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
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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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