Friday, November 30, 2012

Daily Headlines: Friday, November 30, 2012

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Insurance Journal Daily Headlines
November 30, 2012
News By Region  National  International  East  Midwest  Southeast  South Central  West Video

Today's Headlines

National

U.S. Regulators Urge Flexibility in Basel III Rules for Banks, Insurers

U.S. lawmakers and state financial regulators on Thursday called on federal officials to revamp proposed rules that would force financial ...

Congressional Leaders Push to Pass Farm, Crop Insurance Bill

With time running out, agricultural leaders in Congress vowed on Thursday to do everything they can to pass a farm bill that cuts spending ...

Hurricane Center Seeks to Improve Storm Surge Warnings

Friday marks the end of an Atlantic-Caribbean hurricane season where the greatest devastation was caused by water rather than wind, U.S. ...

Ratings Recap: Zurich America, Prism, FAIRCO, American Standard

A.M. Best Co. has affirmed the financial strength rating of 'A+' (Superior) and issuer credit ratings (ICR) of "aa-" of Illinois-based ...

Willis Launches WillisCaptus, New RRG Data Management System

Willis Global Captive Practice, part of the global insurance broker Willis Group Holdings has launched an online underwriting and data ...

Lynch Named Kemper P&C Group Executive; Schulte Resigns

Kemper Corp. announced that Denise I. Lynch has been named property/casualty group executive effective Dec. 1. She will report directly to ...

From MyNewMarkets.com Torus Survey: Top Issues in Management Liability & Professional Lines Market

A recent survey* undertaken by global specialty insurer Torus has highlighted a myriad of current issues facing the management liability and...
Sponsored by: MyNewMarkets.com. Need a Market? Find It. Fast! Click here for more information.
East

New York Gov. Cuomo Orders Insurers to Speed Up Sandy Claims

New York Governor Andrew Cuomo on Thursday imposed emergency regulations on insurers to speed the processing of claims from hundreds of ...

U.S. Judge Allows Civil Suits in Meningitis Outbreak to Proceed

A federal judge in Boston on Wednesday allowed civil suits against the pharmacy at the heart of the deadly U.S. meningitis outbreak to ...

Penn.-Based W.N. Tuscano Buys Special Risk Solutions From Utica Mutual

W. N. Tuscano Agency, a wholesale broker located in Greensburg, Penn., acquired Special Risk Solutions Inc. (SRS), the brokerage division ...

GMI in Pennsylvania Launches Norman Specialty Insurance Group

GMI Insurance -- a Valley Forge, Penn.-based managing general agent for transportation insurance nationwide -- announced the launch of ...

Lockton Expands Philadelphia Office, Hires 2 Vice Presidents

Lockton, the world's largest privately held independent insurance brokerage firm, expanded its Philadelphia regional operation with the ...

Heffernan's N.Y. Branch Names Director of Commercial Lines & Marketing

California-based Heffernan Insurance Brokers recently hired Jason C. Cavallo to join its New York office as director of commercial lines ...

N.Y. Law Firm Nelson Levine Hires 2 Attorneys From Harleysville, MetLife

Targeting strategic expansion, Nelson Levine de Luca & Hamilton, a New York-headquartered national law firm serving the insurance industry, ...

N.Y. High Court Says Affair Is Medical Malpractice

New York's highest court says it was medical malpractice for a Long Island family doctor to have an affair a married patient he treated for ...
Errors and Omissions Fraud Detection 2-part series: New class from Academy of Insurance
Midwest

Socius Insurance Services Hires Zaroski as VP in Chicago

Socius Insurance Services Inc., a management liability and property/casualty insurance wholesaler, has hired Laura Zaroski as vice ...

Study Finds Gary, Indiana, Nation's Most 'Underpoliced' City

Gary, Ind., is the most "underpoliced" city in the nation, a new study released this month shows. "Over a quarter of people's income is ...

Texting Driver Gets Prison in Ohio Fatal Crash

An Ohio driver distracted by a text message when he caused a fatal crash has been sentenced to nearly five years in prison. A judge in ...
Insurance Journal's 2013 Insurance Industry Events Calendar - Submit your event!
Southeast

Hackers Steal South Carolina Insurance Agency Funds

A business in Hickory reports thousands of dollars were taken after a hacker got into a computer system. The Hickory Daily Record reported ...

West Virginia Mine Blast Probe Widens, Top Executives Could Be Next

Federal prosecutors investigating the West Virginia mine explosion that killed 29 men have widened their net, filing criminal charges ...
South Central

Surplus Lines Premium on the Rise in Texas

The amount of surplus lines insurance premium written in Texas rose by 25 percent as of the end of October compared with the same period ...

BP: Many Settlement Opt-Out Requests Weren't Valid

Only about half the businesses and individuals who asked to be excluded from a proposed settlement over BP's 2010 oil spill submitted valid ...

Kingsway Startup to Sell Homeowners Insurance in Louisiana

Kingsway Financial Services Inc. announced it has completed the formation Maison Insurance Co. (Maison), a property/casualty insurance ...
West

Lawsuit: Fedex Fires Utah Driver Over Russian Accent

A Utah truck driver alleges FedEx fired him because of his Russian accent, even though he offered to appear before corporate higher-ups to ...

Brewer Rejects State-Run Health Exchange for Arizona

Arizona Gov. Jan Brewer has decided against creating a state-run health insurance exchange to implement a key part of President Barack ...

Pregnant Waitress Wins Settlement From Arizona Bar

A Peoria, Ariz. restaurant and bar must pay $15,000 to a former waitress who was moved from Sunday shifts because its management thought ...

Hull & Company Opens New Marine Department

Hull & Company has now opened a new marine department at its Stockton, Calif. location and has appointed marine risk specialist Quincy M. ...

Gone Fishin': California Agency Owner Sells to Specialize in Outiftters

Trinity Insurance Services Inc. has been purchased by McNeil & Company Inc. Insurance Risk Services out of New York in a move that gives ...

California Department Insurance: Streamlined Licensing

The California Department of Insurance announced a new process for professionals submitting insurance agent, broker, adjuster and bail ...
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International

French Court Clears Continental of Criminal Liability for 2000 Concorde Crash

Continental Airlines was cleared on Thursday of criminal responsibility for the Concorde crash in Paris in 2000 that killed 113 people, ...

S&P Report: Reinsurers Discuss Industry Lessons Learned From Hurricane Sandy

A recent report, "Reinsurance Industry Leaders Discuss Lessons Learned From Hurricane Sandy," published Nov. 29, 2012, on RatingsDirect, ...

Willis North America to Acquire Canadian Benefits Broker Avalon Actuarial

Willis North America, a unit of Willis Group Holdings, announced that it has entered into a definitive agreement to acquire the assets of ...

Euler Hermes and MAPFRE Form 'Solunion'; a New Credit Insurance Venture

Euler Hermes and MAPFRE jointly announced the launch of "Solunion"- the brand name of their new credit insurance joint venture in Spain and ...

Carr Joins Mitsui Sumitomo at Lloyd's to Expand Marine Liability Market

Mitsui Sumitomo at Lloyd's announced the appointment of Darren Carr as Class Underwriter for its marine liability underwriting account in a ...

Ratings Recap: Mansard, Custodian & Allied, Ability Re, TATIL

A.M. Best Europe - Rating Services Limited has affirmed the financial strength rating of 'B' (Fair) and issuer credit rating of "bb+" of ...

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Rate Changes Coming to Healthy Railroad Industry

At one time it seemed that the railroad industry was doomed, but thanks in part to the...
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Effects of Worldwide Economic Instability on American Companies

Despite a slightly improved economy here in the U.S., the global economy is not out of the...

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New Discussions in the Forums

Small agency looking for personal lines carrier
Posted: Fri Nov 30 -- We are a small insurance agency looking to get back into personal lines P&C after 6 years out of the business. Does anyone know of a carrier... msidden
Freight Forwarding in Ca
Posted: Thu Nov 29 -- Sounds like your applicant requires a BMC-84 Property Bond ($10,000) to be filed with the FMCSA. Additionally this would dictate broker's... Miguelito
Tower Erection Contractor
Posted: Wed Nov 28 -- Thanks bkrigsman! I appreciate the response! Halpert
Exotic car, bad driver!!
Posted: Wed Nov 28 -- How does an exotic car repair shop get onto the list of available repair shops for an insurance company? autorepairframingham
Amerisure Mutual
Posted: Mon Nov 26 -- We don't know of any MGA's with Amerisure. But we and other retail agents have access. Perhaps you can broker a deal with a retail agent.... bkrigsman
Attorney considering CPCU- thoughts?
Posted: Wed Nov 21 -- I think it's always wise to think ahead and be prepared for multiple opportunities and interests which may come along. I have several... InsuranceVet
Benelect wrap around plans
Posted: Tue Nov 20 -- We are looking to place one of our group health accounts with Benelect which is a wrap around plan. I wanted to see if anyone else has used... JAM

Reader Comments

High-Security Driver's License Runs Into Opposition in States
Posted: Tue Nov 27 -- Call me crazy, but I'd way rather see us not borrow another $11,000,000,000.00 to implement easily hackable chipped ID cards (and black and... ExciteBiker
Investigation Ongoing in Huge Texas Highway Wreck
Posted: Mon Nov 26 -- What's amazing is that pileups like this don't happen every 10 minutes, since nowadays the typical interstate highway is a never-ending... Roland
Monsters Under the Bed: Insurance Coverage Gaps and Other Invisible Exclusions
Posted: Wed Nov 28 -- this should have been labled as "very slanted opinion piece" instead of letting us assume it might be a "news article". sos, IJ must have... bob
Indiana Truck Driver Logs 3 Million Miles of Safety
Posted: Thu Nov 29 -- Congratulations and thanks to Mr. Batt. It is a wonderful milestone. So many drivers think only of themselves and where they want to go or... v
Oklahoma Judge: Hobby Lobby Must Offer Morning-After Pill
Posted: Mon Nov 26 -- Chrisitan Scientists are against healthcare of any kind. Having healthcare coverage of any kind is a violation of their reigious freedom.... Don't Call Me Shirley

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November 19, 2012
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Prajna Capital

Prajna Capital


New KYC Norms for Mutual Funds from December 2012

Posted: 29 Nov 2012 10:00 PM PST

All Mutual Funds have implemented uniform KYC (Know Your Customer) norms in accordance with the SEBI Circular pertaining to the same.

An existing investor who has not submitted the KYC norms shall have to submit the same along with the necessary documents at any of the SEBI registered intermediaries. In Person Verification will be necessary at the time of submission.
 

The above formalities have to be mandatorily completed by November 30, 2012 before making any new investments.

 

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

 

 

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan  Invest Online
  2. HDFC TaxSaver   Invest Online
  3. DSP BlackRock Tax Saver Fund   Invest Online
  4. Reliance Tax Saver (ELSS) Fund   Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund  Invest Online
  7. SBI Magnum Tax Gain Scheme 1993   Invest Online
  8. Sundaram Tax Saver   Invest Online
  9. Edelweiss ELSS Invest Online

 

UTI MF dividend

Posted: 29 Nov 2012 08:55 PM PST

UTI Mutual Fund has announced the entire distributable surplus as dividend under the dividend option of UTI fixed income fund interval fund -monthly interval plan II.


Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online


    ----------------------------------------

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

Best Performing Mutual Funds

    1. Largecap FundsInvest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap FundsInvest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap FundsInvest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap FundsInvest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector FundsInvest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Investing in company FDs

Posted: 29 Nov 2012 06:52 PM PST

Choose an instrument that carries AA or higher rating

THE interest rates on bank fixed deposits (FDs) are falling. While most top banks are offering an interest rate between 7 and 8.75 per cent for deposits below Rs 15 lakh with one-year maturity, company deposits of various housing finance companies (HFCs) and non-banking finance companies (NBFCs) on the other hand are offering more than 9 to 10 per cent.


For maturity period of two to five years, the company FDs are offering yields of 10.23-13.36 per cent.
 
Although the return may be high, company FDs are more risky and unsecured (not secured against a collateral), compared with bank FDs. In case a company goes kaput, you will not get your money back. Also, remember that fixed deposits of all banks (including foreign banks, regional rural banks and co-operative banks) are insured up to Rs 1 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC) against default of banks due to liquidation, cancellation of banking licence or merger. There is no such guarantee on company FDs.
 
Here are a few factors you should consider before investing in a company FD:
 

Check the financials of the company: Since, economic slowdown is affecting several companies, it is advisable to invest in reputed and strong firms. Check the credentials and financials of the company in which you are investing. A strong company that regularly pays out dividends and has no losses, would be safer than a company that offers very high interest rate but is posting regular losses. The key factors to look into would be profits, growth, capital adequacy, non-performing assets and a low debt to equity ratio.


Check the ratings: The rating of such instruments can help you make an informed choice. Says Surya Bhatia, a certified financial planner, Choose a deposit that carries a AA or a higher rating. Those company FDs that do not carry a rating, are riskier and have a high chance of defaulting on interest and principal repayment. But the flip side is that the returns on higher-rated FDs are considerably lower than those for lower-rated FDs.


Invest for a shorter horizon: It is advisable to minimise your risk by investing in multiple corporate deposits. Also, choose a shorter tenure of say one or two years, to reduce your risk further.


Liquidity problem: Since most company FDs do not allow premature withdrawal of your principal, you will not be able to break the FD before maturity. Also, some companies may deduct the brokerage paid to distributors from the premature withdrawal amount.


Tax deducted at source (TDS): TDS will be deducted if the interest on a company FD exceeds Rs 5,000 in a financial year. Therefore, spread your investments in multiple FDs if your interest is going to be more than Rs 5,000 from one FD. Also, calculate the post-tax return before investing.
 
A pursuit of higher returns from company FDs comes with risks that are not commensurate with the extra post-tax return you will get from it, compared with the slightly-lower posttax returns from bank FDs and debt schemes of mutual funds. So, be a bit wary.
 

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online