• Guaranty Funds

    Each state has a guaranty fund. Their purpose is to minimize the loss to their citizen policyholders when an insurance company becomes financially impaired or insolvent. Various studies reveal that the following are among the most common reasons for insurance company failure:

  • Resiliency

    Sometimes the concepts of insurance and risk management can become clouded and confused. Something is often lost among the mechanics of arranging for coverage, what should be covered, how it should be covered and what costs are involved. Many fail to appreciate the real value of these concepts and may get to the point where they are considered merely expenses and barriers to other, more important objectives.

  • Deductibles

    Insurance policy deductibles serve a couple of very important objectives. First, deductibles allow insurance companies to save money by not having to respond to frequently occurring, minor losses. In other words, a million one-dollar losses still add up to a million dollars. Second, deductibles create an incentive for insurance consumers to make the effort to eliminate or mitigate losses. Deductibles, as used in property insurance, can come in different forms such as the following:

  • How Wild Is That Fire?

    There are a number of ways that Nature is capable of completely hammering us. Winds, floods, hurricanes, tornadoes, and earthquakes are commonly viewed as catastrophes. One source that is garnering greater attention is fire. Yes, fires are typically seen as losses that are localized, affecting individual properties. However, fires can occur on a catastrophic level when they consist of flames that spread very quickly over large areas.

  • New Ways for Old Policies

    The only thing that remains constant over time is change. All forms of insurance policies have to deal with change. Most of them have to deal with how coverage is provided, including responding to developments from significant court cases and changes needed by parties covered by policies. But now, in the U.S., policy forms are facing changes in format and language and these are reflected by actions in various U.S. states. Specifically, different states are providing rules and laws regarding policies being offered in an electronic format and/or in other languages, typically Spanish.