IRMI Update—Issue #21
An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
July 24, 2001
In This Issue
Colleague,
Are we in a hard insurance market? Frankly, we probably aren't there yet,
but the marketplace is continuing to firm up.
One result is that underwriters are more demanding with respect to the information
they require. Since many of them have more submissions than they can handle,
they work first on the ones that provide all the necessary data, and the others
get relegated to the bottom of the stack. Thus, those who take the time to prepare
well-organized submissions that provide all the data the underwriter will need
(preferably in a format s/he can easily use) will beat the competition.
Do you find this to be true? Are underwriters asking for significantly more
information? Are they making good use of it? What suggestions do you have for
preparing a complete submission? [See reader comments].
Our editorial staff is busy contacting our industry friends to prepare our
annual market update for The Risk Report.
We are also polling visitors to the IRMI.com home page. Please check it out
and participate in the poll—it won't take 30 seconds:
www.IRMI.com. We also welcome any and all
comments about the status of the insurance marketplace, particularly suggestions
for coping with the firming market. We'll summarize our findings for you in
IRMI Update #23.
Have a great day.
Jack
Jack P. Gibson
President
IRMI
ProgramBusiness.com brings insurance agents, risk managers, wholesalers,
MGAs, insurance companies, and program managers together in an information-exchange
environment. The FREE search engine enables agents to locate available markets
for specific coverages by state; wholesalers are able to lease Web-site storefronts
to market programs and coverages to the agents that meet their criteria. Free
membership includes a free electronic newsletter published every 10 days with
valuable resource information for anyone associated with the insurance industry.
Get Severability Provisions in Professional Liability
Policies—Directors and officers (D&O), errors and omissions (E&O), and
employment practices liability (EPL) policies (and their applications as well)
should contain a broad "severability provision," sometimes called a "non-imputation
provision." The severability provision protects innocent insureds by preventing
the actions of one insured from nullifying the coverage for all insureds. Severability
provisions often include language such as "the acts or omissions of one insured
will not be imputed to any other insured."
Without a broad severability provision, an improperly completed application
can nullify coverage for all insureds, even if the application error or omission
was unintentional. With respect to policies, the severability provision should
apply to most (preferably all) exclusions and conditions so that the actions
of one insured do not nullify the coverage, including defense, for all the insureds
named in the claim or suit.
By: Walt Curtner
Curtner Risk Management, Inc.
Denver, CO
E-mail: CRMRisk@eazy.net
Suggest a Risk Tip. Future issues of IRMI Update
will include more risk tips from our readers. Send us a practical tip (less
than 300 words) for identifying and managing risks, buying insurance, managing
claims, or filling gaps in insurance coverages.
Submit your tips. We'll
acknowledge your contribution as we did for Walt.
We add new Expert Commentary to IRMI.com every week. There are now 187 articles
on IRMI.com, and many more are in production. Below you'll find summaries of
some recent additions with links to the articles.
-
Stand-Alone
E-Commerce Market Survey—This newly revised chart lists the current
stand-alone e-commerce insurance policies being offered. Some policies cover
both first-party losses and third-party liability claims, others just one
or the other. See what coverages are available and how to contact the appropriate
insurer, MGA, or broker.
-
When Civil Authorities
Take Over, Are You Covered?—With hurricane season upon us, it
is important to dust off plans for business closure and evacuation. Will
your insurance cover you if a civil authority closes or denies access to
your insured property due to a hurricane, wildfire, flood, or other catastrophe?
It all depends on the policy language.
-
Insurers' Marketing
Myopia—Don't insurers realize the value of being customer focused
instead of product focused? Yes, but they are hampered by a lack of direct
access to clients, development of intellectual capital, and consistency
on improving the bottom line. Learn more in this insightful article.
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Court Holds Design
Professional Liable for Approving Payment Absent a Bond—The Oklahoma
Supreme Court recently held a design firm liable for damages, plus punitive
damages, incurred by subcontractors due to the general contractor's failure
to secure the required payment bond. See the court's rationale and what
steps design firms should take to avoid this scenario.
-
Energy: The Catalyst
of Change—The cycle of change causes discomfort to everyone.
This article addresses the energy of people involved in and affected by
change and why it is important to work with that energy to understand, improve,
and effect desired change.
Construction Risk Management
Award Deadline Is August 1—We will present the third Construction
Risk Management Best Practices Award in New Orleans this October. Do you know
someone who should receive it? Perhaps it should go to you! In addition to all
the recognition, the winner will enjoy a free trip to next year's conference
in San Diego. We need the submission by August 1 to give the judges time to
select the winner. For information on the award criteria and how to apply or
nominate someone click on
CRMBP.
We will soon begin accepting online registrations. In the meantime, visit
the Conference agenda
for details about all the sessions and the presenters.
IRMI Launches Two Free
Newsletters for Customers—Since IRMI issues a manual supplement or
newsletter every week, it is tough for you to keep up with the topics covered
in the 20,000+ page library. It is even harder to remember which publication
covers which topics. This is doubly difficult if you are with one of the many
insurance companies or brokerages that provide our electronic services to all
their employees through Silver Plume or IRMI CD. To make your life easier, we
recently introduced two new e-zines, one for Silver Plume customers and one
for IRMI print and CD customers, which provide concise outlines of newly added
materials to the publications you buy from us. They are published six times
each year and are absolutely free. Sign up by clicking on
Newsletters.
Free Summaries
of State CE Requirements—There are a myriad of differing state regulations
for agents'/brokers' continuing education, and keeping up with them is tough.
The Training and CE section of IRMI.com can be a big help because it includes
summaries and answers to frequently asked questions about agent CE requirements
in most states. To get information about your state's CE requirements, click
on Training & CE, then "Course Catalog,"
select the state and your type of license (life/health or property/casualty),
and click "Next." Beneath the course listing for that state, you will find links
to a summary of the state's requirements and answers to frequently asked questions
about the state's requirements.
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