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<title>www.tonysteuer.com RSS Feed</title><link>http://www.tonysteuer.com/index.html</link><description>news from www.tonysteuer.com</description><dc:language>en</dc:language><dc:creator>tony@tonysteuer.com</dc:creator><dc:rights>Copyright 2008 Anthony Steuer</dc:rights><dc:date>2008-09-18T08:31:52-07:00</dc:date><admin:generatorAgent rdf:resource="http://www.realmacsoftware.com/" />
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<lastBuildDate>Wed, 28 May 2008 08:56:33 -0700</lastBuildDate><item><title>California Insurance Commissioner Statement on AIG</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-09-18T08:31:52-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/cbebead053d615d362d74ea7fa0a5d97-29.html#unique-entry-id-29</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/cbebead053d615d362d74ea7fa0a5d97-29.html#unique-entry-id-29</guid><content:encoded><![CDATA[This is the full press release from the California Department of Insurance:


NEWS: 2008 PRESS RELEASE


For Release: September 17, 2008


Media Calls Only: 916-492-3566


Insurance Commissioner Steve Poizner Issues Statement on Federal AIG Action and its Effect on AIG-Owned Insurance Companies in California


SACRAMENTO ― Insurance Commissioner Steve Poizner issued the following statement regarding the two dozen companies under the AIG corporate umbrella that are licensed to sell insurance in California.


"I have made monitoring the AIG issue the No. 1 priority of my department.   The Federal action offers maximum protection for AIG insurance customers in California and elsewhere.   The loan does not create any lien obligations on any of the AIG insurance assets, ensuring that their claims-paying capacity remains strong.


"Even prior to action taken by the Federal government, the companies owned by AIG had the risk-based capital required to operate in the California market.   The financial issues all come from the parent company, AIG, and not its subsidiary insurance companies.   The AIG-affiliated insurance companies remain solid.   We will continue to closely monitor these companies for any changes in their financial condition.


"Should AIG decide to sell any of the insurance companies domiciled in California or those that do business in California, I will closely scrutinize those proposed sales to ensure that consumers receive the protections they deserve.


"Because insurance companies are regulated by the state in which they are domiciled, New York bears the brunt of this regulatory work load.   I called my counterpart in New York earlier in the week to offer assistance.    He deserves a lot of credit for negotiating a deal that provides maximum protection to policyholders and soothes concerns of the financial markets.   We will also continue communicating and working with the National Association of Insurance Commissioners, the body that routinely coordinates the actions of the state Insurance Commissioners."


Background Facts:


&bull; In 2007, AIG was a significant player in the California insurance market.   AIG-owned companies had 1.5 percent of the homeowners insurance market ($98 million in written premiums), 8 percent of the workers compensation market ($725 million in written premiums) and 7 percent of the auto insurance market ($1.5 billion in written  premium).


&bull; Generally, the California Department of Insurance (CDI) regulates individual insurance companies and not their holding companies.


&bull; AIG owns more than two dozen companies licensed to transact insurance in California.   Those companies are 21st Century Casualty Company; 21st Century Insurance Company; AIG Casualty Company; AIG Centennial Insurance Company; AIG Premier Insurance Company; AIU Insurance Company; American General  Indemnity Company; American Home Assurance Company; American International Insurance Company Of California, Inc.  ; Birmingham Fire Insurance Company Of  Pennsylvania; Commerce And Industry Insurance Company; GE Auto & Home Assurance Company; GE Indemnity Insurance Company; Granite State Insurance  Company; Hartford Steam Boiler Inspection And Insurance Company; Insurance Company Of The State Of Pennsylvania; Landmark Insurance Company; National  Union Fire Insurance Company Of Pittsburgh, Pa; New Hampshire Insurance Company; Pacific Assurance; Putnam Reinsurance Company; Transatlantic Reinsurance  Company; United Guaranty Commercial Insurance Co.   Of North Carolina; United Guaranty Credit Insurance Company; United Guaranty Residential Insurance  Company; and Yosemite Insurance Company.


If consumers have questions regarding AIG or any other insurance matter, they should contact CDI at 800-927-HELP.


###


Please visit the Department of Insurance Web site at www.insurance.ca.gov.   Non media inquiries should be directed  to the Consumer Hotline at 800.927.  HELP.   Callers from out of state, please  dial 213.897.8921.   Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.


If you are a member of the public wishing information, please visit our Consumer Services.]]></content:encoded></item><item><title>Washington State Insurance Agents Can Lose License if &#x22;untrustworthy&#x22;</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-09-03T13:03:51-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/3e55c656cc7064462b5e055e22f0cbec-28.html#unique-entry-id-28</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/3e55c656cc7064462b5e055e22f0cbec-28.html#unique-entry-id-28</guid><content:encoded><![CDATA[Insurance agents in Washington state can lose their licenses if they are deemed &ldquo;untrustworthy.&rdquo;    This is according to a recent decision by the Washington State Court of Appeals, which ruled that Insurance Commissioner Mike Kreidler was correct in revoking insurance agent Jack Chandler&rsquo;s license based on Kreidler&rsquo;s ruling that the agent had shown himself to be untrustworthy in his sales conduct with elderly consumers.    The commissioner charged that the agent tried to exploit senior citizens by using deceptive marketing tactics to get them to buy reverse mortgages, living trusts and long term care insurance.   Chandler also failed to disclose complaints against him in California,  the court observed.   The commissioner revoked the agent&rsquo;s insurance license in 2002.   Chandler appealed that decision on the grounds that the term &ldquo;untrustworthy&rdquo; is unconstitutionally vague and subjective.    From: NU Online News Service, Aug.   29, 2008]]></content:encoded></item><item><title>September is Life Insurance Insurance Awareness Month (LIAM)</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-09-02T13:44:17-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/e3de5b9625fa10e649befb9fe1b218df-27.html#unique-entry-id-27</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/e3de5b9625fa10e649befb9fe1b218df-27.html#unique-entry-id-27</guid><content:encoded><![CDATA[LIAM is an educational campaign designed to get consumers to take stock of their life insurance needs and protect their loved ones through proper life insurance planning  


LIAM is an industry-wide effort coordinated by the LIFE Foundation, a nonprofit organization dedicated to helping consumers make smart insurance decisions.    Hundreds of industry groups, including most of the nation&rsquo;s leading insurance companies, participate in the campaign each year.    


For more information visit the LIFE Foundation at www.lifehappens.org]]></content:encoded></item><item><title>Accountant Wins Case Against IRS Involving Demutualized Life Insurance Companies</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-08-26T13:23:11-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/5d907e6ab8a0e57930236dc98e6a529c-26.html#unique-entry-id-26</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/5d907e6ab8a0e57930236dc98e6a529c-26.html#unique-entry-id-26</guid><content:encoded><![CDATA[Charles Ulrich recently beat the IRS in a tax dispute.    Not only that, but tax experts say potentially millions of other taxpayers could benefit from his victory.    The accountant from Baxter, Minn., challenged the method the IRS has used for more than 20 years to tax shares and cash distributed by mutual life insurance firms to their policyholders when they reorganize as public companies.


A federal court recently agreed with his interpretation.   "There's a tremendous amount of money at stake," said Robert Willens, a New York City-based tax analyst at Robert Willens LLC.   "Tens of thousands of people could be in line for a refund."


The dispute arose when more than 30 mutual life insurance companies became publicly traded corporations in the late 1990s and earlier this decade, in a process known as "demutualization."    Mutual companies are owned by their policyholders, so the companies provided stock and cash to compensate them for the loss of their ownership interests when they went public.


All told, roughly 30 million policyholders received distributions, Ulrich estimates.   MetLife Inc. provided over $7 billion of stock to about 11 million policyholders when it went public in 2000, while Prudential distributed $12.5 billion in stock to another 11 million.


The IRS held that the recipients hadn't paid anything for the shares and owed taxes on the full amount when the shares were sold.   Cash distributions also were fully taxable, the IRS said.


That didn't sound right to Ulrich, 72, an accountant for 49 years.   He began researching the issue in 2001, when he received shares from two companies, Prudential and Indianapolis Life.    Ulrich concluded that policyholders had paid for their ownership rights through their premiums so the distributions should have been tax-free.


That could make a significant difference in what a taxpayer owes.   If a company distributed shares worth $30 and a recipient subsequently sold them at $32, under the IRS' view they would pay taxes on all $32.   Under Ulrich's interpretation, they would owe taxes only on the $2 per share gain.   In 2003, Ulrich publicized his views by contacting tax and insurance experts and setting up a Web site ( http://www.demutualization.biz/ ).


Original article post: http://biz.yahoo.com/ap/080824/tax_fight_irs_loses.html through WASHINGTON (AP) --]]></content:encoded></item><item><title>Life Insurance Premiums Expected To Continue to Decrease</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-08-26T13:18:00-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/473d211708acc6433cd2ff40aebf15cf-25.html#unique-entry-id-25</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/473d211708acc6433cd2ff40aebf15cf-25.html#unique-entry-id-25</guid><content:encoded><![CDATA[Life Insurance premiums are expected to decline even more in the coming years.   "We foresee a continued downward trend in life insurance premiums,which began a little more than 10 years ago," says Steven Weisbart,an economist with the Insurance Information Institute.   "It is fair to say that insurance rates are likely to come down because peopleare living longer, insurance companies benefit from the lower cost of reinsurance and insurers are reducing their expenses."


With life expectancies going up, insurance premiums are comingdown.   Since 2000, term-insurance premiums have dropped by more than4 percent a year, according to the Insurance Information Institute,an industry trade group.   In fact, they are now 50 percent lowerthan they were a decade ago, says the group.


This year and next year, term insurance premiums are expected to decline by at least another 2 percent.   Meanwhile, the cost $1per,000 of life insurance coverage for cash value insurancepolicies-such as whole life, universal life and variable universallife-is also on the decline.   Premium rates for cash value insurance policies are lower today than they were five to 10 years ago. 


Overall, Weisbart said the premiums people pay for cash value insurance run about 5 percent lower today compared with 10 yearsago.   So the savings could prove quite attractive for large ticketpolicies of at least $500,000.]]></content:encoded></item><item><title>NOLHGA: Safety Net For Life Insurance Policyholders</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-07-23T07:19:40-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/05c9cb7d20ea88942d6f3e6eb97995eb-24.html#unique-entry-id-24</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/05c9cb7d20ea88942d6f3e6eb97995eb-24.html#unique-entry-id-24</guid><content:encoded><![CDATA[In these uncertain times, the question of solvency becomes relevant.    Though it is rare for a life insurance company to fail, it does happen.    Here&rsquo;s the main thing to know (from the NOLHGA web site):


State life and health insurance guaranty associations provide a safety net for their state&rsquo;s policyholders, ensuring that they continue to receive coverage even if their insurer is declared insolvent.   Working together through NOLHGA, the guaranty associations form a national safety net, protecting insurance consumers all across America in their time of need. www.nolhga.com


While laws governing maximum limits and types of policies covered vary from state to state, most states set basic limits of:


	&bull;	$300,000 in life insurance death benefits


	&bull;	$100,000 in cash surrender or withdrawal value for life insurance


	&bull;	$100,000 in withdrawal and cash values for annuities


	&bull;	$100,000 in health insurance policy benefits


The overall benefit &ldquo;cap&rdquo; in most states for an individual life is $300,000, though some states have maximums that are higher.    Consult your State&rsquo;s Association web site for exact details.   Link to State Web Sites (click here) on.the NOLHGA site.


Links to each State Association can be found on the  NOLHGA web site.   As of 7/23/2008


<script src="http://digg.com/tools/diggthis.js" type="text/javascript"></script>]]></content:encoded></item><item><title>Profits for Life &#x26; Health Insurance Companies Plummet in First Quarter 2008</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-07-17T14:03:38-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/20448236a774c50d33a91ee555bce17b-23.html#unique-entry-id-23</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/20448236a774c50d33a91ee555bce17b-23.html#unique-entry-id-23</guid><content:encoded><![CDATA[Profits of the nation's life and health insurers plummeted $9.9 billion to a mere $542.6 million in the 


first quarter of 2008, a 95% decline from $10.4 billion in the same period a year ago. 


Profits -- made up of operating income from the business of writing insurance and realized 


gains/losses on investments -- were down for the first time since first-quarter 2005 and were the 


worst first-quarter industry results in the 15 years that TheStreet.com Ratings (and its predecessor 


Weiss Ratings) has followed the industry. 


The industry suffered a decline in its operating results as well as a massive realized loss on 


investments.   Operating income for the industry declined 28% to $11.9 billion in the first quarter of 


2008, down $4.6 billion from $16.5 billion in 2007, while investment results turned negative in a big 


way. 


Realized losses on investments totaled $5.3 billion, down from a positive $1.1 billion gain during the 


first quarter of 2007, primarily due to a writedown of the bond portfolio. 


Information provided by www.thestreet.com


<script src="http://digg.com/tools/diggthis.js" type="text/javascript"></script>]]></content:encoded></item><item><title>Beware of Strangers Bearing Life Insurance</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-07-17T13:54:34-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/ba63d4355905069b94424c42f183e259-22.html#unique-entry-id-22</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/ba63d4355905069b94424c42f183e259-22.html#unique-entry-id-22</guid><content:encoded><![CDATA[In a Reuters Story today, life certainly proved at least as strange as Fiction.    Two women in their 70s, dubbed the "Black Widows" of Los Angeles, were sentenced to life in prison without parole on Tuesday for befriending two homeless men and murdering them in hit-and-run-crashes in order to collect $2.8 million in life insurance.


Prosecutors said the women had befriended two homeless men at an Eastern European church, helped them find somewhere to live, took out life insurance policies on them, and then arranged to have them killed in hit-and-run car accidents in dark alleys.


The men, Paul Vados, 73, and Kenneth McDavid, 50, were run over by cars in different Los Angeles area alleys in 1999 and 2005 respectively.


Prosecutors said greed was the motive.   The two women collectively received $2.8 million from life insurance and accidental death policies they had taken out on the two men by transferring their signatures onto rubber stamps to use on the forms.


Golay claimed to insurance companies that she was the fiancee of both victims, while Rutterschmidt claimed to be a cousin.


The women were arrested in May 2006 on suspicion of fraudulently collecting insurance payments.   Investigators said the women might be responsible for more deaths, saying six other life insurance policies were not paid out because of suspicious circumstances.


(Reporting by Jill Serjeant; Editing by Eric Walsh) &copy; Thomson Reuters 2008 All rights reserved]]></content:encoded></item><item><title>U.S. House of Reps Approvals Positives Changes for Insurance Information </title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-07-14T08:51:03-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/9407723840309e5c6e48a86fedd1b848-21.html#unique-entry-id-21</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/9407723840309e5c6e48a86fedd1b848-21.html#unique-entry-id-21</guid><content:encoded><![CDATA[The U.S.   House of Representatives Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises has approved as amended unanimously and fast-tracked to go to the floor of the House of Representatives for consideration without action by the Financial Services Committee the following bill: 


H.R. 5840: the Insurance Information Act of 2008 would create a federal office of insurance information and establish, for the first-time, a repository for the collection and dissemination of information at the federal level within the U.S.   Department of the Treasury.   Additionally, the bill has clearly defined and strictly limited preemptive powers applicable only if state laws conflict with United States international trade agreements.


Work is still underway in Washington for a federal insurance regulator to replace or supplement the current state regulatory system.    This would be a boon to all involved in insurance (and may actually reduce expenses).    This would allow products to be filed once for all states (rather than each state separately) and a license valid for all states rather than state by state.]]></content:encoded></item><item><title>A.M. Best Company Recognizes Insurers With Top Ratings for 75+ Years</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-07-09T09:04:15-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/b220ce12a454b535c9dad94f89cd4430-20.html#unique-entry-id-20</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/b220ce12a454b535c9dad94f89cd4430-20.html#unique-entry-id-20</guid><content:encoded><![CDATA[In the latest issue of Best&rsquo;s Review (July 2008), A.M Best listed 14 Life & Health Insurance Companies that have maintained a Best&rsquo;s Financial Strength Rating of A or higher for at least 75 years.    The rating methodology has changed over the years.    Some of the companies have changed names, merged, etc. over the years.


The companies are: Aviva Life & Annuity, Beneficial Life, Country Life, Genworth Life and Annuity, John Hancock, Metropolitan Life, Nationwide Life, New York Life, Northwestern Life, Penn Mutual Life, Principal Life, Prudential Life, Standard Ins.  , Union Security and Western & Southern Life.


A.M.   Best Company has been issuing financial strength ratings (opinions on the ability of individual insurance companies to pay claims on the coverage they have underwritten.    More information can be found on their website at: www.ambest.com]]></content:encoded></item><item><title>Lawsuit Library</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-07-03T10:21:50-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/f860fbc6a62d6743830d4c626005b108-19.html#unique-entry-id-19</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/f860fbc6a62d6743830d4c626005b108-19.html#unique-entry-id-19</guid><content:encoded><![CDATA[A useful resource in choosing a life insurance company is the Lawsuit Library found at http://www.insure.com/articles/lawsuitlibrary/index.html .    This covers recent insurance lawsuits, court orders, fines, penalties, and insolvencies.]]></content:encoded></item><item><title>Fitch Ratings Updates Quantitative Ratings on U.S. Life Insurance Companies</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-07-02T14:33:12-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/9c9f7f697e57e78217edc857668ee03a-18.html#unique-entry-id-18</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/9c9f7f697e57e78217edc857668ee03a-18.html#unique-entry-id-18</guid><content:encoded><![CDATA[Fitch Ratings service has announced that they have updated the Quantitative Insurer Financial Strength (Q-IFS) ratings assigned to life insurance companies in the U.S., resulting in 203 rating affirmations, 24 rating upgrades, and 15 rating downgrades.   Fitch has also assigned initial Q-IFS ratings to an additional 12 U.S. life insurance companies.    The update is based on statutory financial information through yearend 2007, and reflected generally modest improvement in balance sheet fundamentals and relatively stable earnings performance despite increased investment losses.


'The deterioration in the credit markets in the second half of 2007 created challenges for U.S.   Life Insurers.   Nevertheless, the industry continues to generate consistent earnings, driving capital growth and supporting ratings levels.   Life insurer ratings have been relatively stable in the past few years as seen in the high percentage of rating affirmations, and rating upgrades that outpaced rating downgrades this year,' said Douglas Meyer, Managing Director & U.S.   Life Insurance Sector Head for Fitch Ratings.


For further information on Fitch's Q-IFS ratings, Fitch has published a special report titled 'Quantitative Insurer Financial Strength Ratings Methodology: U.S.   Life Insurers', which is available on the Fitch web site www.fitchratings.com and can be found in the Criteria Reports section on the Sector marked 'Insurance' under 'Financial Institutions'.   The report provides an overview of the Q-IFS rating program and the rating model, a discussion of the limitations regarding the use of the Q-IFS ratings, and a review of the rating scale and definitions.   SOURCE: Fitch Ratings  NEW YORK, Jun 27, 2008 (BUSINESS WIRE).


For oth]]></content:encoded></item><item><title>Deloitte Releases 2007 Life Insurance Operations Benchmarking Study (LIONS)</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-06-19T09:39:53-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/af05decb6c75cf57f4eb2f390372a3e1-17.html#unique-entry-id-17</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/af05decb6c75cf57f4eb2f390372a3e1-17.html#unique-entry-id-17</guid><content:encoded><![CDATA[Since 1996, Deloitte specialists have published the Life Insurance Operations Benchmarking Study (LIONS), which provides comparative analysis widely used by top insurance executives to benchmark expenses for operations and information technology.    This year highlights from the latest LIONS have been released in the form of an executive summary report.   Key findings include:


Insurers have not fully leveraged eService and call center capabilities.   Lower-cost companies have unit costs that are 33 percent lower than the average; they are attaining these benefits through the use of Web and interactive voice response (IVR) technologies.  Business process outsourcing is still gaining traction with insurers.


Lowest-cost insurers have unit costs that are 20 percent lower than the average.   Low-cost companies realize savings of about $30 million per $1 billion of total annual premium.


View the executive summary report at: http://www.deloitte.com/dtt/cda/doc/content/us_fsi_LifeInBenchmarking_May2008.pdf]]></content:encoded></item><item><title>Ohio Passes Stranger-Originated Bill Into Law</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-06-14T08:28:20-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/e77cda1d82e6b0c0eb0dffb5d571f8b0-16.html#unique-entry-id-16</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/e77cda1d82e6b0c0eb0dffb5d571f8b0-16.html#unique-entry-id-16</guid><content:encoded><![CDATA[Ohio became this week, one of the first states to put into action a law in an effort to root out stranger-originated life insurance.    The new amendments to Ohio insurance law &ldquo;recognize a shared responsibility of the life settlement industry, life insurance companies and the [insurance] department to protect consumers against STOLI transactions,&rdquo; says Mary Jo Hudson, director of the Ohio Department of Insurance.


The bill, H.B. 404, officially amends the state Viatical Settlement Act.   Under the new law, the department will have more authority over life settlements, and life settlement brokers and providers are required to give insurers more information before engaging in a life settlement.


Life insurers will have to ask specific questions aimed at uncovering STOLI schemes and report suspected schemes to the department.


The Ohio law also limits the ability of consumers who use certain types of premium financing arrangements to sell life insurance policies within 5 years of buying the policies.


A policyholder can sell a life policy during the 5-year restricted period if the policyholder has experienced a life-changing event such as illness, unemployment, or the death of an intended beneficiary.
]]></content:encoded></item><item><title>Final Data for 2005 Life Expectancy (from CDC)</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-06-10T11:20:20-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/c8dca47fb68ac7a8ebdc8fe1c1c292d3-15.html#unique-entry-id-15</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/c8dca47fb68ac7a8ebdc8fe1c1c292d3-15.html#unique-entry-id-15</guid><content:encoded><![CDATA[The CDC (Center for Disease Control) has released their data report for life expectancy for those born in 2005.    The average life expectancy at birth was 77.8 years, the same as in 2004.    Life expectancy for females remains longer at 80.4 years as compared to 75.2 years for males.    Oh well.  ]]></content:encoded></item><item><title>40&#x25; of Whole Life &#x26; Universal Life Policies Lapse by 6th Year</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-06-10T11:14:38-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/a562196276d983a0f9e7089e33ef82f4-14.html#unique-entry-id-14</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/a562196276d983a0f9e7089e33ef82f4-14.html#unique-entry-id-14</guid><content:encoded><![CDATA[Recent studies show that 15.9% of all whole life policies remain in force for just one year (first year lapse ratio).    In years three through five, another 5.7% of policyowners will lapse their coverage.    Universal Life which usually has lower premiums, loses 8.1% of policyowners in the first year and another 9.5% in the second year.    After 6 years about 40% of all whole & universal life insurance policies have lapsed.    The worst part is that in these early years, the surrender charge is 100% or close to it - so no cash value.    (Figures courtesy of Moody&rsquo;s Review- Errold Moody).]]></content:encoded></item><item><title>NAIC Expands Consumer Education Program</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-06-06T08:45:06-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/94be6e48b14702254e0992d10c8ec7b7-13.html#unique-entry-id-13</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/94be6e48b14702254e0992d10c8ec7b7-13.html#unique-entry-id-13</guid><content:encoded><![CDATA[The National Association of Insurance Commissioners (NAIC) today expanded its award-winning Insure U consumer education program with new topic areas aimed at consumers in four life situations: domestic partners; single parents; grandparents raising grandchildren; and members of the military.


"Expanding our Insure U program directly reflects the varied life situations and needs that characterize our diverse nation," said NAIC President and Kansas Insurance Commissioner Sandy Praeger.   "Insure U is an important resource to help consumers better understand insurance issues specific to their experiences.   I'm proud that we have four new ways for Americans to get smart about insurance."


The Insure U curriculum, available at www.insureUonline.org, provides insurance tips and special considerations on four basic types of insurance: auto, home, health and life.   The expanded topics build on the four life situations already available on the site: young singles, young families, established families and seniors.


NAIC (www.naic.org); San Francisco, Ca; June 2, 2008]]></content:encoded></item><item><title>New Guideline to Protect Travelers In Applying for Life Insurance</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-06-06T08:41:39-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/8f68f9e576bb3b683ffb41e344627718-12.html#unique-entry-id-12</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/8f68f9e576bb3b683ffb41e344627718-12.html#unique-entry-id-12</guid><content:encoded><![CDATA[The National Association of Insurance Commissioners (NAIC) has adopted new guidelines to protect  insurance consumers from discriminatory underwriting practices in the sale of life insurance.   &ldquo;Americans should not be denied life insurance simply because of where they might travel,&rdquo; said NAIC President and Kansas Insurance Commissioner Sandy Praeger.   &ldquo;These new guidelines ensure that insurance consumers are treated in a fair and non-discriminatory manner.&rdquo;


The changes to the NAIC Unfair Trade Practices Model Act limit an insurer&rsquo;s ability to refuse life insurance because of lawful past travel or, under specific circumstances, lawful future travel.   Specifically, future travel cannot be the basis for a coverage decision unless travel to a specific destination at a specific time is found, based on sound actuarial principals and actual or anticipated experience, to create a risk of loss greater than that for individuals who do now travel to that place at that time.


Travel to a destination where the U.S.   Centers for Disease Control and Prevention has issued an alert or warning or where there is an ongoing armed conflict involving a foreign army is deemed a valid basis for refusing to offer or limiting coverage.   NAIC; San Francisco, CA; June 2, 2008]]></content:encoded></item><item><title>Article on Life Insurance Planning Featured on Nolo.com</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-06-05T10:30:42-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/99db6acc63285eee6adba5ba3a2d6a34-11.html#unique-entry-id-11</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/99db6acc63285eee6adba5ba3a2d6a34-11.html#unique-entry-id-11</guid><content:encoded><![CDATA[Article on &ldquo;How Much Life Insurance Do You Need&rdquo; written and added to www.nolo.com (opens new window).   Features a slightly different perspective than the section on this web site on Life Insurance Planning Methods in the Resources section.   This article is not credited.]]></content:encoded></item><item><title>New York Department of Insurance Warns Insurance Reps to Not Use Misleading Titles</title><dc:creator>tony@tonysteuer.com</dc:creator><category>None</category><dc:date>2008-05-30T10:25:04-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/752354548656bb5d0ec74766cfd902ec-10.html#unique-entry-id-10</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/752354548656bb5d0ec74766cfd902ec-10.html#unique-entry-id-10</guid><content:encoded><![CDATA[In a move that is being followed by other State Insurance Departments and many consumer groups: 


Insurance brokers or agents in New York State who use titles that mislead seniors will face penalties, Insurance Superintendent Eric Dinallo said today.   Dinallo also warned seniors about abusive sales and marketing practices aimed at them by some insurance agents and brokers.


Possibly misleading titles such as &ldquo;retirement planner,&rdquo; &ldquo;senior advisor,&rdquo; &ldquo;certified,&rdquo; &ldquo;senior consultant&rdquo; and others are increasingly used in marketing life insurance and annuity products to seniors, often at &ldquo;free lunch&rdquo; investment seminars, where seniors are sometimes exposed to high pressure sales tactics, Dinallo noted.


 &ldquo;Seniors who have worked hard all their lives to create a nest egg should be able to trust the people who handle their money,&rdquo; Dinallo said.   &ldquo;Seniors should not be misled into thinking a title like &lsquo;retirement planner&rsquo; represents special expertise when in fact no such expertise exists.   Agents and brokers who have worked hard to earn titles like Chartered Financial Consultant or Certified Life Underwriter that legitimately represent special education and expertise get shortchanged as well.   This is misleading and cannot be tolerated.&rdquo;


The New York State Insurance Department, which recently created a Senior Protection Unit focused on protecting seniors, is taking a number of steps to protect seniors against deleterious sales tactics.


See related news release: Seniors Beware - Question Credentials Of "Senior Specialists" Beware Of "Free Lunch" Seminars.   New York State Insurance Department Press Release - 5/21/08]]></content:encoded></item><item><title>A.M. Best New Research Shows That Some Life Insurance Companies May Be More Subject To Impairment in 2008</title><dc:creator>tony@tonysteuer.com</dc:creator><dc:subject>Blog</dc:subject><dc:date>2008-05-28T08:53:28-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/4163879922cd14f5eb27adc45fc1bb12-9.html#unique-entry-id-9</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/4163879922cd14f5eb27adc45fc1bb12-9.html#unique-entry-id-9</guid><content:encoded><![CDATA[Thinly capitalized life/health companies, or those whose portfolios are heavily weighted to structured investment products or commercial mortgage-related investments, are likely to be more prone to impairment this year, according to new A.M. best research, &ldquo;U.S.   Life/Health - 1976-2007 Impairment Review.&rdquo;    A deteriorating economy and turbulent financial markets are expected to steer the 2008 life/health impairment rate higher than the 2007 rate of 0.39%, which included six financial impairments.    The leading causes of impairment -- inadequate pricing, affiliate problems, rapid growth and investment problems&mdash;accounted for 75% of impairments, according to the special report, featured in BestWeek U.S.  /Canada.   A.M.   Best, Oldwick, N.J.  ; May 23, 2008 &mdash; visit www.ambest.com for more information.]]></content:encoded></item><item><title>U.S. Life Insurance Continues to Grow - Admitted Assets Pass &#x24;5 Trillion</title><dc:creator>tony@tonysteuer.com</dc:creator><dc:subject>Blog</dc:subject><dc:date>2008-05-19T10:19:20-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/9ecd428d1650119a74cc9476a501492d-8.html#unique-entry-id-8</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/9ecd428d1650119a74cc9476a501492d-8.html#unique-entry-id-8</guid><content:encoded><![CDATA[According to A.M.   Best's 2008 statistical study (U.S.   Life - 2007 Financial Results) - total admitted assets for the U.S.   Life Insurance Industry reached $5 trillion at the end of 2007 increasing by 5.7%.]]></content:encoded></item><item><title>Latest Study Shows Americans Feel Their Death (or Death of A Spouse) A Greater Threat to Financial Security Than Recession</title><dc:creator>tony@tonysteuer.com</dc:creator><dc:subject>Blog</dc:subject><dc:date>2008-05-15T07:40:52-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/6714cb2c23a9a2d6cdc35ebd6f951e19-7.html#unique-entry-id-7</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/6714cb2c23a9a2d6cdc35ebd6f951e19-7.html#unique-entry-id-7</guid><content:encoded><![CDATA[According to a recent study by ING: Americans in every demographic group are more concerned about their death (or the death of a spouse) is a greater threat to their financial security than a recession or the possibility of Social Security going broke and view this as a much greater threat to their family&rsquo;s financial situation, according to a survey from ING. 


The survey found that as usual, most people do not do as they say - nearly a quarter of the 86% of people who thought they should have life insurance, do not have it.


The thought of discussing Life Insurance continues to be less popular than the thought of going bungee jumping or speaking in public.    Though it is now more appealing than sitting through a job performance review, filling out a college application, or dealing with a medical insurer about a planned surgery.


To view the study visit www.ing.com
]]></content:encoded></item><item><title>Another Positive Review for Questions &#x26; Answers on Life Insurance</title><dc:creator>tony@tonysteuer.com</dc:creator><dc:subject>Blog</dc:subject><dc:date>2008-05-09T15:17:16-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/287de6c30472799fe2f58936bf3d1d43-5.html#unique-entry-id-5</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/287de6c30472799fe2f58936bf3d1d43-5.html#unique-entry-id-5</guid><content:encoded><![CDATA[New Review posted on Amazon - 5 stars by Midwest Book Review:


How to make sure your policy doesn't change behind your back, May 7, 2008


Modern funerals can be quite expensive, so life insurance can be the easiest answer.   But how can you make sure that your life insurance will do what you pay it to do?   "Questions and Answers on Life Insurance: The Life Insurance Toolbook" is a guide to help those who are concerned about life insurance policies make the right decisions by analyzing the fine print of it all - the different types of policies, evaluating the companies that hold the policy, trusted agencies, underwriting, and how to make sure your policy doesn't change behind your back.   "Questions and Answers on Life Insurance: The Life Insurance Toolbook" is highly recommended to community library collections on personal finance and for anyone who is in the market for a life insurance policy. ]]></content:encoded></item><item><title>Life Insurance Policy Lapses Decline</title><dc:creator>tony@tonysteuer.com</dc:creator><dc:subject>Blog</dc:subject><dc:date>2008-04-27T08:37:28-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/9d5ce2221aa8032b5424776ccea88125-4.html#unique-entry-id-4</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/9d5ce2221aa8032b5424776ccea88125-4.html#unique-entry-id-4</guid><content:encoded><![CDATA[Early policy year lapses have dropped to a 10-year low for all individual life insurance products combined.   This is driven in large part by the lower early year lapse rates on level premium term plans and the fact that, over time, they continue to represent a larger portion of the total in-force business, according to a study by LIMRA and the Society of Actuaries (SOA) 


The lapse rate for whole life plans for all product types and policy years combined was 3.5% on a policy basis and 4.4% on a face amount basis in 2003 and 2004, down from 3.9% and 5.8% respectively for the period 2001 to 2002.   Although first year lapse rates have increased slightly in recent years, most durations lapse rates are at levels similar to or lower than the past.   Total lapse rates for term insurance for all products and all policy years combined was 7% on a policy basis and 6.2% on a face amount basis, a decrease of 3.2 percentage points on a policy basis and 4.1 percentage points on a face amount basis from the 2001 to 2002 report.   At the same time, term lapse rates have increased for policies in years 11 and later, reflecting the effect of shock lapse rates for level premium term.   For more information, visit www.limra.com.   - Reported on calbroker.com]]></content:encoded></item><item><title>S&#x26;P: Report Card Looks At Trends Affecting North American Insurance Holding Companies </title><dc:creator>tony@tonysteuer.com</dc:creator><dc:subject>Blog</dc:subject><dc:date>2008-04-25T11:26:47-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/5e59f453ef7e31b1069e53ca42199509-3.html#unique-entry-id-3</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/5e59f453ef7e31b1069e53ca42199509-3.html#unique-entry-id-3</guid><content:encoded><![CDATA[Standard & Poor's Rating Services has a released a report that despite the stiff headwinds that the U.S. life insurance sector will face throughout 2008, Standard & Poor's Ratings Services is maintaining its stable outlook on the U.S. life insurance sector, according to an industry report card it published today.   The article, which is titled "North American Insurance Sectors Retain Stable Outlooks, But Most Companies Are Feeling Market Pressures," says that this means that over the next six to 12 months, positive and negative rating actions should be about equal.   Although we do not envision significant rating activity, the tendency is toward a moderately negative trend.    The reports are available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com.   If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to research_request@standardandpoors.com.   Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search.   Market News Publishing (The Mc-Graw-Hill Companies); New York, NY; April 21, 2008--]]></content:encoded></item><item><title>IRS Releases 2008 &#x22;Dirty Dozen&#x22; Tax Scams</title><dc:creator>tony@tonysteuer.com</dc:creator><dc:subject>Blog</dc:subject><dc:date>2008-04-23T13:57:21-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/fab8a910fdbb817dcdde615d2b484b13-2.html#unique-entry-id-2</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/fab8a910fdbb817dcdde615d2b484b13-2.html#unique-entry-id-2</guid><content:encoded><![CDATA[The Internal Revenue Service recently issued its 2008 list of the 12 most egregious tax schemes and scams, highlighted by Internet phishing scams and several frivolous tax arguments.   Topping this year&rsquo;s list of scams is phishing, which encompasses numerous Internet-based ploys to steal financial information from taxpayers.   New to the &ldquo;Dirty Dozen&rdquo; this year is a scheme, which IRS auditors discovered, that relates to unreasonable and/or excessive fuel tax credit claims.    &ldquo;Taxpayers should be wary of scams and promises to avoid paying taxes that seem too good to be true,&rdquo; Acting IRS Commissioner Linda Stiff said.   &ldquo;There is no secret formula that can eliminate a person&rsquo;s tax obligations.   People should be wary of anyone peddling any of these scams.&rdquo;   Tax schemes can lead to problems for both scam artists and taxpayers.     Tax return preparers and promoters also risk significant penalties, interest and possible criminal prosecution.   Washington, D.C.   Internal Revenue Service, U.S.   Treasury Department - View List at: IR-2008-41 (this will take you the IRS website).]]></content:encoded></item><item><title>Fitch Ratings: U.S. Life Insurers Face Weakness in Commercial Mortgage Market</title><dc:creator>tony@tonysteuer.com</dc:creator><dc:subject>Blog</dc:subject><dc:date>2008-04-21T14:21:31-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/978a562ec4a554f6db1a044371743c63-1.html#unique-entry-id-1</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/978a562ec4a554f6db1a044371743c63-1.html#unique-entry-id-1</guid><content:encoded><![CDATA[Fitch Ratings has released a special report 'U.S.   Life Insurers: Large Commercial Mortgage Exposure Under Control' which summarizes Fitch's views on the commercial mortgage market, including an 2008 outlook and a comparison to the residential mortgage market, examines the impact on U.S. life insurers, and provides detailed information on the industry's investment exposure to directly placed mortgage loans and CMBS.   This report states that Fitch does not expect weakness in the commercial mortgage market to negatively impact ratings for U.S. life insurers in 2008.   Nevertheless, Fitch expects an increase in realized losses associated with commercial mortgage-related investments due to increased loan default rates and spread widening will negatively impact industry earnings in 2008.


The special report, 'U.S.   Life Insurers: Large Commercial Mortgage Exposure Under Control' is now available at www.fitchratings.com under the following headers:  Financial Institutions then Insurance then Special Reports.    (Business Wire, April 15, 2008)]]></content:encoded></item><item><title>Education and Life Expectancy</title><dc:creator>tony@tonysteuer.com</dc:creator><dc:subject>Blog</dc:subject><dc:date>2008-04-07T13:56:21-07:00</dc:date><link>http://www.tonysteuer.com/Blog/files/b5fcc41e89afd01968f4ef4f9dcb0531-0.html#unique-entry-id-0</link><guid isPermaLink="true">http://www.tonysteuer.com/Blog/files/b5fcc41e89afd01968f4ef4f9dcb0531-0.html#unique-entry-id-0</guid><content:encoded><![CDATA[From 1990 to 2000, life expectancy for people in the U.S. with at least some college education rose 1.6 years, while remaining static for less-educated people.   In 2000, those in the less-educated group could be expected at age 25 to live to about age 75, while those in the more-educated group could be expected to reach 82.   Cigarette smoking may be the cause since more educated people are less likely to smoke.
]]></content:encoded></item></channel>
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