Declarations

Dear Elaine: Send Money

“Given the bearish economic forecasts for the next two to three years, we anticipate the unemployment rate will continue to rise significantly. It is essential that our states have sufficient resources in place to help support and transition these workers to new employment opportunities.”

—Excerpt of a letter from the governors of New York, New Jersey and Connecticut to federal Department of Labor Secretary Elaine Chao. The governors are pleading for nearly $50 million in federal money to help retrain financial services workers who have lost their jobs in the wake of Wall Street’s financial collapse.

Case Closed

“I believe that he complained a lot about his back. It was generally believed by me and I guess by others that he had a back problem.”

—Pennsylvania Superior Court Judge Kate Ford Elliott, testifying during the trial for her former colleague, Judge Michael Joyce, who was convicted of insurance fraud and money laundering. She was one of several high-ranking court officials who said they remembered Joyce complaining of back and neck pain since the August 2001 accident that led to the charges. A jury found that Joyce falsely collected $440,000 in insurance premiums from the accident.

Renters Rejoice

“(I)t’s important that all of the insurance companies follow these rules and operate on a level playing field.”

—Massachusetts Attorney General Martha Coakley, who asked the state’s Division of Insurance to look into the personal auto rating policies of Premier Insurance Co. Coakley says the company violated the law by offering a 5 percent discount to customers who have homeowner’s insurance – even through other carriers. Coakley says it illegal not to allow non-homeowners to get the discount.

AIG Deferred Pay

“AIG has decided to terminate and pay out the deferred pay plans to remove the incentive for employees to leave in order to obtain their deferred pay.”

—Andrew Kaslow, senior vice president, Human Resources, for Amercian International Group, explaining that it is terminating 14 voluntary deferred compensation programs involving 5,600 employees and independent agents and representatives. Approximately $500 million in earned but deferred pay will be distributed in the first quarter of 2009. Under the majority of AIG’s deferred pay plans, participants can only access deferred pay when they retire or leave the company. AIG is concerned that employees will leave AIG so they can obtain their deferred pay.

Topics AIG