Today’s News: AIG Reports $2.66 Billion Loss, Missouri Refuses Health Care Reform Law and Questionable Auto Insurance Claims Increase
AIG reported a $2.66 billion loss in the second quarter, Missouri voters shot down one aspect of the federal health care reform law and a new report has found that questionable auto insurance claims have increased.
AIG Reports $2.66 Billion Loss
Life insurer AIG has reported a second quarter net loss of $2.66 billion, which is a considerable drop from its $1.82 billion loss posted in the first quarter. However, the loss is not from a drop in earnings. It’s instead a result of the loss after selling some of its life insurance divisions to help repay the government bailouts it received in 2008 and 2009.
Aside from the losses posted from selling its companies, AIG’s core insurance companies were able to nearly double their earnings in the second quarter, showing an adjusted net income of $1.34 billion (CNN Money).
Missouri Refuses Health Care Reform Law
Recently, 71 percent of Missouri voters were asked to decide whether they wanted the federal government to require them to purchase health insurance, and they responded with a resounding “No.”
Their votes in opposition to the portion of health care reform law that will require nearly all Americans to purchase coverage or face penalties has set no legally binding precedent. However, the opposition could result in fewer people voting for Democrats in the fall midterm elections, which could shift the balance of power in Congress and impede President Barack Obama’s health care agenda in the long-term (FreeP.com).
Smashed Car Windows Increase Questionable Auto Insurance Claims
According to a new report from the National Insurance Crime Bureau (NICB), questionable auto insurance claims increased by 14 percent in the first half of 2010. This increase was largely due to the fivefold increase in claims from car owners who said that their windows had been smashed.
The NICB says that many policyholders deliberately damage their car windows or stage phony accidents to receive a payout. On a larger scale, almost half of the 7,993 cases of suspected fraud were related to vehicles (Bloomberg).