Yesterday, Health and Human Services Secretary Kathleen Sebelius issued a statement on the "Benefits of Health Reform for Businesses." A copy of the Statement is available online with links to supporting documentation.

Secretary Sebelius states that a November 30 letter to Senator Evan Bayh from the Congressional Budget Office on the impact of the Patient Protection and Affordability Acts supports claims from legislators that "[s]mall businesses are likely to see premiums drop by 1 to 4 percent under the proposal."

Premium savings will come from larger risk pools and lower costs owing to administrative savings and increased competition. The statement also concludes that an additional 3 percent in premium savings will come about as the risk pool improves.

A primary focus of my work is advising contractors and handling commercial construction litigation. Admittedly, the role of the "bonding company" or "surety" and public contract requirements of a completion bond or a payment bond, are difficult concepts to explain to clients.

But, understanding bond requirements is a key to smaller contractors being able to secure and bid on larger projects. Bonds are basically business insurance insuring the "risk" that a contract is not performed in a required manner. Bonds can cover other contract risks as well.

SuretyBonds.com is a website offering online bond purchasing and a great deal of information. Some of the professionals over there have helped me put together an article on construction bonds that I posted today.

I will follow up with more bond articles in the future addressing the various risk management scenarios where bonds can be used.

Every year the Insurance Institute for Highway Safety (IIHS) picks the top safe cars in various categories and identifies overall winners in each category of vehicle.

The winners for 2010 have been posted to the IIHS website. The top manufacturers for 2010 are:

• Ford (including Volvo) - Six awards.
• Subaru - Five awards.
• Volkswagen - Five awards.

The full list of awards can be reviewed at the IIHS website. IIHS awards can be an indicator of which model cars will result in lower premiums for commercial and personal auto insurance. Often the choice of a "safer" vehicle fleet can produce substantial premium cost savings.

Two stories caught my interest this morning. Two stories about insurance fraud that illustrate the fraud can be perpetrated by insureds, insurers, third-parties, regulators, and just about anyone where there is money involved.

In Florida, insurer, QBE Insurance Corporation, is facing a $500 million bad faith lawsuit by a condominium association. The association's towers were seriously damaged in a hurricane. The allegation is that the insurer, knowing the two condominium towers faced demolition and condemnation without insurance settlement money, "[took] advantage of the socioeconomic conditions of residents and the inability of residents to raise the money to make the repairs." In other words, the insurer is accused of delaying claim settlement to force a more advantageous settlement. The association has already won a $25 million lawsuit against the insurer in February, 2009.

But, insurers aren't the only ones accused of behaving badly. In Indiana, a home builder plead guilty in an arson case. The home builder had recently been awarded as the builder of the home of the year in the Southwestern Indiana Builder's Association competition. But, he is alleged to have paid another man to set fire to one of his homes in June, 2008. He pleaded guilty to mail fraud and conspiracy to commit arson.