Insurance Pays $55 Million for New Mexico Freeze

The shortage of natural gas and record temperatures of freezing that crashed in New Mexico, insurance companies February for $ 55 million in claims.
A report by the Insurance Division of the State Public Regulation Commission said that the owners received the most help, which is 7422 of nearly 8900 claims that were paid and almost $ 45 million total insurance payment.
The Santa Fe New Mexico said Tuesday that more than $ 10 million went to pay 1352 a trade or business demands, while less than $ 200,000 went to 87 auto claims.
In total, 9,600 insurance claims were filed, 273 were refused and 474 did not result in payments from the insurance company.
Extreme winter weather left an estimated 32.000 homes and businesses in New Mexico, without natural gas for several days.
While it is difficult to place an exact cost of the damage caused by natural gas cutting and freezing, the State memo offers a partial accounting by 159 licensed insurance companies that have submitted data to the Division of Insurance.
"That's a little deal," said Rep. James Strickler, R-Farmington, the Monday of the payment of $ 55 million during the inaugural meeting of the Emergency Natural Gas Task Force Legislative Research.
The claim was average homeowner $ 6,000, compared to $ 7.500 on average commercial claims. The affirmation of the average car was $ 2,200.
The memorandum shows that the number of claims and the insurance money paid does not reflect the magnitude of the damage to New Mexico.
Not counted are the dollars that individuals and businesses spend on deductibles to activate their insurance policies. The figures do not include damage to uninsured property or infrastructure of the city or county, such as municipal water systems which burst frozen pipes thawed since.
In seeking federal help early this year, the state estimated $ 4.6 million in damages to the insurance entities and public infrastructure, state Homeland Security Secretary Michael Duvall said Monday.
That cost could rise. The State added three people to the list of recipients of federal assistance after the initial request was made, said Duvall.
The Federal Emergency Management Agency will pay 75 percent of the total cost, with the division of state and local governments the remaining 25 percent said Duvall.

Long-Time Virginia Insurance Commissioner Gross Dies

Alfred W. Gross, who served as Insurance Commissioner of Virginia for 14 years until he retired last year, has died, according to the National Association of Insurance Commissioners (NAIC).
Gross retired last December at age 64 from his position as Insurance Commissioner of Virginia, a post he had held since 1996. The first began with the Bureau of Insurance in the State of Virginia Corporation Commission in 1981.
In October last year, the NAIC issued its Award for Distinguished Leadership Chair member of NAIC blank. The award honors a member of NAIC, has demonstrated exemplary leadership, was a sustained period of services, and has contributed significantly to advancing the mission of the NAIC.
"We are saddened to learn of the passing of our dear friend and former colleague, Al Gross. In his 14 years as commissioner of the Virginia Bureau of Insurance before retiring last fall, Al was an invaluable asset to the NAIC and mentor to many fellow regulators, "said NAIC President Susan E. Voss by statement.
"He was a leader in financial regulation and internationally renowned for their contributions. State-based regulation is better for it. While it was praised for his expertise in regulation, Al was also appreciated for their service and friendship. On behalf of the NAIC, we extend our condolences to his family. "

MetLife Auto Faces Wrath of Independent Group over Offering Free Car Insurance

In an attempt to curb the increasing cases of accidents, a new program called "Teens on the road safety program" has been grounded for adolescents aware about safe driving.
On the drive, kick started by MetLife Auto & Home, teens who do not find any accident in a year, offered $ 50 American Express (R) Rewards Card as a sign of its commitment to safe driving. The offer shall be dealt another card of $ 50 for the driver maintains the same record next year too.
To qualify for it, teens have to undergo first 20 trips weekly driving with a parent or guardian, after which they must present a complete record of travel to MetLife Auto & Home.
Mike Convery, Chief complaint, MetLife Auto & Home, said, "We hope this new program helps teens learn good driving habits for life. If we can prevent one death for teenagers, will be well worth the effort."
Meanwhile, a group of independent insurance agents have expressed their disagreement to the fact that new GM car buyers are being given a one-year auto insurance policy at no additional cost through MetLife. The opposition group is of the view that GM's sales partners are projecting as agents selling car insurance.
Despite all opposition, the MetLife Auto has ensured that it maintains its policy of providing free car insurance new buyers of GM.

Insurance Issues - Update

Some Insurance issues are listed below. 

The insurance industry is certainly complicates the buying process! We conducted the concerns of many insurance in the insurance world post 9 / 11. Unfortunately, the list of topics is a moving target, so the possibility of new problems that arise is always present.

The first is the issue of control wiring and tubing. The short answer is: if the house has not insurable. The long answer is that small amounts may be acceptable for certain insurers in certain seasons. We recommend a call to the insurance broker buyers immediately. We will include the cost of removal and replacement in our report. Usually less than 10 percent of the total electrical installation is the maximum amount an insurance company is willing to insure.

Another electrical problem is 60 Amp service. This was typical serving size in homes before 1960. That can be overloaded with modern electrical needs. Expect that any insurance company to require an upgrade of the service a few months of ownership change.

Aluminum cables should usually be updated within a few months of ownership change. Aluminum wire is mainly used from 1969 to 1977. If found, you will find the outlets, switches and wire nuts to the need to update. We examined about 150 homes per year aluminum cable. Most require an upgrade to varying degrees.

Oil tanks are another common theme of insurance. The risk is the loss and environmental pollution around the tank. Tanks inside the house should usually be younger than 20 years, and underground storage tanks is usually not insurable, even if they are in use. Abandoned tanks must be removed.

Pipe galvanized steel supply is now uninsurable. Supply lines under pressure, and the steel corrodes over time, so the risk of flooding associated with galvanized steel pipes that age is no insurer wants to take. Immediate replacement is recommended when we found this.

Polybutylene pipes installed supply between 1979 and 1995 and there have been no problems with it under normal use. The reason for their failure is not well understood. Many polybutylene piping systems are still in use, and have not experienced failures. Rumer has some insurance companies do not feel comfortable to ensure the piping system. A call to the insurance comany is suggested.

Some coating materials to security concerns in the past. These are usually a problem with fire insurance, because they were highly combustible. Insulbrick is an example of this. 

Waiting period in health insurance

When you enroll in a health insurance policy, which does not apply with immediate effect. The policy takes effect after a "waiting period", depending on the type of insurance and other factors such as age, medical history and the company. In other words, the insurer is liable to entertain any number of claims filed after that waiting period.
If a person is injured or subjected to hospitalization during the waiting period, the customer may not be covered for a loss. As mentioned before, the concept of waiting period that exists across different types of insurance policies, and the amount of waiting time may vary depending on the insurer and the nature of the insurance policy.
However, the following are general indicators of the waiting period. There is an initial waiting period of 30 days, ranging up to 90 days in some cases, from the effective date of the policy. Some insurance policies may allow treatment of accidental injuries outside a minimum of 24 hours of hospitalization.
Pre-existing diseases can not be covered in the first 2-4 years of politics based on their age and nature of politics. It is a pre-existing condition is any medical condition of a person before the commencement of the policy. Now, politics can be effective for all other ailments in the early years of the policy. Buy any complaint by diseases related to pre-existing illness will not be covered in the first 1-4 years of the policy as stated in the policy document.
This feature is most common in insurance policies designed for seniors. In addition, the insurer may insist that you stick with the same insurer if you want coverage to continue without waiting times in the future.
The third is the disease-specific period of waiting, in which a disease will not be covered. Again, this varies from company to company. However, some common diseases that have waiting periods are, ENT disorders, polycystic ovarian disease, diabetes, osteosrthiritis, osteoporosis, hypertension and hernia. These diseases are usually covered only after two years from the date of commencement of policy.

Motorcycle Insurance Tips

Top 3 Tips for Buying a Used Motorcycle – Buying a used motorcycle is a fun and adventurous time. Not only can you save a heap of cash, you can often get more bike than you could if you were shopping the dealer.
Scooter Safety and You – Scooters still take skill to ride safely and effectively. Unfortunately, many people never take the time to learn these skills.
Buying Your First Bike – Buying your first motorcycle is, in many ways, very different from buying your first car.
How to Keep Your Motorcycle from Professional Thieves – It only takes a few seconds for some motorcycle thieves to hoist your bike into their van and speed away, leaving you with nothing but your motorcycle insurance to get you home.
Top Five Rider Rules for Motorcycle Awareness Month – While you’re polishing up your bike and getting ready for weekend after weekend of open-road freedom, here are some important rules to keep in mind.
Getting Ready for Sturgis 2010 – Of all the motorcycle events and rallies that take place every summer across the nation, none is more iconic than the rally in Sturgis, ND.
Newbie Rider Mistakes – Every time a movie like Wild Hogs or Easy Rider comes out (which, admittedly, isn’t that often) there is a spike in motorcycle sales.
How to Choose Clothing for Riding Your Motorcycle – Wearing the right clothes when you’re cruising down the road on your motorcycle can make the difference between a few simple bumps, bruises and scratches, and a full-body road rash that may require medical attention.
How to Get a Motorcycle Permit – Like with your driver’s license, the motorcycle permit process can vary greatly from one state to the next.
What Kind of Motorcycle Helmet Should I Wear? – The type of motorcycle helmet you need to wear will depend on a number of factors. Some states require you to wear a helmet while riding a motorcycle.
Group Riding for the Novice – There are times that you just want to grab a big group of friends and take a daylong ride. Novices should know a few of the rules before they grab that motorcycle insurance card and join the pack.
What Kind of Bike Should I Buy? – Before you start looking into particular models, there are some important questions you need to start asking yourself.

                                            

Reinsurance market in transition

$48 billion in losses at July 1 renewals deadline.

The July 1, 2011 reinsurance renewals revealed a market that is in transition, with reinsurers that are repositioning themselves following $48 billion (US) in losses over the past 16 months, according to Willis Re.

The company further estimates that natural catastrophes in the first quarter of 2011 have cost reinsurers about 10% of their total shareholders’ funds at the end of December 2010.

“The reinsurance market remains in a state of uncertainty regarding its short-term future direction, but what is clear is that any turn in the market pricing cycle is unlikely to follow historic patterns,” said Willis Re chairman Peter Hearn in a release. “More sophisticated capital management techniques and greater transparency over profitable market niches are driving fragmentation of the cycle into territory- and class-specific cycles.”

Willis Re’s June/July 2011 renewals report stated the key to a hard market is any event resulting in a further reduction of market capitalization. The report offers some of the most likely triggers, including a major natural catastrophe or potentially, a more damaging series of medium-sized catastrophes, as well as a financial downturn or contagion arising from European debt issues.

While the global catastrophe losses of 2011 have impacted reinsurers’ view of risk, the longer-term implications remain to be seen, according to Guy Carpenter & Company. This will come into sharper focus when recent event losses are fully realized and the industry reaches consensus on the integration of the model changes.

In the first quarter of 2011, the reinsurance sector’s dedicated capital position fell by 4.4% to about $165 billion (US), stated a media release. In the second quarter, reinsurance capital remained essentially flat and moderately down year-to-date.

“How the reinsurance sector’s capital position develops over the remainder of the year is heavily dependent on large loss experience, which will be influenced by the hurricane season,” said David Flandro, global head of business intelligence, Guy Carpenter & Company. “A light hurricane season with no significant landfalls could enable reinsurance capital to resume growth, while a heavy season with at least one significant landfall could mitigate growth or potentially result in an impairment of capital for 2011.”

American Insurance

A conservative government sweeps to power for a second term. It views its victory as a mandate to slash the role of the state. In its first term, this policy objective was met by cutting taxes for the wealthy. Its top priority for its second term is tackling what it views as an enduring vestige of socialism: its system of social insurance for the elderly. Declaring the current program unaffordable in 50 years’ time, the administration proposes the privatization of a portion of old-age benefits. In exchange for giving up some future benefits, workers would get a tax rebate to put into an investment account to save for their own retirement.
For all the fanfare that surrounds the Bush administration’s efforts to present a bold new idea on pension reform, the truth is that it is not new at all. In fact, the proposal looks suspiciously like the plan set in train during Thatcher’s first term in 1979 and which has since led Britain to the brink of a crisis. Since then, the nation’s basic pension, which is paid for out of tax receipts, has shrunk dramatically. The United Kingdom has the stingiest state pension program of any G8 nation, and there is growing consensus -- even among British conservatives -- that reform is needed. And ironically enough, considering that America is on the verge of copying Britain’s mistake, most experts seek reform in the direction of a more generous, and simpler, basic state pension -- one similar in design, in other words, to America’s Social Security program.
The Conservative MP who is the opposition spokesman on pensions is one admirer of the U.S. system. “I like the way they distinguish between Social Security and means-tested welfare,” he says. “They have higher Social Security benefits to keep elderly people off welfare.” And last year, in a startling reversal of its decades-old policy, the Confederation of British Industry, the United Kingdom’s premier business group and the functional equivalent of the U.S. Chamber of Commerce, called for a more generous state retirement benefit, saying -- remember, this is the nation’s leading business lobby talking -- that it would even support raising taxes to help pay for it.

Insurance Updates

Insurance is a legal contract that protects people from the financial costs that result from loss of life, loss of health, car loss, loss due to catostrophe or property damage etc.... It helps to manage the risks of everyday life, to recover from the unexpected and to prepare for the future. Basically, insurance enables to cover a loss or accident due to misfortune. The payments come from a fund of money contributed by all the holders of individual insurance policies. In other words, individual risks are pooled and shared, with each policyholder making a contribution to the common fund. The contribution is known as the premium. Premiums are paid to insurers. Premium varies between individual policyholder depending on the risk involved. In motor insurance a young person with a high powered car or a driver with a long history of accidents will pay a higher premium than a mature and experienced driver who has been accident free. Similarly someone who is young, fit and in a risk-free job will find it easier to buy life insurance, and will pay lower premiums than someone who has a heart condition or is in a risky occupation. Insurers are professional risk takers. They know the probability of different types of risk happening. Clearly, only a proportion of policyholders will require compensation from the fund at any one time.

Life comes at you fast. Insurance is a cornerstone of your financial security and the peace of mind. The following points should be bear in mind when going for insurance : -
•    Insurance provides compensation for the actual value of property. It cannot cover the loss of sentimental value.
•    Losses must not be deliberate and not inevitable.Clearly, you could not buy fire insurance for a house, which was already burning or life insurance for someone who is on deathbed.
•    There must be a large number of similar risks so that the likelihood of a claim can be spread among other policyholders. It must be possible for insurers to calculate the chance of loss so that a premium can be set which matches the risk.
•    There are some risks, which have financial implications so vast that they can be dealt with only by the state. These risks may arise due to war or nuclear bomb and are normally not insurable. But things are changing now.
Insurance takes the risk away from people's lives and businesses. It brings peace of mind to the policyholder. In return for paying premiums the policyholder knows that, if the unexpected happens, financial compensation will be available from the fund of premiums.

Insured damage from Slave Lake wildfires hits $700-million mark

Insured damage caused by wildfires that ravaged a large amount of the town of Slave Lake, Alberta in May has hit the $700-million mark, according to the Insurance Bureau of Canada, citing PCS-Canada data.
The makes the Slave Lake wildfire the second-costliest insured disaster in Canadian history. The most expensive insured disaster in Canadian history remains the ice storm that hit Quebec and Ontario in 1998, which cost over $1.8 billion (figure adjusted for inflation).
Data collected by PCS-Canada confirms that several thousands of claims have been filed for damage to homes, cars and businesses in the wake of the fires, IBC says.
"The scale of the destruction to homes and property is incredible," said Doug Noble, Vice-President, Alberta and the North, IBC. "It's devastating for those who have been affected."
The entire recovery process may take more time than usual because of the extent of the claims and the availability of skilled trades and labour for demolition and rebuilding, IBC says.

Insurance Issues

Some Insurance issues are listed below.

The insurance industry is positively complicating the home buying process! We have run into many insurance concerns in the post 9/11 insurance world. Unfortunately, the list of issues is a moving target, so the possibility of new issues arising is ever present.
First among these is the issue of knob and tube wiring. The short answer is: if the house has it, it’s not insurable. The longer answer is that minor amounts may be acceptable to certain insurers, at certain times of the year. We recommend a call to the purchasers insurance broker immediately. We will include the cost of removal and replacement in our report.
Another electrical issue is 60 Amp services. This size of service was typical in houses prior to 1960. They can be overloaded with modern electrical requirements. Expect any insurer to need a service upgrade within a few months of tenure change.
Aluminum wiring typically needs to be updated within a few months of ownership change. Aluminum wiring was used primarily from 1969 to 1977. If found, expect the outlets, switches and wire nuts to need updating. We inspect roughly 150 aluminum wired house per year. The vast majority require updating.
Oil tanks are another common insurance issue. The risk is leakage and contamination of the environment around the tank. Tanks inside the house must typically be newer than 20 years, and underground storage tanks will typically not be insurable, even if they are currently in use. Abandoned tanks should be removed.
Galvanized steel supply piping is currently uninsurable. Supply piping is under pressure, and steel eventually corrodes, so the flood risk associated with old galvanized steel piping is one which no insurer wishes to assume. Immediate replacement will be recommended when we find this.
Some siding materials have been insurance concerns in the past. These are typically a fire insurance issue, as they were very combustible. Insulbrick is an example of this.

THIA Urges Canadians to Carry Proof of Medical Insurance for European Travel

Canadians travelling to Europe this summer are urged to carry proof of supplemental health insurance as various governments now require visitors to have adequate medical coverage while in their respective countries.
According to the Department of Foreign Affairs and International Trade (DFAIT): "Your Canadian insurance is almost certainly not valid outside Canada. It is essential to obtain supplementary travel insurance ― health, life, disability, driving, vehicle, and trip cancellation ― before leaving Canada."
David Hartman, president of the Travel Health Insurance Association of Canada (THIA) states that "In addition to Cuba, which last year announced it would require visitors to show proof of medical insurance when entering the country, more nations, particularly in Europe, are also requiring such proof."
Hartman notes that the DFAIT website lists Belarus, Bulgaria, the Czech Republic, Estonia, Latvia, Lithuania, Poland, Slovakia and Ukraine as specifically requiring Canadian citizens to be prepared—in some cases required—to show proof of medical coverage while visiting. It notes further that in Bulgaria, the Czech Republic, and Estonia, the minimum medical coverage required is 30,000 euros (approximately $42,500 Canadian), while Lithuania stipulates that health insurance is mandatory for all non-European Union citizens, and visitors unable to demonstrate sufficient proof of medical coverage must purchase short term insurance at the border. Similarly, DFAIT notes that the government of the Ukraine requires all visitors to obtain mandatory health insurance from a state-supported company at their point of entry.
Mr. Hartman warns that the small amounts provinces pay for out-of-country health services would not meet those coverage requirements, although supplemental, private travel insurance plans available in Canada cover, at minimum, $1 million of medical emergency and repatriation expenses.
"Because of changing border requirements and controls, we urge all Canadians travelling abroad to check the DFAIT website at http://www.voyage.gc.ca/countries_pays/menu-eng.asp and click on the countries they are planning to visit to determine their medical insurance requirements, if any. They will be found in the Entry/Exit Requirements section," says Mr. Hartman.

About THIA. THIA is the national organization representing travel insurers, brokers, underwriters, re-insurers, emergency assistance companies, air ambulance companies and allied services in the travel insurance field

Motorcycle Insurance In Canada: Things You Should Know

 In Canada, motorcycle owners must have insurance by law. But each insurance company makes its own assessment of risk when setting rates for a given rider, based on a long list of variables. The end result is that rates can vary significantly from insurance company to company.
Motorcycle insurance is distributed to consumers through different networks of licensed insurance professionals. They are:
• Insurance Brokers - Provide independent and expert advice, advocacy and support to consumers with respect to their motorcycle insurance needs and typically work with, and sell policies for, a number of different insurance companies.
• Insurance Agents – Provide expert advice, advocacy and support to consumers with respect to their motorcycle insurance needs and work with, and sell policies for, one insurance company.
• Direct Writers (Direct Response Insurers) - Provide expert advice, selling and servicing property and casualty insurance products, including motorcycle insurance, in Canada through direct response marketing and distribution for one insurance company.
Have Motorcycle Insurance?
Motorcycle insurance protects riders in the event of a future loss. A standard motorcycle insurance policy covers the following:
• Third-Party Liability
Protects you in the event of an accident causing loss or damage to another person when you are at fault.
• Accident Benefits
Offers benefits to protect you if you are injured in an accident, regardless of who caused the accident.
• Uninsured Automobile Coverage
Protects you in the event of death or injury caused by an uninsured motorist or by a hit-and-run.
Other Optional Coverage Available On Most Motorcycle Insurance Policies:

• Loss or Damage Coverage
Includes All Perils, Collision, Comprehensive and Specified Perils. You can purchase a combination of these coverages to protect you against loss of, or damage to, your motorcycle caused by collision, fire, theft, and a variety of other unpredictable risks. 
Considerations When Buying Motorcycle Insurance:
• Shop Around
Motorcycle insurance rates can vary significantly from one insurer to the next, so only by checking around for comparative quotes can you be sure you have the best price available.
• Motorcycle Riders Training Course
You may be able to lower your insurance premium by taking a training course.