U.S. Sanctions Trigger Lloyd’s of London’s Refusal to Insure Iranian Petroleum Imports

July 9th, 2010 by Iris | Comments Off | Filed in insurance facts, insurance news

While the oil spill on U.S. shores remains to be stopped, last week President Obama signed into law new sanctions designed to limit fuel imports into Iran, and increase the Islamic Republic’s international isolation.

On the heels of that announcement came another: the British insurance company Lloyd’s of London, known for insuring high risk properties, has stated it will no longer insure or reinsure petroleum being shipped into Iran.

In a statement earlier today, the insurer’s general counsel Sean McGovern told reporters from Reuters, “The U.S. is an important market for Lloyd’s and, in recognition of this, the market will not insure or reinsure refined petroleum going into Iran. Lloyd’s will always comply with applicable sanctions.

The United States and its European allies suspect Iran is trying to build an atomic bomb. Tehran has said its nuclear program is for the peaceful generation of electricity.

Already, Iran has been finding it difficult to engage in financial trading. Many oil companies, trading houses, and the like have ceased doing business with the country, out of fear of violating U.S. sanctions.

According to Reuters, Iran is buying about half of its July gasoline imports from Turkey, with the rest coming from Chinese sources, since most other suppliers will not sell to them.

Tags: , ,

Iowa Communities Choose to Opt Out of National Flood Insurance Program

July 8th, 2010 by Iris | Comments Off | Filed in flood insurance

Last week, Congress voted to reauthorize the National Flood Insurance Program, and on July 2nd, President Obama signed the extension into law, keeping it active until September 30th, but not everyone is taking advantage of the reinitiated program, especially in Iowa.

According to government officials, only eighteen cities and counties in Iowa have joined the NFIP since the floods that soaked their state two years ago. Why not? Because of paperwork and money.

Specifically, local officials say, the participating communities are required to adopt and enforce flood plain management ordinances in order to reduce damage from future floods, and that process either takes too much red tape, or would increase insurance costs to home- and business owners.

Unless their communities agree to participate in the national flood insurance program, residents of those communities cannot purchase federal flood insurance. This year, 113 Iowa cities and counties within flood hazard areas have chosen not to participate, down from 131 non-participating communities in 2008.

Tags: ,

Missouri Files Suit Against Federal Health Care Plan

July 7th, 2010 by Iris | Comments Off | Filed in health insurance

Lieutenant Governor Peter Kinder of Missouri filed a lawsuit today to block federally mandated health insurance in his state, claiming that Congress’s health care overhaul has overstepped governmental authority, and infringed upon state sovereignty. Kinder’s suit, filed by himself and three other Missouri residents, asserted that the federal government may not force people to purchase a product nor can it require state officials to participate in enforcing a “federal scheme.”

Missouri is not the first state to challenge the federal health care plan since it was signed into law in March.

In a written statement, Kinder, a Republican said, “Many Missourians will lose the options for health insurance they currently enjoy. Missourians have less health care coverage after the federal law was passed than they did before it was passed.”

Insurance changes sparked by the new federal health care law include the expansion of health insurance coverage, so that thirty million people currently without insurance will be covered. Parents will be able to keep dependent children on their policies to the age of 26, and Medicaid coverage will be expanded. There is a period of roughly four years before insurance is required or tax penalties will be levied.

In other lawsuits, the Justice Department has maintained that the federal health care law fits within Congress’s authority over the regulation of interstate commerce and providing for the general welfare of the American people. Further, it argued, the choice to opt out of health insurance affects everyone, insured or not.

On Wednesday, U.S. Department of Justice spokeswoman Tracy Schmaler said that it will defend the federal health care law from challenges over constitutional or other grounds.

“We are confident that this statute is constitutional and that we will prevail,” Schmaler said.

Tags: ,

Marsh Warns PolicyHolders: Notify Your Carriers of BP-related Damages NOW

July 6th, 2010 by Iris | Comments Off | Filed in business insurance

Gulf Coast businesspeople and residents facing the possibility of losses because of BP’s Deepwater Horizon oil spill in the Gulf of Mexico have been advised to submit written notice to their insurance companies as soon as possible, and no later than Thursday, July 8th, at 5:00 PM EDT.

Global insurance broker, Marsh, issued a statement via its website explaining that insurers are saying that the 80-day notice provisions in their policies will be strictly interpreted. For this reason, policyholders should consider April 20, 2010, the date of the Deepwater Horizon explosion, as the start date for calculating such a notice provision.

Marsh advised, “This week, several carriers indicated that they will enforce these time limits strictly, without any weight given to the date the insured first became aware that they faced potential exposure. Therefore, if not already in process, it is important that clients and their legal counsel analyze the potential exposure to damages arising from the Deepwater Event and review all of their current excess and primary policies in order to comply with notice provisions.”

The broker also added that some excess liability carriers are planning to add “…broadly worded, event-specific exclusions to their 2010-2011 policies to prospectively eliminate coverage for the Deepwater Event.”

This means that even if a poilicyholder files a notice in compliance with the time limit, “…it is likely that the carrier will attempt to limit its exposure prospectively via an endorsement that excludes the Deepwater Event,” according to Marsh.

Clients who opt not to notice the BP event at this time may face strictly enforced time deadlines from their insurance carriers even if all damage has not been established, or potential exposures have not been clarified.

Marsh said it is urging carriers to withdraw – or at least narrow – these exclusions, but warns that “…this is an emerging market trend that raises concerns…” with respect to 2009-2010 policies and raises questions about whether circumstances or claims should be notified now.

Tags: , ,

Health Care Overhaul May Mean Longer Lines at ER

July 2nd, 2010 by Iris | Comments Off | Filed in health insurance, insurance news

The Associated Press office in Chicago is reporting that healthcare overhaul may mean even longer waiting times in emergency rooms around the country. ERs are often the only choice for patients who don’t have access to walk-in clinics or primary care physicians, but under the new health law, more may be turning to emergent care providers. This may seem counter-intuitive – shouldn’t more people with insurance mean shorter wait times? Here’s why 32 million more people with health insurance will mean longer lines instead, as explained by AP medical Writer Carla K. Johnson:

-There’s already a shortage of front-line family physicians in some places and experts think that will get worse.

-People without insurance aren’t the ones filling up the nation’s emergency rooms. Far from it. The uninsured are no more likely to use ERs than people with private insurance, perhaps because they’re wary of huge bills.

-The biggest users of emergency rooms by far are Medicaid recipients. And the new health insurance law will increase their ranks by about 16 million. Medicaid is the state and federal program for low-income families and the disabled. And many family doctors limit the number of Medicaid patients they take because of low government reimbursements.

-ERs are already crowded and hospitals are just now finding solutions.

What do hospitals say about this likelihood? Well, Dr. Arthur L. Kellerman, a researcher with Rand Corp explains it thusly, “More people will have coverage and will be less afraid to go to the emergency department if they’re sick or hurt and have nowhere else to go…. We just don’t have other places in the system for these folks to go.”

What does this mean to you? If you are insured, start looking for a family practitioner, general practitioner or primary care physician now, before you actually NEED an appointment; most offices will squeeze in regular patients. Also, see if your insurance covers wellness care, which helps you use preventative measures to stay healthy, minimizing the likelihood of using an emergency room at all.

Tags: ,

Five Bizarre Things People Insure

July 1st, 2010 by Iris | Comments Off | Filed in insurance facts, insurance news

It’s a new month, so we’re taking a break from talking about BP and healthcare and instead offering a lighter topic. We’ve all heard of insuring homes, cars, and boats, but what really odd things do people insure? Here are five:

  1. Specific Body Parts: We’ve all heard of concert pianists insuring their hands, but last December, pop singer Adam Lambert supposedly took out a $1,000,000 policy on his crotch, because the pelvic thrusts he does so often during his concerts can apparently lead to lower back issues and penile arthritis. (We suspect it might have been less expensive to hire a different choreographer.)
  2. Abuse by Ghosts: While bed and breakfasts here in the states – in cities like Charleston and New Orleans – advertise their ghosts, the Royal Falcon Hotel insures against them. Their policy (which smacks of a publicity stunt) protects employees and guests from improper poltergeists.
  3. Hunting Trophies: According to AXA Art, those of you who are big game hunters can actually insure the stuffed lions, tigers, and bears (oh, my) you’ve been collecting, in case they’re damaged or destroyed. Presumably you can also itemize them on your homeowners policy, as well, in case of something mundane, like theft.
  4. Wedding Insurance: Okay, we understand the concept of “Bridezilla,” but rather than insuring your wedding (sorry, it doesn’t find you a new groom if he backs out; it just covers any deposits and such), maybe you should consider having a back-up plan. Or save money, and elope.
  5. Alien Abduction: Apparently about 20,000 of your co-earthlings have taken out insurance policies in case they’re ever abducted by aliens. This might be wise – after all, flying saucers probably don’t have liability insurance – but we suspect it would be smarter to skip the insurance and invest in lots of aluminum foil. Less expensive anyway.

This list was fun, and all of these policies really exist, as well as many others. You can pretty much assume that if someone thought of it, someone else insured it.

Tags: ,

West Virginia Sees Decline in Motorcycle Deaths

June 30th, 2010 by Iris | Comments Off | Filed in auto insurance, motorcycle insurance

Fatalities related to motorcycle accidents are declining in the state of West Virginia. In fact, there have been only seven so far this year.

According to Barbara Lobert, manager of the Governor’s Highway Safety Program, this is a marked improvement over last year, which had a total of 25 motorcycle-related fatalities, which, in turn, was less than half of the number – 52 – from 2008.

What’s improving the life expectancy of West Virginia bikers? Lobert suggests that more of them may be wearing helmets.

According to Bridgeport Police Chief John Walker, and Clarksburg Police Chief Marshall Goff, two of this year’s fatal accidents took place in Harrison County, where there has also been a spate of non-fatal accidents involving motor bikes.

Goff and Walker believe that most such accidents are due to increased speed, lack of attention, and a greater number of bikers on the road.

Tags: ,

How Does Alcoholism Affect Life Insurance?

June 29th, 2010 by Iris | Comments Off | Filed in insurance facts, life insurance

If you’ve ever applied for life insurance, you know that the health questionnaire asks about whether or not you drink alcohol, and if so, how often. While some of you may be concerned that admitting to the occasional beer or cocktail will change your coverage eligibility, this is not the case.

According to The Life Insurance Blog, it is only when alcohol use is excessive that it has any impact on the way life insurance policies are underwritten.

Actual alcoholism may or may not cause a life insurer to deny coverage, in much the same way as any other pre-existing condition. (Life insurers are still allowed to exclude applicants. It is only health insurance that has been reformed.) In fact, more and more insurance companies recognize that alcoholism stems, at least in part, from genetics, as do other diseases.

What aspects of alcoholism affect life insurance underwriting? According to Prudential Life Insurance, there are several significant complications that arise from excessive drinking. They are:

* Cardiac: Atrial fibrillation, cardiomyopathy, hypertension
* Nervous System: Blackouts, seizures, delirium tremens (DTs), peripheral neuropathy, tremors, brain damage, psychosis, balance and gait impairments.
* Gastrointestinal: Fatty liver, hepatitis, cirrhosis, pancreatitis, gastrointestinal bleeding due to gastritis, cancer, diarrhea.
* Bone marrow: Abnormal blood counts including anemia.
* Miscellaneous: Aspiration, pneumonia, accidents and trauma.

One important thing to note is that if an alcoholic stops drinking without relapsing, after seven to ten years he or she will have a mortality rate more in line with that of the general population.

Tags: , ,

Tropical Storm Alex Affects BPs Recapture Plans

June 28th, 2010 by Iris | Comments Off | Filed in insurance facts, insurance news

Reuters is reporting that the high waves expected to come as Tropical Storm Alex passes through the Gulf of Mexico will delay BP Plc’s plan to increase oil-capture capacity to up to 53,000 barrels a day. This is according to a company executive.

Kent Wells, senior vice president of exploration and production shared with reporters in a briefing earlier today that the storm was not expected to interrupt the drilling of a pair of relief wells intended to stop the leak by August, or interfere with current oil-capture systems. He said those operations are scheduled to continue, “…unless unfortunately a storm heads directly our way.”

The storm is slowly intensifying, and by tomorrow, according to the U.S. National Hurricane Center, will strengthen into the first hurricane of this year’s Atlantic hurricane season. The storm will likely make landfall near the Texas-Mexico border early Thursday.

Wells said that a week-long delay in hooking up a third oil-capture system could be caused by waves of up to twelve feet. “While we are on track for the end of June, it will be roughly a week after that, the 6th or 7th of July,” he said.

The amount of oil continuing to flow into the sea from under the rig’s cap and through vents on top is not certain, but U.S. science teams are estimating that it adds up to about 60,000 barrels a day. The current capture system involves a drill ship and a service rig that can handle a maximum of 28,000 barrels of oil every day. It will take an additional rig to increase capacity to 53,000 barrels a day, according to BP.

Wells said that a plan to increase capacity to 80,000 barrels a day by the middle of July is still on track. Yesterday, BP said, the existing capture systems either collected or burnded off 24,450 barrels of oil.

Tags: , ,

Flagstaff Fire Damage Claims Reach $5 million

June 25th, 2010 by Iris | Comments Off | Filed in fire insurance, insurance news

Arizona residents are feeling the heat from more than the sun this summer, especially near Flagstaff.

The Schultz fire, burning near the city that was originally a railroad town, has already incurred up to $5 million in fire insurance and property damage claims, according to the latest information from the National Interagency Coordination Center’s Incident Management Situation report. So far, the fire, which is 40 percent contained, has consumed 14,800 acres.

Fire officials in the area said local residents were being allowed to return to their homes.

The fire, which was sparked by an abandoned campfire last Saturday, has been characterized as having “extreme fire behavior with rapid rates of spread” by the NICC.

Fire officials said people were being allowed to return to their homes.

NICC said the fire, which was started by an abandoned campfire on June 19, was characterized by “extreme fire behavior with rapid rates of spread.”

Tags: ,

« Older Entries
Newer Entries »