A LOOK BACK: 1967-1971Posted On: Oct. 29, 1997 12:00 AM CST
Racial trouble in Milwaukee prompts the city to seek catastrophe insurance that would include coverage for race riots. However, the city receives no bids on the coverage after sending letters to 47 insurance companies and associations. The city says it plans to try again.
In its inaugural editorial, Business Insurance writes in part: "In this issue, we've focused on this summer's riots as tangible evidence of the tightening insurance -- and reinsurance -- markets, but we recognize that the riots are by no means the cause of the capacity problem. A series of natural catastrophes, such as Hurricane Betsy, which caused more than $600 million worth of damage, the McCormick Place fire (in Chicago) and various other floods and hurricanes, have all contributed to the shrinking market."
The directors of the Golden Gate Bridge in San Francisco "regretfully" accept a three-year multiperil insurance contract that covers the bridge for $46 million, less than a third of its total value and almost $10 million less than the amount for which the bridge had formerly been insured. The San Andreas earthquake fault is a reason cited for the reduced coverage. Meanwhile, Business Insurance learns that New York's George Washington Bridge is covered for the maximum amount.
Sinclair Oil Corp. and its broker, Marsh & McLennan, put together an all-risk liability policy that covers automobile and public liability, workers compensation and employer's liability and protection and indemnity insurance.
The new comprehensive general liability policy draws criticism from buyers, insurers and agents at an American Management Assn. conference.
Proposals to develop a formula for federal drug reimbursements and to include drugs in Medicare are defeated in the Senate's version of the Social Security legislation. In light of a Ford Motor Co. contract that agrees to provide prescription drug benefits to the automaker's workers, benefit managers are predicting that such benefits will become standard.
Dr. Joseph W. Ehrenreich, director of the University of California's research institute for business and economics, tells a group that buyers must unite their efforts and use bargaining power to reduce health care costs.
A capacity shortage at Lloyd's of London prompts the market for the first time in its history to ask for investment from outside the United Kingdom in an effort to get new capital into syndicates.
About 615,000 railroad workers -- more than 95% of unionized rail employees -- agree to a health and welfare plan that is the largest U.S. private benefit plan, with annual premiums of $220 million.
Sixty-two children born malformed after their mothers took the drug thalidomide will be paid settlements that could total $6 million for the insurers of the company, Distillers Co. Ltd., that made and marketed the drug. As part of the settlement, the families are withdrawing allegations of negligence against the company.
In the wake of the assassination of Sen. Robert F. Kennedy, the American Risk & Insurance Assn. will set up a commission to probe the social responsibility of the insurance industry in a complex, sophisticated society. In the same issue, BI runs an editorial that takes up half the front page and bears the headline, "Guns must go!"
Hurricane Betsy will cause Lloyd's to post the first loss in its 280-year history when 1965 operating figures are released. However, Chairman Ralph Hiscox expects "marked improvement" in 1966 and 1967.
P. Lorillard Co. assigns group life insurance coverage for one division's 235 employees to the North Carolina Mutual Life Insurance Co. The deal, involving a $2.2 million policy, is believed to be the first of its kind in the United States between a large corporation and a black-owned company.
Baseball's Satchel Paige joins the Atlanta Braves as a player and pitching coach to get in the 158 days of service he needs to meet a five-year qualification for pension benefits. Mr. Paige's minor league years were not credited.
Blue Cross of Oregon looks at home health care as a way to cut the high cost of hospitalization.
Colonial Stores President Ernest F. Boyce proposes cafeteria benefits and suggests employees be allowed every five years to choose their benefits.
American Telephone & Telegraph Co., the world's largest private employer, will pick up the cost of the company's group life and basic medical programs, beginning in 1970.
Medigap policies are one of the new benefits offered by the American Assn. of Retired Persons and the National Retired Teachers Assn.
Lloyd's of London names the first seven U.S. members of what had been an all-British underwriting society.
Coverage for treatment of drug and alcohol addiction is extended to most of the nation's 2.5 million civil service employees as part of regular medical benefits.
Lloyd's of London decides for the first time to admit women in January 1970. Women must be British and permanent residents, and they will do business through agents rather than conduct business personally in the market.
Student unrest causes headaches for campus insurance managers. "God knows what will happen in the future," says a lawyer involved in the insurance program at Brandeis University in Massachusetts.
More than 40 U.S. citizens are among as many as 160 killed -- about half were on the ground -- when a DC-9 bound for Miami crashes in Venezuela in the worst disaster in aviation history. U.S. Aviation Insurance Group is the sole reinsurer for hull and liability in the crash. The plane is insured for its full value of an estimated $4 million.
Malpractice insurance is canceled for Dr. Denton Cooley, who performed the first heart transplant using an artificial heart, after he performed the operation. Dr. Cooley and other surgeons on his team get coverage reinstated with another company.
Alexander & Alexander prepares to go public with an offering of 290,000 shares to the public and 10,000 to employees, making it the third-largest U.S. broker the third to go public.
The 5th U.S. Circuit Court of Appeals issues an 8-3 decision to overturn an earlier ruling that found American Tobacco Co. "absolutely liable" in the death of a lung cancer victim.
An insurer advises doctors prescribing birth control pills to get patients to sign statements acknowledging "awareness of the serious risks involved."
Business Insurance, through an investigation, learns of a manuscript insurance policy to cover the $1.4 million contract of Lew Alcindor, who signs with the Milwaukee Bucks. It is the largest player contract in sports history. Policy limits are rumored to be in excess of $600,000.
No special insurance is in place to cover samples of the moon in transit or in possession of scientists or universities. "There's no way to insure something that's irreplaceable," a spokesman said.
The Bahamas' Insurance Act of 1969, which calls for registration with the government, minimum capital reserves and reporting of financial statements, among other things, prompts U.S. captives to leave for locations such as Bermuda. Some leave upon introduction of the legislation, and others plan to leave after its enactment.
Hurricane Camille is called the most violent storm in U.S. history, but losses are not expected to reach the $700 million level of insured damages Hurricane Betsy caused in 1965.
Clothing workers in the Baltimore area pay 2% of their gross pay to finance a day care center for the children of working mothers. The center, which will accommodate 325 children, results from a collective bargaining agreement between area clothing companies and the Baltimore regional joint board of the Clothing Workers union.
Companies increasingly turn to computer printouts to communicate benefit plans to their employees.
Broker Frank B. Hall & Co. announces it intends to go public.
The cake for the wedding of Tiny Tim and Miss Vicki is insured for $1,000.
A survey by the Assn. of Insurance Managers in Industry & Commerce in the United Kingdom shows risk management is growing in stature there as a profession.
A Securities and Exchange Commission study that notes the "striking" change in pension fund asset distribution says private pension plans invested more than half their assets in common stocks in 1969.
The Continental Can Co. and American Can Co. institute a dental plan covering about 6,000 employees in what is believed to be the first uniform, nationwide, non-contributory dental program in U.S. industry.
Health insurers generally agree that group and individual policies will cover abortions in the event a New York state bill legalizing all voluntary abortions -- the most liberal in the country -- becomes law. The bill later becomes law in New York.
U.S. companies are not panicking over India's expected takeover of general insurance companies in the country and think that India will welcome them back in a few years.