Recently, the Principles Based Valuation approach (PBV) has enjoyed considerable support and momentum within the life and health insurance industry. Instead of prescribed methods, assumptions, and tables for statutory reserves, they would be computed based on actuarial judgment in accordance with standards of practice. A key requirement would be peer review of such reserves by another professional actuary, before reserves were officially released.

Many actuaries have already spent considerable hours of professional time in developing the framework for a viable valuation structure. Our primary trade association, the American Council of Life Insurers, has endorsed the approach in late 2005. However, one regulator has referred to the Principles Based Valuation support as a "steam roller." This should be the time for small insurers and others to voice their reservations about the entire Principles Based Valuation proposal. Strict opposition may not be appropriate, but key questions should be asked.

Reservations

These reservations include:

1. Is there a burning need for Principles Based Valuation? Supposedly, it would reduce redundancies inherent in current statutory reserve requirements. The 3 or 4 industry groups who seem most concerned with alleged redundant statutory reserve levels are: High amount competitive term writers (through requirements for deficiency reserves); universal life writers whose minimum guarantees result in policies that are defacto term (and who may not hold reserves at all, or possibly not even half the cost of insurance after account values have run out); term insurers who have designed policies creatively to lessen reserve requirements of Regulation XXX; and variable life and annuity writers who apparently believe the New York Insurance Department's standard scenario to cover minimum general account guarantees is too high a reserve basis. There may be insurers of other products also. Mostly, there are large companies, but small insurers may also be part of this constituency. However, do these industry groups represent a majority of insurance companies?

2. Would adoption of Principles Based Valuation lead to still lower statutory reserves, even without the above portions, and bring their prevailing levels closer to reserves under generally accepted accounting principles? Would this be desirable from a solvency viewpoint?

3. Some small companies are concerned about a "level playing field." Large companies, willing and able to pay for an actuarial peer review, could hold smaller statutory reserves under Principles Based Valuation. Would this provide them an unfair competitive advantage?

4. Statutory reserves under Principles Based Valuation need continued qualification for federal income tax purposes. Proposals so far have called for a cash value floor as a minimum reserve, in hope that this would protect tax qualified status. However, this floor would not apply to term life or health insurance reserves. Also, the Treasury has sometimes implied that they will not allow reserves that do not correspond to a table specifically mentioned in National Association of Insurance Commissioners regulations.

5. The New York Insurance Department recently proposed a model law and regulation to implement Principles Based Valuation. Some aspects of it may have merit. For example, it seems to require sufficient margins in reserves that would keep Principles Based Valuation liabilities more conservative than under generally accepted accounting principles (if not very close to current statutory levels). Also, the model law describes Principles Based Valuation as an option, while expressing no preference for formulaic versus stochastic calculations.

6. On the other hand, at least one objection could be raised to New York's proposal. For testing reserves with minimum reserve scenarios (gross premium reserves), they seem to propose that minimum test reserves use a Treasury rate of interest, regardless of the company's investing rate of return. New York had previously demanded that these minimum or best estimate reserves be increased to 7.5 percent as official tests. This latter seems sufficiently conservative. An additional requirement for a Treasury rate of interest when a company is earning more than this (even in the current low interest environment) seems unrealistic.

7. Some regulators have expressed concern that, under Principles Based Valuation, small companies, left to their own devices, would hold unacceptably low reserves. If peer reviewing actuaries, for these purposes, are deemed agents of regulators, and their responsibilities are sufficiently defined, this could answer their concern.

8. Some proponents of Principles Based Valuation have referred to the recent bankruptcy of Equitable Life in the United Kingdom. They seem to claim that this demonstrates the need for Principles Based Valuation in the United States, so that actuaries can use all their professional judgment in setting sound reserves.

This argument seems weak. For many years, in Britain and other countries, actuaries have been setting reserves under an equivalent of Principles Based Valuation. Peer reviews or adequate peer review standards may have been lacking. However, Britain seems to be backing away from Principles Based Valuation, so as to hold actuaries to very strict oversight from a government Board. In effect, the entire actuarial profession in that country received a black eye (deserved or not) from existence of defacto Principles Based Valuation.

9. One implied argument for Principles Based Valuation, not so far explicitly stated, is that its adoption will raise the status of actuaries. This would come at a time when the profession is very concerned about its image, its status in the general field of risk management, and concern over inroads to actuarial prerogatives from other professions.

First, reserve calculations have always been tied to unique actuarial expertise. Also, actuaries design current formulaic reserves and reserve standards. Society of Actuaries members, both from industry and departments, have prepared new reserve tables as experience has evolved. Actuaries have designed guidelines and reserve standards for even more complex products.

In other words, even before actuarial judgment and peer review have been emphasized in the new proposal, actuaries have always been intimately involved with statutory reserve developments of all sorts.

10. One primary concern over Principles Based Valuation is the belief of some actuaries that stochastic processing techniques should be used in all reserve calculations. They claim that stochastic is inherently superior to formulaic approaches, such that actuaries should be forced to justify why they don't choose the stochastic approach.

The dictionary defines stochastic as "a process involving a randomly determined sequence of observations, each of which is considered as a sample of one element from a probability distribution." The key words here are "probability distribution." The distribution is chosen in advance and is itself an assumption. It may be based on statistical experience and professionally compiled, but it is still an assumption.

Proponents have stated that stochastic calculations can capture the outlying risks inherent in many coverage's i.e. very low probabilities, but extremely damaging if actualized. Again, these low probabilities themselves are assumptions within an overall distribution.

All or almost all formulaic reserve scenarios call for alternative calculations. The greater the tail risk, the more likely that large numbers of alternative reserves are needed to capture the range of outcomes. This could well result in higher reserves. The more numerous the benefit options, and the more extensive the variety of policyholder behaviors that could affect results, the greater the number of alternative scenarios that should be tested. This involves sound actuarial judgment. In short, this does not seem to demonstrate the superiority of the stochastic approach.

11. A key element of the current stochastic approach is the Conditional Tail Expectation (CTE). It involves use of reserves based on the arithmetic average of the desired number of worst-case scenarios. In other words, "65CTE" uses the average of the 35 worst-case scenarios. An "80CTE" uses the average of the 20 worst-case scenarios. This means that "80CTE" would have worse results and higher reserves than "65CTE."

However, these worst-case scenarios are themselves assumptions within the probability distribution. Many adverse scenarios, unless weighted by a probability, would mean insolvency of the company. It would only make sense to use them if so weighted. Actually, true worst-case scenarios involve:

a. All policyholders dying.

b. All policyholders under health insurance entering nursing homes for 20+ year stays.

c. For variable coverage, the stock market tumbling to zero and all policyholders transferring to the general account and then dying.

No one uses these scenarios, because they mean the breakdown of our society.

12. Some proponents of Principles Based Valuation have stated that small companies could request exemptions from stochastic processing requirements. However, as stated above, sufficient justification for the inherent superiority of this approach has not been provided. Only then could stochastic be touted as a required replacement for the traditional formulaic option.

13. It is a legitimate concern that these proponents could insert requirements for use of stochastic processing into Actuarial Standards of Practice.

14. In regard to the stochastic processing approach, some actuaries have stated, "If we don't do it, somebody else will." In other words, if actuaries don't uniformly adopt the stochastic approach, other statisticians or non-actuaries will replace the profession as those qualified to calculate reserves. One answer to this argument is that there are activities that no one should be doing. In other words, even today, stochastic processing will undoubtedly be used extensively in calculating or testing reserves for certain products. For it to become a uniform standard, though, it must be subjected too much more rigorous tests and critiques than employed so far.

Summary of Issues

Small companies should be aware of possible pluses, but also, significant pitfalls, from the Principles Based Valuation proposals. Pluses include:

1. Possibly lower statutory reserves, especially for a company writing certain types of products that generate large deficiency reserves or other types of reserves mentioned above.

2. Potential to enter into certain product lines where previous reserve requirements would have kept them out.

Minuses include:

1. Onerous expenses from peer review.

2. Onerous expenses from software and computer machine time involved in stochastic processing.

Possible Approaches for Small Companies:

1. Oppose Principles Based Valuation across the board.

2. Lobby for Principles Based Valuation laws and regulations to be general and not require or in any way favor either the formulaic or stochastic approach.

3. Insist that either formulaic or stochastic approaches remain optional.

4. Actuaries for small insurers should remain watchful and oppose any attempt to mandate use of stochastic approaches in Actuarial Standards of Practice.

5. Lobby for Principles Based Valuation requirements for peer review and for margins that are "appropriate to the risk profile of the particular insurer." In other words, small companies with relatively simple portfolios of products and investments should be able to employ Principles Based Valuation with the least amount of additional expenses.

What happens when you are injured in the course of doing your work? For example, Marcel works for a small home construction company. He is working on a roofing project one day when he slips on some loose shingles and shoots himself in the foot with a nail gun.

This small company is not able to offer health insurance, and so Marcel is lucky that he has decided to purchase occupational accident insurance to cover himself in case of just such an injury.

Occupational accident insurance is very similar to workman's compensation insurance. In fact, in some states companies are allowed to offer their employees occupational accident insurance in lieu of workman's compensation insurance. Sometimes the coverage offered even exceeds that provided by many other plans.

As with any insurance policy, the more generous the coverage, the higher the premium costs for the individual. Occupational accident insurance policies usually have a variety of elimination periods to choose from, from zero days to one year. Obviously premiums get higher the smaller the elimination time period is. A person is much more likely to use occupational accident insurance if their elimination period is only a week or two versus months or a year.

Another factor that will determine the cost of your occupational accident insurance is the duration of the coverage. Do you want to purchase a policy that will cover you for a year? How about for several years, or until you are 65 or older? As people age they are unfortunately more likely to be seriously injured in the course of their work. Reflexes are slower, joints are stiffer, and people tend to become less agile. Because they carry a higher risk, their premiums are likely to be higher as well.

People in occupations which are typically considered more dangerous, such as construction, factory work, or other "blue collar" occupations are going to have more expensive premiums than those with occupations such as banking or clerical work, because the risk of injury is so much higher. If you remember Marcel from earlier, he is much more likely to be injured than someone who answers phones in an office for a living. He is much more likely to find occupational accident insurance to be something that will fit his needs.

As with any insurance policy, each individual considering whether the cost is worth the possibility of needing occupational accident insurance needs to think about all these factors and make an informed decision.

How high up the insurance companies were rated, seems to make little difference. Sometimes the downturns happened so rapidly that the rating companies did not have time to react. Many of the original agents that wrote the policies with that Insurance Company were no longer there. So who is going to notify the policy holders? Certainly not the insurance companies. Of these companies starting to sink, it includes some established over 100 years ago. Others have only been formed a few years back. As market changes affect profitability, there are companies too sunk in tradition to quickly change or eliminate the sale of certain products. Additional insurers are too quick to test the hot markets where profitability and stability of new style insurance coverage is not yet proven.

During the past 20 years all types of Insurance Companies experienced difficulties in paying out claims. Frequently the problem erupts when claims pour in quicker than new premiums arrive and built up reserves are too low to handle claims received.. Intentionally, there are companies offering policies at dangerously low prices. This purposely makes it more difficult for their competitors to attract new clients. The practice is also know as buying customers, As a result the growth rate could be too fast. Also the amount of future claims is not properly calculated. Then when claims started to rise, the premiums are still set too low to offset incoming claim obligations and policy reserves have not had sufficient time to build up.

The insurance industry was hardest hit by the property and casualty insurance companies. These make up a high percentage of the companies liquidated during the past 20 years. Often high rated companies selling homeowner policies were hit almost overnight by weather devastation. Entire zip codes, metropolitan areas, and states were declared disaster areas. Claim reserves were quickly depleted, along with the future of the insurance company. Just look at the amount of harm Hurricane Katrina's rage put on people and their insurance companies. Only a few years earlier Hurricane Andrew left its mark on Florida.

The sales manner in which the insurance policies were sold does not one single out one particular method.. The troubled companies can not be pinpointed to distribution of its insurance products. There is a wide variety of different ways in which policies were sold. Some were only available directly from the home office. In other cases the home office used direct mail to solicit new business. There were insurance companies that had a base of captive agents to sell and distribute their policies. In different circumstances the policies were sold by independent agents and brokers. Other companies used a large combination of distribution channels.

When insurance company liquidation comes there are many efforts first made to save the insurance company. An insurance company can not even apply to go into bankruptcy. Insurance regulation is done at the state level, with no federal government intervention provided. This means that one state has different consumer protection amounts built in, than another will have. Also certain states step in quicker when they spot a company violating sales practices or operating in a financial insecure manner.

The first step is commonly to issue a state order for the insurance company to suspend writing any new insurance. Upon further inspection, the state insurance department may issue a rehabilitation order. This means the insurance company is still in business but now with the insurance commissioner as rehabilitor, the power changes. The insurance commission manages the company until the financial conditions can be properly corrected. If not, an order for the liquidation of insurance company starts. It begins with collecting as much of the company's remaining assets as possible. It is not uncommon for the liquidation process to range from 5 years to 9 years.

More on how the consumer is protected and how much will be recovered will be handled is in an upcoming report. A big hint, HMO - health maintenance organizations, and PPO's - preferred provider organizations ARE NOT covered by state guaranty payments.

Errors and Omissions Risk Management Approches

Buying errors and omissions insurance is an important part of risk management. But risk management goes beyond the purchase of Errors and Omissions insurance. Consider the following low-cost, or no cost strategies to reduce your exposure to errors and omissions, and win more customer respect in the process:

* Allow customers to complain directly and immediately. Talking to frustrated or angry customers - whether over an 800 number, email, or instant messenger -- cuts down the likelihood of a lawsuit and helps their satisfaction with your company.
* Be aware of contractually-based risk management basics. Some E&O lawsuits start from false promises over promotion or misleading information provided by the company and or its representatives. Be careful in generating contracts for customers. Don't make absolute promises and never guarantee any factor, such as a delivery date, or other factors over which you lack complete control.
* Help keep down errors and omissions in your business processes by pulling out inefficiencies in your operations. Be careful when running your business on paper records and verbal commitments. Scan all documents into a computer, record all contracts and pay the utmost attention to detail. This will not only help your business but also cut down on the risk of an E&O lawsuit.
* Make sure you keep extensive records. Phone call logs should be utilized, meeting dates and times as well as documentation.
* Train your staff.. There should be documentation of what was covered in training.
* Have a posted rules of conduct which should deal with honesty.

In 2007, car insurance rates as a whole for the state of New Hampshire were expected to decrease by up to 1 percent. This is the first NH car insurance rate drop since 1999. If you live in New Hampshire, now might be a good time to shop around for the best NH car insurance rate with one of the top rated car insurance companies. Rates can vary dramatically from one company to the next so it can pay off for you to know the New Hampshire auto insurance market and then shop around thoroughly.

New Hampshire Car Insurance Laws

The state of New Hampshire uses a Tort system of law in regards to car accidents. This means that someone must be found to be at fault for causing the accident. It also means that if you are found to be the cause of the accident, you and your car insurance company are responsible for all the damages as a result of that collision.

Be aware that Tort systems vary from state to state, so you might want to contact your New Hampshire Department of Insurance at 1-800-852-3416 for further information, or if you have any questions regarding how the Tort system works in New Hampshire.

New Hampshire Minimum Auto Insurance Requirements

According to New Hampshire state law, you must have bodily injury liability insurance in the minimum amount of $25,000 per person, up to $50,000 of total coverage per accident.

Under bodily injury liability coverage, if you or another driver listed on your car insurance policy is found to be at fault in an accident resulting in injuries or death, the insurance company will pay medical expenses, lost wages, pain and suffering, and legal defense costs up to the specified limits on your policy. You may be financially responsible for any medical expenses or repair costs if those costs exceed your policy limits.

You also must have a minimum of $25,000 in property damage liability coverage in New Hampshire. If you or another driver on your policy is found to be at fault in an accident, your insurance company will pay for the repair or replacement or repair of any damage to another person's property, which may include a fence, car or home.

While not required by New Hampshire law, you might want to consider purchasing at least $5,000 in medical payment coverage. With medical costs rising at a rapid rate, you may want to consider purchasing as much medical payment coverage as you can reasonably afford.

In addition, you might want to purchase uninsured/underinsured motorist coverage of at least $25,000. In the event of an accident, uninsured/underinsured car insurance protects you from medical, repair, and legal costs that may be associated with an accident caused by a underinsured or uninsured driver.

The Cost Of New Hampshire Auto Insurance

The price you have to pay for car insurance in New Hampshire is decided by the behavior of the drivers in New Hampshire as a whole. Insurance companies may take the total cost of insuring all drivers and divide it up amongst all of them. But the costs are not spread out evenly. The percentage you pay for your New Hampshire car insurance depends on such things as your driving record, where you live, your age, and the type of car you drive. Not all New Hampshire car insurance companies compute their rates this way, so it might pay to do some research.

Compare New Hampshire Car Insurance Rates Carefully

Shop carefully. It may be wise to comparison shop between different agents and policies before making a final decision. Also, understand what you are buying. Ask for details and explanations of anything you may not understand. Don't accept high pressure tactics by an agent. You can report harassment by insurance companies or agents to the New Hampshire Department of Insurance.

No matter how much coverage you may choose to purchase, it could be beneficial to you to buy as much car insurance as you can reasonably afford to protect you and your family from the financial obligations if you're not properly insured.

Search New Hampshire Auto Insurance Quotes Online

Enjoy the scenic beauty of the Granite State, New Hampshire, but before getting behind the wheel of your car, you may want to make sure you're covered! Compare NH car insurance quote online from at least 3 different companies in order to find the best rate.

It is very important to do car insurance quote comparisons in Washington when you are looking for auto insurance. Don't automatically accept your renewal rates or the first quote you get. To be sure you're getting the best deal and the best coverage you must do car insurance quote comparisons. In Washington, as in many parts of the country, premiums can vary greatly. That is why now more than ever, it is vital to do comprehensive auto insurance quote comparisons before buying a policy in Washington.

Get a variety of quotes from different companies. Experts recommend getting quotes from no fewer than 3 insurance companies when you are looking for a policy. However, the more quotes you get the better your chances of finding a great deal on a great policy.

Compare coverage and price. There are standard policies that are required in every state and Washington is no exception, however you will find that there may be slight variations in what one company calls full coverage and what another does. Evaluate all the coverage that is quoted and determine if you want or need the "free" and "low-cost" extras. By removing these or at least factoring them in as you compare, you will do a much more accurate comparison.

Compare the companies themselves. Not all companies are created equal. Maybe the one that is offering you the awesome price is on the verge of folding and is scrambling to get more clients. Maybe they have a terrible customer service record and clients are canceling their policies in favor of more user-friendly companies.

You need to know such information. That is why a vital part of car insurance quote comparisons in Washington includes checking out the company. The independent auto insurance ratings companies will tell you about the insurer's financial stability. A simple Internet search will tell you about the customer service record.

To get started on your car insurance quote comparisons in Washington, you need quotes. To do so quickly and easily, be sure and compare rates from a number of different companies online. In no time you'll have all the quotes you need to compare and find the best policy for you.

According to the folks at Legal Reform Now, over 15 million lawsuits will be filed in the United States this year. That works out to about 1 lawsuit per 20 people in this country. To say that we live in a litigious country, where companies see consumers as potential plaintiffs and consumers see companies as "deep pockets" is an understatement of titanic proportions. Suits are being filed over issues that are, on their face, ridiculous yet the plaintiffs often win (remember the old lady with the McDonald's coffee?). What does that mean for you? It means that the odds of you or your business having to square off against someone in court at some point are pretty good. Not 100%, of course, but still higher than anyone would like. Knowing that, it means you have to consider this and protect yourself just in case your number comes up.

Show Me the Money!

I am not going to say the following statement covers 100% of the lawsuits filed in the U.S. each year, just most of them. Yes, there are a few out there striving to right wrongs and punish evil, but the vast majority of lawsuits are about one thing: Money. Why is that? It is simple: Money is the one thing that can be readily transferred from one party to the other to redress some injury-physical or otherwise-done by one party upon the other.

Because of this, you have to approach any matter of liability as if it were a financial issue and not a moral one. Let me reiterate that: This is not a matter or right or wrong, it is about money. Yes, it would be nice to walk out of court with your corporate image intact, which is why so many of these settle out of court with all sorts of nondisclosure clauses in the agreement, but that issue of image is really collateral damage incidental to the real target, your wallet.

Protect Yourself

No one is perfect, accidents happen; and when they do, a lawsuit begins to rear its ugly head. Just because you have Inc., or LLC behind your company name doesn't mean you are completely safe. You are personally shielded from liability as long as it is the corporation that is being accused. However, if it is you, personally, being accused, then that is another issue. Some of the things you should watch out for include:

* You personally guaranteed a loan.
* You personally injured someone.
* Your behavior or actions were irresponsible or illegal.
* You failed to operate your business as a separate entity.

If any of these happen, you have no more protection than a sole proprietor or a simple partnership. The one way you can protect yourself-aside from having a great civil trial lawyer on retainer-is through liability insurance.

Liability Insurance and You

The best way to describe liability insurance is to say that it protects you and your small business from personal injury or property damages. Typically, it covers damages awarded in court as well as any legal costs and fees. Like other types of insurance, liability insurance comes in several forms, each more or less tailored to your business needs. These are general, product and professional liability insurance policies.

* General Liability. This is also known as Commercial General Liability and it is the primary coverage for your business. This type of insurance covers personal injury, property damage and advertising claims.
* Product Liability. If you manufacture or sell products, you will need this type of insurance. It protects against someone becoming injured by your product and the level of protection is usually based on the risk of the products involved. If you sell sheets, your liability-and coverage needs-will be much lower than if you sell firearms.
* Professional Liability. Professional liability insurance covers errors and omissions in the professional services your company offers. This includes malpractice, negligence and omissions. Also, depending on your profession, a doctor, for example, you might have a legal requirement to carry such a policy.

Affording Coverage

Once you have decided on the kind of coverage-or mix of coverage-that you need, you need to figure out how to acquire it. Depending on your business, this kind of insurance can be expensive, but there are some ways to lower your costs.

Study Your Industry

You should research the legal actions, verdicts and settlements that have taken place in your industry for the last year or so. This information will give you an idea of the actual level of liability your industry faces and what you may face, yourself. You can look locally, regionally or nationally for this information, but the more information you gather, the better your decisions will be.

Talk to Peers

What are your peers in the industry paying and what kind of coverage are they getting for the money. It is important to know what the going rate in your area is before you start shopping around.

Find a Broker

You may be an expert in your field, but unless you are in the insurance game, you will need the advice of someone who actually knows the terrain and can find you the best coverage and the best rates.

Shop Around.

Whether you are working with a broker or going it alone, shopping around for coverage is the first thing to do. Compare policies to see what is covered and what is excluded. Also, if you need more than one kind of insurance, see if package deals are available. Usually called a Business Owner's Policy, this kind of policy brings the various kinds of insurance under one policy at a much reduced premium.

Become a Member

If you haven't bothered with your industry trade association, area business group or a national small business association then give it some thought. These groups frequently have insurance benefits available for members at group rates, which is a great savings when compared to rates for individual companies.

The Bottom Line

A court judgment against your company could put you out of business. Protecting yourself through liability insurance can keep that from happening. Take the time now to research and establish this protection and keep in force against the day you will need it. It is an investment in the health of your business and one of the best decisions you, as a business owner, can make.

Why are mortgage payment protection policies purchases at an old time high, history tells us that it all started out with the United State housing market bubble. The United States housing bubble is the economic bubble in many parts of the U.S. housing market that occurred in areas such as California, Florida, New York, Michigan, the suburbs of Chicago in the Midwest, the BosWash megalopolis, and the Southwest markets. It reached its peak in 2005 and then plateaued, and started deflating in 2006 and spiraled ever since.

Greatly increased foreclosure rates in 2006-2007 by U.S. homeowners unable to Pay their mortgages caused a crisis in August 2007 for the subprime, Alt-A, mortgage, credit, hedge fund, and the UK as well. The U.S. Treasury Secretary called the bursting housing bubble "the most significant risk to our economy."

A housing bubble is an economic bubble that occurs in local or global real estate markets. It is characterized by rapid increases in the valuations of real estate until unsustainable levels are reached relative to incomes, price-to-rent ratios, and other economic indicators of affordability. This, in turn, is followed by decreases in home prices that can result in many owners Holding negative equity-a mortgage debt higher than the value of the property. The housing bubble in the U.S. was caused by historically-low interest rates, And lenient lending underwriting guidelines. This bubble is a trickle down effect stemming partly from the stock market or dot-com bubble of the 1990s. This bubble is a perfect illustration of how our economy is a world economy and how it impacts the United Kingdom, Germany and even South Korea. Because of these factors, the need and rise of PPI has spiked.

PPI stands for payment protection insurance, which is an insurance policy that provides protection and replaces the part of your income dedicated towards your bills in case of an Accident Sickness and Unemployment. It provides income to meet your debt repayments for a period of up to 12 months with possible extensions for extreme circumstances.

Following is the qualification process: Must between the ages of 18 and 65 Must be employed for a minimum of 16 hours per week

Another up and coming protection is the MPPI, which stands for Mortgage Protection Premium Insurance. This policy is usually issued by the mortgage company issuing the mortgage. What this policy does is meet your mortgage payments for a period of 12 to 24 months should you become unemployed, ill, etc.

The Southern California wildfires are causing the largest population evacuation in California's history, and over $1 billion dollars so far in property damage. Once the TV cameras leave the damaged areas, the property owners and policyholders will have to get busy with the process of filing insurance claims.

So for you, the reader of this article, I have posted a Top Ten List of crucial steps in the claims process. Then, I wrote and posted a complete article about each of the Top Ten.

Most people don't read their insurance policies. Even when they try to read them, they find them frustratingly complicated. Insurance policies list what you must do to file a claim, but they NEVER tell policyholders HOW to do it.

The "devil" of the claim is in the details of the claims PROCESS, and the insurance companies hardly EVER explain the process. If they did, it would cost them millions more. Insurance companies do whatever they can to control the CLAIMS PROCESS. But, if you let me teach you the CLAIMS PROCESS, you'll be able to take control of the process away from the insurance companies, and add hundreds or even thousands more dollars to your claim settlements!

Insurance companies will pay the least amount of money that the policyholder will accept to settle the claim. But, if you allow the insurance company to handle your claim for you, how will you ever know whether you got ALL you were entitled to collect? Remember, the adjuster works for the insurance company, not for you. HIS loyalty is to them...they're paying his salary.

Let me share some of these strategies with you.

1. For the hundreds of thousands displaced from their homes, there is coverage in the homeowners or renters insurance policy for living expenses while you were displaced. In that coverage, there is a whole list of eligible expenses that you don't know about and it's not listed in the policy. The insurance companies will likely not tell you this, but I'll tell you.

2. How will you prepare your inventory of personal property? There is a right way and a wrong way. The wrong way is to allow the insurance adjuster to do your inventory for you. He has no incentive to get it right.

3. The insurance company will depreciate your dwelling and personal property, even if you have replacement cost coverage. You must challenge their depreciation on EVERY ITEM. Make them PROVE their method of depreciation. This one strategy alone can put thousands of dollars in your pocket.

4. Speaking of replacement cost coverage...even though you have replacement cost coverage in your homeowners policy, the insurance company is not going to pay you until you've actually made the replacement repairs or replacement purchases of your personal property. Once again, mastering this strategy can put thousands of dollars in your pocket...and if you don't get this right, you stand to LOSE THOUSANDS!

5. Are you under-insured? If you don't FIGHT THIS PROCESS, the insurance company will determine how much your dwelling is worth, and if you have enough insurance. If THEY say you're under-insured, they'll hit you with a penalty. You have to fight and get the correct valuation on your property!

Watch for my next four articles. In them, I'll expand on each one of the points listed above. In addition, read each of the articles about the Top Ten List.

You can win the insurance game when you have the right tools!

Breast reduction is a very effective plastic surgery operation for reducing and reshaping large breasts and eliminating the pain that they cause. Breast reduction may be eligible for coverage by your medical insurance if it is part of their covered benefits and you qualify.

Whether one qualifies for medical insurance coverage is not a mystery as most insurance companies have very specific criteria to qualify for eligibility. In fact, it is one of the most scrutinized of all plastic surgery procedures covered by insurance. There are several important issues including your weight and breast size, how much tissue the plastic surgeon plans to remove, documentation of painful symptoms, and what other non-surgical treatments have you had.

How much you weigh is a significant consideration. if you are over 20% of your ideal body weight, your insurance company may say you need to lose weight first. We all know that weight loss will not decrease the size of your breasts (it some cases it may make the skin sag more, causing greater strain on your neck, shoulders, and back), nevertheless, this is a criteria that insurance companies use. At the least, if you are overweight, attempts at weight loss must be done and documented. If you can only lose so much weight, then so be it. But some weight loss effort may be required.

Breast size is an obvious important criteria. There is no precise breast size that makes the cut-off for insurance coverage. Rather it is a combination of your height, weight, and breast size. Technically, your height and weight are put into a formula to create your BSA. (body surface area) Based on your calculated BSA and the amount of breast tissue your plastic surgeon says will be removed (there is an industry standard graph and table which determines this) is the numerical determinant for medical eligibility. You have no control over what your plastic surgeon estimates will be removed but that number is of critical importance. The whole concept of this numerical determinant is for the insurance company to determine that they are not really paying for a breast lift which is mainly a cosmetic operation. I call this compensation for the 'sins' of the past done by plastic surgeons from decades ago.

One of the hardest criteria to document, but is one of the big three, is what have you done non-surgically that may make your breast and body pain go away without surgery? We all know that nothing short of reducing large breasts will make their symptoms go away, but again, we must play by their rules. Some form of physical therapy, chiropractic treatment, or even acupuncture must usually be tried first (for three months) and documented that it did NOT work. Most breast reduction consults that I see are usually lacking in this criteria of eligibility. It may feel like a waste of the insurance's money and your time, but it often must be done.

To determine possible medical coverage, your plastic surgeon will take photos and measurements of your breasts and bundle up all of the information listed above and send it to your insurance company. The more complete this information is, the less likely you will get a letter (4 to 6 weeks later) that says there is not enough information to make a predetermination. Your breast reduction may be determined to be medically necessary if you meet all the required criteria! It can be a slow process, and it may take more than one letter from your plastic surgeon, but persistence and perseverance is the key to a medical necessary breast reduction.

An insurance settlement represents the settlement of an insurance claim made on an insurance company. This could be a claim by an insured person under his own insurance policy, or a third party claim.

Insurance companies could make the settlement payments in different ways. One of these is to defer the payments as when the company promises to make annuity payments over a number of future years.

A life insurance settlement, or life settlement, is something different. It involves selling your life policy for immediate cash to a life insurance settlement company. If you are aged over 65, and have a life insurance policy, you could sell the policy. Life insurance policies are like any other asset that you own, and you are free to sell it.

Insurance Settlements Can be Cashed Out

Life Settlements are cash outs by their very nature. You could also cash out any deferred payments you are receiving under an insurance settlement. We look at both below.

Selling Life Insurance Policies

There are a number of reasons why you might want to sell your life insurance policy.
* Paying the premium has become a heavy financial burden

* You need cash for a prolonged medical treatment

* There are life policies in the market that are more cost effective

* There are investment options that you consider better

* Your business or personal situation have changed and a life insurance policy might not be the best

option under the changed situation

Factors like those mentioned above could make it better to cash out your life policy. In extreme cases, you might even have to let the policy lapse before you are able to make any claim.

The common alternative in such a case was to surrender the policy to the insurance company and get the surrender value. This was a poor alternative as the surrender value could be zero or a very low sum compared to the premium you have been paying for years.

If you are aged above 65, you now have the alternative to sell your policy and get a sum significantly higher than the surrender value. The amount depends on such factors as your present medical condition, statistical life expectation, smoking or tobacco use habit and the policy type.

Selling Other Insurance Settlements Involving Deferred Payments

Where your insurance settlement involves annuity payments, you might wish to cash it out for a lump sum. A lump sum of cash now could help you invest your money better or meet the expenses of a prolonged medical treatment.

In such cases you are allowed to accelerate your insurance settlement payments. A court process is involved to determine that cashing out the annuity payments is in your best interests. If the court approves the acceleration, you could sell your annuities in whole or in part and get a lump sum of cash.