Reporting by Ben Berkowitz; Editing by Derek Caney, Dave Zimmerman

The recapitalization of bailed-out insurer American International Group Inc. is likely to close next week, a person familiar with the matter said Friday, as AIG shares touched fresh highs on news it was getting closer to the deal.

But the rally lost some steam by midday, as the prospect of a large share sale as soon as March revived dilution fears.

AIG said Thursday night its board had approved the issue of warrants to buy 75 million shares of common stock, which are conditioned on all the parties to the recapitalization agreeing it can close by Jan. 14.

While that does not in itself guarantee the deal will close next week, it was one of the last key steps to finish the transaction. AIG said it will issue a statement on Jan. 12 disclosing whether all the parties have agreed the deal can close by Jan. 14.

A person familiar with the situation, who was not authorized to speak publicly on the matter, said the board’s approval of the warrant issue showed the highest degree of confidence the deal will close next week.

Under the terms of the deal, the Federal Reserve Bank of New York will be repaid in full and the U.S. Treasury Department will be left with a 92.1 percent stake in AIG.

The government is contemplating two stock offerings this year to sell most of that stake, people familiar with the plan told last year. The rest would then likely be sold in 2012.

AIG received the largest bailout of the credit crisis, at one point owing the U.S. government just over $182 billion.

DILUTION FEAR

AIG shares have typically retrenched in recent months whenever there is news on the size or timing of a potential government share sale, given the massive dilution it will cause for existing shareholders.

The source said Friday the company is targeting this March for the first share sale, but due to the complexity of the situation a sale in May was more likely. The amount to be sold is yet to be determined and will depend on AIG’s share price at the time.

Linus Wilson, a professor of finance at the University of Louisiana at Lafayette, estimated on Friday the taxpayers’ paper profit on the AIG deal could come to $35.6 billion if the warrants trade at the price he expects.

AIG shares were up 1.7 percent at $61.45 in late-morning trade, off earlier highs of $62.86. Through Thursday’s close the shares were up 34 percent since the Sept. 30 announcement of the recapitalization.

The company has been busy on multiple fronts in the last 24 hours, in addition to the warrant issue.

Late Thursday AIG said it had agreed in principle to pay $450 million to settle a lawsuit with rival insurers over workers’ compensation premiums. On Friday, Taiwanese insurance regulators promised a swift review of AIG’s pending sale of insurer Nan Shan Life.

- reuters.com -

For many drivers, trying to figure out where auto insurance premiums are headed is like trying to catch butterflies: just when you get close, they fly off in another direction.

Many indicators that analysts typically use to forecast premiums have been in flux. Highway miles driven nationally have risenbut not as much as last year, and the millions of unemployed drivers are using their cars less than ever. The number of fatal accidents has steadily fallen, but the cost of medical care and car repairs has risen. Auto insurance-related fraud has made a comeback, but tort reform in some states has reduced the number of legal settlements stemming from accidents.

“There isn’t a nice clean trend,” said Brian Sullivan, editor of the Auto Insurance Report newsletter. “Instead, you have a churning sea,and companies have no idea what to do with it.”

Statistics on premiums are slow to be collected, which makes forecasting difficult. Through 2009, the average amount that families spent on auto insurance fell for five consecutive years, but rates in some parts of the country started to inch up in 2010.

Given the likelihood that rates will rise furtherin some regions, analysts say consumers should review policies to seek ways to offset any increases. A recent survey by Consumer Reports, for example, indicated that 14 percent of subscribers would have saved money if they had switched insurers.

But experiences vary widely. Unlike, say, the price of new cars, insurance premiums are based largely on the driving habits, financial wherewithal and the value of the car. States also regulate premiums, so rates differ widely among and within states. Drivers who live in areas where the car theft rate is high are likely to pay more than those who live in safer neighborhoods.

Kirstie Hague, who moderates forums at Edmunds.com, said that drivers who post online comments about their auto insurance premiums tend to say they are paying more for insurance these days, though a handful also say they have received deep discounts of late. Some drivers also complain that their rates went up with no warning or explanation from insurers.Though she considers the $85 a month she pays to insure her 2003 Infiniti G35 expensive, Ms. Hague has stuck with State Farm because she likes how the company has handled her claims.

“I’ve had this agent for 20 years,and I’m comfortable with him,” she said.

Her experience is not unusual. Ac- cording to Jeremy Bowler, an analyst at J. D. Power & Associates, 9 out of 10 customers renew their existing policies. Many consumers, he said, are willing to pay more for their coverage if they believe they are getting adequate service. Still, the economic downturn has had a notable impact on drivers, especially those who have lost jobs, said Robert P. Hartwig, president and chief economist of the Insurance Information Institute.

“The frequency of accidents has also fallen because people cut down on vacations, going out less to the mall and commuting less,” Mr. Hartwig said. Of course, “as soon as the economy recovers, people will get back in their cars.”

Still, consumers who are driving less can inquire about discounts, and they can ask about technology that lets in- surers monitor the miles they drive, a pay-as-you go insurance plan offered by Progressiveand other insurers.

Drivers are holding onto cars longer, and older cars cost less to insure. Over the last year, the average age of cars on the road rose by 4.5 months, to 64 months, according to R.L. Polk & Com- pany, which compiles automotive data.

Some drivers drop collision coverage because the cost of fixing old cars often exceeds their value. John Swigart, chief marketing officer of eSurance, said that since the economic downturn,the number of policyholders who carried only liability coverage had jumped 10 percent. “You can chop off 30 to 40 percent of your premiums by not covering your car when it gets damaged,” he said.

In addition to the growing number of older cars on the road, the percentage of uninsured drivers rose to 18.1 percent in 2009, from 17.4 percent a year earlier, according to CNW Research. The economy is a big reason: a percentage point increase in the unemployment rate leads to a rise of 0.75 percentage point in the number of uninsured drivers, said Michael McShane, a risk management professor at Old Dominion University.

The rise in the number of uninsured drivers has prompted more consumers to buy uninsured or underinsured mo- torist insurance, which covers medical costs and car repairs if the policyholder is struck by someone without coverage.

Another result of the economic downturn, analysts say, is that companies are increasingly using so-called insurance credit scores to help them determine a driver’s potential risk. These scores are determined using a blend of more than two dozen indicators, including financial credit scores — and for many people, these have dropped.

“Credit scores are a very large part of how they determine your credit-based insurance score and your rates,” said Jeff Blyskal, a senior editor at Consumer Reports, who said consumers should ask to be rescored by their insurers every year. “You’re talking about thousands of dollars of difference from the top to the bottom.”

- nytimes.com -

Although Apple’s iPad warranty will protect buyers for the first year of ownership from technical defects, it will do nothing to protect owners in the event of accidental damage. Considering that the vast majority of iPhone failures are due to accidental damage or handling issues, there is little reason to expect a different situation with the iPad.

That said, many of you are interested in exploring extended/additional protection options for your iPad. Though there are many routes to take, these are the most highly recommended.

Third Party iPad Insurance

Several companies’ insurance and warranty solutions are intended serve the needs and wants of consumers who have made significant investments in technology.

SquareTrade, who has been in business since 1999, offers technology warranties intended to provide coverage beyond the manufacturer warranty offered with many devices. Should your iPad meet an untimely fate (i.e. spills, drops and other accidents), SquareTrade promises to fix it or pay you the full purchase price of the device, all within five days.

SquareTrade’s warranty plans have received near perfect consumer ratings on NexTag and Epinions, and the company has received an A+ rating from the BBB (Better Business Bureau). As a result, SquareTrade has sold well over one million warranties to date. SquareTrade offers coverage for either 2 or 3 years, at a price starting at $3.99 per month.

Worth Ave. Group insurance is another option that protects your iPad not only from accidental damage and spills but also covers theft, fire, power surges, natural disasters, and vandalism. Worth Ave. Group policies are true insurance with unlimited claims during the coverage period and a low $50 deductible. With a persistent Worth Ave. Group policy, you’re always covered after the annual premium is paid.

Worth Ave. Group iPad insurance can be purchased anytime after you buy your iPad for a coverage period of 1-3 years. Claims might require police reports or other documentation, however turnaround on iPad policies is normally one week or less. Although Worth Ave. Group does not cover manufacturing defects, the extensive list of covered damages are more likely to happen beyond the first year of iPad ownership.

Homeowners / Renters Insurance

If you have homeowners or renters insurance, you may be able to cover your iPad through an extension to your existing policy. Adding your iPad to an existing insurance policy is often considerably less expensive than other solutions, but can be complicated.

If you decide to insure your iPad this way, be careful to check with your insurance company on how your deductible works in regards to personal electronics claims. If your deductible is $500, chances are you’re not getting a very good deal. Make sure to lower your deductible (which would bring on additional costs) or get documentation from your insurance company which states that your extended coverage is not subject to your standard deductible.

Extended Credit Card Protection

Many gold, platinum and other credit cards offer extended purchase protection which in many cases effectively doubles the manufacturer’s warranty on your device. While this will not provide any accidental damage protection, it may be free of charge if you purchase using your credit card.

Whichever option you choose, protecting your shiny new iPad with some sort of insurance policy can help protect your bank account in the event of the unexpected.

- theipadguide.com -

Business Insurance

This year Business Insurance expanded the program to take in additional categories of businesses in the commercial insurance industry. This year’s program honors top employers from the following types of companies serving risk and benefits managers:

• Agents/brokers
• Property/casualty insurers
• Group life/health insurers
• Reinsurers
• Third-party administrators

Within each of those categories, companies were broken down by size for ranking purposes into three groups: small companies-those with 25 to 249 employees; medium-size companies-those with 250 to 999 employees; and large companies-those with 1,000 or more employees.

While the companies were broken down by category and size for ranking purposes, to make the Best Places to Work in Insurance list each company had to demonstrate that it meets or exceeds a minimum standard of excellence in a variety of employment-related metrics, measured against other employers in this industry as well as other companies nationwide. This information was drawn from a two-part survey conducted of all participating companies. One part of the survey evaluated employees’ workplace experience and company culture, and the other gathered information on the employer’s benefits, policies, practices and other information.

Business Insurance conducts the annual Best Places to Work in Insurance program in partnership with Best Companies Group, an independent workplace excellence research firm that manages numerous similar regional and industry programs in the United States and Canada.

- businessinsurance.com -

Shopping for health insurance, whether for humans or pets, is confusing. So many options. So many exclusions. We can’t predict the future — what plan will best suit our needs and grow with us? Asking questions is the first step to ruling out plans that won’t work and finding plans that will. Assistance with finding a health plan that offers the best coverage and fits within the budget is the goal of this article.

The following tips and information have been provided by Veterinary Pet Insurance (VPI). Objective questions such as these are what consumers should be asking when shopping for any insurance policy. Your veterinarian may also be able to offer information or recommendations specific to your pet’s health care needs.

1) Company Stability

Pet health insurance has been available in the United States for more than 25 years and over the last decade has grown to become a strong, viable industry – but very few companies have longevity in the market. When researching a pet insurance company, it is important to know how long it has been in business, and if it is financially stable. What is the rating of the company’s underwriter, and how long has it been with that underwriter? Ensure that the statements the company is making regarding strength and longevity apply to its business in the United States. Some companies are franchise operations from Europe and other parts of the world, and thus, have far less actual experience doing business in the United States.

2) Certified and Trained Professionals

Does the company have in-depth veterinary knowledge? A quality pet health insurance provider should have thorough knowledge of the veterinary and insurance industries, and it should have trained veterinary professionals on staff.

3) Veterinary Recognition

Is your veterinarian familiar with the pet health insurance company he/she recommends, and does your veterinary office staff recommend it? Inquire if the person making the recommendation is receiving financial incentives for suggesting a particular company.

4) No Provider Networks

Policies should allow pet owners to visit any licensed veterinarian and not require them to visit a specific network of hospitals or practitioners.

5) Immediate Coverage on Effective Date

All policy coverage should be available on the effective date of the policy. Some companies delay coverage of illnesses and wellness procedures for an additional amount of time beyond the effective date.

6) Wellness Coverage

Preventive care is critical to the long-term health of a pet. In order to encourage and remind pet owners to take their pet to the veterinarian on a regular basis, the company should offer coverage for common preventive treatments and procedures: wellness exams, vaccinations, heartworm protection, spay/neuter, teeth cleaning, prescription flea control, etc.

7) Broad Coverage for Illnesses

Policies should include coverage for prescription drugs, dental illness and chronic conditions such as allergies and diabetes.

Continued Coverage for Chronic Conditions

Does the company consider conditions treated during your pet’s policy term to be “pre-existing” upon renewal? Do benefit allowances renew with each new incident throughout the lifetime of your pet’s policy? Is there a lifetime maximum benefit? Companies should continue to cover conditions as long as the policy remains continuously current, without charging you additional premium.

9) Coverage Away from Home

If your pet is injured while straying away from your home, or is treated by a veterinarian while you are traveling, is this covered? A pet insurance policy should be effective whether your pet is in your home, at the neighbor’s house or accidentally lost. Also, as previously noted, you should be able to visit any licensed veterinarian anywhere while traveling.

10) Full Transparency Regarding Reimbursements

Does the company use a schedule of payments, such as a benefit schedule, or does it use a usual and customary fee list? It should be clearly communicated to policyholders which of the two payment programs is being used, what is covered, what benefits are available and how the list is developed.

11) Transparency in Coverage

If the company claims to cover hereditary and congenital conditions, are the benefit limits for these conditions enough to cover treatment? For example, a company may claim to cover hereditary conditions, but then only offer a $200 lifetime maximum benefit.

12) Physical Exams

How often does the company require physical exams? Some companies, for example, require a physical exam every year in order to maintain coverage.

13) Preauthorization for Treatment

If a condition or treatment is covered under the policy terms, no preauthorization for treatment should be required.

14) Claims Submission

Companies should allow policyholders to fax or mail claims, and there should be a reasonable time limit on submitting claims. If a claim is denied, there should be a review process in place available to the policyholder.

15) Premium Increases

Premium increases should be based on your pet’s age and not on the amount or number of claims filed.

16) Policy Cancellation Penalties

There should be no penalty for canceling your policy, whether because of choice or loss of the pet. Companies should reimburse the policyholder all unearned premium.

- about.com -

The Insurance Institute for Highway Safety revealed on Dec 20th  its picks for the safest vehicles of 2011.

Sixty-six models — including 40 cars, 25 sport utility vehicles and one minivan — earned the Top Safety Pick award. Only 27 vehicles received that distinction last year after the Insurance Institute added a roof-strength parameter to its test criteria.

As 2010 progressed, 58 vehicles were ultimately named Top Safety Picks. Owing to automakers’ efforts to strengthen roofs and make changes to air bags, 2011 begins with a much larger list.

Hyundai (including Kia) and Volkswagen (including Audi) are the most heavily represented brands, with nine awards each. General Motors (Buick, Cadillac, Chevrolet and GMC); Ford (including Lincoln) and Toyota (including Lexus and Scion) each have eight winners. Subaru, with five awards, is the only automaker with a winner in each of the categories in which it competed.

The award recognizes vehicles that do the best job of protecting passengers in the institute’s crash testing. These are vehicles that earn the highest rating of Good (on a scale of Good, Fair, Marginal, Poor) in the institute’s front, side, rollover — which measures roof strength — and rear-impact tests. They also must be equipped with or offer electronic stability control as an option.

In 2009 more than 12,000 people in the United States died in frontal crashes, more than 6,000 in side impacts and more than 8,000 in rollovers, according to the institute.

Hyundai and Chrysler made marked improvements in ratings following the redesigns of some popular models.

The Hyundai Tucson and its twin, the Kia Sportage, earned the Poor rating for roof strength in 2009, but their redesign helped them become Top Safety Picks for 2011.

The previous-generation Jeep Grand Cherokee, though equipped with head side-curtain air bags, was rated Marginal for side-impact protection, but the 2011 model, now with torso air bags, earned a Good rating and is a 2011 Top Safety Pick.

“The good news for consumers is how quickly automakers are responding to new information about how to make vehicles safer,” said Adrian Lund, the institute’s president.

“We are very pleased with the progress that is being made, especially this latest round with roof strength,” he continued. “The stronger you make the package, the easier it is to protect the fragile contents inside of it.”

- nytimes.com -

You’ve spent years and a lot of money on your collection – but have you thought about insurance? What happens if something happens to your collection? What happens if a natural disaster strikes, will your insurance cover the loss of a collection? What about a simple case of clumsiness? Will your current insurance cover accidental breakage of a single piece or two?

Unfortunately the answer is not always good news. Yes, if you have home owners insurance your collection will most likely be partially covered, but it could be lumped in with other personal property, such as furniture, lamps. Dan Ramsey of IIAOK, says to ask yourself “Do I own or collect anything that is unusual, of extraordinary value, or special interest? If the answer to this question is “yes”, more than likely you need to discuss this matter with your insurance agent.”

Talk to your homeowners insurance agent to find out if a special rider or separate insurance policy can be written for your collection. Or you might want to do it through an insurance company that deals specifically with collectors.

Separate Policy with Homeowners Insurance Company

For several years I had a separate insurance policy (connected to homeowners insurance) to cover a glass ornament collection. The policy had a lower deductible limit than homeowners policy, but to be honest it was a bit of hassle keeping up with the listing of each separate item when it was purchased. I felt the price was reasonable, winding up to be about the price of one ornament.

Policy with Specialist Company

Another insurance option is completely separated from the homeowners or rental policy one might have. The policy is purchased from an insurance agency that specializes with antique and collectibles. The policies will cover your collections, be it stamps, coins, pottery or even muscle cars. Since the agencies are set up to insure antiques and collectibles, a policy holder will be dealing with a knowledgeable person when and if a claim is made.

Prices for this type of insurance ranges from $48. to $75. per $10,000, a small price to pay for piece of mind.

Two well-known companies that insure collections are: American Collectors Insurance and Collectibles Insurance Services, LLC. The companies offer similar products from different insurance companies. The few small differences in the policies will help you make the decision on which one is the best fit for you and your collection.

The most important differences appear to be rates, claims on breakage/theft of multi-piece or pair items and deductibles.

- about.com -