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The Life Insurance Handbook (Paperback)

noreply@blogger.com (Admin) — Sat, 14 Jun 2008 12:33:00 +0000

Insurance Handbook :The Life Insurance Handbook (Paperback)
by Louis S. Shuntich (Author)

Now - the Society of Financial Professionals teams up with tax and estate planning expert Lou Shuntich to bring you a practical new reference guide that is both compact and comprehensive. Concise and to-the-point, this handbook provides the latest industry information on:

a.The legal aspects of acquiring and owning a policy
b.The types of products and contracts available
c.Simple criteria for evaluating and comparing policies and insurance companies

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d. The tax implications of each product type
e. Structuring policies, ownership arrangements and beneficiaries for maximum tax and legal benefits - and tips for avoiding traps and pitfalls in the process

While not an exhaustive account of the industry - it's an excellent primer that covers the key concepts necessary when advising clients or analyzing portfolios and estates. And in keeping with the Society of Financial Professionals' steadfast commitment to providing continuing education to the industry. The Life Insurance Handbook is the perfect learning too for keeping busy financial professionals and their clients up-to-date.

Revealing Life Insurance Secrets: How the Pros Pick, Design, and Evaluate Their Own Policies (Trade Secrets) (Paperback)

noreply@blogger.com (Admin) — Sat, 14 Jun 2008 12:21:00 +0000

Life Insurance Secrets :Revealing Life Insurance Secrets: How the Pros Pick, Design, and Evaluate Their Own Policies (Trade Secrets) (Paperback)
by Richard M. Weber (Author)

Life insurance is an extraordinary financial tool that can affordably deliver resources to just the right person at just the right time of financial stress – loss of income, taxes, or liquidity needs due to several circumstances…including death. As simple as it should be, a true understanding of life insurance is complicated by psychological and other practical factors related to the increased complexity of financial products that serve our family, estate, business, and charitable needs. Dick Weber has devoted the last twenty years of his insurance career devising communication processes and educational software that can give the consumer the opportunity of making sense of it all.

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Weber's greatest breakthrough may have been in developing statistical analysis that provide a better ongoing measuring tool of how likely a policy would sustain for as long as a client might live. This process of analysis was recently given confirmation by federal securities regulators, and is applied not only to new products, but to the trillions of dollars worth of polices purchased over the last twenty or more years. Weber goes beyond blame to give consumers the right questions to consider for managing or modifying these polices in place, in addition to giving credible and experienced advice for the policies of the future. Weber's Revealing Life Insurance Secrets is the quickest, surest, and most effective way to understand and explain the pros and cons of life products.

Questions and Answers on Life Insurance: The Life Insurance Toolbook

noreply@blogger.com (Admin) — Sat, 14 Jun 2008 12:11:00 +0000

Insurance books :Questions and Answers on Life Insurance: The Life Insurance Toolbook
by Anthony Steuer (Author)

An easy-to-use life-insurance guidebook. Chartered Life Underwriter (CLU) Steuer notes that life insurance is "one of the least exciting topics to think about," and here he offers a painless reference book to that gray world. The format of the book, framed as answers to frequently--and not-so-frequently--asked questions, will help readers make informed decisions about what kind of life insurance to purchase and how to monitor your holdings to avoid any nasty surprises down the road. Read in its entirety, the book provides a deep-immersion course (this exhaustive resource is certainly dense) on all aspects of the subject. But it's also helpful in addressing the quandary of the moment, from something as basic as whether or not to buy term or permanent insurance to the material knowledge that can be gleaned from insurance regulatory information reports. Steuer lays out pros and cons, demonstrates how you can use mathematical calculations to arrive at a plan that best suits you, brings needs-analysis into play and tenders an array of quick facts that help put issues into perspective. Though the sentences are often halting and poorly constructed--"It stems from the old principle that if a villager's house burned down, and then the other villagers would help to rebuild the house"--the information is solid. Steuer's premise is economic commonsense--when laying out tens of thousands of dollars, it's good to know what you're buying--and his guidance is valuable.

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During your life, you’re likely to make important choices that will affect you for years to come: determining the best community, buying the perfect house, and starting a new family. Purchasing life insurance falls into the same category. But selecting the right policy isn’t easy, especially when you’re faced with a constant barrage of commercials and brochures from competing life insurance companies.

With twenty years of experience in the life insurance business, Anthony Steuer delivers a practical, one-of-a-kind resource to guide you through the basics—and the finer points—of life insurance and to help you choose the policy that is just right for you and your family. Using a simple question-and-answer format, Steuer covers everything you need to know about life insurance, including how to:

a. Differentiate between types of policies
b. Find and evaluate a policy and company
c. Hire a trusted agent
d. Understand the practice of underwriting
e. Monitor your policy

Steuer’s invaluable advice will safeguard you from unpleasant surprises and unnecessary pitfalls. For anyone, from consumers to financial advisors, Questions and Answers on Life Insurance is the definitive resource on life insurance.

Fitch: U.S. P/C Industry Shifts To Modest Underwriting Loss In 2008

noreply@blogger.com (Admin) — Sat, 14 Jun 2008 12:00:00 +0000

Fitch Ratings said that following a review of industry aggregate statutory financials for year-end 2007 and 1Q 2008, the rating agency has updated its full-year 2008 U.S. Property/Casualty industry forecast and now projects a modest underwriting loss and significant reduction in profits and return on surplus for the year.

In a new report, Fitch Ratings reviews key drivers influencing industry results for 2007 and going forward. While the property/casualty market has experienced favorable results in 2007 and over the last five years, Fitch believes that this success has led to the development of excess capital in the market, which has fostered intense price competition that will lead to deteriorating profits in 2008 and at least through 2009.

"[T]he market's previous success has led to more competitive market conditions, and a downward trend in insurance premium rates as evidenced by an unprecedented decline in net written premium volume for the industry in 2007 from 2006. These changes in the pricing environment in turn promote less favorable underwriting performance and profitability," according to the report.

Fitch believes that the market has crossed a tipping point in the underwriting cycle, and industry returns on capital for current accident-year business has slipped to inadequate levels, although the rating agency notes that a number of more proficient individual underwriters will still produce sufficient returns.

"The market environment is anticipated to deteriorate further going forward, and it is difficult to project the length and extent of the current soft market, and the circumstances that will promote a shift to hardening market rates," Fitch wrote.

"With a trend of deteriorating underwriting performance developing and continued declines in premium rates across the broader market, the projected industry combined ratio has shifted from a 98.1 percent combined ratio to a modest underwriting loss for the year," Fitch wrote. This underwriting result, coupled with a modest decline in estimated investment income, has led to a corresponding decline in projected net income, such that the estimated return on surplus is now 7.6 percent, down from 9.2 percent previously."

Fitch also forecasts flat written premium growth for property/casualty insurance in 2008, similar to 2007, and a combined ratio of 100.4 percent in 2008, compared with 95.6 percent in 2007.

To access this report, "Property/Casualty Industry Statutory Results And Forecast: Shift To Modest Underwriting Loss In 2008" visit http://www.fitchratings.com/corporate/reports/report_frame.cfm?rpt_id=389682§or_flag=4&marketsector=1&detail=

Source: Fitch Ratings

Interviews - Fuji Fire Marine Insurance: Dare to Be Different

noreply@blogger.com (Admin) — Sat, 14 Jun 2008 11:53:00 +0000

To grow in a mature market and economy like Japan is not easy. However, Fuji Fire & Marine Insurance has developed a sustainable growth strategy, earning it an “A-” rating from Standard & Poor’s Ratings based on “improved levels of profitability and capitalisation and improved prospects for strengthening the company’s competitive position”. Mr Bijan Khosrowshahi, its President and CEO, tells Ms Irene Yeo, Deputy Editor of Asia Insurance Review, what these competitive strengths are and why being different is central to its strategy.

In a land where homogeneity reigns, it takes a lot of courage to be different. However, that is what Fuji Fire & Marine has set out to be and it is turning that strategy into its competitive advantage.

Creating Different Products
Mr Bijan Khosrowshahi, who is the insurer’s first foreign CEO and who joined in 2004, recalled: “When I came here, it was very obvious that product differentiation was not very common in Japan. So a project was initiated and we asked for volunteers from the company to form a team and to look into creating new products to differentiate us in the marketplace.”

The project was a success and two highly popular products - Veriest which targeted the high-end motor market and Senior’s First Aid Kit which allows senior people aged 50 to 98 to buy basic accident & health cover – were introduced.

New Professional Advisers
However, these are not the only differences about Fuji Fire & Marine. The company is also forging ahead with a unique distribution channel, a different strategy to go alone instead of merging and the unique focus on accident & health products and not motor products.

“We have a unique distribution channel – a dedicated sales force we call Professional Advisers or PAs. Historically, some of the Japanese insurers used to have these sales people as well as the agency network, but somewhere along the way most of them shifted their focus to agents. Fuji Fire & Marine continues to work with agents as well, but in 2003, we went through an organisational restructuring and decided to focus on the PAs, a new version of the sales force,” Mr Khosrowshahi explained.

Focus on Accident & Health Insurance
Hiring highly qualified individuals to form this new team, Fuji Fire & Marine put them through a vigorous five-year training programme.

The insurer currently has about 2,500 PAs which produce more than 20% of its total premium income, and it has plans to expand the numbers to 3,000 in the future. These motivated staff focus on accident & health products instead of the traditional motor policies, and the bulk of their remuneration is based on sales commission.

Motor Market Declining
The focus on accident & health insurance is also a departure from the norm in the market where most other companies rely quite heavily on the motor market. Mr Khosrowshahi explained that the motor insurance market is declining.

“The demographics are changing. People are growing older, so fewer cars are being sold. Cars are getting smaller and good drivers are getting discounts. All these translate to lower average premiums for motor policies,” he said. So that is why the company has decided to move to the accident & health segment and so far it accounted for 10% of the company’s portfolio in 2006 (see Fact Box below), up from 7% a few years, and Mr Khosrowshahi expects this to grow to 15% soon.

Not Taking the M&A Route
Turning to mergers and acquisitions (M&A) which have dominated the Japanese insurance landscape after the Big Bang deregulation, Fuji Fire & Marine has chosen not to embark on this path.

“If you look carefully at the industry before and after the consolidation, the market shares of the companies have not really changed very much. The mergers have not created much synergy for the companies as initially expected,” observed Mr Khosrowshahi.

Not Looking for Market Share
Acknowledging that Fuji Fire & Marine is small with a market share of 5% despite being the seventh largest non-life insurer in Japan, he stressed that the issue is not about market share. Instead, the focus is on profitable sustainable growth.

Next Big Wave
Now that the dust of consolidation has settled, Mr Khosrowshahi said the next wave of change is to reduce the expense ratio. Right now, this is very high, averaging from 33-35% for the whole industry. Out of this, 17% is commission expense ratio, while the remaining is the general operational ratio. As the commission segment is somewhat fixed, the area to tackle would be the operational part.

Moving to One Location
Fuji Fire & Marine has already put in action its strategy for this cost cut. It is moving all its business processing into one location – Matsuyama Central Business Processing Center in Matsuyama, Ehime prefecture – to save cost and leverage on resources.

Rating Upgrade Reaffirms Strategies
These strategies are what led to its upgrade by S&P Ratings Services and Mr Khosrowshahi said this further indicates that Fuji Fire & Marine is creating “A New Quality” of insurance and value for its customers and shareholders. It also reaffirms its strategies to differentiate itself and he has no doubt the company will continue to be successful and provide continuous sustainable profitable growth for all stakeholders.

AXA China insurance JV wins approval to open Jiangsu unit

noreply@blogger.com (Admin) — Wed, 26 Mar 2008 11:44:00 +0000

BEIJING (XFN-ASIA) - The China Insurance Regulatory Commission (CIRC) said it has given its approval to AXA-Minmetals (NYSE:AXA) Assurance Co to open a branch in eastern China's Jiangsu province.

Shanghai-based AXA-Minmetals is a 51-49 joint venture between Europe's No. 2 insurer AXA and China Minmetals Corp, the parent of Minmetals Development Co Ltd (OOTC:MMDTF) (SHA 600058).

The venture currently has branches in Beijing and Guangzhou, capital of southern China's Guangdong province, with 2007 premium income totaling 901 mln yuan.

Jiangsu is a major insurance market in China, and more insurers are seeking to expand in the prosperous coastal province.

(1 usd = 7.05 yuan)
allen.shu@xfn.com
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xfnals/xfntm
Copyright Thomson Financial News Limited 2008. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

INSURANCE REGULATION

noreply@blogger.com (Admin) — Wed, 26 Mar 2008 11:43:00 +0000

By TERRENCE STUTZ / The Dallas Morning News
tstutz@dallasnews.com

AUSTIN – Score one for Farmers Insurance and zero for some consumers.

The Texas Department of Insurance has rejected a complaint by Irving homeowner Michael Campbell and decided that the insurer acted properly when it collected an extra premium charge months after Mr. Campbell renewed his home policy and paid his annual premium.

Mr. Campbell was one of about 33,000 homeowners who were caught in a rate fight between Farmers and state Insurance Commissioner Mike Geeslin. All of the affected homeowners later received bills from Farmers asking for more money to keep their policies in force.

"The department's goal is to ensure fairness. While this situation is unfortunate, it is in accordance with the law," the insurance department said in a letter supporting Farmers' position.

Mr. Campbell said it is apparent that the insurance department defines fairness as "whatever pleases the insurance industry."

"The fact is," he said, "the insurance industry in Texas is out of control without anyone in charge to keep them honest. The Texas Department of Insurance puts forth a front claiming to be pro-consumer, but actions, or lack thereof, speak louder than words.

"This company ran roughshod over thousands of consumers and ran roughshod over the Texas Department of Insurance."

Farmers officials said the additional billings were sent out after the company first filed and then withdrew a plan to revise its rates in Texas last fall.

The company cut premiums by an average of about $100 for those policyholders as part of the rate package filed with the Texas Department of Insurance in June. However, state insurance regulators criticized the plan for raising premiums near the Texas coast – and Farmers reacted by pulling its rate plan.

By the time the plan was withdrawn, about 66,000 policy renewals had been sent out reflecting the new premiums.

Farmers officials said the company was required to charge the rates it had on file with the insurance department, which for Mr. Campbell and 33,000 other customers meant the higher charges that were in effect before Farmers filed its new rate plan. The other 33,000 customers with policy renewals saw their premiums go up – but they were issued refunds.

"Farmers regrets that these billing issues occurred and apologizes for any inconvenience this situation has caused our customers," a company spokesman said.

Health insurance costs worry workers

noreply@blogger.com (Admin) — Wed, 26 Mar 2008 11:39:00 +0000

AFL-CIO SURVEY | 1 in 3 skipped medical care because of the cost

BY FRANCINE KNOWLES fknowles@suntimes.com

One in three families had to skip medical care because of cost, and 25 percent had serious problems paying for the care they needed, according to a survey of more than 26,000 people released Tuesday by the AFL-CIO.

Most of the survey respondents were employed, college graduates, union members and had insurance, a group that AFL-CIO President John Sweeney said "you would expect to have positive experiences with America's health-care system. They're hurting."

Of those with insurance, 95 percent said they are dissatisfied with health-care costs, and 62 percent are dissatisfied with health-care quality, the survey found.

Meanwhile 76 percent of people surveyed who lacked insurance themselves and 71 percent with uninsured children said someone in their family did not visit a doctor when sick because of cost. Sixty-seven percent of the uninsured and 66 percent of those whose children are uninsured said they skipped medical treatment or follow-up care recommended by a doctor.

The survey also found that:

a. 96 percent of people with insurance are somewhat or very concerned about being able to afford insurance.

b. 53 percent of Medicare recipients said their prescriptions are not covered or are unaffordable.

c. 46 percent said they spent between $1000 and $5,000 for health care in the last year, and 17 percent spent more than $5,000.

The survey, touted as one of the largest on health care, was conducted by Peter D. Hart Research Associates between Jan. 14 and March 3.

Contributing: AP
Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Progressive Changes 10,000 Agencies' Signs

noreply@blogger.com (Admin) — Fri, 09 Nov 2007 02:55:00 +0000

Progressive Insurance is changing the indoor and outdoor signs at thousands of its agencies across the country to highlight its affiliation with the business.

Earlier this year, Progressive announced that it was returning the Progressive logo to the independent agents and brokers who choose to represent the company. The change is highlighted in advertising and sponsorship and is most visibly highlighted on signs around the U.S. To date, Progressive reports it has retrofitted more than 10,000 independent agents' signs.

According to Jim Lloyd, Progressive's agency distribution leader, independent agents say signs are second only to Yellow Pages advertising when it comes to local marketing activities that most effectively attract customers to their agencies.

"It's plain and simple – we want to drive customers to our agents' doors so that we can grow together for many years to come," said Lloyd.

Source: Progressive
www.progressive.com.

PIA's Branding Program for Insurance Agents Wins Additional Awards

noreply@blogger.com (Admin) — Fri, 09 Nov 2007 02:52:00 +0000

The Association of Marketing and Communication Professionals (AMCP) has selected the National Association of Professional Insurance Agents' "PIA Branding Program" as a recipient of two awards in its annual MarCom Awards competition.

The PIA Branding Program was presented with a Platinum Award in the Corporate Branding category, one of a limited number of categories representing entire campaigns. The AMCP also presented the PIA Branding Program with a Gold Award in the Advertising Campaign category.

"PIA is honored to be recognized by the Association of Marketing and Communication Professionals with these MarCom Awards," said PIA National President Robert Page. "These awards are a testament to the quality of the branding materials PIA makes available to its members through the PIA Branding Program, Local Agents Serving Main Street America."

The MarCom Awards is an international, creative competition that recognizes outstanding creative achievement by marketing and communication professionals. There were over 5,000 entries from throughout the United States and several foreign countries in the 2007 competition.

During 2007, the PIA Branding Program also received two other awards. The program was named a Gold Award recipient of the Hermes Creative Awards 2007 competition by the Association of Marketing and Communication Professionals. The PIA Branding Program also received an APEX Award for Publication Excellence.

Source: PIA National
http://www.pianet.com

Farmers Insurance Continues to Serve Its California Customers

noreply@blogger.com (Admin) — Mon, 29 Oct 2007 04:57:00 +0000

LOS ANGELES--(BUSINESS WIRE)--Farmers Insurance Group of Companies has moved many of its mobile command centers and its Mobile Catastrophe Claims Bus to serve the most customers when they are allowed to return home.

Farmers Mobile Catastrophe Claims Center Bus is located at the Westfield North County Mall, 200 E. Via Rancho Parkway, in Escondido. The bus is parked near Sears.

The Farmers Mobile Catastrophe Claims Center Bus is a rolling customer support center equipped with top-of-the-line technology for immediate claims handling and outfitted with comforts of home such as a grill for on-the-spot meals. Farmers customers can stop by the Mobile Catastrophe Claims Bus anytime. Reporters are welcome to tour the bus as well.

Farmers Insurance and Foremost Insurance companies are continuing to serve its customers with seven mobile claims centers, for customers to file on-the-spot claims, located throughout Southern California:

1. Escondido High School, San Diego, CA
2. Hilton Garden Inn, 17240 Bernardo Center Drive, San Diego, CA
3. Goodwin’s Market, 24089 Lake Gregory Drive, Crestline, CA
4. Falbrook Community Center, 341 Heald Lane, Falbrook, CA
5. Farmers District Office in La Mesa, 8911 La Mesa Blvd, Suite 101, La Mesa, CA
6. Ramona Community Center, 1710 Montecido Road, Ramona CA 92065

Farmers has more than 400 claims adjusters in Southern California to assist victims of the fires. Farmers advises its customers affected by any of the wildfires from San Diego to Los Angeles and anywhere else these fires spread, to immediately contact Farmers’ 24 hour claims hotline, 800-HelpPoint (1-800-435-7764) for immediate assistance. Foremost customers can call 1-800-527-3907.

As of Sunday October 28, 2007 Farmers has received more than 4,900 claims. Foremost Insurance, one of the Farmers’ companies has received more than 800 claims resulting from the fires and winds.

Farmers is the second largest homeowners insurer in California.

Farmers Group, Inc. is a wholly owned subsidiary of Zurich Financial Services, an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Farmers® is the nation's third-largest Personal Lines Property & Casualty insurance group. Headquartered in Los Angeles and doing business in 41 states, the insurers comprising the Farmers Insurance Group of Companies provide Homeowners, Auto, Business, Life insurance and financial services to more than 10 million households. For more information about Farmers, visit our Web site at www.farmers.com.

Contact:

Farmers Insurance Group
Jerry Davies, 213-400-4459 (cell)
jerry.davies@farmersinsurance.com
Mark Toohey, 805-907-2216 (cell)
mark_toohey@farmersinsurance.com

Car Loan Guide

noreply@blogger.com (Admin) — Sun, 28 Oct 2007 07:14:00 +0000

Want to get a car but don’t have necessary funds on your bank account? If so, why not consider taking out one of the many car loans available on the loans market? However, financing a new car purchase requires some research. Before visiting the car dealership uninformed first of all, do you know that about 70% of all new car purchases are financed? Whether you are going to pay cash for your new vehicle or apply for loans, you should consider financing the car.

Do this in four steps.

1. Analyze your financial situation

This is the first and most important step in the car buying process. Before to determine what car you want, you should know how much money you are ready to spend. You don’t want to get stuck making a bloated car payment that will leave you eating bread and water for three years.

First of all define your monthly budget. It’s quite easy to calculate. Add up all of your fixed monthly expenses, such as your rent/mortgage, phone bill, etc. Subtract that from your net income. Then subtract your estimated extraneous expenses, such as food, gas, entertainment, etc. The result should be an amount of money you have to play with.

Also you should bear in mind that getting a vehicle involves more than a down payment and monthly payments. Add to this licensing, registration and other hidden costs, as well as monthly insurance costs, fuel and maintenance. Oh, yes, it is not cheap to possess a car!

When you have done all necessary calculation you must get an approximate figure of the budgeted amount you can use for car payments. But remember, it’s good if the sum of your monthly car payment won’t be more than 20% of your budget. Once you determine that figure, stay with it.

2. What car do you want?

When at last you managed to settle on a monthly allotment, you can determine what car fits into the price range.

Of course, this is a purely personal choice, but not to be mistaken consider what you really need. Do you have a family? You can find plenty of affordable, safe and reliable minivans and station wagons on the market. If you are single or drive a lot in the city, there is a wide range of models to choose. Do you use your vehicle for work-related tasks, such as hauling, delivery, etc? Consider one of light and heavy-duty pickup trucks and vans. Midlife crisis? There are several convertibles and sports cars that will make you feel young again.

Also consider your wants. If you want to save money on the increasing gas prices compact cars get really good gas mileage so they’ll suit you. Going to take road trips? Consider something that gets good mileage and has cargo space and lots of cup holders. Fond of off-road driving? The SUV is your best bet. Some are even equipped with a first-aid kit!

When at last you’ve narrowed your choices down to a couple, it’s time to do some car research.

3. Do your homework

This is a step where you will need to spend some time sifting through some details, but it will be worth the effort in the end. Remember: the more you know about what you’re buying, about whom you’re buying from, and about the buying process itself, the more money you will manage to save in the end.

There are a lot of places to look for a vehicle you want to buy. Check out the Internet and newspapers, contact car dealerships, credit unions and local banks to see what kind of deal you can get. Large scope of useful information will help you in the negotiating process. Many car buyers are eager to get the lowest possible down payment, but be very careful as the dealerships offering you low downpayment will later find ways to compensate for their own generosity. Being focused only on the down payment “savings,” you’ll spend much more money in the long run.

Also be aware of factory-to-dealer incentives. The secret is that the manufacturer refunds a certain percentage of the car’s price to the dealer. So even if the car dealer sells you a car at the invoice price, he or she will still make money from the deal. You are able to find out about a manufacturer’s incentive percentage, as this is available public information.

Also look out for rebates. When the seller offers you incentives, this often means the manufacturer wants to either get rid of slow-selling cars or reduce the inventory. Therefore, they may also offer the buyer a cash rebate and a low financing rate, or an option of one of the two.

4. Go to the car dealerships

Now when you have an understanding of what kind of rate you will be offered, you should go out to the car dealerships. Do this only when you have an idea of what kind of car you want, how much you can spend and what kind of financing you can get. Again, don’t forget: the more you know the more successful for you the negotiating process will be. Gather required information. Lenders will require you to provide your name and address, social security number, employer information (company you work for and salary). They will also require your financial information such as whether you own or rent a home, how much your payment is, how much money you own on credit cards, etc..

Remember also that car dealers are professional negotiators and they sell cars every day. They will consider you to be a beginner. The dealers will not be easy on you and of course they are not going to point out all the ways you can save money. So it’s purely your task to find all of them.

While most car salespeople are good honest people, some live by this principle: It is morally wrong to allow suckers to keep their money. So don’t forget that you are controlled all the time. But also you have the right and ability to stand up and walk out of the office at any point and the dealer will lose the sale and the money consequently. Don’t let a car dealer intimidate you. Knowing all necessary information will help you to be relaxed and comfortable as this is you who are holding all the cards.

by Joseph Brown

Lloyd's Launches Recruitment Program

noreply@blogger.com (Admin) — Sun, 28 Oct 2007 07:09:00 +0000

Lloyd's has announced the launch of its new graduate recruitment program in an expanded effort to "recruit fresh talent and ideas to the insurance industry." The program is scheduled to run for 18 months and features a web site - www.lloyds.com/graduates –to make it easier for potential job applicants.

Lloyd's Chief Executive, Richard Ward, said the program has been launched to develop Lloyd's skilled talent pool and to secure the caliber of people needed to ensure the market's continued success. "The attraction, development and retention of talent are key issues facing the insurance industry today," he noted. "Bright, creative and innovative graduates will be the lifeblood for our future success."

Lloyd's initiative joins those of the Chartered Insurance Institute (CII) and its own Lloyd's Marketing Association (LMA) in addressing the longstanding industry problem of making insurance attractive to university graduates as a first career choice rather than a fallback or stop gap position (See IJ web site Oct. 9).

Ward stressed how well known Lloyd's brand is throughout the world and the "opportunities to graduates that no-one else can provide." He described Lloyd's as being at the "cutting edge of risk taking - insuring risks ranging from celebrity body parts to offshore oil platforms to terrorism cover. We provide an environment where young minds can be developed, challenged and encouraged to think in new ways every day."

Sean McGovern, Director and General Counsel at Lloyd's, said he believes that the through this "program, managing agents will have the opportunity to be involved in candidate selection with a view to sponsoring a graduate. Our aim it to offer graduates the opportunity to spend time in a variety of businesses in the market to broaden their experience believes the program will benefit both Lloyd's and the insurance market."

He also noted the initiatives along similar lines taken by the CII, indicating that a "coordinated and unified approach to investing in the London insurance market's talent is the only way forward."

Lloyd's has developed its graduate program in close cooperation with the LMA, as well as "in consultation with HR professionals in the market." It will include rotations through both Lloyd's and the market, a comprehensive development program, and mentoring support from senior management.

In addition to the web site Lloyd's also said it will "commence a series of visits to campuses and regional careers fairs, and an extensive advertising campaign to attract potential applicants."

UK's Independent Insurance Execs Get Jail Terms for Fraud

noreply@blogger.com (Admin) — Sun, 28 Oct 2007 07:08:00 +0000

Until June 2001 Independent Insurance was the third largest P/C insurer in the U.K. Then it all fell apart. Shady loans to founder and former chief executive Michael Bright, cover-ups in accounting and failures to pay claims culminated in the U.K.'s Financial Services Authority requesting the country's serious fraud office to investigate the company's operations (See IJ web site June 19, 2001).

Six years later Bright, finance director Dennis Lomas and deputy manager Philip Condon faced their day in court. A jury found the three men guilty of consciously misrepresenting Independent's financial condition. Among other cover-ups the serious fraud office found that the insurer's financial results for 2000, which reported a £22 million (around $35 million at the time) was in fact a loss of at least £180 million (around $130 million at the time).

Bright received a seven year prison term; Lomas four years and Condon three.

An audit by PriceWaterhouseCoopers, the liquidators appointed to straighten out the accounts, initially uncovered £62 million ($87.8 million at the time) worth of insurance claims that were never entered into the company's accounting systems. Around 1000 employees lost their jobs.

Other British insurers (notably Royal & SunAlliance) took over most of the policies issued by independent in a move to protect policyholders.

Source: IJ archives and news reports

Mortgage industry facing more troubles

noreply@blogger.com (Admin) — Sat, 27 Oct 2007 05:54:00 +0000

By STEPHEN BERNARD, AP Business Writer

NEW YORK - In all phases of the mortgage industry this week, from the people who make the loans to the people who insure them, the news was bad — and most of them expect it to get worse.

Things have gotten so tough, title insurer Stewart Information Services Corp. said it could not cut costs fast enough in August and September to keep up with the plummeting market. The company has already made "significant reductions" in its work force in October. Its insurance reimburses a homeowner or a lender if there is an error in the deed transferring property.

The market turned quickly for mortgage insurer MGIC Investment Corp. as well, as the rising delinquencies forced the company to pay out more in claims in the third quarter. MGIC said it expects to lose money through 2008 because it estimates it will pay billions in claims. MGIC Investment already posted a loss of $372.5 million in the third quarter.

And Countrywide Financial Corp., the nation's largest mortgage lender, said it lost $1.2 billion over the summer, as the amount of money it set aside to cover losses from loans gone bad skyrocketed.

Angelo Mozilo, the chairman and chief executive of Countrywide, said the changes in the mortgage market over the summer were "unprecedented," and the company is eliminating nearly all but the safest loans from its product menu. It is also in the midst of cutting 12,000 jobs.

For potential mortgage borrowers, the comments paint a sobering picture of the difficulty in getting a new home loan in the coming months.

"If your credit scores are low, your access to mortgage money has all but vanished," said Dan Green, a certified mortgage planning specialist and author of TheMortgageReports.com.

Strong credit scores are the main factor driving mortgage lending today, but borrowers also need proof of employment and money in the bank to obtain a loan. Traditional prime mortgages are still readily available, but the supply of other mortgage types is severely constricted, Green said.

Nearly one in five subprime borrowers was at least two months' payments behind in July, while one in 20 alt-A borrowers fell in the same category, according First American LoanPerformance. Subprime loans are made to people with poor credit history, while alt-A loans are mostly made to people with limited documentation.

With the market in a nosedive, mortgage originators are likely to continue to play it safe for the foreseeable future as they try to avoid losing more money. That means fewer people will qualify for loans.

The tightening of underwriting standards will play a role in the steady drop in mortgage originations in 2008. The trade group Mortgage Bankers Association projects a 31 percent decline in mortgage origination volume between 2006 and 2008.

Think before buy an insurance

noreply@blogger.com (Admin) — Sat, 27 Oct 2007 04:27:00 +0000

Homeowners insurance can vary tremendously both in coverage and in price. Select a company based not on price alone, but on service quality. Each company is unique. But, there are a few ways to ensure you get the most for your insurance dollar. Before you buy: Consider homeowner's insurance before you purchase a home to save between 5 and 15 percent.

Some insurance providers discount property coverage if your home is close to a fire hydrant or in a professional rather than volunteer fire district. If the electrical, heating and plumbing systems are less than 10 years old, your coverage could be less. If you live in a brick home (for those on the East coast), you're less prone to wind damage. If you live in a wood-framed home (if you live near earthquake faults), you are less prone to quake damage. Flood and earthquake damage protection is not covered in standard homeowner's insurance and could run up to $500 per year depending on the location of your home.

Shopping around: Use the competitive, side-by-side benefits at GoApply.com to quickly and easily compare companies, coverage and fees. Other ways to comparison shop are through the yellow pages, consumer guides, your state insurance department or friend and family recommendations. Increase your deductible: Your deductible is the out of pocket expense you pay toward a loss before the insurance company begins coverage. The higher your deductible, the more you are responsible for. Most companies recommend at least a $500 deductible. If you increase your deductible to $500, you may reduce your premium up to 12 percent. Increase it to $1,000, and save up to 25 percent. Ultimately, you could increase your deductible to $5,000 and save up to 37 percent depending on which insurance company you use. This is a chance, obviously, as you will have to pay this fee out of pocket should anything occur.

Term life insurance: Group Homeowners or Renters with Auto Insurance. Some companies offer discounts fo 5 to 15 percent if you buy two or more insurance policies with them. If your auto insurance company offers home insurance, you could benefit from using the same company for both. But be sure the combined price is lower than it would be if you used separate insurance companies for each. Secure Your Home. A smoke detector, burglar alarm or dead bolt lock can usually reap discounts of at least 5 percent. If you install a high-tech sprinkler system, fire and burglar alarm that rings the police, fire or monitoring station, you may obtain a discount of up to 20 percent. Before you buy a system solely for this reason, check with your insurance company to make sure the system aligns with their discount policies. Quit smoking: Consult with your insurance company about policy discounts for non-smokers. Be loyal: Some insurance companies offer discounts to individuals who've maintained their policy with them for several years. Discounts could be as great as 5 percent for 3 to 5 year loyalty, or up to 10 percent for policyholders of six years or more.

Insurers Oppose N.Y. Reinsurance Collateral Changes

noreply@blogger.com (Admin) — Tue, 23 Oct 2007 06:34:00 +0000

The Property Casualty Insurers Association of America said that it is "strongly opposed to the recent proposal by the New York State Insurance Department that would reduce collateral requirements for that state (See IJ web site Oct. 18, 19).

"The current financial requirements help protect the solvency of U.S. primary insurers by ensuring that non-U.S. regulated reinsurers fulfill their promise to pay," stated PCI assistant vice president and counsel Mike Koziol. "The New York proposal, as outlined in their recent news release, contains a number of significant concerns. The proposal exposes U.S. ceding companies to a lower level of security than under the existing collateral requirements, it contains too many provisions that appear not to be clearly defined and it should not be adopted."

Currently, any U.S. or non-U.S. reinsurance company that is not authorized or accredited to operate in New York must post collateral equal to 100 percent of its share of policyholder claims with the state. This is the case even if the non-New York company has a top credit rating and is financially strong. This requirement reduces the amount of reinsurance a reinsurer can offer. It also imposes the cost of posting the collateral. Companies authorized in New York, even if they are financially weaker, have no such requirement.

Under the new regulation proposed by Insurance Superintendent Eric Dinallo, well-capitalized reinsurance companies with the highest credit rating (triple A) that are not authorized or accredited to do business in New York will be treated the same as authorized companies: They will no longer have to post any collateral. Companies that are not as strong will have to post collateral on a sliding scale from 10 percent to 100 percent. This would apply to both U.S. and non-U.S. reinsurers not authorized or accredited in New York.

PCI's Koziol questioned the claim that the proposal would increase capacity, indicating that there "is no proof that ending collateral requirements will increase capacity and there were no reinsurers on record saying they would reduce rates as a result."

Koziol called the New York proposals "premature" in light of the activity on this issue by the National Association of Insurance Commissioners' Reinsurance Task Force. However, he also noted that the "PCI has previously opposed NAIC efforts such as the Reinsurance Evaluation Office (REO) proposal and its regulatory framework for reinsurance. The New York proposal contains all of the same questions and concerns we had with other NAIC Reinsurance Task Force proposals."

Source : PCI – www.pciaa.net

Tips to sell a structured settlement annuity

noreply@blogger.com (Admin) — Tue, 23 Oct 2007 06:32:00 +0000

Plan ahead this process takes time. From start to completion the process can take two months. Some state laws have established minimum waiting periods for certain steps of the transaction. It will also take time to file papers at the court and to be granted a court date to get the sale of your structured settlement annuity approved.

Before you invest significant amounts of time you need to be aware that when you sell structured settlement annuities, the sale is subject the approval of the court. The state you live in will impact how long the process will take and also the costs involved. Be sure to check the structured settlement laws in your state before you begin.

You get to decide if you will sell your entire structured settlement annuity or just a portion of it. When you receive offers to sell a structured settlement payment they will probably be for the entire settlement. You may not want or need to sell all of your payments. You should only sell an amount that represents what you actually need. Keep in mind that the court will need to approve the sale as being in your best interest.

Structured settlement companies are in the businesses to make money and just as you would shop around for a new banker or broker, you should take the same approach when selling your structured settlement. Just like in any type of sales transaction, you should not believe everything you hear. Be a good consumer and carefully evaluate the offers you receive as well as the companies that make them. Choose a reputable company that is technically competent and works in an ethical manner.

Taxes are an important consideration when you sell a structured settlement annuity. If the court has approved the sale of your structured settlement, you will not have to pay taxes on the cash you received.

Remember that while selling your structured settlement will get you upfront cash, it comes with a price in that you will receive less for your settlement than the total of all your regular payments. With this in mind, you may not want to sell in order to purchase luxury items such as a new sports car or to finance an exotic vacation. An alternate reason might be to use the funds in an emergency situation, or for investment purposes like buying a home, or starting a business. The implications of selling a structured settlement annuity should be carefully considered.

Finding a Buyer of Structured Settlement Payments

noreply@blogger.com (Admin) — Tue, 23 Oct 2007 06:30:00 +0000

When looking for a structured payment buyer, it is important to remember that a buyer of structured settlement payments does it as a business. Knowing this, it is wise to shop around and compare companies and their free quotes just as you would when entering into any other type of business relationship. Working with a reputable structured settlement firm and choosing the right structured settlement buyer are critical components of an important financial transaction.

As you begin looking for a buyer of structured a settlement annuity you may consider using the Internet as a resource. Since this is a very specialized field, most structured settlement buying companies have a strong online presence. You can use this to your advantage by comparing companies and taking them up on their offers of free quotes. There is no obligation when you ask for a quote you and can learn a great deal about the structured settlement company during the process.
Annuity Brokers and Buyers of Structured Settlement Payments

An annuity payment broker works similar to a real estate broker in that his job is to bring you cash offers when you decide to sell a structured settlement payment. The broker will work with the buyer of a structured settlement in order to get you the very best offer. It is in your interest to be exposed to many structured settlement and annuity buyers in order that you can compare several offers and ultimately find the right company and get the best deal when you sell a structured settlement annuity.

Understanding the roles of the parties involved and how they get paid will help you understand their motivations and to decide in whom you can trust. A buyer of a structured settlement payment relies on brokers to bring them new customers. In return for this effort the broker receives a commission from the structured settlement buyer.

Qualifications of a Structured Settlement Buyer

The sale and purchase of structured settlement payments is relatively new and as such has not been subject to much formal regulation. There are trade associations that encourage professional standards and ethics for structured settlement buyers in this self regulating industry but it is up to you to carefully research the companies and understand their offers before selecting a buyer of structured settlement annuity.

You Decide Which Structured Settlement Buyer to Choose

Its important to remember that even though the structured settlement broker may bring you a cash offer, it is your decision whether to accept it or not. The buyer of the structured settlement wants to buy it and the broker only gets paid a commission if you sell so you need to remember to be your own advocate. If you feel pressured or uncomfortable, that is an indication that you might want to consider a different company or structured settlement annuity buyer.

Okla. AG Charges Insurance Company Owners with Fraud

noreply@blogger.com (Admin) — Tue, 23 Oct 2007 06:24:00 +0000

Felony charges were filed against two Texans accused of insurance fraud in Oklahoma, Attorney General Drew Edmondson said.

The charges, including conspiracy, racketeering and filing a false financial statement, were filed in Oklahoma County against Jimmy Warren Wolff, 61, of Arlington, Texas, and Rodney Alfred Williams, 73, of Fort Worth, the controlling owners of Oklahoma-based Top Flight Insurance.

Edmondson said Wolff and Williams are accused of transferring money from a second company they controlled, TriUnion, to make Top Flight appear to be solvent in annual and quarterly reports filed with the Oklahoma Insurance Department.

The pair allegedly bolstered Top Flight's books by issuing a check from TriUnion prior to Top Flight's deadlines for filing paperwork with insurance regulators. The next day, the money would be transferred back to TriUnion, the attorney general said.

The company likely would have been declared insolvent by the insurance department but continued to take in consumer premiums due to the false paperwork, Edmondson said. He said Williams and Wolff took in almost $4 million in premiums due to the scheme.

In addition, Williams and Wolff are accused of falsely reporting their real estate holdings to bolster their financial standing with the insurance department.

The company allegedly purchased 66 properties valued at $614,395, but the recorded value listed in Top Flight's ledger was $10.5 million.

"This company was shut down by the insurance department in 2005,'' Edmondson said. "Prior to that, consumers who relied on Top Flight for insurance coverage were unknowingly working without a net. In the case of a large-scale disaster, this company would not have had the financial holdings to cover all the assets it insured.''

Each man is charged with one felony count of conspiracy against the state, nine felony counts of filing a false financial statement and one felony count of racketeering.

Copyright 2007 Associated Press. All rights reserved.

Principles of insurance

noreply@blogger.com (Admin) — Mon, 22 Oct 2007 05:59:00 +0000

Commercially insurable risks typically share seven common characteristics.

1. A large number of homogeneous exposure units. The vast majority of insurance policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004.
The existence of a large number of homogeneous exposure units allows insurers to benefit from the so-called "law of large numbers," which in effect states that as the number of exposure units increases, the actual results are increasingly likely to become close to expected results. There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or health of actors, actresses and sports figures. Satellite Launch insurance covers events that are infrequent. Large commercial property policies may insure exceptional properties for which there are no "homogeneous" exposure units. Despite failing on this criterion, many exposures like these are generally considered to be insurable.

2. Definite Loss. The event that gives rise to the loss that is subject to insurance should, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.

3. Accidental Loss. The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.

4. Large Loss. The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.

5. Affordable Premium. If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards (See FAS 113 for example), the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance.

6. Calculable Loss. There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.

7. Limited risk of catastrophically large losses. The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurers appetite for additional policyholders. The classic example is earthquake insurance, where the ability of an underwriter to issue a new policy depends on the number and size of the policies that it has already underwritten. Wind insurance in hurricane zones, particularly along coast lines, is another example of this phenomenon.

In extreme cases, the aggregation can affect the entire industry, since the combined capital of insurers and reinsurers can be small compared to the needs of potential policyholders in areas exposed to aggregation risk. In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurer’s capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market.

Aeschbacher Joins Endurance-Asia

noreply@blogger.com (Admin) — Mon, 22 Oct 2007 05:54:00 +0000

Bermuda-based Endurance Specialty Holdings Ltd. announced that Patrick Aeschbacher will join Endurance Worldwide Reinsurance to lead the further development of the Group's reinsurance business in Asia and Australia.

Aeschbacher has 23 years of experience in the reinsurance industry, most recently at Converium AG as their Chief Underwriting Officer for Asia Pacific, located in Singapore.

William Jewett, CEO of Worldwide Reinsurance, commented called Aeschbacher "a seasoned reinsurance professional," and noted his "specialized experience working in the Asian and Australian marketplace for over a decade."

Aeschbacher joined the Zurich Insurance Company in 1988, and held a number of senior positions in reinsurance in Zurich, Tokyo and Singapore. He joined Converium Limited as Principal Officer and General Manager for their Singapore reinsurance branch in 1998 where he was responsible for all business written in Asia except Japan. In 2004, he was named Chief Underwriting Officer for Converium's Asia Pacific reinsurance operations, including Latin America and the Caribbean.

How To Pick the Right Mortgage

noreply@blogger.com (Admin) — Sun, 21 Oct 2007 04:35:00 +0000

Pick the Right Mortgage
Finding the right mortgage involves some digging. Interest rates, points, processing costs, and adjustment features all affect how well a mortgage suits your needs.

Mortgage lending is mechanical, impersonal and competitive. So hunt for the best loan -interest rate, points, processing costs and, on adjustable mortgages, the most favorable adjustment features. Don't pay much attention to who's originating the loan or where the lender is. And don't place too much value on your current bank or thrift relationship, either. Odds are your loan will be sold once or twice over its term.
The basics

There are two basic ways mortgage lenders charge you for using their money: through the interest charges you pay each month over the life of the loan, and through points. Compare mortgages by their annual percentage rates (APR), which include the cost of points and other fees.

Lenders market a wide variety of mortgages, but when you get down to it there are only two varieties:
a. Fixed-rate mortgages lock in your interest rate for the life of the loan. Your total monthly payment of principal and interest remains constant, but the portion of each payment allocated to principal grows. (See Pros and Cons of Fixed-Rate Loans.)

b. Adjustable-rate mortgages (ARMs) generally start lower than their fixed-rate cousins but their interest rates can rise -- or fall -- during the term of the loan. (See All about ARMs.)

What's best for you?

Deciding which mortgage is best requires a close look at your present circumstances, future earnings and financial goals.

Keep your needs in the forefront. Do you intend to stay put for many years? Then getting the best interest rate on a fixed-rate mortgage is probably your best bet. Paying 7.5% rather than 8% on a $100,000, 30-year fixed-rate mortgage will save you $34.55 each month.

On the other hand, say you plan to put the home up for sale in three to five years. Then points and closing costs (and the ability to pay off the mortgage without penalty) are more important than getting the absolute lowest available rate.

For most home buyers, the choices are these:

a. Will your down payment be small or large?
b. Do you want a long-term or shorter-term loan?
c. Do you want a fixed-rate or adjustable-rate mortgage?
d. Will you pay points for the lowest-rate mortgage or will you shop for a loan with few or no points and therefore a higher rate?

Your Choice

The market is flooded with different types of mortgages, but how do you know which one is right for you? The decision has to be yours, whether you take advice from an Independent Financial Advisor or do your own research.
What’s out there?

To start with, what sort of mortgage hunter are you and what are you looking for? If you are one of a group intending to take out a joint mortgage then your choices will be limited, but you will be able to find a lender and you will be able to find one that will allow a mortgage to be held in joint names by up to four people. The amount of such a mortgage will be calculated on three times the highest salary plus one times each of the other’s incomes. In today’s market you had better hope that at least one of you has got a really well paid job!
Repayment or interest only

Fundamentally there are two main types of mortgage: they are either repayment, where you pay back the interest and the capital lump sum that you borrowed each month or interest only, where you just pay back the interest and use a policy such as a life assurance policy or another investment fund product to pay off the loan at the end of the mortgage term.
Circles within circles

Within these broad principles there are a whole host of options. It is the proliferation of these options, sometimes called different things by different lenders, that gives the impression there are a confusing number of types of mortgage.

Which of these options is best for you depends on your attitude to risk and on how much spare cash you have each month as well as whether you want to aim to pay off your mortgage early or not.
Standard variable rate

If you like your life to be varied then this one is for you. The monthly repayments will change periodically roughly in line with the changes by the Bank of England in the Base Rate of borrowing. Each lender will have a different standard variable rate of interest, so shop around.
Capped

A capped mortgage is one where the interest rate on the monthly repayments cannot exceed a certain amount, so if the Base Rate climbs you will be protected from the higher end of the rate by the ceiling on the product. This is a good mortgage to choose if you are working to a budget on your monthly finances. The capped period usually is only for a few years, maybe between 1 and 5, after which it will either revert to the standard variable rate for that product or it will change to a different capped rate.

If you have been paying much under the base rate while in the capped period, in other words your repayments have been at their maximum for some time then you might find when that period ends that you face quite a hefty increase in repayments.

You also need to be aware of any tie-in penalties and how long this tie-in period lasts once the capped period has ended. Many products have these penalties which are designed to stop you transferring to another product as soon as you have finished the offer period.
Flexible

Flexible mortgages will allow you to pay off more than the required repayments each month without penalty and will also allow you to under pay if you need to and will have the facility for payment holidays. Most will also calculate interest on a daily basis. Some of these flexible mortgages are also off-set mortgages which will provide you with a bank account so the mortgage becomes like a huge overdraft that you gradually pay off over the loan period.
Fixed rate

And finally fixed rate mortgages are for those of you who like to know exactly what’s going on in your life. These will enable you to accurately budget your monthly finances as the rate won’t change for the fixed period. However, as with the capped mortgage you need to be aware of any penalty payments that might be applied once the fixed period is over.

There are other types of mortgage out there and with such a variety to choose from it will only be a matter of time before you find exactly what you are looking for.

Fla. Insurer Activates Mobile Claims Center in Pensacola

noreply@blogger.com (Admin) — Sun, 21 Oct 2007 04:31:00 +0000

Citizens Property Insurance Corp. opened a mobile claims center in Pensacola today to help policyholders with property damaged by tornadoes that ripped through the area, a Citizens official said.

"We opened the center this morning (Friday) and had 18 claims reported by 8 a.m.," said Rick Larson, director of catastrophe operations.

The center is located at Pensacola's Cordova Mall on North Ninth Avenue.

Citizens personnel and the mobile response center were sent to Pensacola after a strong line of thunderstorms struck the area Thursday. Larson said an initial damage survey showed trees uprooted and roof damage to a number of buildings.

There was no immediate estimate of the number of structures damaged. Citizens has a total of about 5,800 policies in Pensacola and Escambia County.

Larson said the mobile center will be open at least through Oct. 21.

Source: Citizens Property Insurance Corp.

Chubb Approved to Form Wholly Owned Chinese Insurer

noreply@blogger.com (Admin) — Sun, 21 Oct 2007 04:28:00 +0000

The New Jersey-based Chubb Group announced that Federal Insurance Company, a member of the Chubb Group of Insurance Companies, has received approval from the China Insurance Regulatory Commission (CIRC) to convert its Shanghai branch to a wholly owned insurance subsidiary.

The new subsidiary is to be named "Chubb Insurance (China) Company Limited," and will be headquartered in Shanghai.

"This represents an exciting opportunity for Chubb to build its business in China," noted Chubb Chairman, President and CEO John D. Finnegan. "We have been operating in China since opening our Shanghai branch in 2000. Our new structure will enable us to expand our business in this fast-growing economy."

Chubb also explained that Federal, its lead underwriting company, will "continue to maintain its representative office in Beijing. The new subsidiary is expected to apply for additional branch licenses in other cities."

Source: Chubb – www.chubb.com