Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.insur From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: insur Fri, Mar 20 1992 Date: Fri, 20 Mar 92 05:44:41 EST Message-ID: 03-20 0000 DECISIONLINE: Insurance USA TODAY Update March 20-22, 1992 Source: USA TODAY:Gannett National Information Network DOW OFFERS PAYMENTS: Dow Corning Corp., which was the first company to make silicone gel breast implants announced Thursday that it is getting out of the controversial implant business. Dow said it is establishing a $10-million fund for implant research and will pay up to $1,200 to women who need surgery to remove implants but cannot afford it. The company says the procedure can cost $1,00 to $5,000. PROFITABILITY CITED BY FIRM: Following claims that silicone gel breast implants are unsafe, Dow Corning Corp. - which stopped the implants Jan. 6 - said Thursday it is leaving the business it pioneered for financial reasons. Dow Corning Chairman Keith McKennon said the gel implant is not profitable and, given the adverse publicity it's gotten in recent months, the company only expects things to get worse. NEW UNEMPLOYMENT CLAIMS FALL: The number of people filing for new unemployment benefits fell 27,000 to 433,000 the week ended March 7, the Labor Department said Thursday. Though the drop was larger than expected, economists say it's still too early to predict an upturn in the job market. The four-week average of claims, considered more accurate than the weekly volatile numbers, fell to 447,000 from 451,750. UNEMPLOYMENT TO REMAIN HIGH: Despite a drop in the number of new unemployment claims in the week ending March 7 and signs the economy is improving, analysts say they don't expect a big improvement in unemployment until a recovery has been underway for several months. About 9.2 million people are unemployed in the USA and 3.3 million are receiving unemployment benefits. LAWRENCE ANNOUNCES DIVIDEND: Lawrence Insurance Group Inc. announced Thursday a 12 cent per-share dividend to stockholders for the first quarter of 1992. The dividend payment was approved by the Board of Directors of Lawrence Insurance Group Inc. The group is comprised of United Community Insurance Company, United Republic Reinsurance Company, Senate Insurance Company and Commercial Resources Insurance Company. SFLIC GETS DOUBLE `A' MINUS: S&P has assigned its double-`A'-minus rating to Security First Life Insurance Co.'s claims-paying ability. The rating is in part based on the implicit and explicit support from Canada-based London Insurance Group as well as Security First's strong capitalization, and high quality investments. Security First is 100% owned by The Holden Group, Inc. of Los Angeles, California. LONDON LIFE GETS TRIPLE `A': S&P has assigned its triple-`A' rating to London Life Insurance Co.'s claims-paying ability. The rating is based on its superior capital base, dominant market position in the Canadian individual life insurance market, strong distribution force and efficient operations, and its excellent earnings performance, S&P announced Thursday. CENTERS OVERCHARGING INSURERS: Michigan's head injury centers are overcharging insurers by millions of dollars, officials say. Cited: Car wrecks account for half of cases; the no-fault system doesn't limit payments. A U.S. House panel is probing billing abuses and the lack of training at the facilities. GLADSTONE AGREES TO PAY: Las Vegas psychiatrist Scott Gladstone has agreed to pay $300,000 for billing Medicaid for more time than he spent with his patients and for services he did not perform. Twenty other cases of Medicaid fraud in Nevada are being probed. NEW YORK FIRST IN ARSON: The troubled economy is behind New York state's first-place ranking nationwide for arsons, officials say. Cited: There were 957 more arson cases in 1990 than in 1989; the number of suspicious fires so far in '92 is double that of '91. Arson gets rid of debt source, and people often have insurance money left over, officials said. WORKERS COMP FRAUD TARGETED: Armed with video cameras, insurance firms in North Carolina say they're cracking down on fraudulent workers' compensation claims. The goal is to cut payments for bogus claims by taping people doing things they claim they can no longer do. VERMONT REQUIRES SEAT BELTS: Residents of Vermont will have to wear seat belts under a bill passed by the state House. Opponents of the measure say it is an infringement of rights. Backers say the government has the right to impose safety measures. Penalties: $10 for first violation and $10 per unbelted person in a car on subsequent stops. The bill now goes to the Senate. Insurance Editor: Jason Smith. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM