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The rise in world food prices carries implications for both rich and poor countries – the latter will more fully feel the impact, as well as the insurance industry. The recent conference in Rome, organized by the UN’s Food and Agriculture Organization (FAO), “has warned industrialized countries that unless they increase yields, eliminate barriers and move food to where it is needed, a global catastrophe could result,” said an article on the Lloyd’s web site.UN Secretary General Ban Ki-moon told the conference that food production has to rise by 50 percent by 2030 to meet demand. Food costs have reached… Read More »Lloyd’s Analyzes Impact on Insurance of World Food Price Hikes

California lawmakers recently approved several insurance-related bills, addressing such topics as disaster response and automative repair following a crash. Following is a summary of recent legislation, as provided by the Association of California Insurance Companies. Assembly FloorAB 1848 (Ma) Income Tax Returns: Withholding. AB 1848 would require a business to impose backup withholding, at a rate of 7 percent, on any California business when payments to that business are subject to federal backup withholding. The bill passed the Assembly. The bill is awaiting assignment to a Senate committee. AB 2825 (Carter) Automotive Repair: Crash Parts. AB 2825 would require that… Read More »California Lawmakers Address Disaster Response, Automative Repair, and More

The California Department of Industrial Relations has launched an Insurance Coverage Program, an enforcement program designed to identify and target employers who fail to carry workers’ compensation insurance. DIR Director John C. Duncan said the program will help DIR “to systematically identify unlawfully uninsured employers to prioritize as enforcement targets.” “By partnering with other agencies we are leveraging our resources to seek out illegally operating employers and to level the playing field for those who follow the laws,” he said. Under California law, all employers are required to purchase workers’ compensation insurance or file a certificate to self-insure. The DIR’s… Read More »California Launches Workers’ Comp Enforcement Program

Roberto Ceniceros, businessinsurance.com 24-visit cap on chiropractic treatments for workers compensation injuries is constitutional, California state appeals court ruled Monday. The constitutional challenge to the limit on chiropractic treatments implemented as part of California’s 2003 workers comp reforms came in the case of Jose Facundo-Guerrero vs. Workers Compensation Appeals Board, Nurserymen’s Exchange et al. Mr. Facundo-Guerrero received 76 chiropractic treatments for an undisclosed injury while working for Nurserymen’s, which was insured by Argonaut Insurance Co., court records show. The Workers’ Compensation Appeals Board determined he was entitled to benefits for only 24 of the treatments. Mr. Facundo-Guerrero sought reconsideration on… Read More »Court: Chiropractic treatment cap constitutional

Following a meeting with his Advisory Task Force on Insurance Fraud, Blue Ribbon Review Committee, California Insurance Commissioner Steve Poizner announced that he will implement five actions to help reduce fraudulent claims, including creating a fusion center for insurance fraud investigations so law enforcement can share information more efficiently and quickly to identify emerging trends and crime patterns. “Insurance fraud is not a victimless crime,” said Commissioner Poizner. “The costs are passed onto consumers to the tune of $500 a year for every man, woman and child and that’s why I have made fighting insurance fraud one of my highest… Read More »California Report Details How to Reduce Fraudulent Insurance Claims

The notion that talking on a cell phone while driving a car isn’t safe seems obvious, yet what happens in the brain while it juggles the two tasks is not. A study by a University of South Carolina psychology researcher featured in the journal, Experimental Psychology, provides a better understanding of why language – talking and listening, including on a cell phone – interferes with visual tasks, such as driving.In two different experiments, associate professor of psychology Dr. Amit Almor found that planning to speak and speaking put far more demands on the brain’s resources than listening.“We measured their attention… Read More »Insurance and Cell Phone Driving. Why They Don’t Mix Together?

The California Assembly passed a bill that would help to clarify when an insurance professional is acting in the capacity of a broker versus an agent. The Assembly voted in favor of AB 2956 by a margin of 60-6. The measure now is in the Senate Rules Committee waiting to be assigned to the Senate Insurance Committee. AB 2956 will clarify the duties of an agent versus those of a broker. The bill would provide that an insurance agent is a person who transacts insurance other than life, disability or health insuranceon behalf of an admitted insurance company. The bill… Read More »California Assembly Passes Agent-Broker Bill

California’s Assembly Insurance Committee has passed Assembly Bill 2956 by a vote of 7-0, moving one step closer to codifying the traditional “totality of the circumstances” test for determining whether an insurance professional is acting as a broker or as an agent. The next step for AB 2956 will be a vote on the State Assembly floor. The deadline to move bills out of the Assembly is May 30. Debra Jackson, president of the Alliance of Insurance Agents and Brokers, explained that the bill is critical to the livelihood of independent broker-agents. “Current law does not establish clear distinctions between… Read More »California Assembly Insurance Committee Passes Agent-Broker Bill

Insurance Journal reports that California has a $1.6 trillion economy that ranks it as a global financial power, thanks in part to a multi-billion dollar boost from the insurance industry, according to a new report by the Insurance Information Institute of California. In 2004, insurers contributed $27.3 billion to California’s gross state product and accounted for 300,000 jobs in the state, IINC said. The report also indicated:• Property/casualty insurers provide approximately 300,000 jobs in California, accounting for $21 billion in compensation.• In 2005, property/casualty insurance claims payments totaled $28.8 billion in California.• California collected $2.2 billion in premium taxes in… Read More »Insurers Boost California Economy By $27.3 Billion

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