Considering acts of terrorism when taking out business insurance

We all like to think we live in a world where nothing bad ever happens. Up until 9/11, there had been occasional events the government called home-grown terrorist attacks. You may remember Ted Kaczynski who achieved notoriety as the Unabomber, sending out bombs through the mail for some twenty years, and Timothy McVeigh who was responsible for the greatest loss of life through the Oklahoma City Bombing. These are rare individuals who become unhappy with the way things are and resort to extreme measures. This was a containable risk until Al-Qaeda highjacked four airplanes and crashed three of them into high-visibility targets. We might have considered this outrage a unique event but, for a variety of political reasons, America has continued military actions abroad. No matter what you might think of this form of action overseas, all informed sources confirm this action acts as a recruiting tool for groups of terrorists. For now, their retaliation has been against troops or targets based abroad. The risk of direct action on our soil, however, is something we would be foolish to ignore.

Following the 9/11 attack, President Bush pushed through the Terrorism Risk Insurance Act. This puts federal money on the line until 2014. A proper framework that supports the risk of damage and loss caused by a terrorist attacks anywhere within our borders should have been put in place by the private insurance industry by that time. Until then, the Treasury acts as a reinsurer and, if the Secretary of the Treasury certifies losses caused by terrorism, it pays 90c in the dollar of every claim approved by private insurers. And, just so you understand the value of this back-up, no commercial insurance company can refuse to insure a business against terrorist risks. It’s your right to be covered at an affordable rate. Should an insurance company refuse, you can make a formal complaint and the company will face a fine. Continue reading →

Myriad opportunities exist that can lead to cheap car insurance. People like saving money on auto insurance. To legally drive in most areas, you must be insured. Many individuals simply renew their policy year after year. This is not a good way to get cheap rates. Instead, review these rate factors that can help you get reduced premiums

Age

As drivers age, they become more experienced drivers which reduces the likelihood they will become involved in accidents. Insurance companies like these drivers. Of course, not all drivers meet this expectation. However, those that do can see progressively lower premiums each successive year.

Gender

Female drivers have proven to be safer drivers. As a result, they tend to get lower rates than their male counterparts. There is little you can do about your gender, but you can make sure you get the appropriate reductions so your rates are the lowest possible.

Location

Where you live and work can impact your rates. Working in high crime neighborhoods or high accident areas can inflate your rates. One solution is to carpool with someone and leave your car at home. You can also park your car in a safe place and take public transportation into other areas. When you are at home protect your vehicle by placing it in the garage.

Driving Habits

Your driving record greatly influences your premiums. A clean record suggests you have safe driving habits including keeping a distance between you and other cars. You know how to drive in inclement weather. And you always follow seat belt laws and obey traffic signals. The more you do of this, the better driver you will be and you can earn lower rates.

Credit History

Maintaining a good credit score can lower insurance premiums. You present yourself to be responsible and have sufficient resources not to submit claims for every dent or scratch inflicted on your vehicle. Cars get damaged all the time from being nicked in parking lots to being hit by gravel when driving. Some customers want their insurance to reimburse them for each of these instances. But it takes money to process claims which insurance companies want to avoid. Continue reading →

A judge was once asked for a definition of obscenity. His reply was that he would know it when he saw it. So, to the courts, it’s acceptable to leave a concept undefined so long as anyone would know what it means. When we come to fraud, it’s a similar problem. There are so many different ways in which someone dishonest can separate a willing victim from his or her money. It can be the most simple of lies or a complicated web of deceit that lures even the most wary of people into handing over cash. For that reason, we are left with a list of components. There must be a deception of some kind. This deception must be made dishonestly, and it must cause financial loss to the person deceived. After that, it’s down to common sense. So here’s the question for you. Let’s say you ask advice from someone who seems to be an independent professional and then act on that advice by buying a product. Later you discover the professional received a substantial part of the price as a commission and that there were other, better products you could have bought at lower prices. You have suffered a loss by relying on the advice. Had you known the professional was being paid to sell that product, you would probably not have relied on the advice.

Now let’s apply that to agents and brokers who sell insurance. You ought to realize these people are being paid a commission. How else can they make the business pay? It’s basic common sense. That probably means the brokers are not dishonest by failing to explain a big slice of the first year’s premium payments will go to them. But suppose these agents know there are better products at lower prices, but none of these insurers will pay them a commission. Is it dishonest not to tell you? They know you would not buy one of their products, so it’s a lie by remaining silent. That’s why New York stockbrokers and the brokers who sell mortgages are obliged to disclose their commissions. Continue reading →