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The AIG Companies introduced Global Supply Secure, insurance that helps mitigate the financial impact of supply chain disruptions. Jointly developed with Marsh, Global Supply Secure will be underwritten domestically by Lexington Insurance Company, a unit of AIG Commercial Insurance, and overseas by American International Underwriters (AIU), AIG’s foreign general insurance operations. Global Supply Secure is enhanced contingent business interruption coverage (CBI) that responds to potentially disruptive events within an insured’s supply chain generally not included in a CBI cover, including: strike, political risks such as expropriation and imposition of import/export restrictions, insolvency of a named supplier, service interruption, government investigation,… Read More »AIG Cos. Introduces Global Supply Chain Distruption Coverage

California’s Division of Workers’ Compensation has adopted revised ethics regulations governing workers’ compensation judges. According to the DWC, the rules and regulations “are designed to enforce the highest ethical standards among workers’ compensation administrative law judges and to provide all parties with an independent, impartial investigation into allegations of ethics violations by workers’ compensation administrative law judges.” Among other things, the rules address gifts, travel, honoraria, disclosure obligations, grounds for disqualification, restrictions on investments, and investigations. For more information, visithttp://www.dir.ca.gov/dwc/DWCPropRegs/Ethics_Regulations/Ethics_RegsFinalCleanCopy.pdf.

A federal judge ruled that 14 workers who accused their former employer of wrongfully telling them they must resign or retire to access their 401(k) plan accounts are not owed any back pay or benefits. The ruling in Harris vs. Finch, Pruyn & Co. Inc. stems from a July 2005 complaint alleging several breaches of fiduciary duty by paper company Finch, Pruyn & Co. under the Employee Retirement Income Security Act of 1974 as well as reinstatement. The plaintiffs went on strike against Glens Falls, N.Y.-based employer from June 2001 through November 2001 and were not reinstated when the strike ended because… Read More »Workers Not Entitled to Back Pay Under ERISA

Nearly half of U.S. workers were absent from work at least once in the past six months, but a trend of greater concern was the number of ill or otherwise distracted workers going to work and not being able to perform up to expectations, according to a recent survey by CIGNA Corp. On average, surveyed individuals admitted to spending between two-and-a-half and five hours per week resolving personal issues at work, CIGNA found. Further, 61% of the respondents said they went to work even though they were sick or dealing with a family or personal issue that had negative effects… Read More »Employers Face Worker ‘Presenteeism’

A bill adopted by California legislators on Saturday would double workers compensation permanent disability benefits over three years. Senate Bill 1717, opposed by employers and sponsored by Sen. Don Perata, D-Oakland, would double benefit payments by increasing the number of weeks injured workers receive benefits. Gov. Arnold Schwarzenegger has not yet said whether he will sign or veto S.B. 1717, which is among several workers comp bills passed by legislators. S.B. 1115, for instance, would prohibit discrimination on the basis of race, religion, age, or gender when apportioning medical causation to determine an employer’s liability for permanent disability injuries. Employer… Read More »Calif. Bill Would Increase Comp Benefits

American International Group Inc. sees China becoming a much larger part of its general insurance business within the next five years, Nicholas Walsh, executive vice-president of the foreign general insurance division, said on Wednesday. Mr. Walsh, a 35-year veteran of the giant insurance company, said he expects a rapid ramp-up of AIG’s business in the world’s most populous country once some key regulatory approvals are in hand, in the next year or so. “Just by following the Chinese economy, I think there is enormous opportunity for anyone who has products to sell,” said Mr. Walsh, speaking to investors at an… Read More »AIG Sees China General Insurance Business Growing

San Francisco regulators have provided further guidance on how to comply with a controversial ordinance that imposes a health care spending requirement on employers. The latest guidance, which was issued in response to questions from employers, clarifies how much employees must earn in order for them to qualify as exempt employees, for whom employers do not have to make the required contributions. Under the law, which was passed in 2006, employers with at least 100 employees must make in 2008 a health care contribution of $1.76 per hour per covered employee, while employers with between 20 and 99 employees must… Read More »S.F. Clarifies Health Care Spending Rules

A commercial liability insurer must defend any claim of physical property damage that occurs during the policy term regardless of when the damage is actually discovered, the Texas Supreme Court ruled last week in a construction defect case on appeal in the 5th U.S. Circuit Court of Appeals. The federal appeals court asked the Texas Supreme Court to define when property damage occurs under Texas law for purposes of an occurrence-based commercial general liability insurance policy. The court also was asked to determine whether an insurer’s duty to defend is triggered when damage is alleged to have occurred during the… Read More »CGL Policy Covers Damage Found After Term

Where do Coloradans spend their insurance dollars? During 2007, Colorado citizens paid over 26 billion dollars in premium to approximately 1,306 companies, with 27 companies accounting for more than 50 percent of that total, according to the Colorado Insurance Industry Statistical Report (for 2007) released by the Colorado Division of Insurance. The report reflects some interesting statistics: Although carrying automobile insurance is mandatory, and purchasing health insurance is not, Coloradans spent more in 2007 on accident and health insurance premiums, which represent 33 percent of the total insurance premiums paid in Colorado. Behind accident and health totals, the second largest premium volume… Read More »Coloradans Spent $26 Billion in Insurance Premiums in 2007

North Carolina’s Supreme Court ruled Wednesday that an employer does not have to include contributions to employee retirement accounts when calculating a workers compensation average weekly wage benefit award. The decision in Curry Shaw vs. U.S. Airways Inc. stems from a back injury Mr. Shaw suffered in 2000 while lifting luggage, court records state. The employer and its insurer, American Protection Insurance Co., admitted Mr. Shaw was entitled to workers comp benefits and calculated his average weekly wage to be $826. But that amount excluded the employer’s contributions to a pension plan and a savings plan. Including those contributions would have raised… Read More »Workers Comp. Calculations Need Not Include Benefits