INSURANCE BRIEFS

INSURANCE BRIEFS

LLOYD'S COUNCIL BALLOTS

TO BE MAILED OCT. 27Lloyd's of London said Thursday that it will send ballots for the election of the five members of the Council of Lloyd's, the ruling body.

The elections, to be held by mail, will decide the appointment of members for terms that begin Jan. 1, 1996. Nominations must be received by Oct. 6, and ballots will be sent to members on Oct. 27. Results will be announced on Nov. 28. Terms last for two or three years.

Three council members who work within Lloyd's - Chairman David Rowland, Robert Hiscox and Philip Wroughton - along with two outside members - Peter Viggers, a member of Parliament, and Valerie Robinson - will retire from the council on Dec. 31.

As chairman, Mr. Rowland is eligible to stand for immediate re-election under the provisions of Lloyd's bylaws.

Mr. Rowland has been invited to extend his term as chairman for another year, subject to his re-election as a working member of the council and his formal election by that council as chairman for 1996.

EXEL FIRMS GIVEN

A.M. BEST 'A' RATINGS

HAMILTON, Bermuda - A.M. Best Co. assigned an "A" rating to X.L. Insurance Co., Ltd. and X.L. Europe Insurance, both subsidiaries of EXEL Ltd. here.

Best, located in Oldwick, N.J., said the ratings reflect the group's excellent operating performance, outstanding balance sheet liquidity and superior capitalization.

Both companies provides general and professional liability, and excess property coverage.

The Bermuda insurer mainly serves the U.S. market, while its Dublin-based subsidiary serves the European community. The latter cedes about three quarters of its gross business to its parent.

These positive rating factors are partially offset by the uncertainty associated with the group's relatively short existence - it began business in 1986 - and its limited loss emergence history.

NAIC TO DISCUSS ISSUE

OF BANKS AND INSURANCE

WASHINGTON - Insurance regulators and industry executives will discuss the issue of banks selling insurance and the potential impact on state regulators during a Sept. 9 seminar.

The program, "Banking and Insurance: A Symposium on Legal Perspectives," will be held in conjunction with the National Association of Insurance Commissioners' fall meeting at the Philadelphia Marriott.

Sessions will focus on the sale of annuities by banks, the federal Glass- Steagall Act, the impact of the National Bank Act on insurance regulation, litigation trends and other related topics.

For more information or to register, contact the NAIC Education Department at (816) 374-7192.

NY LAW MAKES HMOS

OFFER MORE SERVICES

ALBANY, N.Y. - Health maintenance organizations will be required to offer prescription drug coverage and let customers see doctors outside of their networks, under a bill just signed into law by Gov. George Pataki.

The bill came in response to concerns that many individuals were no longer able to buy comprehensive health coverage that pays for prescription drugs after Empire Blue Cross and Blue Shield stopped taking these customers.

HMOs will be required to offer a standardized benefit package that includes a range of services, including drug coverage, under the bill.

The companies also will be required to let their customers see doctors outside of the HMO if they want to. These patients will have to pay higher rates for the privilege.

LOW-INTEREST LOANS

DRIVE UP SC PREMIUMS

COLUMBIA, S.C. - Legislation requires the state Insurance Reserve Fund to make low-interest loans to state agencies and local governments, said fund Director James E. Bennett, responding to a Legislative Audit Council report.

The audit concluded that the state could save money by setting rates at least as high as U.S. government bonds.

Because the insurance fund relies on income from its investments, the low interest rates drive up insurance premiums paid by the state and local government, the audit said.

But those loans are mandated by the Legislature, which also often sets the rates, Mr. Bennett said. The loans are administered by the state treasurer, he said.