Indiana Insurance

One point in a sea of pancake-flat farmland, this northern Indiana factory town has Senator Edward M. Kennedy an unexpected opportunity to try to Zünglein in the balance in the tightest campaign of his 32-year Senate career.

Mr Kennedy’s Republican challenger, Mitt Romney, is an entrepreneur, boasts that created 10000 jobs in 60 companies. But here, workers at an Ampad stationery factory that Mr Romney and fellow investors bought in July went on strike in September. Management has shed 41 of 265 blue-collar jobs, cut wages, some workers tripled health insurance payments, abolished most of their seniority rights and junked the prior administration unions contract, which had two years to run.

The Romney campaign does not deny that the cuts were in the factory, but it says management has done all these things, so the company can survive and grow. It also says its representation in the number of jobs taken into account some losses in business Mr. Romney has to reorganize.

Still, the workers’ accusations of callous ownership plays neatly into the themes are of Senator Kennedy, a strong supporter of the work of a heavily unionized state, also happens to be the chairman of the Senate Human Resources and Labor Committee. To illustrate the theme, a group of five people from Marion, are either on strike or were dismissed went to Massachusetts this week to air their gripes. And since the end of last month, Mr Kennedy has been flooding local television with 30-second commercials featuring anguished employees in Marion.

“I want him to show me where these 10000 jobs, which he created,” asks an employee in a commercial.

Another says: “I would like to say that the people of Massachusetts:” If you think it can not happen to you, think again. We thought it would not happen here either. ”

The campaign focuses on new division of labor’s woes illuminates questions that go far beyond Marion, a town of 40000 about 65 miles northeast of Indianapolis.

By most accounts, Mr. Romney, whose investments also include large holdings in Staples, Office Supply Chain, the Duane Reade drugstore chain in New York, and Totes, the maker of boots and umbrellas, has a knack for building businesses.

Among his big investors are leading universities, including Yale, Princeton, Stanford and Notre Dame, which have entrusted him with $ 300 million of its endowment insurance fund. But from these foundations grow, Mr. Romney and his 11 partners have become masters of the brutal 1990 offer of the economy, resistance to unions and the operating costs of working almost bone.

Long before the news of the strike, unions chosen to overlook Senator Kennedy is a remarkable breakthrough with them, its vote to support the North American Free Trade Agreement, claiming that they take jobs to Mexico by the United States. “He is probably working people’s biggest supporter in the Senate,” said Candace Johnson, a spokeswoman for the AFL-CIO Losing him would be another major setback in the field of labour law’s long-dwindling assets, and the strike has their hopes that he may, at his office.

On State Road 18, on the outskirts of the city and on the other side of the road in a large General Motors body technology stamping plant, sits the Ampad Corporation, where the factory has all but closed. Ampad’s principal owner is Bain Capital Inc., a Boston investment company whose founder and CEO is Mr. Romney, now on holiday.

In the five weeks since the strike began, not a member of the United Paper Workers Local 154 was prepared to strike over a line item on the work, the file folders, index cards, legal pads and while-you-Were-out Pads. The workers are always in excess of $ 60 in strike benefits a week.

“We are actually shut down,” said Charles Hanson 3d, the chairman of Ampad, from its headquarters in Dallas.

Those on the strike line items are indifferent to the political implications of their strike. “Do not worry about us Republicans or Democrats, both of them,” said Cindy Smith, 42, folder, file, whose salary-Packer fell from $ 9.97 to $ 7.88 per hour. “If Romney maintained that he would be just us. If Kennedy maintained that he would come to find out what happened.

Shearson Lehman Brothers announced yesterday a plan to clean up the first maroden Capital Life Insurance Company Invests $ 50 million to the insurer and offers its 250000 customers for their full value policy, if it.

The plan was developed in collaboration with the regulatory authorities of California, requisition, the first capital of life last May, after tens of thousands of customers concern turned in its policy for cash.

Under the bailout plan of the American Express Company, the parent company of Shearson, so that their policies and pensions, reduce the proportion of junk mail in the first capital loans Life’s portfolio management and falls within San Diego Insurers Shearson leaders said. Shearson has a big part in the first capital of the parent company.

The plan is subject to approval by the Los Angeles County Superior Court

“We have a rehabilitation plan for the protection of policyholders every dollar,” said John Garamendi, insurance commissioner, California, makes the announcement in New York with Shearson leaders. The plan, he said, “provides the maximum benefits for all insurance companies.

But, insurance, or restrictions on withdrawals of a number of years. Those who wish to surrender or cash in their life insurance policies must wait five years until 100 percent of their value.

“This is not attractive for many customers,” said Joseph Belth, professor of insurance at Indiana University and national legislation Under the direction of newsletters, insurance forum. “You have to choose between a loss of a suite or their money committed for several years.

At the time, he was kidnapped, May 15, the first capital assets of 4.5 billion dollars. 190000 She life insurance 62000 insurance and annuity owners in 49 countries. A proportion of 28%

Shearson is the biggest investor in the first Capital Holdings, the insurer of the parent company of 28 per cent of its portfolio. The bailout Shearson aims to protect customers purchased, most of the first capital of insurance policies, like shield Shearson great potential complaints.

On insurance, decide to renounce their political rehabilitation plan begins to receive 75 percent of their value, Shearson chairman, Howard L. Clark.

Those who decide to maintain its policy now pay, but before the end of five years is punished. Policyholders receive 75 per cent for redemption in the first year with an increase in the percentage of 95 per cent for sale in fifth grade.

More than 36,000 as the first capital of the cancelled their life insurance contracts between 1 January 1990 and May 13, when the insurer was confiscated. In an unprecedented step, the plan allows these customers of their policy, or in some cases recovery of a portion of the redemption fee for the grant.

Insurance to choose for their retirement contracts are required to pay over a period of at least a period of seven years and get an interest rate of at least 4 percent.

In the last chapter in the national debate on the structure of mutual insurance companies, the Committee of the National Assembly Insurance said yesterday that changes to consider in New York could financially harm millions of policyholders.

The new structure proposed in legislation last June, Toi, George E. Pataki at the insistence of some of the largest life insurers in the state, would allow insurers to reorganize as mutual holding companies, so they could sell reserve for an expansion without compensation insurance. Such a development has already been in 18 states and the District of Columbia.

In the current New York law, mutual companies, did not Business Ventures, but as a collective of individuals for research on insurance lowest price possible, it requires that profits divided over the years - often billions of dollars - to their policyholders, Enterprise formal owner before selling shares.

The proposed legislation would assurance”abandonner control of their company and are exposed to more risk of,’’said Alexander B. Grannis, the committee chairman.

He said he would not be legislation to the Assembly without revisions, and legislative analysts, the chances of their right seemed more and more greatly reduced.

The Committee, the report on the bill, Mr. Grannis said the new structure ein”beträchtliche number of risks in relation to Versicherungsnehmern””mit few tangible benefits.”

In addition to insurance deprives a company, mutual benefits, he of the new structure, the insured is in conflict with new shareholders and für”erhebliche raises the possibility of self-management of enrichment. ”

Mr. Grannis said the legislation on questions of whether policyholders to continue, first claiming property values in a bankruptcy and possible conflicts with the President of the Confederation of securities laws.

He criticized the fact that a provision of the admission of only a majority of policyholders, decide to vote on a conversion, rather a majority of all policyholders. And he said the bill is necessary that companies give few details about their plans for the conversion of insurance is required before a decision within 30 days.

When a series of proposals aimed at strengthening legislation, Mr. Grannis insisted that the Superintendent of Insurance to require a finding that any change will nur”faire and gerechte”gegenüber to policyholders, since the bill is now, but it auch ”im the best interest of policyholders.”

Consumer advocates, including Ralph Nader and Jason Adkins, the founder of the Center for Insurance Research, say the new structure would be disastrous for the insured. A group of organizations, Citizen Action of New York, said that the new structure would allow policyholders of nearly $ 9 billion.

Neil D. Levin, Mr. Pataki’s Insurance Superintendent, and the Council of Life Insurance of New York, which represents more than 50 insurance companies, said yesterday that the proposed regulations would not affect insurance.

Mr. Levin said the administration was committed to the protection of policyholders and had tried to negotiate alle”Lücken or Schwächen”in the action of Mr. Grannis. But an adviser to Mr. Grannis, Peter Newell, said:”Before you start to negotiate, we have an obligation to sit down and secured a quantity of equipment and complexity of the situation.”

Similar laws have been defeated in Georgia, Indiana, and in recent months, but on a provisional basis in several other countries, including Massachusetts, South Carolina and Illinois, and awaits the signature of the governor in Wisconsin. Without this type of legislation has been proposed in New Jersey and Connecticut.

Most large companies on reciprocity in the state, including Metropolitan Life and New York Life, say they need the new structure of public service, in competition with companies owned, money by capital markets and their shares as currency to acquire other companies.

Launch of next year, an insurance company in Connecticut sell the first long-term care health insurance at home to be co-sponsored by a government. The time has Press both the insurance industry and state - former allies in Connecticut, and now equal partners - in a new frontier in the national political debate on health care for the elderly.

Dire officials of state politics, perhaps also in other countries later next year, based on the model of Connecticut, is much cheaper than long-term care private insurance. In addition, insurance no longer go broke there bring their Medicaid bills.

But the initiative, which moves today, Dir P. Lowell Weicker Jr. announced the names of the three leading signatories for the new product which is not without its critics. The powerful American Association of Retired Persons has radiated a misconception that the level of political leadership and bad for consumers.

The hope is that through the promotion of people to buy private insurance to pay for home care - to ensure that now an average cost of approximately $ 50000 per year in Connecticut - the state can, over time, reduce the number of people, we need Medicaid, Federal State a common programme to the sewer this year is nearly 9 percent of the total national budget in nursing home .

Officials say the plan is directly on the middle class, people are too rich to qualify for Medicaid but too poor to pay their own way.

And it will help sell insurance, a fact not ignore it, using either critics or supporters in which what is without doubt that the next day the nation in the insurance business capital. Giants like Aetna Life and Casualty, travellers Corporation, Phoenix Mutual and The Hartford dominate a large part of the local economy. During the year 1989, according to the latest figures, industry represented 14 percent of all nonfarm employment in Connecticut and 18 percent of the state nonfarm gross domestic product.

The authors of the idea of partnership, the Robert Wood Johnson Foundation, a private philanthropic group, said that if the first grant of seeds have been during the year 1987, Connecticut was the only place throughout the country, where the insurance business has already been an important element of participants in the planning national public policy.

The relationship already existing means that Connecticut has received the first donation, the first authorization of the Federal Commission on Medicaid management last summer, and its insurance regulators have also been the first to write guidelines for consumers, which is now two times more or less intact, Indiana and California. The two countries plan to start selling insurance public health sanctioned during the next year, said Stephen A. Somers, coupled with Vice President Johnson Foundation. “Advantage Marketing”

But if it follows that what is good for insurance and good for Connecticut is also good for the nation health policy is not yet fully responded.

“Insurance companies go to the limit, because it gives them a competitive advantage,” said Phyllis Torda, director of health and social policy for Families USA, Washington-based health care advocacy group, has been very critical about the partnership plan, Connecticut. “The state has sucked in”

Mrs. Torda, whose group promotes a national health care solution, “said the statement by the state of public and industry could hinder the national dynamic in the sense of a review and that the concentration the attention on the middle class who really need people to Medicaid, which was founded in the end suffer, particularly in the majority of countries with which nursing homes not give preference Medicaid patients.

The American Association of Retired Persons, one of the most powerful lobbies national, Connecticut, said the plan, maybe a bad deal for consumers.

With public budgets under heavy pressure from stress and elsewhere in Connecticut, and starts a debate in Washington on the need for a revision of large-scale, the association of retirees argued that a policy purchased today by a retired 65 years can value of 15 or 20 years as home care is necessary, because the care system, whose policy was created, perhaps no longer exist.

About a year ago, investors in bank stocks had to learn a new method of accounting of a bank’s capital, against the risks of loss or cushions. The new method was developed on the basis of an analysis of risk capital band and the amount of capital a bank was necessary for the risk of their investments.

Now, amid growing concern about the safety of life insurance companies and increased investment debts vis-à-vis insurers, insurance is considering a similar accounting.

The National Association of Insurance Commissioners, a national professional organization of insurance regulatory authorities, is awaiting a report at a later date this month by the Committee for Development “Risk-based capital rules.

Stephen Rocks, Senior Vice President of the New York Life Insurance Company and a steering group, the industry is to advise the committee, the hope is the development of new rules by December and for the insurers, they are in their annual accounts 1992.

In the case of insurance contracts by investors, new rules mean that all insurers ras immediately east of the capital selected, and the value of their share could increase. But companies briefly on invested capital is also selected. The risk for investors is therefore clear: if an insurer provides little capital, the insurer share prices break. Even worse, insurance companies may be more vulnerable to the scene, against the value of a Run on a bench, send us an insurer.

“If the data published naked without trial either in background is a risk lies in the fact that the public exaggeration,” said Rocks. “It is a major concern in the sector.”

But only agreed that all parties concerned, it is necessary that the venture capital rules. The State acquisitions in this year’s four major life insurers - Executive Life, the first capital of life, Monarch Life and mutual benefit of life - like the failure in recent years of several major damage and accidents , Have highlighted the need for a link between the capital base of an insurer on the risks of its heritage and, finally, there is a risk that insurance sold.

For example, it is generally acknowledged that the sale of insurance of pollution, exposure can be a liability insurer for decades in the future is much more risky than auto insurance, payment requests are normally within two years after the first of the policy are sold.

Risk-based capital “is an attempt to save the system logic, the insurer’s capital,” said Joseph M. Belth, a professor at Indiana University insurance.

Given that the rules of venture capital are not yet finalized, it is impossible to identify the company upon the acquisition of capital to play. But Townsend & Schupp, Hartford-based industry consultants, working with a provisional format, found that over all insurance companies, the economy represents only 86 per cent of capital should be the new standard .

Other analysts declined to speculate publicly on the reserve of the insurer would have had to sell, dispose of assets or any other way to the realization of the new regulation, but the names of public enterprises, which have seen their capital take as a consequence of the problems are well known: travellers, Aetna, Equitable (which is the process of Going Public) and others.

Although insurers are in principle free to maintain this level of capital they so wish, to a venture capital already exists. Some life insurers, for example, are already required to give a so-called Securities Valuation reserve, is the capital of land set aside to absorb losses on marketable securities.

In addition, the laws require, damage and accidents, certain amounts of liability, so-called reservations, their balance sheets, a policy if they are sold. But reserves are not capital, they are available means to absorb the expected losses, not unexpectedly.

Alice Cornish, an analyst at Northington Partners, an inventory of research undertaken at Avon, Connecticut, said he did not really a reasonable attempt, until now, for the capital adequacy of damage and reinsurance accidents.

The decision Friday by a top Wall Street credit rating agency to reduce the rating of six giants of life insurers is likely to stand as a milestone in the d’affaires, insurance and other leaders experts say.

Until recently, almost all major insurance companies have been regarded as rock solid - their ability to pay claims in question. But the cuts rating by Moody’s Investors Service may accelerate a postponement of the money that insurers strongest and weakest of the weak.

“While we do not see that we are witnessing the consolidation in the banking sector, we will see, the movement of capital in nature and in an indirect way,” said Stephen L. Brown, chairman of the John Hancock Mutual Life Insurance Company. “Companies who buy blocks of strong operations carried out by companies that are not as strong. And the agent forces begin to become familiar with the quality that companies”.

Consumers, of course, should benefit. How the capital aimed at companies stronger, left, the score is generally healthier with a group of life insurers. The risk is that, in order companies strong competitors lower, consumers drive east number of cases of the insurer.

The six companies, whose ratings were cut by John Hancock, travellers, New England Mutual, Massachusetts Mutual, Mutual of New York and mutual understanding principal, who was formerly known as Bankers Life.

The reallocation of funds between insurers ago began over a year if problems “Junk Bond investments of Executive Life Insurance Company, a major life insurers, which are not last spring, was well known.

Well, because Moody’s said, indeed, that all life insurers are not equal, are likely insurance to more discrimination, preventing insurers, whose problems could become familiar with the payment of claims.

Accordingly, insurance executives and outside experts say. the weakest companies may be under even more financial pressure.

“A flight to quality has already been committed, Moody’s and action is it just yet,” said Stephen J. Carlotti, Chief Executive of mutual benefit Life Insurance Company of Newark, was the assumption by the State of New Jersey last Tuesday after so many customers in their political commitments, the ability to pay of the company been questionable.

Mr. Carlotti added that “the top companies to quickly assess the situation and mutual benefit can give the impression with customers and for companies downgraded the worst is yet to come.”

A number of experts noted that the mutual benefits of the decision last week to seek the protection of state could be followed by a minimum reduction of its assessment by the agency Standard & Poor’s Corporation. Effects difficult to predict

It is difficult to predict accurately the effects of Moody’s downgrading. It is reported that the six-party insurers, the ability to pay debts of more than five are classified as “good” or “excellent”, it is possible that many policyholders is the change in the rating of too little consequence. Only evaluation of the Mutual of New York has been reduced to “reasonable”.

“Relatively few of each insured decreases its policies, if they satisified with the results of his report so far,” predicted Peter Hutchings, Chief Financial Officer of Guardian Life Insurance Company, a large New York-based life insurers. “It is indeed a big decision to change insurance.”

But Pension Trustees, invest tens of millions of dollars a year in pension funds, it can not be reluctant to change. These agents usually purchase pensions and other contracts character placement insurers as stable. Even if all businesses except demoted mutual New York still evaluating “good” or “excellent” by Moody’s, it is possible to suffer from disposal of certain means of payment as nervous Pension Trustees redirect investment to insurers that evaluation Triple-A, the highest evaluation.

“The pension trustees are extremely sensitive, which requires you to see, a few pension funds moving,” said Joseph Belth, an insurance professor at Indiana University.

Etabliertheit can be a powerful weapon, even in a year when politicians are about as popular as customs.

Representative Jill Long, 38 years, the Democrat whose district includes 10 counties in north-east of Indiana, centered on the well cleaned little processing city.

She won her seat in a special election last 19 months, Daniel R. Coats are now a senator, he was succeeded, Dan Quayle, former editor of a newspaper from the path of Huntington. Ms. Lange won nearly 51 percent of votes, and many people here saw their choice as something like a stroke of luck.

In this competition, the National Association of Realtors has risen from $ 200000 in advertising spots on the back cover of their Republican opponent, Dan Heath. This time, the group Political Action Committee contributed $ 10000 to Ms. Lange, the maximum amount allowable for a CAP, and nothing to Rick Hawks, their Republican rivals. Checks anti-Stance

Of course, Ms. Lange has accumulated a data set in Washington, and some powerful friends, and this can cause problems. It claims that all voted against the budget coming before the house, because she received on Capitol Hill, in conformity with their “no new taxes” promise of 1989.

But Mr. Hawks, a Baptist minister on television, has tried to picture a big spender with a poor credit rating from the National Taxpayers Union, a pressure group, as the spectrum of conservatives, Senator Edward M. Kennedy.

Mr Hawks’s negative commercials were widely criticized in the district, and last weekend, announced that he quit.

Mrs Langenhagen is a leader in the latest polls. In polls of local TV stations and newspapers, including one published Sunday by The Fort Wayne Journal Gazette, it takes 10 to 20 percentage points higher than Mr. Hawks, 37 years, a political neophyte. Each candidate will spend nearly half a million dollars.

What Ms. Lange has been able to do so in a shorter than usual first term, even in one of the few countries that refuses quite properly established Congressmen in the last quarter century, is typical for Democrats who have done for agriculture in the past ten years, to root in the soil apparently rocky political insist on local connections and conservative values to vote on certain issues very visible and tend to constituent interests.

Your success is an excellent reason for their strong, sustainable use a broad majority of the house, they expect to get the Tuesday elections. “Everyone’s sister ‘

Mrs Langenhagen is eager seriously district personality fits well.

Standing at the door of United Technologies of the facility before dawn on Friday, research lowest layer in a borrowed, was too great for her, reassuring, it gave answers to questions concerned about Medicare, they are the weapons, shook hands, asked fervently for many voices and kissed women, have indicated they would support.

“She just like any younger sister,” said Mitchell E. Daniels Jr., expired on political functioning of the Reagan White House and now works for the pharmaceutical industry Eli Lilly in Indianapolis home. “It is not easy to attack your little sister, especially one plays ball properly.”

Already here every weekend, with centres and club meeting, Ms. Lange has much better known. It has, indeed, from himself in a small celebrity welcome students, some with screams, “Jill! Jill!”

It has not stuck to taxes, even after the commitment made by President Bush is abandoned - “stuck to him like the color on the wall,” said Mike Dooley, The Journal Gazette, the political journalist.

The Democrats nationally might think that taxes once again politically acceptable, if it on the right objectives, but in Indiana and many other countries, they continue to poison so that their political commitment to the commitment gave a Women much longer of insurance options.

L. Ben Lytle, president of Anthem Inc., the great Indiana insurance company, argued the case of mergers of Blue Cross plans before an attentive audience of state insurance regulatory authorities, on Tuesday, just over the period , The anthem and the Blue Cross and Blue Shield of New Jersey annnounced the collapse of their own proposed merger.

”Most publicly H.M.O. Enterprise, about 10 billion dollars of turnover,’’said Lytle. But attempts to combine Blue Cross plans in companies large enough to face that Wettbewerb”wurden entirely stymied”von State officials and consumer groups, “he added.

Officials in at least a half-dozen countries, unlike the assets of Blue Cross plans are part of man in their country, insurers have decades of concessions in taxes and other charges. Officials indicate that the assets should be transferred to a non-profit foundation, if a Blue Cross plan changes to its original nonprofit status or merges with an Out-of-State-insurer.

With the collapse of the merger of New Jersey, at the end of the survival of the German Blue Cross system may be a danger.

Blue Cross plans have been federal state. They have won concessions by the law, legislators and waited for it obligations, such as care for poor citizens. Now, many Blue Cross plans are to combat shuck the obligations and transform them so that they can compete with themselves in a regional and national arena with private companies, whose commitment is essential to the participation of shareholders total.

Blue Cross officials say that the conditions of competition is tilted against it, if it is about their fortune.

There are 58 Blue Cross plans, with a total area of 68.6 million members across the country, a profit of 1.2 million since January 1. But some of them were members of the losing, and the number of plans has been declining rapidly. 65 projects were a year ago and 128 for the year 1975.

”My question to the Insurance Commissioners: “Do you care? Do you think that Blue Cross plays an important role in the health system?” Sir,’’said Lytle.

But the regulators of insurance, fell M. Lytle seemed more concerned by what they saw as the plans’ public responsibility.

”In the end, they have an obligation to return public that the commitment charitable foundation,’’said Jack Ehnes, insurance commissioner in Colorado, heads a committee of the Blue Cross National Association of Insurance Commissioners .

But Scott Serota, Executive Vice President National Blue Cross Blue Shield Association, said that Pläne”brauchen the same flexibility as our competitors - the structure of businesses access to capital markets,”change in insurance companies Mutual or merge.

Daniel Cain, a partner in Cain Brothers, which specializes in investments in health ventures, supports this view. Le”Blue Cross plans are frozen in a plan of the property, which is no longer competitive in many cases,”he said.

He said that state officials were the eyes verlieren”der fact that many of the persons concerned, venture capital, whether citizens or businesses insurance customers of Blue Cross plans to pay taxes and create jobs.”

Robert Atlas, Senior Vice President of the Lewin Group, a consulting and business research, working with a number of Blue Cross plans, sagte”gab never Umwandlung”eines a non-profit for-profit Without de”valeur status is assigned to public confidence.”

But he added that die”Bewertungen were often winzigen”vor of the exhibition were invited and often politically charged.

For example, U.S. Health Care, the major organization of health maintenance grouped in a Aetna Inc $ 8.8 billion to capture, was originally a small non-profit organization, a health maintenance the Philadelphia area. There was a transfer to a foundation of about 3 million, said Douglas Sherlock, an independent analyst in Philadelphia, tracks Managed Care business.

Under increasing pressure from the Bush administration to vote on a reduction in the rate of taxation of savings income, shared a bitter House Ways and Means Committee is still deliberations on Tuesday with the democratic management of one vote shy to block the proposal.

Under increasing pressure from the Bush administration to vote on a reduction in the rate of taxation of savings income, shared a bitter House Ways and Means Committee is still deliberations on Tuesday with the democratic management of one vote shy to block the proposal.

Five other Democrats are on page 13 of the Republican Committee in favour of a reduction in capital gains tax encouraged by representatives Ed Jenkins, Democrat of Georgia.

This will remain the committee chairman, Dan Rostenkowski of Illinois, one vote shy of the 18 needed to block the proposal.

Mr. Rostenkowski from a vote, in the hope of finding an alternative that attract one or more Democrats, Mr. Jenkins plan.

The Democrats in the committee, is the biggest pressure is Beryl Anthony Jr. of Arkansas, heads the Democratic Congress campaign. Many Democrats are unhappy that the person chosen to lead their choice Congress effort on the page of the White House about this.

Friday, Mr. Anthony some signs that he was ready to discuss, Mr. Rostenkowski’s alternative proposal.

The package would also Rostenkowski indexing capital gains, so that investors would not have to pay income taxes on their part, exclusively by inflation. It tries provisions unrelated to gains assignment, which attract some of the dissidents back into his camp.

The group is also fighting, as a change in the surcharge paid by the recipient Medicare to finance health insurance for catastrophic illnesses.

”The problem is that the gains assignment has 19 votes, so we have time to put to death changes in the killing of catastrophic health insurance, representing de”Robert T. Matsui, a California Democrat, said Friday the commission completes its deliberations. ”But we do not know what to do, either by the disaster.”

For now, Mr. Jenkins and his Democratic supporters have resisted a warning from the house spokesman, Thomas S. Foley of Washington, and most guides, Richard A. Gephardt, they feet party ideals and principles of tax reform by supporting a plan that benefits wealthy Americans rather than the average taxpayers.

”I’m not really receptive to tell, which is a good Democrat, and what is not,’’said Andrew Jacobs Jr. Representatives of Indiana, one of five Democrats support the plan Jenkins.

Democratic leaders believe that time is on their side, and assistance Ways and Means Committee said that calls for this weekend by Richard G. Darman, the White House director for an immediate vote was proof that the administration was Democratic defections nervous about the proposal by Mr. Jenkins.

On the CBS News program Face the Nation”,” today, Mr. Darman said:”We believe that we now have the votes in a manner satisfactory to gains assignment proposal on ways and means. Our problem is only one and it is important for the speaker and the chairman of the committee is not really make up for a vote.”

Mr. Gephardt, a Democrat, Missouri is a leading member of the Ways and Means panel, said on Friday that the Committee of the tax debt, much of the year 1990, budget deficit reduction packages have not need for home ground until September. A debate “Can not harm”

”After a debate on the merits of the case can not interfere,”he said, indicating that Democrats could wrest political advantage on the transfer of gains problem, even if the proposal is Jenkins After approval by the Committee.

In a small federal lobbying campaign noted that some of the largest and most successful life insurers have persuaded several states to adopt legislation that enables them to significantly increase their ability to improve the quality report. They are now invite other states to go along. But now critics say that companies are trying to withdraw their commitment to share the “Bounty” with 70 million policyholders, as a form of their owners.

The 10 states and the District of Columbia have approved laws that allow companies, known as mutual insurance, change their structure. The move allows the insurer to sell to investors for a long time, without obligation to pay a portion of insured accumulated gains on its behalf during decades of activity. Many largest insurers of the nation on reciprocity, as the giant Metropolitan Life, New York, John Hancock Life and belong to companies now lobbying lawmakers in their home countries to apply the changes.

In fact, are still in New York, and New York, Metropolitan Life, based in Massachusetts, where John Hancock, and in five other countries: Indiana, Louisiana, Ohio, Oregon and Texas . Four other countries have opted for another method is that it is also easier for mutual insurance companies, public funds. Neither yet Connecticut New Jersey - at some of the best known of the insurer - is currently considering legislation on the issue. But Newark-based Prudential Insurance, the greatest nation on mutual insurance, has expressed interest in the idea.

All this activity has alarmed critics say the changes to take effect the end of the brand character of mutual cooperation insurance. ”The companies are trying to place a steal money from policyholders,’’said J. Robert Hunter, a former insurance commissioner of Texas, is the director of insurance for the Consumer Federation of America in Washington. ”I do not know, as usual, he said.”

Insurance companies in the fact that the allegations of legislative change are disadvantaged compared to policyholders.

Whatever the merits of the arguments on both sides, it is clear that changes have great influence on the nation insurance sector. Only 100 of 1200 life insurance companies in the USA are on reciprocity, but the mutuals have more than one third of the 195 million different areas and control by the same share of $ industrie’s 346 billion in assets at Best Company, Agence rating.

How mutual insurance companies can not reserve for investors for money, and they are limited in their ability to borrow. In recent years, the mutual insurance say they have always paralyzed by these restrictions, which make it difficult to acquire other businesses and ensure that mutual relative to its competitors more effectively in the fierce fight between banks, investment funds, insurance and other financial institutions for the hundreds of billions of dollars that Americans save and invest every year.

In the past, as a mutual insurance company wanted about stock, its only option was a complete migration on the shares held. In these conversions, ending with assurance of its storage policy more to society, which represents a share of profits. So throw new species, actions have been delivered to the public.

But the new legislation on reciprocity can be used in a number of holding companies. This allows them to keep some aspects of the information system add, while the ability to issue shares and use of products for virtually everything from buying other companies to pay higher wages and bonus. Companies can also leaders of stock options, which do not exist in traditional societies on reciprocity.

Joseph A. Reali, Senior Vice President at Metropolitan New York Life, said that increasing the flexibility of each other, the new owners promise a framework for strengthening businesses and thus improve the security of the insurance sector in possession of policyholders.