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Winston-Salem Journal from Winston-Salem, North Carolina • 10

Location:
Winston-Salem, North Carolina
Issue Date:
Page:
10
Extracted Article Text (OCR)

USINESS PAGE A1 0 WINSTON SALEM JOURNAL Saturday July 20 1996 New AIDS drugs threaten deal on insurance policies THE ASSOCIATED PRESS NEW YORK been reviled as ghoulish dealers in death and praised as the financial saviors of people with AIDS Now viatical brokers which pay patients money in exchange for their life insurance policies face a severe profit crunch if new AIDS drugs can keep people alive longer The companies may have to be more choosy about whose policies they buy favoring sicker people UKety to aie sooner tney may also have to pay less for all policies Such moves are aimed at sustaining the healthy 15 percent annual re turns viaticals offer investors medical and scientific breakthroughs have complicated the issue in many cases where it just becomes a lot more difficult to assess the life expectancy of a said Kenneth Klein the president of National Capital Bene fits Corp in New York a leading viatical broker Since the new drugs called pro tease inhibitors were introduced this winter stock in National Capi parent company has dropped 50 percent Shares of another company Dig nity Partners Inc in San rancisco have lost 77 percent On Tuesday Dignity announced that it was sus pending purchases of new policies of AIDS patients AIDS activists say they are wor ried They say that viatical settle ments are still important because the long term benefits of the drugs are unproven the therapy costs $15000 or more a year and the side effects are severe If patients sell their policies' because of a mistaken impression that AIDS has been cured they will get sicker A Cornelius Baker the acting executive director of the National Association of People With AIDS in Washington said: peo ple to have the financial resources they need to meet all their obliga tions their rent or their food or their medicine and keeping their dignity is an extremely important thing that I think affects the long term outlook for the Viatical companies get their name from the Latin word Viati cum which in the Catholic faith is the sacrament of communion given to the dying In ancient times viati cum meant provisions given to those making a long journey Since the start in the late 1980s it has grown rapidly to at least 50 companies that bought about $400 million in policies last year J7 Viaticals collect money from in vestors including big banks and financial houses and use it to pay terminally ill people a percentage of the value of their life insurance policies Typically a patient with six months to live or less gets 80 per cent to 90 percent Those with a year get about 70 percent to 80 percent and those with two years get 60 percent to 70 percent Investors pay the premiums until Shares drop Shares in Dignity Partners Inc one of the oldest viatical brokers that pay AIDS patients for their life insurance policies have plummeted with news of new drugs that may prolong life Weekly stock close eb $14UVrI I "1 i T9 Im 6 A 2 tu'A $306 I Mar Apr May June July poucyP AP GRAPHIC the person dies then collect on the whole policy The investor risk comes when a patient takes longer to die than expected Then the policy can become a money loser Babcock to divide economics banking SI Law financial services school planned By Zach Coleman JOURNAL BUSINESS REPORTER The Babcock Graduate School of Management plans to split up its Center for Economic and Banking Studies The planned Center for inancial Services and Law would be the first interdisciplinary center bringing together the two schools in the Worrell Professional Center: the Babcock school and the law school' Robert Lamy an associate professor of management at the Babcock School and a co director of the Center for Economic and Banking Studies would be part of the new center He said that the link with the law school is important because of the major changes occurring in bank ing regulation With this environ ment Lamy said he sees the op portunity to do studies for banks interested in the potential benefits of proposals to allow them to ex pand insurance and investment ser vices for example The center would also include the unfilled CC Hope chairman ship of Banking and Law Hope a vice chairman of irst Union NaJ tional Bank and a director of the ederal Deposit Insurance Corp died in 1993 irst Union gave the Babcock' School $300000 for the chair year later Patricia Divine a Bab cock spokeswoman said that other donors have since contributed $200000 and that fund raising continues Sterling A Spainhour a lawyer at Wachovia Corp teaches a bank ing law course at the law school and might join the center too Lamy said The new center probably get going for at least a year Divine said The surviving Center for Eco nomic Studies under co director Gary Shoesmith will continue to focus on economic forecasting Betty Crocker lets you have your cake and breakfast too Mills the coun No 2 cereal company behind Kellogg Co Betty Crocker the General Mills brand with the greatest name recognition among consum 1 'EZ i' 11 Jx: I AP PHOTO Betty Crocker's Dutch Apple and Cinnamon Streusel cereals are expected to be available in September THE ASSOCIATED PRESS GOLDEN VALLEY Minn Cake for breakfast? Almost General Mills Inc is adding a Betty Crocker brand packaged to appeal to dessert lovers to a cereal lineup that includes Cheerios Wheaties and Lucky Charms Capitalizing on its best known brand and 75 years of selling cake mixes the first offerings to hit store shelves in mid September will be Betty Crocker Cinnamon Streu sel and Dutch Apple cereals Other flavors will follow The cereal is low fat and fortified with vitamins and minerals But the pitch is to the sweet tooth The Cinnamon Streusel box promises baked taste of cinnamon and the Dutch Apple box tempts the buyer to try the baked taste of Dutch apple strategy is to introduce high quality competitively priced cereals with extraordinary brand said Joe Rutledge a spokesman for the company Cereal accounts for about 60 percent of the profit of General ers accounts for $15 billion or nearly 30 percent of the company's annual sales The trademark red spoon logo is found The new cereals were developed by the same General Mills team responsible for rosted Cheerios which was introduced into the Big line last fall The company is said to have spent $25 million to $30 million to introduce rosted Cheerios but General Mills has never confirmed that figure will spend more on the launch of these two cereals then we vertised on milk cartons General Mills spent more than a year developing the new cereals with flavors reminiscent of baked goods Rutledge said that it took Gener al Mills months to perfect the tech nology to drizzle frosting at high speed on the Cinnamon Streusel flakes on such items as scalloped pota toes microwave popcorn and chewy fruit snacks in addition to dessert mixes Other General Mills products include Yoplait and Co lumbo yogurts and Gold Medal lour spent on rosted said Rutledge who declined to say ex actly how much would be spent The new cereals with an intro ductory price of $199 for a 15 ounce box will be promoted on the packages of other Betty Crocker baked goods mixes and will be ad Comic Hero of the Workplace (DILBgRT) DAILY IN TH Oill ttXWCll DM Ill 11 HflLI iji Apartment hunting? Tate us along Every Saturday tn TV Journal MATTRESS SALE irm $24N $34 $48 eI DELUXE IRM EXTRA IRM DELUXE ORTHO COMORT Innerspring 312 Coih 10 Yr Warranty 20 yr warranty Twin $78 Twin $119set set I 1H un $1 39set ull s187 Queen $1 79set Queen $21 7 set I Queen $118 King $279set King $299 set REE Pillows rames or Delivery PARKVIEW MATTRESS URNITURE 2993 Waughtown St Ph 650 1252 Layaway (Across from Parkview Shopping Center) COD Judge OKs settlement of ADM lawsuit THE ASSOCIATED PRESS CHICAGO A federal judge gave final approval yesterday to a $45 million settlement of a class action lawsuit ac cusing Archer Daniels Midland Co and competitors of fixing prices for the animal feed supplement ly sine The action came despite the refusal of an ADM executive to testily Judge Milton Shadur of US District Court shared the concerns of the critics who com plained that ADM based in Decatur Ill and its competitors have provided little documentation to show if and how much customers were bilked But Shadur said anyone obligated to put their neck in a Terrence Wilson the head of corn process ing division was called to testify about the compa lysine pricing but asserted his right against self incrimination and did not appear The Justice Department plans to disclose the scope of its criminal investigation into lysine deals in September law enforcement sources and people fa miliar with the case say 1416 STRATORD RD wcsafl (Next to OPEN Daily 10 8 Sat 10 6 Sun 1 5 HANES discount furniture 760 4523 STOREWIDE SALE 40 70 W77700 TRUCKLOAD BEDDING SALE VAUGHN BASSETT 5 Pc Cannonball Bedroom Suite PUB SOA LOVESEAT $47700 20 YEAR WARRANTY Twin Set ull Set Queen King Set S429x Twin Set $119oo ull Set Queen King SLEEP TIGHT Twin Set ull Set Queen Set King Reclining Sectional $77700 Oak Claw oot Table 48x72 and 6 Nostalgia Chairs 7 pc Set 788 5 Pc Cherry Bedroom Suite 18th Century Styling 1 to sell Wrought Iron and Glass Table with 4 Wicker Chairs $37700 Bassett Recliner Sofa Matching Loveseat Traditional Sofa Loveseat Both Pieces $37700 $77700 5 Suite To Sell 12 MONTHS NO INTEREST 12 MONTHS NO PAYMENTS NO INTEREST NO PAYMENT UNTIL 1997 $500 Minimum Purchase Some furniture stores offer you 12 months no interest but require a payment every 30 days But at Hanes urniture we offer you a true option 12 Months No Interest and 12 Months No Payment Better Prices and Better inancing at Hanes i tu iOsiii fc70 off WiggES dr VERY UNUSUAL SPLIT OYER! EVERYTHING YOU COULD WANT! 4 nil Jane Combs Realtor 748 53 JI 11 A A I 790 CROOKED RUN RD 102500 Extremely nice house! 'er wAardwood floors stairs Atrium door leads to double deck wbench seats Tile floors in bath All rooms freshly painted Wonderful downstairs den with fireplace Directions: Hwy 52 Hvy 65 (Bethania Rural HaU) Crooked Run Rd 5605 SADDLEBROOK DRIVE LEWISVILLE S189900 Overs iced comer lot wirrigation system ML has a great blend of formal family living' Three large bedrooms upstairs laundry 2 walk in clos ets in master suite and 420 finished Sb tn LL Directions: on Country ClubShallowford Rd Shadybrook into Saddlebrook i Stratford Road 725 0506 Davidson County 764 5005 Davie County 998 8816 ListenLine 748 0048 Carolyn Hodge CRS GRI 748 5374 969 5429 HubHanl HH EBKiisSir I I IRSI I BU 'A ISSL JShuJi I raw I.

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Pages Available:
2,699,367
Years Available:
1898-2024