The

INSURANCE

RECORD THE VOICE OF TEXAS INSURANCE Published Since 1934 • Dallas, Texas March 26, 2009 • Vol. 75 No. 7

AIA Sends Warning Note to
Treasury & Federal Reserve

WASHINGTON—Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), recently sent a letter to U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Benjamin Bernanke regarding additional federal intervention.

Distortion Danger She wrote, “Recent press reports state that AIG is likely to report as much as a $60 billion loss and will be requesting more government financial support. Late last year, the American Insurance Association (AIA), the nation’s leading trade association for property-casualty insurers, submitted a letter for the Congressional Record that supported legislative measures to stabilize the financial markets and the U.S.

economy, but importantly, also warned about the potential for private market distortions and conflicts with the government’s role as market regulator that can arise where the government provides taxpayer funds to an entity like AIG. We urged Congress at the time to exercise its oversight responsibility to ensure that taxpayer capital was used for the limited purposes for which it was provided.”

And Furthermore

“As noted in our earlier letter, the potential for private market distortion grows where government provides subsidized capital in exchange for an ownership stake in private companies. In recent months, we have heard reports from companies that continued on page 5

Latest house Proposals
envision Different TWIAs

In This Issue

TDI: January Discipline List and February DWC enforcements 3

AUSTIN—One legislative foray into the coastal windstorm and hail front is SB 14, by Senate Business and Commerce Chairman Sen. Troy Fraser (R-Horseshoe Bay). This bill squeezes insurers more for lower level funding while it would use both pre- and post-event bonds for higher level funding. SB 14 leaves companies liable for open-ended assessments to cover losses in excess of $5 billion.

NAIC to Review Credit Scoring Issue

SELLING STRATEGIES:

New Ideas for Selling

President Signs Temporary extension of Flood Program

On the other hand, HB 911, authored by House Insurance Chairman Rep. John Smithee (R-Amarillo), which lowers insurable property limits, ads surcharges, and requires buying flood insurance, would help pay for losses with a loan from the Texas Rainy Day Fund.

Drug Makers Find Scant Defense in FDA Approval of Meds or Labeling 12

NAIC Assesses Producer-Licensing

continued on page 6

Risk Managers Support GAO Report

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