Earthquake Insurance

1) Earthquake is not covered by standard property insurance policies.



2) Earthquake insurance is available in every county in the US (its just more expensive in some places).



3) Earthquake is the single most uninsured catastrophic exposure for most businesses.



4) I don't understand why all businesses do not buy earthquake insurance.

How to Buy Insurance Online

PASADENA, CA -- 06/25/10 -- When shopping for life insurance online, don't trade your personal information for a quote. That's the advice of one industry insider who knows the pitfalls of the Internet insurance game.

"One giant pitfall is that many companies and broker sites require that people enter their names, email addresses and phone numbers to get life insurance quotes," said Richard Reich, President of (www.lifeinsure.com) and 20-year industry veteran. "This leads to your email box filling up and your phone ringing off the hook as multiple agents contact you to buy policies."

Reich's advice includes:

* Make sure the insurance Web site you choose is not from a single insurance company - When you get a quote from a single insurance company, all you are getting is that one insurance company's idea of what you can pay. There is no competitive analysis that you can do with a single quote. Moreover, you could wind up getting inundated with emails and calls from that company to see you about that one policy.

* Check financial ratings and strength - The recent financial crisis hit a great number of the major insurance companies, so don't choose based on reputation alone. Check their financial strength ratings with the consumer advocate sites as well as financial ratings companies like A.M. Best. Many of the ratings of reputable firms may have changed during the recession.

* Be careful of rate quote "Bait and Switch" - Some companies might quote you the best possible quote initially based on incomplete information, and by the time they walk you through the policy, you may wind up with a much higher bill. If your quote does not take into account your height and weight and answers to basic health questions, then it's possible that you have been baited with an artificially low rate.

"Online consumers should always beware of methods designed to get their personal information," Reich added. "Insurance companies do not need your name, email address or phone number to offer you a genuine quote for life insurance, so don't fall for this."

About Richard Reich

Richard Reich attended Penn State University and has been in the life insurance business since 1991. He is licensed to sell life and disability insurance in all 50 states and the District of Columbia.

Rachel Friedman
Rachel@newsandexperts.com

Buying Life Insurance: How Much Is Enough?

By Kevin M. Reardon, CFP®

Buying life insurance can be a tricky proposition. While virtually everyone realizes that it is a necessity, purchasing the life insurance policy that will work best in your particular situation is not always the easiest thing to do.

Your life insurance needs often depend on a number of factors, including whether you're married, the size of your family, the nature of your financial obligations, your career stage, and your goals.

There are a number of approaches you can use to figure out how much insurance you should have. One method, called the "family needs approach," focuses on the amount of life insurance it would take to allow your family to meet its various financial obligations and expenses in the event of your death.

Family needs approach

With the family needs approach, you divide your family's financial needs into three main categories:

• Immediate needs at death, such as cash needed for estate taxes and settlement costs, credit card and other debts including mortgages (unless you choose to include mortgage payments as part of ongoing family needs), an emergency fund for unexpected costs, and college education expenses.

• Ongoing income needs for expenses related to food, clothing, shelter, and transportation, among other things. These income needs will vary in amount and duration, depending on a number of factors, such as your spouse's age, your children's ages, your surviving spouse's capacity to earn income, your debt (including mortgages), and whether you'll provide funds for your surviving spouse's retirement.

• Special funding needs, such as college funding, charitable bequests, funding a buy/sell agreement, or business succession planning.

Once you determine the total amount of your family's financial needs, you subtract from this total the available assets that your family could use to defray some or all of their expenses. The difference, if any, represents an amount that life insurance proceeds, and the income from future investment of those proceeds, can cover.

For example: John and his wife, Wendy, are estimating the appropriate amount of life insurance to buy on John's life. They first estimate their immediate needs as follows:

• Final medical expenses: $5,000

• Estate settlement costs, including funeral and burial expenses: $37,500

• Debts, including credit cards and mortgages: $317,000

• Emergency fund: $100,000

Subtotal: $459,500

Next, they estimate ongoing income needs, such as:

• Providing for their dependent children's needs for a period of time: $500,000

• Wendy's income needs until her retirement: $450,000

• Wendy's retirement income needs: $380,000

Subtotal: $1,330,000

Adding the sub totals together, John and Wendy estimate that, should John die, their family would need $1,789,500. They then determine that assets available to offset their needs include:

• Bank savings: $40,000

• Investments: $220,000

• Retirement assets: $250,000

• Existing life insurance on John's life: $300,000

Subtotal: $810,000

The difference between their family needs ($1,789,500) and their available assets ($810,000) equals their life insurance need ($979,500).

Review your coverage

Trying to figure out how much life insurance is enough isn't always easy, and that amount will likely change with your changing circumstances. By examining your family's anticipated expenses during various periods after your death, you get a more realistic estimate of your life insurance needs.

Unfortunately, many people underestimate their insurance needs and are underinsured. Often, the purchase of life insurance is based on cost instead of what's needed. By the same token, it's possible to have more insurance than you need. You may have purchased a large policy during a particular point in your life, and then didn't adjust your coverage when your insurance need was reduced.

Both of these circumstances are reasons to review your insurance coverage periodically with your financial professional. Doing so can reveal opportunities to change your levels of coverage to match your current and projected life insurance needs.

Kevin Reardon, CFP® is a financial planner and president of Shakespeare Wealth Management, Inc.® in Brookfield. He is also a member of the National Association of Personal Financial Advisors (NAPFA).

Car Loans and Credit Life Insurance

by Steve Cypher on Thursday, June 24th, 2010

If you plan on financing your next vehicle with auto loans for bad credit you should know what credit life insurance is and if you really need it.

Where we fit in

If you’re reading this, you may be one of thousands of Americans who find themselves in the position of having to finance their next car with a bad credit auto loan. As part of our business at Auto Credit Express, we have helped thousands of applicants raise their credit scores and reestablish their car credit by filling out our online car loans with bad credit loan application and financing a vehicle with a bad credit car loan through one of our affiliate dealers. By paying off the loan in a timely manner, these buyers have a good chance of starting a new chapter in their lives.

The alternative, buying a vehicle from a Tote the Note, We Finance Everyone car dealer, can be a problem because these dealers don’t report payments to any of the credit bureaus. On the other hand, taking out a loan with a bad credit lender and choosing a vehicle that’s too expensive can also create problems since this can stretch your budget and even result in repossession.

One thing we have learned from experience is that the key to a successful bad credit car loan means focusing on the basics. In this case, it means understanding both the pros and cons of credit life insurance.

Credit life insurance

Although this topic is not as much of a hot button as service contracts, it really should be. Credit life insurance is a form of term life insurance. Term insurance refers to an insurance policy that is in force for a fixed period of time and cannot be renewed. It is also a form of life insurance that builds no cash value.

In addition to being a term life policy, credit life insurance is also what is known as a “decreasing” term policy. This means that the policy is designed to cover the amount of the loan. As the loan is paid off, the loan balance decreases and the amount of life insurance also decreases to match the amount owed on the loan contract.

Is credit life insurance worth the cost?

That is a decision that is entirely up to you. Here are the facts:

Pros:

1. Peace of mind – it will pay off your car if you should die before the loan contract is paid off.
2. The payment is added in and becomes part of your car payment, so there’s no individual insurance premium to pay.
3. Your estate won’t be encumbered with the loan balance or loan payments if you die before the car is paid off.

Cons:

1. Although the cost of credit life insurance is sometimes regulated by the state, it can be much more expensive than taking out a separate term life insurance policy for the loan amount.
2. In addition to paying the insurance premium, you are also paying interest on the insurance premium.
3. If you are single and have no dependents, you probably don’t even need life insurance. Even if you do have a family, they are not required to pay off the loan unless their names are also on the account.
4. Most credit life insurance policies don’t cover pre-existing medical conditions and if you turn 70 during the policy period, coverage often stops at that time.

How to purchase credit life insurance

If you decide to buy credit life insurance, you usually have to do it at the same time you take out your car loan. The monthly premiums are based upon the original loan balance and the cost of the policy is added to the finance contract and the additional amount is added to and becomes part of your monthly car payment.

Beware of scams

In most states, a lender can’t require you to buy credit life insurance in order to be approved for a loan. If the car salesman insists this is the case, check with your state insurance commissioner before signing on the dotted line. In most cases, you are also allowed to cancel the insurance at any time during the term of the contract. Sometimes this results in a lower monthly payment, although in many cases either the amount is refunded to you at the end of the contract in the form of a pro-rated payment or an earlier payoff date.

As we see it

Whether or not you take credit life insurance is a decision that you will have to make. If you have a family and are worried that they might not be able to make payments on your car if you die (and their name also appears on the contract), you might want to look at the costs of term life insurance before you sign on the dotted line for credit life insurance as part of a car loan.

At Auto Credit Express we have helped literally thousands of people with bad, blemished, bruised and tarnished credit buy cars and reestablish their credit at the same time. Our nationwide network of affiliate dealers specializes in bad credit car loans. Our web site can help you determine how much car you can afford and, unlike other sites, our toll free customer service number is listed on every page, in case you have any additional questions.

So why not begin the process right now by filling out our secure online bad credit car loan application to see what we can do for you.

Redundancy and Fail-Safes Part 2

What do you do when a service you depend upon evaporates?



Think of all the parts to your business.  Think of the suppliers, vendors, services, contractors, and other cogs that mix together to create the value that is your business.



--You lose your electricity.  What do you do?



--You lose your water supply.  What do you do?



--Your key supplier sends an email that they are going out of business.  What do you do?



I faced a similar situation last week.  A software system I had grown dependent on announced that they were bought out by Twitter and that the service I used may be discontinued.  Luckily, they gave me notice so that I could search out a new service.



Had they just turned out the lights, I would have been OK as I keep backups.  It has got me thinking though.



How about your business?  Were can you build redundancies?

More on Crinson v. Toronto, 2010 ONCA 44.

Two days ago I blogged on a comment left from an Indian lawyer to my blog of February 27, 2010.

That discussion revolved around the Ontario Court of Appeal's decision in Crinson v. Toronto (City), 2010 ONCA 44.

The case has received attention in an article by Stuart Huxley, legal counsel, City of Ottawa, in a case comment printed in the Municipal Liability Risk Management journal, (2009-10) 11 Mun. L.R. Mgt. (Volume 11, Number 4).

In that article, Mr. Huxley helpfully reviews the history of the Court of Appeal decision and noted that the trial judge had found that the plaintiff was in the hospital for five days after the trip and fall, which included surgery, and during that period was on morphine and Tylenol. The plaintiff was drowsy and "out of it". Following his discharge from the hospital, the plaintiff took Percocets for two weeks. Despite this medication, the trial judge held that the plaintiff was not so incapacitated that he was unable to arrange for the required notice to be given to the municipality. Thus the plaintiff's claim was held to be statute barred by the trial judge.

The Court of Appeal reversed. The Court of Appeal held that there was ample evidence to support "reasonable excuse".

Mr. Huxley concludes his article with the realistic comment that failture to give notice as required by the Municipal Act, 2001 months after an accident will require a municipality to consider whether to push the notice defence. Questions that municipalities will continue to face will be whether or how a municipality should defend such actions or whether they should just concede and pay.

Identifying at High Risk of Stealing from You

Some employees steal.  How do you identify those most likely to steal from you?



CAMICO Mutual Insurance is a specialty insurer for accountants.  I recently listened to an excellent podcast by Ron Klein, J.D., CFE, Vice President-Claims Counsel, that covers the basics.



Go Here For CAMICO's Podcast Page - go about 2/3 of the way down the page for the high risk employee podcast.  You can listen to it right at your computer.

Who Knew? STOLI is not a Pastry!

I read about ten insurance newsletters a day so I can keep up with what's going on.



This morning the AM Best news had a piece that New Hampshire has banned STOLI.



To me, STOLI is a bread pastry that my brother-in-law prepares every Christmas, and he is from New Hampshire.  The AM Best news worried me as his STOLI is one of my favorite parts of Christmas.



Turns out STOLI is "stranger owned life insurance."  As I spend little time in the world of life, I had never heard of this. (When anyone comes to me with big life insurance questions I send them to my compatriot, Glenn Daily, who has forgotten more about life insurance than I have ever known.)



Well, STOLI is high finance.  Even to getting TV guy Larry King sucked in.



Investors convince wealthy old folks to buy big life insurance policies and then flip them for payouts.  Larry is not so happy with his $1.4 million payday.



Kiplinger's story here.



Who knew?

Benefit of the Doubt has to be given to the Victim

It is not often we get comments on our blog. It is even rarer when we get a comment from someone who is outside Ontario, much less Canada. So it was good to read the comment from Ms Sindhu Yadav of Choir de Law Pvt. Ltd, India (and who I presume to be a colleague lawyer), to my February 27, 2010, blog on the Ontario Court of Appeal's decision in Crinson v. Toronto (City), 2010 ONCA 44.

The title I gave to that blog entry was "Ignorance of the Law can be a Reasonable Excuse", which perhaps showed my concern with the Court of Appeal's decision. However, the comment from Ms Sindhu Yadav of India was, "The decision of Court of Appeal is highly welcome. In such cases the maxim "Ignorance of law is no excuse" is defeated. Benefit of doubt has to be given to the victim."

That is an interesting comment. Please keep the comments coming...

Pet Insurance

I bought pet insurance the other day.



It dawned on me that if our 1 year old puppy got sick, the Empress (my wife) would, without pause, spend $10,000 on a cure.  Knowing myself as I do, I would have a problem spending such money on "the beast."



Expressing financial concerns to the Empress when our dog was sick would quickly land me in the dog house with little hope of extrication - plus there would still be a vet bill.



So, for $250 a year I've protected myself from being the heal.  Pretty smart, hu!



Here are the variables I found in pet insurance policies:

• Deductible - per event or per year.

• Copay - most seem to pay 80% of the vet bill.

• Preventative - some plans cover preventative treatments, some do not.

• Annual limit - some policies limit the amount paid each year.

• Lifetime limit - some policies limit the amount paid over the pet's life.

• Preexisting conditions - some policies seem to consider conditions in a prior policy period as excluded in subsequent years.  Unimaginable to me but there was mention of this in several places where policyholders commented.

I am not sure that pet insurance is a great deal.  I'm not buying it because I am worried about a few vet bills (I bought the $1,000 annual deductible plan).  I am buying it solely because I now do not have to have a financial conversation with my wife if the dog ever gets sick or hurt.  I will be able to focus 100% on what is best for the dog and us - without being pissed off about a $10,000 vet bill.

By the way, why isn't my local independent insurance agent trying to sell me this policy?

More on Miller's public availability

In my last post I commented that the Insurance Library is the only local library I know of that subscribes to Miller's Standard Insurance Policies Annotated.

It turns out, however, that the Norfolk, Worcester, Hampden, and Hampshire County law libraries have Miller's in hard copy. Some county law libraries may also have it as part of their Westlaw subscription.

Insurers, Post Your Policies

Every insurance company should post every policy form on the Internet - every policy form and every endorsement.  Every application form too.



These are not state secrets.



For you green-ees out there, how about giving insureds the option of getting policies by pdf file?  Save a few trees (if you're so inclined).



Now I realize that my life is different from most out there.  I deal with hundreds of insurance buyers, well over 2,000 policies, multiple agents, and multiple insurers.



It sure would be nice to be able to get easy access to policy forms without having to ask agents, who ask underwriters, who ask clerks, who ultimately send it to the agent, who sends it to me.



While I'm reshaping the insurance world...



Why not print line numbers on insurance policies so when we are discussing coverage its easy to be at the same place?  The old fire policy has numbered lines.  Why not the new CGL?



How about more coverage examples within policies?  Chubb started doing that in the 1980s.



How about policies without 150 endorsements?  Why not just update the policy forms.  It's not like anyone is going to a print shop to have these things printed out.



How about spitting out multiple options when you generate a quote?  How about a proposal from an insurance company that actually suggests coverages to consider?  "Why not consider blanket property insurance?  The extra premium is $xxx."



Why do I have to ask for $1,000 deductible, $2,500, $5,000 and $10,000?



Why not just quote a $5m, $10m, and $15m umbrella automatically?



Instead of just quoting $250,000 of employee dishonesty coverage, why not go ahead and quote options to $1,000,000 with 5 different deductibles?



The world of insurance does not need to be mysterious.  Put information out there and let your customers decide.

Rule 31.05.01 - Extending the Seven Hour Discovery Rule

Those of you interested in the interpretation of the new rule 31.05.01, which provides a seven hour total limit on discovery, may wish to review Osprey Capital Partners v. Gennium Pharma Inc., [2010] O.J. No. 1721 (S.C.J).

Master Glustein granted leave to the plaintiff to exceed the seven hour limit and permitted it seven hours for each defendant.

Some of the factors considered were:

1. The pleadings claimed $1.5 million in damages;
2. A review of the pleadings revealed complex issues of fact and law; and
3. There would be unfairness if the defendants each had seven hours to examine the plaintiff (for a total of 21 hours) and the plaintiff was limited to seven, or approximately two hours for each defendant.

Master Glustein also held that it is not necessary for counsel to attempt examinations prior to bringing a motion to extend time. In addition, the Master did not agree that counsel must identify key documents and issues in the discovery as part of the discovery plan.

Packing a "Go Bag"

Go Bag

You never expect that middle of the night phone call. They tell you something has happened to a loved one.

The first priority is to get to the hospital, and get there fast. With hazard lights flashing, you race through the cool night air and fly down empty interstate lanes.

The next task is not to leave them alone there. However, that presents a problem after a day or so. You did not stop to grab clothes, or a change of underwear. You don’t even have your needed medication or your toothbrush. You don’t want to leave at this point. The last thing you want to do is send a friend by your house to rifle through the underwear drawer and hope they also find the right prescription you need.

It is this problem that can be prevented by packing what has been called a “Go Bag.” This is usually a small tote, duffel bag or backpack that you have hanging in your closet.

It should contain at least the following:

Toothbrush and toothpaste

Two days medication or vitamins you take

Warm socks

Change of Underwear

Warm jogging suit or sweats

Hairbrush

Deodorant

A book you have been meaning to read

Power of Attorney for Health Care

Living Will

Phone number of distant relatives you may wish to call

And, it is handy to have this “Go Bag” if you have to go to the hospital for yourself as well. After all, no one wants to wear the hospital gown.

I hope you take this step toward preparedness. And, if you have not drafted your will, living will, power of attorney for healthcare and general power of attorney, I encourage you do that now—when you don’t think you need it. If you want till you do need it, it is likely too late.

Westlaw acquires Miller's

On June 1 Miller's Standard Insurance Policies Annotated moved from Lexis to Westlaw.

Miller's is a quirky but great resource that lists cases by the policy endorsement they interpret. It also lists similar coverage provisions (sort of like a thesaurus for insurance endorsements).

Miller's is available at the Insurance Library (another one of my favorite resources) but I'm not aware of any other local library that carries it.

Grace By Agents

I am in the middle of a dozen or so bid projects.  The results are coming in.



To the agents out there.  Yelling at me when you lose does not make me want to do business with you.



I don't think you are cool and I am not intimidated.  I will give you some information but realize that your pissy attitude does not help your case at all.



The buying decision is made for many reasons.  Price and coverage are a part of the equation.  Relationships are important too.



If you are an agent and on the losing end of the equation, have some grace.

If a City is going to fix a sidewalk, it has to do a good job

The Ontario Court of Appeal says that the City of Burlington was partly liable for a woman's broken leg because the City's sidewalk allowed for the pooling of liquid on the sidewalk which caused her to slip and fall. Cartner v. Burlington (City), 2010 ONCA 407.

The City had tried to fix the cement sidewalk by grinding down a trip ledge. In the process, the City reversed the drainage of water and liquids from the sidewalk. After the grinding of the sidewalk, water and liquids pooled in a corner of the sidewalk.

The Court of Appeal also said the correct test is the "but for" test, namely that "but for" the pooling of water caused by the reversed drainage, caused by the grinding down of the trip ledge, the plaintiff would not have fallen. The City should have replaced the concrete slab instead of grinding it down since this caused a greater or additional problem.

According to the Court of Appeal, the trial judge was correct in concluding that the neligence of the City was a "cause" and that it did not have to be the only "cause" of the plaintiff's injury.

I wonder if the "but for" test, however, was the correct test in this instance? It seems to me it could also be said that the accident would not have occurred "but for" the plaintiff walking along the sidewalk and not stepping over the pooled liquid, yet there is no mention in the judgment about contributory negligence. Doesn't this make the City an insurer for those who have trouble stepping over defects on its sidewalk? Is that expense the City taxpayers should have to bear?

Predictions for the Future

Predictions for the Future

The future is coming at us much faster than most of us are prepared for. Here are a few things that I think will be changing in the next few decades.

1. Driving. I think that all interstates will be mandated to be equipped for cars that have automated driving capability. Essentially, some cars will have the ability to drive themselves. This will be rolled out incrementally, and the incentive will be a lane of travel only for auto-drivers. Magnets impeded in the center of the lane can provide an all-weather way for cars to be centered within the lane. Further, radar proximity sensors will keep you very close to the car ahead and behind, which reduces drag and therefore, fuel or battery consumption.

2. Highway Safety in General. As a personal injury lawyer that handles accident cases every day, I see carnage caused by head-on impacts. I have said for years that our descendants in 2050 and later will be amazed at us. They just won’t believe that we drove 87,000 lb. tractor trailer trucks one way, facing school buses and passenger cars coming the other way–separated by a mere 11 inches of yellow painted stripes!

3. Technology implanted in humans. This is actually already here now. Smart chips have been implanted in dogs for over 20 years. They are currently being implanted in human trials. The favored placement is within the fatty layer between the thumb and index finger on the right hand. Many will recall the Bible’s prediction in this area: " . . . and cause that as many as would not worship the image of the beast should be killed. And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads: and that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name." -- Revelation 13:15-17.

4. Cashless society. Cash is on the decline. Already, I have traveled abroad without using cash. Debit and credit cards allow use regardless of what country you are in or currency system they use. Locally, at Kroger, and other retailers you hand swipe a card that has data on it that tracks your purchases. They tie an incentive to save on groceries and gas to use it. Exxon gas stations you hand wave in front of scanner to do your business with “Speed Pass.” This all strikes me as great training for a mark within your right hand with which to trade.

It is important to realize that money is not inherently evil, but instead the “love of money” is. Similarly, it is not a chip that is evil, it is the eventual use by a future evil government. Thus, I am not predicting the end of the world or the rise of anti-Christ. However, technology now exists that seem to lay the groundwork for much of what we see predicted in the only reliable text, The Bible. Is your name written in the Lamb’s Book of Life? One day in your future, that will be the ONLY thing that matters to you. Turn to Him today.

Rate Locks and Renewal Agreements

I often try to negotiate a rate agreement when I am working through an insurance renewal bid project for a client.  I want an agreement with the underwriter that the renewals are going to be handled in the same "Spirit" as the bid.



Here is a response one underwriter gave:



"Our methodology would be the fact we have our Accelerated Renewal program where our clients who qualify are given the opportunity to agree on renewal terms well in advance of the renewal date.



"This process can assist our clients need to budget for their insurance expenditures well in advance of the actual renewal date.  We can negotiate our rate need (plus or minus) based on loss experience over the policy year or the industry trending at that time.



This  program allows us to process  the renewal based on expiring/endorsed exposures without the client providing applications and/or supplements."



This is a fine compromise.  We get to know renewal pricing early so that we can decide what to do - stay with the carrier or seek alternative proposals.  Fair enough.

Misfeasance in Public Office

St. Elizabeth Home Society v. Hamilton (City), [2010] O.J. No.1515 (C.A.)

This was an Appeal by the St. Elizabeth Home Society of the dismissal of its action against the City of Hamilton and the Regional Municipality of Hamilton Wentworth.

St. Elizabeth Home Society operated a retirement home in Hamilton. In early 1994, the City received letters alleging substandard care of residents at the home. These letters prompted a review of the Society’s practices by an independent consultant, who delivered a report in December 2004 strongly criticizing the health care practices and management style of the operators of the home. Shortly after the report was issued, the Municipality issued an Order to Comply against the Society alleging that it had violated a Municipal by-law with respect to admission of residents, nursing care, reports and records, and food. A City counselor leaked the Order to Comply to local newspapers, which in turn published many sensational stories about the home.

The primary issue in this appeal was whether the judge erred in dismissing the claim with respect to misfeasance in public office.

The trial judge held that there was no intention by Municipal employees to act beyond their powers and abuse their authority, there was no evidence that the defendants were aware their conduct was unlawful and likely to harm the plaintiff, and there was no knowledge by any of the defendants that the issuance of the Order to Comply would do anything other than benefit the plaintiff in improving health care to the residents. Their intent was not to harm the home but to assist it in its operation. The Court of Appeal confirmed the trial judge's decision.

In addition, the Court of Appeal held that the appeal with respect to negligence must fail because neither Municipality owed a duty of care to the Society; their duty was a public law duty to the residents of the home, not to the operator.


This case is useful in those defending Municipal and public authorities claims, in that it confirms that the duty is to the public at large, as well as the elements of misfeasance in public office.

Massachusetts Appeals Court holds that insured waived attorney-client privilege when it brought suit against insurer

In Global Investors Agent Corp. v. Nat'l Fire Ins. Co. of Hartford, 76 Mass. App. Ct. 812 (2010), the Massachusetts Appeals Court held that an insurer who is a defendant in an an action alleging that it breached its duty to defend may depose the attorney who represented the insured in the underlying action.

The insureds notified the insurer of the claims against them on May 2, 2002. On July 30, 2002, before the insurer had made a determination about whether it had a duty to defend, the insureds settled the underlying claims. The insureds then sued the insurer alleging breach of the duty to defend. The insureds sought legal fees and costs and consequential damages on the grounds that they were forced to settle the underlying suit on unfavorable grounds and that they lost claims and rights in the underlying suit.

A Superior Court judge granted summary judgment to the insureds on the issue of the duty to defend, and the parties proceeded to trial on the issue of damages. The insureds, dissatisfied with the damages awarded, appealed after trial. They argued in part that the judge impermissibly allowed evidence protected by the attorney-client privilege.

The Superior Court had allowed the insurer to depose the insureds' attorney in the underlying claim concerning his perceptions, recollections, and analysis of the insureds' defenses and strategies before during and after the underlying mediation.

The Massachusetts Appeals Court agreed that the insureds had waived the attorney-client privilege. It held that their claim for consequential damages relied on the relative merits and value of the underlying case, and the only source of that information was their attorney.

This is insurance

Time Magazine published an article about "health-sharing ministries," in which Christian families pool their resources to pay one another's medical costs. Although the article discusses the difference between this system and "traditional" insurance, this system is insurance at its most basic.

Insurance is nothing other than a bunch of people getting together to pool their risk. Everyone puts in a set amount of money, perhaps based on the actual risk to the individual participants or perhaps a flat fee. When the thing insured against happens -- a fire, a health event, a car accident -- then the participant to whom it happened receives money from the pool to cover their loss.

Things are complicated by the fact that insurance companies are often multinational corporations that make or lose a lot of their money from investments funded by the premiums. But that does not make their basic function -- pooling risk -- any different.

Should You Buy Collision Damage Waiver When Renting A Car?

Renting a car? Buy collision damage waiver insurance offered by the rental car company. After an accident you want to toss the keys on the rental car counter saying, "See you around boys!"





Doing anything else will lead to hassles far in excess of the $20 a day you'll pay for the insurance.

Green Insurance Coverage

I'm starting to ask property insurers to offer coverage to pay to replace a non-green building with a green building, after an insured loss.



Most "main-line" insurers are not offering this yet.  They will, if enough people ask for it.

Bankers Bond - Employee Cancellation

I work with a great many banks, helping them buy and manage insurance.



Today I reviewed a new policy for a client.  It's a policy from a new bank insurer, FinSecure.



I have long railed about the cancellation provision in all bonds that ends a bank's insurance coverage when a bank officer learns of a past dishonest act of an employee.



So, ABC Bank's CFO is having lunch with a 45 year old teller who has won employee of the month.  During the conversation, the employee reveals that at 15 he stole a fishing lure from a sporting goods store.



At that moment, coverage for dishonest acts by that employee stops.  If, a month later, it is found that the teller has stolen from the bank, coverage will be excluded.



FinSecure is a new insurer, part of the Berkley Group.  Their bond limits the exclusion to dishonest acts prior to employment, not related to their employment, where the amount in question is less than $2,500.



Bravo FinSecure!



Other insurance companies take notice.

Actual Cash Value vs Replacement Cost

Two ways most insurance policies value property...



Replacement cost is the cost to buy the item lost new.  Its the cost to rebuild the building with current cost of materials and the current cost of labor.



Actual cash value (ACV) is usually defined as replacement cost minus depreciation.  It also can be thought of as the market value of an item.



The replacement cost of a 4 year old TV may be $1,500 while the actual cash value may be only $100.

LONG AGES LONG AGO

Evolution v. Creation part ____ of 12

LONG AGES, LONG AGO

“The days of our lives are seventy years; and if by reason of strength they are eighty years, yet their boast is only labor and sorrow; for it is soon cut off, and we fly away.” ~Psalm 90:10

According to Scripture, Methuselah lived to be a staggering 969 years old. Many others in his time had children when they were several hundred years old. This ancient longevity is one of the allegedly “far-fetched” claims of Biblical creationists.

But, is it really that unlikely? Babylonians, Greeks, Romans, Indians, Sumerians, Chinese and other cultures talk of much longer ancient life spans in ancient times, as well. Many tales explain that a great flood shortened these spans. If this happened just as the Bible explains, then these stories would be preserved in common memory and tradition all over the world. This is precisely what we find. What does Scripture actually teach about ancient longevity.

God created Adam and Eve in a perfect state; uncorrupted by sin, sickness and physical death. It has been suggested that they had the ability to live forever here on Earth. They were certainly provided food, water and all they would have needed in the Garden of Eden.

He also provided them only one rule. (While religions of today maybe criticized by some as having too many rules, originally there was just one.) God warned them not to eat from the Tree of the Knowledge of Good and Evil. The consequences were also given: they and their descendants would die (Genesis 2:16–17).

With Satan’s diabolical help, our great-great-great (and so on) grandparents rebelled and they changed as a result (Genesis 3). Spiritual death happened immediately, with illness and eventual physical death to follow. Their own firstborn child, Cain, became the world’s first murderer. One of their other children became the first victim. The wages of their sin was, indeed death--both physical and spiritual. This is the bad news, and John 3:16 contains the good news (“gospel” in Greek).

However, sin’s effects on Adam limited his life span to 930 years. The ten patriarchs (excluding Enoch) who preceded the Great Flood lived an average of 912 years! Exceedingly long, when compared to our current spans--but dreadfully short, compared to forever.

Amazingly, for some 1,500 years after creation, most men either could have actually talked to the first man, Adam, or personally knew someone who did! Adam’s own grandsons could have babysat young Noah!

Ages of the Patriarchs from Adam to Noah (Pre – Flood)

Patriarch Age Bible Reference

1 Adam 930 Genesis 5:4

2 Seth 912 Genesis 5:8

3 Enosh 905 Genesis 5:11

4 Cainan 910 Genesis 5:14

5 Mahalalel 895 Genesis 5:17

6 Jared 962 Genesis 5:20

7 Enoch 365 (did not die of old age) see Genesis 5:23

8 Methuselah 969 Genesis 5:27

9 Lamech 777 Genesis 5:31

10 Noah 950 Genesis 9:29

During the 1,000 years following the Flood, however, the Bible records a progressive decline in life span, from Noah who lived to be 950 years old until Abraham at 175. Since then, a few make it to around 120, but most die closer to half of that.

Ages of the Patriarchs after Noah to Abraham (Post – Flood)

Patriarch Age Bible Reference

11 Shem 600 Genesis 11:10–11

12 Arphaxad 438 Genesis 11:12–13

13 Shelah 433 Genesis 11:14–15

14 Eber 464 Genesis 11:16–17

15 Peleg 239 Genesis 11:18–19

16 Reu 239 Genesis 11:20–21

17 Serug 230 Genesis 11:22–23

18 Nahor 148 Genesis 11:24–25

19 Terah 205 Genesis 11:32

20 Abraham 175 Genesis 25:7

As a lawyer, I sometimes use our Tennessee State Law to set out the average life span. Not surprisingly, our current average life expectancy remains between 70 and 80 years. The veracity of the Bible is further confirmed by this fact, even though Psalm 90 was written over 3,000 years ago.

So, what changed so permanently at the Flood? Tropical foliage and a humid environment gave way to an ice age, which led eventually to what we see today. The land mass separated and concentrated our flawed DNA in groups which have recognizable characteristics.

What has not changed is more remarkable. We do not have to teach our children to lie, cheat and steal. Their sin nature takes care of that. We have to teach them to obey and choose the right path. We must encourage them to seek and to find God through the Way, His Son, Jesus.

Jesus, in the Book of John, told us He came into the world to testify to the Truth. The universality of death and suffering should push us towards Him, not away. We know at every funeral that death is an intruder into this world, whether at 9, 90, or 900 years of age. Jesus conquered death by rising from the dead. (see Isaiah 25:8; Psalm 49:14–15; 1 John 5:13). Turn to Him, so that one day you can ask Methuselah what it felt like to live for 969 years.

All prior articles in this series can be found by searching my blog at insurance-coveragelaw.Blogspot.com.

Serving a complaint on an out-of-state insurance company

The Massachusetts Division of Insurance moved recently. The new address for serving a complaint on out-of-state insurers is:

Massachusetts Division of Insurance
1000 Washington Street, Suite 810
Boston, MA 02118

The agent for service of process is the Division generally, but Stacy Siegan is the person at the Division in charge of accepting service.

Facebook in Litigation

Is the pendulum swinging back away from the use of Facebook in litigation?

In Schuster v. Royal & Sun Alliance Insurance Co. of Canada, [2009] O.J. No. 4518 (S.C.J.), the defendants sought an ex parte Order for preservation of the plaintiff's Facebook account, followed by a motion for production.

Justice Price refused to make a preservation Order, holding that the defendant had not shown that it would suffer irreparable harm if the Order was not granted. Justice Price assumed that if the plaintiff's Facebook page contained relevant documents it would have been listed in her Affidavit of Documents. With respect, given the relatively recent development of Facebook, I would suggest that many counsel simply do not consider whether their clients have Facebook accounts, and, if so, whether there are relevant documents to be produced. Justice Price held that the mere nature of Facebook as a social networking platform is not evidence that it contains relevant information.

Facebook motions have become a useful tool for defence counsel in many cases and courts were supportive of them in several decisions; however, this decision could signal that courts are no longer as willing to make orders for production as they had been in the past.