Close to 30,000 children in Sonoma, Napa, Marin, Lake, Solano and Mendocino counties would lose health coverage if the governor’s proposed budget cuts are approved as written, according to estimates by the California Budget Project.

Gov. Schwarzenegger included Healthy Families as one of many programs on the hit list this summer. The end of the program would leave about 942,000 California children without health coverage and save the state between $250 million and $300 million, but at the same time, lose about $560 million in federal matching dollars. The program provides dental, vision and health care to children that do not qualify for Medi-Cal.

The changes are part of about $5.5 billion in cuts announced late in May needed to close the state’s swelling budget deficit projected to reach more than $24 billion by next summer. Legislators are required to approve the revised budget by June 15 but will likely delay the decision.

***

Novato-based Fireman’s Fund Insurance was sued for about $30 million by employees claiming the company’s negligence cost them thousands in investments.

The suit filed late last month by 46 former and current staff alleges that Fireman’s encouraged employees to attend investment seminars run by two AGA Financial investors that were recently taken into custody for purportedly conning more than $200 million.

The suit says employees were encouraged to attend the on-site early-retirement workshops through flyers and brochures and could sign up through kiosks on the property.

Fireman’s has responded saying it is not responsible for the losses.

“We contracted with a national vendor to offer voluntary retirement planning training,”

Fireman’s Fund spokeswoman Susan Murdy said in a press release.

“That vendor was responsible for bringing local instructors to Novato to conduct the training. Individuals associated with AGA were among these local instructors. Our contract required the use of standard generic training material that did not endorse particular products.”

***

Santa Rosa-based McDonald-Leavitt Insurance has merged with Hover Insurance Services of Petaluma to form HML Insurance Services as of May 14.

The new agency will operate out of the former McDonald office at 2800 Cleveland Ave. and offer a full line of group benefits offerings as well as other property casualty products and services, including COBRA administration.

“By creating HML Insurance, our agencies will enjoy improved efficiencies and capitalize on combined strengths to better serve our customers as we provide expertise in P & C and employee benefits,” said David Hover, president of Hover Insurance Services.

McDonald-Leavitt was launched in Sonoma County in 1983 and Hover in 1981.

The new entity is a member of the Levitt Group, a network of 115 independent insurance agencies and the 14th largest brokerage in the nation. The company provides affiliated agencies with management services, specialty products and larger access to insurance carriers.

***

Walnut Creek-based Heffernan Insurance Brokers appointed a regional vice president recently; Jon McGraw will work out of the company’s Petaluma office, bringing about 25 years of industry experience.

Heffernan, which is one of the largest independent brokerages in the nation, announced the addition late in May, saying the new executive will focus on the employee benefits side of the business, specifically targeting group medical opportunities, education and nonprofits.

“We are thrilled to welcome Jon to Heffernan and are excited to enhance the strength of our employee benefits offerings here in the North Bay,” said branch Manager Elizabeth Bishop.

Mr. McGraw worked most recently with Portal Insurance of Walnut Creek but also has experience as an underwriter, account manager and in sales with both regional and national organizations. He attended Carnegie Mellon University in Pittsburgh and has lived in Marin for about 20 years.

***

Farmers Insurance Agency is now offering discounts to North Bay home insurance purchasers that receive energy-star or LEED-certification. Home-owners can receive up to 10 percent off of their base premium rate, according to Culley Insurance Services, who is marketing the new offering.

“At this point, there is not a huge percentage of homes that have this rating, but this is a great chance for us to promote change,” Greg Culley said.

“On the one hand it is a marketing tool for Farmers’, but it could also get people thinking about make changes for the better, and that’s something I am definitely glad to be a part of.”

The initiative was launched earlier this spring and is an extension of the company’s “EcoBuild” endorsement program, which for an added premium, will rebuild a home with green specs in the event of destruction. The additional premium ranges depending on the size of the house, but it is generally between $20 to $150 more annually than a traditional policy.

The company also recently increased discounted coverage for hybrid drivers, from 5 percent off of base premiums to 10 percent.

***

The California Department of Insurance introduced last month a tool to assist seniors in finding coverage.

“Studies have shown that the number of seniors using the Internet is rapidly increasing. I am pleased that through this unique online tool, the Department of Insurance can share valuable information with this growing population of seniors,” said Department Commissioner Steve Poizner.

The program called the Department of Insurance Senior Information Center is meant to help prevent victimization of the state’s population of older adults and includes online guides for various insurance products.

The site also includes advisories about scams and tools for checking the license status of an insurance agent or company and a calendar of workshops on the topic around the state. The site is available at insurance.ca.gov/0150-seniors/index.cfm.

•••

Submit items for this column to D. Ashley Furness at afurness@busjrnl.com, 707-521-4257 or fax 707-521-5292.