Aon Corp., the world's largest insurance broker, said Tuesday it has completed the sale of Auto Insurance Specialists LLC to auto insurer Mercury General Corp.
Aon (nyse: AOC - news - people ) received $120 million in cash for all the issued and outstanding equity interests of AIS Management LLC, which is Auto Insurance Specialists' parent company. Aon may also receive up to $34.7 million over the next two years if certain performance benchmarks are met.
The transaction, which was announced in October, closed on Friday.
Aon shares fell 24 cents to $43.87 in afternoon trading. Mercury General (nyse: MCY - news - people ) shares gained 43 cents to $45.25.
ALBANY — Gov. David A. Paterson will propose that private employers be required to offer health insurance to workers’ dependents who are ages 19 to 29, part of what the administration hopes will be a step toward universal health care coverage in New York. Mr. Paterson plans to call for the legislation during his State of the State address on Wednesday afternoon.
“This year, we will take another important step as we move toward increasing access to coverage for all New Yorkers,” Mr. Paterson said in a written statement on Tuesday.
Currently, employers are not required to offer health insurance to dependents who are older than 18 or, if they are in college, 22.
The proposal would amount to a wide expansion of coverage to some 800,000 people 19 to 29 years old who are uninsured. And it ties into a continuing initiative by Mr. Paterson, who is asking the State Legislature to approve deep cuts in spending this year, to enhance the kinds of social safety nets that are overwhelmed during an economic downturn.
According to the governor’s office, 31 percent of New York’s uninsured are ages 19 to 29. Many of them lose coverage once they graduate from college and remain uninsured until they are able to find a job that offers health insurance. But as the job market worsens, the state anticipates that the issue will become more pressing, with more and more young people unemployed and uninsured.
If the Legislature approves the proposal, the state expects that about 10 percent, or 80,000 people, will take advantage of it.
Paterson administration officials said that the plan would not cost the state or businesses anything. The only cost would be to families that chose to pay for the expanded coverage.
Kenneth Adams, president of the Business Council of New York State, a group that represents businesses across New York and was briefed on the plan by the governor’s advisers, called the proposal “compelling” and said that it would be especially critical given the economic climate.
“Out of the gate, a program that gets 80,000 New Yorkers health insurance is a good thing,” Mr. Adams said. “Considering where the economy is right now, and that by definition this is a tough period for this age group to obtain insurance, it is a very important issue.”
Mr. Paterson’s legislation would round out proposals to expand access to health care that he laid out in his budget for the 2009-10 fiscal year, which begins on April 1.
One proposal would simplify the application process for public health insurance programs by eliminating the requirement for face-to-face interviews, among other things. Another proposal would expand eligibility for the state’s Family Health Plus insurance program, which covers people who exceed the limits for Medicaid eligibility.
When the Jackson City Council meets this morning, members should reject the idea of donating an old police cruiser as an incentive for local high school students to stay in school and graduate. It's not that we have anything against providing incentives for students to finish high school. But this particular idea is a bad one for a number of reasons. This idea originated as part of the anti-crime task force report, which urged Jackson-Madison County Schools Superintendent Dr. Nancy Zambito and her staff to come up with incentives to help kids stay in school. The idea was that many habitual criminals are high school dropouts who have trouble finding work.
Under this proposal, the city would donate the 1992 Ford Crown Victoria. Automotive students from South Side would refurbish it, and it would be given away to a graduating senior in a drawing later this year
The proposal projects the wrong image to students. Stay in school, we'll give you an old police car. This particular car has a lot of wear on it - it's got 160,000 rough and tumble police miles. And high performance police cars aren't exactly known for their good gas mileage. Most old police cars are sold for well under $1,000 and for good reason. It's not a very reassuring message to send to students.
Another problem is that it takes control away from parents. Giving a teenager a car is serious business, one parents often worry about and want to be able to control. Then there is a issue of who will pay for car insurance, maintenance and other expenses. The student, maybe, if he or she has a job. Otherwise, those responsibilities could fall to the parents.
If school officials want to encourage students to stay in school there are better ways to do that. Some school systems just pay students for their attendance. Or, perhaps if school officials want to give away a car, they could take the sale proceeds from the police car and solicit additional support from local car dealers and other businesses to purchase a newer, more fuel-efficient car, and also cover some of the insurance and maintenance costs.
Offering incentives to help ensure students graduate from high school is not a bad idea. But this one deserves more thought by school officials. Instead of donating the used police car, the City Council should offer the money from the sale of the car.
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SAN FRANCISCO--(BUSINESS WIRE)--Civil Service Employees Insurance Group (CSE Insurance), a leader in providing civil service employees with quality protection at affordable rates, today announced the promotion of Kelli L. Schulhofer to Vice President of Sales from Regional Marketing Director.
In her new role, Ms. Schulhofer will be responsible for CSE’s overall agency field force and the company’s distribution network in Arizona, California and Nevada.
“Kelli has played a key role in helping our agents increase their sales production over the years,” said Pierre Bize, President and CEO of CSE Insurance. “Now, as CSE moves into its 60th year of operations, we expect that she will continue the positive momentum by gaining further sales successes and increased visibility for CSE.”
Ms. Schulhofer joined CSE Insurance in 1998 as a Senior Territorial Marketing Representative for the Los Angeles, San Bernardino, Ventura, Santa Barbara, and Bakersfield areas. She was promoted to Regional Marketing Manager for California in 2005, and named Regional Marketing Director for California in 2007. During her ten years with CSE, she has supervised marketing representatives in California, Arizona, and Nevada, and has managed advertising co-op programs and strategic marketing opportunities on behalf of CSE agents.
Prior to CSE, Ms. Schulhofer was Vice President of Insurance Operations for Coast Fed Services in West Hills, CA from 1995 to 1998. She also served as an Underwriter for Auto Insurance Specialists in Woodland Hills, CA from 1990 to 1995, and an Office Manager for Bohannan & Associates, Farmers Insurance Agency, in Van Nuys, CA from 1986 to 1990.
Ms. Schulhofer received a BA degree in Business Administration from Capella University in Minnesota. She has held a Licensed Property & Casualty since 1988, and a Licensed Life, Accident & Health Certificate since 1997 and Certificate in General Insurance since 2004.
A Chicago native, Ms. Schulhofer now resides in Santa Clarita, CA with her husband and two daughters. She has been a Girl Scout leader for seven years, and enjoys snow skiing. She is an avid sports enthusiast with a passion for the Chicago Bears.
About CSE Insurance
Founded by a civil service employee nearly 60 years ago, Civil Service Employees Insurance Group (CSE Insurance) serves the people who serve the people by providing top quality property and casualty insurance for teachers and other educators, firefighters, law enforcement personnel, and other government and civil service employees at affordable rates. Originally focused on promoting the interests and welfare of civil servants, CSE Insurance has also offered its products and services to the general public for two decades.
With a financial strength rating of A- (Excellent) by insurance industry analyst A. M. Best, CSE Insurance offers a wide range of insurance products, including auto, home, liability, boat, and commercial. CSE Insurance products are sold through independent insurance agents in California, Arizona, Nevada, and Utah, and also through www.cseinsurance.com.
The 2009 legislative session is unlikely to lift the state out of its rock-bottom national ranking in healthcare.
Texas has the highest rate of uninsured residents and spends the least per resident on healthcare — $2,141 compared with the national average of $3,508. The state is not impoverished, ranking 21st in per-capita income, and consistently has a lower unemployment rate than the nation.
Healthcare spending is simply not a priority.
But legislators can improve accessibility and affordability by exerting leadership.
Here are 10 suggestions.
Aggressively enroll eligible children in the Medicaid and Children’s Health Insurance Program (CHIP).
According to the Austin-based Center for Public Policy Priorities (CPPP), about half of uninsured children are eligible for these programs.
Extend children’s Medicaid eligibility from six to 12 months.
The 2007 Legislature extended CHIP enrollment to annual eligibility. Medicaid children deserve the same. When California extended Medicaid eligibility re-enrollment to 12 months in 2001, it saved an estimated $17 million when 3,000 fewer children were hospitalized for asthma, pneumonia and gastroenteritis, says a recent study in Medical Care.
Allow Texans to buy their way into the CHIP program.
According to CPPP, there are families who request pay cuts to enable their children to qualify for the program. Parents making up to $63,000 (more than current eligibility, 200 percent of the federal poverty level, or $42,400 for a family of four) should be able to sign up their children and pay a premium for coverage.
Make insurance companies accountable for their rates.
Texas premiums for family coverage increased 40 percent between 2001 and 2005 while income was up only 3.5 percent. But according to the Journal of Insurance Regulation, Texas is only one of 10 states that do not actively review health insurance rates. The Texas Department of Insurance is up for a sunset review, and lawmakers should use the opportunity to strengthen the department’s oversight.
Assist in forming risk pools to protect individuals and small businesses from unaffordable rates.
Other states have implemented reforms for reinsurance — or insurance for insurance companies — to lower rates, made high-risk pools more affordable for those with chronic conditions, and formed health insurance exchanges to assist in creating a larger risk pool and foster competition among insurance companies.
Improve the Texas Advance Directives Act.
A 2007 compromise bill that would have improved the 1999 version for disputes over end-of-life care failed primarily because the session ran out of time. The measure built more time and a swift legal appeal into the process and dictated better communication between the care providers and patient families. It deserved passage.
Keep the funds for trauma care where they belong.
Money designated for hospital trauma centers from the Driver Responsibility Program fines continues to be diverted for other uses. Trauma centers are only getting about half of the fines’ proceeds.
Implement a statewide smoking ban.
Cigarette smoking and obesity are the two most preventable causes of chronic disease and death. Smoking restrictions and excise taxes are the most effective means of decreasing smoking rates. The House passed an exception-laden ban in 2007 that deserved its legislative death.
Build on protections against "balance billing."
This hoary practice bills patients treated by physicians outside their insurer’s network for the portion the insurance company won’t pay. This is especially outrageous in emergency situations where the patient is in no condition to make informed choices. California and Illinois have taken measures to protect residents, and Texas should do the same. Lawmakers in 2007 passed requirements for disclosure of non-network practitioners, but they need to go further.
Increase healthcare access by increasing providers and broadening scope of practice.
The the state demographer reports Texas will need at least 40,000 new doctors by 2025 because of physician retirements and population growth. The Task Force on Access to Health Care in Texas recommends increasing the number of medical school graduates by 25 percent and dentists by 20 percent over the next decade. Physician assistants and nurse practitioners are increasingly important in rural areas, and staff most retail health clinics. Onerous physician oversight requirements handcuff too many opportunities to give basic care.
The Wall Street Journal More drivers are letting their car insurance lapse because of the sour economy, putting themselves and others at risk.
Several hundred thousand drivers dropped their insurance in the past year as the jobless rate climbed, estimates a study to be released soon by the Insurance Research Council, an industry-funded group.
Online agency Insurance.com says it also is seeing evidence recently of more uninsured motorists. It says that as many as 40 percent of callers following up on online applications had let their previous policies lapse, up from less than 10 percent a couple years ago.
* * Story: What to do after an accident * * Without a net
A slumping economy is putting more uninsured drivers on the road. Here’s how to protect yourself:
• Make sure you have extra coverage that compensates you if you’re hit by an uninsured motorist.
• Set your own liability insurance amount commensurate with your assets. This amount also helps determine the limit of your uninsured motorist coverage.
The trend is bad news for everybody on the road. If you’re hit by an uninsured motorist, you may have to sue to recover costs, and many uninsured motorists have few assets. You can protect yourself by carrying uninsured-motorist coverage — almost half of states require the added coverage — but this may boost your premium.
Even in good times, many Americans drive without insurance. The Insurance Research Council’s previous study, released in 2006, found that nearly 15 percent of drivers nationally were uninsured in 2004, up from about 13 percent in 1999. In some states, including Mississippi, California and Arizona, roughly a quarter of drivers weren’t insured.
Preliminary data from the council’s forthcoming study “indicate that a single percentage point increase in the unemployment rate is associated with a half-point increase in the percentage of uninsured drivers,” said David Corum, council vice president. The nation’s jobless rate was up two percentage points to 6.7 percent in November from a year earlier. The group estimates the number of uninsured motorists based on data from insurance claims.
Possibly adding to the problem is the fact that auto-insurance rates are rising again after a couple of years of flat or declining premiums. Premiums nationally rose 3.8 percent in November from a year ago, according to the Labor Department’s consumer price index.
Agents say a growing number of customers are stripping down their auto-insurance policies, taking the absolute minimum level of liability coverage legally required to drive in their state.
“A good proportion of people on the road are either uninsured or underinsured, and so you have to protect yourself,” said Robert Hartwig, president of the Insurance Information Institute, a nonprofit group. “Your odds of being in an accident with an uninsured driver are substantial.”
Motorists driving without insurance also face risks. In a wreck, they could lose whatever assets they own in a court judgment. Also, driving without insurance is illegal in 48 states and the District of Columbia. The only states that don’t require insurance are New Hampshire and Wisconsin; these states require drivers to show proof of the financial ability to pay damages for liability.
Motorists who allow their policies to lapse for any reason also often must pay an initial 25 percent to 50 percent surcharge for a new policy. Insurance companies charge them more because they consider them irresponsible: Unlicensed and uninsured drivers are disproportionately involved in fatal accidents.
Compare auto insurance quotes by going to an independent agent that will research quotes from different insurance carriers. Find out how an agent can help an automobile owner find the cheapest car
