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The Problem Is Not the Life Insurance Products, or the Illustrations

No court would ever expect that Emma should have remembered it all. Chances are there are lots of these situations out there waiting to emerge, and it’s going to cost carriers a lot of money. The Real Solution So, what is the solution? The main problem is that these products with complicated, nonguaranteed elements are just not “set it and forget it” types of products. They need maintenance. Here’s an outline of what I think is needed: 1. Emphasize simple, short disclosures, both at issue and on an ongoing basis. Pages and pages aren’t going to cut it. The disclosures really need to be read and understood. 2. Make disclosures verifiable and ongoing. We need a method that, as much as possible, can be verified as having occurred. Require a sign-off by the customer, and, if that’s not possible, solid documentation that disclosures and options are delivered regularly. 3. Provide adequate disclosure at issue. This should be a short, simple paragraph that explains, at a high level, that the product the customer bought has nonguaranteed elements that are, to some degree, subject to the discretion of the carrier. Note that even the “index formula” in indexed universal life products usually...

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Triple-I: Insurance Economic Drivers Outperform Overall US GDP

Article 0 Comments The economic drivers of the U.S. property/casualty (P/C) insurance industry are growing faster than the nation’s Gross Domestic Product (GDP) and are expected to gain further momentum in the event of Federal Reserve monetary rate cuts, according to the Insurance Information Institute’s (Triple-I) latest Insurance Economics Outlook. “We’ve been forecasting that P/C underwriting growth would catch up on overall GDP and it has,” said Michel Léonard, chief economist and data scientist, Triple-I. “Triple-I forecasts P&C underlying growth to increase to 3.4% in 2024, 1.2% above the Fed’s GDP forecast of 2.2%. It will likely take at least another year for this economic rising tide to lift the P/C industry’s overall growth and performance,” added Léonard. P&C underlying growth is expected to continue outperforming overall GDP growth into 2025 and 2026, he said in the report. Comparing the P&C industry performance to the Fed’s GDP forecast, underlying insurance growth is expected to outperform overall U.S. growth by an average of 2% over the next three years, the report said. “Different economic stress scenarios may reduce or widen the spread between P&C underlying growth and overall GDP growth, or even reverse the overall trend of P&C underlying growth outperforming...

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Supplemental Claims Don’t Need to Include Damage Estimates, Fed Appeals Court Says

Article 0 Comments A federal appeals court has, at least for now, put an end to lingering questions about some property insurance claims litigation: The insured does not need to submit a competing damage estimate when filing a supplemental claim if the policy does not require it. But one of the underlying cases that the decision rests on could soon be taken up by the Florida Supreme Court, and that court’s opinion could ultimately impact Monday’s 11th U.S. Circuit Court of Appeals ruling. The 11th Circuit said in Great Lakes Insurance vs. Concourse Plaza A Condominium Association that the association had waited almost three years to provide a damage estimate and supplemental claim after Hurricane Irma. But that did not violate Florida’s supplemental claims statute, the court said. “…Great Lakes concedes that the insurance policy by itself ‘does not impose a requirement to provide an estimate of damages,’” the 11th Circuit judges wrote. Concourse Plaza’s September 2020 letter “therefore qualifies as a notice of a supplemental claim under Fla. Stat. § 627.70132. Because it was sent within three years of the date Hurricane Irma made landfall, the provisions of Fla. Stat. § 627.70132 were satisfied.” The ruling reversed a lower...

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DOL Seeks Feedback for ‘Retirement Savings Lost and Found’ Database

What You Need to Know EBSA is seeking information from plan administrators to establish an online search tool to help workers locate lost retirement savings. Secure 2.0 directs EBSA to establish the online tool by Dec. 29. Enforcement efforts have recovered more than $6.7 billion for missing participants and beneficiaries since 2017, according to EBSA. The Labor Department said Monday that its Employee Benefits Security Administration is seeking information from plan administrators to establish an online search tool to help America’s workers locate lost retirement savings. The Secure 2.0 Act directs EBSA to establish a search tool to help missing participants and their beneficiaries find their retirement benefits by Dec. 29. “The agency needs assistance from plan administrators to populate its online ‘Retirement Savings Lost and Found’ database,” Labor said Monday. Retirement plans, including pension and 401(k) plans, sometimes lose track of people owed benefits due to incomplete recordkeeping, people changing employers and other reasons, EBSA explained. In other cases, “workers may lose track of their retirement plans after their former employer goes out of business or when companies merge. People in these situations are considered ‘missing participants,’” EBSA said. The notice of proposed information collection asks plan administrators to provide the information voluntarily on...

Canadian economy to see modest growth in first half of 2024: CFIB forecast 0

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Canadian economy to see modest growth in first half of 2024: CFIB forecast

Canadian Federation of Independent Business (CFIB) Main Street Quarterly report Toronto, ON (Apr. 12, 2024) – The Canadian economy is expected to see positive growth in Q1 and Q2 2024, according to the latest Main Street Quarterly report by the Canadian Federation of Independent Business (CFIB). Key highlights of the Main Street Quarterly report for Q1 2024: CFIB’s forecasts in partnership with AppEco suggest the Canadian economy rebounded to 0.8% in Q1 2024 and will grow to 0.9% in the second quarter on a year-to-year basis. Consumer Price Index (CPI) inflation, both total (2.8%) and excluding food and energy (2.9%), continued its downward trend in Q1 and this trend is expected to persist in Q2. Driven by low long-term small business confidence, private investment contracted for the third consecutive quarter in Q1. It’s expected to keep declining in Q2, although at a slower pace. The national private sector job vacancy rate declined to 3.5% in Q1. This represents 496,700 unfilled positions. Our special analysis on insufficient demand this quarter shows that it is at the highest level since the pandemic, affecting half of SMEs. Businesses facing a lack of demand are also more cautious with their price increase plans. The...

Chubb Launches New Platform to Give Agents Quicker Access to Flood Quotes 0

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Chubb Launches New Platform to Give Agents Quicker Access to Flood Quotes

New self-service Flood Insurance System for homeowner policies features enhanced user interface New York, NY (Mar. 27, 2024) – Chubb Personal Risk Services (PRS) is pleased to announce the launch of a new self-service Flood Insurance System for agents that will seamlessly support its personal lines business for primary and excess flood and will provide quotes for low-hazard properties in under two minutes. This new platform will integrate with the Chubb Agent Portal and Masterpiece EZ Quote homeowners platform. Agents will benefit from working directly with Chubb as a single point of contact for faster access to flood quotes and an enhanced user interface. The system will be available across all U.S. states where Chubb writes flood insurance. “We made a significant investment to create an exceptional quoting and issuance process for agents and to ensure we can offer complete flood protection coverage options for clients,” said Louis Hobson, Senior Vice President of Chubb’s North America Flood Insurance Business. Flooding Isn’t Just Caused by Natural Disasters The frequency of flooding is increasing with changing climate conditions, including in many areas historically not prone to it. While commonly associated with major weather disasters, flooding is also linked to less obvious events...

Smart Health Benefits Coalition Grows With CALU 0

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Smart Health Benefits Coalition Grows With CALU

Coalition to advocate for smart updates to Pharmacare Bill C-64 Ottawa, ON (Apr. 11, 2024) – The Smart Health Benefits Coalition (SHBC) is pleased to announce it is growing, welcoming the Conference for Advanced Life Underwriting (CALU), Canada’s professional association for leaders in the life insurance and financial advisory industry. With the addition of CALU, the Coalition now benefits from seven member organizations with extensive national networks in communities across Canada, comprised of on-the-ground experts supporting the drug, health and retirement benefits Canadian employers and employees rely on. These organizations support 65,000 small and medium-sized employers across every province and territory, including over 4,800 union benefit plans. Together, SHBC members support robust benefit plans for 10 million Canadians and their families. “The addition of CALU brings additional great value to the SHBC”, says Carolyne Eagan, the principal spokesperson for SHBC and President of Benefits Alliance, an SHBC member. “CALU is already a well-known and respected voice with a track record of helpful insights on other issues in the life insurance and financial advisory industry. CALU’s addition to the fold strengthens the SHBC’s representation of advisors across the country. Our coalition advisors are valued resources to Canadians navigating the healthcare system...

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1 Dead and 13 Injured in Semitrailer Crash at a Texas Public Safety Office

Article 0 Comments BRENHAM, Texas (AP) — A Texas semitrailer driver rammed a stolen 18-wheeler through the front of a public safety building where his renewal for a commercial driver’s license had been rejected, killing one person and injuring 13 others, authorities said Friday. The intentional crash into the single-story brick building off a highway in Brenham, a rural town outside of Houston, littered debris in the parking lot and left a gaping hole in the entrance. The crash damaged the front of the red semitrailer, which was hauling materials on a flatbed. After crashing into the building the first time, the driver backed up the truck with the intention of smashing it again before being detained, Brenham Mayor Atwood Kenjura said. “It’s unfortunate that we are here gathered for a really senseless tragedy,” Kenjura said. The driver — identified as Clenard Parker, 42 — was pulled out of the truck by authorities at the Texas Department of Public Safety office. Authorities say Parker did not resist when he was taken into custody and would face multiple felonies, but did not specify the charges. On Thursday, Parker was told by employees at the office that he would not be eligible...

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Here’s What’s Wrong With the 4% Rule

What You Need to Know The 4% rule seems like a simple solution for retirement spending, but there are pitfalls. The best approach is one that adjusts for actual market returns and real-life inflation rates. For investors who prefer a formulaic approach, a better alternative to the 4% rule is to use the IRS’ RMD table. Clients save for retirement over the course of their working careers.  While retirement income planning can be complicated given the variety of available options, it’s typically easy to advise clients about how much they should be saving. Most clients should be advised to contribute the maximum amount they can afford to tax-preferred retirement accounts.  The advisory picture becomes much more complex when it comes time to start drawing from those accounts. Once required minimum distributions are satisfied, clients often wonder how much they can safely withdraw to minimize the risk of running out of money during retirement.  The “4% rule” is an often-cited strategy. Most retirees who rely primarily on retirement accounts for income during retirement will have difficulty adhering strictly to the rule’s assumptions. Although many clients like the formulaic approach of the 4% rule, it’s critical that advisors explain the fine print...

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Munich Re Specialty Launches FAIR Plan Commercial Wrap Product in California

Article 0 Comments Munich Re Specialty Insurance is launching a FAIR Plan Commercial Wrap, available to commercial insureds in California who seek comprehensive coverage in tandem with their FAIR Plan coverage. MRSI’s FAIR Plan Commercial Wrap is designed to enable insureds to more fully protect their business properties against property damage than just the FAIR Plan alone. Sold through wholesale brokers, the product gives businesses access to coverage for property damage – including water damage, burst pipe coverage and other non-fire perils – that the FAIR plan excludes. This coverage is being provided on a non-admitted business and may not be available in all circumstances. Munich Re Specialty Insurance is a description for the insurance business operations of affiliated companies in the Munich Re Group that share a common directive to offer and deliver specialty property/casualty insurance products and services in North America. Topics California Commercial Lines Excess Surplus New Markets Was this article valuable? Thank you! Please tell us what we can do to improve this article. Submit No Thanks Thank you! % of people found this article valuable. Please tell us what you liked about it. Submit No Thanks Here are more articles you may enjoy. Interested in...