Monthly Archives: October 2008

Insurance Agent Fined For Bad Mouthing AIG

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“The Minnesota Department Of Commerce has taken action against a Duluth insurance agent and agency for publishing a newspaper advertisement that solicited business from current policyholders of American International Group (AIG) insurers by questioning the financial health of the AIG parent company. The department has repeatedly affirmed the financial solvency of AIG’s insurance companies, despite the troubles associated with the parent company.”
 
The agent agreed to pay a $2,000 fine and the agency agreed to pay a $3,000 fine. The advertisement in question attempted to scare AIG policyholders into replacing their existing policies. It is illegal under Minnesota law to make any misleading statements about the financial condition of any insurer.
 

Mistletoe And Holiday Parties Don’t Mix

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Company-sponsored functions involve risks, and serving alcohol compounds the problems. One study says that 36% of employers reported behavioral problems at their most recent company party. These problems involved everything from excessive drinking, off-color jokes all the way to unwelcome sexual advances and fist fights.

Excellent article by labor attorney Hagood Tighe provides 10 tips on how to reduce the chances of an incident. Here are three little knows suggestions:

1. Require your managers to be “on duty” at the party.

2. Invite spouses and significant others to help act as a deterrant to employee bad behavior.

3. Don’t hang mistletoe as it can lead to inappropriate sexual advances.

Ten Ways To Avoid Getting Sued During Holiday Parties

Employee Dishonesty Insurance: What Is It & Why Do I Need It?

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I was talking to a client the other day, and he asked me what employee dishonesty was all about. He owns a small business with about 6 employees, and most of them have been with him for at least 5 years. He didn’t understand why he needed it since he trusts them.

What Is It?
Employee dishonesty is considered to be a criminal at committed by and employee acting alone or in collusion with others. There must be intent by the employee to cause the employer a loss and to obtain a financial benefit for the employee or someone else.

Why Do I Need It?
Recommend Employee Dishonesty coverage to most employers, and their first reaction is usually: “I don’t need that. My employees have been with me for years and we’re like family!”

Unfortunately, incidents of Employee Theft are on the rise. Following are several incidents that have happened within the last few months:

BEAUFORT, SC: A box office manager was charged with stealing over $98,000 from a performing arts center. During an internal audit it was discovered that the manager had been writing checks for personal use since 2006. — The Beufort Gazette, 06/08

BEAUFORT, SC: A Beaufort County motor-grader operator was arrested for stealing over $35,000 in diesel fuel (approximately 10,000 gallons). Between March, 2007 and mid June, 2008 the operator was filling his county issued pickup, that has an 80 gallon tank, with diesel fuel from county-owned pumps and then selling the fuel to others. — The Beaufort Gazette, 06/26/08

MYRTLE BEACH, SC: A woman working for a local construction company was arrested after it was discovered she had written over $260,000 in checks over a 5 year period to pay her personal expenses. — The (Myrtle Beach) Sun News, 10/08/08

Hartford Financial Troubles Not Like AIG’s

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Shares of The Hartford stock have recently taken a large hit in the market which has prompted media scrutiny in he wake of AIG’s well publicized troubles. The Hartford has realized huge losses on its investment portfolio in the range of $2.2 Billion due to credit market woes.
 
In an announcement released by Hartford’s chairman and CEO, Ramani Ayer, they are tackling the difficulties head on with a preemptive strike by entering into a deal with Allianz SE to take on a $2.5 Billion capital investment. As a result, The Hartford projects that it will exceed the required capital margin required by the rating agencies by some $3.5 Billion.
 
In addition, The Hartford has named Greg McGreevey as their new chief investment officer.
 
Don’t expect to see The Hartford asking for a government bailout as they appear to be taking proactive steps to solve their own problems in the short term.