ALABAMA TORNADOES Insurers are tallying claims from recent tornadoes that swept through Alabama, killing 12 and injuring dozens. Hardest hit was an affluent area just south of Tuscaloosa, where hundreds of homes and autos were damaged. A Winn-Dixie Stores Inc. supermarket under construction in that area was destroyed. The store was "nothing but a pile of rubble," said a spokesman for State Farm Group, who toured the area. The insurer does not cover Winn-Dixie. West Point Stevens Manufacturing, a textile manufacturer in Henry County, suffered about $2 million in damage to its plant when a tornado tore away the roof, according to Bob Will, emergency management director for the county. Murphy Feed & Seed, also in Henry County, suffered $200,000 to $300,000 in damage, Mr. Will said. Many of the fatalities were in a mobile home park that was ravaged by the high winds about 60 miles south of Birmingham. State Farm expects to pay around $15 million in claims from Alabama homeowners and possibly as much as $1.2 million in auto claims from the Tuscaloosa area. Alfa Insurance Group, based in Montgomery, Ala., said its claims from the storms that moved through the state are expected to total around $16 million.

CORPORATE MANSLAUGHTER CASE The U.K. Director of Public Prosecutions, David Calvert-Smith, has ruled that the U.K. general manager of a Dutch-owned company can be tried for manslaughter. Richard James Martell will face a charge of manslaughter by gross negligence over the death of 24-year-old Simon Jones at Shoreham Docks, near Brighton, England, in April 1998. The company, Netherlands-based Euromin will also be charged with corporate manslaughter. The trial is expected to begin next year. Mr. Jones was crushed to death by a crane shortly after starting work at the docks. His family's lawyers charge that he received no training for the job of unloading cargo and was working alongside two Polish crewmen who spoke no English. To date, just three of the six corporate manslaughter cases taken to court in the United Kingdom have been successful. In order to secure a corporate manslaughter conviction, prosecutors must prove that a "controlling mind" of a company, such as a chairman or senior manager, was at fault. The U.K. government is currently reviewing proposals that would make it easier for manslaughter charges to be brought. Representatives of Euromin could not be reached for comment.

NICHOLS JOINS NEW YORK LIFE Former Kentucky Insurance Commissioner, George Nichols III, will join New York Life Insurance Co. as a senior vp and assistant to the chairman, beginning Jan. 8. Mr. Nichols, who last month resigned as Kentucky's top insurance regulator, will be based in New York. His replacement, Janie A. Miller, was the state Insurance Department's deputy commissioner of health insurance. Kentucky Gov. Paul E. Patton recently announced her appointment, which is subject to confirmation by the state Senate. Ms. Miller, 45, has nearly 24 yeas of experience in the development and administration of health care programs. In addition to health issues, Ms. Miller said she also plans to focus on agent licensing and market conduct.

SCOR AUTOMATION French reinsurer SCOR S.A. has automated all transactions with two of its major clients. A spokeswoman for SCOR confirmed that the company will now be able to carry out fully automated transactions with two major international brokerage firms. "These structured transactions, which already concern the data processing of nearly 1,000 treaty reinsurance accounts, significantly improve our efficiency in terms of client and partner relationships and increase the productivity of our group," Serge Osouf, president and chief operating officer of Paris-based SCOR, said in a statement. SCOR's announcement follows the launch earlier last year of a program to encourage the introduction of international insurance industry e-commerce standards. That program was developed and launched by WISe, a London-based industry group.

CNA TO MAKE REPAIRS CNA Financial Corp., in a settlement agreement with the City of Chicago, will pay a $250,000 fine and replace nearly all of the windows in its 45-story headquarters in Chicago. The agreement reached last month was prompted by an October 1999 accident in which a woman pedestrian was struck and killed by a large piece of glass that fell from one of the skyscraper's windows. "We have been working around the clock with the city since the incident to find the most comprehensive safety plan for our building," a CNA spokesman said. The insurer has applied an adhesive to all current windows and has already replaced 800 of the 2,900 windows to be fixed, he said. The project, which will cost CNA an estimated $9 million, is expected to be completed in June 2003. CNA's spokesman declined to comment on a pending civil lawsuit brought by the family of the victim.

BERKSHIRE BUYING JOHNS MANVILLE Berkshire Hathaway Inc. has announced it will acquire Johns Manville Corp. for $1.92 billion in cash, adding to a string of building products makers that Berkshire has bought or invested in, including another former asbestos producer, USG Corp. In November, Berkshire disclosed that it had acquired a nearly 15% stake in Chicago-based USG, a manufacturer of gypsum wallboard that faces past asbestos-related liabilities. In the last year, Berkshire has also bought Shaw Industries Inc., a carpet manufacturer; paint producer Benjamin Moore & Co.; and Justin Industries, a leading brick maker. "Johns Manville fits well in the Berkshire family of successful enterprises with global brand recognition," Berkshire Chairman Warren Buffett said in a statement.

UNITEDHEALTH MOVES UnitedHealth Group Inc. has named Jeannine Rivet as executive vp. Ms. Rivet, who previously was chief executive officer of the Minneapolis-based company's UnitedHealthcare subsidiary, will also serve as CEO of Ingenix, a group subsidiary that provides health care information. Replacing Ms. Rivet as CEO of UnitedHealthcare is Robert Sheehy, who has served as president of the health maintenance organization since 1998. In addition, Patrick Erlandson has been named chief financial officer of UnitedHealth Group. Mr. Erlandson currently serves as the company's corporate controller and chief accounting officer.

BRIEFLY NOTED PacifiCare Health Systems Inc. has named Howard Phanstiel as the company's new president and chief executive officer. Mr. Phanstiel has been the acting president and CEO of the managed care company since October. He joined the company in July as executive vp and chief financial officer.... Chubb Corp. subsidiary Chubb Executive Risk has become a national sponsor of the Women Presidents' Organization, a national, non-profit peer-advisory group for women executives. As a sponsor, Chubb Executive Risk will advise members of the New York-based organization on protecting against various risks....PartnerRe Ltd. has named Graham Dimmock as chairman and president of its Paris-based SAFR PartnerRe reinsurance unit, effective Jan. 1. Mr. Dimmock, who joined PartnerRe as an executive vp in 1996, succeeds Herve Cachin, who is retiring.... Aon Corp. unit Combined Insurance Co. of America has completed its purchase of the accident and health business of Reliance National Insurance Co. Under an agreement reached last year, Combined will retroactively assume Reliance National's accident and health book effective Aug. 1, 2000.

Endtext

NewsView(r) 2000 Library Infobase