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Great American Financial Resources (GAFRI) announced today that its
Great American Life, Annuity Investors Life and Loyal American Life
insurance subsidiaries have reached a settlement agreement with the
Minnesota Attorney General on all issues in her October 2007 Civil
Investigative Demand.


The settlement agreement includes defined suitability standards and
procedures for Minnesota consumers, as well as a claims review process
for past sales of certain annuity products to senior consumers. These
procedures are similar to an enhanced suitability program that the
insurance subsidiaries of GAFRI voluntarily implemented more than a year
ago. They were put into place to address evolving practices and
standards of various state and federal regulators, including the
Minnesota Attorney General.


“Were pleased for the recognition of the effectiveness of our current
enhanced suitability program, and have already implemented the minor
revisions necessary to address the Attorney Generals desire for uniform
standards in Minnesota, says Charles R. Scheper, chief operating
officer for Great American Financial Resources. “We have engaged in
comprehensive and good faith efforts to reach out to our annuity
contract owners, and respond to any issues or concerns they had with
their product or sales process. Were pleased that the Attorney General
recognizes these efforts, and we are willing to continue to work with
her office to address any issues that have yet to be brought to our
attention. Our hope is that the Attorney General will continue her
efforts to bring a robust and uniform annuity suitability process to the
entire Minnesota market.


Under the terms of the settlement agreement, the Great American
Financial Resources insurance subsidiaries have not admitted to any
wrongdoing or violation of the law, and were not subject to any fine or
penalty.


About Great American Financial Resources:


The subsidiaries of Great American Financial Resources, Inc.
offer annuities and various forms of supplemental insurance. GAFRI
is a member of the Great American Insurance Group, whose roots go back
to 1872 with the founding of its flagship company, Great American
Insurance Company. The members of Great American Insurance Group are
subsidiaries of American Financial Group, Inc. AFGs common stock is
listed and traded on the New York Stock Exchange and Nasdaq Global
Select Market under the symbol “AFG. Learn more at www.GAFRI.com.

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   HIGHTSTOWN —The Borough Council did not budge this week on lowering the $100,000 taxi insurance requirement it had not been enforcing for nearly five years.

   That’s despite four cab companies claiming the regulation, higher than the $35,000 state minimum, would force them out of town.

   Manuel Mendita, of East Windsor-based Super Taxi, told the council Monday that getting the additional coverage would nearly double his annual premium from $4,500 to $8,000.

   ”The way the economy is, the cab companies don’t have that amount of money,” Mr. Mendita said.

   But his comments were met with little sympathy from council as it approved the latest revisions to its taxi ordinance by a 4-1 vote.





   The updated ordinance puts the borough zoning officer in the taxi license application process with him also ensuring the business is located in allowed areas.

   The lone dissenting voice was Councilman Mike Theokas, who said he voted against it because it did not include restrictions on the number of cabs that can operate on borough streets, something he has been supporting for nearly a year.

   During the discussion, Mr. Theokas was the only council member who entertained the idea of lowering the insurance requirement, saying the higher costs “tie businesses’ hands.”

   When the question came up of what to do about companies that apply with the lower coverage, councilmen Jeff Bond — who has advocated for even higher insurance requirements — and Larry Quattrone said they should be rejected.

   ”You reject them, and then you highlight why they failed and ask them to get more insurance. It’s as simple as that,” Mr. Quattrone said.

   Three other cab companies — borough-based Mega Taxi and United Taxi and East Windsor-based TeleTaxi — all told the Herald last week that they’ve been operating for years with the state minimum and can’t afford to raise it.

   And each of those companies have had their licenses renewed each year since 2005 when the Borough Council approved its taxi ordinance containing the higher requirement.

   Those applications were processed by the borough’s deputy clerk, Leona Baylor, who recently acknowledged and took the blame for the oversight.

   Taxi applications going forward will be held to the requirement and rejected if they do not have it, Ms. Baylor said.

   She added this week that it is still too early to tell how many of the seven applications meet borough standards.

   The taxi insurance regulations for surrounding East Windsor, where each of the cab companies mentioned also operate, mirror the state requirements, according to Mayor Janice Mironov.

mchiappardi

@centraljersey.com













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   HIGHTSTOWN —The Borough Council did not budge this week on lowering the $100,000 taxi insurance requirement it had not been enforcing for nearly five years.

   That’s despite four cab companies claiming the regulation, higher than the $35,000 state minimum, would force them out of town.

   Manuel Mendita, of East Windsor-based Super Taxi, told the council Monday that getting the additional coverage would nearly double his annual premium from $4,500 to $8,000.

   ”The way the economy is, the cab companies don’t have that amount of money,” Mr. Mendita said.

   But his comments were met with little sympathy from council as it approved the latest revisions to its taxi ordinance by a 4-1 vote.





   The updated ordinance puts the borough zoning officer in the taxi license application process with him also ensuring the business is located in allowed areas.

   The lone dissenting voice was Councilman Mike Theokas, who said he voted against it because it did not include restrictions on the number of cabs that can operate on borough streets, something he has been supporting for nearly a year.

   During the discussion, Mr. Theokas was the only council member who entertained the idea of lowering the insurance requirement, saying the higher costs “tie businesses’ hands.”

   When the question came up of what to do about companies that apply with the lower coverage, councilmen Jeff Bond — who has advocated for even higher insurance requirements — and Larry Quattrone said they should be rejected.

   ”You reject them, and then you highlight why they failed and ask them to get more insurance. It’s as simple as that,” Mr. Quattrone said.

   Three other cab companies — borough-based Mega Taxi and United Taxi and East Windsor-based TeleTaxi — all told the Herald last week that they’ve been operating for years with the state minimum and can’t afford to raise it.

   And each of those companies have had their licenses renewed each year since 2005 when the Borough Council approved its taxi ordinance containing the higher requirement.

   Those applications were processed by the borough’s deputy clerk, Leona Baylor, who recently acknowledged and took the blame for the oversight.

   Taxi applications going forward will be held to the requirement and rejected if they do not have it, Ms. Baylor said.

   She added this week that it is still too early to tell how many of the seven applications meet borough standards.

   The taxi insurance regulations for surrounding East Windsor, where each of the cab companies mentioned also operate, mirror the state requirements, according to Mayor Janice Mironov.

mchiappardi

@centraljersey.com













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[adsys_ad::story_middle_003]

–>









Get latest Local Central Jersey News from CentralJersey.com

Comments are limited to 200 words or less.

Add your own comments:


Please note by clicking on “Post Comment” you acknowledge that you have read the
Terms of Service
and the comment you are posting is in compliance with such terms.
Although we do not have any obligation to monitor these
comments, we reserve the right at all times to check the
comments and to remove any information that is unlawful,
threatening, abusive, libelous, defamatory, obscene,
vulgar, pornographic, profane, indecent or otherwise
objectionable to us at our sole discretion, and to disclose
any information necessary to satisfy the law, regulation,
or government request. We also reserve the right to
limit future participation by any user who violates these terms.
All threats to systems or site infrastructure shall be
assumed genuine in nature and will be reported to the
appropriate law enforcement authorities

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