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In "Introduction to Hard and Soft Markets," we discussed the two insurance market conditions. Now, let's discuss how they affect your business.
During a soft market, Insurers focus on remaining viable and competitive. Because equity is high, they can write policies for a variety of businesses at lower premiums and offer higher coverage limits. A soft market means supply is higher than demand, and the insurer is more than likely exceeding their return on equity goal. While underwriters still look for outstanding accounts, they are more willing to bend "rules" to accept accounts with attributes that they would not normally consider during a hard market. Further, they are more likely to offer higher coverage limits for less than stellar accounts. However, before COVID, the insurance industry was already in the beginning stages of a hard market. Several factors started this swing, such as a rise in cybercrime, nuclear verdicts, and constant catastrophic weather. At the same time, insurers had been writing risks they would not customarily entertain and issuing policies at low premiums. This situation will likely result in undesirable underwriting outcomes. Now, with COVID, insurers should expect decreased earned premiums from business closures, lost income and increased claims. As well, the financial market has become uncertain. In a hard market, the demand for insurance is higher than the supply. During this time, it may not be easy finding the right coverage at the right price. If you need higher limits, you may need to look to several different insurers to obtain the coverage, which could result in higher premiums. Underwriters look to write the best of the best accounts, meaning no losses, excellent credit rating, business in operation for many years, excellent property conditions and exposures, etc. Suppose your business does not meet these criteria. In that case, your agent must rely on his or her relationship with a company and its underwriter. Further, you'll need to be open to making changes in your business to become more desirable. Market Characteristics: Soft market:
Hard market:
Maintaining insurance coverage during any market is possible. It's essential to establish a good working relationship with your agency and your insurance company. If you and your management team are open to company requests, your business will be seen in a more favorable light. The most significant attribute sought by underwriters is the management attitude. The more you are willing to control risk, the better. Accidents happen, but the more eager you are to take precautions to prevent them, the more desirable your business is to an underwriter during any market cycle. All market conditions are challenging for any business to navigate. Searching for the best coverage at the best price can be tricky, so it's important to contact an insurance professional to discuss your business's insurance needs. COPYRIGHT: Insurance Publishing Plus, Inc., 2021
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Many drivers are becoming increasingly interested in reducing their contributions as polluters by spreading their "green" and "sustainability" impact. One way that these goals are met is via a decision to operate a different type of car. Two options are electric and hybrid vehicles. Electric vehicles (EVs) are operated solely by a battery and electric engine. Hybrids use both electric and gas combustion engines. Both newer driving options significantly reduce (or eliminate) carbon emissions.
Fortunately, both EVs and hybrids are now easily insured. However, those who own such vehicles and insurers who provide coverage should be aware of some negative issues. EVs have a limited speed and operating range. Also, some evidence indicates that EVs accelerate significantly slower than hybrids and gas combustion peers. Therefore, they are not well-suited for long-range or highway operation. EVs may even cause a significant driving danger due to a poorer capacity for keeping pace with traffic, merging and lane changing. EVs and hybrids depend on batteries, which degrade over time and must be replaced after a few years. Replacement may also be necessary if they are damaged in an accident. Of course, this is also true with gas combustion vehicles. However, one difference is that EV and hybrid batteries (and related components) typically cost several thousand dollars. Therefore, compared to gas combustion cars, battery replacement is extremely expensive. To maximize reliance on electrical power, EVs and hybrids must make use of both cutting edge and lighter building materials. Such vehicles must be smaller, most falling in the compact range. Small vehicles are composed of lighter materials, making them more vulnerable to serious damage in accidents with larger, heavier vehicles. This also makes occupants more vulnerable to suffering severe injuries. Another concern with EVs and hybrids involves pedestrians. Both vehicles, particularly at lower speeds, are relatively silent. Experience indicates that pedestrians don't have the same cues to rely on to guard against accidents with EVs and hybrids. Some manufacturers are considering adding components to simulate the noise generated by gas combustion vehicles to reduce the danger to pedestrians and cyclists. Began helping residents of Southern Nevada in August of 2014 manage and deal with the least talked about or wanted, rather a product that is needed now and, in the years, to come. Our goal is to provide 5-star customer satisfaction to each and every client. As with any small business there is a need to expand. We are pleased to announce that we have expanded our footprint. The states include California, Arizona, Texas, Louisiana, Florida, South Carolina, Virginia, Michigan, and New Jersey.
Currently we have a limited coverage options in these states. The coverage includes workers compensation through the state assigned risk insurance program. In California we operate as Thompson-Penny Insurance Agency providing personal auto insurance coverage through the MileIQ and CA Low-Cost Auto Insurance Program. For companies we are contracted with the State Fund of California and varies of business insurance carriers. NEWS RELEASE
Contact: Dante Thompson Insurance Group of Nevada Offers Tips to Help You Save on Auto Insurance Las Vegas, Nevada – November 16, 2020– Purchasing the auto insurance that is right for you can be confusing, especially for first-time buyers. By learning the basics on how to get the most for your money, you can save on your auto insurance and feel confident you have adequate coverage. Insurance Group of Nevada and Travelers, a leading provider of auto and homeowners insurance, offer these tips to lead you in the right direction when you purchase your car insurance.
Established in 2014, Insurance Group of Nevada is an independent insurance agency offering a full range of insurance products including AUTO, HOME, LIFE, HEALTH, BUSINESS, AND SR22 INSURANCE. Insurance Group of Nevada supports local charities and organizations. For information and quotes on insurance coverage, please visit Insurance Group of Nevada at 1415 Arville Street Suite 101 Las Vegas, Nevada 89102 or call 702-996-6434 About Travelers The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. The company’s diverse business lines offer its global customers a wide range of coverage sold primarily through independent agents and brokers. A component of the Dow Jones Industrial Average, Travelers has operations in the U.S., Canada, U.K. and Ireland. For more information, visit www.travelers.com.
As of January 1, 2020 Nevada hospitals can know longer balance bill patients for medical services. Accidents and illnesses can happen to anyone. We purchase health insurance for protection, to protect us from costly medical bills. The average cost of emergency services in Nevada can amount to over $10,000. The average cost of inpatient hospital services can be over $100,000. There are different types of health insurance available in Nevada. One common form is major medical insurance. Major medical insurance contains things like a deductible, co-insurance, co-payment, and out of pocket maximum limits. These are medical expenses that consumers are responsible for. When consumers purchase major medical insurance they are agreeing to specified terms and conditions. One being the use of medical providers and facilities. When a health plan member visits an in network medical facility they are agreeing to pay there share of allowable medical expenses. However, before AB469 was passed hospitals would allow non health plan doctors to provide medical services. Providers would submit payment request to a consumers health plan for payment when the health insurance company deny the claim the full amount for medical services is then sent to the patient for payment. This is wrong. AB469 stops non contractor providers with balance billing patients. The only charges patients is responsible for is there share under the health insurance plan the consumer has enrolled in.
Currently, car loans may last as long as four to six years and leases are becoming more expensive. Whether your vehicle is a coupe, sedan, van, sports utility vehicle, hybrid, or truck, your vehicle's value will depreciate very quickly. A rapid loss of actual value accompanied by a longer loan obligation spells trouble.
It isn't unusual for the amount of the unpaid loan and lease balance to become much larger than the vehicle's value. This disparity exists over much of the loan or lease period. Making matters worse is that this gap is usually only discovered after a total loss. After the insurer pays its obligation, you may have to pay the bank or leasing company thousands of dollars out of your own pocket. The situation is an unfortunate side effect of the need to extend financing to accommodate extremely expensive vehicles. However, there are a couple of solutions to the dilemma. The Auto Loan/Lease Coverage Endorsement This optional coverage is available from a variety of insurance companies. The form provides coverage for the following:
Exclusions Generally, this optional coverage excludes items such as overdue lease payments, penalties (for excessive use, abnormal wear and tear, or high mileage), security deposits, costs of warranties or various types of credit insurance, or carryover balances from a previous lease. Auto Replacement Cost Coverage For an additional premium, a new car owner may buy coverage to settle major losses based on the vehicle's replacement cost rather than its depreciated value. There are some limitations, such as:
©The Rough Notes Company, Inc. Normally when you allow someone to borrow your car, they are covered under your auto insurance policy. The exception is when there is a signed driver exclusion notice.
The case of Mills v. Wayne Mutual Insurance Company Mills thought her son would be covered under her insurance policy but according to the appeal filed by Progressive, her son was excluded. Her son did have his own insurance policy, but was not the owner of the car that was involved in an accident it was his mother's car. This case explains one critical component that is often not addressed when shopping for insurance coverage. At the conclusion of the appeals trial neither insurance company paid for damages, so Mills son was on the hook for damages. Would this case have been different if the mom and son had a knowledgeable independent agent? Independent agents works with multiple insurance companies providing broad coverage options for its clients. Insurance Group of Nevada we carefully analyze all possible gaps in our clients insurance policies and we work to fill those gaps at affordable prices. Source: Wayne Mutual Insurance Company v. Mills et al., Appellees; Progressive Preferred Insurance Company, Appellant--No. 95CA0091--Court of Appeals of Ohio, Ninth District, Wayne County--July 31, 1996--692 North Eastern Reporter 2d 213. America waste more things especially food than any other country. April 22nd is Earth Day this day is a day that we can come together as a community to protect our environment.
We all want to live in an environment with clean air, and water. Let's work together protect our environment. Insurance Group of Nevada is celebrating Earth day by protecting our environment by recycling our old equipment, and excess paper. We're essentially aiming to "go green" for a day. |
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