Declarations

Undue Influences

“(W)e drink the Kool-Aid.”

—Moody’s Chief Executive Raymond McDaniel, commenting, in documents, on the dilemmas agencies like Moody’s face in assigning ratings to issuers of securities. Sometimes, he acknowledged, the constant letters and communications from analysts, managing directors, bankers and investors sometimes affect ratings more than they should.

Judging Spending

“This case is not about that medical testimony. You are going to hear an activity level from this defendant that does not match up with his medical claims.”

—Assistant U.S. Attorney Christian Trabold, who is prosecuting the case against ex-judge Michael T. Joyce of Pennsylvania, who authorities say used his title and told lies and half-truths about injuries from a slow-speed fender-bender to collect $440,000 from two insurance companies. Trabold said 59-year-old Joyce misled his doctors, and that his active lifestyle – which included scuba diving, inline skating and piloting small aircraft – shows he didn’t suffer the debilitating pain he claimed. Joyce’s lawyers say those claims are wrong. The trial began in October, and is expected to end this month.

Image Problems

“They believe the industry seems boring, unprofitable, dead-end and unattractive to young talent.”

—Peter van Aartrijk, of The van Aartrijk Group, commenting on an Insurance Journal survey that revealed the difficulties many agents see in attracting new talent to the industry. Survey respondents blamed the industry’s poor image for the difficulties, and named it as one of the chief problems in insurance. Topping the list? The loss of contingent commissions.

New Era

“The increasingly global financial markets require that regulators communicate quickly and cooperate closely in order to operate effectively. London and New York are recognized as being the world’s leading financial centers. The world watches what we do, and this arrangement emphasizes our awareness of our responsibilities to the global insurance market.

—New York Superintendent of Insurance Eric Dinallo, after signing an agreement with his regulatory counterpart in England. The agreement – which mirrors agreements signed earlier this year with regulators in Germany, Taiwan and Bermuda – calls for closer cooperation and a formal means to exchange information between the two regulators.