Can I supplement my life insurance policy?

If you already possess a life insurance policy, it is possible for you to get extra coverage to supplement the actual policy .This helps your dependents even in the absence of you to eek out a proper living. Sometimes the actual policy money may not be sufficient for them to meet the expenses. Thus this supplemental life insurance gives extra financial security to your
family. But are you eligible for this supplemental life insurance? Find out.The article covers
What is supplemental life insurance?
Features of supplemental life insurance
Benefits of supplemental life insurance
Tips on supplement life insurance
Supplemental Life Insurance is otherwise referred as additional insurance policy. A person who takes a supplemental insurance policy is eligible to get extra coverage. The extra coverage which he enjoys can be few or multiple times more than the actual policy. Such coverage depends on factors like the insurance amount of your actual policy. However the additional coverage cannot extend beyond a prescribed limit which again varies from policy to policy. The aim is to supplement life insurance.

The concept of life insurance teaches that the insured's family and dependents are protected even after his death. Any individual takes a life insurance policy with this main objective. However the coverage in a single life insurance policy is not practically sufficient to meet all the needs especially when the dependents are large in number and the financial commitments are so high.

At times the dependents may have to sell the family property to settle a loan or if they don't have one they must make use of the proceeds received from the insurer. This rarely leaves them with enough money to run their lives smoothly thereafter. Supplementary or additional life insurance aims to overcome this limitation by providing additional coverage as long as a person can afford to pay and such payments don't exceed the maximum amount or fall below the minimum amount prescribed in the policy. The relevant details can be found in online life insurance policies.
Features of Supplemental Life Insurance
Some of the features of this policy are as follows
Flexible Options
The insured can choose the amount of coverage as per his desire. This applies for additional insurance policies taken in all forms of insurance like permanent, term, whole and universal. However insurance companies allow for additional coverage in group insurance policies taken by the employer. For the other forms of insurance it varies from company to company.
Proof
When you choose Supplemental insurance policies you are also given the flexibility of changing the amount of coverage. Whenever you want to insure for a very high amount you need to provide authenticated evidence and documentary proofs to establish that you are able to pay such an amount. This proof is referred as evidence of insurability.
Benefits of Supplemental Life Insurance
Some of the benefits of this policy are as follows
Reduces Procedural Delays
As said earlier most companies allow you to take additional insurance policies if you are covered in a group insurance scheme offered by your employer. In such circumstances it becomes very easy for you to obtain evidence of insurability. Since this comes under the purview of corporate schemes you will not be required to comply with many formalities in the course of obtaining the additional insurance. If asked your employer will also provide the reference certifying your credibility. This will make things easy both for you and the insurer.
Extra Protection
This main objective of this policy is to offer extra protection. When you take an insurance policy there are lots of chances that you may not continue it due to several reasons. Many of them surrender the policy in the midway due to financial commitments or inability to pay the premiums. This defeats the very objective of opting for an insurance policy.

With a supplemental insurance policy you ensure that your and your family is given extra protection. It is not hard or doesn't take much to discontinue or surrender when you take one insurance policy. Having planned to take up additional insurance policy shows that you have made all alternate arrangements and will not discontinue or surrender the policy till it matures or before you die.

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Universal Whole Life Insurance Policies

This is a very flexible type of insurance policy, which allows for a change in death benefits every year. It is also based on the chances of risks. In addition this policy also charges for all
insurance related expenses from your account on the basis of the changing economic trends.
Incase you do not paid sufficient money to meet the demands of this policy it will automatically terminate. Besides it also offers flexibility. The insurer can choose to stop from making the payments and commence it as soon as he wants if he so desires. This provision is applicable only if there is sufficient amount to meet the expenses of the policy, in your account.
Variable Life Insurance
Whole life insurance comparison will reveal that this policy is different from the others. The insured will be able to able to earn a higher amount when compared with the other policies. At the same time the insured will not be able to claim the benefit like loan. The working of this policy is similar when compared with other whole life insurance policies. The main distinguishing feature is that the money deposited by the insured is invested in financial instruments like stocks and mutual funds. Therefore the insured will be able to get higher returns if the stock on which his money has been invested performs well in the market.

Whole Life Insurance policies entitle the insured to earn returns on their investment. Therefore it is suited for persons who are looking for something beyond protection from a life insurance policy. The insurer invests the premiums in various stocks in some policies or chooses to invest in other sources like banks or even uses them to finance trade and related activities. The returns are not definite if the insurer invests your premiums in stocks. However investing them in other financial instruments guarantees returns . However in the remaining cases the returns are almost guaranteed. The type of policy chosen by the insured determines whole life insurance quotes. Whole life insurance details can be accessed online.

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Can I expect return on investment beyond protection?

If you need protection throughout your life, then you have to be prompt in paying your premium .This is what whole life insurance premium says. In return you can use the amount from your insurance for future investments or other unforeseen key expenses. There are two kinds in whole life insurance. They are ordinary whole life insurance policies and limited pay whole life policies .Learn what whole life insurance policy has in store for you.The article
covers
Whole life insurance quotes
Characteristics of a whole life insurance policy
Whole life insurance types
Classifications of limited whole life policies
Whole life insurance is a subcategory of permanent insurance. As per this policy a person will be eligible to obtain protection throughout his life. The only prerequisite is that he should be prompt in making the payments. This type of policy can be preferred if the insured is having long term goals for investment and also wants alternative sources to meet emergency financial needs.
Some of the characteristics of a whole life insurance policy are as follows:
Uniform premium rates
In a whole life insurance policy the premium rates are usually constant. It is advisable to invest in these policies in the early stages of one's life for two reasons. Firstly the financial strain will be minimal for a person of that age. Secondly when a person invests early he won't find it difficult to pay the same amount even after he gets old because of two factors namely the rise in his income and the uniform rate of premium. On the contrary if a person invests in this policy at a later period he will still have additional income but pay a higher amount of premium when compared with the person who started investment in the younger age. The simple logic behind this is the insurance premiums increase with a rise in cost of living. Hence whole Life insurance rates are regarded affordable.
Refund of policy amount
The insured does not run into the risk of losing the money invested if in case he does not die or the period expires. This type of policy allows the insured to claim a refund. However the amount of refund varies from policy to policy and many factors like age, the number of years for which the policy is taken influences them. In short the criterion chosen to evaluate whole life insurance quotes will be considered.
Other benefits
The insurer can also raise loans from the insurance company. The amount of such loans will be decided on the basis of his policy amount and premiums. However it should be understood that this will decline the amount of refund that they receive after the expiry of the policy. Besides this will also reduce the extent of life protection that they are entitled to.
Whole Life insurance types:
The two main categories of traditional whole Life Insurance are as follows:
Ordinary whole Life Insurance Policies
Limited pay whole life policies
Ordinary whole Life Insurance Policies
This type of insurance policy required the insured to pay a fixed sum of money up to an old age. The basic idea is to ensure that when the policy matures that the insured gets money whose value equals death benefit. However for practical reasons the insured person is not able to pay the money till the expiry of the policy. They either die before the policy period or close the policy and obtain the surrender value to get maximum benefits.
Limited pay whole life policies
In this type of policy the insured is required to pay premiums at a uniform rate. However the period for which the policy is taken in lesser when compared with ordinary whole life insurance policy. The insured is therefore required to pay a higher amount in the limited period. The policy comes to end on the attainment of the slated period.

Some of the classifications of limited whole life policies are as follows:
Interest Sensitive Whole Life Policies
Universal Whole Life Insurance Policies
Variable Life Insurance Policies
Interest Sensitive Whole Life Policies
This policy does not pay returns to the insured. However the amount earned by investing the insured's investment is accounted and paid to the insured. At the same time the costs for maintaining his life insurance policy is charged from the same account. This is to make sure that the insurer has sufficient funds to pay incase of sudden death of the insured or surrender of the policy.

The premiums rates are not uniform in a term insurance policy. They fluctuate with the changes in the market. The insurance company also has another interesting provision namely guaranteed minimum. According to this provision the insured will be paid a minimum returns whether or not his investment makes profits

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The Features of Joint Life Insurance

Dividends
Most joint life insurance policies earn dividends from the premiums being paid by policyholders. These dividends can be used to reduce premium payment or it can be left to
accumulate with interest. It can also be received in cash, should the policyholder opts for that.
Loans
Most policies allow holders to borrow from the cash value of their policy. The interest for these loans are based on the market's rate. If the loans and the interest that comes with it is not paid, it will be deducted from the proceeds of the policy during death or if it is surrendered prior.
Premiums
Premiums are what policyholders pay on a regular basis. Most joint life insurance companies require these to be paid either until the 100th year of the younger insured or until the second death. But more often than not, these premiums are at level, meaning they don't change as time progresses.
Non-forfeiture options
These are options that protect the policyholder against incidents wherein they were unable to pay their premiums. Examples of these options are automatic premium loan, paid-up insurance, and cash surrender

Optional Benefits
Optional benefits are benefits offered at an additional cost. A waiver of premium benefit relinquishes all the premium payments if and when the holder becomes disabled. There's also a death waiver of premium that provides for the waiving of payment when one of the holder dies for a specified period of time.

After understanding these points, it is easier to see that joint life insurance policies are advantageous in such a way it carries lower premiums than if you choose two separate policies. The requirements for underwriting this type of insurance are way easier too. Plus it works the same way as regular life insurance polices, such as it build cash values and offer loans as well.

But in spite of those advantages and before availing joint term life insurance quotes, you have to know that these joint insurance polices are not really flexible. Once they are written, there is almost no room for changes. And if you happen to be the younger of the two person under the survivor life insurance, you will be paying more than your partner, because the premiums are computed based on the average ages. And to top it all, for those who availed the first to die clause, the survivor would need to purchase whole life to cover the final expenses of the policy. And because there is no way to determine who the two of you will die first, it is really hard to make arrangements early on when the cost is cheaper.

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Joint Life Insurance - No Extra Benefits for You Here

oint life insurance policies are policies that enables two individuals to be protected, but the full value of the policy is paid only once at the time of either insurer's death. This is also referred to as the joint first to die clause.


Spouses, children, or even a business partner will benefit from a survivorship life insurance policy. Spouses is the directly benefit from it. Should one of the couple die, the surviving spouse will get the proceedings of the policy. The amount should be enough for them to live on, until the whole family gathered had gathered their bearings after the loss.

Children are also benefited. Taking care of children and sending them to school can really be expensive. With a joint life insurance in place, these tasks are going to be less burdensome, especially if one of the parents dies unexpectedly.

Joint life insurance policies do not only help families. It can be beneficial to business partners as well. Insurance joint life policy in a business setup has two types, the single life annuity and the last to die annuity. The first one corresponds to the clause that the value of the policy is payable until the first partner dies. The second one, on the other hand, says that the policy is in force until the last partner dies.
The Different Levels of Joint Life Insurance
Level Term Assurance
This is the basic level of a joint life insurance policy. This simply states that if and when one of the policyholder dies then payout is made. But when the surviving spouse or partner in turn goes, then no more payment will be made even if the policy has still not lapsed.
Decreasing Term Assurance
This is also known as the mortgage protection insurance. This level of life assurance covers the capital as well as the interest of the mortgage, which are all payable when the one of the policyholders dies. It is called decreasing term assurance because the amount payable decreases as the mortgage debt is reduced due to the monthly amortization paid over time.
Critical Illness
Critical illness is now being integrated into life insurance policies because of the discovery of modern medicines. Longer survival people of people with terminal diseases are now possible. However, they may not be able to go back to work to sustain their everyday living, not to mention their medications.

For this, joint insurance policies are going to pay a lump sum should either one of the policy holder is diagnosed of any critical illness such as heart attack, cancer, stroke, or multiple sclerosis.

These are the different levels of joint life insurance cover details. It then follows that the survivorship life insurance rates depends entirely as to which level you would like to avail of. Get different levels depending upon your coverage requirements.

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Getting Return of Premium Insurance Coverage

Not every life insurance company offers return of premium coverage. Typically, it is still a new
service, and only the best life insurance companies are offering it at this point. If you want to
delve into the world of ROP life insurance, start by getting a return of premium life insurance quote from several companies. Choose the company that has the best coverage with the most affordable premiums.
Benefits of Return of Premium Life Insurance
The main benefit of return of premium life insurance is the forced savings that it creates for the insured person. In a perfect world you will not need your life insurance policy, and if it ends, you will have the sum of the total of the premiums you paid given back to you. This is a great way to save while also protecting your family in case you were to die. Remember, funerals are extremely expensive. Do not leave your family without the ability to pay for a proper funeral for you. With return of premium insurance, you get the best of both worlds

Disadvantages of ROP Insurance
The main disadvantage of return of premium term life insurance is the fact that it costs more than traditional life insurance. Not only that, but in order to benefit from the return of premium service, you will have to keep your insurance with the same company for the entire life of the policy. Finally, term life insurance with return of premium is not offered by all insurance companies. But these disadvantages are far outweighed by the benefits of return of premium life insurance. Consider ROP for your family today!

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Has Return of Premium Life Insurance (ROP) Come to Stay?

Life insurance is a gamble. If you die, your family benefits, but of course, you don't want to die! If you do not die, you are out all of the premiums you paid! Not with return of premium life
insurance! With return of premium term life insurance, you are no longer risking losing all of
those monthly premiums that you pay!
What is Return of Premium Life Insurance?
Return of premium life insurance is a type of term life insurance with return of premiums paid throughout the policy term. Like other forms of life insurance, if you die during the term of the policy, your family will receive the lump sum benefit of the policy. If, however, you live and the policy comes to term, you are repaid for all of the premiums that you paid!
How Is ROP Different
Return of premium life insurance is different than other types of term life insurance. Return of premium competes with the two other main types of life insurance: whole life and term life insurance. Whole life is insurance that you pay for your entire life, with no limit. This is an expensive form of life insurance. Term life insurance is life insurance that you pay for a set period of time, usually twenty to thirty years. The premiums on term life insurance are usually much lower, since many of the customers using term life insurance do not die during the term.

Return of premium term life insurance is an innovative way to combat the most common reason that people do not choose to buy life insurance. Most consumers who choose not to buy life insurance do so because they assume they are not going to die during the term, and therefore they will waste their money on the premiums. With ROP, that excuse is no longer valid! If you do not die, and keep your policy with the company the entire time, you are repaid the premium amounts. This is a great way to force yourself to start saving!
Features of ROP
ROP life insurance works much like other types of life insurance. If you die while you are a policy holder, your beneficiaries, usually your family, receives a lump sum, valued at whatever the value of the policy is. If you do not die, at the end of the term, you are repaid the premiums, provided you keep your life insurance with the company the entire term of the policy.
Cost of ROP Life Insurance
Return of Premium life insurance does cost more than regular term life insurance, since the company will be paying you back at the end of the term. But, most customers who use return of premium life insurance feel that the extra expense is worth it, because if they live through the term of the policy, they are not out anything. And the added cost is usually only a few dollars a month, which is well worth the investment. The typical difference between return of premium insurance and traditional term insurance is 30%.
How it Works
The reason that the life insurance company will be able to repay their return of premium clients their premiums at the end of the term is that they are investing the premiums during the policy term. Each time you pay your monthly premium, it gets invested, bringing income into the company. Also, many people choose to take their business to another company before the term is up. When this happens, they do not receive their premiums back. That money, as well as the money from investments, is now available to pay you back for your premiums.

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Truth About Viatical Life Settlement Companies

A viatical life settlement company normally gets involved with bids when a viatical settlement agent bids the life insurance policy on the terminally ill contact individual. The package that is
usually sent out for bids contains the life insurance policy terms, As well as the medical
prognosis of the terminally ill individual. The vertical life settlement company which is awarded the bid normally agrees to pay 50% to 80% of the policy's face amount, varying according to the gravity of the terminally ill customer's medical condition and life expectancy. The viatical life settlement company-in turn-sells the terminally ill individual's life insurance policy to a financial investor who eventually becomes the policyholder as well as the beneficiary and assumes premium payments of the insurance policy.

According to the Viatical and Life Settlement Association of America, the financial investor will receive 100% of the life insurance policy's face amount from the said insurance company, upon the death of the terminally ill individual. Normally, the sooner the terminally ill patient becomes deceased, the higher the return of the investor. The Viatical and Life Settlement Association of America reports that while returns of 15% to 20% are customary for financial investors, the insurance policies can pay off a considerably higher return if death occurs quite early.

Regulations The Need Of The Hour
The Viatical and Life Settlement Association of America has been a leader in fostering regulation of the insurance industry and responsible legislation since its advent in 1995. It is not only the oldest, but the largest non-profit trade association in the viatical and life settlement business. It has contributed detailed and conceptual language to actual laws governing the life settlement industry in most United States territories. The result of these efforts improved public awareness, public information and created a highly competitive market place for the chief purpose of serving the consumer a valuable financial service.

Viatical settlement with life insurance can benefit a wide range of seniors who desire to cash out life insurance as they plan for better retirement as well as other needs. Several seniors prefer a combination of annuity products, while some others desire to become debt-free. With viatical settlement with life insurance, a number of seniors don't realize that there are no restrictions on the use of their life settlement proceeds. Policy holders and financial advisors are capable to unleash valuable cash resources by entering into a life settlement

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Is the seller of life settlement sure to die? Viatical Settlements

If one were to look from the perspective of an investor, purchasing a viatical settlement is
much akin to buying a bond with a negative valued coupon and dubious redemption date. This
is due to the fact that the return of the viatical settlement chiefly depends on the life expectancy of the seller-when he or she becomes deceased.
Viatical Settlement
A viatical settlement is the absolute sale of a life insurance policy by the owner of the policy before the maturation of the said policy. Sales of viatical settlements are at a price discount from the face amount of the policy. However, viatical settlements are normally in excess of the insurance premiums paid or current surrender value of cash. This offers the seller an instant cash settlement. Viatical settlements generally involve insured customers with a life expectancy of two years or less. In nations without state-subsidized healthcare, along with high healthcare costs-the United States-this is considered a very practical way to pay out severely high health insurance premiums faced by extremely ill individuals.

Viatical settlements became popular in the United States in the late 1980s due to the increasing AIDS epidemic. The early victims of this dreadful disease in the United States were mainly homosexual men, many of whom were rather young.
Viatical Life Settlement
A viatical life settlement involves insured customers with longer life expectancies (normally two to fifteen years). A viatical life settlement may be considered a better alternative than a viatical settlement, but there are still plenty of risks involved. The general consensus of viatical settlements is that they are seriously risky. This is due to the fact that the return is unknown, since it's not probable to determine when an individual will die. To invest in a viatical settlement is simply speculating on death. The longer the life expectancy, the less costly the insurance policy (such as with a viatical life settlement), but the return is normally lower. Without a shadow of a doubt, this has to be one of the more morbid investments money can buy.

Although there seems to be more cons than pros when it comes to viatical settlements, one of the benefits is that viatical settlements assist in making tough choices a bit easier by creating a peace of mind. A viatical settlement can generally provide terminally ill insured customers financial solutions for serious financial dilemmas.

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Are you hard pressed for the premium money?

Often you will find it difficult to pay the policy amount owing to the other pressing expenses. On such occasions you don't have to worry .Here is a kind of insurance that has got the flexibility to change the policy amount even after entering a policy for different amount. Have a look at
this policy in the article.The article covers
What is universal insurance policy?
What are the benefits of life insurance universal?
What are the tax advantages in it?
What are the disadvantages of this policy?
Universal Life insurance is a type of permanent life insurance policy. Unlike other insurance policies one can change the policy amount .At times the insured finds it difficult to pay the premiums because of some financial commitments. On such occasions the insured is not able to change the policy amount This policy allows the insured to change the policy amount.

Some of the advantages of this policy are as follows:
Innumerable death benefits
This policy allows flexibility in the amount of death benefits. You are free to change them to suit your convenience. There is another special feature associated with universal life insurance policy. The policy provides for lapse protection which entails you to enjoy the benefits as long as you pay the premiums regularly. Even if it does not have the provision of lapse protection the maturity amount will be paid in the event of death after deducting the money borrowed.
Premium Options
The insured is at liberty to make his choice in paying the premiums. You can either pay the premium at regular intervals or in one stroke. However you cannot change the amount of premiums to be paid.. You cannot pay less or more that the prescribed limits. Your dependents will not be able to enjoy the death benefits if you fail to pay the premiums.

However you can make the payments within as and when you wish. Another notable feature of this policy is that it does not get automatically cancelled even if you fail to pay the premiums. The underlying condition is that the premiums paid till date should be sufficient enough to meet the policy requirements till now.
Protection options
The insurance company not only allows you to choose premium payments but also gives you a choice in choosing protection limits. Suppose you feel that you require more or less protection you can alter your policy accordingly. The biggest advantage is that that when you increase the policy amount it is not necessary for you to buy an additional policy. However you need to get them approved by an underwriter.

You can reduce the amount in case you need to meet other financial commitments and as well as increase them once you have met them if you desire so. In case you decrease the amount the company follows a different procedure of applying a surrender charge against the policy's cash value.
Source for obtaining finance
This insurance policy also helps you in raising finance. You will be able to borrow money from the insurance company in the form of surrender value and loans. Surrender value is an option whereby you can surrender a part of the policy and claim the cash equivalent for the surrendered policy. You will also be able to borrow loans from these insurance companies like any commercial banks. These facilities will help you to claim income tax concessions. If you are willing to raise finance from the insurer the prerequisite is that your policy should not be a modified endowment contract.

Since universal life insurance is a long term investment it is not advised to borrow money either by loans or through surrender values as they reduce your policy amount. In case of emergency needs you may still consider them if you are promptly able to repay them with interests if any so that it does not affect your policy.
Death benefits
There are two types of benefits during death when a person chooses a universal insurance policy. When a person invests in this policy the increase or decrease of his cash value does not influence the policy amount. Moreover when there is an increase in cash value the insurance company creates an extra insurance policy for the increased amount.

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Variable Universal Life Insurance - Flexibility at its Best?

Variable universal life insurance has tax advantages to policy holders. The investment earnings of the policy are tax free, as long as the policy is in place. Also, the death benefit can
be played income tax free if paid correctly. And, after ten years, the policy earns FIFO
withdrawal status. Taxes tend to one of the main reasons that people who are relatively wealthy choose to use this type of life insurance.

The ability to earn a return on the policy is another advantage of this form of life insurance. As discussed, the premiums paid on this life insurance are invested in investments chosen by the policy holder. This freedom allows many people to make considerable income with their life insurance policy.
Disadvantages of Variable Universal Life Insurance
One of the main disadvantages of this form of life insurance is the high cost of premiums. Variable Universal Life policies are more expensive for the most part than other types of life insurance. The reason for this is that the value of this policy can increase, and there are tremendous tax savings.

Some claim that while the policy holder can choose their investments, they are limited in he types of investments they can choose. Also, the investments are set up in accounts that the Rate this Article
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Finally, the expenses can grow on these policies. If many policy
holders in the company die, and their dependents receive the death benefit, it can cause the insurance company to create more expensive terms for their policies. The chance is there that the policy could lose money over time.

Insurance life universal variable may be a good option for you, if you are willing to take on the risks involved. Now that you know the advantages and disadvantages of variable universal life insurance, you can make the choice that is best for you!

The ultimate consumer is still not aware of life insurance policies. The level of his understanding is not sufficient. This is partly because of the reason said above. Some of the domestic companies don't have the technical expertise to implement the latest practices.

Moreover the services of insurance agents could sometimes do more bad than good. Some of them try to convince their clients to invest more or to choose certain policies which are not much beneficial to the clients. A person will find himself in trouble if he invests more than what is actually required. Since some agents indulge in unethical practices, this has led to wrong mindsets among general public about insurers.

The number of advantages outnumbers the disadvantages. Life insurance is a savings option that helps the individuals, general public, business houses and the nation at large.It is therefore a wise move to choose a life insurance policy. The consumer has to gather life insurance information before choosing a particular policy.

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Renter's Insurance

Renter's InsuranceRenter’s Insurance is an adjustment of a homeowner’s insurance policy that covers rented properties. It consists of two main components: liability coverage and personal property coverage. It is not expensive – the average renter can get complete coverage for a couple of hundred dollars or less a year. It is going to protect you from any losses due to theft, or if there is a fire in your building. It is a must for almost all who live in apartments. Once you determine your need for renter’s insurance, knowing your options will help you choose the best policy. Make sure you have the protection by taking renter’s insurance to avoid financial setbacks.


Many tenants are unaware that rental policies by the owner of the property do not protect them or their personal belongings against such calamities. Protect yourself by getting renter’s insurance. In the absent of renter's insurance, tenants who lose their personal belongings in earthquakes, wildfires, hurricanes or floods also are not protected. Check with your agent on specific coverage’s as it can vary between companies and states.

It you don’t have cash on hand or the ready credit, it’s the right time for you to buy renter’s insurance. Conduct an inventory of your belongings and work with your agent to come up with an appropriate amount. Be sure you are working with a right agent. Go through each policy and checkout for what the coverage includes with any exceptions.



Does my landlord insurance cover me?
No. Because the landlord carries the insurance that will cover his loss in a situation where the building is destroyed or damaged by fire.

Is it easy to get renters insurance?
Yes, you can head for the yellow pages, check with various insurance companies who offer renter’s insurance, shop around for the best rates. If you are already having auto insurance, taking renter’s insurance through the same company will cost you less.

Landlords need to return security deposit
Security deposits are returnable to the tenant upon the termination of the lease. According to the terms of the lease agreement, the landlord may deduct certain sums from the security deposit. If he fails to return the security deposit before the applicable date, the tenant has the right to take legal action against the landlord. It is always advisable to make lease agreement in writing regarding the security deposits because it acts as evidence in the court of law and can win in your favor.

Valuing your items in the inventory list
You need to check with your agent to verify the claim payment on your policy, as most of the insurance policies; claims only the basis of the replacement costs. Mention the price of the item as of today.

Price and Coverage of the policy
More the coverage you purchase, the higher the price of the policy. Because the policy is not done individually for each piece of the property, instead a fixed amount will be determined.

Roommates sharing a single renter’s insurance
Insurance becomes complicated when unrelated people share a residence. Some insurance companies do not allow roommates to be listed on a single renter’s insurance policy

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Hurricane Insurance

Hurricane Insurance is an insurance that covers loss resulting from hurricane damage.

A hurricane is a tropical storm with winds that have reached a constant speed of 74 miles per hour or more. Hurricane winds blow in a large spiral around a relative calm center known as the "eye." The "eye" is generally 20 to 30 miles wide, and the storm may extend outward 400 miles. As a hurricane approaches, the skies will begin to darken and winds will grow in strength. As a hurricane nears land, it can bring torrential rains, high winds, and storm surges. A single hurricane can last for more than 2 weeks over open waters and can run a path across the entire length of the eastern seaboard. August and September are peak months during the hurricane season that lasts from June 1 through November 30. (source: FEMA)


Worldwide Tropical Cyclone Names

Atlantic Names

Arlene, Bret, Cindy, Dennis, Emily, Franklin, Gert, Harvey, Irene, Jose, Katrina, Lee, Maria, Nate, Ophelia, Philippe, Rita, Stan, Tammy, Vince, Wilma

Atlantic Ocean and Eastern Pacific Ocean are the two list names which are rotated every year. More than 21 named Atlantic cyclones occur in Atlantic basin in a season. For the hurricanes that are severe and cause a lot of property damage and/or loss of life, the name is retired because re-using it is felt to be insensitive. The name is then not used for at least ten years.

Tips on preparing your home for a Hurricane

Be prepared for the worst, as each hurricane is different.
Investing in flood insurance saves you from the damage caused by hurricane related floods.
Take an advice from your engineer on how to make your home more resistant to hurricane damage.
Install storm doors. You will also need strong screws or nails that will be long enough to go through the wood around the window frame.
Do not use electrical appliance during the storm.
Have a landline phone service instead of cordless phone as hurricanes will put you out of power service.
Create a network of relatives, friends and neighbors to aid you in case of emergency.
Keep an emergency kit which includes medicines, water, food, cash, important documents, first aid kit etc. Make arrangements for your pets.
As most policies usually cover damage caused from wind and rain, check your home owner’s insurance policy as to what it covers. Contact your local insurance agents and check out for the requirements and replacement coverage. Be cautious in choosing your building contractors, as they encourage you to spend a lot of money on temporary repairs.

Many can get help from their own life insurance policy. Over half of life insurance policyholders own policies that have cash value. The best use of this cash value is a loan -money that can be borrowed from the policy without waiting for lender’s approval. No matter the money is not taxable as you are borrowing against your own money, but the lender does charge interest on the loan; which is fixed on some policies. Keep in mind that insurance coverage varies by state and by company; it has its own claims filing procedures.


How to submit life insurance claims after disaster - To claim the insurance amount you need to submit the proof of insurance policy made.

You need to contact your agent who sold you the policy either by phone or in person to let them know you have sustained a loss.
You need to submit your proof of ownership and damage documentation of what you lost and its worth.
The best way to document your claims is to make an inventory of everything you own.
You can hire an attorney and file a complaint with your state insurance department if you are not happy with the claim amount settled.
If you’re still not satisfied you can own your public insurance adjustor as they will try and reach quick settlements. You need to pay them a percentage of your claim as they are regulated by the states.

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Marine Insurance

It can be defined as under: “Marine insurance business means the business of effecting contracts of insurance upon vessels of any description, including cargoes, freights and other interests which may be legally insured in or relation to such vessels, cargoes and freights, gods, wares merchandise and property of whatsoever description insured for any transit by land or water or air or all the three. The same may include warehouse risks or similar risks in addition or as incidental to such transit and includes any other risks which are customarily included among the risks insured against in marine insurance policies”.

There are two distinct branches of marine insurance:

1. Hull – i.e. Insurance of ships
2. Cargo – i.e. Insurance of goods in transit.

I Marine Hull Insurance:

This pertains to insurance of ocean going steamers and other vessels. “Hull” refers to the body or frame of the ship. Hull insurance provides the cover for the hull and machinery as well as in respect of materials and outfit and stores and provisions for the officers and crew. In addition cover for liabilities is included. Hull policy consists of basic policy attached to INSTITUTE CLAUSES which are drafted by the Institute of London Underwriters, an association representing the marine insurance companies and Lloyd’s underwriters operating in London.

I (1) The Institute Time Clause (Hull) Cover embraces:

• The coverage of maritime perils namely fire, collision, stranding etc.
• The coverage of additional perils such as latent defect in machinery, accidents in loading / discharging cargo.
• The Running Down Clause embodied in the hull insurance provide cover for damage caused to another ship in collision as a consequence of negligent navigation.
• May also cover vessels in course of construction, which are taken by the ship builders. Coverage starts from keel laying and until delivery of the ship to the owners.



II Marine Cargo Insurance:

This being cargo insurance, it provides cover for various transit perils in respect of goods and or merchandise in transit from one place to another by sea, air, road or registered post. Transit or Marine risks or perils are covered under Marine Insurance. Marine insurance plays a pivotal role in Import, Export and internal trade. Trade involves movement of goods from one place to another place. Goods while in transit are liable to be lost or damaged through one or other of various perils from the time it leaves the warehouse of the supplier till it is received at the final warehouse of the consignee. Goods while in transit are generally exposed to any one of the following perils leading to total loss or damage. The loss or damage suffered due to these perils is to be transferred to the Insurer in lieu of the premium, as these are included in the Marine cover.

II (1) SHIPMENTS BY SEA

The imports or exports as well as coastal shipments are governed by three separate clauses. Viz. Institute Cargo Clauses (ICC) namely, ICC -A, ICC –B and ICC –C attached to the policy. The risks / perils covered under the various clauses are:

• ICC - C: Fire, Explosion, Straining, Sinking, Derailment of land conveyance, Collision, Discharge of cargo at Port of Distress, Jettison, Grounding or capsizing, General Average, Sacrifice, General and Salvage Charges.

• ICC – B: All risks covered under ICC –C plus Earthquake, Lightning, Washing, Overboard Damage due to sea, Lake, River Water, Total loss of package while loading or unloading.

• ICC – A: All risks / perils or damage plus Malicious Damage & Piracy except those which are separately excluded.

II (2) AIR TRANSIT

Airfreight consignments are covered under three sets of clauses. The risks / perils covered are ALL risks or damages to the Cargo insured subject to specific exclusions.

• Institute Cargo Clauses (Air) excluding sending by post.

• Institute War Clauses (Air Cargo) excluding sending by post.

• Institute Strike Clauses. (Air Cargo)

II (3) REGISTERED POSTAL through AIR

• These are insured as per Institute Cargo Clauses A (ICC – A). Hence the risks covered shall remain same as applicable under ICC – A.




III. INLAND TRANSIT BY RAIL / ROAD:

There are two types of covers namely Rail / Road Clause B and Clause C are normally given by the Insurers for the goods transportation by Rail /Road.

III (1) CLAUSE B COVER include physical loss or damage suffered due
to such risks / perils as

• Shortage due to tearing and bursting of bags / cans, over turning, derailment.

• Short delivery / Non-delivery, Leakage/Breakage

• Theft/Pilferage, Contamination.

• Denting/Bending/Chipping, Rusting.

• Rain water damage / Fresh water damage.

• Damage by extraneous substances.

• Breakage of bridges/Culverts.

• Damage due to jerks and jolts during transit , Collision with or by carrying vehicle.

• Damage while handling at Port of Entry or at Exit Port.

• Damage while handling during loading / unloading at warehouses / intermediate stores / trans-shipment and at site etc.

• Loss while unloading process at site due to failure of crane, slings or negligence of labour etc.

III (2) CLAUSE C COVER: This cover includes physical loss or damage suffered due to risks / perils such as

• Loss or damage due to Fire risk.

• Loss or damage due to Lightning.




IV TRANSIT RISKS/PERILS TO BE RETAINED BY INSURED

Following are some of the perils which are to be retained by the Insured as these risks / perils are excluded in the marine cover. Additional covers against certain risks / perils such as Strikes, Riots, civil commotion, Terrorism or person acting from political motive etc may be covered on payment of extra premium. War risk on Rail / Road transport is not granted.

IV (1) IMPORTS / EXPORTS AND COASTAL SHIPMENTS BY SEA , AIR & CONSIGNMENTS ARE SENT BY REGISTERED POST


These are common to all the three separate clauses namely ICC –C, ICC-B and ICC-A except that the risks of Piracy and Malicious Damage are covered in ICC – A, but not in ICC – B and ICC – C.

• Loss damage or expense attributable to willful misconduct of the Insured.

• Ordinary leakage, Ordinary loss in weight or volume, Ordinary wear and tear of the subject matter insured, Loss damage or expense caused by inherent vice or nature of the subject matter insured

• Loss damage or expense caused by insufficient or unsuitable packing of the subject matter insured.

• Loss damage or expense proximately caused by delay, even though the delay caused by a risk insured against.

• Loss damage or expense arising from insolvency / financial defaults of the owners Managers / Charters / Operators of the vessel.

• Loss damage or expenses arising from the use of any weapon of war employing atomic or nuclear fission / fusion / other like reaction or radioactive force or matter.

• Loss damage or expenses arising from un-seaworthiness/ unfitness of vessel or craft / conveyance container or lift-van for the safe carriage of the subject matter insured, where the Insured or their Agents are privy to such un-seaworthiness.

• Loss damage or expense caused by war, civil war revolution, rebellion, insurrection or civil strike arising there-from or any hostile act by or against belligerent power.

• Loss damage or expense caused by capture, seizure, arrest, restraint or detainment (except piracy) and the consequences thereof or any attempt of threat.

• Loss damage or expense caused by derelict mines, torpedoes, bombs or other derelict weapons of war.

• Loss damage or expense caused by strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotion.

• Loss damage or expense caused by any terrorist or any person acting a political motive.

• Loss or damage due to Piracy (Included in ICC – A only.)

• Loss or expenses caused due to Malicious Damage. (Included in ICC – A only.)


IV (2) INLAND TRANSIT BY RAIL / ROAD: The following are the additional risks / perils to be retained by the Insured are common to the Rail / Road Clauses B and C (over & above the said earlier in IV (1).
• Loss damage or expense caused by war, civil war revolution, rebellion, insurrection or civil strike arising there-from or any hostile act by or against belligerent power.
• Loss damage or expense caused by derelict mines, torpedoes, bombs or other derelict weapons of war.




V. PRINCIPLE OF INDEMNITY IN MARINE INSURANCE

Both Marine Cargo & Marine Hull policies are issued as ‘Valued’ Policies. A valued policy is one which specifies the agreed value of the subject matter insured value. This value is the insured value. Goods which are covered under marine policies will be in the course of transit from one county to another the price of which are subject to fluctuations from time to time. The value will be the maximum at the time when the cargo reaches the destination. It is difficult to arrive at the value when the goods are in transit. Therefore agreed value policies are issued on cargoes. The agreed value includes purchase cost, freight, internal & inland transport, expenses on loading & unloading, cost of insurance, port trust charges, local agency commission, Taxes & duties. Marine hull insurance policies are also issued as valued policies. The market value of ship also fluctuates widely. The market value of a ship may not reflect its true value to the owner. A vessel may be3 old but to a ship owner it is as valuable as a new vessel from the point of freight earning capacity. The sum insured is fixed be agreement between the insurer and the insured which is arrived as a fair value.


VI METHOD OF INDEMNIFICATION:

There are four methods of providing the indemnity to the ` insured viz.
• Settlement by Cash payment
• By Repairing of the damaged goods ( based on the detailed submitted by the insured )
• Replacement of the property. This is rarely met with.
• Reinstatement.. The responsibility rests with the insurers and as such and because of obvious reasons this is not implemented.

The company may at its option reinstate or replace the property damaged or destroyed or part thereof instead of paying the amount of the loss or damage.

Reinstatement of the sum insured after a loss is paid does not arise. The sum insured under a hull policy is the maximum limit of the liability not for the period of insurance but for any one casualty. There may number of repair claims under a hull policy and when these are paid the sum insured does not get reduced and the question of restoration of the sum insured does not arise. Unless the policy otherwise provides the insurer is liable for successive losses even though the total amount of such losses may exceed the Sum Insured.



VII. PRINCIPLE OF SUBROGATION AND CONTIBUTIION:



In the marine policy the insurer must have paid the claim before they are entitled to rights of subrogation. Whether the loss paid is total or partial insurers subrogated to all the rights and remedies of the insured. Such rights and remedies include right of recovery from third parties. In the event of loss of goods at the destination, the sum insured which is the agreed value will be paid. In case the goods are damaged during transit, the amount payable is arrived as a proportion of the sum insured according to the % of depreciation, suffered by the goods as certified by surveyors.
The understanding the difference between abandonment and subrogation is necessary. Where the ship is so damaged that, if the insured considers it not worth while to repair it because the cost of repairs would exceed the value of the ship after repair, he abandons the ship to the insurers and claims the sum insured on the basis of ‘Constructive Loss’. If the insurers accept the abandoned ship, they acquire proprietary rights in the ship. If it is possible to sell the damaged ship, with or without repairs, for more than the insured value the insurers can make and retain the profit. But under subrogation they can retain only up to the amount they have indemnified the insured.
It is the duty of the assured and their servants / agents to take such measure as may be reasonable for the purpose of averting o minimizing a loss and ensure that all rights against carriers, bailees or other third parties are propoe5ly preserved and exercised.

Contribution may be defined as the right of an insurer who has paid a loss under a policy to recover a proportionate amount from other insurers who are liable for the loss. An insured may effect two or more insurances n the same subject-matter of insurance. If in the event of a loss he recovers under each and every policy the amount recovered would be more than his actual loss. This would result in a profit to him and thereby the fundamental principle of indemnity will be infringed. The principle of contribution therefore supports the principe of indemnity. ,

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Top things that will affect your car insurance premium

Here are the top things that will affect how much money your car insurance is costing you:

Your driving record

If you have a bad driving record you are going to be putting out more money for your car insurance each month. The longer you go without having an accident the lower your car insurance rate will get.

Want to put more people on your policy?

Adding people to your car insurance policy can affect the amount of money that your car insurance costs you. If the other person has a bad driving record then you may find yourself having to pay their rates for your insurance.

Age

If you are young you could be facing higher car insurance rates as well. This is because you are not as experienced a driver and therefore you are seen as a higher risk. The same is true if you are a male. Men are riskier to insure than females and this means that you may have to pay more.

Get an alarm

If you get an alarm and you agree to use other anti theft devices you may be able to get a discount on your car insurance. Ask your car insurance agent what kinds of measures you could put in place that would allow them to give you a better deal on your car insurance.

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Why does your Car Insurance cost what it does?

The cost of car insurance doe not seem even a little bit fair these days does it? Nope. It seem so random, you will find that it differs from person to person, even if they drive the same car? How is that possible? Car insurance should cost the same for everyone right?

Wrong. Why should those with good clean driving records pay the same amount of money for serial crashers? We shouldn’t. It is those bad drivers that are driving (no pun intended) up the cost of car insurance. But that is just one of the factors that can affect how much you pay each month for your car insurance.

Car insurance is something that we all have to have if we want to drive on the road. Even if you live in a place where it is not required by law it is still a very good idea to get car insurance. Only car insurance will protect you if you get into a car accident. Accidents are called accident for a reason, no one plans to go out and get into one. If you are unlucky enough to get into one you will have the peace of mind knowing that you will not have to put out the money to get your car or the other car fixed. Good car insurance will even cover you if someone in one of the vehicles gets injured. Without car insurance you could find yourself getting sued for millions of dollars, do you have that kind of money to put out? We don't think so , that is why you need to get car insurance to take care of you.

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Car Insurance - Section Home

Car Insurance typically called Auto Insurance protects the policy owner against financial damages in case of an accident. Accidents big and small happen each day right from a small stone hitting your windshield to a massive rollover which gives your car the status of being totaled. There are many components you need to understand about your Car Insurance and we try to bring as much information possible in this section.

The Car Insurance policy has three main types of coverage

Property Coverage - this helps pay for the damages to your vehicle and will cover if your car gets stolen
Medical Expense Coverage - When you are in an accident you need help paying the bills for the rehabilitation and treatment to your injuries. Along with it some policies provide lost wages and even funeral costs.
Liability Coverage - This helps with the medical and legal costs of a third party whom you have injured or whose property you have damaged.

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Assumption reinsurance

Assumption reinsurance is a form of reinsurance whereby the reinsurer is substituted for the ceding insurer and becomes directly liable for policy claims. This ordinarily requires a notice and release from affected policyholders. In the more typical reinsurance arrangement, the reinsurer has an obligation to indemnify the ceding insurer, which remains liable for claims on policies it has issued, and policyholders' approval is not required.

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Financial reinsurance

Financial reinsurance, also known as fin re, is a form of reinsurance which is focused more on capital management than on risk transfer.

One of the particular difficulties of running an insurance company is that its financial results - and hence its profitability - tend to be uneven from one year to the next. Since insurance companies want, above all else, to produce consistent results, they are always attracted to ways of hoarding this year's profit to pay for next year's possible losses. Financial reinsurance is one means by which insurance companies can smooth their results.

A pure fin re contract tends to cover a multi-year period, during which the premium is held and invested by the reinsurer. It is returned to the ceding company - minus a pre-determined profit-margin for the reinsurer - either when the period has elapsed, or when the ceding company suffers a loss.
Fin re therefore differs from conventional reinsurance because most of the premium is returned whether there is a loss or not: little or no risk-transfer has taken place.

History

Fin re has been around since at least the 1960s, when Lloyds syndicates started sending money overseas as reinsurance premium for what were then called roll-overs - multi-year contracts with specially-established vehicles in tax-light jurisdictions such as the Cayman Islands. These deals were legal and approved by the UK tax-authorities. However they fell into disrepute after some years, partly because their tax-avoiding motivation became obvious, and partly because of a few cases where the overseas funds were siphoned-off or simply stolen.

More recently, the high-profile bankruptcy of the HIH group of insurance companies in Australia revealed that highly questionable transactions had been propping-up the balance-sheet for some years prior to failure. To be clear, although fin re contracts were involved, it was the fraudulent accounting for those contracts - and not the actual use of fin re - which was the problem. As of June 2006, General Re and others are being sued by the HIH liquidator in connection with the fraudulent practices.

The regulator's perspective

When looking at the financial position of a Life insurer, the company's assets and liabilities are measured. The difference is called the 'free assets' of the company. The greater the free assets relative to the liabilities, the more 'solvent' the company is deemed to be.

There are different ways of measuring assets and liabilities - it depends on who is looking. The regulator, who is interested in ensuring that insurance companies remain solvent so that they can meet their liabilities to policyholders, tends to under-estimate assets and over-estimate liabilities.

In taking this conservative perspective, one of the steps taken is to effectively ignore future profits. On the one hand this makes sense - it's not prudent to anticipate future profits. On the other hand, for an entire portfolio of policies, although some may lapse - statistically we can rely on a number to still be around to contribute to the company's future profits.

Future profits can thus be seen to be an inadmissible asset - an asset which may not (from the regulator's point of view, anyway) be taken into account.

A banker's perspective

If a bank were to give the insurer a loan, the insurer's assets would increase by the amount of the loan, but their liabilities would increase by the same amount too - because they owe that money back to the bank.

With both assets and liabilities increasing by the same amount, the free assets remain unchanged. This is generally a sensible thing, but it's not what financial reinsurance is aiming for.

The reinsurer's perspective

In setting up a financial reinsurance treaty, the reinsurer will provide capital (there are a number of ways of doing this, discussed below). In return, the insurer will pay the capital back over time. The key here is to ensure that repayments only come out of surplus emerging from the reinsured block of business. The benefit of this surplus-limitation comes from the fact that in the regulatory accounts there is no value ascribed to future profits - which means the liability to repay the reinsurer is made from a series of payments which are deemed to be zero.

The impact is that there is an increase in assets (from the financing), but no increase in liabilities. In other words, financial reinsurance increases the company's free assets.

Different accounting regimes

It's important to be clear that financial reinsurance has an impact on the regulatory balance sheet only - which itself already provides a distorted view of a company's solvency. Financial reinsurance, certainly for life insurers, has no impact on their GAAP accounts. It does not disort a company's shareholder-reported profits.

A lot of the bad press around financial reinsurance is because of inappropriate designs and incorrect accounting for the transaction. It is not a problem of financial reinsurance itself.

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Types of Reinsurance

Proportional

Proportional reinsurance (mostly known as quota share reinsurance) is where the reinsurer takes a stated percent share of each policy the insurer writes and then shares in the premiums and losses in that same proportion. The size of the insurer might only allow it to write a risk with a policy limit of up to $1 million, but by purchasing proportional reinsurance it might double or triple that limit. Premiums and losses are then shared on a pro rata basis. For example an insurance company might purchase a 50% quota share treaty; in this case they would share half of all premium and losses with the reinsurer. In a 75% quota share, they would share (cede) 3/4th's of all premiums and losses. The reinsurance company usually pays a commission on the premiums back to the insurer in order to compensate them for costs incurred in sourcing and administering (e.g. retail brokerage, taxes, fees, home office expenses) the business (usually 20-30%) This is known as the ceding commission.

The other (lesser known) form of proportional reinsurance is surplus share. In this case, a line is defined as a certain policy limit - say $100,000. In a 9 line surplus share treaty the reinsurer could then accept up to $900,000 (9 lines). So if the Insurance Company issues a policy for $100,000, they would keep all of the premiums and losses from that policy. If they issue a $200,000 policy, they would give (cede) half of the premiums and losses to the reinsurer (1 line each). If they issue a $500,000 policy, they would cede 80% of the premiums and losses on that policy to the reinsurer (1 line to the company, 4 lines to the reinsurer 4/5 = 80%) If they issue the maximum policy limit of $1,000,000 the Reinsurer would then get 90% of all of the premiums and losses from that policy.

Non-proportional (excess of loss)

Non-Proportional reinsurance, also known as excess of loss reinsurance, only responds if the loss suffered by the insurer exceeds a certain amount, called the retention. An example of this form of reinsurance is where the insurer is prepared to accept a loss of $1 million for any loss which may occur and purchases a layer of reinsurance of $4m in excess of $1 million - if a loss of $3 million occurs the insurer pays the $3 million to the insured(s), and then recovers $2 million from their reinsurer(s). In this example, the insurer will retain any loss exceeding $5 million unless they have purchased a further excess layer (second layer) of say $10 million excess of $5 million.

Excess of loss reinsurance can have two forms - Per Risk or Per Occurrence (Catastrophe or Cat). In per risk, the cedants insurance policy limits are greater than the reinsurance retention. For example, an insurance company might insure commercial property risks with policy limits up to $10 million and then buy per risk reinsurance of $5 million in excess of $5 million. In this case a loss of $6 million on that policy will result in the recovery of $1 million from the reinsurer.

In catastrophe excess of loss, the cedants insurance policy limits must be less than the reinsurance retention. For example, an insurance company issues homeowner's policy limits of up to $500,000 and then buys catastrophe reinsurance of $22,000,000 in excess of $3,000,000. In that case, the insurance company would only recover from reinsurers in the event of multiple losses in one event (i.e hurricane, earthquake, etc.)

This same principle applies to casualty reinsurance except that in the case of Catastrophe excess the word Clash is used.

Contracts

Most of the above examples concern reinsurance contracts that cover more than one policy (treaty). Reinsurance can also be purchased on a per policy basis, in which case it is known as facultative reinsurance. Facultative Reinsurance can be written on either a quota share or excess of loss basis. Facultative reinsurance is commonly used for large or unusual risks that do not fit within standard reinsurance treaties due to their exclusions. The term of a facultative agreement coincides with the term of the policy. Facultative reinsurance is usually purchased by the insurance underwriter who underwrote the original insurance policy, whereas treaty reinsurance is typically purchased by a senior executive at the insurance company.

Reinsurance treaties can either be written on a continuous or term basis. A continuous contract continues indefinitely, but generally has a notice period whereby either party can give its intent to cancel or amend the treaty within 90 days. A term agreement has a built-in expiration date. It is common for insurers and reinsurers to have long term relationships that span many years.

Markets

Many reinsurance placements are not placed with a single reinsurer but are shared between a number of reinsurers. (for example a $30,000,000 xs of $20,000,000 layer may be shared by 30 reinsurers with a $1,000,000 participation each) The reinsurer who sets the terms (premium and contract conditions) for the reinsurance contract is called the lead reinsurer; the other companies subscribing to the contract are called following reinsurers (they follow the lead).

About half of all reinsurance is handled by Reinsurance Brokers who then place business with reinsurance companies. The other half is with Direct Writing Reinsurers who have their own production staff and thus reinsure insurance companies directly.

Retrocession

Reinsurance companies themselves also purchase reinsurance and this is known as a retrocession. They purchase this reinsurance from other reinsurance companies, who are then known as retrocessionaires.The reinsurance company that purchases the reinsurance is known as the retrocedent.

It is not unusual for a reinsurer to buy reinsurance protection from other reinsurers. For example, a reinsurer which provides proportional, or pro rata, reinsurance capacity to insurance companies may wish to protect its own exposure to catastrophes by buying excess of loss protection. Another situation would be that a reinsurer which provides excess of loss reinsurance protection may wish to protect itself against an accumulation of losses in different branches of business which may all become affected by the same catastrophe. This may happen when a windstorm causes damage to property, automobiles, boats, aircraft and loss of life.

This process can sometimes continue until the original reinsurance company unknowingly gets some of its own business (and therefore its own liabilities) back. This is known as a spiral and was common in some specialty lines of business such as marine and aviation. Sophisticated reinsurance companies are aware of this danger and through careful underwriting attempt to avoid it.

In the 1980s the London market was badly affected by the intentional creation of reinsurance spirals, which concentrated risks into the hands of a few reinsurance syndicates. A series of catastrophic losses in the late 1980s, bankrupted these syndicates causing many ceding insurance companies to lose their effective coverage.

It is important to note that the insurance company is obliged to indemnify their policyholder for the loss under the insurance policy whether or not the Reinsurer actually reimburses the Insurer. Many insurance companies have gotten into trouble by purchasing reinsurance from reinsurance companies that did not or could not pay their share of the loss.

In a 50% quota share the insurance company could then be left with half the premium and the entire loss. This is a genuine concern when purchasing reinsurance from a reinsurer that is not domiciled in the same country as the insurer. Remember that losses come after the premium, and for certain lines of casualty business (e.g. asbestos or pollution) the losses can come many, many years later.

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Functions of Reinsurance

Protecting against catastrophic events is only one kind of reinsurance. There are many reasons an insurance company will choose to reinsure as part of its responsibility to manage a portfolio of risks for the benefit of its policyholders and investors.

Risk transfer

The main uses of reinsurance are to allow the ceding company to assume individual risks greater than its size would otherwise allow, and to protect the cedant against catastrophic losses. Reinsurance allows an insurance company to offer larger limits of protection to a policyholder than its own capital would allow. If an insurance company can safely write only $5 million in limits on any one policy, it can reinsure (or cede) the amount of the limits in excess of $5 million to reinsurers.

Reinsurances highly refined uses in recent years include applications where reinsurance was used as part of a carefully planned hedge strategy.

Income smoothing

Reinsurance can help to make an insurance companies results more predictable by absorbing larger losses and reducing the amount of capital needed to provide coverage.

Surplus relief

Reinsurance can improve an insurance company's balance sheet by reducing the amount of net liability, and thereby increasing surplus. Surplus, assets less liabilities, is roughly the same as shareholder equity on a balance sheet of a non-insurance company.

Arbitrage

The insurance company may be motivated by arbitrage in purchasing reinsurance coverage at a lower rate than what they believe the cost is for the underlying risk.

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Reinsurance

Who benefits from reinsurance?Reinsurance is about the consumer and the insurance company both. Everyone benefits from reinsurance in a big way.

Reinsurance for the insurance company

Reinsurance is the only thing that allows insurance companies to take such big risks. It is this reinsurance that allows them to insure as much as they often do. Without the reinsurance they will not be able to.

You see an insurance company never knows when they will have to pay out and to how many people in any given year. They are actually insuring more than they would be able to afford to pay out all at once, that is where reinsurance comes into the picture. By reinsuring the amounts they will be able to pass some of the risk to other insurance companies thus giving the consumer a larger benefit package. For the consumer this means higher insurance policies and larger payouts.

The transferring of risk

By transferring the risk the insurance company will be less likely to go bankrupt and close. They will be bale to continue to do business and they will not have to worry about the losses that they incur each year because everything will flow smoothly with the help of this reinsurance. The company will not have to have so much capital at all times, giving them much more leeway in their business.

Most insurance companies are able to get this reinsurance at much lower rates that you or I could get insurance. The benefits of reinsurance do not just end with the company being able to write bigger policies for the insured but it also lowers their liability which is something that all insurance companies want.

How reinsurance is written

Reinsurance contracts can be write to cover single insurance policies or they can cover many more than just one. Most insurance companies have reinsurance policies that cover much of the business that they do. They will have to get these individual reinsurance policies in some cases when an insurance policy poses a more serious risk.

Reinsuring the reinsurer

Even reinsurance companies buy reinsurance. It is a continuous cycle of insuring the insured, it may sound confusing but it is all about protecting everyones interests. This is why you can get the insurance that you need to keep you and your family safe and secure.

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Insurance Claims Training

When it comes to insurance claims training there are a few important things that you need to keep in mind. First of all you need to take some time to decide what kind of training you need exactly. Not everyone needs the same kinds of insurance claims training programs. If you have a history in the insurance industry you may only need to take some continuing education programs. If on the other hand you are entirely new to the industry and you need to start at the bottom then you need to take a beginner insurance claims training program first. This kind of program or class will help you to get your bearings and learn the basics of insurance and what it can do for people.

The next step to choosing the right kind of insurance claims training class or program is to decide what kind of insurance you want to get involved in. Do you want to work in the life insurance industry, the auto insurance industry or the home insurance industry? This may have a bearing on the kind of insurance claims training you need to get.

The best way to learn what kind of insurance claims training you need is to talk to some local experts in that field. Different states require different kind s of training and certifications. Find out what is necessary in your area and go from there.

Most of the insurance claims training programs are short and easy to find. You will be able to learn everything that you need to know from a good insurance claims training class in just a few months. This means that you can start making a great living in just a few months!

No matter which sector of the insurance industry you are interested in you will be able to find the perfect insurance claims training programs online. These programs do not need to be taken online but they certainly can be. You can find many correspondence insurance claims training courses on the internet and they are great. Just make sure that the insurance claims training course that you take will work for the state in which you live. You do not want to put out the money, the time and the energy only to find that you are not able to practice your new skills where you live.

You can also find many insurance claims training courses in your local area. Most colleges or universities in your area will probably have some course that you can take. If you want to find out more about where to go for insurance claims training then contact some local insurance companies in your area. They should be able to point you in the right direction. They will also know the requirements for the state, which can also help you to choose the right insurance claims training programs

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Insurance Claims Training

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What is a captive or contract insurance broker?

If you want to get insurance then you will probably choose to meet with an insurance broker. This broker or agent will help you to determine what kind of insurance is right for you and your family. There are a couple of different kinds of agents out there. You will find some insurance brokers that are independent ones and others that are known as captive brokers.

What a captive or contract insurance broker is all about

A captive insurance broker is much different than an independent broker. A captive broker will be working only for one particular insurance company. They will sell all of the products from their company, there are usually numerous products for you to choose from. It is not often that you, as a captive insurance broker will have trouble finding a good fit for your customers. The bigger insurance companies are chock full of great insurance products for you to sell them. And it is easy to make all of the products sound good because insurance on the whole is always worth the money spent.

Want to be a captive insurance broker

If you are considering becoming a captive insurance broker then you will need to know a little more about it first. People who become an independent broker have more to learn than their captive counterparts. As a captive broker you will only have to learn the products of the company you are working with, rather than all of the products at several of the different insurance companies. This will still be a lot of work but nowhere near as much.

As a captive or contract insurance broker you will not actually be an employee of the company whose products you are selling. You wills till be considered an independent contractor. You may be able to collect an allowance from this company for office supplies but that is about it. Most companies will simply supply you will all of the paper and pens and such that you will need to do your job day after day.

You may also be eligible for some benefits from the insurance company that you work with as a captive or contract insurance broker. Just what benefits you will get will depend upon the insurance company that you choose to work with.

You will be required to fill out a contract with the insurance company and they will do a background check on you. This check is usually done at the start of your training. If you have an arrest record then you may not be able to get hired as an insurance broker captive or otherwise

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Types of Flood Insurance

Types of Flood Insurance Coverage available

Policies are available in three forms: General Property, Dwelling and Condominiums

All policies have deductibles for both building and contents coverage, incase you purchase contents coverage.

Exclusions

Walkways, driveways, patios, Contents in basements are not covered with a few exceptions such as dryer, freezer and washer.

First Steps after your property got flooded:

Call your insurance company's (24 hour) Emergency Helpline as soon as possible. They will be able to provide information on dealing with your claim, and assistance in getting things back to normal. Keep a record of the flood damage (especially photographs or video footage) and retain correspondence with insurers after the flood. Commission immediate emergency pumping/repair work if necessary to protect your property from further damage. This can be undertaken without insurer approval (remember to get receipts). Get advice where detailed, lengthy repairs are needed. Your insurer or loss adjuster can give advice on reputable contractors / tradesmen. Beware of bogus tradesmen and always check references. Check with your insurer if you have to move into alternative accommodation as the cost is normally covered under a household policy. Make sure your insurance company knows where to contact you if you have to move out of your home.

Tips to cleanup after flooding:

Find out where you can get help to clean up. Check with your local authority or health authority in the first instance or look under 'Flood Damage' in Yellow Pages for suppliers of cleaning materials or equipment to dry out your property. It takes a house brick about one month per inch to dry out. Open doors and windows to ventilate the house, but take care to ensure your house and valuables are secure.
Contact your gas, electricity and water company. Have your power supplies checked before you turn them back on to make sure they have dried out. Wash taps and run them for a few minutes before use. Don’t attempt to dry out photos or papers - place them in a plastic bag, and if possible store them in the fridge. Throw away food which may have been in contact with floodwater - it could be contaminated. Contact your local authority Environmental Health department for advice. The Citizens Advice Bureau and other organisations may be able to help if you feel under pressure, their numbers can be found in the phone book. Don’t think it can’t happen again. Restock your supplies.

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Flood Insurance - Information and Resources

Flood insurance provides compensation for physical property damages due to flooding. To be a little precise it provides insurance for damage caused due to overflowing water bodies. in most countries there is the concept of flood hazard zones and in most developed countries there is a mandatory requirement to get Flood Insurance for property in the flood hazard zones. In USA the home owner insurance policies typically exclude flood coverage and require separate purchase of this policy. This is both good and bad as it reduces the cost for folks who are in zones which has a very low probability for flooding. One of the interesting myth floating around is rain coupled with high winds that seep into property or through open windows is considered for flood insurance program. It is not and irrespective of where you live it is just common sense to protect your property from rain water.

Helpful tips about flood preparation

Shut off electricity, unplug all electrical applicances and keep in a safe place high above.

Silicone Sealant or sand bagging really reduces or prevents water entering your home.

The idea is to reduce as much damage so keeping internal doors and furniture in safe place is one of the best things to do.

There are a few items in your home that carry high sentimental value which is very important to secure as they help you to rebuild after floods without much pain. Trust me on this.

Flood insurance is required on all properties located in Special Flood Hazard Zones. If you do not live in a Special Flood Hazard Area, you are not required to purchase flood insurance when you buy your home. Flood insurance compensates against loss by flood damage. Although flood insurance is inexpensive, most people neglect to purchase it. The insurance covers damage to a building; including the foundation, pilings or other support systems for elevated buildings. It is a necessity for those who live in flood prone areas, especially those who live in high hazard flood areas. The only guaranteed flood insurance coverage available for your home is Federal Flood Insurance purchased through your insurance agent or company. Flood insurance is not available to residents of communities that do not participate in the National Flood Insurance Program. The coverage is available separately from your homeowner’s policy through a program developed by private industry and the federal government. The federal government determines whether an area is prone to flooding and considered to be in a flood plain. Flood certifications will indicate whether the property lies within an area so designated.

Things to consider

Contact your insurance agent to purchase the flood insurance and to learn more about your eligibility.

There is a standard 30-day waiting period for new applications and endorsements for coverage.

You will not be insured if purchase a policy few days before the flood.

25% of all flood loss claims are filed in areas of low to moderate risk.

Buy a policy with guaranteed replacement-cost coverage, or get you home appraised every few years to make sure you have enough insurance.

When comparing insurers, one question to ask is how quickly are your claims resolved?

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