FUTURE ONE - That's the name of a group of more than a dozen insurance companies spun off from the Independent Insurance Agents of America. The Future One group recently completed a study outlining key regulatory changes needed at state and federal levels if insurance companies are to bridge the e- commerce gap between themselves and other financial services companies. The issues: complex licensing requirements and procedures, specific across-the-board advertising standards, repeal of countersignature laws and evaluation of the NAIC's existing Model Privacy Act.

IT'S POLICY ADMINISTRATION, STUPID - That's what many say is the real benefit of the Internet to insurers. Many insurance policies may simply be too complex to be sold online, but the opportunity to enable policyholders to view their policies online and make routine changes holds the potential for significant cost savings, according to a report from Meridien Research ("Internet- based Insurance: Cutting Costs and Gaining Customers").

DROPOUTS - Aetna's problems with doctors and hospitals dropping out of its managed-care network appear to be spreading. Last summer, 430 Dallas doctors departed in a well-publicized dispute over fee reimbursements. Now the acrimony has spread from California to Pennsylvania, Kentucky to West Virginia, with the most serious dispute in Louisville, where 1,800 doctors have announced plans to terminate their contract with Aetna in July.

Y2K KIT - The White House and SEC have joined forces to educate investors about the U.S. financial services industry's readiness for the year 2000, as well as what investors can and should do to prepare for the new millennium. The Year 2000 Investor Kit is available through the NASD's Web site (http://www.NASD.com), by calling 1-888-227-1330 or by sending an e-mail to y2k@nasd.com.

WIN SOME, LOSE SOME - The results are now official...over 81% of voting CFP members ratified their organization's merger with the IAFP, creating a new, unified organization...the Financial Planning Association. Proving that you can't win them all, however, CFP officials recently met with New York City representatives to stress in person their objections to some city welfare case workers being called "financial planners." The outcome? The Investment News headline says it best: "NYC to CFP: Drop dead; case workers are financial planners too."

GOING GLOBAL - A.M. Best Co. recently continued its global expansion by acquiring Toronto-based TRAC Insurance Services Ltd., a Canadian insurance rating agency, and renaming it A.M. Best Canada Ltd. In 1997, A.M. Best opened a London office, acquired London-based Financial Intelligence & Research Ltd., and renamed it A.M. Best International.

TIGHT GRIP - Allstate has been hit with another lawsuit alleging that, despite converting agents to independent-contractor status three years ago, it continues to treat them like employees, requiring that they sell only Allstate products, but without employee benefits. The suit was filed in California and, if class-action status is approved, would affect about 1,500 agents in California. Meanwhile, Allstate announced that it has agreed to buy CNA's auto and homeowners personal lines unit in a complex transaction valued at $1.2 billion. The deal will boost Allstate's market reach through CNA's network of 3,800 independent agents.

LARGEST MARKET - The Nasdaq stock market claims that, based on dollar volume, it is now the largest stock market in the world, trading an average of $40 billion per day. Since 1990, the Nasdaq has increased from 25% to 52% of U.S. dollar volume, while the NYSE's share has dropped to 46% from 73%. Meanwhile, the NASD announced plans to extend Nasdaq trading into the evening, possibly as early as September. At the same time, the NYSE is delaying its plans to extend trading hours until June 2000, after the planned shift to reporting stock prices in decimals rather than fractions.

LTC TROUBLE - This from National Underwriter...the NAIC is accusing the insurance industry of breaking its promise concerning the longer-term viability of LTC products. Tim Foley of the NAIC said, "This is the disaster we have talked about for two or three years. This is the bubble that is going to burst." Concurrently, a NJ class action suit has been filed over unexpected LTC rate increases.

NEW EXAM - The North American Securities Administrators Association (NASAA) announced that, beginning in January, before being registered by a state, new investment advisors will have to take a 130-question competency exam that covers such areas as economics, investment vehicles and strategies, and ethics. The new test will replace the existing 75-question exam that focuses primarily on securities law and ethics.

$1 BILLION AND CLIMBING - Prudential reports that it has sent $1 billion in direct payments to 250,000 claimants in its huge class-action settlement. This figure does not include the value of other remedies, such as paid-up policies. Another 650,000 claimants have been notified of the settlement Pru proposes to pay them. Of this group, 48,000 to date have told Pru they plan to use the settlement's arbitration provision to appeal their award. Prudential has set aside $2.6 billion for payments to claimants and expects the amount to be sufficient. In addition, the company has paid about $70 million in penalties to the states. No word on the cost to administer the settlement.