Florida Insurance

The HQs surgery at least five hospitals in southern Florida, for the implementation of all nonemergency Tuesday at the start of surgery protest against high premiums for medical insurance found.

Physicians in South Florida has been said that insurance payments their fault that the State of Florida and the Medical Association, is all the more than 358 percent on 1 July, in response to an increase in the jury assigns blame to the victims. The State and the Medical Association have signed a doctor of legal responsibility of protecting the insurance since 1975, as commercial insurance companies stopped, because the issuance of policies jury awards exceeded revenue premiums accounted for.

Some doctors specializing in areas such as neurosurgery was said that their fault annual premiums increase by as much as $ 80000 Without fault coverage, doctors themselves could be held liable for damages of any kind awarded by a jury selected .

Dir Bob Graham said last week that he would take the right doctors’ complaint to the government, though some short-term proposal could be ready in time for an extraordinary session June 21-23, in Tallahassee. The special session was once called to discuss budgetary matters. Disagreement between physicians

Last week, the State Insurance Supervision Commissioner Bill Gunter ordered 11 doctors, lawyers and insurance agents a commission to study the problem and propose to the legislative authority in 1983.

On June 9, a meeting of the Dade County Medical Association, was marked by screams and differences of opinion between surgeons on the use of a strike as a tactic. The Association encourages its members not to strike and many surgeons have indicated that they would continue to all types of operations. All participants were unanimous in managing emergencies.

On 1 July, 2,873 doctors in counties of Dade and Broward, patients compensation from the state to disburse funds have so many times as much as 358 percent more for insurance or abuse liability personal for all shares tendered, could turn against it.

The compensation fund of Florida is the only source of unlimited guarantee fault. Professional contractors transportation

Basic fault insurance 100000, $ east of Florida Florida Medical Association by his doctor mutual insurance program, which represents approximately 6700 of 19000 Florida’s license doctors.

The two funds have been during the year 1975, the state of the insurance institution halted for lack of commercial insurance, the premiums are not sufficient to damage caused by jury. “Since then, more juries have such distinctions, and the compensation fund now has a projected deficit of $ 50 million for awards during the last six years, John Odem, the Fund’s General Manager.

In April a Broward County jury awarded $ 12.4 million on Stetina of Susan Ann, aged 26, suffered permanent brain damage allegedly as a result of treatment for a longer stay in Florida Medical Center in Lauderdale Lakes. The procedure for the award is on appeal.

Also in April, the fund manager announced it Fund financially sound by a specific assessment in relation to its member doctors. Assessment collected

The fees and contributions by doctors and specialties areas where the practice. Most large jury awards have occurred in southern Florida.

According to the proposal rate, a general surgeon in Miami would pay as much as $ 66000 a year to cover the excesses: $ 15000 for the basic coverage of $ 100000, $ 17000 for additional coverage by the compensation fund, and an evaluation up to 200 percent of the Fund subsidy. The Fund said it needed 200 percent of the assessment to pay old debts and make the fund solvent.

The first official investigation of damage caused by Hurricane Andrew in Florida found that the insurance paid is estimated at $ 7.3 billion claim, making it by far the most costly disaster ever for insurers to States United.

The insured loss, calculated by a group of industry, specializes in estimating costs for disasters, are more than 70 percent higher than the damage caused by Hurricane Hugo in 1989. They do not contain a large number of uninsured damage, starting with damage to electrical installations in Dade County to pay for the request of the army.

Although the payment of over $ 7 billion is certainly lead to a high degree of pain for dozens of companies, analysts said $ 160 billion, the industry has more than enough funds to meet the requirements and that losses were reported today in line with expectations earlier this week. Andrew, they said, it is unlikely that the cause of credit problems for all major experts and insurers accidents. “Awfully Big Number”

“Of all count it’s a terrible lot,” said Alan G. Zimmermann, an analyst at Prudential Securities in New York. “But one thing this area is very effective for spreading risk. The system can not ignore.

Back estimates of damage caused by Andrew in Florida were for the most part by officials of conjectures in the emergency services at the scene and have generally in the area of $ 15 billion to 30 billion dollars. Today’s announcement was the first census of only a portion of that damage, under the leadership teams, respondents in five districts of the destruction in Florida on soil and air. The survey did not include costs for damage caused in the field of infrastructure, costs for the state of emergency and other programs, the uninsured costs for businesses and households, it has always tolls for agriculture or any losses in Louisiana.

According to Gary R. Kerney, director of the disaster to claim ownership of the Service division of the American Insurance Services Group, which works compact storm has expressed its grave harm to Dade County, during its entire insured damage have reached $ 6 billion. The amount of damage to Broward, Palm Beach, Collier and Monroe counties was $ 1.3 billion, he said. Mr. Kerney said that nearly 685000 applications have been expected that the files.

The organization has a similar estimate of $ 3.9 billion for damage caused by Hurricane Hugo shortly after that, while the most expensive hurricanes in U.S. history hit South Carolina in 1989. This figure was revised later, around $ 4.2 billion or $ 4.5 billion in the year 1992, the insured loss. These are insured damage estimate that less than half of what was perhaps more than $ 10 billion in total destruction.

So far, Florida, but the size seems devastated the region and the absence of signs or street work for most mobile phones have provided limited the ability of companies processing claims and estimate the size of individual companies for their losses. A spokesman for State Farm, the largest insurer in the region, with more than 20 percent market share, said that if current estimates, its losses will rise from $ 750 million. Its losses were over $ 460 million in Hurricane Hugo.

Allstate, the second operator in the region, said they announced their losses on Wednesday morning. “It will be high,” said Wayne E. Hedien, chairman and president of Allstate, in a telephone interview today. “But we have $ 8 billion surplus, and allows us to circumvent.”

Shadow of Paul Berg, a spokesman for USAA, San Antonio-based insurers, said that his company, it would pay $ 150 million loss in Florida by Hurricane Andrew. The company paid $ 107 million for Hurricane Hugo.

Hurricane Andrew is probably due to a multitude of questions for each firm, as they Tally to calculate the losses and, like many of the costs, they can at their own insurer - the reinsurance companies. Insurance and reinsurance have woven a web of understanding on the spread of the cost of major disasters.

Among the unanswered questions today, as much the cost be borne by the Lloyd’s of London insurance market, has been severely shaken by several years of losses bad. Experts say that foreign reinsurers, including Lloyd’s and other European reinsurers to pay perhaps as much as 30 per cent of losses. Some tax depreciation

Another mitigating effect on U.S. insurers, is that nearly a third of these losses may be reintroduced by tax depreciation. According to the Institute’s information assurance, industry, trade, the writer in the early owners of commercial buildings and insurance are at Florida State Farm, Allstate, Nationwide Insurance, Prudential, USAA , Chubb, Cigna, Continental, USF & G, travellers, ITT Hartford Insurance, Fireman’s Fund and Aetna.

A question is likely that the weeks ahead to discuss what the effects of cyclone in the pricing of damage, especially in commercial lines of insurance. Competition in many Property Casualty forced lines unprofitably low price level for years and hopes of investors in recent days because it immediately after Hurricane Hugo: sap that losses from Industry excess capital sufficient to compel all companies in the industry to raise prices.

But many analysts and economists, Orin Kramer, specializes in the insurance industry, said that the damage is published by Andrew alone are not sufficient to re-price up. “This is a great success,” said Kramer, “but I think this could be as much $ 40 billion for the things around. I do not think he can do it alone.

Like many big insurance buyers, Philip Paccione expects to remove smoke, so that they can see if it is burned.

As General Counsel of Skechers USA, Paccione is responsible for the purchase of a large number of insurance for Manhattan Beach, California-based Casual shoemaker, had 2003 sales of over $ 850 million.

It was mindful that the scandal began flourishing Oct 14, New York Attorney General Eliot Spitzer filed an appeal against Court civil fraud giant insurance brokerage Marsh & McLennan. Spitzer accused Marsh Aufriggkomfort bids for commercial insurance contracts and commissions by insurers in exchange for steering their business.

What Spitzer calls commissions insurance industry as “commissions of the tariff quota” - to pay fees that insurers under agreements brokerage, it has long been a common practice in the insurance industry. According to Spitzer explained that the fees involved a conflict of interest for brokers, have claimed to represent the buyer, Marsh and Aon and Willis Group’m off rivals accept.

Given these revelations, “begin to question the integrity of the whole sector,” said Paccione.

Paccione said he was pleased that Skechers’ insurance broker, he went to identify, was not involved in Spitzer probe to carry out tests in the state or by the authorities. However, the investigation continues.

Echo Paccione doubt those buyers Federal Insurance commercial, many of which are multinationals who believe that customers and sophisticated equipment nosed negotiators.

Only a few large companies, but it has filed a complaint against the broker or insurer according to lawyers for these companies, but they are all asking questions and always ready to go to court if necessary.

“Companies are quite worried. They want to be at least as a whole, “said John DEQ. Briggs, a partner at Howrey Simon Arnold & White in Washington, which represents a number of Fortune 500 clients in insurance matters.

Michael Cherkasky, Marsh’s new chief executive, said in a conference call with analysts last week that “daily encounter with some of our largest customers” and although they were more “hard”, customers were generally patient.

Cherkasky said Marsh customer rate fluctuations had been reduced, but it was not a lot of defections.

Some buyers also be put under pressure by their Boards of Directors to drop Marsh.

If companies decide they are wrong their brokers, negotiations can go so far, Briggs said, because “it is not as if they can not afford to give all their money.”

He said, all actions would probably target not only brokers, insurers, but also the deepest pockets.

In many respects, it looks like a wonderful new offer storage: America’s actions in a large company name will soon be for sale, and analysts say, at a very low price.

But Allstate Insurance Plan to go public in the coming weeks - the largest IPO ever in the USA - could be tarnished by a problem was highlighted yesterday in a public meeting in Florida. Hundreds of crazy, jeering Floridians interviewed nation, the second insurer of cars and homes on how they could in good conscience lower homeowners’ policy of hundreds of thousands of its customers for a long time.

After Hurricane Andrew, if Allstate lost $ 2.5 billion, almost 46 percent of the capital before tax, the company said that, if it dramatically reduced its customers in the state, and an increase in prices on the latter, remained a more powerful shot from the coast could bankrupt the company. A problem is recognized

Its public offering is expected to decrease by more than 300000 potential customers and reduce their losses up to $ 1 billion in the State. Yet, deep in the prospectus, the company acknowledged that regulatory authorities or indignation consumers may refer to the manner of such an action - and insurance analysts concerns.

“A household name in the case could bankrupt the hurricane, and it’s not in everyone’s interest,” said John Snyder, Vice President of AM Best, Insurance Rating Service Oldwick, NJ ” If the essential political delays or changes their downsizing in Florida, it threatens our rating. It is sensitive to the Bourse ”

The public meeting yesterday Plantation, Florida, the second session, by the Insurance Commissioner Tom Gallagher, illustrates how the management Allstate must now affirm, with pressure from Wall Street, on the one hand and populist fury of on the other side.

The quantity hostile over 500 ausgepfiffen as Allstate’s General Counsel, Michael McCare, said the company plans to drop 300000 customers, more than half of 150000 homeowners policy in Broward County, and discard rates between 30 and 65 per cent.

Robert Hunter, chairman of the National-Versicherungs-consumer organization, a recently published study indicates that insurers withdrawals were planning areas at high risk for the nation, received a constant Ovation, when he called for a moratorium of State on the cancellation policy Allstate finances could be examined.

“Allstate 300000 proposed nonrenewals and 30 per cent increase in Florida may have more information about an aspect of sale - we look seriously - rather as a logical business decision,” said Hunter written testimony. “Allstate does not seem to require to go ahead with a national program until his guinea pig, Florida, either fixed or slut.”

Late in the day, Commissioner, Gallagher announced that the enrolment of companies, the document must be approved before Allstate goes ahead with its plans, was rejected for lack of sufficient data. It was not clear whether this decision would delay the renewal plans to stop customers beginning September 1

Earlier this year, Sears, Roebuck, Allstate announced it would be 20 per cent of Allstate at least 78.5 million shares. The price, the company said it would be between $ 24 and $ 27 for a share. At $ 26 a share, raising only about $ 2.04 billion.

Deals reserve insurance have done very well in recent months. Allstate is a particularly attractive, many analysts say, because it is one of the nation, both leaders of the retail market, insurance companies, a territory, was more profitable than the commercial insurance , Where prices in recent years have been low.

The company also has a strong brand and a force of 15000 full-time officers to be impossible, each first year student in the construction of these days. Allstate with 12.5 per cent of owners of the nation and automobile insurance, it is the second largest in the State Farm, a mutual, who is in possession of their policyholders.

The Allstate Insurance Company announced yesterday that the sale of insurance owner of the house most new customers in Florida and that reductions in the study of the coverage in coastal sections of New York.

The move is another sign that the insurance industry to suffer more than $ 16 billion in losses from Hurricane Andrew, is cutting back on property coverage along America’s Storm-vulnerable coasts. So far, cuts have been a State Farm and other insurers, Florida and the Corporation passengers in the New York area.

Voyageur New York withdrew its surface coverage by storms last month that hundreds of millions of dollars of damage in coastal areas of Long Island, Connecticut, New York City and Westchester County. Major insurers Florida

Allstate said it would stop writing any new homeowners’ policies in Florida, with the exception of automobile Allstate customers want coverage of their houses. Allstate, a unit of Sears, Roebuck & Company, is the second largest property insurer in Florida after the Land Farm.

Allstate had losses of $ 2.5 billion Hurricane Andrew and losses after tax of $ 1.65 billion. He said he would continue to provide its existing clients, Florida, where 18 percent of homeowners insurance marketing.

“At the moment, is Florida, but you will see, measures to reduce exposure by insurers across the country,” said John H. Snyder, Senior Vice President of AM Best Company, a insurance company in evaluating Oldwick, New Jersey, “next year, you see the problems of availability to start construction, especially in coastal regions, especially in the south. This is much closer to shops, you find more coverage. “Risks are Reconsidered

Leaders in industry Property Casualty say that in the verification of risks to which they are large-East storms along the coast and golf after a year particularly serious injuries. You acknowledge that Hurricane Andrew proved that it underestimates the risk of wind damage to land, where development has been intense over the past two decades.

“There are areas where a hurricane the size of the order of Andrew would still more losses than in southern Florida,” said Edward W. Young, a vice-president of Allstate. “We are not something to New York at this time. Over time, we are on the same path. ”

Mr. Young believes that the storm, as a beat Andrew New Jersey, Long Island and Connecticut, advance $ 40 billion to 50 billion dollars in insured damage. Hurricane Andrew has spent the insurance industry more than $ 16 billion in receivables.

A factor weighing in companies is the sudden disappearance of the catastrophe reinsurance, insurance that insurers buy, so they risk major disasters. After the huge loss of Hurricane Andrew, catastrophe reinsurance was either more costly or not available.

Allstate and other large companies are in congress to create a federal appeals catastrophe reinsurance to cause storms or earthquakes, that tens of billions of dollars in damage. Unless the federal government the reinsurer of last resort, they say, many companies are not able with the cost of major disasters that would result in tens of billions of dollars in claims. In what industry wants

“You can not have an area of the capital finished offer immense scope,” said Greenberg, president of the American International Group, the largest trading nation owned by the insurer. “They have less reinsurance disaster at a time when there is a need for more insurance. Regarding insurers need is a reinsurer of last resort, which is about all periods.

Allstate’s the end, a total of close to new sales of Allstate, by department Farm, the nation’s largest property insurers staff, began this month to limit the total amount of new residential and commercial coverage of each of its agents in Florida can write to $ 750000 per month.

Another half-dozen companies have a restriction of their exposure in Florida, including the passenger Compensation Corporation, Prudential Property and Casualty Insurance Company, American Reliance Group Inc., Norfolk & Dedham and the Fire Insurance Company.

Florida, the Commissioner of Insurance unusual action yesterday the freezing of prices and premiums, by one of the greatest nation insurance companies, American International Group.

The commissioner warned that other Property Casualty insurers in the state that the regulatory authorities would disclaim any unjustified increases sought in connection with the devastation by Hurricane Andrew.

The Commissioner action against A.I.G. from the publication of an internal memo that the company describes Hurricane Andrew as “an opportunity for price increases now. The message was sent by a group of consumers and last week.

The note written on the day of Hurricane forge billions of dollars in damage in south Florida, was cited by consumer associations as evidence that AIG, and maybe also other companies, intended for use of the hurricane as a pretext for the fee is not justifiable sentences.

The president of the New York-based, AIG, Maurice R. Greenberg, explained the importance of the note was taken out of context. He was greeted by his son, JW Greenberg, Executive Vice President, and was the top company executives.

For years, the elderly Mr. Greenberg argued that the premiums collected from customers were insufficient, and he said yesterday that the new message to society for a long time.

In another announcement yesterday, State Farm, the company with the largest private owner and motor vehicle insurance business in Florida, said Andrew’s losses, totalling $ 1.2 billion as a result of over 110000 requests. William Sirola, a spokesman for the company said that the state has not been directly firm plans to raise prices.

In yesterday’s action against AIG, the Florida Insurance Commissioner Tom Gallagher, said he and Florida’s Attorney General, Robert A. Butterworth, would examine whether the company is, try to increase their prices excessively, and if the offence was a state agreements laws.

In all cases, a division spokesman said Gallagher showed the note felt a coldness in the part of the executive branch of the human tragedy which is in Florida.

“AIG and other companies sell, trade, materials and auto insurance in Florida, the better this message now,” said Gallagher. “We do not tolerate, every company tries to benefits for our citizens in the wake of this tragedy”.

Mr. Gallagher’s erstarrte for prices and premiums, AIG in the state for 60 days. The commissioner announced that he would make a public consultation on the matter. Florida law allows companies, phrases, and then file with regulatory authorities, then they can refuse.

The Commissioner also today a letter to 780 business leaders of the Company to sell licensed, damage and accidents in Florida. In his letter, he warned that his department would disclaim any efforts by the insurance industry to “capitalize on the disaster of Hurricane Andrew’s victims” unjustified increases.

The note is the last battle in a war between consumer associations and industry in the country Property Casualty across the nation. Consumer activists, like Robert J. Hunter, the chairman of the National-Versicherungs-Organisation of Consumer Protection, which the memo last week, Ralph Nader, have argued that insurers over as the best current yields. Worry About capital

The assurance of the economy and most Wall Street analysts and economists follow the industry indicate that at least in certain types of insurance, industrial customers where competition in recent years, believes that prices so low that over the long term if prices do not, it is difficult for industry to acquire and stay healthy.

Immediately after Hurricane Andrew met ashore August 24, stocks of many large insurers rose in the hope that the storm caused extensive damage to the industry depletion of capital and change the psychology market, so that the price increase Property Casualty. But most analysts are now saying they doubt Andrew alone - as expected, with nearly 8 billion dollars in insured damage in Florida and Louisiana - to increased premiums.

After battering south Florida with the greatest breath of the storm in all 35 years and are now Louisiana-Texas Gulf Coast, Hurricane Andrew is without doubt contribute to a bad year of losses for many insurers worst property.

Say analysts, but the damage was very high leading to what the insurance sector at prices significantly increase, perhaps buoying their stocks.

Stocks of most of the damage and accidents fell yesterday enterprises amidst a low pension and the market is concerned that Andrew’s Legacy Push-industry could claim payments in the vicinity a record amount of more than $ 7 billion in 1989 . It was the year of Hurricane Hugo, the company paid $ 4.2 billion at their request, and the earthquake in San Francisco, for 1 billion dollars have been paid. This year, disasters

During the first six months of this year, damage resulting from hail damage insured weather in Texas, Kansas and Florida, disturbances in Los Angeles, the flooding of downtown Chicago and other catastrophic losses to amounted to 3.7 billion dollars, according to the property right Services, a group of industry in trade Rahway, New Jersey

Say analysts, but it is still too early to make estimates on damage to South Florida and Hurricane Andrew’s toll would be much larger than Hurricane Hugo for the promotion of leadership in industry rates increased sharply.

An increase in interest rates to be completed this year, which was an exceptionally long period of more than five years of price reductions in the insurance industry tariffs. The former “down” for games cycle lasted from 1979 to 1984. Therapy pain facing an increase

“You have some pain in the industry is the rising prices,” said Gloria L. Vogel -, insurance analyst at Lehman Brothers. “It is clear that Hurricane means an additional loss for these companies. If there is enough to change the psychology of industry, it becomes the catalyst that turns around the situation over the long term. But it remains to be seen . ”

But Thomas V. Cholnoky, insurance analyst at Goldman, Sachs & Company, said, it is more than difficult to give an assault on a price increase.

“I do not think the hurricane itself is enough for the cycle,” he said. “Bad news is not bad enough.”

He hopes for investors could increase insurance rates higher in the coming weeks, after the whole spectrum of the destruction of Hurricane Andrew’s is known. This happened in late 1989, after Hurricane Hugo and the earthquake in San Francisco impressed.

“But if the achievement had nothing happens with prices, the shares have given their profits, if not more,” said Cholnoky.

Michael Frinquelli, insurance analyst at Salomon Brothers, said the prospects for a lasting settlement, change of values components of the insurer damage for the next six to 12 months were “dull”.

Inventories of materials and accident insurance, performance of the broader Standard & Poor’s 500 Index, in six of eight months of this year, so far, whereas in the first half of the year after the period Profit in 1991. Cigna, for example, said insurance losses of more than three times during the first six months of this year, during the period of the previous year, Safeco, time payments almost doubled.

But the stock market, industry lost ground, and only in May April amid concerns regarding the riots in Los Angeles, with the insured loss in the vicinity of about 1 billion dollars.

The bond market has increased the value of this year earlier than the low interest rates during the year, explains much of Wall Street moderately strong appetite for insurance yields, in spite of stocks. More than 75 percent of industrial goods are invested in bonds, and these values are pretty.

Furthermore, the slow economy has few facilities for insurers of a slowdown in automatic mode breakdowns, construction and other violations High-volume staples damage and accidents underwritings, “said Frinquelli Salomon Brothers Inc.

Some of the most significant gains in the sector this year by the same last Friday U.S. F & G, 76 per cent to $ 12.75; Mercury General up to 55 percent, to $ 47125; Geico to 44 percent to $ 57.50 and Cincinnati Financial, 37 percent to $ 49.25.

The Prudential Insurance Company announced yesterday that upwards its estimate of what they should pay fees to damages in Florida by Hurricane Andrew to $ 1.2 billion, four times what forces Conduct adopted so far.

With the loss of nine Prudential estimates, Standard & Poor’s rating agency, it should be earned on the investment credit Prudential, with a possible downgrading of the nation’s largest insurance company in its current state, AAA, the highest rating. The agency said that the losses of Andrew could only expect that nearly 10 per cent of the Prudential capital.

“It is clear that Prudential had a great loss from Hurricane Andrew,” said Mark Puccia, Senior Vice President at Standard & Poor’s. “We always felt that Prudential was stretched on invested capital compared to scoring. Capital has always been the Achilles’ heel. ”

Moody’s Investors Service Prudential downgraded its rating of AAA or other exceptional, Aa1, excellent in January.

The new estimate losses of Prudential was born the same day that the official position of non-profit, the agency estimated that insured damage from natural disasters announced that the industry should be to pay $ 1.6 billion in claims by Hurricane Iniki. He also as a civil servant in the insurance sector, said the total number of insured damage in Florida could increase significantly higher than the $ 7.3 billion in the first estimate.

Some experts said the total insured loss by Andrew could reach $ 10 billion or more.

With previous losses of the Los Angeles riots and other disasters, messages, a number of analysts to speculate whether the losses for the industry as a whole, that price increases for Property Casualty Insurers, in particular in commercial lines of insurance, given the low prices have been for several years.

In its announcement yesterday, Prudential said it would make a capital infusion of $ 900 million in its subsidiary Prudential damage and accidents, is intended to cover claims by Hurricane Andrew.

E. Michael Caulfield, chairman of the unit of Prudential, said the reason for the loss higher estimates, while hurricanes in the past, the rule of damages up to 30 to 40 percent of insured properties, Andrew’s destruction, an average of over 50 Percent.

As with many insurance companies, authorities and news organizations, Prudential made assumptions about damage to his staff had inspected the damage to soil and interviewed people. Often, insurance companies took a week, starting with a difficult subject, we add the costs of claims. In addition, Prudential’s market share in the worst areas higher than its market share of 3.4 per cent in the State of Florida. The company said that it was somewhere between 5 and 10 per cent. Other estimates, increased

Mr. Caulfield said Prudential expected to pay a little more than $ 1.2 billion in home and auto insurance in Florida, $ 13 million in LA, and an additional $ 70 million for insurance commercial. The tax benefits and payments of reinsurance, it is the company to reduce its losses to $ 900 million.

Several other companies have also increased their estimates of losses recently, including travellers, which doubled its estimate of losses of Andrew last week to $ 500 million to $ 600 million.

The Agency makes estimates of the total branch damage resulting from these disasters, claim ownership of the services of USA Insurance Services Group, headquartered in Rahway NJ, originally insured damage in Florida to $ 7.3 billion. But yesterday, Gary R. Kerney, a spokesman for the Agency, said he expects that the highest of all damage caused to rise.

The financial supervision, the issue of protection of their current credit rating is crucial, because it attempts to eliminate competition for customers, not in the business Property Casualty, but in selling insurance life, annuities and other investment products. Since the collapse of several large life insurers during the year, Prudential has tried to assuage the concerns of consumers, with its image of the rock of Gibraltar.

The CIGNA Corporation today agreed the sale of companies Horace Mann, an insurance company sells personal especially teachers, for about $ 500 million in cash to a group headed by leveraged buy-out of the company Gibbons , Green, van Amerongen Ltd.

The CIGNA Corporation today agreed the sale of companies Horace Mann, an insurance company sells personal especially teachers, for about $ 500 million in cash to a group headed by leveraged buy-out of the company Gibbons , Green, van Amerongen Ltd.

Gibbons, Green, who has offices in Los Angeles and New York, owns the majority of justice in the holding company is the acquisition of the Cigna unit. Paul J. Kardos is still regarded as Horace Mann’s President and Chief Executive and the holding of the Committee, together with other senior managers.

Horace Mann is chartered to sell insurance in Illinois, his country of origin, Florida, California, Delaware. Indeed, each state must Buyout, the closure of approval It is anticipated that three to six months, “said Edward L. Najim, a spokesman for Horace Mann in Springfield, Ill. Deal is something extraordinary

Leveraged buyouts are designed to afford themselves of the acquired company cash flow. The agreement reached today is a bit unusual, “said James Ramenda, an insurance analyst Command & Company in Hartford, because it is a company, considerable height of its activity in damages and damage to property, cash flows generated less predictable life insurance as a result.

”People die, but the driver is not predictable predictable player,’’said Ramenda.

With the focus on teachers, Horace Mann has carved a solid clientele, but that has nothing in common with the group Cigna commercial insurance operations, “said Ramenda. Different views

”There were differences in positions between the son of Horace Mann and Cigna,”he said. Cigna”a very structured planning for growth and Horace Mann never subscribed to.”

Cigna, whose headquarters is in Philadelphia, was adopted in 1982 by the merger of the INA and Connecticut General Life Insurance Company last year, they have the Horace Mann and its various Products Division assurances to the sale. In March, he sells each insurance company to the Inter Continental Life Company for $ 140 million.

The company said the sale of these assets would it help their commercial insurance and investment business, but he did not rule out the possibility of returning to purchase more of its shares. Its recent acquisition of 724000 shares at an average price of $ 57 each began in October after stock market crash.

In the first half of the year, Cigna, operating income was $ 214 million, 32 percent over the comparable period in 1987, and its revenues amounted to $ 8.5 billion to 8 percent . Of which, Horace Mann has contributed $ 22.4 million in revenues and $ 371 million of revenue.

At a time when the Resolution Trust Corporation faces growing criticism about their internal disarray, the leader of a Top-private sector consultative committee of the Agency today called for a new CEO to manage.

The report by Philip F. Searle, Chairman of the National Advisory Board of the company’s Oversight Board, is important because the background image within the agency managing the savings and loan bailout in the critical and growing because Mr. Searle has long been a reliable supporter of the resolution Trust.

It is also important because it is only two days before William L. Seidman, chairman of the Federal Deposit Insurance Corporation and Resolution Trust, is to ask Congress for $ 80 billion to pay for costs savings and loan bailout for more than two years. Mr. Seidman is also expected that a plan to revise the bailout agency, including the appointment of a new Chief Executive by the president. Changes in price may be

The price of Congress extract May, the changes are at higher levels Trust Corporation. The current director of the Agency, David Cooke, is a career Deposit Guarantee official designation of Mr. Seidman.

“The biggest mistake was decided that the staff of the RTC great career with the Bank savings or bureaucrats,” Searle said a Senate Banking subcommittee.

Mr. Searle added that the Agency “a total of delegating authority for the administration to a new setting experienced professionals possess forces impressive private sector.” The new executive, he said, should be “able to move as quickly as possible with the recruitment of a well motivated Senior Management Team has the same private-sector experience and references.” Agency “perplexed”

A spokesman for the Resolution Trust responded that the agency was “somewhat puzzled” by M. Searle’s comments.

Stephen Katsanos, spokesman for the Agency, said that in years M. Searle has served as head of the advisory committee, “he never had any problems, as testified to this day”, added: “We were aware of never having felt there were these serious problems, Like today, he expressed. ”

Mr. Katsanos said that “everybody here has skins and hard, we can go to bed at night feeling that we have a working day fixed for taxpayers.”

The private sector-committee, headed by Mr. Searle, FL commercial banker, was approved by Congress in 1989, when developing products savings and loan bailout.

According to Mr. Seidman’s plan to revise the Resolution Trust, an advance copy was obtained this week, testing by the Federal Deposit Insurance Corporation of the trust company would be severely limited and a new Chief Executive of the Resolution Trust wouuld name the Preident. The proposal was approved

The proposal won enthusiastic approval yesterday by Senator Alan J. Dixon, a Democrat, Illinois minds of consumers and regulatory affairs subcommittee of the Senate, the Banking Committee.

“We have a sailing vessel nobody knows what to do,” said Dixon. “We need a man or a woman, we are confident in carrying out this case. We must do a Top-professional for the task to be performed. Mr. Dixon suggested that Congress may come with a “job description”, the statement of qualifications for the background of all new Chief Executive.