on 10:56 AM

Congressman Mike Ross Named BIG “I” Legislator Of The Year

The Independent Insurance Agents & Brokers of America (the Big “I”) recognized Rep. Mike Ross (D-Ark.) as the Gerald Solomon-IIABA Legislator of the Year for 2009. The award was presented yesterday during the annual Leadership Luncheon, just prior to the Big “I” Legislative Conference & Convention, and Rep. Ross presented the keynote address.

Rep. Ross chairs the Blue Dog Health Care Task Force and was instrumental in ensuring the House health care bill included independent insurance agents and brokers in proposed “exchanges.”

“We don’t need a 2000 page bill that nobody understands, including members of Congress,” said Rep. Ross. He also discussed three items he says need to be done in this area: 1) health insurance reform, 2) a way for the uninsured and small businesses to have access to health care, and 3) cost containment. Rep. Ross voted against the House bill and said, “The best thing we can do is start over.” The Big “I” supports this position.

His address also included discussion of the recent banking bailout, taxes, the number of bills with House passage that are currently pending before the Senate and the filibuster process in the Senate which he said stalls progress.

During the luncheon, he also announced that earlier that day he co-sponsored a Balanced Budget Constitutional amendment. He discussed the history of America’s debt, his hesitation to amend the nation’s founding document and said, “Folks, we’ve got to get this house back in order.”

“Rep. Ross is a true Blue Dog Democrat who practices what he preaches,” said Robert A. Rusbuldt, Big “I” president and CEO in presenting the award. “Mike is us. He’s a former independent agent from Arkansas and has a great background as an independent agent who knows the industry very well.”

The Legislator of the Year Award is bestowed annually by the Big “I” upon a member of Congress who has provided outstanding leadership on insurance issues. It is named as a tribute to the late Congressman Gerald Solomon (R-N.Y.), the former House Rules Committee chairman and Big “I” member who championed independent agent and broker legislative concerns during his 20 years in the U.S. House of Representatives.

Rep. Mike Ross (D-Ark.) serves on the powerful House Committee on Energy and Commerce (including the Energy, Health and Oversight and Investigations Subcommittees) and the House Foreign Affairs Committee. Viewed as a rising star, his leadership skills and workhorse approach have been hailed in Washington and by his party since he was first elected to Congress in 2000. Ross is in his fifth term and represents the Natural State’s fourth congressional district, which includes the southern region of the state. Rep. Ross is a former insurance agent and Big “I” member.

The event took place at the U.S. Capitol Visitor Center and attendees included Big “I” executive and government affairs committee members, agents and brokers from Rep. Ross’s home state of Arkansas and other industry leaders.

The Big “I” Legislative Conference and Convention will take place March 3-5 at the Marriott Wardman Park Hotel in Washington, D.C. Highlights will include in-depth issues briefing sessions; appearances by numerous high-profile speakers discussing important insurance and national issues confronting lawmakers as well as agents and brokers; a CEO panel comprised of top carrier presidents & CEOs (CNA, The Hartford, Fireman’s Fund and Safeco will participate) and hundreds of meetings on Capitol Hill between Big “I” agents and brokers and their elected representatives in the Congress.

For registration and hotel information, go to www.independentagent.com and select the “Events and Conferences” link. Journalists interested in attending should contact Margarita Tapia, director of public affairs, at (800) 221-7917 or margarita.tapia@iiaba.net for media registration.

Founded in 1896, the Big “I” is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of more than 300,000 agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life, health, employee benefit plans and retirement products. Web address:www.independentagent.com.

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on 10:52 AM

Rate Oversight Important Step In Addressing Rising Health Care Costs

WASHINGTON, D.C.Members of the National Association of Insurance Commissioners (NAIC) met today with President Barack Obama and Health and Human Services Secretary Kathleen Sebelius to discuss rate increases in the health insurance industry. The meeting, which also included top health insurance executives, was called to address recent significant rate increases as part of a larger discussion on how to improve health insurance markets for all consumers.

State regulators stressed the importance of thorough and objective rate review, adding that premium increases must be actuarially justified without discriminating unfairly against any groups of policyholders.

“State regulators are best positioned to perform rate review and many of us do so with great success,” said Jane L. Cline, NAIC President and West Virginia Insurance Commissioner. “Some, however, have not been given the authority by their state legislatures to review and deny unjustified increases. We believe that a federal backstop could help encourage these legislatures to provide that authority.”

“It is absolutely critical that the state role in assuring the solvency of health plans and promoting competitive markets be preserved,” said Sandy Praeger, Chair of the NAIC Health Insurance and Managed Care Committee and Kansas Insurance Commissioner. “Protecting consumers from high premiums remains a priority, but it is even more important to protect them from insolvency.”
Vice-Chair of the NAIC Health Insurance and Managed Care Committee and Pennsylvania Insurance Commissioner Joel Ario pressed insurers to support reforms that would reduce the fragmentation of health insurance pools. “One problem with premium increases is that rates go up a lot more for some people than for others,” he said, noting that premiums in a reformed marketplace would be more stable for all Americans.

Today’s discussion was part of a broader call for the stabilization of the markets. Key provisions of the President’s proposal and the bills in Congress would promote this stability by ending discrimination based upon health status, pooling risk more broadly, bringing everyone into the market and ensuring that most of the premium dollar goes to paying claims.

About the NAIC

Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.

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on 10:51 AM

Consumers’ Interest in Guaranteed Living Benefits Remains Strong in 2009, LIMRA reports

WINDSOR, Conn, March 5, 2010—The rate of election for guaranteed living benefits (GLBs), when offered in a variable annuity (VA), was 84 percent, in the fourth quarter of 2009, according to LIMRA’s annuity study.

After four consecutive quarters at 89 percent or higher, overall election rates dipped because of a decline of the election of the guaranteed living withdrawal (GLWB) rider, although the GLWB market share remained high.

“Especially in this shaky economy, consumers are choosing security through GLBs,” said Dan Beatrice, senior analyst, LIMRA Retirement Research. “Despite companies’ efforts to de-risk benefit riders, lowering their comparative attractiveness, 80 percent of new VA sales premium during the year went into contracts in which a GLB was elected.”

GLBs were elected in contracts representing $18.2 billion of new deferred variable annuity (VA) premium in the fourth quarter.

When a GLB was elected in the fourth quarter of 2009, nearly three-quarters of sales premiums went into contracts in which a GLWB rider was elected. GLWB asset growth has outpaced the other types of living benefits and by the end of 2009 comprised nearly half of all VA assets with a GLB.

VA assets with GLBs attached increased 41 percent from $292 billion at the beginning of 2009 to $411 billion at the end of 2009, while total VA assets increased 21 percent from $1.151 trillion to $1.389 trillion during the same period. The reason why 2009 growth of VA assets with GLBs attached have exceeded non-GLB asset growth is primarily the high election rates by buyers in new VA purchases. In addition, a high proportion of VA contracts with GLBs are still within their surrender charge period, which would serve as a disincentive to surrender the contract. Older contracts that have low or no surrender charges tend not to have GLBs.

The 26 survey participants represent 95 percent of fourth quarter 2009 industry sales in which a GLB was elected, in 188 variable annuity contracts that offered a GLB.

LIMRA Contacts:
Donna G. Sullivan, 860-285-7875, dsullivan@limra.com
Catherine Theroux, 860-285-7787, ctheroux@limra.com

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on 10:50 AM