Jackson report will cause surge of spurious claims
Posted on January 22nd, 2010
Specialist legal expenses provider ARAG has warned that access to justice will be damaged and frivolous claims will surge due to one way cost-shifting and the abolition of ATE insurance and Success Fee.
Business development and marketing director Paul Hurley has said that the have-a-go culture will be encouraged by shifting costs as the client stands to lose nothing.
Hurley warned that liability insurers would be flooded with claims, and that this would negatively affect the timescales in Ministry of Justice reforms due to be implemented in April.
He went on to state his disappointment with LJ Jackson, who failed to fully engage with ATE providers.
Following the withdrawal of Legal Aid, many insurers who filled the gap went bust or incurred substantial losses and withdrew from the ATE market.
Hurley criticised the understanding of the LEI market and the assertion that ATE insurance adds greatly to the cost of litigation, and called on the views of members of the LEI market to be taken into consideration.
He also warned of a declining uptake of BTE Insurance as gross premiums rise and fewer people opt for the coverage.
ARAG has said it would be a brave government that adopts these proposals, and cited previous government support for and backing of ATE Insurance.
Tags: Claims
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Top 5 Life Insurance Scams
Posted on January 21st, 2010
Life insurance is touted as a smart purchase for those wanting peace of mind regarding estate planning. Unfortunately, there are predators using the system to conduct life insurance fraud on unsuspecting victims. Annually, insurance fraud costs Americans at least $80 billion, so let’s take a look at how these scammers are stealing our money.
Common Fraud Practices
Some of the most common life insurance scams include:
1.) Stranger-Owned Life Insurance: Wall Street is notorious for creative investment options and life insurance policies are their newest invention.
Tags: Insurance, Life Insurance
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How to Effectively Swap Your Timeshare
Posted on January 20th, 2010
If you own a timeshare and are interested in a timeshare swap, there are a few things to bear in mind to accomplish this effectively. A timeshare in one part of the world can be exchanged for a timeshare in another part of the world, which would allow you the ability to vacation around the world.
- Decide when your timeshare is available for a swap, and when and where you wish to take your vacation.
- In order to accomplish your timeshare swap, it is probably easiest to join a timeshare exchange network, and list your timeshare and the dates it is available.
Tags: Swap Timeshare, Timeshare
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Massachusetts Senate Race Has Democrats Scrambling To Finish Health Care Reconciliation
Posted on January 19th, 2010
The upcoming special election to fill the late Ted Kennedy’s seat in the Senate has Democratic leaders scrambling to reconcile the health care reform bill. While Democratic candidate Martha Coakly is ahead in the polls, the gap has shrunken in recent weeks and if Republican Scott Brown wins in next week’s election, Democrats would lose the 60th vote they need to bypass a filibuster.
Unless Democrats in the House and the Senate can come to an agreement soon, it may mean the end to the Obama administration’s goal of sweeping health care reform. The race in Massachusetts in ironic in a sense that it is the only state in the nation currently mandating universal health care, as well as the fact the seat that is to be filled belonged to man who for decades has championed health care reform.
However, Democrats are worried over mounting public backlash over the economy as well as doubts surrounding health care reform in general. While the universal health care in Massachusetts has decreased the number of uninsured people in the state, costs have been much higher than expected and the state has had to seek federal aid to cover it’s shortfall.
Even if the Republicans win next week and Democrats are unable to come to a compromise in time, it would only mean that they would have to come back to the table and seek a bipartisan compromise unlike what was recently passed in the House and Senate where one lone Republican congressman voted in favor of their respective bills.
Tags: Care, Health Care
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General Re Settles Fraud Charges Over AIG, Pru Financials
Posted on January 19th, 2010
The Securities and Exchange Commission today charged General Re Corp. for its involvement in separate schemes by American International Group (AIG) and Prudential Financial, Inc. to manipulate and falsify their reported financial results.
The SEC said Gen Re agreed to pay $12.2 million to settle the charges.
In addition, in a non-prosecution agreement with the Department of Justice in connection with a related criminal investigation of Gen Re’s transactions with AIG, Gen Re agreed to pay $19.5 million to the U.S. P
Tags: General Re, Pru
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Letters: Claimants will lose out, not lawyers
Posted on January 18th, 2010
It is claimants and not lawyers who will be the losers from Lord Justice Jackson’s recommendations (Writ large: A blow for justice – and only the lawyers lose, 18 January). Implementation of Jackson’s review of civil costs will rob injured people of up to 50% of their compensation while insurers get extra profits.
The Jackson report appears to have forgotten the furore (often reported in the Guardian) about no-win, no-fee lawyers taking money from compensation. I
Tags: Lawyers
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Brit bolsters Global Markets business
Posted on January 18th, 2010
International general insurance and reinsurance group Brit Insurance is bolstering its Global Markets business unit with the addition of Neil Russell and Joachim Tolle as underwriters.
Russell brings a decade and a half of experience to the firm, including a long stint at Lexington Underwriting Company managing the Lloyd’s North American Property accounts.
Russell will continue to concentrate on North America with Brit Insurance, and will report directly to Tom Rowley, North American Open Market Class Underwriter.
Tolle leaves behind AIG UK Ltd, where he was responsible for major financial institutions accounts, to join Brit and will report to Neil Beaton, Financial Institutions Class Underwriter.
Brit Global Markets CEO Matthew Wilson has warmly welcomed the two appointments and expressed his delight at Russell and Tolle’s joining the firm.
Tags: Business, Global Markets, Global Markets Business, Markets Business
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