Auto insurance Guides: October 2009

Obama says he’ll fix AIG payout scandal

US President Obama has been trying to defuse public anger over bonus payments by the bailed out insurance giant AIG.

Billions of public funds have been poured into the ailing insurance company, but many Americans were outraged when it paid out around 120 million euros in bonuses to top officials.

Obama has cultivated an image as a crusader for change and there was this pledge from the US president:

He said: “ I’ll take responsibilty. I’m the President.”

Washington has been engulfed in a poltical feeding frenzy about who knew what and when over the payments of bonuses by corporations like AIG, bailed out with billions of public cash.

The Republicans have been demanding to know why the US Treasury did not lay down conditions about bonuses before handing over rescue money.

The (Australian) AOG Insurance Agency scandal

A Short History

Nov. 5, 1993

On 5 November 1993, Andrew Evans and the rest of the AOG National Executive acted to terminate their contract with insurance consultant and AOG Pastor, Greg Sowerby, and also sacked two AOG Insurance Agency employees—Meredith Sowerby and Henry Sheppard.

Those actions were within their rights and, had Andrew Evans and his mates simply paid out the monies owing to the people in question, they could have all gotten on with their lives.

But instead, Andrew Evans and the rest of the AOG National Executive chose to withhold wages and commissions owing to those three people. They also seized control of the Independent Churches Insurance program belonging to Greg Sowerby.

Intimidation

When Greg Sowerby attempted to go into the Church Insurance business for himself—in competition with them—the AOG National Executive began a process designed, on the one hand, to intimidate him and, on the other, to frighten away his potential customers.

False
Allegations
of “Fraud”

First they paid a solicitor to threaten him with unspecified legal action for speaking to “their” customers. When that didn’t work, they paid the same solicitor to lodge a complaint of “fraud” against Pastor Sowerby with the South Australian Police.

Greg and Meredith Sowerby have had their home invaded by the Police, had a filing cabinet of documents relating to Greg’s Independent Churches Insurance program impounded, were interrogated for many hours on several separate occasions—both at Police Headquarters and at their home. They have been embarrassed in front of their neighbours; slandered in front of their customers; and their children have been frightened and humiliated.

AOG National Executive lodge “Letter of complaint” against investigating police officer

The AOG National Executive made an accusation against Pastor Greg Sowerby to the South Australian police of “embezzlement” and “falsification of accounts” on 13 December 1993.

That complaint went first to the Fraud Task Squad, then, on 15 March 1994, because there was no evidence of any fraud, it was passed to Detective Senior Constable Brenton Rowney of Adelaide Criminal Investigation Branch (CIB). At 6:05 pm on the same day he attended the home of Greg and Meredith Sowerby and seized the Independent Churches Insurance program files and began the difficult task of trying to sort the truth from the various allegations.

But this was not good enough for Andrew Evans and the rest of the AOG National Executive, and so they paid Lewis Hutchinson, Commercial Lawyers, to lodge an official “Letter of Complaint… concerning the investigation by Det B.J. Rowney No 2781/4…”

We do not know the date on which the complaint was lodged, but the detective’s written defence is dated 18 May 1994. Addressed to the “Officer in Charge, Adelaide C.I.B.”, it occupies thirteen pages.

According to Detective Chief Inspector Peter Graham (formerly of Adelaide CIB), there were two complaints made against the officer—first that he was “procrastinating”, and second, that he had adopted “a conciliatory rather than an investigative role” in handling the case.

The question to be answered is, Why did the Executive place such pressure (with its implied threat to his career) on the police officer?

Were they hoping to impress on the officer the true nature of Christian forgiveness and thus win the man to Christ? Or were they trying to pressure him into hastily laying criminal charges against Pastor Greg Sowerby, thereby vindicating their slanderous actions?

AOG’s accusations demolished

The report by Detective Senior Constable Brenton J. Rowney is far too long to reproduce in full. But it contains a number of statements that completely demolish the AOG’s accusations against Greg Sowerby.

For example:

Contrary to the statement by the Executive’s solicitor on 22 December 1993, that “you were not permitted to sell insurance apart from personal contacts of your own”, the detective states:
“There is no directive to prevent Sowerby from selling his own I.M.S. insurance Non A.O.G. policies as opposed to selling A.O.G. policies. Sowerby was allowed to run his own business as a side issue by Nation(al) Executive of A.O.G.”

The Executive have made much of some comments by individuals employed at ANSVAR. But the detective made the following comment:
“There is correspondence from Ansvar that stated they believed the profits from the business between Sowerby and Ansvar was to benefit A.O.G. Churches and not Sowerby. There is no available documentation to support this allegation.”

And on the subject of who the Independent Churches Insurance program belonged to:
“The original application that is made to Ansvar to open the agency is made in the name of G.M. & M.A. Sowerby (Insurance Management Services). There is no other documentation other than the original application.”

And again:
“There is no documentary evidence to support any claims made by Ansvar, in fact the only documentary evidence supports an agreement between Ansvar and G.M. and M.A. Sowerby (Insurance Management Services).”

No charges
to answer…

After an exhaustive investigation that lasted almost a year—and which included numerous direct requests to various members of the AOG National Executive (including Andrew Evans) to provide evidence to back up their accusations—the South Australian Police completed a report which showed that Pastor Greg Sowerby had no questions to answer. The various accusations made against him by a group of professional religious leaders had no basis in fact.

The investigating Police Officer made a comment in the report that: “I have doubts as to the quality of any witness within the AOG Insurance Fund”.

The files which had been seized by the Police were returned to their rightful owner—Greg Sowerby.

[ Read the Police Report for yourself. ]

Andrew Evans refuses to speak to the detective Chief Inspector

On 13 December 1994, Greg and Meredith Sowerby and myself met with AOG National Executive members Brian Houston and Steve Penny at the Adelaide Airport.

The meeting was marred by several attempts at verbal intimidation by the two National Executive members. But the worst aspect of the meeting was their total denial of the AOG National Executive’s actions in paying a solicitor to lodge an official complaint against Detective Brenton Rowney.

(Apparently the Executive resented the fact that the police had spent some of their time clearing up cases involving rape, murder and robbery, rather than focusing exclusively on their trumped-up charges—charges which were unsupported by any evidence.)

On the next day, Greg spoke by phone to Detective Chief Inspector Peter Graham and repeated the denials of the Executive members. The Inspector offered to speak to any National Executive member who would ring him. He would read out the exact details of the charges and who laid them.

Greg informed the Executive of this opportunity for them all to obtain the facts, only to be greeted by a deafening silence. The National Executive members, Andrew Evans most noticeably, already knew all they wanted to about this cowardly attempt to hurt Pastor Greg Sowerby by casually damaging the career of an innocent policeman.

“Reconcilation”

In early November 1996, after three full years of intimidation, humiliation and torment, Pastor Greg Sowerby finally bowed to the financial pressures being exerted on his surviving business and signed a piece of paper drafted by the AOG National executive.

Since that time, Andrew Evans has been trumpeting that he has achieved “reconcilation” with his victims.

But ask yourself this question:
If, after many years of faithful service to your church, you were sacked, had your business stolen, were falsely accused to the Police, suffered an intense twelve month Police investigation, were defamed nationally in front of your colleagues, and then were suddenly “reconciled”, what would you expect to see happen?

—Would you expect to be offered your old job back?
—Would you expect to have your business returned to you?
—Would you expect to receive a public apology?
—Would you expect to have the Police Report showing that there were no charges to answer published by your now reconciled enemies?
—Would you expect to receive compensation for your losses?
—Would you expect to see the many AOG churches who deserted your Fuelcard business (only to have those churches pay a higher price for fuel) return?

You would probably expect all of those and possibly more.

What has Greg Sowerby received from the AOG National Executive since being “reconciled” with them?

Not only has Greg received none of those things, but the AOG National Executive is spending many tens of thousands of dollars to sue him in the Federal Court.

They have been able to use economic duress to force Greg into signing a worthless piece of paper with the word “Reconcilation” on it, for their own propaganda purposes. But there is no more reconciliation today than there was on 22 June 1996, when they commenced that legal action against him.

The advantage of arranging purely cosmetic “reconcilations” is that they can keep gullible AOG pastors quiet, without paying any of their debts

The Insurance Scandal: Just How Rotten?

The insurance industry is the latest financial sector to have its darkest secrets exposed to the light.

First came investment banking; then mutual funds; now the insurance industry is mired in scandal, the latest target of Eliot Spitzer, New York's formidable attorney general. On October 14th he filed civil charges against Marsh & McLennan, the world's biggest insurance broker, and announced settlements of criminal charges with two employees at AIG, the world's biggest insurer, and one at ACE, a big property-casualty insurer. The charges are part of an ongoing investigation into industry practices that suggest insurers and brokers have acted collectively (and secretly) to betray customers. An added twist is that the three main companies so far involved are led by members of the Greenberg family: Hank Greenberg is the legendary boss of AIG; his eldest son Jeffrey runs Marsh; and his younger son Evan is in charge at ACE. A business often thought to lack personality and drama is now suffering from an abundance of both.Mr. Spitzer's civil complaint against Marsh, filed in New York state's Supreme Court, alleges much misbehavior, including fake bids, collusion, improper steering of business, payments by insurers to avoid solicitation of competing quotes, and outright threats against those resisting participation in the fraudulent schemes. Marsh acted, in short, less like a broker with a fiduciary obligation to its clients than as the linchpin of a racket. Proof for the existing charges, Mr. Spitzer contends, is "rock solid". Given the strength of the evidence and the seriousness of the infractions, the main legal conundrum he faced was whether he should file criminal rather than civil charges.

His leniency will be of only marginal solace for the industry. Mr. Spitzer says his investigation into insurance continues to expand, with the only certainty being that he will bring more charges against more people and more companies. So far only two segments of the vast insurance industry have been implicated — the mid-sized sector and so-called excess liability insurance (i.e., the umbrella policies companies buy to top off their core coverage), both prime territory for brokers.

But that looks certain to change. Mr. Spitzer is said to like cases that champion the average person, and he is going after general insurers too. Subpoenas from his office demanding information were reported to have been received this week by Aetna and Cigna (health insurance), MetLife (life insurance), and UnumProvident (disability). Shortly after the complaint against Marsh was disclosed, Aon, the second-largest brokerage firm, put out a statement that only a lawyer could find reassuring: the actions described in the complaint would have violated its own policies and "to the best of our knowledge" were not present at Aon. Mr. Spitzer's office quickly indicated that Aon is being examined with particular interest.

And Mr. Spitzer is not the industry's only legal threat. On October 19th and 20th Connecticut's attorney general sent out dozens of subpoenas to insurers operating in the state in the health, auto and employee-benefit sectors. In May he began investigating claims of widespread price-rigging and kick-backs. California began its own investigation of insurers and insurance brokers this spring. John Garamendi, the state's insurance commissioner, says he will soon bring civil charges against a number of companies, as well as introducing new rules to improve disclosure. Meanwhile, a barrage of private lawsuits has been filed in New York's federal district court, most of them against Marsh for misleading investors.

The embarrassment felt by the insurance industry is acute. But how did the problems arise? Few people outside the industry understand either its structure or how it has evolved in recent years. Essentially brokers are classic middlemen. They stand between companies that want to buy insurance and the insurers that sell it, taking a commission for services rendered. But the broker's job is no longer one of simply finding the lowest price. These days brokers help companies to prepare complex evaluations of their insurance needs, often in many different countries. That task requires knowledge of the insurance providers in each local market, but also a good understanding of local risks. Companies' proposals and risk assessments are used by insurers in making their bids; indeed, without the help of a broker many large companies would be unable to solicit meaningful offers from the big insurers. In effect, brokers serve as corporate advisers and form an important distribution channel for insurers. Since the brokers work for both sides, they have, increasingly, been paid commissions by both.

In their defense, brokers say these arrangements are disclosed to clients, and that, with adequate disclosure, the system can work. Yet disclosure is often vague, at best, and the potential conflicts are glaring. Indeed, Mr. Spitzer has revealed what amounts to gross abuse of the pricing system. Insurers have been offering incentives to brokers in the form of so-called "contingent commissions" — money paid only if the broker places a certain amount of business with a particular insurer.

Review: Hartford Insurance

Company Information

Lines of Insurance:
Auto, Health, Life, Homeowners

States licensed to sell insurance in:
AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NH, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

Type of Insurance Company: Stock

Name of Parent Company:
Hartford Financial Services Group, Inc.

Insurance subsidiaries:
The Hartford Life Insurance Company
Hartford Fire Insurance Company
Hartford Life and Accident
Hartford Life Group Insurance Company
Hartford Life & Annuity

Company Overview:

Company History: Founded in 1810, The Hartford Financial Services Group, Inc. (NYSE: HIG) is one of the largest investment and insurance companies based in the United States, with offices in Japan, Brazil, Ireland, England, and the United States. With nearly 30,000 employees and $2.3 billion in income in 2005, The Hartford was ranked 78th on the 2006 Fortune 100 list.

The Hartford is a leading provider of investment products – annuities, mutual funds, college savings plans – as well as life insurance, group and employee benefits, automobile and homeowners' insurance, and business insurance.

The Hartford serves millions of customers worldwide – including individuals, institutions, and businesses – through independent agents and brokers, financial institutions, and online. About 11,000 independent agencies and more than 100,000 registered broker/dealers sell The Hartford's trusted products.

After nearly 200 years in business, The Hartford is known for its financial strength and stability, superior customer service, and continued operational excellence.

Principal Methods: The Hartford distributes insurance policies though appointed independent agents. The Hartford also sells direct through Affinity Programs such as the AARP Auto & Homeowners Insurance Programs from The Hartford.

Company Rating:
Best Insurance Reports: A+
Url of page rating was collected: http://ir.thehartford.com/ratings.cfm
Best Rating: A+ by A.M. Best.

Company Financial Status:
Ticker Symbol: HIG
Assets & Premiums: 2005 Assets = $285.5 Billion
2005 Revenues = $27.1 Billion
2005 Net Income = $2.3 Billion

Review: American Family Insurance

Company Information

Lines of Insurance:
Auto, Health, Life, Homeowners

States licensed to sell insurance in:
AZ, CO, ID, IL, IN, IA, KS, MN, MO, NE, NV, ND, OH, OR, SD, UT, WA

Type of Insurance Company: Mutual; 3rd largest in US

Insurance subsidiaries:
American Family Mutual Insurance Company
American Standard Insurance Company of Wisconsin
American Family Life Insurance Company
American Family Insurance Company (OhioAmerican Family Insurance Company of Ohio
American Standard Insurance Company of Ohio

Company Overview:

Company History: Founded in 1927, American Family now offers multiple insurance and financial product lines in 18 states. American Family is also the third-largest mutual property and casualty insurer and 16th-largest property and casualty insurance company group in the USA.

Principal Methods: Independent agents

Life Annuity Business: 18 States

Auto Business: 18 States; 10th largest in US

Homeowners Business: 18 States; 9th largest in US

Health Business: 18 States

Special Business: Consumer Loans offered

Company Rating:
Best Insurance Reports: A
Url of page rating was collected: http://www.ambest.com/ratings/
Best Rating: A.M. Best rating: A (excellent)

Company Financial Status:
Assets & Premiums: 2006 Assets: $15.5 billion
2006 Revenues: $6.8 billion

Review: Allstate Insurance

Company Information

Lines of Insurance:
Auto, Health, Life, Homeowners

States licensed to sell insurance in:
AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, VI, WA, WV, WI, WY

Type of Insurance Company: Stock

Name of Parent Company:
Allstate Insurance Group

Insurance subsidiaries:
Allstate Insurance Company
Allstate Indemnity Company
Allstate Life Insurance Company
Northbrooke Life and Annuity Company
Lincoln Benefit Life Company
Glenbrook Life and Annuity Company

Company Overview:

Company History: Allstate was originally founded in 1931 by Sears Roebuck and was part of that company until the 1980's when the shares of Allstate were distributed to Sears' Shareholders. Additional shares were later sold to the public. Allstate is listed on the NYSE with the symbol = ALL

Allstate is the second largest U.S. personal lines property and casualty insurer (ranked by earned premiums) and the 13th largest life insurer (based on life insurance in force). The Allstate Corporation was incorporated under the laws of the State of Delaware on November 5, 1992 to serve as the holding company for Allstate Insurance Company. Its business is conducted principally through Allstate Insurance Company, Allstate Life Insurance Company and their affiliates. Allstate is primarily engaged in the personal property and casualty insurance business and the life insurance, retirement and investment products business. It conducts its business primarily in the United States and Canada. The Allstate Corporation is the largest publicly held personal lines insurer in the United States. Allstate provides insurance products to more than 17 million households through a distribution network that utilizes a total of approximately 14,800 exclusive agencies and exclusive financial specialists in the United States and Canada. Allstate has a multiple channel alternative distribution system utilizing financial institutions (banks), independent agents, brokers, broker-dealers, the internet and telephone sales. The primary business of Allstate is private passenger automobile insurance and homeowner’s insurance in the U.S. It ranks second in both of these businesses with about 11% or 12% market share respectively (State Farm is first at 18% and 22%). In 2006, standard auto insurance policies accounted for about 61% of Allstate’s premium, non-standard auto for 5%, homeowner’s coverages for 24% and other lines for the remaining 10%. For Allstate’s auto and homeowner’s insurance business, the states which accounted for the most 2006 premium are California (10.9%), New York (10.1%), Texas (9.7%), Florida (9.4%) and Pennsylvania (5.2%).

Allstate Financial, previously known as Allstate Life, offers life insurance, annuities, savings and investment products as well as pension products through agents and alternative distribution channels.

Allstate’s range of products also includes:
Asset Protection products such as auto, homeowner’s, condominium, renters, scheduled personal property, business umbrella, commercial auto, commercial inland marine, small business owner, customizer and business package policy, landlord package, manufactured home, motor home, motorcycle, boat, personal umbrella, recreational vehicle, and motor club and federal flood coverage. Estate planning products such as business succession planning products, fixed survivorship life, and variable survivorship life are offered as are Family protection coverages such as, term life, universal life, variable universal life, long-term care and supplemental health insurance. Asset Management and Accumulation products include fixed annuities, variable annuities, equity indexed annuities, single premium immediate annuities, universal life, variable universal life, single premium life, structured settlement annuities, mutual funds, qualified plans, such as IRAs, 401(k)s, 403(b)s, Educational Plans (529 and Coverdell Education Savings Accounts) and institutional funding agreements. Short-term Asset Management Products offered by Allstate include checking accounts, savings accounts, certificates of deposit, money market accounts and mortgages.

Principal Methods: Allstate sells insurance through career agents and independent insurance agents, the Internet, direct call centers and through exploiting its service operations to sell more policies to existing customers. The company focuses on developing and maintaining "high value lifetime" customers. Allstate has good brand awareness with the advertising theme the "Good Hands" company.

Allstate provides insurance products to more than 17 million households through a distribution network that utilizes a total of approximately 14,800 exclusive agencies and exclusive financial specialists in the United States and Canada. Allstate has a multiple channel alternative distribution system utilizing financial institutions (banks), independent agents, brokers, broker-dealers, the internet and telephone sales. The primary business of Allstate is private passenger automobile insurance and homeowner’s insurance in the U.S. It ranks second in both of these businesses with about 11% or 12% market share respectively (State Farm is first at 18% and 22%). In 2006, standard auto insurance policies accounted for about 61% of Allstate’s premium, non-standard auto for 5%, homeowner’s coverages for 24% and other lines for the remaining 10%. For Allstate’s auto and homeowner’s insurance business, the states which accounted for the most 2006 premium are California (10.9%), New York (10.1%), Texas (9.7%), Florida (9.4%) and Pennsylvania (5.2%).

Life Annuity Business: Allstate is a top 25 writer of life insurance policies in the U.S.

Allstate Financial, previously known as Allstate Life, offers life insurance, annuities, savings and investment products as well as pension products through agents and alternative distribution channels.

Auto Business: Allstate is the 2nd largest automobile insurance comopany in the United States. Automobile insurance represents approximately 70% of Allstates business.

Homeowners Business: Allstate is the 2nd largest Homeowner Insurance company in the United States. Homeowner Insurance policies represent approximately 25% of Allstates business.

Health Business: Allstate is a top 25 writer of health insurance policies in the U.S.

Company Rating:
Best Insurance Reports: A+
Best Rating: Allstate has gotten mostly superior ratings (A+) from Best's for the past five years, (except for a B+ for its Allstate Floridian Insurance Company Subsidiary). The Group gets high marks on a number of levels. it is deemed generally conservative in its policies, with a good investment strategy, efficient in its operations and technology, good in underwriting and good in its selling efforts.

Company Financial Status:
Ticker Symbol: ALL
Assets & Premiums: Allstate Insurance Group is primarily a national insurance company specializing in automobile and homeowner insurance. It also sells life insurance, annuities and personal financial products. It has a subsidiary that provides banking services.

Premiums and income has been steadily increasing for five years, but more from price increases than from acquiring new customers. The company has over $47 billion dollars in assets. Capitalization has gone up and down because the parent company often takes dividends and because of underwriting and investment losses. Leverage is reasonable with approximately 22% of capital represented in debt and preferred stock as of December, 2004.
In 2005, Allstate took a major hit from gulf hurricanes ($5.8 billion in losses). However, while profit and return on equity were down other financial indicators seem to have remained fairly steady. This is the nature of property casualty insurance. It is a sign of a strong company that singificant losses do not cause extensive financial distress.

Review: Metropolitan Co.

Company Information

Lines of Insurance:
Auto, Long Term Care, Life, Disability, Homeowners

States licensed to sell insurance in:
AL, AZ, AR, CO, CT, DE, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, ND, OH, OK, OR, PA, PR, RI, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

Type of Insurance Company: Stock

Name of Parent Company:
Metropolitan Life Insurance Company

Insurance subsidiaries:
MetLife Securities, Inc.
New England Securities Corporation
MetLife
General American Life Insurance Company
General American Life
GenAmerica Financial

Company Overview:

Company History: Known for its long-standing relationship with Snoopy and the rest of the PEANUTS® characters, MetLife is ranked #1 in most group product lines, such as life, disability and long-term care insurance, automobile and homeowners, as well as structured settlements and institutional annuities. According to its 20065 annual review, MetLife generated record sales in multiple products.

MetLife is the largest life insurer in the United States and has more than 70 million customers around the world. MetLife has about $3.6 trillion of life insurance in force. Its total revenues for 2006 were $48.4 billion and year end 2006 assets were $527.7 billion. In addition to life insurance, it provides group non-medical coverages and other financial services to institutions and individuals in the U.S. and 35 countries. MetLife, which traces its beginnings to an 1863 company founded to insure civil war soldiers and sailors, operates through a large fleet of subsidiaries headed by a publicly traded holding company. MetLife has long enjoyed a strong position among urban consumers and major large corporate group customers. The current holding company organization was established as part of a 2000 demutualization that was subsequently augmented by some significant acquisitions, recently Travelers Insurance Company in 2005.

MetLife operates in five segments: Institutional (46% of total premiums in 2005), Individual (18%), Auto and Home (12%), International (9%) and Reinsurance (15%).

Institutional sells group life insurance, non-medical health insurance, such as short-term and long-term disability, long term care and dental insurance, and employer sponsored auto and homeowner's insurance (through the Auto and Home segment) and prepaid legal plans.

Individual provides traditional, universal and variable life insurance products, individual disability insurance, long term care, and annuities (variable and fixed) and other investment products such as mutual funds.

Auto and Home primarily sells personal p/c insurance including auto insurance (73% of 2005 net premiums earned) and homeowner’s (27%). Umbrella policies, recreational vehicle and boat coverages are also offered. Sales are directly to employees at their worksite or through various retail distribution channels including company agents, independent agents, property and casualty specialists and direct marketing.

International provides life insurance, accident and health insurance, annuities, savings and retirement products to individuals or to groups. Asia and Pacific countries, Latin America and Europe are primary markets for MetLife International.

Reinsurance is comprised of the life reinsurance business of Reinsurance Group of America, a publicly traded company. Through its General American Life Insurance subsidiary, MetLife owns nearly 53% of RGA. Reinsurance Group of America provides reinsurance in North America through subsidiaries RGA Reinsurance and RGA Life Reinsurance of Canada. In Europe, RGA sells individual and group life insurance, primarily in Spain and the UK. RGA also operates reinsurance subsidiaries and branch offices in Australia, the Caribbean, Hong Kong, Japan, Mexico, South Africa,
and South America.

Principal Methods: Captive agents, selected independent agents, internet

The marketing of individual products by MetLife targets the large to middle-income market, as well as affluent individuals, owners of small businesses and executives of small- to medium-sized companies. MetLife has been successful in selling its products in various multi-cultural markets.

Individual products are distributed nationwide through multiple channels. There are three wholesaler organizations: the coverage group for risk based products; the point of sale group for risk-based products; the annuity group for accumulation-based products. Both the coverage and point of sale distribution organizations sell universal life, variable universal life and traditional life products. The coverage wholesalers distribute products through independent general agencies, financial advisors, consultants, brokerage general agencies and other independent marketing organizations under contractual arrangements. The point of sale wholesalers distribute products through financial intermediaries, including regional broker-dealers, brokerage firms, financial planners and banks. The annuity model wholesalers distribute both fixed and variable deferred annuities, as well as income annuity products through financial intermediaries, including regional broker-dealers, New York Stock Exchange (“NYSE”) brokerage firms, financial planners and banks.

Individual insurance and investment products are distributed through distribution channels which include MetLife Resources and Tower Square Securities, Inc. MetLife Resources, a focused distribution channel of MetLife, markets retirement, annuity and other financial products on a national basis through 737 agents and independent brokers. MetLife Resources targets the nonprofit, educational and healthcare markets. Tower Square, a subsidiary of MetLife, is an affiliated broker-dealer that markets variable life insurance and variable annuity products, as well as mutual funds and other securities, through 548 independent registered representatives.

Life Annuity Business: According to its 2005 annual review, a
new inflation protection feature was added to its Guaranteed Immediate Income Program. This product is a fixed income annuity that can be offered with a defined contribution plan, IRA annuity or an annuity distribution option in an
employer-sponsored pension plan.

MetLife's individual segment provides traditional, universal and variable life insurance products, individual disability insurance, long term care, and annuities (variable and fixed) and other investment products such as mutual funds.

Auto Business: MetLife became the first national insurer to include identity theft resolution services at no additional charge in their auto coverage policies. MetLife also ranked fourth in the 2005 National Homeowners Insurance Survey in overall claim satisfaction.

MetLife's Auto and Home segment primarily sells personal p/c insurance including auto insurance (73% of 2005 net premiums earned) and homeowner’s (27%). Umbrella policies, recreational vehicle and boat coverages are also offered. Sales are directly to employees at their worksite or through various retail distribution channels including company agents, independent agents, property and casualty specialists and direct marketing.

Homeowners Business: MetLife became the first insurer to include identity theft resolution
services at no charge in its standard homeowners, renters and condo policies. MetLife also ranked second in the 2005 National Homeowners Insurance Survey in overall claim satisfaction.

MetLife's Auto and Home segmment primarily sells personal p/c insurance including auto insurance (73% of 2005 net premiums earned) and homeowner’s (27%). Umbrella policies, recreational vehicle and boat coverages are also offered. Sales are directly to employees at their worksite or through various retail distribution channels including company agents, independent agents, property and casualty specialists and direct marketing.

Health Business: Though MetLife does not offer health coverage insurance plans, the company provides disability income plans to provide monthly income in case of an injury.

Special Business: MetLife offers boat insurance to cover property, accidents, and passengers. Optional coverage includes portable radios, fishing equipment, water skiis and so forth.

Company Rating:
Best Insurance Reports: A+
Url of page rating was collected: http://www.metlife.com/Applications/Corporate/WPS/CDA/PageGenerator/0,4132,P280,00.html
Best Rating: A+ by A.M. Best.

Company Financial Status:
Ticker Symbol: MET
Assets & Premiums: 2005 Assets: $481.6 Billion;
2005 Revenues: $45.0 Billion;
Net Income: $6.16 Billion

Review: AIG Insurance

Company Information

Lines of Insurance:
Auto, Health, Life, Homeowners

States licensed to sell insurance in:
AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

Type of Insurance Company: Stock Company

Name of Parent Company:
American Insurance Group, Inc.

Insurance subsidiaries:
AIG Direct
21st Century Insurance
AIG American General

Company Overview:

Company History: AIG’s General Insurance operations include the largest U.S. underwriters of commercial and industrial insurance, the most extensive international property-casualty network, a personal lines business with an emphasis on auto insurance and high-net-worth clients and mortgage guaranty insurance operations. AIG’s leadership is a result of its underwriting skill, innovative insurance solutions, financial strength, superior service and responsive claims handling. The AIG claims operation gives clients access to a vast worldwide network of dedicated experts and top legal firms.

AIG is a publicly traded insurance group, with a holding company structure, headquartered in New York City and operating in the United States and internationally. AIG is a world leader in international insurance operations, doing business in more than 130 countries and jurisdictions through more than 100 U.S. and foreign subsidiaries. AIG companies serve commercial, institutional and individual customers for property and casualty insurance, life insurance, retirement services, financial services and asset management services. The four main areas of business are General Insurance (commercial, industrial and personal lines of property and casualty insurance as well as mortgage guaranty business), Life Insurance and Retirement Services (individual and group life insurance and fixed and variable annuities), Financial Services (aircraft finance, capital markets services, consumer finance and insurance premium finance) and Asset Management (institutional, retail and private fund management). Foreign operations accounted for about 50% of total revenues in 2004. Life Insurance and Retirement Services accounted for about 51.5% of 2004 operating income, General Services about 19.7%, Financial Services 17.1% and Asset Management 11.7%. AIG has about 92,000 employees.

AIG’s operations developed out of the insurance agency interests of C. V. Starr in Shanghai in 1919 and several subsequent acquisitions and consolidations of property and casualty and life insurance companies in the U.S. and abroad.

Problems with regulatory and accounting issues are being dealt with by new management installed during 2005

AIG’s General Insurance segment includes many lines of business written by many AIG companies in the U.S. and internationally, but workers’ compensation business is the largest class of business written here and represented approximately 15 percent of net premiums written for the year ended December 31, 2006. During 2006, 8 percent and 7 percent of the direct General Insurance premiums written were written in California and New York, respectively. No other state accounted for more than five percent of such premiums. Within General Insurance, an operation called Domestic Brokerage Group (DBG) conducts business within the U.S. and Canada and accounted for 54% of AIG’s net premiums written in 2006. DBG writes substantially all classes of business insurance through insurance brokers. DBG also provides numerous specialized forms of insurance and various risk and environmental products. A reinsurance subsidiary owned 59.2% by AIG is also included in General Insurance. AIG’s personal lines operations provide automobile insurance through AIG Direct, a mass marketing operation, the Agency Auto Division and 21st Century Insurance Group (21st Century is 61.9% owned by AIG) and provides coverages for high net worth individuals through the AIG Private Client Group. Residential mortgage guarantee insurance (both in the U.S. and internationally) and Foreign General Insurance make up the rest of the General Insurance segment of AIG’s business.

AIG’s Life Insurance & Retirement Services Operations segment provides insurance and retirement savings products both domestically and abroad. These include individual and group life insurance, annuities (including structured settlements), endowment and accident and health policies and retirement savings products (especially fixed and variable annuities). The foreign life insurance subsidiaries of AIG operate through more than 270,000 full and part time agents as well as independent producers selling to indigenous persons in local currencies as well as through direct marketing channels, brokers, financial institutions and other channels. The domestic part of AIG’s Life Insurance & Retirement Services business operates through multiple distribution channels including independent producers, brokerage, career agents and banks to sell life insurance, annuity, accident and health products and services and financial and investment products. In 2006, AIG’s Life Insurance & Retirement Services premiums came 78% from foreign operations and 22% from domestic operations.

AIG’s Financial Services Operations segment is engaged in activities that include aircraft and equipment leasing and various types of financing.

AIG’s Asset Management Operations segment includes a variety of investment related services and investment products including private banking and mutual funds.

Principal Methods: AIG sells insurance via www.aigdirect.com and also through it's agency company 21st Century.

AIG’s Life Insurance & Retirement Services Operations segment provides insurance and retirement savings products both domestically and abroad. These include individual and group life insurance, annuities (including structured settlements), endowment and accident and health policies and retirement savings products (especially fixed and variable annuities). The foreign life insurance subsidiaries of AIG operate through more than 270,000 full and part time agents as well as independent producers selling to indigenous persons in local currencies as well as through direct marketing channels, brokers, financial institutions and other channels. The domestic part of AIG’s Life Insurance & Retirement Services business operates through multiple distribution channels including independent producers, brokerage, career agents and banks to sell life insurance, annuity, accident and health products and services and financial and investment products. In 2006, AIG’s Life Insurance & Retirement Services premiums came 78% from foreign operations and 22% from domestic operations.

Life Annuity Business: AIG’s Life Insurance & Retirement Services Operations segment provides insurance and retirement savings products both domestically and abroad. These include individual and group life insurance, annuities (including structured settlements), endowment and accident and health policies and retirement savings products (especially fixed and variable annuities). The foreign life insurance subsidiaries of AIG operate through more than 270,000 full and part time agents as well as independent producers selling to indigenous persons in local currencies as well as through direct marketing channels, brokers, financial institutions and other channels. The domestic part of AIG’s Life Insurance & Retirement Services business operates through multiple distribution channels including independent producers, brokerage, career agents and banks to sell life insurance, annuity, accident and health products and services and financial and investment products. In 2006, AIG’s Life Insurance & Retirement Services premiums came 78% from foreign operations and 22% from domestic operations.

Auto Business: AIG’s General Insurance segment includes many lines of business written by many AIG companies in the U.S. and internationally, but workers’ compensation business is the largest class of business written here and represented approximately 15 percent of net premiums written for the year ended December 31, 2006. During 2006, 8 percent and 7 percent of the direct General Insurance premiums written were written in California and New York, respectively. No other state accounted for more than five percent of such premiums. Within General Insurance, an operation called Domestic Brokerage Group (DBG) conducts business within the U.S. and Canada and accounted for 54% of AIG’s net premiums written in 2006. DBG writes substantially all classes of business insurance through insurance brokers. DBG also provides numerous specialized forms of insurance and various risk and environmental products. A reinsurance subsidiary owned 59.2% by AIG is also included in General Insurance. AIG’s personal lines operations provide automobile insurance through AIG Direct, a mass marketing operation, the Agency Auto Division and 21st Century Insurance Group (21st Century is 61.9% owned by AIG) and provides coverages for high net worth individuals through the AIG Private Client Group. Residential mortgage guarantee insurance (both in the U.S. and internationally) and Foreign General Insurance make up the rest of the General Insurance segment of AIG’s business.

Company Rating:
Best Insurance Reports: A++
Url of page rating was collected: http://www.ambest.com/ratings/
Best Rating: A.M. Best rating: A++ (superior)

Company Financial Status:
Ticker Symbol: AIG
Assets & Premiums: 2006 Revenues over $14 Billion Dollars

Review: AAA Insurance

Company Information

Lines of Insurance:
Auto, Homeowners

States licensed to sell insurance in:
DE, MD, NJ, PA, VA

Type of Insurance Company: stock company

Name of Parent Company:
American Automobile Association

Insurance subsidiaries:
AAA Mid Atlantic Insurance Co.
AAA Texas County Mutual Insur. Co.
AAA Texas County Mutual Insur. Co. of N.J.

Company Overview:

Company History: Company organized in the early 90's and is focused on PA and NJ where it has 80% of its business. It derives much of its success, impact and name recognition from its affiliation with the nationally famous Automobile Association of America. The AAA is divided into regions and The Mid Atlantic region sponsors this company.

Principal Methods: AAA sales agents

Auto Business: Coverage available to AAA members only. Broad range of Auto coverage including "full coverage auto," personal accident, inland marine, fire and extended coverage, and homeowners

Homeowners Business: Most business is at standard or preferred rates and includes fire and extended coverage.

Special Business: Inland marine business insures pleasure boats.

Company Rating:
Best Insurance Reports: B++

Company Financial Status:
Assets & Premiums: Assets have climbed over the last 5 years and stand at about 425 million. Gross premiums were about 234 million.

Review: United Services Automobile Association

Lines of Insurance:
Auto, Long Term Care, Life, Homeowners

States licensed to sell insurance in:
AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

Type of Insurance Company: Mutual

Company Overview:

Company History: Founded 1922, USAA only insures members of the U.S. Military and their descendents. 2006 Fortune 500: 189th in Revenue; 87th in Net Worth; 76th in Assets.

USAA serves about 6 million member customers, primarily military personnel, military retirees and their families. Its products and services include property/casualty insurance, life insurance, banking, credit cards, discount brokerage, financial planning, and investment management. Insurance and financial products are sold mainly by mail, telephone and Internet. Personal insurance lines account for most of the insurance writings (private passenger automobile, dwelling fire insurance, homeowners, boatowners, comprehensive personal liability, household goods and personal effects, personal articles floater and personal umbrella policies). In addition to covering automobiles operated in the United States and its territories and possessions, USAA covers vehicles operated in Canada, Europe, Korea and certain islands in the Pacific and Caribbean). A 2000 agreement with the Hartford Financial Services Group offers commercial policies to USAA members that own small businesses. Under this program, USAA performs sales operations and marketing services while the Hartford performs underwriting, policy servicing and claims administration. Over 95% of 2005 premiums written were from private passenger auto liability (38.1%), auto physical damage (32.8%), and homeowners (24.8%). USAA also sells items such as computers, furniture, jewelry and home and auto safety devices by mail order and offers long distance telephone service, travel services and Internet access to its members. USAA was founded in 1922 by a group of U.S. Army officers to provide automobile coverage for members of the group, but the customer group that the organization serves has expanded to other military people and their family members as well as to employees of selected federal agencies (such as some foreign service and investigative agencies) and the range of products and services has greatly broadened. As a result of its unique client group and direct marketing sales methods, USAA claims to have a low cost structure and high retention rate that enable it to provide cost effective products and services. Although sales are made nationwide, about 40% of premium volume is derived from just 4 states – Texas (11.7%), California (11.6%), Florida (9.9%) and Virginia (6.7%).

Principal Methods: Dedicated agents in USAA offices.

Life Annuity Business: USAA specializes in insurance and financial products for active and retired members of the U.S. Military and their families.

Auto Business: USAA specializes in insurance and financial products for active and retired members of the U.S. Military and their families.

Homeowners Business: USAA specializes in insurance and financial products for active and retired members of the U.S. Military and their families.

Health Business: USAA specializes in insurance and financial products for active and retired members of the U.S. Military and their families.

Special Business: USAA specializes in insurance and financial products for active and retired members of the U.S. Military and their families.

Company Rating:
Best Insurance Reports: A++
Url of page rating was collected: http://www.ambest.com/ratings/
Best Rating: A.M. Best rating: A++ (superior)

Company Financial Status:
Assets & Premiums: 2006 Assets: $113.5 Billion
2006 Premiums: $9.163 Billion
Standard & Poor's rating: AAA (extremely strong)
Moody's rating: Aaa (Exceptional)

Review Of Progressive Insurance

Company Information

Lines of Insurance:
Auto

Type of Insurance Company: Stock

Name of Parent Company:
The Progressive Group of Insurance Companies

Insurance subsidiaries:
Progressive Direct
Progressive Drive Insurance

Company Overview:

Company History: Progressive was founded in 1937 as Progressive Mutual Insurance Company. Progressive is known as one of the more innovative insurance companies. They were the first to offer drive in claims service and to allow customers to pay their premiums in installments. In 1956, they launched Progressive Casualty Insurance Company which was focused on writing auto insurance for high-drivers. Today, Progressive is able to write insurance for all types of drivers. But, the experience of sucessfully underwriting and handling claims service for higher risk drivers has given them the instituional ability and discipline to write all kinds of auto insurance risk types.

Progressive operates through a publicly traded holding company, Progressive Corporation, which was formed in 1965, and currently has 67 subsidiaries and 1 mutual insurance company affiliate. The company was built (after 1965) from a small 100 employee insurance firm into the current large organization by Peter B. Lewis, business man, philanthropist and art collector who controls 6.7% of the common stock. Today the company has over 27,000 employees.

Progressive’s insurance subsidiaries and affiliates provide personal and commercial automobile insurance as well as other specialty property-casualty insurance and related services throughout the United States. Progressive’s property-casualty insurance products protect its customers against collision and physical damage to their motor vehicles, uninsured and underinsured bodily injury, and liability to others for personal injury or property damage arising out of vehicle accidents. In addition to private passenger automobile coverage, Progressive writes recreational vehicle, mobile home, non-standard commercial vehicle and credit-related insurance. In 2006 the 6 primary states from which Progressive derived premiums were Florida (12.8%), Texas (7.8%), New York (6.6%), California (7.7%), Georgia (5.3%) and Ohio (4.9%). Other states accounted for the additional 54.9%.

Principal Methods: Progressive is an Auto Insurance company that has expanded their offerings to include other "vehicles" like motorcycles, RV's, boats/PWC, snowmobiles and Segway and other "toys". The company distributes insurance directly to consumers via it's callcenters and the Internet. As can be expected of an innovative company, Progressive was one of the first insurance companies to embrace and pursue Internet distribution of insurance. Progressive also distributes insurance through a network of over 30,000 independent agents.

Auto Business: Progressive is currently the third largest auto insurance company in the U.S. growing at about 17% per year from 1996 thru 2005 reaching total Auto Insurance Revenues of $14 Billion. Progressive is known for innovative claims, distribution, and marketing practices. Progressive may be most famous for offering the quotes of up to four other carriers when you request a quote on their website. Consumer common sense would make you question whether the quotes for the other companies are true "apples to apples" comparisons. If you are shopping Progressive it would be prudent to verify the pricing of the other companies before making a buying decision. My inkling is that while the quotes for the other companies may be directionally accurate, based on their filed rates, they do not include all of the potential discounts and credits that are available.

The personal lines segment of Progressive’s business writes insurance for private passenger automobiles and recreational and other vehicles. This business generally targets its insurance products in a given state to a specific distribution channel, market or customer group. The personal lines businesses accounted for 86% of total net premiums written in 2006. Progressive has stated that its strategy is to be the low-cost provider of a full line of auto insurance products with superior service, distributed through which ever distribution channel the customer prefers. Progressive ranked third in industry market share for 2005 based on net premiums written. The company competes with approximately 280 other insurance companies/groups that each writes over $5 million of private passenger auto insurance premiums annually in the United States. The top 15 private passenger auto insurers comprised about 75% of this market. For 2006, the estimated industry net premiums written for personal auto insurance in the United States was $161.1 billion, and Progressive’s share of this market was approximately 7.6%.

Private passenger automobile insurance represented 91% of total personal lines net premiums written by Progressive in 2006. Specialty personal lines products include insurance for motorcycles, recreational vehicles, mobile homes, watercraft, snowmobiles and similar items. These products represented 9% of the total personal lines net premiums written and are primarily distributed by independent agents and brokers. Progressive claims to have been the market share leader for personal watercraft insurance and for motorcycle insurance for at least the last 5 years. A personal umbrella insurance product is offered in select markets in 5 states through certain independent agents as a pilot program. Personal lines business is generated either by independent agents and brokers or written directly online or by phone. The agency network consists of more than 30,000 independent insurance agencies located throughout the United States, as well as brokerages in New York and California. These independent insurance agents and brokers have the ability to place business with Progressive for specified insurance coverages within prescribed underwriting guidelines, subject to compliance with company-mandated procedures. The agency business also writes business through strategic alliance business relationships with other insurance companies, financial institutions and national brokerage agencies. In 2006, the total net premiums written through the agency business represented 64% of the personal lines volume. The direct business includes business written directly online and over the phone. Net premiums written in the direct business were 36% of the personal lines volume in 2006.

The commercial auto business writes primary liability and physical damage insurance for automobiles and trucks owned by small businesses and represented 14% of Progressive’s total net premiums written in 2006. The majority of the commercial
auto customers insure three or fewer vehicles. Commercial auto business is primarily distributed through the independent agency channel and operates in the specialty truck and light and local commercial auto markets.

Homeowners Business: Progressive Direct recently started working with Homesite and Liberty Mutual insurance companies to offer Progressive Direct auto insurance customers, the ability to purchase homeowners, condominium and renters insurance.

Special Business: Boats, RV's, Motorcyles Insurance, Persoanl Water Craft Insurance, even Segways.

Company Rating:
Best Insurance Reports: A+
Url of page rating was collected: http://investors.progressive.com/ratings.asp
Best Rating: AM Best has rated Progressive's Financial Strength - A+ and Progressive's
Debt Rating - a

Company Financial Status:
Ticker Symbol: PGR
Assets & Premiums: Net Premiums Written 2006 = $14.1 Billion
Total Revenues 2006 = $14.8 Billion
Net Income 2006 = $1.65 Billion
Underwriting Margin 2006 = 13.3%
Total Personal Lines Policies inforce 2006 = 9.74 Million
Added to their commercial auto policies inforce, Progressive's Market Share in 2006 = 7.6%

Consumer Satisfaction Survey Results and Comments:
NPR Score: 57
Comments from Consumers:

"Easy to use website"

"Cost effective, yet excellent service."

"Call wait time - before speaking to a human 157 minutes, so far...stil holding..."

Review of GEICO: Company Information

Lines of Insurance:
Auto

Type of Insurance Company: Subsidiary of Berkshire Hathaway. Inc.

Name of Parent Company:
Bershire Hathaway, Inc.

Insurance subsidiaries:
GEICO General Insurance Company
GEICO Indemnity Company
GEICO Casualty Company
Government Employees Insurance Company

Company Overview:

Company History: The name goes back to GEICO’s first customers in 1936 who were government employees and Military personnel. Founder Leo Goodwin went into business determined that he could deliver automobile insurance at reduced prices by selecting prime customer groups and marketing directly to them. Goodwin succeeded in driving down operating costs and passed on the savings to policyholders up front as discounts. GEICO continues to find ways to manage its business costs in order to offer savings to customers today.

Size and Scope:

GEICO is the fourth-largest private passenger auto insurer in the United States
The third-largest property/casualty insurer in the world (Berkshire Hathaway/GEICO global revenues 2003)
The fastest-growing major auto insurer in the U.S., with policies-in-force growth of 12.4 percent in 2005
$21.2 billion in assets as of 12/31/05
More than 20,000 associates
12 major offices around the country
Provides 24-hour service, 7 days a week, 365 days a year
Four affiliated companies meet insurance needs of all types of drivers

In 1996, GEICO became a wholly-owned subsidiary of Berkshire Hathaway, headed by Warren Buffett, one of the country’s most successful investors. For the past two years, Fortune magazine has named Berkshire’s property-casualty insurance operation the most admired in the country

The Government Employees Group is the insurance operation of Berkshire Hathaway Inc., a publicly traded holding company which also owns businesses in a wide range of industries (including paint manufacturing, jewelry retailing, aviation timesharing, and others) and maintains an extensive portfolio of common stock investments (including American Express, Coca Cola, the Washington Post) that was valued at over $60 billion at the end of 2006. The insurance and reinsurance business activities are conducted through over 60 domestic and foreign insurance companies that provide insurance and reinsurance of property and casualty risks in the U.S. and worldwide and include reinsurance of life, and accident and health business. GEICO’s auto insurance business in the U.S. primarily sells private passenger automobile insurance. Its policies are mainly sold by direct response methods in which customers apply for coverage directly to GEICO by phone, mail or the Internet. The insurance operation accounted for over 30% of Berkshire Hathaway’s 2006 revenues.

Since it began in 1936 as Government Employees Insurance Company (GEICO), GEICO’s goal has been to provide low-cost, high-quality insurance. GEICO was a pioneer in selling directly to customers. Today the Government Employees Insurance Company (the lead company) generates about 30% of the group’s property/casualty direct premiums. It writes preferred personal lines insurance for government employees and military personnel. GEICO General Insurance Company, which generates about 41% of the group’s direct premium, writes preferred automobile insurance for people who are not government employees or military personnel. GEICO Indemnity Company, which generates about 22% of the group’s premiums, writes standard automobile and motorcycle insurance. GEICO Casualty Company, which generates 7% of the group’s premiums, writes non-standard automobile insurance. The companies together provide auto, homeowner, and other types of insurance to over 5 million people. Homeowner’s insurance is offered to policyholders of the group through Travelers’ – as well as some additional companies -- using a Maryland independent insurance agency owned by GEICO. GEICO’s strategy is to concentrate on its core business of auto insurance while providing its customers a way to obtain homeowner’s coverage.

In 2005, New York accounted for 19.2% of direct premium writings, Florida (14.5%), Maryland (6.8%), and Virginia (5.7%).

Principal Methods: GEICO sells directly to consumers through the Internet and call centers.

In addition to auto insurance, GEICO offers customers insurance products for their motorcycles, all-terrain vehicles (ATV's), boats, homes, apartments and mobile homes. Personal umbrella protection and life insurance are also available.

Life Annuity Business: GEICO refers Life Insurance request to Insure.com.

Auto Business: Sold direct to consumers through GEICO's website and phone centers.

Homeowners Business: GEICO offers homeowners insurance through Insurance
Counselors Inc.

Company Rating:
Best Insurance Reports: A++
Url of page rating was collected: http://www.geico.com/about/background/honors_ratings.htm
Best Rating: Financial strength rating: A++ (Superior)
Debt rating on company's existing debt securities: aaa
The outlook for both ratings - stable

Company Financial Status:
Assets & Premiums: 2006 Revenues = $11.055 Billion in Earned Premium with earnings before taxes of $1.3 Billion

Review of GEICO Insurance Company-Overview

Company Information

Company History: The name goes back to GEICO’s first customers in 1936 who were government employees and Military personnel. Founder Leo Goodwin went into business determined that he could deliver automobile insurance at reduced prices by selecting prime customer groups and marketing directly to them. Goodwin succeeded in driving down operating costs and passed on the savings to policyholders up front as discounts. GEICO continues to find ways to manage its business costs in order to offer savings to customers today.

Survey Results

Overall, how satisfied are you, with GEICO?

Contact Information

Company Contact Info:
Mr. Tony Nicely
One GEICO Plaza
Washington, DC 20076
800 861-8380

How Insurance Companies Are Like Strippers-countinued

It's easy enough to understand that the health insurance industry is opposed to the health reform bill just passed by the Senate Finance Committee, but the real question is why? Again, Ezra Klein comes through with 4 key points explaining what insurers want:

A stronger individual mandate
Elimination of the excise tax on high-cost health care plans
No Medicare payment cuts
No New Taxes

Translation? Insurance companies want everyone to be covered, but they don't want to see their profit margins decrease in the process. Real translation? Insurers are all about the money, which brings me to the point of this post, which is how insurance companies are like strippers.

Strippers make gobs of money selling an illusion. They dance around, displaying their bodies to men in exchange for tips. But in order for them to make real money, they have to find a way to make the men believe that they are interested in them. You see, if a stripper pays special attention to a man, he's likely to give her more money. She knows this of course, and she likes the money. Meanwhile, he lies to himself and is convinced that she's not doing it for the money.

Insurers are no different. They, too, sell an illusion. They offer people a false sense of security by convincing them that they are adequately insured when in fact, a great many people are under-insured. The insurer makes its money, and when the beneficiary files a claim--like the balding, overweight man who thinks buying a drink for his stripper counts as a date--they quickly find out that the insurer's actually not at all into them. They just want your money, and they'll do just about whatever it takes--except actually covering your care--to get it.

We need to wake up and realize this opposition to reform for what it is: greed. Fortunately, there is hope that the insurance industry has just shown its true colors to the public through the PWC report. Many are now convinced that, thanks to the insurers' salvo, we're actually closer to the public option than we were before, as Democratic and public opposition to the status quo has the potential to be galvanized around the very transparent and highly self-interested motives of the insurance industry. I certainly hope so.

Read more at: http://www.huffingtonpost.com/d-brad-wright/how-insurance-companies-a_b_323544.html

How Insurance Companies Are Like Strippers

The big news this week, other than the outcome of the Senate Finance Committee's vote on Tuesday, was the release of a report on the "Potential Impact of Health Reform on the Cost of Private Health Insurance Coverage." The report, released just days before the crucial vote, is the result of a America's Health Insurance Plans (AHIP) contract with the reputable consulting firm PriceWaterhouseCoopers (PWC).

The commissioned study finds that the provisions of the Senate Finance bill will cause health insurance premiums to increase. There's just one problem: Even PWC admits that its study makes several unreasonable assumptions that ultimately undermine the credibility of their findings. Why make such flawed assumptions? Well, basically because AHIP paid them to. This is little more than a clever way for a lobbying firm (AHIP) to present its position through the guise of a well-respected consultancy (PWC). It's credibility laundering, or as Ezra Klein puts it: "The consultancy gets a paycheck, the outside group gets a press release, and everyone goes home happy."

If you need more confirmation that the PWC analysis is little more than an insurance lobbyist wolf in a sheepish consultant's clothing, you should take a look at what Jonathan Cohn and Harold Pollack have to say. Pollack's piece is especially critical of what reports like this do to undermine people's faith in the academic and scientific communities. An independent analysis (i.e., not blinded by huge piles of money) was conducted by MIT economist Jonathan Gruber, who finds that contrary to PWC's report, premiums can be expected to decrease for most people as shown here:

Read more at: http://www.huffingtonpost.com/d-brad-wright/how-insurance-companies-a_b_323544.html

General Health Insurance Questions 4

What can, or must, I do when a health insurance company or plan refuses to pay a claim or provide a benefit or service?

If a health insurance company or plan denies a claim or refuses to provide a requested benefit or service, it is very important that the insured or member immediately review the policy, plan or evidence of coverage document relating to claim or benefit denial, appeal or grievance procedures.

Most often, there is a requirement that the insured or member appeal a denial of a benefit or service with a written appeal within a period as short as 15 to 60 days. In addition, there are typically multiple levels of appeal or grievance, which are mandatory and which involve subsequent short time limits. Appeal or grievance procedures, depending on the policy or plan, either require that final determinations of entitlement to benefits or services be made by required arbitration, or they allow the insured or member to file a lawsuit, but only after exhausting the appeal or grievance procedures set forth in the policy or plan.

While legal assistance from an attorney is not necessarily required at the initial levels of appeal, it is strongly urged as soon as possible if the amount involved is large, or the insurer is contending the treatment you need to live is "experimental" or the matter is going to any arbitration or lawsuit. Rest assured that the health insurer or plan will almost certainly be represented by an attorney, and s/he or he will be out to have your claim denied.

How long will my medical insurance allow my new baby and myself remain in the hospital following childbirth?

Because many insurance companies would not pay for hospital costs beyond the bare minimum, Congress enacted legislation that allows mothers and their newborn infants longer hospital stays. The law requires, among other items, insurance companies to pay for at least a 48-hour hospital stay for mothers and their newborns after a regular delivery. The legislation provides for a 96-hour hospital stay if the baby is born through a caesarean section. (The legislation follows on the heels of several states that have enacted similar legislation, but due to loopholes many insurers escaped enforcement of states' laws since they are regulated by federal law.)

Are there any limitations on what an insurance company can charge for insurance?

For each type of policy, insurance companies have a range of premium levels that may be charged based on various factors that are considered at the time an application is submitted. For example, the premium for an auto insurance policy will vary depending on the applicant's driving habits, such as number of miles driven and whether the auto is used for business, the age and model of the vehicle, and whether the applicant has recently been convicted of a traffic violation. The premium for a life insurance policy will vary depending on the applicant's age and health condition. Rating factors must be reasonably related to the risk being insured, and state law often limits the specific rating factors that may be considered for certain types of insurance.

The rates and rating factors for most types of insurance must be filed with the insurance regulatory agency for each state where the insurance is to be sold. In some states and for some types of insurance, the rates must get regulatory approval before they can be used.

mployee Retirement Income Security Act of 1974 (ERISA), as amended by the Multiple Employer Pension Protection Act of 1980 (MEPPA), typically collectively referred to as ERISA.

The original noble idea behind this federal law was protection of employee benefits and pension moneys from mismanagement or theft by incompetent or greedy trustees or by organized crime. Unfortunately, except for state laws that actually regulate insurance companies or health plans, ERISA also preempts (eliminates) any state law or remedy for insured or plan members that might otherwise relate to the administration of employee benefits, including health care insurance benefits, obtained through employment. In other words, as a practical matter, if a claim for health benefits or service is denied to a person who obtained health insurance coverage through employment, they are limited to the appeals and grievance procedures in the policy or plan and cannot sue in court for such things as breach of contract, breach of the implied covenant of good faith and fair dealing (bad faith), infliction of emotional distress, fraud, etc..

Typically, if the policy or plan is governed by ERISA, the only legal remedy outside of the policy or plan is to ask a court to review the claim denial decision to see if there was an abuse of discretion, which is extremely difficult to establish. Even if an abuse of discretion is established, the claimant is only entitled to receive the benefit or service that was originally denied, and that is often too late to help. In contrast, if the plan is an insured plan, and NOT subject to ERISA, the Insurer's Bad Faith can give rise to punitive damages.

Nearly 70% of the health care insurance currently in place in the United States is subject to ERISA. The balance of the health insurance in America is not subject to ERISA. The primary exceptions from ERISA are any health insurance policies or plans issued to individuals, and any group health insurance or plan coverage for employees of any state or local governmental agency or district, and any employee of a church or church affiliated organization. In addition, ERISA may not apply even if the health insurance coverage is obtained through private employment if the following four factors all apply: (1) the employer or employee organization did not contribute in any way to or any portion of premiums, (2) the participation in the employee benefit plan or program was voluntary, (3) the employer or employee organization did not endorse or administer the insurance and, (4) the employer or employee organization did not receive any commission or participation fee in connection with the insurance program or plan.

Top U.S. Health Insurance Companies

Health Insurance Gets a Report Card from U.S. News

U.S. News has issued a health insurance report card to health insurance companies in the United States. They named the Top 10 Commercial Companies, the Top 5 Best Medicare Plans, and the Top 5 Medicaid Plans. Each plan considered for the ranking was rated between 0 and 100. Scores were based on data from the National Committee for Quality Assurance.

Top 10 Commercial Plans

Harvard Pilgrim Health Care
Score: 91.7
Serves: Maine, Massachusetts
93 Worcester Street
Wellesley, MA 02481
Harvard Pilgrim Health Care has been in business for more than 35 years, and they have continually won awards for their stellar health care plans and practices.
Tufts Associated Health Maintenance Organization
Score:90.8
Serves: Massachusetts, New Hampshire, Rhode Island
705 Mt. Auburn Street
Watertown, MA 02472-1508
617-972-9400
In 1979, Tufts was founded as a not-for-profit health maintenance organization. Today, plan benefits can include chiropractic care, acupuncture, and massage.
Harvard Pilgrim Health Care of New England
Score: 90.6
Serves: New Hampshire
93 Worcester Street
Wellesley, MA 02481
Blue Cross and Blue Shield of Massachusetts

Score: 89
Serves: Massachusetts
Landmark Center
401 Park Drive
Boston, MA 02215-3326
Blue Cross and Blue Shield of Massachusetts is in the process of developing a statewide electronic medical records system. They are also working on ways to provide insurance for the estimated 500,000 uninsureds in Massachusetts.

ConnectiCare
Score: 88.9
Serves: Connecticut
175 Scott Swamp Road
P.O. Box 4050
Farmington, CT 06034-4050
Conniecticare was founded in 1981. They serve more than 240,000 individuals.
Health Net of Connecticut
Score: 88.6
Serves: Connecticut
1-888-802-7001
Health Net offers individual, group, dental, and vision healthcare options.
Excellus BlueCross, Blue Shield, Rochester Region
Score: 88.4
Serves: New York
P.O. Box 22999
Rochester, NY 14692
Blue Cross Blue Shield Rochester Region is part of an enterprise that ensures more than 2 million people and employs more than 6,000 New Yorkers.
Group Health Cooperative of South Central Wisconsin
Score: 88.3
Serves: Wisconsin
1265 John Q. Hammons Drive
P.O. Box 44971
Madison WI 53744-4971
Group Health Cooperative was founded in 1976 as a not-for-profit member-sponsored health maintenance organization.
Health New England
Score: 88.2
Serves: Connecticut, Massachusetts
(800) 842-4464.
Health New England offers individual and group health insurance policies. They are based in Massachusetts.
Anthem Blue Cross and Blue Shield-Connecticut
Score: 88.2
Serves: Connecticut
Operations Center and East Headquarters
370 Bassett Rd.
North Haven, CT 06473
(203) 239-4911
In addition to offering comprehensive health insurance, Anthem Blue Cross and Blue Shield-Connecticut also offers dental, life insurance, and pharmacy benefits.

Get more information about these and other health insurance plans > >

Best Medicare Plans

Fallon Community Health Plan
Blue Cross and Blue Shield of Massachusetts
Tufts Associated Health Maintenance Organization
Preferred Care
Kaiser Foundation Health Plan of the Northwest

Best Medicaid Plans

Fallon Community Health Plan
Neighborhood Health Plan of Rhode Island
Blue Cross & Blue Shield of Rhode Island
Capital District Physicians’ Health Plan
Excellus BlueShield, Rochester Region

If you are searching for a health care plan for yourself, your family, or your employees, consider the excellent, above mentioned providers and plans.

General Health Insurance Questions 3

Are there dangers in cancelling health insurance?

There can be potential serious adverse consequences associated with canceling health. If you cancel health insurance before replacement health insurance coverage is confirmed and already available, there may be a gap in your health insurance coverage.

First, there is no assurance that you will be able to obtain new health insurance. You might be denied coverage due to health conditions that developed prior to applying for the new insurance or plan, or go completely uncovered during the underwriting process. Second, even if you are accepted for subsequent health insurance coverage you could face a situation in which certain medical conditions that developed during the prior health insurance coverage are excluded from coverage under the new insurance as "preexisting conditions."

These problems may not exist if you are moving from one group insurance plan to another, as many group policies ignore pre-existing conditions if you move from a similar group health coverage within 30 days of prior coverage. A second exception will probably result in the same continuation of coverage mandated by HIPAA on and after January 1, 1998.

What will happen to our health insurance for my dependent children and I after the divorce from their father?

Your husband may keep the children on his policy. However, as you are no longer married you are no longer eligible for coverage on his policy. However most plans offer a conversion package to individual coverage under COBRA, a federal law. The cost of insurance is usually the responsibility of the separate parties after a divorce. However, coverage for the children may be available.

What are typical problems that arise in getting health care benefits provided or paid?

Coverage and benefit disputes in health care insurance and health care service plans that frequently arise include the following:

(1) The insurer or plan contends that care was not "medically necessary," which is often defined as care which is reasonably required according to accepted norms within the medical community.

(2) The insurer or plan contends that the charges were not "usual, customary and reasonable" for the services rendered.

(3) The insurer or plan contends that the treatment was "experimental" or "investigational," which generally means that the care has not been accepted in the medical community as normal treatment or treatment that has not been proven to be effective medically.

(4) The insurer or plan contends that medical care was received outside a specified geographical service area and was not emergency care.

(5) The insurer or plan contends, with respect to extended care especially, that the care constituted "custodial care" or "long-term rehabilitation" which are usually excluded from coverage. This issue often arises in the context of persons confined to skilled nursing facilities or persons requiring home health care.

(6) Coverage in a replacement policy that is substantially and impermissibly different (more limited) than that in a group policy it replaced.

(7) Substantial differences between descriptions or terms in the evidence of coverage (member handbook, disclosure form or summary) and the insurance policy or health plan contract in the circumstance where the denial of coverage or benefit is based on the evidence of coverage, not the contract.

(8) Substantial ambiguity in a particular term, definition, benefit or coverage description, exclusion or limitation, or an ambiguity created by an interplay between or among the different provisions.

(9) The insurer or plan attempts to effect a reduction in or elimination of a benefit or coverage contrary to a provision in the policy or plan, or without adequate notice.

(10) The insurer or plan seeks recession or cancellation of the policy or plan alleging that an insured or member had a preexisting condition not revealed in the application.

Check here for a helpful article on dealing with insurance companies when you have a high risk illness.

My father who has conjestive heart failure and type 2 diabetes recently underwent a quintuple heart bypass. His medical bills are staggering and he has no health insurance. Short of filing bankruptcy, what are his options in getting these amounts reduced?

You could offer to pay immediately at the same discounted level those bills would have been paid by a health insurer (Blue Cross and HMO have agreements with the hospital and medical/surgical providers to substantially discount bills). That's a very substantial discount from the full "list price".

If that offer is not accepted, when he is sued, he might be more successful by saying the discounted price is the "reasonable and customary" price, rather than the list price they are seeking to collect. This approach is based on the fact that the discounted rates are what they receive on the majority of payments. He could do extensive pre-trial discovery to make them disclose their actual reimbursement rates (they would likely settle rather than disclose).

This whole process could be handled far better with the help of an attorney. If you don't have the money and fear bankruptcy is his only recourse, see a bankruptcy lawyer soon as Congress is about to change the bankruptcy laws and make it very difficult to wipe out bills.

General Auto Insurance Questions -2

Are there any options for resolving a dispute with my insurance company other than suing the company in court? Arbitration?Some insurance policies contain a provision allowing or requiring arbitration of certain disputes between the insurance company and the insured, and this may include disputes regarding certain types of claims. "Arbitration" is a procedure for resolving disputes by use of neutral, private individuals ('arbitrators") as an alternative to a lawsuit, and it often is a cheaper and faster method of resolving contract disputes as compared with a court proceeding. This procedure usually is not available unless specifically stated in the policy or unless the insurance company and policyholder mutually agree to submit their dispute to arbitration.I was injured in an accident with a rental car, and the driver was not on the contract. Can I get the rental agency to pay?If agents knowingly rented to an unauthorized driver, the rental company may be liable for your injuries. But agencies are usually quite strict about getting the names of all potential drivers onto the contract.The other driver should have his or her own car insurance coverage, and you can make a claim against that policy.If you have uninsured motorist coverage, you may be able to use that to pay for your injuries.While riding my motorcycle, I was hit by a guy running a red light. His insurance company wants access to all of my medical records, including records from before the accident. Do I have to give the company the old records?Not unless there is a lawsuit. During the claims process, the insurance company is entitled to investigate only the injuries you suffered from the accident, or injuries you claim are worse because of the accident.If you allow the opposing insurance company access to your records, read the form before signing. Cross out or rewrite any wording that grants access to your entire medical history.If there is a lawsuit, you may have to turn over all your medical records related to the injury or that could be related to the injury. For example, if you hurt your arm, you would probably have to give up old records about a broken arm, but not about a tonsillectomy. On unrelated matters, you are entitled to medical privacy. An experienced auto accident attorney can help.Can I cancel my policy at any time and will there be a penalty?As a general rule, a policyholder may elect to cancel an insurance policy at any time by giving notice to the insurance company. In some cases you may be required to return the original policy or sign a "policy release", and of course you will be responsible for any premium earned through the date of cancellation.Sometimes there are financial penalties for early cancellation by the policyholder. Most property and liability policies require what is called a "short rate" penalty when a policyholder requests cancellation, which means that the company retains a disproportionate amount of the premium. For example, if you have a one year policy and you request cancellation after six months, the "short rate" penalty would allow the company to retain more than one-half of the annual premium. Also, many types of life insurance policies and annuities impose "surrender charges" if they are canceled before they have been in effect a certain number of years. A policy must clearly describe any applicable cancellation penalties or surrender charges.Lawsuit for breach of contractAn insurance policy is a contract between the insurer and the insured. If the insurance company fails or refuses to pay a claim which should be paid under the terms of the policy, it is in breach of the contract, and the insured can pursue all available legal remedies for the breach. This usually involves filing a lawsuit against the insurance company. If successful, the insured will be able to recover its damages, which at least will equal the amount the insurer should have paid under the terms of the policy. Depending on state law and the circumstances of a specific case, damages may also include other expenses that were incurred because of the breach as well as costs of the lawsuit.

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