| Drop Down of Excess Coverage If the Primary Insurer Becomes Insolvent |
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| Although insolvency of an insurer may be considered a relatively rare event, the effect of such insolvencies on policyholders can be substantial. Most jurisdictions have insurance guaranty associations that will provide some coverage in place of an insolvent insurer, but such coverage usually is limited as to the amount and type of reimbursement of losses that will be available. Affected policyholders should consider whether an excess insurer has an obligation to "drop down" and take the place of an insolvent primary insurer. More... |
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| Treatment of Annuities as Securities |
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| Variable annuities are differentiated from fixed annuities by virtue of how the benefits are funded. In a traditional fixed annuity, an annuitant pays a premium(s) and is guaranteed a certain rate of return over a life expectancy; thus, benefit payments can be determined with precision. In a variable annuity, premium payments are held in a separate account or accounts. More... |
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| The War Exclusion to the CGL Policy |
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| Standard comprehensive general liability policies insure businesses against liability for personal injury or property damage of third parties. The policies contain a number of exclusions from coverage. Insurance needs and risk planning regarding the eventualities described in the exclusions should take into account that standard CGL policies, though comprehensive, do not cover excluded events.
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| Types of Insurance Companies |
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| The structure of an insurance company may affect how it does business. Insurance companies may take the form of regular stock companies, may be mutual insurance companies, or may be "captive" subsidiaries of companies that effectively are self-insured. More... |
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| Policy Construction Against Insurer |
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| Insurance policies are contracts drafted by insurers, but the terms are not always clear and unambiguous. When a dispute arises between an insured and an insurer as to the meaning of a policy, courts sometimes become involved to provide a construction of the ambiguous term, as they do with other types of contracts. Disputes usually involve which risks are included in coverage, exclusions from coverage, conditions that must be fulfilled before coverage applies, and forfeitures of the policy. More... |
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