Commercial Vehicle Insurance Requirements - How it Works

Any vehicle needs to have auto insurance because its required by law and is necessary to protect your financial assets, however there are different types of auto insurance. Commercial vehicle insurance is used for vehicles used for business purposes.
If you have a business with employees that use cars, trucks or any other type of vehicle that the business needs you need to insure them with a commercial insurance policy. This type of insurance is more costly than regular insurance but it is really necessary to protect your business assets and keep your vehicle on the road when an accident happens.
But you can not just insure any vehicle as commercial, it must fit certain requirements to be considered a commercial or business vehicle. When insuring your vehicle you will need to provide many important details about the drivers and the vehicles.
Who are the drivers? What is their age? What is their driving record? Do they have an active license? What type of vehicles are you using?
What is their make year? do they have any past claims? what is the likely of it being stolen? does it have security devices? How many mileages a year do you drive? what is the destination of the vehicle? does it carry cargo? what type of material carries?
Those are some important questions that your insurance agent will ask you so he can provide you a quote. There are many different factors that determine the rates that you are going to pay, it depends on the risk factor, how likely is your vehicle of being stolen and getting in to an accident.
The more miles it travels the greater the risk of an accident or natural disaster to happen, there are some types of trucks that are more frequently stone, those cost more to insure. If you or any of your drivers are under 25 years old your rates will be higher than if the driver is an older person.
And lastly, you need to compare vehicle insurance quotes from different companies before making a decision. Its easy to compare quotes online, you just have to provide your vehicle details.

Are You Ready For a Flood?

Floods come in all sizes, from the epic Noah and his ark size flood to the smaller, though damaging, flood from a broken dishwasher seal or hose. The time to prepare is before the water starts to flow.
For weather related floods, contact your county planning department to determine if your home is in a flood prone area. Find out what the local warning signals are. Know the evacuation routes and where emergency shelters are located. Practice flood evacuation with your family and have an out-of-state contact in case you get separated. Make sure everyone knows the contact's name, address, and phone number. If you have a second floor, put valuables upstairs to avoid water damage. Keep the gas tank full in your vehicle.
Prepare by stocking your home with emergency supplies. These should include a battery powered radio, multiple flashlights, and extra batteries. Have non-perishable food and a manual can opener as well as enough drinking water for 3 to 5 days, about 5 gallons per person. If you have pets, prepare for them also.
Have a first-aid kit which includes any prescription medications taken regularly. Put essential documents like medical records, insurance cards, and ID cards in water-proof containers. Compile all personal hygiene supplies along with baby wipes or disposable cleaning cloths to use if bathing is unavailable.
If there is a flood watch or warning stay tuned to local radio or television stations for updates. Know where the main power switch is for gas and utilities and how to turn them off if evacuation is necessary or if flooding occurs.
If you must evacuate, remember these tips from FEMA: do not walk through moving water. It only takes 6 inches of moving water to make you fall. Use a stick to check the firmness of the ground in front of you. Do not drive through standing water as it will reach the bottom of your vehicle causing loss of control or possible stalling. A foot of water can float many vehicles and most SUVs can be carried away by 2 feet of rushing water. Even if your car doesn't stall, water may cover the tailpipe, filling the interior with carbon monoxide, an odorless and deadly gas.
If your home is in a flood prone area, preparing to return home again is just as important as preparing for the flood. Most homeowner's insurance won't cover flood damage. Special insurance has been made available by congress called the National Flood Insurance Program and is sold through insurance agents. However, you should choose a trustworthy company that specializes in flood insurance and can properly determine what type of flood zone you are in and write the appropriate policy so that if a claim occurs, you will be paid fairly and without delay.

Claims Process is Simplified!

Accidents can occur anywhere and at anytime. There are various causes for it. Road accidents may result due to rash driving or reckless driving. You may also end up meeting with an accident at workplace due to the negligence of the employer. Giving insufficient training to workers, not providing a safe and secure working environment can all lead to accidents.
In case, you or anyone known to you has met with an accident at the workplace, you can make a claim. Before making a claim, you must seek all the required information on making a claim. This will help you proceed with the case successfully. An accident claims company can provide the necessary guidance on how to make a claim.
Basically, these companies specialise in providing advice to those who have suffered an injury due to the negligence of someone. You can benefit from their expert advice. They will simplify the task of making a claim for you and help you get suitable compensation. Making a claim is not an easy task. You must have sufficient proof before you make a claim. This will help you recover the losses suffered within no time.
You can even approach an accident claims lawyer to make a claim. If you follow all the steps, you can successfully make a claim. You can also seek more information on making a claim by looking online. You need not run around to make a claim. From within the comfort of your house, you can seek all the required information about claims procedure.
Accident claims companies can provide the necessary guidance on how to make a claim. Solicitors can also guide you get suitable compensation. A team of well qualified advisers will provide the necessary guidance on making a claim. This will fasten up the entire procedure.
If you have been involved in an accident which has resulted in a whiplash injury, you must be extra careful. You can also discuss your case with whiplash claims solicitors. They can guide you make a suitable claim. You must understand that help is at hand. It is not difficult to recover the losses suffered if you proceed the right way.
You can get over any type of situation. If you know what needs to be done and how you must proceed with the case, you must not hesitate to seek help from solicitors. They can help you get the required guidance. Without wasting any further time, you must follow the required procedure.

Benefits of Title Insurance

Title insurance is an insurance policy that provides an indemnity against loss or damage for many covered title risks relating to real property, including coverage in the event someone else claims an ownership interest in the insured property or in the event that the priority and enforceability of a lender's mortgage on title is challenged.
Title insurance provides coverage against title defects in existence at the time of closing, but which are not known to the insured at that time. It also provides coverage against losses resulting from many forms of title fraud.
Title insurance is widely used due to its comprehensive coverage and to save costs and time on real estate closings. Those who can benefit from title insurance are home purchasers, existing home owners, residential and commercial lenders, and commercial property buyers. Title insurance is available for both residential and commercial properties and must meet the underwriting criteria of the title insurance company. Policies can be obtained for just the lender, or both the purchaser and the lender.
Title Insurance is available all across Canada, depending on the company you are dealing with. Title insurance policies are obtained by the lawyer/notary acting for the home owner. Generally, in cases where the lender has this as part of the condition for mortgage financing, the lawyer/notary will have this as part of the instructions received from the lender. However, a client certainly has the option of purchasing Title Insurance without the condition from the lender. The lawyer/notary completes the due diligence searches required to obtain a policy and contacts the title insurer to arrange for the policy.
Title insurance is available for a one time premium. The premium is based upon the purchase price (for an owner policy) and the registered mortgage amount (for a lender policy). For owners, the policy coverage lasts for as long as the owner retains an ownership interest in the property and for lenders for as long as the insured mortgage is outstanding. In certain circumstances, owner policy coverage continues to apply even after the original insured no longer has an interest, including situations where there is a transfer of title in favou-r of spouse or child who receives title for nominal consideration. For lender policies coverage continues in favour of assignees of the insured mortgage.
Title insurance provides coverage for title risks existing as of the policy date, but are unknown to the insured at that time. Residential policies have some post policy date coverage such as for post policy forgery of an instrument, whereby someone claims to have an ownership interest in the property. The policy date is the registration date of the deed (owner policy) and the registration date of the mortgage (lender policy.) The following is a list of items that title insurance can cover . For Homeowners
a. Liens or encumbrances on title
b. Tax arrears
c. Work orders
d. Other parties owning an interest in a title
e. Many forms of title fraud
f. Encroachments onto an adjoining property, other than fences and boundary walls
g. Lack of a legal right of pedestrian and vehicular access to and from the Land
h. Violations of municipal zoning byâ€Âlaws
i. Un-marketability of the title to the property
j. Setback violations
k. Legal fees associated with a covered title risk as per the duty to defend contained within the policy
l. Types of residential properties that may be insured include: condominiums,
cooperatives, cottages, leased land and vacant land
2. For Lenders
a. The invalidity or un-enforceability of the insured mortgage upon the title
b. The priority of any lien or encumbrance over the insured mortgage
c. Unmarketability of the title
d. Lack of a legal right of pedestrian and vehicular access to and from the Land
e. Legal fees associated with a covered title risk as per the duty to defend contained
within the policy
Title insurance provides protection against loss or damage incurred by owners and lenders in many title fraud situations. Title fraud is something that mortgage Experts should also be aware of. Title fraud involves illegally using a property's title to obtain mortgage funds. The fraud can be committed through a number of methods including a fraudulent transfer of ownership with forged documents, or an impersonation of the owner to obtain financing.
For residential policies, homeowners are protected for losses arising from fraud, forgery, duress, incapacity or impersonation, and lenders are protected against losses arising from forgery after the date of policy of any assignment, release, discharge (partial or full), postponement or modification of the insured mortgage.
Additionally, the coverage provision in the owner policy with respect to someone else owning an interest in title may apply in circumstance where an innocent purchaser purchases a property that was sold fraudulently. For lenders, the provision with respect to the invalidity of the mortgage upon title may also apply. As a mortgage Expert it is your responsibility to ensure your client is aware of Title Insurance and what it can provide to protect them even if the lender does not require it.
Gurmit is an author, writer, insurance and mortgage expert. He frequently writes on various topics of interest to his readers. Gurmit Singh is a licensed mortgage expert with Dominion Lending Centres Mortgage Villa.

How to Become an Insurance Agent

Are you interested in working for the insurance world? Well, here are few tips you may want to consider if you are interested in becoming an insurance agent.
The first thing you want to do is get to know the field. Hopefully you are already interested in the types of things that insurance agents deal with such as finances and business. There are a lot of different fields within the field of insurance so figure out what area of the insurance world you would like to be a part of. Life, health, property and liability are just a few of the area that insurance deals with.
Next, you need to go to school. Insurance agents are intelligent people who have received at least a bachelor's degree from a four year university. Insurance companies really love to hire people who have degrees in things relevant to the field such as business, finances, accounting and economics. If you know you want to be an insurance agent, and then get a degree in one of those fields.
While you are in school, you will certainly be taught a lot about the computers and the software used. You will need to know a lot about recent software developments and all of the new technology that insurance agencies use in order to be more proficient. Know this software and you will certainly have a better chance of getting a job.
It is also important to be confident in your interview. Know what the company offers and be read to tell them why you want to work for them.

The Basics of Life Insurance

What Is Life Insurance?
Life Insurance offers a way to replace the loss of income that occurs when someone dies (usually the person who produces the majority of income in a family situation). It is a contract between you as the insured person and the company or "carrier" that is providing the insurance. If you die while the contract is in force, the insurance company pays a specified sum of money free of income tax — "cash benefits" — to the person or persons you name as beneficiaries.

A good life insurance program does more than just replace the loss of income that occurs if you die. It should also provide money to cover the new costs that arise after your death — funeral expenses, taxes, probate costs, the need for housekeepers and child care, and so on. And these cash benefits should provide for your family's future needs as well, including college education for your children and part or all of your spouse's retirement needs. In almost all cases, your beneficiary can use the cash benefits in the way he or she sees fit, without restriction.

Some types of life insurance — permanent life insurance policies — have a cash value that you can obtain by cashing out the policy or by borrowing against it. Though it can seem attractive, most financial experts agree that this feature should be seen as a secondary purpose of life insurance. Another type of insurance is term life insurance policies are available as well. To learn more click the respected link.

Do You Really Need Life Insurance?
If there is someone who would suffer economic hardship if you died, then the answer is yes... you need life insurance! Families with young children have a clear need for life insurance. If both spouses work, the loss of one income will cause the family immediate economic hardship and make it harder for them to realize future goals, such as paying for the children education. But even if one spouse works "inside the home" and doesn't bring in a formal income, his or her death will require the surviving spouse to hire child care, housekeepers and other professionals to help run the household - and that can be a significant new expense.

If you are married without children or single, then you may need life insurance to protect your partner or surviving family members against the costs associated with your death. Funeral expenses, probate and administrative fees, outstanding debts, special obligations to charities, and federal and state taxes are costs that all of us must consider. And, they can add up quickly. Unless you already have sufficient financial resources, your survivors will probably need life insurance to cover these expenses.

What Happens To Your Family If You Don't Have Enough Coverage?
Under any circumstances, the loss of a loved one is a traumatic experience. But, if your family is also left without sufficient money to meet basic living needs or prepare for future goals, they will have to cope with a financial crisis at the same time. Depending upon their current financial resources and ability to "get back on their feet" emotionally and financially, your family might be forced to move to a less desirable home or community, abandon education and career plans, reorder family priorities (such as the amount of time spent with the children) and, in general, cut back on the quality of life you have worked hard to achieve.

Your family might even be forced to go into debt simply to pay the expenses, like funeral costs, taxes, and medical bills, that result from your death. A moment's reflection will tell you that the lack of sufficient life insurance coverage when a loved one dies can have devastating consequences for a family...consequences that can last for years.

The Advantage and Disadvantage of Universal Life Insurance

As we mentioned in previous articles, UL plans are unbundled, the various components of the plan such as insurance charges and earned interest can each be isolated and quantified. Consequently, they are much easier to understand and explain than traditional bundle permanent life insurance products. In this article, we will discuss the tax advantage of the universal life policy.

There are many factors that universal life policyholder must consider when go into deciding which investment options to choose within a UL plan. Guaranteed interest accounts, for example, are less risky and indexed accounts which have a larger potential rate of return.

1. Advantage

a) Most UL plans allow the policyholder to allocate deposits in a way that matches their risk philosophy. Such a plan may change its investment allocation as the policyholder gets older, negating the need for the policyholder to monitor the UL investment mix to ensure that it is consistent with the policyholder's investment philosophy as that changes.

b) Tax-advantaged status

Investments that invest in the insurance company's general funds, have advantage of prefer tax status, no matter which outside index is linked to particle index or mutual fund account, if the actual funds is invested in the general fund of the insurance company, they will not be subject to annual taxation. If the client would like to invest outside of the company's general fund, many insurers have segregated funds attached to their UL contracts and of course, any investment return of these funds is taxable annually.

c) Depending on the type of fund, the income may benefit from tax preferred status if the growth in the fund can be attributed to capital gains or dividends.

d) The used as a carrier fund or shuttle account to automatically receive proceeds from the sheltered accounts should the plan become non-exempt and the funds must be refunded.

e) Non-sheltered investment accounts allow a policy to become paid-up early, often as quickly as with one deposit.

f) If the UL plan can be registered, a non-sheltered account becomes a sheltered account as, once registered, it forms part of the policyholder's 401k or RRSP plans.

g) Investment returns accumulated in the universal life policy is tax free because they form part of life insurance, if payable to beneficiary upon the death of life insured.

2. Disadvantage

a) Fund invest outside of the company's general fund, many insurers have segregated funds attached to their UL contracts and invest outside of the company's general fund. any investment return of these funds is taxable annually.

b) Limited choice of investments.

c) Investment return of funds withdrawn from universal life insurance policy are taxable.

The Need For Insurance Planning

"Insurance is not for the person who passes away, it for those who survive," goes a popular saying that explains the importance of Insurance Planning.

It is extremely important that every person, especially the breadwinner, covers the risks to his life, so that his family's quality of life does not undergo any drastic change in case of an unfortunate eventuality.

It is extremely important that every person, especially the breadwinner, covers the risks to his life, so that his family's quality of life does not undergo any drastic change in case of an unfortunate eventuality.

Insurance Planning is concerned with ensuring adequate coverage against insurable risks. Calculating the right level of risk cover is a specialised activity, requiring considerable expertise. Proper Insurance Planning can help you look at the possibility of getting a wider coverage for the same amount of premium or the same level of coverage for the same amount amount of premium or the same level of coverage for a reduced premium. Hence, the need for proper insurance planning.

Insurance, simply put, is the cover for the risks that we run during our lives. Insurance enables us to live our lives to the fullest, without worrying about the financial impact of events that could hamper it. In other words, insurance protects us from the contingencies that could affect us.

So what are the risks that we run? To name a few - the risk on our lives that is, the worries of replacement of the incomes that we contribute to the running of the household), the risks of medical contingencies (since they have the capability of depleting our wealth considerably) and risks to assets (since the replacement of these can have tremendous financial implications). If we can imagine a situation where our goals are disturbed by acts beyond our control, we can realise the relevance of insurance in our lives.

Insurance Planning takes into account the risks that surround you and then provides an adequate coverage against those risks. There is no risk not worth insuring yourself against, and insurance should first and foremost be looked as a measure to guard against risks - the risk of your dreams going awry due to events beyond

Definition of Insurance

1. the act, system, or business of insuring property, life, one's person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a payment proportionate to the risk involved.

2. coverage by contract in which one party agrees to indemnify or reimburse another for loss that occurs under the terms of the contract.

3. the contract itself, set forth in a written or printed agreement or policy.

4. the amount for which anything is insured.

5. an insurance premium.

6. any means of guaranteeing against loss or harm

Insurance or Assurance, device for indemnifying or guaranteeing an individual against loss.

Reimbursement is made from a fund to which many individuals exposed to the same risk have contributed certain specified amounts, called premiums.

Payment for an individual loss, divided among many, does not fall heavily upon the actual loser. The essence of the contract of insurance, called a policy, is mutuality.

The major operations of an insurance company are underwriting, the determination of which risks the insurer can take on; and rate making, the decisions regarding necessary prices for such risks.

The underwriter is responsible for guarding against adverse selection, wherein there is excessive coverage of high risk candidates in proportion to the coverage of low risk candidates. In preventing adverse selection, the underwriter must consider physical, psychological, and moral hazards in relation to applicants.

Physical hazards include those dangers which surround the individual or property, jeopardizing the well-being of the insured.

The amount of the premium is determined by the operation of the law of averages as calculated by actuaries. By investing premium payments in a wide range of revenue-producing projects, insurance companies have become major suppliers of capital, and they rank among the nation's largest institutional investors.

Types of Insurance

An introduction to the most common types of insurance, including a step-by-step approach to buying insurance and an explanation of the different types of policies.

Insurance. We hate it. People have even compared it to the protection racket–you give the company your money and it (hopefully) takes care of you when you need it.

Basically, the purpose of all insurance is to protect yourself or your family against the financial impact of a tragedy. Insurance is not to help you budget moderate-sized expenses, but to protect you against the truly catastrophic.

There are two ways to buy insurance. One way is to go to an agent to whom you explain your situation and trust him/her to suggest the insurance that is right for you. The other is do it on your own. You research the various types of policies available, decide what you need, and then comparison shop among the various companies.

The advantage of going to an agent is that an honest and competent one can review your situation and make suggestions. The advantage of going on your own is that you usually pay less for the same amount of insurance

STEPS FOR BUYING INSURANCE

Use these three steps when buying insurance:

Step One: Do I need this type of insurance at all? Figure out what the type of insurance you are considering covers and decide whether you need it.

Step Two: How much of this type of insurance do I need? Policies vary in how much they cover. Some cover specific dollar amounts. Others cover percent of loss. Some have a deductible. Others exclude certain types of damage. Look at these differences among policies and decide which one is for you.

Step Three: Where will I buy it? If you are working on your own, the web has a host of services to help you comparison shop among companies. Type in "insurance" on most search engines and you will come up with a number of sites. If you are working with an agent, you may be working with a captive agent which means (s)he can only sell you policies form one company or an independent agent which represents several.

When selecting a company, consider also whether the company is both able and willing to pay on claims should you make one.. AM Best and other companies rate the financial solvency of insurance companies. The web comparison shopping services usually include and explain the ratings. You can also ask the company itself or your agent.

Consider also the company's record for trying to refuse to pay claims. Your state insurance commission may have a record of complaints.

When buying any insurance, you will most likely save money if you pay annually or semi-annually. Sometimes buying several types of insurance from the same company will save you money. Often taking steps to make claims more unlikely, such as installing deadbolt locks or taking a safe driving course will lower your premiums.

When shopping for insurance, also look into group policies offered by alumni associations, professional associations, or religious bodies. Usually you can forget about specialized insurance advertised on television with paid endorsers. They usually cover very little.

HEALTH INSURANCE

Don't go without this. Most people have it at work, but if you don't you will really save big by going for a group policy. When comparing policies, consider deductibles and what is or isn't covered. When given a choice, choose one that covers the huge, debilitating conditions over one that is good about routine immunization, but that balks at the larger, more expensive claims.

Health insurance comes in three types, though many policies mix and match traits of the three.

Fee for service, the most expensive, allows you to go to almost any provider and covers almost anything that is medically necessary. You don't have a primary care physician who has to approve visits to specialists.

Preferred provider options (PPO's) allow you to self-refer to any provider in the PPO's list and generally cover a wide variety of services recommenced by those providers. Some PPO's cover other providers, but with a larger co-payment.

Health maintenance organizations (HMO's) are the least costly, but the most restrictive. They assign you (or let you select) a primary care physician. That physician acts as a gatekeeper in that (s)he decides what is medically necessary and when you may see a specialist. Often the HMO itself has to permit certain treatment and can rule against your doctor if it thinks the treatment is too costly.

LIFE INSURANCE

For most people, the purpose of life insurance should be to replace the financial contribution made by a family member.

Life insurance can be pure insurance, which pays only on the death of the insured, or cash value insurance, which also has a savings vehicle. Most people who need life insurance are better off with pure insurance and saving for retirement through other vehicles.

Proceeds from life insurance cover three types of expenses: replacement of the policyholder's income or work, estate taxes, and burial costs. When you consider the amount of insurance to buy, consider the following:

1. Most of the life insurance should be on a family member whose salary is important to the family budget.

2. Consider a relatively small life insurance policy on a stay-at-home parent to cover child care and other expenses.

3. Don't buy life insurance on children. Instead, buy life insurance on other family members for the benefit of children.

4. Consider reducing the amount of life insurance you have as you build more financial assets

.

5. Pass on credit life insurance and mortgage life insurance if you can. These plans are restrictive and expensive. Buy more general life insurance instead if you feel a need.

6. Pass on life insurance altogether if you are single and don't have anyone depending on you. At most, get a small policy to spare your family burial expenses.

You should buy about 12 times the amount of money you would need annually to replace what the family member is contributing. For example, if you would need $40,000 a year to replace the death of an employed member, you would need a $480,000 (rounded to $500,000) policy.

AUTO INSURANCE

In most states you are required to have auto insurance and you don't want to be without it.

Basically, you buy auto insurance for two purposes: to insure against liability you have to others and to insure against damage that others do to you or your car.

You need to have liability insurance. How much you need depends on how much you have in assets.

Whether you need insurance to protect your own car depends on your car and how detesting it would be to replace it.

If your car is expensive and if buying another one would wipe you out financially, consider buying comprehensive and collision. If you have an older car and wouldn't get much from the insurance company if it were totaled, don't bother. Instead, put the money you would have paid for comprehensive and collision toward saving for your next car.

HOMEOWNERS' INSURANCE

The purpose of homeowners' insurance is to protect you against damage to your home and property from natural disasters.

Insurance companies offer different ratings of insurance and assign these ratings with codes starting with the letters "HO". While these ratings are fairly standard, they do vary a little with companies, so check with the company to see what policies cover.

When comparing policies, consider differences among deductible, coverage of property other than the house (sheds, garages, etc.), and percent of loss covered. Consider also whether the policy covers resale cost or rebuilding cost. Rebuilding usually provides better coverage, but is more expensive.

Basic homeowner's insurance does not cover the contents, though you can often add it for an additional fee or buy it separately. When buying contents insurance, consider whether it covers replacement value or fair market value. Replacement value is a better buy because it pays to buy a new piece of furniture or appliance, not what your old one is worth.

Consider also buying liability insurance which covers you if someone sustains an injury or other loss on your property.

Renters and condominium owners need only contents and possibly liability insurance. Many companies have policies tailored to these purposes.

APPLIANCE PROTECTION

Don't buy any extended warranties or protection plans when you buy small or major appliances. These plans are pure profit to the appliance stores. That's why the salespeople, push them so hard, especially if they are on commission. They usually cover only periods when very little is likely to go wrong and have numerous exclusions.

Insurance is a complex subject. Do your own research or work with your agent. Hopefully this introduction will help you do that more effectively.

History of Insurance

The earliest authenticated insurance contract (i.e. That which displays the characteristics of insurance in the sense of a transfer of risk of loss due to a fortuitous uncertain event in lieu of payment of consideration / premium), is a marine insurance contract on a ship “The Santa Clara” dated 1347 in Genoa. The policy is in the Italian language and appears in the form a maritime loan to avoid the canon (church) prohibition against usury.

The earliest insurance contracts did not appear in the form of a modern insurance contract, but rather was drafted in the form of either a fictional sale or loan, until the insurance contract proper was recognized and accepted.

The earliest insurers were merchants underwriting risks for fellow merchants, on a part time basis.

Until the 1800-1900’s premiums were not determined by statistics kept etc. as in the modern sense, but was often arrived at as a result of haggling.

The contract of insurance was not created as a result of judicial or legislative innovation, but by the merchants themselves as a result of commercial expediency and need (Necessity being the mother of invention).

Early legislation was passed to counteract fraud or malpractices.

It is evident from the implementation of the earliest legislative measures enacted that there was a distinct divergence between the legal position and what occurred in practice.

Very few reported cases exist, or legal principles were established by the judiciary on the Continent, until Lord Mansfield C.J. took office in the Highest Court in England. During his tenure in office a large number of cases and principles were established by the eminent judge , many of which today exist unaltered( examples of which would be that insurances contracts are contracts of good faith , the duty of disclosure , the effect of misrepresentation and non-disclosure on the insurance contract , the effect of fraud on the insurance contract , warranties , etc , to name a few ).

Due to the fact that insurers were in fact fellow merchants who underwrote risks on a part time basis, with no accurate data or statistics or experience to determine premiums, such “insurers” were clearly in an unequal or weaker bargaining position than the insured’s at the time. For this reason a large number of decisions handed down, and principles enunciated were to a large extent for the protection of the insurer.

However despite the establishment of corporate insurers and the advancements made in the determination of risk, statistics, data sharing and collection, experience, and expertise in underwriting risks, many of the early principles have not been adapted to suit modern times or take into account insurers greater bargaining power. This is particularly evident in the instance of the duty of disclosure where Lord Mansfield CJ in the seminal case of Carter V Boehm explained the duty of disclosure on the part of the Insured as being a duty to disclose facts which were within the own peculiar knowledge of the Insured, and which could not have been reasonably discovered by the insurer by reasonable inquiry or facts which were common knowledge to both the parties to the insurance contract.

Those policy wordings have to a large extent, remained unaltered and follow the example of the Lloyds policy wordings which had been created more than 200 years ago. This is particularly evident in the field of marine insurance. Personal lines insurance policy wordings however have been greatly improved and simplified in recent times.

Despite insurance being a “contract”, the general principles in contract law are not applied, or followed in the insurance context. This is particularly evident when one has regard to the principles relating to misrepresentation, non-disclosure, breach of contract, and the remedies available to the parties. The clearest example of this would be that the remedies available to a party in the law of contract would extend to damages, whereas in the case of the insurance contract the parties would not have the remedy of damages available to them.

Very often one finds that sight is lost of the above when dealing with the insurance contract, and more often than not, a large number of parties who are exposed / involved in dealings / interpreting the insurance contract do not take account of the remarkable background of this contract.

Insurance Agents vs. Insurance Brokers

Developing a long term relationship with an insurance professional is a key step in the development of a business insurance plan. Listed below is and explanation of the differences between insurance agents and insurance brokers.

Insurance Agents

Insurance agents are insurance professionals that serve as an intermediary between the insurance company and the insured. As a broad statement of law, an agent’s liability to their customers is administrative. That is, agents are only responsible for the timely and accurate processing of forms, premiums, and paperwork. Agents have no duty to conduct a thorough examination of your business or to make sure you have appropriate coverage. Rather, it is your obligation to make sure you have purchased needed coverage.

Insurance agents can be either:

• Captive – A captive agent is an agent who works for only one company and is a “captive” of that company. A captive agent will sell policies only for that insurer.
• Independent – An independent agent is one who works as an agent for a variety of different insurers. An independent can produce policies from several insurers and offer some comparisons of different insurance policies.

Insurance Brokers

Insurance brokers can be best described as a kind of super-independent agent. Brokers can offer a whole host of insurance products for you to consider. Brokers are required to have a broker’s license which typically means the broker will have more education or experience than an agent.

Brokers also have a higher duty, in most states, to their clients. Brokers have the duty to analyze a business and secure correct and adequate coverage for the business. This is a higher duty than the pure administrative duty of the agent. However, this expertise comes at a price. Brokers typically charge an administrative fee or premium payments are higher when purchased through a broker.

A Health Insurance Dilemma

In January 2004, in a Knoxville hospital, Shannon van Tol gave birth to Tennessee's first quintuplets: Meghan, Willem, Isabella, Ashley, and Sean. Amid the cigars, balloons, and donated diapers, Guille Cruze--CEO of the White Stone Group, the software company where the quints' father, Willem, worked--was both elated and worried.

Willem van Tol had worked as a programmer at White Stone for more than three years and, like many of the firm's 70 full-timers, had enrolled his family in the company's health care plan. The year leading up to the quintuplets' arrival had included a great deal of medical care, including fertility treatments, three ultrasounds a week, eight weeks of bed rest in the hospital, and extended stays for the newborn babies.

All told, the medical bills added up to more than $2 million. Cruze knew that his insurer, Blue Cross Blue Shield, would pass some of the costs back to him. But when he received his renewal notice a few months later, he was stunned. His annual premium had shot up more than 30%, from $290,000 to $380,000. For a company with $8 million in revenue, that extra $90,000 was going to hurt. "Willem said he was sorry," says Cruze, who tried to reassure his employee. "I told him that it was okay, that we would live and die as a team."

Privately, Cruze wondered what to do. When he hired his first few employees in 1997, he covered 100% of their health care expenses. Every year since, insurance premiums had gone up, forcing him to scale back. By 2004, he covered 95% of expenses for single employees and 55% for families. With this latest increase looming, Cruze was fed up. What if premiums jumped another

30% next year? In a moment of frustration, he considered doing away with health benefits altogether, but he soon realized that such a drastic step would destroy the close-knit culture he had spent years cultivating.

Cruze called dozens of insurance carriers for quotes, and they all told him that a $400,000 annual health insurance bill was the norm for a company White Stone's size. The situation seemed hopeless. Then he read about an interesting alternative: health savings accounts. HSAs let individuals save money for health care expenses using pretax dollars. The accounts seemed like a good deal for employees. They could roll over any money remaining at the end of the year and take the accounts with them if they should leave White Stone. They could also withdraw funds for nonmedical expenses, though they'd have to pay income tax and a 10% penalty. After age 65, they could withdraw anything remaining, paying only income tax.

There was one big drawback: HSAs are used in conjunction with qualified health plans with low premiums and high deductibles--between $1,000 and $5,100 for individuals and between $2,000 and $10,200 for families. (Unlike flexible spending accounts, HSAs limit employees to one health plan.) Cruze could save a bundle by taking advantage of the low premiums, but he worried that his employees might resent the high deductibles, or forgo necessary medical treatments to avoid

paying them. The only way to get around that problem, he figured, would be to cover the deductible himself. After doing some calculations, he figured out he'd still wind up paying about $400,000 a year.

Cruze was torn. On the one hand, he liked the idea of HSAs. He'd much rather deposit money into his employees' accounts than continue filling an insurance company's coffers. But HSAs were a new concept, and he worried that his employees would be confused and even intimidated by the complex model. In many ways, it would be easier to stick with a traditional plan and either absorb the entire increase or ask employees to pony up a bigger percentage of the premium payments. By November 2004, as the renewal date for the company's insurance policy loomed large, employees began speculating about the fate of their health benefits. Cruze had to make a decision fast.

The Decision

One Monday last November, at White Stone's monthly town hall meeting, Cruze stepped up to the podium and proclaimed, "It's your money!" The slogan was part of a campaign designed to teach employees about their new HSAs, which would be administered by Wells Fargo. As COO Jeff Peters and HR director Leslie Evans handed out pamphlets and debit cards, Cruze made a PowerPoint presentation to explain how the system would work.

Each month, he explained, an employee with a family plan would have $379 deducted from paychecks for the same Blue Cross Blue Shield plan he or she had always used. White Stone would cover the entire deductible, $417 a month, deposited into the employee's HSA, and kick in $58 toward the premium, for a total monthly contribution of $475. (If Cruze had simply renewed White Stone's traditional policy, the company's contribution would have been $487 a month, and the employee would have paid $383 a month, on top of a $1,000 deductible.) Under the new plan, individual members would follow the same drill, but make premium payments of only $52 a month.

Cruze pointed out that employees would no longer be required to make copayments on doctor's visits and prescriptions because the entire bill would be paid for with the money deposited in their HSAs by White Stone. He also emphasized that HSAs would help them become educated consumers. "I saw it as a healthy education for them," he says. "They needed to learn that all-you-can-eat health care is not an entitlement and start asking doctors hard questions like, 'Do I really need this test?'"

At first, employees seemed dubious. "People were scared because they didn't understand," Cruze says. Evans, the HR director, held weekly meetings with plan members and their spouses at which she addressed questions and problems that arose. Initially, employees complained that their doctors didn't understand how HSAs worked. Rather than submitting their bills to insurance carriers, doctors had to swipe debit cards and create payment plans if charges exceeded the amount of money in employee accounts at any given time. In one case, just two days after the plan went into effect this past January, Evans stepped in to help an employee whose doctor insisted on being paid up front. "We knew we would be at risk for the first few months until employees could build up their accounts," Cruze says. "The whole thing took some education and a little bit of getting

used to."

Now, almost a year later, many of the kinks have been worked out. The best part about HSAs, Van Tol says, is that he no longer has to make copayments--the quints, who will turn two in January, are healthy but still have quite a few doctor's appointments. Even better, he adds, is that the kids are finally sleeping through the night.

The Experts Weigh In

Time is not on your side

I love that health savings accounts will keep costs down for White Stone and, if the company's employees are frugal, they won't lose the money at the end of the year. My only concern is the timeline for funding the deductible. If Cruze's employees don't have enough money accumulated in their accounts to pay for immediate medical needs, they shouldn't have to dip into their own pockets or deal with annoyed doctors.

Aaron Keller
Managing principal
Capsule
Minneapolis

It's a win-win

Both Cruze and his employees come out winners. Cruze can control premium costs by eliminating minor claims against White Stone's policy, while

employees benefit from having 100% of their deductibles funded. Cruze is a smart employer who's adapting to the changing philosophy regarding benefits. Going forward, employees will be expected to have some skin in the game.

Eric Paul
Benefits director
Outsource Group
Walnut Creek, Calif.

Too many downsides

A high deductible plan will keep White Stone's premiums low, but my fear is that some employees may keep the cash in their HSAs and not go to the doctor. Another downside is that HSAs don't offer a choice of coverage, unlike other models, such as health reimbursement arrangements and flexible spending accounts. Contributions are also capped, which limits how much you can purchase tax-free.

Life Insurance and Dental Insurance - Necessity and Facts

1. What life Insurance is
Basically, a life insurance policy, is an agreement between the insurance company, the insured person, and the beneficiary. The insured, pays a certain pre-defined amount to the insurance company. And in the case of death of the insured, the company pays the benefit to the beneficiary.
2. Types Of Insurance There are two basic types of Life Insurance. They are term life insurance, and permanent life insurance. Term life, as the name suggests, is a temporary agreement, for a pre-defined number of years, after which, the agreement expires. Various lengths of term life can be purchased, however, the most common ones are between 10 and 20 years. However, terms as long as 30 years, or as short as 1 year are also available. In the case of Permanent Life, the policy covers the insured till the date of their death, or till the time the agreement 'matures', which in most cases, is at age 100. There are different types of Permanent Insurance, which include whole life, universal life, etc. There are many different reasons for choosing either of these, so professional advice is always recommended.
3. How much will you get? In most cases, the amount you get, is dependent on the reason you purchase it. And this, in most cases, is to replace the income in the case of death. While most professionals would recommend 10-12 times your annual income, this can vary, and approximately should be good enough to provide for at least 20 years of safe income. However, inflation, final expenses, etc are not considered in this, so, you should always let a professional do the calculation before you decide any amount.
4. Benefits of life insurance Although, the benefits of life insurance differ from policy to policy, most of the policies have some of the benefits in common. The most effective benefit, is that the death benefit is, in most cases, excluded from any income tax deductions. Thus, a 500,000 dollar policy will transfer the whole 500,000 dollars to the beneficiary, with no deductions whatsoever. This, is also effective for passing wealth from one generation to another.

Dental Insurance
Some people don't take dental insurance as a reason for not going to the dentist. Others think that it is not a good reason for the dent it makes on their wallet every month. Few are content with their teeth and think it nonsensical to spend money every month on something that is perfectly alright right now. These are few of the reasons why people avoid dental insurance or not think of it until the last minute when getting health insurance. But you have to understand this one thing-dental insurance is very important due to the various benefits it has to offer.
Dentistry is one field where even the simple procedure of tooth extraction can cost as much as few hundreds of dollars PER TOOTH!!!Therefore, people relate dental processes or work with huge never-ending bills. But what they don't think of is that the small dent that dental insurance will make on their wallets every month is nothing as compared to the huge dent it will make getting a root canal implant or even getting your wisdom teeth removed on your wallet. Moreover, it also helps you in the finance department. What'll you do if you have to immediately get a tooth removed or are in need of a dental implant? If you have dental insurance in this situation it'll help cover up at least part of it, if not the entire cost.
Many people make do with the thought that dental care ends at flossing and brushing well. But actually, this is not true. It is not a very well known fact but is proven that dental diseases have a direct link with other diseases. Dental diseases are common to humans, even young, healthy adults and they can easily affect the rest of the body in various ways. For example, some dental diseases are known to lead to other non-dental yet very serious health problems rather diseases like diabetes and even kidney infections.
Therefore, in this case dental insurance is very helpful as it even covers costs of regular dental checkups, that help check the growth of diseases, if any identified. This step of uncovering diseases and preventing them from becoming bad to worse is very important. Dental insurance encourages care keeping in mind the prevention of dental diseases, which further leads to decrease in final costs involved in dental care and prevention of diseases.
While you are considering health insurance, you should keep dental insurance in mind as it is an integral part. Few of the benefits of dental insurance have been given above. It is advised you should get dental insurance. Even though it seems like a gimmick for getting your money but in reality it is for your own good.

What is the Best Boat Insurance Company?

There is no answer when someone asks which boat insurance company is best. There are so many options it is difficult to determine the best. It really all depends on what the specific needs of the person you want to make sure the boat.
Faced with the facts, there are pros and cons of each insurance company you deal with. After all, insurance companies are in the business of making money, not pay out. This means they will do anything in his power to avoid having to pay claims, as this is the way they make money. If they do happen to pay for a claim, then increase in their insurance rates to help cover the loss or simply cancel the policy that best suits your needs. For an insurance company to cancel a policy that is more likely that politics is too much of a risk of continuing to prevent other claims. After having canceled a policy may make it difficult to obtain insurance elsewhere.
Boat U.S. has been to ensure the boats and only boats since it opened in late 1960's. Is said to offer some of the lowest rates and best coverage in terms of the craft is concerned. Its website offers instant quotes.
National Marine Underwriters is another strictly boat insurance company. That offer insurance in the 48 contiguous states with some limited extensions of territory from time to time. In business since 1983, offering lower rates and extensive coverage of all risk factors.
Progressive Boat, a division of Progressive Auto is one of the insurance companies cheaper boat, but said he did not offer nearly as many services and less comprehensive coverage. They offer free online instant quotes and his staff is said to be one of the most knowledgeable and friendship groups in the business.
American Boating Association is also an option on the boat insurance world. They offer competitive prices that are comparable with the boat's progress, but are a little shy in the services area. Free instant online quotes available. Quotes are also available by phone, but you should expect a long wait in line. His staff is friendly and professional.
To determine the best insurance for your boat then go to a website that provides multiple quotes from different insurance companies. This will provide the best information about several companies at the same time you will save time compared to calling all the insurance companies individual.
Many sites offer rates guaranteed if one accepts that offer of appointment, but this is not a widely accepted practice. Please note that insurance companies are not necessarily linked to a quote they provide. Insurance companies will have to verify all information provided to them before making a sale. This is necessary to protect against insurance fraud, which is fairly common in this world unfortunately.

Car Insurance

If you want to purchase a new car, then before buying the vehicle it is a good choice to consider various factors including car insurance policy, your driving record, credit history and the amount that you could afford to disburse. If you comprehend the fundamentals of car assurance policy then you can choose the best one that suits your necessities and provides you maximum coverage. You can select discounts and bring down your premium amounts and can stand to save much money at some point. Hence it is essential that you understand all the facts about it and the benefits that if offers you.

Increasing the deductibles is one easy way of obtaining a cheap car insurance policy. Deductibles are essentially the premiums that you disburse to the insurance company which compensates you for your loss. Higher premiums will bring about lower cost for the policy. In addition, if you have enough experience in driving with a good track record, that will help in getting you a cheap policy. This is because the insurer has to accept lesser risk to insure your vehicle against damages. The policy in car insurance brings confusion to many people because it is rather problematical. There is no doubt that people are giving more than the required amount that they need to disburse.
There are a lot of things to bear in mind when attempting to decide the best car insurance policy for your insurance necessities. The most essential thing is the experience of the company from which you are taking the policy. A number of insurance companies' policies are nothing more than facades to take your hard earned money.
Discovering the best transaction on car insurance policy is a great way to save money. Everyone who drives needs it, finally, but that doesn't imply you must pay a fortune for it. Only by performing a comparison of car information policy, you could get yourself saving hundreds of dollars a year or even more.

But it is significant to notice that while most people realize that they need to have a car insurance policy, very few people comprehend how car assurance works. Instead of getting the information they necessitate, they continue to write out those monthly or quarterly checks like clockwork. Because of this attitude, a lot of consumers are disbursing more for their car assurance than they need to.

Insurance Premium

An Insurance Premium is the actual amount of money charged by insurance companies for active coverage. An insurance premium for the same service can vary widely among insurance providers, which is why experts strongly recommend getting several quotes before committing to an insurance policy. Insurance agents or brokers will take your basic information and calculate an insurance premium estimate based on your answers and other factors. The lowest quoted price on an insurance premium may be the better bargain, but the level of coverage may also be lower.

The cost of an insurance premium is largely based on statistics, not necessarily on individual habits or history. A 22 year old male seeking car insurance for a sports car can often anticipate a higher insurance premium than a 45 year old woman driving a mid-size sedan. Both may have excellent driving records, but the insurance company considers a younger driver in a faster car to be more at risk for accidents. Therefore, the insurance premium quotes will be noticeably different. In general, a more expensive or faster car will cost more to insure, simply because owners of those vehicles TEND to drive faster.

The same philosophy holds true for medical insurance premium costs. Non-smokers statistically live healthier lives than smokers, for example. Construction workers may have more serious on-the-job accidents than accountants. A 55 year old lumberjack who smokes may be charged a higher health insurance premium than a 30 year old non-smoker working in an office. Conversely, an insurance premium may be reduced if the policy holder changes his or her habits and lifestyle.

An insurance premium is generally collected in monthly or semi-yearly payments. If the policy holder fails to make a scheduled payment, the insurance company can choose to cancel the policy entirely. This is often referred to as a 'lapsed policy'. Either the customer will pay the balance of the insurance premium and become reinstated or the policy will become null and void. Because the billig cycle can be lengthy, it is not unusual for policy holders to forget to make a payment before the policy lapses.

An insurance premium is always in a state of flux. Rates can go up or remain stable between billing cycles. An accident claim can dramatically change the insurance premium rate of the claimant, especially if the accident report shows the policy holder was at fault. Because most states now have a mandatory minimal insurance coverage law for drivers, there may be no other choice but to pay the increased insurance premium or find another company willing to insure a high-risk driver. Insurance agencies are for-profit businesses, so they will make every effort to recoup their losses after a pay-out. Paying an insurance premium may seem like a waste of money, but knowing your expenses will be met after an accident can bring peace of mind.