This past year was quite a year. We had bailouts, ponzi schemes, and unemployment. There was the inauguration of a new President, healthcare legislation, and the ongoing war in Afghanistan. And we topped everything off with pirates, pandemic flu and a balloon boy.

While this was taking place, PLUS continued to move forward due to the creativity, diligence and foresight of the PLUS volunteer leadership and staff. Here are some of the highlights from 2009:

We completed our transition into the new RPLU exams based on the 23 module PLUS Curriculum.  In addition to offering exams at Prometric centers worldwide, we also offer companies the opportunity to administer exams at their locations, making it easier to train employees in the elements of professional liability.

We held more that 40 local meetings this year, hosted by volunteer Chapter leaders in the United States, Canada and Europe. Dedicated volunteers also worked to host eight golf outings raising money for the PLUS Foundation.

We moved into the realm of social networking, adding Facebook, Twitter and LinkedIn as resources for PLUS Members and others interested in professional liability. They also began inviting guest bloggers to participate in keeping our messages fresh and humorous.

Starting with lowering our printing output and offering an electronic option for the PLUS Journal, we are working to help the environment by “going green” and conserving resources.

PLUS offered its first Webinar in conjunction with Advisen. This program was a success, with more than 400 people participating in the call.

PLUS held four large scale events this year (D&O Symposium, Medical PL Symposium, Professional Risk Symposium, and the PLUS International Conference). They attracted more than 4,000 attendees and brought in timely and topical speakers including Madeleine Albright, Eric Dinallo, Paul Keckley, Susan Hodgkinson, Marvin Zonis, Walter Bond, Dr. Robert Hartwig, President Bill Clinton and Malcolm Gladwell.

Next week we will post some of the things we’re going to be working on come the new year. For now, on behalf of the PLUS leadership and staff, thank you for your support of PLUS in 2009 and best wishes for a happy and prosperous 2010.

This picture sums up, for me, one of the best aspects of working in the professional lines insurance industry:

That first sentence was rather cryptic.  Allow me to elaborate. 

The photo above was taken last night at an annual holiday dinner which has occurred during the week between Christmas and New Year's Day for about eight years now.  Nobody remembers the exact year of origin. All of the participants worked together at AIG in the 1990s.  A few are still there, although most have moved on to other companies over time.  Despite working for competing firms, we still get together every year at this time to reminisce, catch up on everyone's news and to just have a good time. 

One of the traditions in recent years is that I invent a ridiculous bar game or two (which explains why Mike Kambos is wearing goggles in the photo below) and a few of us amuse ourselves until dinner is ready.  This year the games came to a halt when we lost the super ball somewhere on the floor of Harry's Italian.  I suspect that an annoyed restaurant employee found the ball and hide it on us.  In case you're interested, the person who was shooting the super ball had to wear the goggles for safety reasons (of course, that wasn't the real reason; I just wanted to inject some extra ridiculousness into the proceedings and the goggles were hard to pass up at the dollar store...)

The point of it all, however, is that we have a fairly close-knit community in professional lines and it's something that we don't always take time to reflect upon or appreciate.  I've never worked in investment banking or accounting or consulting, but my guess is that people in many other professions don't enjoy the camaraderie that we may take for granted.  It's something to think about as this decade ends and the next is about to begin.

I'm going to leave you with a few more photos from last night, but first I'd like to mention that next week I'm going to post some thoughts on things that I've learned in our industry over the past decade.  If you have any thoughts or lessons that you'd like to contribute, please e-mail me at LG727@aol.com. I can attribute your thoughts or post them anonymously, just let me know what you'd prefer (but if they're good I'll probably take credit for them either way...)

George Blume (PIA), Ray Santiago (Chartis) and Ron Borys (Aon) compete in the "2009 Holiday Party Worst Picture Pose Contest."  It was a three-way tie although a few of the judges were impressed by Ron's redeye (the photographer was clearly not to blame) and George's feigned look of sleep/boredom.    

Black and white is this year's hot fashion look according to those in the know.  Here Julia Roberts (played by Leslie Hinck of the Loews Corporation/CNA) and Beyonce (portrayed by Chartis' Shelby Robinson) display the trendy outfits that they recently picked up at K-Mart the Giorgio Armani store.   

And you thought the phrase "beer goggles" was just a figure of speech! Mike Kambos shows off his winnings from the "Look Like a Scary 1940's Aviator" contest.  As a holiday gift to him, I won't disclose Mike's employer in case he's interested in keeping his job in this depressed economy. Oops, did I say Mike Kambos?  I meant to say that his is a picture of Charles Lindbergh's grandson, Charlie Lindbergh IV.  Please note that the goggles prevent redeye.  Only $1.00 at a dollar store near you! 

Some people actually wanted their picture on this blog!  Pictured are the lovely Sandy Nalewajk, Anne Jaggassar and Gina (she only goes by one name since that's all I know.)  "Sex and the City" has just found their new cast, you go girls!

Ron Fiamma (left, of Chartis) reacts to being told that he would be denied access to the LG Blog on www.plusblog.org.  Relax Ron, we were only kidding!  Also pictured are Anthony Yanni  of Everest National (he's no relation to the singer Yanni) and the Loews Corporation's Leslie Hinck (no relation to would-be assassin John Hinckley so don't think that she shortened her name to avoid that connection; she didn't.)    

Thanks for reading my blog and for supporting PLUS in general. Please accept my wishes for a happy, healthy and successful 2010.  

During the 2009 PLUS International Conference in Chicago, we hosted a panel titled "Insurance Innovation: An Oxymoron?"

In this interview with session panelist Leib Dodell of ThinkRisk, Insurance Journal asks a few additional questions to whether innovation can couple with insurance and financial services.

This Fox Business interview with Attorney Robert Profusek discusses what correlation, if any, exists between executive pay and banking risk.

Pull up a chair kids, I want to tell you a story.

We sold Y2K insurance in 1999 when I worked at AIG.  It seems like last month.  As I recall, Y2K insurance was available as either a stand-alone policy or as an endorsement to a standard D&O form.  We tried to scare potential purchasers into buying with a number of doomsday-like predictions from third party "experts."  I remember that one  so-called expert thought that the computer malfunctions would be so pervasive that "We'll still be feeling the effects of Y2K 50 years from now."  Supposedly, if you owned a BMW there was a good chance that you wouldn't be able to start your car because the key contained a computer chip. 

I think we sold a grand total of two policies in the Financial Institutions Group at National Union.  I won't embarrass anybody by identifying the purchasers (mainly because I can't remember, otherwise I'm not against embarrassing people...)  As we all know, the anticipated problems were virtually non-existent.

It's hard to believe that all of those things occurred ten years ago.  Time flies whether you're having fun on not (I am, for the most part, having fun, not that you asked...)   

Given that we're about to draw the curtain on another decade (yikes, can it really be?!) I thought I'd pause to reflect a bit on some of the things that have happened in the insurance industry, at least the professional lines corner of it, in the last ten years.  Here, in no particular order, are my thoughts. I'm also throwing in some not-necessarily-relevant photos since my people tell me that blogs with photos get much higher reader satisfaction ratings and I'm all about ratings and clicks, as you may have gathered by now. Anyone with their own "people" would feel this way, so don't blame me.  Anyway, here we go, so strap in:

·        The so-called Class of 2001 companies, start-ups all, have fared surprisingly (to me) well and are actually, for the most part, thriving quite nicely.  Arch, AWAC, Axis and Endurance jump immediately to mind.  Ironshore, Class of '06, is also doing quite well and Everest National has a nice talent pool going for it;

·        Consolidation within the industry, especially in the last year or two, hasn't occurred at the torrid pace that many observers expected;

·        AIG, always a juggernaut and, certainly, at one time the industry's most respected company, seemed surprisingly vulnerable for a time in 2008, and then, perhaps surprisingly, it has seemed most resilient;

·        None of the many financial crises and scandals during the decade (and there were many) delivered the industry-crippling losses that a lot of observers expected;

·        The magnitude and frequency of such scandals, however, seemed to far exceed anyone's expectations;

·        I know a guy who saved his employer $15 million by turning down the fidelity bond submission on Bernard Madoff's investment advisory firm (if you can call it that) because he felt that one person, Madoff, had too much control over the company and it "just didn't feel right."  I won't tell you his name (he doesn't need a job) but it reinforces, to some extent, the value of good old-fashioned experience and intuition in our industry.  Don't underestimate it;

·        Phil Voluck of the Kaufman Dolowich law firm is a very colorful character who does a lot for the industry.  I poked fun at him in the past so I thought I should set the record straight;

·        I've mentioned this before, but it is well-worth repeating:  Cara LaTorre and John Vanasco of Aon New York are organizing a cocktail party (beer, wine and premium drinks) on Thursday, January 14th from 6 - 9 pm at the Public House, 140 East 41st Street in Manhattan.  All net proceeds will be used to create "comfort packs" for children undergoing radiation treatment at the Children's Hospital at Montefiore in the Bronx.  This is being done in the name of Carolyn Sullivan, the precious 9-year old daughter of Pete (Aon New York) and Jeanne Sullivan who passed away in September after a courageous battle with cancer. Tickets are $60 in advance or $65 at the door.  For more information, or to buy your tickets, please contact Cara at charity11410@yahoo.com or call 212.441.2372.  You can also call John at 212.441.2281.  This is an open party and you are encouraged to spread the word to as many people as possible (if a certain threshold of attendees is met, the bar will close to the public that night and hold only this event.)  Raffle tickets will be sold at the event.  The great prizes include golf foursomes, a delicious dinner and other terrific items.     To read about Carolyn and her wonderful life, please go to www.caringbridge.org/visit/carolynsullivan    This is for a great cause and promises to be a very enjoyable night for all so please make every effort to attend.  And please spread the word (e.g. send this blog posting to all your friends)  and feel free to bring a pal or five.  Everyone associated with this event thanks you deeply.  And if you're lucky, your photo may even appear on my blog posting about the party! Please, contain your glee (I also take bribes to not post photos...);  

·        Cynics will periodically say, mostly during a soft market, that the market cycles are dead in the insurance business and the soft market is here to stay, permanently.  Then it hardens again and everyone denies ever saying that;

·        PLUS has enjoyed great success in this decade (and, again, I'm not just saying that because they set me up with this blog platform) thanks, in large part, to very strong leadership at both the national level (Derek Hazeltine and his team) and regional levels (too many people to mention.)  As many of you know, the 2009 International Conference in November attracted a record number of registrants, over 1,900 (many of you didn't even know that "registrants" was a word.) That's fairly remarkable considering current economic conditions.  A valuable PLUS trivia fact: the PLUS logo contains three stars because PLUS's founder, Angelo Gioia (who started the organization in 1987), has three sons.  He told me so himself.  He's a very innovative guy.  Also, Bill Gates's dad (yes, that Bill Gates) did the legal work to incorporate PLUS.  It's true;

·        Karma in action: a certain attorney general, who saw a scandal where many saw none, was ousted from office by a scandal.  Everyone saw that one however, on the cover of the New York Post;

·        One of the most impressive industry success stories of the decade: the growth of Advisen.  It's become indispensible to many in the industry.  Business Insurance, National Underwriter, and The Insurance Insider, to name three, are great industry publications, but Advisen is a daily tool (make your own pun off that one...)  Tom Ruggieri and his team have really hit a homerun;

·        Insurance coverage and defense law firms seem to have proliferated in this decade.  Ten years ago, Wilson, Elser, (WEMED), D'Amato & Lynch (I'm an alum), Mendes & Mount and a few other firms seemed to dominate the field (and all still vibrant players) but now there are a bunch more firms that do excellent jobs, as well as large, old-line law firms who have soiled their hands by entering the field.  I guess it's a reflection of the industry's growth; 

• This is a photo of John Kerns of Beecher Carlson and Sheila Small (risk manager of Verizon and, yes, she can hear you now -- she's heard that one before) at the Beecher Carlson holiday party. The guy in the background is developing a bald spot, but it's not too bad yet. 

•    Professional lines underwriting will always need an intangible element in the underwriting, at least for large accounts; 

·        That "Donate Your Car for Kids" commercial that constantly plays on the radio (coincidentally, as I type) is really annoying.  The kid mispronounces the word "donate," listen closely next time (he says "duh nate")  and it makes me want to do the opposite and donate my car to senior citizens (by the way, I investigated and the proceeds go to a school in Texas);

·        One good thing that came out of the Bernie Madoff scandal: I got to meet Nobel Prize Winner Elie Wiesel at a breakfast seminar on the Madoff scam.  I only spoke to him briefly but he is an extremely impressive man, he exudes dignity and class.  You should read his book Night;

·        When this decade began, nobody had even the slightest idea to offer terrorism insurance in the U.S.  Sadly, that changed;

·        I don't care what anyone says, and I think most people in the industry are with me on this: Hank Greenberg's legacy will be that he was one of the greatest leaders in the history of this industry, a true genius;

·        The Statesman Dinner has turned into one of the most enjoyable nights in the industry each year (unless you're the honoree or someone else skewered on stage) (Bailey & McCarrick: please don't skewer me for saying that);

·        I don't think too many people mourn the passing of the black-tie C&S Dinner at the Waldorf, but the general decline of the first Wednesday in December as a massive social and networking night for the industry is sad, we've lost something;

·        People hired purely as "ringers" for the company softball or basketball team generally turn out to be inferior employees and teammates;

·        It seems like insurance is proliferating as a major at colleges around the country (see, e.g. the ad on the PLUS website seeking an insurance professor at the University of Montana). More and more people are entering the industry intentionally, can you believe it?!;

·        ACE and Aon have really made hay this decade (However, I think I got into Aon's grill and prompted the change of their stock symbol from AOC to AON; you'd know this if you read The Book);

·        Marsh, while suffering some serious talent drain (no, not losing me) (or even Tom Zach for that matter), has managed to keep a very talented core of people at senior levels.  It's a good company to work for;

·        Wholesalers (particularly ARC, Socius and AmWins) throw the best parties in the industry;

·        Someone could easily make a show similar to "Madmen" about the insurance industry, the problem is, no insurance insider would want to write a tell-all;

·        The so-called "Gen Re" trial was a travesty, as were the sentences, really;

·        I think I can hear the PLUS Webmaster changing the locks as I type (Scott Billey does an excellent job);

·        Insurance needs a single national regulator who can see what every company is doing in every state.  It will simplify and streamline everything for all interested parties;

·        All those golf outings and other charity events in our industry are worthwhile and they do make a difference, so please keep attending and supporting.  Some of my favorites are:  the Santiago Golf Outing, the St. Thomas Charity Classic, the Marsh FINPRO 9-11 Charity Golf Outing (ran for five years and was discontinued) and one which I can't think of right now, so if you call to say that I forgot to mention yours, I'll say that was it;

·        This is a picture, taken at the Jersey Shore, of last weekend's snowstorm.  Just wanted to give you an idea of what I shoveled.  Quite a workout;

·        September 11th is a scar that will never fully heal;

·        Many people who originally thought that they were only in this industry temporarily live in very nice houses.  And they have just-as-nice weekend houses and phat bank accounts;

·        A Word to the Wise (and I don't have many):  If you're under 25, you should seriously consider becoming a fidelity underwriter, they will be in high demand soon. If you're over 25, it's still not a bad idea, I just inserted that age limitation to get your attention;

·        The popular press does not like the insurance industry.  Get used to it;

·        At some point during this past decade "finite risk" went from being a hot, "license-to-print-money" product to being a four-letter word;

·        If you work in the D&O field, don't miss the February PLUS Conference in New York unless you have a really good excuse (like your company won't pay to fly you here; if it's only a subway ride away, go to the reception at least, it's a great networking event...);

·        2001 was definitely the industry's worst year of the decade.  2009 feels like it was next worst (I didn't consult the actuarial charts on that, I just went with the gut);

·        Here's a picture of someone in our industry, a friend of mine, totally missing the ball (known as "whiffing" for you non-golfers) on an actual swing (no, not a warm up swing, I promise you.)  I won't identify him because he'd be quite angry, but maybe you can figure it out if you look closely.  The picture is from 2004.  This decade felt somewhat like a whiff at times, don't you think?  Maybe that was just a stretch to justify posting this photo...;

·        Your best friend, neighbor and, possibly, spouse, don't really understand what you do for a living.  And if you closely read most insurance industry analyst's reports, you'll realize that they don't really know our business either;

·        Pound-for-pound, the most fun people to be around in our industry work in London ("pound" pun not intended there, but I'll take it);

·        Everybody wants the middle-market business now;

·        If you don't know about, and respect, the people and companies who built professional lines into what it is, you should make a point to learn (and I'm actually not just referring to my book, even though you think I am; just talk to an old-timer);

·        One of the best ways to lose a client is to look at your Blackberry in a meeting;

·        Still, nobody knows what to call this decade that is passing: the aughts, the "oh oh's," or whatever.  Time will sort it out;  

·        I notice that I mentioned the other two of the Big Three brokers but not Willis.  They are good too.  The Bermuda office is a textbook example of how to run a successful operation;

·        I thought Chubb would get bought long ago, great name, great infrastructure and plenty of talent.  But what do I know?;

·        I ran D&O units at AIG and ACE and still can't tell you why it takes so long to issue a Fortune 1000 D&O policy, it's some kind of unanswerable mystery.  If you ever find a genie in a lamp on the beach, that's the one question you should ask him;

·        We have a lot of good people in this industry and at times I think we take that for granted;

So there they are, some of my random ramblings at the end of this decade. Here's hoping that the next ten years are better than the previous ten. 

If you haven't already, this is probably a good time to reflect on all of the good people and things in your life at the end of this decade, as well as to pause and remember the friends and colleagues who entered this decade with us but didn't make it to the end.  I'm sure we are richer for having known them.

I wish you and your family a happy and healthy holiday season and a wonderful 2010. 

I will leave you with a holiday photo of Sophie the Blog Dog, who also wishes you all the best:

Although it has received little coverage lately, a bombshell of a lawsuit inching its way through the superior court of Alaska has revealed the financial strain visited on state workers there and promises to have ramifications for public pensions across the country.

The Alaska Retirement Management Board, a state agency, filed the suit in 2007 against Mercer, the human resources consulting firm. The lawsuit says that Mercer’s mistakes hindered the ability of Alaska’s retirement system to meet its obligations to former public employees.

Mercer, the agency contends, made multiple errors as the state’s actuarial consultant when it estimated the amounts that two of the state’s retirement plans needed to set aside for health care and pension benefits. The agency seeks damages of $2.8 billion.

Read the full story here on the New York Times website.

Usually, I don't post lists.  But, when anyone releases a list called the "Judicial Hellhole List", I figure that I should probably at least give them a mention.

The American Tort Reform Association released its list yesterday, and congratulations to South Florida for being #1.

The list, which contains areas that have reputations for uneven justice, also included West Virginia; Cook County, Illinois; Atlantic County, NJ; New Mexico appellate courts; and New York City.

Read the full story, including other "hellhole" spots, here on the National Underwriter website.

It seems like all of the articles I'm seeing today are describing settlements.  Here is what's making news:

Washington DC agrees to $8.25 Million dollar settlement for protest arrests.

The group's lawyers say police encircled the park during a protest of the International Monetary Fund and the World Bank. Officers then arrested demonstrators, tourists and others without warning. The plaintiffs allege some were bound for 24 hours.

Albertson's to pay $8.9 Million in Colorado Bias Suits.

The Albertson's LLC grocery chain will pay $8.9 million to 168 black and Hispanic workers who said they were subjected to racial taunts and a graffiti-laced restroom depicting lynchings and swastikas, federal officials said Tuesday.

The money is part of a settlement agreement between Albertson's and the Equal Employment Opportunity Commission, which represented the workers in three lawsuits involving the company's warehouse distribution center in suburban Denver.

University of Phoenix settles False Claims Act lawsuit for $67.5 Million.

This case began as a whistleblower action filed in the Eastern District of California under the False Claims Act, which permits private citizens to bring lawsuits for fraud on behalf of the United States and to share in any recovery. Whistleblowers Mary Hendow and Julie Behn, two former University of Phoenix employees, alleged that the university accepted federal student financial aid while in violation of statutory and regulatory provisions prohibiting post-secondary schools from paying admissions counselors certain forms of incentive-based compensation tied to the number of students recruited. Though the United States did not intervene in this action, the Government provided support and assistance to the whistleblowers at many stages of the case, including filing friend-of-the-court briefs when the case was on appeal to the Ninth Circuit. The two whistleblowers will receive $19 million from the settlement.

Any member wishing to submit proposals for panels at the International Conference may do so by filling out the interactive form located under the Material tab here on the PLUS Website.

Last night Beecher Carlson held its annual holiday party for clients and underwriters in its Times Square offices.   Your Citizen Blogger cannot hit all of the holiday parties, nor does he want to (especially since he's not invited to most...) but since he was at the Beecher party, he figured "Why not post a blog?"  The people at the party answered that question with a lot of reasons as to why no blog entry should be posted ("I don't want you taking a picture of me, especially with a Blackberry camera phone, get a real camera!") but, of course, your Citizen Blogger paid no heed... I just hope PLUS Executive Director Derek Hazeltine and PLUS Webmaster Scott Billey don't pull my blogging privleges for over-use (nah, they're excellent guys, they won't....hopefully....)

Before we delve into the photos, here is a bit of background on Beecher Carlson, excerpted from you-know-which-insurance-book that I will, once again, not reference specifically nor provide ordering information for:

*        *        *

Beecher Carlson:  Founded in 1981 by Bill Beacher and Tim Carlson, this brokerage (originally known as “Beacher + Carlson before being re-branded as “Beecher Carlson”) started out as a retail broker, captive manager and reinsurance and risk management consultant.  American Reinsurance bought the firm in 1989 to assist its reinsurance clients with, among other things, technical analysis and captive management (although about 65% of its revenues came from insurance brokerage.)  In September of 2003, Am Re was close to selling Beecher Carlson to a major broker when former Hobbs CEO Tom Golub, who had been retained by an investment group as a consultant on the deal, got the idea to spur a management buyout.  Along with his friend and former colleague Doug MacGinnitie, Tom convinced Beecher Carlson management to execute his plan (the investment group that had originally retained Tom was fine with it as well.)  Since that time Beecher Carlson has been busy expanding its various practices, including professional lines brokerage.  Employing a lean and mean structure that requires revenues to outpace expenses, Beecher is building quite a franchise for itself.  The company picks its spots prudently and has won some major accounts from its bigger rivals. 

*        *        *

 Ok, without further adieu (if you considered that to be "adieu" at all...), here are the pix:

Ray O'Byrne of Endurance, Pat Logan of XL and Dave Conca of TimeWarner (he would only guarantee that he'd be at the party sometime between 2 and 6 pm) mug it up for the camera.  Pat is one of the industry's foremost Fidelity experts and really classes up this otherwise questionable photo!

Betty Shepherd and Brian "Flynnie" Flynn of RLI show how much fun insurance can be.

Is is just me or does Bill Morris of TransReCo look like a younger, wider-faced Hank Greenberg?  Paul Brophy of W.R. Berkeley joins Bill in a chuckle over new state filing regulations in North Dakota.

ACE USA's Courtney Coletti pretends to be showing off a picture of her three gorgeous kids (Cameron, Addison and John) when, in fact, she's trying to impress the crowd with her 5-carat cubit zirconium ring.  Courtney doesn't believe in wasting money on diamonds and thinks all women should go the CZ route!  (she will, I'm sure, whomp me upside the head the next time she sees me...)

Jeff Cohen, the real brains behind Advisen, stops in to visit with another happy customer (lesson here: big supporters of my book get treated preferentially in my blog postings!)   

We could probably show a triple feature on the three foreheads in this photo (too bad drive-in movies are extinct!)  Wearing their hair high-and-tight are Jeff Lattmann (Beecher), John Kerns (Beecher) and Mark Reilly (CNA).  Jeff is having his Shore house demolished and rebuilt.  After he reads this caption, I'm sure I will be passed over for an invite to the housewarming party.  Too bad, because I hear they're showing outdoor movies.

Andre O'Reggio (Beecher), Lara Bruzzese (Chartis), John Kerns (Beecher) and Jolie Small (Beecher) strike a classic insurance party pose (uncomfortably rigid with a forced smile) for the photographer who kept badgering them into letting him take their picture.  They only agreed because they knew this photo would never be seen by anyone. 

Vitaly Pisetsky (not the one you probably went to school with, it's a very common name) of Freedom Specialty, Kim Fine of Shippan Partners and Andre O'Reggio of Beecher flash a smile for the camera. Not pictured: Keith Riccio of Freedom Specialty who is back in the office handicapping the 2010 Kentucky Derby. 

Steve Walsh of W.R. Berkeley and Jeff Lattmann (what a handsome guy; maybe it's not too late to salvage my housewarming invite..) of Beecher are oblivious to the fact that Bill Morris, in the background, has just witnessed a shooting.  Either that or the wine ran out. This photo, with its stunning contrast of joy and depair, has been entered in the National Press Association's Office Party Photos Contest.  Not pictured: John Benedetto of W.R. Berkeley.  John discoverd a wrinkle in his shirt and had to head home directly from the office (John: you know I wouldn't pass up a cheap shot like that!)

And, finally, in keeping with the holiday spirit, a picture of Anne Anderson's (of Integro) two dogs dressed up in their finest festive gear.  Anne didn't tell me what her dog's names were so I'll just assume one is named Tom and the other is named Zach.  Enjoy!

On another note:

Cara LaTorre and John Vanasco of Aon New York are organizing a cocktail party (beer, wine and premium drinks) on Thursday, January 14th from 6 - 9 pm at the Public House, 140 East 41st Street in Manhattan.  All net proceeds will be used to create "comfort packs" for children undergoing radiation treatment at the Children's Hospital at Montefiore in the Bronx.  This is being done in the name of Carolyn Sullivan, the precious 9-year old daughter of Pete (Aon New York) and Jeanne Sullivan who passed away in September after a courageous battle with cancer. Tickets are $60 in advance or $65 at the door.  For more information, or to buy your tickets, please contact Cara at charity11410@yahoo.com or call 212.441.2372.  You can also call John at 212.441.2281.  This is an open party and you are encouraged to spread the word to as many people as possible (if a certain threshold of attendees is met, the bar will close to the public that night and hold only this event.)

To read about Carolyn and her wonderful life, please go to www.caringbridge.org/visit/carolynsullivan

This is for a great cause and promises to be a very enjoyable night for all so please make every effort to attend.  And please spread the word and feel free to bring a friend or five. 

Also, a reminder that the PLUS Eastern Chapter Networking Reception will be held next Tuesday, December 15th at Pound & Pence (55 Liberty St.; corner of Liberty and Nassau) from 6 - 8 pm.  Appetizers and drinks will be served.  You do not need to be a PLUS member to attend.  The admission fee is $60 for members and $75 for non-members. If you should have any questions, you can call PLUS at (952) 746-2580.

 Thanks much.

I'm back again with some party photos and my almost-totally-made-up -and-inane captions (that should be a sufficient disclaimer to shield me from lawsuits, no?)  But, before I get to that frivolity, I want to mention a very worthy charity fundraiser. 

Cara LaTorre and John Vanasco of Aon New York are organizing a cocktail party (beer, wine and premium drinks) on Thursday, January 14th from 6 - 9 pm at the Public House, 140 East 41st Street in Manhattan.  All net proceeds will be used to create "comfort packs" for children undergoing radiation treatment at the Children's Hospital at Montefiore in the Bronx.  This is being done in the name of Carolyn Sullivan, the precious 9-year old daughter of Pete (Aon New York) and Jeanne Sullivan who passed away in September after a courageous battle with cancer. Tickets are $60 in advance or $65 at the door.  For more information, or to buy your tickets, please contact Cara at charity11410@yahoo.com or call 212.441.2372.  You can also call John at 212.441.2281.  This is an open party and you are encouraged to spread the word to as many people as possible (if a certain threshold of attendees is met the bar will close to the public that night and hold only this event.)

To read about Carolyn and her wonderful life, please go to www.caringbridge.org/visit/carolynsullivan

This is for a great cause and promises to be a very enjoyable night for all so please make every effort to attend.  And feel free to bring a friend or five.

Speaking of enjoyable nights, many of you, but probably not all, are familiar with the industry tradition of the first Wednesday of each December.  This is commonly referred to as "C&S Night."  The tradition started sometime long ago.  A Google search turned up nothing on the history of the C&S dinner or even the Casualty & Surety Society itself so, since nobody seems to know much about it, I'll arbitrarily say it started in 1954.  Sounds good.   It was a black-tie dinner held at the Waldorf Astoria (I think they discontinued the actual dinner in 2001 or thereabouts) for, generally speaking, the more prominent people in the industry (and, often times, those filling in for the more prominent; yours truly attended the black-tie affair once, in 1998 or so.)  Many companies would host cocktail parties in various suites of the Waldorf before the actual C&S Dinner and people jockeyed for invitations to these.  Afterwards various companies would host their own dinners in ballrooms and at restaurants around the city to celebrate (what, exactly, they were celebrating, nobody was sure, maybe just the closing of another accident year in the insurance industry...) 

So C&S Night became what I used to call "the single most fun night in the industry each year."  I'm not sure if it's good form to put your own words into quotes but I'm going with that....  Anyway, now that the actual C&S dinner has been discontinued, and things in general on the insurance social scene are being scaled back -- or discontinued totally -- I think that my pronouncement no longer holds true.  I'd say that currently (for professional lines anyway) that the most enjoyable night of the year would be one of the nights of the PLUS International Conference (especially when it's well-chronicled by a blogger...)  But C&S Night lives on (some might say "limps on" half-heartedly) and, I'm glad to say, that one bright light hasn't dimmed on the first Wednesday in December: the ARC Party.  It's been called "the single best insurance party of the year" in one prominent insurance book (I forget which one...) and it continues to hold that title.  Hosted by the incomparable Chris Cavallaro (that ought to get my invitation renewed for another year...) and his ARC colleagues, it's a great event where collegiality reigns.  ARC, as you probably know, is one of the premiere wholesale brokerages in the U.S.   So here, my friends, with no further bloviation, are some photos from this year's party which was held on Wednesday, December 2, 2009. 

 This is a photo of the lovely Dana Cavallaro and her grandfather father, Chris (did I just cost myself next year's invite?)  As you can see, Chris's wife must be very attractive because Dana's looks did not come from dad (although he's a great guy!) 

Pictured are George Blume (PIA), Kevin Donohue (CNA) and Kevin Finn (Hanover), three of the giants of Fidelity underwriting.  These three are the youngest Fidelity underwriters in the industry (by ten years). Free career advice: young underwriters would be smart to learn Fidelity, everyone with expertise will be retiring soon.

No folks, a GQ model party was not being held next door to the ARC party.  This is Brian Hickey (PIA), Pete McKeegan (Rockhill; don't worry, nobody else has heard of it either) and Ray Santiago (AIG  AIU Holdings  Chartis). Brian's eyes did not get caught in a flash bulb mishap, he's using his Death Stare on an insured who filed a claim last month. The three are celebrating their recent induction into the industry's "$100 Million Club." No, that's not premium booked, it's expense accounts run-up (just kidding, lighten up Francis...)

Leslie Hink (CNA), Joe Vaccaro (ARC), John Semeraro (ARC) and Jane Kornesczuck (Great American) (she gave me her card or I'd have no chance at spelling that) pose for the camera. In the best tradition of the industry, Joe is clutching a CNA umbrella.  The overcoat is from Zurich North America.  His shirt has a Travelers logo. That's an Arch tie.  The suit was given to him by Chubb. The hair is his own (not everyone in the industry can say that...) 

Peter Taub's Grandfather Taub of (Noah's) ARC and Kevin Guillet (PIA) strike a pose shortly after a heated debate over the new actuarial rules for IBNR accounting.  I enjoy giving Peter guff about his gray hair because it draws attention away from my own (notice how I'm not in any of these pictures?)  And, yes, the "strikethrough" feature is my new toy.

Jen O'Neil and Karen Parker (I forget their employers but if it's that important to you Google them) share a moment of comraderie while trying their best to each look like they weren't eating that desert on the table in front of them. Jen has a fork concealed in her right hand and Karen has chocolate under her fingernails.

Steve Barbal and The Other Jim Donovan (PIA) yukk it up with Judy "No Relation to George" Biancardi and Kathleen Ray (both formerly PIA and now with Hiscox) as everyone pretends to not be arguing over who wrote those losses at PIA.  The photographer's guess is that none of these people are happy with the way they look in this photo.  Tough.

Courtney Burns (Everest National), Andy Peterson (Zurich), Harris "Charlie" Tsangaris (NFP and FETA) and Sally Gregor (Everest National) discuss where they went wrong in their respective career choices.  Andy, who I've always felt has been one of my closest friends, recently assumed a new role at Zurich that puts him in charge of the tickets for Zurich's luxury box at Madison Square Garden.  He knows that those names I called him when he worked for me at AIG were all in jest and that I'd rip up all of those reviews if I could.  Can't wait to see you in the luxury box Andy!

One of the industry's best brokers, Stan "The Man" Quirk (ARC) is seen here with Ken Schmaltz, owner of the prominent S&A Events company which does a fine job in running many insurance industry parties, golf outings and other events.  Stan had to leave the party shortly after this photo was snapped because he had just placed the fleet coverage for Tiger Woods and needed to rush to the office to file a claim. Even the insurance industry gets into the act with Tiger Woods jokes!

George Blume (PIA) and Sandy "Wack" Nalewajk (Chartis) celebrate Sandy's recent induction into the "Executive Assistants Hall of Fame."  George was also recently inducted into the "Get Your Arm Around All the Pretty Women at Insurance Parties" Hall of Fame. As you'd suspect, there are a lot of members.

Here's my very good friend Andy Peterson of Zurich again.  I didn't have much chance to speak with him but we'll catch up at the Garden.  Next to Andy are Shelby Robinson (Chartis) who, many people don't know, serves as Beyonce's double in many films and videos (that's a compliment Shel!), Coutney Burns of Evererest National and Leslie Hink of CNA. Andy was recently inducted into the "Gets Into Photos With Pretty Girls at Insurance Parties" Hall of Fame in Tampa, FL (you know why it's there...)  

Joe Vaccaro (still with ARC as in the previous photo, pay attention...) and Peter Taub's Great Grandfather Taub laugh it up at the thought of not being in the office. Not pictured: Craig Thorsen (ARC) who was back at the office doing everyone's work for them (that may be my funniest line of the blog!) Craig is a great guy.  Yes, I know I'm overusing the strikeout feature.

And, as regular readers of the LG Blog have come to expect, here is our mandatory photo of Sophie the Blog Dog.  She's all decked out in her Christmas gear (sorry, dogs aren't PC.) 

Not to be outdone, Sophie's older brother Jake gets into the act.  His eyes clearly say, "I don't really want to be photographed in this ridiculous ear thing. I hope it doesn't appear on a blog."  Jake is much more docile than his younger sibling (everyone is.)

So that's it.  I hope you enjoyed this citizen blogger's attempt at chronicling some of the revelry of the ARC Party (and I hope you weren't offended, it's all in good fun -- for me.) All of the people pictured are excellent representatives of the insurance industry otherwise I wouldn't have taken their photos (sorry to those who were excluded....)  Other insurance industry parties were held elsewhere on that night (Axis, for example, held a bash on the floor of the New York Stock Exchange) but I did not attend since, technically, I was not invited (word is, however, that the White House Party Crashers made it in...)  Adios until next time kids. 

According to the Wall Street Journal, the ongoing fracas between Kenneth Feinberg (the government's compensation czar and speaker at the 2010 PLUS D&O Symposium) and AIG has lead five high ranking executives threatening to quit if their compensation is cut significantly.

Read the quick blurb here on the StarTribune website.

The external hard drive lost by Health Net, which contained customers' personal information, was not encoded and could be read by commercially available software, the state attorney general said today.

The hard drive was apparently stolen in May from Health Net's Shelton facility, rather than simply misplaced, Richard Blumenthal said. It contained personal medical and financial information of as many as 1.5 million customers in the Northeast dating back to 2002, including 446,000 in Connecticut.

But the hard drive might not have been stolen for the information. Laptops were also stolen from the Shelton facility sometime before the hard drive was taken.

Health Net reported those findings to Blumenthal as part of Blumenthal's ongoing investigation of the loss, which happened in May but was not reported publicly until last month. The new findings are based on an investigation prepared privately for Health Net.

Read the full article here in the Hartford Currant.

The most powerful czar in Washington will receive some long-overdue scrutiny today when the Supreme Court hears a challenge to the constitutionality of the Public Company Accounting Oversight Board (PCAOB).

This board, created by the Sarbanes-Oxley Act of 2002, regulates the auditors of publicly-traded firms. The members are hired by the Securities and Exchange Commission (SEC) and, say the plaintiffs in Free Enterprise Fund v. PCAOB, do not answer to the president. This violates the Constitution's "appointments clause," according to which senior executive-branch officials should be appointed by the president and confirmed by the Senate.

Yet Sarbanes-Oxley, or Sarbox, itself should be subject to scrutiny. New research suggests that the costs of this legislation far outweigh its benefits to the investing public.

Read the full story here on the Wall Street Journal website.

PLUS Supported Initiative at University of Montana

The University of Montana School of Business Administration is recruiting a full-time
adjunct instructor to design and teach a series of courses in insurance/risk management beginning in the fall 2010 semester.

Position requires an advanced degree in either law or finance, recent relevant work experience with insuring professional liability at the national level. University teaching experience preferred. Applicant will be required to develop four university courses in insurance, with an emphasis in professional liability insurance, as well as select executive education training courses to be delivered at a distance to professionals.

Please click here for a full description and application procedures.

Review of applications will begin immediately; position will remain open until December
18, 2009. Finalists will be subject to a criminal background investigation. This position
announcement can be made available in alternative formats upon request. AA/EOE.

The Supreme Court said Monday it would decide when U.S. laws against securities fraud apply to transnational securities dealings, specifically involving a case about a shareholder lawsuit against National Australia Bank Ltd and its former U.S. mortgage unit.

The justices agreed to review a ruling by a U.S. appeals court in New York that upheld the dismissal of the lawsuit after two large write-downs in 2001 related to the bank's unit, HomeSide Lending Inc.

The appeals court ruled U.S. courts did not have jurisdiction to decide the lawsuit because the key allegations at the heart of the fraud occurred outside the United States.

Read the full story here on the Insurance Journal Website.

More than 400 people participated in the November 23, 2009 MMSEA Webinar preseted by PLUS and Advisen.  

If you would like to download the slides, glossary or view a recording of the webinar, please follow this link:

http://corner.advisen.com/webinar_mmsea_payer_act.html

During the webinar, articles were mentioned by two of the presenters.

To see the CMS documentation referenced by Mark Popolizio, please click this link:

http://www.nuquestbridgepointe.com/news/uploads/september_2009_settlement_news.pdf

To see articles written by Kathryn Bucher and attorneys at Wiley Rein on Section 111, please click here:

http://www.wileyrein.com/practices.cfm?sp=overview&id=170&pid=23