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THE MATURING OF DEBT PROTECTION AGREEMENTS
Hugh Alexander, Esq. We have written two articles on debt protection agreements ("DPAs") in previous editions of the FORC Journal. This article will provide additional comments on DPAs in the marketplace and address the maturing of this product since 2002.
INSURANCE INSOLVENCIES AND LARGE DEDUCTIBLE INSURANCE PROGRAMS
Constance B. Foster, Esq. In a Large Deductible Policy ("LDP"), the insurer assumes full statutory liability for all coverage under the policy while the policyholder assumes a contractual obligation to the insurer to pay claims within the deductible. LDPs typically cover workers' compensation, commercial auto and general liability exposures of a medium to large commercial insured. The deductibles typically vary from $100,000 to $1 million or more per claim. Although the LDP obligates the insurer to pay all claims within the deductible, side agreements and endorsements define the large-deductible arrangements and create the insured's obligation to pay claims within the deductible. Accordingly, an LDP arrangement has characteristics of both self-insurance and traditional insurance coverage.
REPAIRING NO FAULT IN MINNESOTA
Douglas J. Franzen, Esq. In 1974, the Minnesota Legislature enacted the No Fault Automobile Act. In the current 2005/2006 biennium, the legislature is considering insurance industry supported attempts to reform the Act. The goal of the reformers is to achieve measurable cost savings for policyholders by recalibrating the system with its original intent and purpose. Suggested reforms focus on reversing perceived erosion of the tort thresholds, curbing excessive treatments and provider fees and finally, on returning arbitration as a forum for small claims resolution. As would be expected, these reforms are vigorously opposed by the plaintiffs trial bar and the chiropractic lobby.
SOLI OR IOLI DIES IN VIRGINIA
Ben R. Lacy, IV, Esq Stranger Owned Life Insurance ("SOLI") or Investor Owned/Initiated Life Insurance ("IOLI") are transactions involving structured financing backed by annuities, life insurance policies and certain other insurance policies. Such transactions have obtained a great deal of attention in those states where the laws pertaining to "insurable interest" will allow a consenting individual to "effect" a life insurance policy upon himself or herself for the benefit of this stranger or investor. Virginia was one of only four states (Texas, Tennessee and recently North Carolina) who had laws pertaining to insurable interest that would allow competent consenting individuals to consent to these transactions.
WILL CONSOLIDATION OF THE U.S. LIFE INSURANCE INDUSTRY CONTINUE?
Alan J. Levin, Esq. The U.S. life insurance industry has experienced incredible changes over the last thirty (30) years, due in large part to diminished profit margins and increased competition. This article will discuss the consolidation of the U.S. life insurance industry. It will begin with an overview of the U.S. life insurance industry over the last thirty years and various factors leading to consolidation of the industry. Next it will discuss some of the more notable mergers, acquisitions and demutualizations of life insurance companies and insurance holding company groups. Finally, the article will conclude with an analysis of the future of the U.S. life insurance industry and whether consolidation of the industry will continue.
FLORIDA'S VALUED POLICY LAW: DOES A HOMEOWNERS' POLICY COVER EXCLUDED PERILS?
Travis L. Miller, Esq. One of the enjoyable aspects of an insurance regulatory practice is the complexity of the issues that arise from day to day. Questions that seem straightforward often turn out to be more difficult than they initially appear. Certainly, though, the question presented in the title to this article is the most basic of regulatory questions, right? Once again, a straightforward question meets the complexities of statutory construction, judicial interpretation, and legislative action leaving Florida homeowners' insurers unsure about the extent of their liability when covered and noncovered perils combine to cause total losses to insured properties. |
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