A co-worker asked a slightly humorous — but equally disturbing question — regarding the reported potential takeover of parts of AIG by the federal government: “Are we becoming the United States of Soviet Republics (USSR)?”

According to various reports, and this one from the Associated Press, the United States may take control of three units of AIG in exchange for “forgiving” the payback of some of its recent bailout. One of those units include its Asia operations.

Also big on the speculation scene is a potential “nationalization” of major U.S. banks. Substitute the word “socialization” for nationalization, and the scenario is troubling, hence my co-workers comments.

For those of us old enough to understand the potatoes and vodka reference in this blog’s headline, the implications should make us shudder.

I am not trying to be an alarmist, but government control of our industry, our insurance companies, and out banks could lead our country down a road that is better left unexplored. Who ever thought that a group of ragtag foreigners could bring down both buildings of the World Trade Center in less than two hours; should we as Americans remain silent when we see major issues that could have potential dire consequences for future generations, not to mention our own?

An email found its way into my Inbox from an insurance agent who apparently is out of the office and has set up an auto-response for clients who email. Here’s exactly what was written, excluding the person he suggests people contact in his absence and the obligatory can’t bind, amend policies with an email language:

“Everything I read says that the hard market is coming. Well guess what, I don’t see it. I know March is a busy month, but everyone wants reductions still. How am I going to keep my contract profitable if everyone wants us to lower premiums for the 5th straight year? I am going to be out until Monday March 2nd, 2009 pondering this and other very important questions.

“Please Send this out of office reply to every one you know and it will bring you good luck. One person recently sent this out of office reply to everyone they new and got a renewal order at 20% higher then the expiring premium. (Granted it had a 80% loss ratio, but still) hard markets are contagious, pass it on.”

There’s no way of knowing if the agent received it from another agent. There’s also no way of knowing if it works. Email me if it works for you. But one thing is clear: The economy and lagging insurance industry is causing people to look at any and all options to build their books of business, even chain emails about insurance.

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It wasn’t a “sleeper hold,” but rather a holding cell, that professional wrestler Michael “Mike” Taris found himself in after being charged with insurance fraud by the Pennsylvania attorney general, reports IFAwebnews.com.

According to various wrestling websites, Taris goes by several names, including Mr. Motion and Shane Taylor. Given that his diverse occupations include that of male escort and massage therapist, it is not known whether he will add the name Mr. Gigolo to his resume.

Perhaps the wrestlers of today are not as bright as those from the days of my youth, when we had such memorable characters as George “The Animal” Steele, a lovable oaf of a giant who used to utter one-word phrases and tear the stuffing out of turnbuckles with his teeth. Steele (whose real name is Jim Myers) had both an undergraduate and a Masters degree from Michigan State and Central Michigan, respectively.

In his first remarks to a joint session of Congress in a pseudo-State of the Union address, President Obama vowed that health care reform would come within a year, but provided few details, according to a Reuters news article.

CNN reports that the president did, however, place preventive care at the forefront of a promised reform in American health care, and touted extensive changes his administration has made to COBRA that force employer action as early as March 1. Read the rest of this entry »

American International Group Inc. is asking the federal government to lessen the insurer’s bailout burden, according to an article in the Wall Street Journal. Yes, that burden. The one where we loaned it $150 billion - yes, letter “b,” followed by “illion.” But that was a long time ago. It was last September, when the stock market was still topping 10,000 and many more of us not only had jobs, but lacked any serious fear for their workplace survival. Funny how those times seem good now.
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The Atlanta Braves are taking part of their spring training focus off the baseball diamond and into a courtroom.

The Atlanta Journal-Constitution says the team is suing the Hartford Life Insurance Co. for $4.82 million over ex-Brave Mike Hampton, who spent more time on the bench than on the pitching rubber for the team.

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Employers with 20 or more full-time (or full-time equivalent) employees face a slew of new regulations regarding COBRA, thanks to new provisions in the economic stimulus legislation signed by President Obama on February 17.

Some of these changes are huge, including subsidy payments the government will force employers to pay. Other provisions could require major time and capital expenditures on the part of employers. But more important is that some of the changes are happening NOW, meaning employers had better get moving in order to comply. Health insurance agents with commercial clients would do well to get this information to those clients.

HRS/TND Associates, a Pennsylvania-based human resources consulting firm, did a good job in summarizing the requirements. Click here to see their fact sheet, which includes some important tax information.

Kansas Governor, and former insurance commissioner, Kathleen Sebelius is the “top choice” for the next secretary of health and human services, according to a report in the New York Times.

The report says advisors to President Barack Obama have tabbed the governor as their top candidate after the failed nomination of former senator Tom Daschle, who backed out due to tax issues.

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Two U.S. senators are poised to introduce legislation that would effectively do away with the state-based system of insurance regulation. Read the rest of this entry »

New York Attorney General Andrew Cuomo is continuing his “Let’s Make a Deal” health insurance reform game, linking up with a new national and local insurer seemingly every day over the controversial Ingenix database.

If you’re scoring at home, Cuomo has secured commitments from six companies to ditch the out-of-network reimbursement tool and kick in $90 million toward the creation of a new one. And the AG has put two other local insurers on notice to either get on the bandwagon or get run over by a lawsuit.

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The simmering debate over how to regulate insurance in this post-AIG bailout 1, 2 and 3, Bernie Madoff scandal and “will-I-have-enough-to-retire-in-20-years? world appears to have taken yet another turn, according to an article at IFAwebnews.com.

A consumer group, Consumer Watchdog, is calling the proposed optional federal charter the equivalent of no regulation at all. The group argues that if you give the insurers a choice between state and federal regulation, they will select the path of least resistance. Put another way, they’ll go to the regulator that provides them the best result. Who wouldn’t?

It’s a good argument against an OFC.

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NAHU (National Association of Health Underwriters) is asking members — and one would assume all health insurance agents — to take action to encourage legislators to pass a version of the national economic stimulus package that is more favorable to the health insurance industry. Read the rest of this entry »

State regulation of insurance works. From a consumer standpoint, Americans can contact their local insurance department, and resolve issues from the “Main Street” level.

But there are some — including the trade association National Association of Insurance and Financial Advisors (NAIFA) — who want to create a quasi-federal/state regulatory system. Read the rest of this entry »

President Barack Obama will need a new leader in the fight to reform health care in America.

Former Sen. Tom Daschle has withdrawn his nomination as the country’s next secretary of health and human services, one of the first posts picked by the Obama Administration.
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California Insurance Commissioner Steve Poizner is cutting the insurance license renewal fee charged to the state’s 300,000 insurance agents, brokers and adjusters.

The fee will drop from $144 to $135, cutting $3.5 million in fees collected, beginning July 1. Poizner, who took office in January 2007, said he wants to help the many small business owners who sell insurance in these recession-weary days.

In California, the insurance commissioner is empowered, without legislative approval, to raise or lower fees by as much as 10%, which is what Poizner’s predecessors did in 1999, 2002 and 2004. A 5% increase occurred in 2002.

Other states’ insurance commissioners should attempt to match or exceed Poizner’s cuts as a show of understanding and appreciation of the challenges facing many insurance agents, brokers and agency owners. If it requires legislative approval in some states, then insurance commissioners should lead that charge as well.