Then discover how to use SPARDATA business appraisals to build relationships with wealthy business owners. 

OVERALL IMPACT – Early reports indicated that the events of September 11 would cost the insurance industry as little as $20 billion...estimates are now as high as $70 billion, with life company losses at $5 billion. Experts also predict lengthy inter-insurance company battles to determine "who is responsible to pay what to whom."  In reality, it will be years before the total insured losses are known.

COMPANY IMPACT - Apparently the four hardest hit insurers will be reinsurers General Re (Berkshire Hathaway) at $2.2 billion, Munich Re at $1.95 billion, Lloyd's at $1.9 billion and Swiss Re with $1.25 billion. Here are some others in no particular order: Erie, $6.7 million; Principal, $12 million; Prudential, $125 million; SAFECO, $25 million; St. Paul, $700 million; Kemper, $80 million; AEGON, $30 million; Hartford, $450 million; Liberty Mutual, $300 million; AIG, $500 million; AXA, $400 million; Allianz, $635 million; XL Capital, $700 million; Employers Re, $600 million; ACE Ltd, $400 million; PartnerRe, $400 million; Hannover Re, $365 million; CNA $350 million; Royal Sun, $220 million; Chubb, $600 million and a whole lot of others! (In all cases we have used the companies high estimates, since these numbers tend to inflate over time.)

WTC ATTACK NOT ACT OF WAR – Insurers say that the destruction of the World Trade Center was not an act of war, and therefore is covered under most insurance policies. Although President Bush has repeatedly called the attack an "act of war," it is generally accepted that the exclusion only applies in the case of a declared war between two or more sovereign nations.

PAY NOW, ASK QUESTIONS LATER - Insurers are taking an admirable approach to claims and paying victims' families despite an increased possibility of fraud. Insurers are working to expedite all reasonable life, property and casualty insurance claims and will go after fraudulent claims later. Many companies are dispensing with death certificates, accepting an affidavit in lieu of a death certificate, and honoring claims that seem reasonable.

INSURERS ASK HELP – The insurance industry is letting President Bush and Congress know they may need the government to assume a share of the cost of any further terror attacks. Quietly, the industry is making a pitch for tax breaks as a form of current relief.  There is particular concern about the health of the reinsurance industry.  One idea being floated is to establish a terrorism reinsurance pool, similar to the one in the U.K.

GOOD WORDS – In testimony before the House Financial Services Committee, Sy Sternberg, president and CEO of New York Life, said the following:

I am gratified by the way in which my company – and other companies in our industry – have responded to this national ordeal.  This is a time for the insurance industry to be visible.  This is a time for us to be charitable.  And this is a time for us to stand as a pillar of stability in a none-too-stable world.

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NAIFA CAREER CONFERENCE – The 2001 NAIFA Conference in Salt Lake City was marred by the events in NY and DC, but a complete success nevertheless. If you haven't attended a NAIFA conference in the past, it may be time to take look. The next meeting for producers is the Financial Advisors Forum set for April 18-20 in Dallas. Try to be there.
 
NINTH CUT THIS YEAR – Economists widely expect the Federal Reserve to reduce U.S. interest rates for the ninth time this year when it next meets, but they disagree over how deeply the Fed will cut in order to prop up the ailing economy. A .5% reduction is possible, but .25% is more likely.

LISTING RULES SUSPENDED – The Nasdaq Stock Market has suspended certain trading requirements until January in order to help companies remain listed on the exchange and to ease the economic turmoil following the September 11 attacks.  Specifically, the move exempts companies from meeting minimum share price (usually a dollar) and public float requirements.

SWITCH – Zurich Financial Services has agreed to sell its U.S. fund-management business, Zurich Scudder Investments, to Deutsche Bank AG for $2.5 billion and, in return, to acquire control of several of the German bank's insurance units.  The two companies also agreed to an alliance in which they will distribute each other's products.
 
BUSINESS AS USUAL - It is imperative that America return to business as usual and LIMRA is doing their part. While several of their meetings were canceled, all have now been rescheduled. CEO Rich Wecker announced that the LIMRA Annual Meeting will take place in Toronto from Oct. 28-30 as scheduled. "Just as the country and the world have come together, it is more important than ever for the leaders of our industry to come together to discuss our changing world and network with colleagues." Let's all get over this false fear of flying and do our share to get American business back to business!

LIMRA/SALVATION ARMY – LIMRA donated 500 copies of What Do You Do Now? to the Office of Disaster Relief at the Salvation Army.  What Do You Do Now? is a guidebook to help consumers cope with the death of a loved one. For details, contact LIMRA at 1-800-235-4672.
 

* How to Get Money Out of Retirement Plans Tax Free
* How I Sell 400 Long-Term Care Policies a Year!
* How I Have Grossed $3 Million Every Year for 10 Years
* How to Pack the Seminar Room Every Time
* The Sales Presentation that Gets Clients for Life

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RSVP – "I have been reading for days now that economists are worried about 'consumer confidence,' that a recession is 'inevitable.' My wife and I have thought it over and have decided to decline the invitation to the recession. We won't be attending." From a Motley Fool.

TAXPAYER DISASTER RELIEF – The IRS is providing tax guidance for individuals, businesses and charitable organizations impacted by the September 11th terrorist attacks.  Complete information can be found at http://www.irs.ustreas.gov/relief/.  In addition, the IRS has a special hot line for tax help relating to the attacks. Taxpayers needing aid can call the IRS toll free at 866-562-5227 for assistance with filing and paying their taxes.

ECONOMIC STIMULUS PLAN – In a private session with the Senate Finance Committee, Fed Chairman Alan Greenspan and former Treasury Secretary Robert Rubin are reported to have endorsed an economic stimulus package amounting to 1% of the nation's gross domestic package, or up to $100 billion, with the $40 billion emergency spending plan already passed by Congress included in that figure.  There was also general agreement that any tax cuts should be temporary, perhaps limited to a year or two, to guard against negative long-term effects.
 

NAIFA ADVISOR – The National Association of Insurance and Financial Advisors (NAIFA) and Standard & Poor's (S&P) have created a new website for NAIFA's 80,000 members. Located at http://www.naifaadvisor.com, it offers a full range of S&P's analysis of mutual funds, stocks, capital markets, and insurance company ratings, as well as new investment ideas, the ability to screen stocks or funds, run NASD-approved hypothetical illustrations, corporate research reports, insurer financial strength, and more. Check it out.

MEDICARE+CHOICE – At last count, 58 managed care plans have opted to no longer offer Medicare+Choice plans to Medicare recipients. Medicare+Choice allows those who opt out of traditional Medicare to join an HMO plan and pay a premium to receive extra benefits, such as prescription drug coverage. Over 500,000 older and disabled Americans will have to find other managed care plans or return to the traditional Medicare program.

NAILBA XX – The National Association of Independent Life Brokerage Agencies (NAILBA) great industry meeting is set for Dallas, November 15-17. It is a "don't miss" for all independent agency owners and executives. A special event this year will be the featured speaker...GEN Norman Schwarzkopf. Details at http://www.nailba.org.

INVESTMENT ADVISER DISCLOSURE – The SEC and the North American Securities Administrators Administration (NASAA) have unveiled a new web site that gives investors access to information on money managers, financial planners and investment advisers.  The Investment Adviser Public Disclosure site is located at http://www.adviserinfo.sec.gov. 

NAPP 2001 – The National Association of Philanthropic Planners (NAPP) will hold its Conference Philanthropy in Albuquerque from November 1-4.  The orientation of NAPP and its conference is on client advisors, so anyone interested in planned giving should find the conference of benefit.  Details are available at http://www.napp.net/conference_2001.htm. 
 

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TERM AT HISTORIC LOWS – It is a buyers' market, as term life prices drift downward. A Quotesmith.com comparison study of term life rates indicates all-time lows. "This is welcome news for life insurance shoppers who now wish to lock in low rates for many years to come." Suggest you help your clients do so.

CHANGING INVESTMENT OPTIONS – Under current regulations, investments in Section 529 college savings plans are locked in when the funds are deposited.  In Notice 2001-55, the IRS announced that, effective immediately, investment selections in a 529 plan can be changed annually, or at any time when the account's designated beneficiary is changed.

CUTTING FUTURE RETIREES' COVERAGE - Future retirees' health benefits are shrinking, according to a report by the Employee Benefit Research Institute. Current retirees are largely spared through legal protections, but future retirees face higher co-pays and contributions to their health insurance costs.

VIRUS INSURANCE – Computer Virus Transmission Insurance "kicks in" when anti-virus software and other preventive measures sometimes fail by covering the losses associated with business interruption. Check out Assurex International at http://www.assurex.com for details.

"LET'S ROLL" – God bless you, Todd Beamer, and all your fellow heroes on AA #93. God bless all the victims and other heroes of September 11th, and God bless America!