INSURANCE BRIEFS

INSURANCE BRIEFS

NEW STANDARDS ISSUED

FOR PROPOSITION 103California Administrative Law Judge William J. Fernandez Monday issued a 62-page opinion setting standards for Proposition 103 rollbacks and approval of rates.

This was the culmination of five months of hearings designed to interpret the California consumer initiative and establish benchmark standards for its use. State Insurance Commissioner Roxani Gillespie has 100 days from May 4 to study the opinion before rendering her own decision on the issues.

All parties involved in the hearing process, which has been proceeding since last November, must file their written comments by May 18.

Rebuttal briefs to other parties' comments must be filed by May 28.

JOINT P/C VENTURE

DISSOLVED BY OWNERS

NEW YORK - Aetna Casualty & Surety Co.; Assiicurazoni Generali of Trieste, Italy; and Taisho Marine and Fire Co. of Japan have agreed to dissolve an agreement to provide property/ casualty coverage to multinational companies through Aegen International Inc., a joint venture the insurers formed in 1981.

Aetna and Generali each own 45 percent of Aegen. Taisho has a 10 percent stake. The companies no longer will provide P/C coverage through Aegen International, Aetna said in a statement.

"Instead, each company will develop insurance packages for U.S.-based firms with overseas operations and foreign-based companies that have U.S. exposures."

Aetna said that after nine years "the companies have re-examined the Aegen structure and concluded that they can provide the coverages more efficiently, directly."

AGENTS GROUP ENDORSES

NOVEL UMBRELLA POLICY

PEORIA, Ill. - RLI Corp.'s personal umbrella policy has received an endorsement from the Independent Insurance Agents of America. The RLI Personal Umbrella policy is novel because it is a stand-alone product, said George Schmid, vice president of national accounts and agency marketing at RLI.

"Most personal umbrella products require that the underlying home and auto coverages be placed with the primary insurer. Our policy has no such requirement," Mr. Schmid said. The endorsement is only the second in IIAA's history, according to RLI.

INSOLVENT PA. INSURER

PAYS OFF SMALL CLAIMS

HARRISBURG, Pa. - Insolvent Mutual Fire Marine and Inland Insurance Co., Philadelphia, paid $1.8 million to policyholders for more than 750 small claims, said Constance B. Foster, Pennsylvania insurance commissioner, who is acting as rehabilitator of the company.

Ms. Foster said the payments are being made under a rehabilitation plan approved by Commonwealth Court President Judge James C. Crumlish on Jan. 23.

In addition, the New York Guaranty Fund has settled 136 claims totaling $1.6 million and the Pennsylvania Guaranty Fund has settled 52 claims totaling $1.6 million on behalf of Mutual Fire, insurance department officials said.

The guaranty funds pay claims and become creditors of the estate of the insolvent company.

TWO INSURERS SPONSOR

TITANIC EXHIBIT IN NY

NEW YORK - Johnson & Higgins and Atlantic Mutual Insurance Co. are currently co-sponsoring an exhibition of memorabilia from the ocean liner Titanic, at New York's South Street Seaport.

"At the time, the Titanic represented the largest risk anyone could possibly insure," said David Olsen, president of New York insurance broker Johnson & Higgins.

Mr. Olsen added that J&H arranged a portion of the liner's coverage.

Atlantic Mutual, New York, wrote $100,000 of the hull coverage placed on the Titanic in 1912, Edward K. Trowbridge, chairman of Atlantic Mutual, said.