Monthly Archives: October 2011

Allstate Closes on $1 Billion Acquisition of Esurance, Answer Financial

 

Insurance Journal

The Allstate Corp. said it has obtained all required regulatory approvals and closed its acquisition of Esurance and Answer Financial from White Mountains Insurance Group Ltd.
The purchase price was approximately $1 billion. The transaction is expected to be non-dilutive to Allstate’s earnings in the second full year of ownership.
Esurance provides personal auto insurance direct to consumers online and through select agents, including sister company Answer Financial.
Allstate announced the deal in May.
Allstate’s announcement said that in the coming months, the Esurance management team “will work to enhance its operational and marketing effectiveness by leveraging Allstate’s brand, pricing expertise and claims capabilities.”
Allstate said it will maintain the current headquarters of
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100 Felony Charges Filed Against Alleged Calif. Insurance Fraud Ring

 

By Bob Graham  Insurance & Financial Advisor

More than 100 felony charges have been filed against suspects allegedly involved in an elaborate, organized fraud ring operating in the San Francisco area that allegedly cost 11 insurance companies up to $500,000 in losses.

Indictments were handed up by a Contra Costa County, Calif., grand jury Sept. 22 in connection with the two-year investigation into the alleged false claims, according to California Insurance Commissioner Dave Jones.

“The sheer magnitude of this case demonstrates the extreme degree of conspiratorial lengths that these suspects colluded to perpetrate,” Jones said in a statement. He added that his office was assisted by investigators from the California Highway Patrol and
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Small Businesses Hurt by California’s Lawsuit-Friendly Legal Climate

 

By John Kabateck  Fox & Hounds Daily

It isn’t easy being a small business owner in California with excessive regulations, the threat of higher taxes, and a lengthening recession. It’s no wonder most never know from one day to the next if they will be able to keep their employees on board and their doors open. Perhaps one of the worst challenges they face is a horribly broken legal climate that creates the opportunity for abusive lawsuits at every turn.

Recently, NFIB polled its members about the affects of lawsuit abuse – and the results were sobering. More than one-third of small business owners have been sued in the past five years
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Residents Concerned About Wildfire Letter Sent by Lawyers

 

By Connie Tran  BakersfieldNow.com

Some residents in Tehachapi have received a letter from a law group based out of Los Angeles, telling them they can help them with their insurance policy regarding the Canyon Fire. An Eyewitness News viewer was concerned it was a scam.

The wildfire scorched dozens of homes in the area last month, some homes damaged more severely than others. Now, some residents in the area, such as David Lawrence and Sally Periman, are receiving a letter from Prime Law Group, saying them can help locals get the most out of their insurance policy from Canyon Fire damage, even if that means taking their insurance provider to court for
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California D.A.s Get $23M in Grants to Battle Auto Insurance Fraud

 

Insurance Journal

 

Maria Ramirez’ job heading the battle against automobile fraud in the state’s most populous county is tough enough. But her division is “operating on fumes” amid a rise in that type of crime and scaled-back local government budgets, so the announcement of several million in funding grants gave her reason to cheer.
District attorneys’ offices around California will be getting a part of $23 million in grant funding to battle automobile insurance fraud.
Insurance Commissioner Dave Jones on Tuesday announced funds totaling $15.2 million were distributed to 35 counties for the regular auto insurance fraud grant program and $7.6 million were distributed to 10 counties for their organized auto fraud
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