IRMI Update—Issue #55
An E-mail Newsletter for Risk and
Insurance Professionals
ISSN: 1530-7948
December 17, 2002
In This Issue
Colleague,
The Terrorism Risk Insurance Act of 2002 was long awaited by
the U.S. insurance industry. That this Federal terrorism insurance
backstop will likely have the long-run effect of assuring the availability
of terrorism coverage for most commercial insureds is the good news.
The bad news is the act forces insurers into a mad scramble during
the busiest time of the year for the industry.
Briefly, the Act gives commercial lines insureds 30 days to accept
or decline terrorism coverage after receiving a quote from their
insurers. Until that time, the insurer is exposed because that part
of any exclusion which applies to a certified act of terrorism is
null and void, and the insurer has no additional premium for the
exposure. If I were an insurance company CEO, my number one priority
at the moment would be to comply with the Act and start the clock
running. As a result, underwriters will be unable to focus on their
January 1 renewals.
This is likely to make what would already have been a challenging
renewal season into a very frustrating and difficult time for all.
I wish you the best in meeting the challenges you encounter. Our
first article on the effects of the Act will be posted on IRMI.com
on Friday, December 20. Be sure to check the home page to link to
it.
As we head into the holidays and a new year, don't let the challenges
of the current insurance marketplace get you down. While you need
to stay focused and do your best work for your employer and your
customers, also find time to spend with your family and to give
thanks for the blessings you have.
Speaking of blessings, I'd like to thank you for choosing to
be part of our subscriber family. All of us at IRMI send you our
best wishes for peace, happiness, good health, and prosperity during
the holidays and the New Year.
All the best,
Jack
Jack P. Gibson
President
IRMI
Help
Us Reach Our Subscriber Goal—The IRMI Update subscriber
family has grown to 27,000. We would like to reach 30,000 by April
15, and we can only do that with your help. Would you please send
this issue with your recommendation to a friend or colleague who
you think would enjoy the articles and information? He or she can
activate a complimentary subscription on this
page. Many thanks for your
help!
There are now 368 articles on IRMI.com, and many more are in
production. Below you'll find summaries of some recent additions
with links to the articles.
Construction
Risk Conference Handouts Available Online—The speakers'
handouts from the 22nd IRMI Construction Risk Conference are now
available on IRMI.com. Over 30 handouts, which cover such topics
as insuring work in progress, contract risk management, bidding
your insurance program, loss control, design-build issues, and more,
may be downloaded at no cost.
Captive Questions? Get the Answers You
Need!—With the hardening market, many are looking to captives
to solve their insurance problems. But the concept can be so confusing.
- How do wholly owned, group, and rental captives
compare to traditional alternatives?
- What's the difference between a risk retention
group and an association-sponsored captive?
- How do rent-a-captives work?
- What is a protected cell captive?
IRMI has the answers in its popular 2-day seminar, "Captives
Insurance Solutions for the Middle Market," back by popular demand.
Learn how group captives work and whether they can provide the help
you need to solve your insurance dilemma. The seminars are scheduled
for Las Vegas February 19-20; Chicago February 25-26; and New York
City March 4-5, 2003. Learn more details by calling (800) 827-4242.
Michael
Rossi, president of Insurance Law Group, writes the
Cyber Insurance column for IRMI.com. He became an Expert Commentator
in the spring of 2000 and has written 13 articles and developed
a stand-alone e-commerce insurance policy chart that he keeps current.
His articles focus on risks inherent in businesses' increasing reliance
on technology. See a
list of all Mr. Rossi's IRMI.com articles and read his biography
for more information on Mike and his firm along with contact information.
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