Hulk Hogan proves my point

I posted here three reasons why almost every Massachusetts auto owner should purchase more than compulsory auto insurance.

Need more convincing? As reported here, Hulk Hogan is suing his insurance agent for not seeing to it that he had an umbrella policy over his $250,000 motor vehicle coverage. His $250,000 limit was insufficient to cover damages when his son seriously injured a friend in an auto accident, requiring him to pay out of his personal assets.

Should I buy disability income insurance or life insurance?

The loss of a spouse, particularly the major wage earner, can have a devastating impact on a family's immediate cash-flow needs as well as its individual members' financial goals. Whether you need disability income insurance, life insurance, or any insurance at all, depends on your personal financial situation. Members of the Financial Planning Association of Greater Indiana may be able to help advise you.
A disability or death has a direct impact on the surviving family's current lifestyle and on the lifestyle that was assumed for retirement. The 401(k) balance, pension benefit and Social Security benefit will all be much less than if the primary wage earner had lived through his or her working years.

The details will be different for each family, depending on whether the spouse worked outside the home, if there were children, or other factors.

But generally the loss of either spouse is going to have an economic impact on the family. A stay-at-home mom does not have any income that would need to be replaced, but the surviving spouse would need to pay someone to help care for the children.

Unfortunately, too, many people don't realize the importance of life insurance until it's too late.

However, imagine yourself or your spouse gone tomorrow. How would you answer these questions:
  • What would the immediate impact on your family be?
  • Are they counting on your paycheck in the future to cover basic needs and future savings goals?
  • Could they afford the funeral costs?
  • Who would pay the home mortgage?
  • Who would raise the kids?
  • And what about saving for retirement and college costs?

Life Insurance Quotes Made Easier

Digital News Report – Many people who want life insurance fail to get it because of the hassles associated with determining whether they qualify and cost uncertainty. Various companies, including MetLife, now have a solution.

A new online assessment tool by Metlife may make that easier. The company says that their calculator provides “clear guidance” for how much life insurance consumers really need. More importantly the new tool will help determine the cost.

The tips will help customers remove the purchase barriers and simplify the purchase process. This will make it easier for the breadwinner to protect his or her family.

About 59 percent of Americans ages 25-44 with household incomes under $100,000 recognize the need for life insurance. About half of those families will inquire about coverage, according to the company.

New Blog Look

Yep, a new look here.  Cleaner, neater, with a pretty picture of me.



Same great insurance information.  Perhaps more often.

Nova Scotia's cap on damages stands

You may recall our earlier post on the decision of the Nova Scotia Court of Appeal to uphold Nova Scotia's cap of $2,500 for general damages for "minor" injuries.

The Supreme Court has refused leave to appeal, so the cap remains.

The decision is MacDonald v. Attorney General of Nova Scotia.

Redundancy and Fail-Safes

How many systems failed in the BP Gulf of Mexico oil spill?



How many different things went wrong, all at the same time.



Can the same thing happen in your business?  Sure it can.



Can the same thing happen to you in your personal life?  Sure it can.



Shouldn't we be thinking about the fail-safe on the fail-safe?



I've been backing my computer up for fifteen years.  The other day I bought a backup drive for my backup drive.



My computer data is my business. Why would I not spend another $120, just in case?



What systems in your business need fail-safes?  Then put another fail-safe on top of that.

Changes to the Occupational Health and Safety Act

On July 1st, 2010, the Occupational Health and Safety Act will be amended. The Act can be found on the E-Laws website at http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90o01_e.htm.

The changes are primarily directed towards workplace violence and harassment prevention and require employers to prepare policies with respect to workplace violence and harassment and review the policies.

Each employer may wish to review the new changes to ensure compliance.

Why Your Underwriter Is Important

The underwriter is the employee at your insurance company who decides how much coverage to provide and what premium to charge you.



Between 20 and 30 percent of your business insurance premium is in his control - coverage decisions too.



Insurers use a rating system that uses statistical data about your operation and sets a base premium.  From there, the underwriter adds debits or credits, impacting your costs.



An underwriter's opinion of your business, your risks, and your character can have a dramatic impact on what you pay and what coverage your insurance company offers you.



The underwriter's judgement is formed from information provided by your agent: past losses, reports from adjusters, reports from loss control inspections, and outside information.  Underwriters will review your website and Google your company, too.



You can impact your premiums by cultivating a relationship with your underwriter.  Work with your agent to coordinate a "PR" campaign, keeping your underwriter up to date on your operations and plans.



Invite the underwriter to visit your operation, if feasible.  Perhaps do a short video introduction to your operation, or a video tour.  At the least, your agent should provide pictures and a written overview of your operation.



Consider sharing your business plan or an executive summary.



The more comfortable your underwriter is with your business, the better coverage and premium they will offer.

Hurricane Preparedness Week

From May 23 to May 29th, it's Hurricane Preparedness Week.



Go to http://www.nhc.noaa.gov


From June through November it's hurricane season on the Atlantic coast.  This advice is true, though, for all parts of the US.


Do you have a disaster plan?


Start simple.  How would you communicate with your employees in an emergency?  Do you have a list of employees, phone numbers, email addresses, mobile phones?  Why not?


You can start simply with a Google Docs form.  Here is a sample.


Build your own form and have employees visit the site.  Each inputs their name, phone numbers, and other contact info.  They build the list for you.  Set up a new form every year so you are sure to be up to date.


Communications is vital to any disaster plan.  Set up a website where employees can go for info on emergencies.  Build a phone tree where employees call other employees to provide info.  Use Twitter or Facebook.  There are proprietary communications systems too.


Some companies set up a phone hotline that employees can call for updates.  Some use automated phone dialer systems to get info to employees.


With so many options there is, frankly no excuse for a lack of a communications plan.


Massachusetts Appellate Division holds that insurer did not violate 93A when it relied on IME opinion to deny PIP benefits

I reported here on the Salem District Court case of Genest v. Commerce Ins. Co., 2010 WL 1740605 (Mass. App. Div.), in which an insurer was held not to have violated Mass. Gen. Laws ch. 93A when it failed to pay PIP benefits.

The Massachusetts Appellate Division has affirmed that ruling. 2010 WL 1740605 (Mass. App. Div.).

Genest, the insured, was injured in an automobile accident. She sought PIP benefits from Commerce. Commerce paid medical expenses but cut off additional payments on the advice of an independent medical examiner, who opined that injuries caused by the accident had resolved.

The Appellate Division held that Commerce's reliance on the IME was reasonable, and that its subsequent decision to pay the medical bills was merely a business decision. Because Commerce's liability to pay the medical expenses was not reasonably clear, it was not liable for breach of 93A.

Definitions - Bumbershoot Policy

Bumbershoot Policy - A liability insurance policy, similar to an umbrella liability policy, for marine risks.  Think boatyards and ship yards.  The policy is excess over primary policies, providing additional limits of protection.  Coverage may include protection and indemnity (P&I), Longshoremen and Harbor Workers Act protection.



I have always thought this was as close to humorous as insurance gets - bumbershoot is "British" for umbrella.

Client Comments

My focus is always providing value to my clients.  Here's a note I got from a client that needed help quickly.


Scott –


WOW!  Thank you for helping our safety management consulting firm navigate the unclear course of purchasing errors and omissions insurance.  We had put off the decision to buy E&O insurance for years, not understanding how to get the coverage we needed – or even knowing what we really needed to cover the kind of work we do.  I ‘found’ you one day searching on the internet.  After reading an article you had written and seeing that your credentials are second to none  and the service you provide so unique, I knew I had to call you.


You gave me great information, straightforward answers, and assurance that we were getting what we needed as you guided us through the process of searching for and selecting an insurance agent.  Your prompt attention to every phone call and email was so appreciated.  You talked to us in plain terms, not insurance lingo and then negotiated with our selected carrier.  I liked the fact that once the policy was presented, you reviewed it to make sure we got what we asked for.  What really impressed me was the fact that you saved us a significant amount of money compared to quotes we had received over the years.  I feel like I made money working with you!  Your service is such a valuable one for busy business owners who need a trusted independent insurance expert – I would recommend you to anyone who wants to make sure they are making the right investment in their risk management portfolio.


Thank you!
Deb


Deb Potter, PhD
President, Potter and Associates International

Horrible Phone Call

The other day I got a horrible phone call.  



One of my clients is in the middle of a messy claim on their home insurance policy.


My work for this client has been on his company.  I had offered to review his personal insurance.  He never took me up on that offer.  Now he is having a problem.


I never want to get a call like this again.


While 99.9% of my work is business insurance, I do have expertise in personal insurance.  If you are a client, please let me review your personal insurance policies.


Here is my offer:


-Scan and email me you personal auto, home, umbrella, boat, motorcycle, and/or snowmobile policies.  Fax them if its easier. 


-All I need are the "declarations" pages.  The pages that describe you, your stuff, and your insurance.  I do not need the policy contract forms - I probably have those.


-I will review the policies and get back to you with my comments and thoughts.  We can talk about my concerns.  You can talk with your agent and then we can talk again, if you like.


-I will not charge you (or your company) anything for this review.  I do not want to ever get another call like this again!


Please take me up on this.  If not for you, for me.


PS - If you are not a client, I'm still glad to help.  My fee for personal insurance policy reviews is $250 (personal auto, home, umbrella, boat, motorcycle, and/or snowmobile policies).  Email me your policies and go to my fee page.


Superior Court holds that post-arbitration interest of twelve percent applies in context of uninsured and underinsured coverage

In my last post I started discussing the Superior Court case of Meaney v. OneBeacon Ins. Co., 2010 WL 1253600 (Mass. Super.), which concerns post-arbitration interest in the context of uninsured and underinsured motorist coverage.

Judge Neel held that post-award interest in an arbitration case is twelve percent. His reasoning was that two SJC decisions affirmed awards at that rate without addressing whether the rate was appropriate.

Thirty True Things

Thirty True Things

These are not necessarily, “the” thirty truest things, but I believe them all to be true. What do you think?
30. Every boy needs a dog.
29. God gives you only enough good shots in golf to keep you coming back.
28. Insanity is continuing to do the exact same thing, but expecting different results.
27. Failing at times is assured, but being a “failure” is a decision you make.
26. We should spend a lot of time visiting with our grandparents while we have them.
25. Death of a loved one feels deeply wrong and unnatural, and that is because it was never intended to begin with.
24. Words, not just sticks and stones, can hurt.
23. People should be judged on the content of their character, not their color.
22. God has a sense of humor. (Consider the duck-billed platypus, or the way you wore your hair at senior prom.)
21. There are no dead atheists.
20. The suicide rate among the poor will never catch up with that of the rich.
19. Fathers should help support the children they help make.
18. Insurance companies don’t seem to like to pay claims.
17. Contrary to poplar belief, not all lawyers are crooked.
16. Only true Christianity through faith in Jesus offers forgiveness and a right relationship to God, forever.
15. Camping makes you appreciate the outdoors while there, and the indoors when you return home.
14. Debt is a curse, not a blessing, and one does not have to live with a car note forever.
13. Love people, use things; never the other way around.
12. You just can’t make everybody happy.
11. Feed a man a fish, you feed him for a day; teach him to fish, you feed him for lifetime.
10. If you shall not work, neither should you eat. (Notice it is “shall not”, not “cannot.”)
9. Kids can help out with small chores at age 3, and more thereafter; and should always say “Sir” and “Ma’am.”
8. There is always one person at every execution...the mother.
7. Macs are just better computers than PCs.
6. Placing a child for adoption is an act of love, not abandonment.
5. Abortion kills children.
4. Parenting is the most important job in the world.
3. Love is best lived out, and should be said on a daily basis.
2. No one, on his deathbed, ever wished he had spent more time at the office.
1. There is nothing all that wrong with this old world, it’s just the people in it.

Health Insurance - New Rules - Adult Kids

An excellent article in yesterday's USA Today on adding adult children to your health insurance policy.



http://www.usatoday.com/money/perfi/columnist/block/2010-05-18-yourmoney18_ST_N.htm



Well done Sandra Block.

Institutional Liability for Sexual Abuse

Reference Re: Broome v. Prince Edward Island, [2010] S.C.C. 11

The Supreme Court of Canada recently commented on a variety of issues relating to whether an institution is liable for historical sexual abuse.

In this case, the plaintiffs alleged physical and sexual abuse as children while they resided in a privately owned and managed children’s home. The court considered 4 issues:

1. Did the province owe a duty of care by virtue of the common law, its statutory authority and responsibility, or the doctrine of parens patriae?
2. Did the province owe a non-delegable duty?
3. Was the province vicariously liable for the acts or omissions of the trustees, staff or volunteers working in the home?
4. Did the province owe a fiduciary duty to the residents in the home?

The court held that there was not sufficient proximity to impose a duty of care. Although the governing legislation set out that the director shall “inspect or direct and supervise the inspection of any institution established for the care and protection of children or place where a child is placed pursuant to the provisions of this act”, this was insufficient to impose a duty of care. In addition, the mere fact that the province provided some funding indirectly in the form of grants was not enough to create a sufficient relationship of proximity between the province and the children.

The court also held that the province did not owe a non-delegable duty of care to the residents of the home. The home was not a children’s aide society, the children were not foster children or wards of the province, and the legislation created no role for the province in the operation of the home or for the care of the residents.

In terms of vicarious liability, the court rejected the plaintiffs' submission that the province exercised sufficient control over the home through legislative authority and statutory duties to justify the imposition of vicarious liability. The court noted that legislative authority is not enough to impose vicarious liability as if it were, “a province would be vicariously liable for every act committed in a field within its legislative authority”.

Finally, the court held that there was no fiduciary duty owed by the province to the children as there was no evidentiary basis to support an inference that the province directed or had the authority to direct the operation of the home. There were no facts that would have given rise to a fiduciary relationship.

This decision, when read in conjunction with decisions such as KLB v. British Columbia, [2003] 2 S.C.R. 403, is important in the defence of institutions for cases involving sexual abuse. It appears from this decision that something more than just legislation, such as a direct role in supervising children, is required in order to impose liability.

Superior Court holds that three year statute of limitations applies to post-arbitration interest on uninsured and underinsured motorist coverage

In Meaney v. OneBeacon Ins. Co., 2010 WL 1253600 (Mass. Super.), brought to my attention by Mike Tracy of Rudolph Friedmann LLP, the plaintiffs sought post-arbitration interest from the defendant insurance companies in the context of uninsured and underinsured motorist coverage. In an earlier decision the Superior Court had ruled that they were entitled to such interest under common law.

In the current decision Judge Neel ruled that, like all 93A claims, the claim for violation of Mass. Gen. Laws ch. 93A was governed by a four year statute of limitations.

The court held that the gist of the common law counts were tort claims, not contract claims, so that the three year statute of limitations for torts applied to them.

Downsides to not purchasing optional coverage on a motor vehicle policy

Under Massachusetts law people who own cars are required to have automobile insurance. The required or "compulsory" coverage includes $20,000 of coverage for "bodily injury to others."

I recommend that almost everyone purchase optional bodily injury coverage in addition to the compulsory coverage. There are several reasons for this:

1. As I discussed here with respect to general liability insurance, anyone can have an off day. If you space out or are distracted by your kids or simply miss a stop sign, you could seriously injury someone. Higher insurance limits will provide more money to the injured person, which could make all the difference to them. While everyone needs to evaluate their own financial circumstances in determining how much insurance they can afford, I firmly believe that ethics require those of us who drive to have higher than compulsory limits if we can afford them.

2. If you have appropriate insurance for your financial station in life the attorney for the injured person is likely not going to be interested in going after your personal assets. They will settle with the insurance company. But if you have inadequate insurance for your financial situation, the attorney is much more likely to encourage their client to insist that a settlement include contribution from your personal assets.

3. Compulsory insurance does not cover you if you are driving outside of Massachusetts. Optional bodily injury insurance, in any amount, will cover you in every state and Canada.

Policy Renewals - The In-Between Years

I'm currently working on about a dozen insurance bid projects.  When we finish each, we will have a new problem:  What will the premium be next year?



No matter how good a job I do this year, next year is a mystery.



Sometimes I can get the insurance company to agree on a consistent pricing structure - if the bid was submitted using 22% credits, the renewal will be issued using next year's rates and premium basis, with a 22% credit.



Few underwriters are agreeing to that now.



Most insurance advisors suggest bidding only every three years or so.  However, that leaves insurance buyers at the mercy of next year's underwriter.



What if this year Podunk Mutual is very competitive, and next year a new underwriter decides to double the premium?  Add to that the "tradition" of delivering renewal quotes four days before the policy expiration, and we find ourselves with an uncomfortable squeezing sensation in some rather tender areas.



Here's a solution...



Insist that your current insurer delivers the renewal quotes to you 60 days before the policy expires.  With quote in hand, you can decide what to do.



If your insurer provides you with a renewal similar to last year's policy, you probably will decide to stay with what you have (modifying the coverage to meet your current needs), and everyone is happy.



A steep increase or change in policy terms might trigger another round of alternate quotes.



Getting quotes 60 days ahead of time gives you some options.



Beware of Load Limits!

If you own a backhoe, front-end loader, crane, or other mobile equipment, this post is for you.



Your insurance policy covering your equipement probably has an exclusion for damage that is caused by a load in excess of the capacity of the machine.



If your crane is rated for x and you lift x+, any damage to the crane may be excluded.



Some policies exclude damage to booms.



Talk with your insurance advisor.

Massachusetts Appeals Court holds that your work exclusion does not apply to trespass damages unrelated to a contractual relationship

In a recent post I discussed Porter v. Clarendon Nat'l Ins. Co., 76 Mass. App. Ct. 655 (2010), in which insurers argued that there was no coverage for a claim that its insured had built a retaining wall and two parking lots on an abutter's property, resulting in continuing trespass.

The insurers argued that the claim was excluded by the "your work" exclusion, because it was the insured who erected the retaining wall and paved the parking spaces. The Massachusetts Appeals Court disagreed.

The exclusion excludes work for "[w]ork or operations performed by you or on your behalf." The court noted that the exclusion "operates to exclude repair or replacement costs for faulty workmanship by the insured that it has been contracted or otherwise hired to perform." The reason for the exclusion is that the general liability policies in which it is found provide coverage "for tort liability for physical damages to others and not for contractual liability of the insured for economic loss because the product or completed work is not that for which the damaged person bargained."

The court held:

The complaint here was not brought by someone involved in a contract or project with the insured, seeking repair or replacement costs for faulty work on the damaged property. Rather, an abutter to the insured, with no contractual or other business relationship with the insured, sought trespass damages. Consequently, the exclusion does not apply.

What's A Mutual Insurance Company?

The insurance world is made up of two types of insurers - ownership wise.



Stock insurers are owned by stockholders.  They are corporations like Google, Starbucks, and Exxon are corporations.  Shares of the company are bought and sold on stock exchanges.  The company can raise capital by selling more shares.



A mutual insurance company is owned by the policyholders.  Profits are distributed to the "owners" by the payment of dividends.



The owners of a stock insurer are interested in the appreciation of the value of their stock.  They want to make money.



Mutuals usually have a history of like-minded business people who band together to manage some risk.  The original objective was to provide some form of "mutual" aid.



In the current insurance marketplace I do not see that stock insurer or mutual insurer makes much difference to the insurance buyer.  There are some great, old mutual insurers who serve their clients well.  There are also some dubs.



Same with stock companies.



Select your insurer on the basis of the quality of the coverage provided, the relationship your agent has with the insurer, the financial strength of the insurer, and the way the insurer approaches service.

The Duty to Defend in a Homeowner's Policy

McKinnon J. of the Ontario Superior Court of Justice recently released a decision arising from a Rule 21 motion for determination of a question of law, namely whether an insurer owes a duty to defend homeowners arising out of a homeowner's insurance policy. The claim against the homeowners arose after they sold their house. The purchasers alleged misrepresentation on the part of the homeowners for failing to disclose the condition of the property. Poplawski v. McGrimmon, [2010] O.J. No. 33.

What I found interesting in this decision is the very helpful overview of the law on an insurer's duty to defend. Here are a few paragraphs from this overview:

There is a three step process to determine whether an insurer has a duty to defend its insured:
(a) Are the plaintiff's legal allegations properly pleaded?
(b) Are any claims entirely derivative in nature?
(c) Do any of the properly, pleaded non-derivative claims potentially trigger the insurer's duty to defend?

In considering whether a plaintiff's allegations are properly pleaded, courts are not bound by the legal labels chosen by the plaintiff. When ascertaining the scope of the duty to defend, a court must look beyond the choice of labels and examine the substance of the allegations contained in the pleadings. This does not involve deciding whether the claims have merit: the court need only decide, based on the pleadings, the true nature of the claims. A plaintiff cannot change negligence into an intentional tort simply through the choice of words.

In considering whether any of the claims potentially trigger the insurer's duty to defend, where the allegations of negligence constitute a separate tort and are not an attempt to "dress" intentional conduct as negligence, the insurer will be under a duty to defend: see Godonoaga (Litigation guardian of) v. Khatambakhsh, [2000] O.J. No. 2172 (C.A.) at paras. 28 and 32.

If there is any uncertainty as to whether a claim falls within the applicant's policy coverage, the uncertainty must be resolved in favour of the insured: see Co-Operators General Insurance Co. v. Murray, [2007] O.J. No. 2329 (S.C.J.) at para. 6.

Massachusetts Appeals Court holds that exclusion for property you own rent or occupy does not apply to third-party claim

In Porter v. Clarendon Nat'l Ins. Co., 76 Mass. App. Ct. 655 (2010), the underlying plaintiff, Porter, and defendant, Clarendon (the insured), owned abutting property. Porter alleged that Ryan had built a retaining wall and two parking spaces on Porter's property, resulting in continuing trespass. Ryan defended on the ground of adverse possession.

Ryan's insurers asserted that coverage was excluded by an exclusion for property damage to "property you [the insured] own, rent, or occupy." The insurers argued that because Ryan "occupied" the disputed property, there was no coverage.

The Massachusetts Appeals Court disagreed, stating:

That exclusion prevents the insured from using the general liability policy as property insurance. . . . "What the exclusion means is that the [general liability] policy was intended to cover only liability of the insured to third parties and not [damage to] the property of the insured." Here, the damage caused by the trespass was to at third party's property, not property of the insured.

Congress working on bill to extend National Flood Insurance Program by five years

I have written several times (click the link and then scroll down to see earlier posts) about the National Flood Insurance Program, or NFIP, a program of the Federal Emergency Management Agency ("FEMA") that issues standard flood insurance policies, mostly through private insurers. NFIP is created by statute, and was originally set to expire in October, 2008. Congress has issued several short-term extensions to it. Recently Congress has had to reauthorize the program retroactively, and the program now expired again, leaving some homeowners unable to buy flood insurance.

Insurance & Financial Advisor reports here that Congress is working on a bill that reauthorizes NFIP until September 15, 2015. The article reports that the current version of the bill adds wind coverage, but such efforts have failed in the past.

According to the article, the current version of the bill increases coverage limits but phases out out premium subsidies for second homes and vacation homes.

TENNESSEE FLOODING


Tennessee lost at least 30 people to the flooding. Countless homes and businesses were washed away or out of commission due to the rising waters.

Financially, Tennessee sustained more than $1 billion in flood damage just in the private sector, according to our governor. Recall that $1 billion is another way of saying “one thousand millions.” By any measure, these floods were unprecedented. In some areas there were three months of normal rainfall in about thirty hours.

Tragically, many homeowners were not insured against flooding. Regular homeowners’ insurance does not cover flooding from rising waters. Because this week's flooding hit in areas not considered flood-prone, it is possible that the majority of property owners may not have had flood insurance.

In Nashville, water covered the field where the Titans play. Part of their downtown was submerged for days. Gaylord Opryland Resort and other facilities had to evacuate 1,500 people to a high school, due to about eight feet of water in it. It maybe closed for six months or longer, deeply affecting tourism. Tuesday's Grand Ole Opry country music performance had to be moved to a different auditorium, but played on.

Locally, Millington was particularly hard hit, but local churches and the Red Cross have stepped up to help. Each morning, crews leave First Baptist while loads of food are distributed from Crosspointe. These efforts, along with countless other churches, organizations, and individuals form a network of neighbors helping neighbors characteristic of our great area. Unsung heroes brought their boats and four-wheel drives to rescue people from flooded apartments and homes.

Dyer County to our north struggles as well. It was actually one of the first few counties declared as disaster areas by FEMA. Out of 95 total counties in Tennessee, over 50 have been sought by the governor to be declared disaster areas.

I cannot help but think of another flood. The largest flood ever. The one that many secular scientists say never happened. Looking just at the record 3-Day Rain Total of 17.51 inches received at Birdsong near Nashville, imagine if that rate continued for 40 days and 40 nights! There would be over twenty feet of rain, not counting drainage. The Biblical deluge was much worse than that, because much of the water was not rain, but the “fountains of the great deep” bursting open. We see the immense pressure of the gulf oil spill spewing black fossil fuels into the sea. Water in the ground was once under similar pressure and burst forth violently, covering the lands. Mountains, later pushed up by plate tectonics, still have seashells on their very top as a result.

However, those who listened to Noah were sealed up safely. Similarly, those who put their faith and trust in Our Lord Jesus may well perish, but will never be lost.

Allow this time of suffering to be the catalyst that points you to the Lover of your soul.

Mr. Peel’s other articles are posted on his blog at insurance-coveragelaw.blogspot.com. He often speaks to clubs and churches and may be contacted at PeelLawFirm.com.

TWINKLE TWINKLE LITTLE STAR, HOW I WONDER HOW OLD YOU ARE?

Evolution v. Creation series

The familiar nursery rhyme of “Twinkle, Twinkle Little Star” belies the long-standing controversy of the distance of stars and therefore, their age.

You may be thinking, are we discussing “distance” or “time?”

The short answer is, “both.”

Distant starlight has long been used as an argument against a young universe. Since there are galaxies full of stars that are very far away, it currently takes the light rays billions of years to get from there to Earth, and since these galaxies are visible to us each evening, many believe that the universe must be at least billions of years old—much older than the 6,000-10,000 years the Bible teaches.

First of all, the vastness of the universe is a way giving glory to God (Psalm 19:1).

For years, Christians have argued that God created the beams of light from these far distant stars “already on their way” here. They are quick to point out that Adam was created in a mature state, as he was commanded to be fruitful and multiply. He never had a mother, never nursed nor likely had any need of a navel! Also, the Garden of Eden was clearly created in a mature state, in that it gave fruit to our original parents to eat.

Genesis 1-2, in describing Day 4, seems to indicate to many that the universe was also made in a fully mature state. If not, the stars were not made visible, then how could they be used to give “signs and seasons.” This would be achieved if the light from these distant stars was created already “on the way.”

The creation movement has a controversy within itself about assuming that the light was created in-transit. From our modern observatories, we can actually observe events still happening in deep space. We can observe the movement, expansion, contraction and even destruction of stars. These celestial lights above are occasionally even obliterated by massive explosions we can watch.

Critics argue that these events we can literally watch occur never actually even happened, if God created the light beams already “on their way.” It would indicate to some that the stars we see expanding may never have even been there to begin with. Exploding stars may have never exploded or even existed, they argue.

So, did God merely fictionalize history when it came to distant stars? To more than a few creationists, God would never create illusory events. It smacks of dishonesty to some.

However, is it really that simple to write off this--the oldest of creationist apologist’s explanations? Think back to the Garden of Eden. Let’s assume that we look at a simple apple tree on Day 6, as Adam is under the first anesthesia, having the first surgery that will produce the first woman.

This twenty-five foot tall tree is covered with apples, many of which are ready to eat. The trunk looks mature and old, and there are leaves or more. Naturalistically speaking, an apple seed from an even older apple would have had to “die” in the ground to birth this one. Years of necessary watering, sunny days, and bee-pollinated blossoms did not occur, but the tree is nevertheless here in the Garden.

The very soil is formed mostly by the death and degradation of organic matter like plants. Again, these plants never lived, died or decayed. But the mature soil still exists. And, to borrow the old riddle, the chickens are walking around without the benefit yet of the very first egg.

Is this God fictionalizing as well? Or, in fact, is the setting in motion of natural processes that appear as if they have existed for millennia? I would contend that God started time with an appearance mirroring his Trinitarian Godhead, in three parts—past, present and future. It is only very far way that we can even see the created past. What of the wine in the jug as Christ’s first miracle? The grapes were never grown. What of the fish that fed the 5,000 who apparently never swam? What of the bread that was made of wheat the was never planted, and never swayed in the sunny breezes? Miracles are supernatural, by definition.

That does not mean that people are not still looking for an explanation. There are other creationist theories developing as well. I will just touch upon a couple briefly.

Speed of Light’s Consistency:

It assumed that the speed of light is constantly one year to travel 6 trillion miles, or 186,300 miles per second. If though, light was faster in the past, light could travel the distance without any delay. Light speed might have been affected by gravity or other factors.

Perception of Time:

Albert Einstein discovered that time passes differently depending on motion and gravity. If a spaceship moved fast enough--close to the speed of light--“time-dilation” occurs. As a clock approaches the speed of light, that clock would tick very slowly. If we could somehow reach the speed of light, the clock would stop completely. Also, gravity slows the passage of time. An atomic clock at sea-level ticks slower than one on a mountain, based on the strength of gravity. If Earth’s gravity varied in the past, (sometime called a “white hole”) that caused quick expansion--it may be that time would seem to flow more slowly on earth than in the distant universe. This would be somewhat akin to the way time zones interrelate.

In general, we can observe things about the galaxy that seem inconsistent at first glance with a young universe. However, there are many items that argue strongly against a universe of any age approaching multiple billion years.

For instance, many stars burn too hot to last long. Some called “hot blue” stars, cannot last billions of years. Spiral galaxies are common, but cannot be very old because they continue to twist. Disintegrating comets and decaying magnetic fields are in our own galaxy, and are not consistent with billions of years. Thus, the location and distance of the heavenly bodies challenge the alleged long age of the universe.

The stars’ location should cause no serious challenge to a young earth creationist, or belief in the God who named each one. Whatever theory comes in or out of vogue in creationist circles, we know that the heavens declare the glory of God:

He determines the number of the stars

and calls them each by name.

Great is our Lord and mighty in power;

his understanding has no limit.

Psalms 147:4-5.

NATIONAL DAY OF PRAYER RULED UNCONSTITUTIONAL


George Washington and our other founding fathers could scarcely have imagined that their idea for a National Day of Prayer would one day be declared against the very Constitution that many of them wrote. The Continental Congress called for "a day of public humiliation, fasting, and prayer" be observed in 1775.

Over 200 years later, on April 15, 2010, Judge Crabb ruled that the statute establishing the National Day of Prayer was unconstitutional as it is "an inherently religious exercise that serves no secular function". However, she stayed her ruling pending the completion of appeals.

She explains her position in her ruling, wherein she stated the following:

“In my view of the case law, government involvement in prayer may be consistent with the establishment clause when the government's conduct serves a significant secular purpose and is not a "call for religious action on the part of citizens." McCreary County, Kentucky v. American Civil Liberties Union of Kentucky, 545 U.S. 844, 877 (2005). Unfortunately, (section) 119 cannot meet that test. It goes beyond mere "acknowledgment" of religion because its sole purpose is to encourage all citizens to engage in prayer, an inherently religious exercise that serves no secular function in this context. In this instance, the government has taken sides on a matter that must be left to individual conscience. "When the government associates one set of religious beliefs with the state and identifies nonadherents as outsiders, it encroaches upon the individual's decision about whether and how to worship." McCreary County, 545 U.S. at 883 (O'Connor, J., concurring). Accordingly, I conclude that (section) 119 violates the establishment clause.”

“It bears emphasizing that a conclusion that the establishment clause prohibits the government from endorsing a religious exercise is not a judgment on the value of prayer or the millions of Americans who believe in its power. No one can doubt the important role that prayer plays in the spiritual life of a believer. In the best of times, people may pray as a way of expressing joy and thanks; during times of grief, many find that prayer provides comfort. Others may pray to give praise, seek forgiveness, ask for guidance or find the truth. "And perhaps it is not too much to say that since the beginning of th[e] history [of humans] many people have devoutly believed that 'More things are wrought by prayer than this world dreams of.'" Engel v. Vitale, 370 U.S. 421, 433 (1962). However, recognizing the importance of prayer to many people does not mean that the government may enact a statute in support of it, any more than the government may encourage citizens to fast during the month of Ramadan, attend a synagogue, purify themselves in a sweat lodge or practice rune magic. In fact, it is because the nature of prayer is so personal and can have such a powerful effect on a community that the government may not use its authority to try to influence an individual's decision whether and when to pray.”

Ultimately, there is massive misunderstanding between freedom OF religion and freedom FROM religion. America continues to turn her back on God.

See more articles on PeelLawFirm.com and insurance-coveragelaw.blogspot.com. Mr. Peel maybe available to speak to your church or club.

Find A Great Insurance Agent

The most common question I get from small businesses is, "How do I find the right insurance agent?"  The question often comes from very small insurance buyers and non-profits.



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SJC holds that Massachusetts Insurers Insolvency Fund is subject to 93A liability

In Wheatley v. Mass. Insurers Insolvency Fund, 456 Mass. 594 (2010), the Supreme Judicial Court of Massachusetts held that the Massachusetts Insurers Insolvency Fund is subject to suits for breach of Mass. Gen. Laws ch. 93A when it breaches Mass. Gen. Laws ch. 176D, § 3(9). (See here for an explanation of the statutory scheme.)

The Insolvency Fund is an entity created by statute to provide insurance coverage when the insurer on the risk is no longer in business.

The court held that it was subject to 93A liability to the same extent as insurance companies because of statutory language of 93A and 176D.

The Simmonds Business Insurance Index™ - May

The buyer's market continues in the property and casualty insurance marketplace.



The Simmonds Business Insurance Index™

May, 2010



Renewal Premiums: -10%

Renewal Coverages: Liberal Terms

Buyer's Outlook: Long-Term: Prices Flat





The Simmonds Business Insurance Index™was built to give insurance buyers a way to judge upcoming insurance renewals.  While different industries and regions experience different risk profiles, this index is designed to give a broad market view.





Comments for May:



I keep reading of continued insurer capacity and improving insurer profits.



The renewals I am aware of are still quite aggressive. Buyers continue to experience falling prices.



The last few months I thought prices would start to rise. Now I'm thinking, not this year.



If your renewal is 6 months out or more budget for a 5% increase and push your agent and carriers. I don't think you will be unpleasantly surprised.



I am also starting to read more about the pain the agent community is feeling due to the long, "soft" market. Declining premiums mean declining revenues for agents.

7 Hour Discovery Rule Interpreted

Justice Templeton has recently addressed the new so-called "7 Hour Rule" that limits examinations for discovery, J. & P. Leveque Bros. v. Ontario , 2010 ONSC 2312.

The issue on the motion was whether leave should be granted to the plaintiff to conduct an examination for discovery of the defendants for a period of time in excess of seven hours.

At paragraph 16 of her decision, Templeton J. writes: The interests of justice do not require that the concept of effective representation trump the concept of cost-efficient and/or expeditious justice or vice versa; but they do require that these factors be balanced both jointly and severally by all participants in the process.

She also adds at paragraph 20: I am also of the view that in circumstances in which the time limit agreed upon in the Discovery Plan has expired and counsel is at a crucial point in his/her examination on an issue central or germane to the case, flexibility ought to be brought to bear and that further time to a maximum of one hour to continue and conclude the examination would not be unreasonable in the circumstances.

At a paragraph 21: In cases involving multiple parties, I would expect the excess of one hour to be deducted from the time available for that same party to examine another party to the litigation. In other words, to ensure that effective and cost-efficient justice is realized, counsel must adhere to their agreement with respect to the total length of the examinations but where there is more than one party, a leeway of one hour past the allotted time for the examination of one of the parties would not be unreasonable provided it is recovered from the examination of another party. This
flexibility allows counsel to be effective and to prioritize but at the same time cost-efficient in
the overall process.

In conclusion she granted the plaintiff 19 hours to conduct the examination for discovery since it was a multi-party action involving a number of different issues.
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