Washington to get $500,000 from AIG settlement

Washington state will receive $500,000 as part of a multi-state settlement with American International Group, Inc., better known as AIG.


The settlement includes a $100 million fine, divided among the 50 states and the District of Columbia. The company will also pay roughly $46.5 million in additional taxes and assessments. It also agreed to follow a compliance plan designed to fix the problems uncovered in a multi-state probe.

At issue was the company’s pattern of failing to comply with laws related to their handling of workers’ compensation programs. An examination team found a pattern of widespread violations, including using rating plans that hadn’t been filed with regulators and false reporting of the insurance premiums from workers compensation.

Although Washington state provides workers compensation coverage through a state-run program, it became part of the process because it was uncertain if the premium re-allocation would affect the state.

The $500,000 settlement does not go to the insurance commissioner’s office. The money will be deposited in the state’s general fund to pay for other state services.

Job opening: Receptionist

Due to a retirement, we have a job opening for a receptionist.

The person will greet and help visitors and customers visiting our building, as well as answering the main phone line and provide first-tier assistance for people. The person will also analyze service-of-process papaerwork, assist with mail, scan documents, and other duties.

For a more detailed description, please see the job description. Applications are due by Monday, March 7, at 5 p.m.

The Simmonds' Business Insurance Index™ For March, 2011

Here's my read of the current marketplace for upcoming business insurance renewals:



Renewal Premiums: -5%

Renewal Coverages: Liberal Terms

Buyer's Outlook: Long-Term: Prices Flat - Soft Market Continues





I continue to see every indication that the commercial insurance marketplace, as a whole, will continue for at least the next six months as a buyer's market.



Agents keep telling me that they are seeing firmer prices. However, when the actual renewal quotes come in, the prices continue to drop when there is competition for the account.



A recent gathering of insurance executives in Maine included a panel discussion on the future of the market. The room was filled with insurance agents and insurance company people. Many made comments about the current inadequacy of premiums and low-price foolishness. Frankly, what I heard was a complete lack of understanding about how free markets work. Supply and demand always finds a way... The current supply of insurance exceeds demand, so prices decline. Until insurers walk away from clients (decreasing supply), prices will stay at what are historically low levels.



The other part of supply and demand is that suppliers always want high prices, and buyers always want low prices. Push and pull makes it all work.

2010's ten most significant insurance decisions

This article is both funny and informative.

As so often, thanks to Mike Tracy at Rudolph Friedmann for forwarding it to me.