insurance agent in Virginia for
                                                                                                                                                                    leading, incomplete or untrue information in his li-
                                                                                                                                                                    cense application filed with the commission.
                                                                                                          one year.                                                 Case INS-2007-00275

22 | Virginia                                                             Insurance & Financial Advisor   |                                                                            February 2008
                                                                                                                       // AUTO INSURANCE

                                                                                                                       Car agency adds carriers

Aviena Marlo Moreira                                          to be licensed in Virginia for one year.
                                                                                                             , which expanded
                                                                                                                       its agency last year to include Virginia,
                                                                                                                                                                                    In Memoriam
                                                                                                                                                                                    I Floyd Day Light, 97, of Roanoke, Va.;
  Phoenix, Ariz.                                              Synopsis: Agency Development Services failed to          has added more carriers to its current                         former employee of Shenandoah Life
  Action: Moreira is ordered to pay a settlement of           report to the commission within 30 days an adminis-      28-state agency product offering.                              Insurance Company with 45 years
  $500.                                                       trative action that was taken against it by the state                                                                   of service.
                                                                                                                 offers car insur-
  Synopsis: Moreira failed to report to the commis-           of Illinois.
                                                                                                                       ance and car insurance resources in                          I Andy Davis, 80, of Silver Spring, Md.;
  sion within 30 days an administrative action that was       Case INS-2007-00301
                                                                                                                                                                                      insurance salesman with John Hancock
  taken against her by the state of California; and pro-                                                               all 50 states with added agency rela-                          Insurance and Financial Services; member
                                                             Metropolitan Life Insurance Co.
  vided materially incorrect, misleading, incomplete or
                                                              Long Island, N.Y.                                        tionships in 28.                              of the Million Dollar Roundtable. Davis
  untrue information in her license application with the                                                                                                                              played for the Washington Redskins for two
                                                              Action: Metropolitan Life must pay a settlement by       announced its recent carrier expan-                            seasons starting in 1952.
                                                              paying interest as required on any claims under Vir-     sions into the existing 28 states.
  Case INS-2007-00282                                                                                                                                                               I James Michael Cochran, 71, of Bluefield,
                                                              ginia-issued individual policies during the period of       Besides Virginia,
                                                              Feb. 1, 2004 to Jan. 2007.                                                                                              Va.; worked for Flat Top Insurance Co.
James F. McMenamin                                                                                                     expanded its agency into 10 other
  Frenkel & Co. Inc.                                          Case INS-2007-00276                                                                                                   I Gordon G. Kemp, 85, of Roanoke, Va.;
  Action: McMenamin and Frenkel & Co. are ordered                                                                      new states in 2007, including Min-                             insurance salesman.
                                                             Kenneth B. Harrison
  to pay a settlement of $1,000.
                                                              Rocky Mount, Va.                                         nesota,     New York,        Michigan,                       I Edelle Burke, 79, of Ashland, Va.; worked
  Synopsis: McMenamin and Frenkel & Co. sold, so-                                                                      Arkansas, Mississippi, South Carolina,                         for Home Beneficial Life Insurance Co.
                                                              Action: Harrison is ordered to pay a settlement of
  licited or negotiated contracts of insurance in Virginia
                                                              $500.                                                    North Carolina, Kentucky, Louisiana,
  on behalf of an insurer not licensed to transact the
                                                              Synopsis: Harrison failed to report within 30 days to    and Pennsylvania. IFA
  business of insurance in Virginia.
                                                              the commission and to every insurer for which he is
  Case INS-2007-00292

                                                              appointed a change in his residence address; made
Agency Development Services Inc.                              false statements or representations on or relative to
  St. Louis, Mo.                                              an application for an insurance policy for the purpose
  Action: Revocation of insurance license; all appoint-       of obtaining a fee, commission or other benefit.
  ments issued under licenses are void; may not apply         Case INS-2007-00299

‘Getting things right’ with auto claims
crucial to customer’s experience
When clients file an insurance claim,                           “It becomes extremely important to
the time it takes to repair the damage has                   manage customer expectations as far as
a major impact on homeowner and auto                         how long it will take for their vehicle or
insurance customer satisfaction, accord-                     property to be repaired or replaced,” said
ing to the J.D. Power and Associates 2007                    Jeremy Bowler, senior director of the in-
Insurance Claims Study.                                      surance practice at J.D. Power and Asso-
   The inaugural study measures auto                         ciates. “Proactively contacting the cus-

                                                                                                                                                                                    Is this how other
and homeowner insurance customer                             tomer, keeping them informed and
satisfaction with the claims process by                      explaining the process at each step can

                                                                                                                                                                                    carriers deal with
examining several key factors. Depend-                       soften the impact of a particularly long
ing upon the complexity of a claim, the                      claim process—enhancing customer con-

                                                                                                                                                                                    an emergency?
  First-of-its-kind study looks at the impacts of
  claims on overall satisfaction with insurance.

customer may experience all or only                          fidence and satisfaction with their insurer.”
some of the following factors: claims set-                      In addition to repair times, the num-
tlement, claim servicing, first notice of                    ber of people a customer interacts with
loss, estimation process, repair process                     throughout the claims process can also
and rental experience.                                       significantly impact satisfaction. While                             At Denex Dental, dependability is more       account management team that keeps
   The study finds that among the two-                       nearly 75% of customers with an agent                                than just a claim. It has been proven        the issues off your desk. Wa nt
thirds of customers whose vehicles are                       contacted their local agency first, more                             since 1965.                                  dependable? Choose Denex Dental.
fixed and returned within 14 days, satis-                    than one-third of these customers were
                                                                                                                                  From unrivaled plan flexibility down to      See how 43 years of experience makes
faction averages 843 on a 1,000-point                        either redirected to call the insurer or
                                                                                                                                  3 life groups, to a straightforward          us the dental carrier you can depend on
scale. However, satisfaction with the                        transferred to a call center. Customers
                                                                                                                                  enrollment process, to a dedicated           at
claims process declines by 71 points                         who are redirected tend to be much less
among the 36% of customers who must                          satisfied with the claims experience.
wait longer than two weeks for their ve-                        The study also finds that one in four
hicle to be repaired. Overall satisfaction                   claimants has out-of-pocket expenses (in
among homeowner insurance customers                          addition to their deductible) that are not                           Please call Sales Support at 866-433-6398 or visit our
is similarly impacted when repairs take                      fully reimbursed. These customers are                                       
longer than initially anticipated.                           the least satisfied with the settlement. IFA

Virginia                                                                                  Insurance & Financial Advisor   |                                                                  February 2008   |   23

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