Also known as "Labor Law" or "Action Over"
An injured employee, after collecting workers compensation benefits from the employer, sues a third party for contributing to the employee's injury, such as the General Contractor that hired his employer top perform a task.
Then, because of some type of contractual relationship between the third party and the employer, the liability is passed back to the employer by that prior agreement. This causes the employer to pay both the Workers Comp claim, and the General Liability Claim.
This type of claim is very common in NY, and many carriers specifically exclude this type of claim.
____________________________________
Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
Wednesday, October 22, 2008
Wednesday, September 17, 2008
Insurance Jokes Part 5
Q: Do you know what a woman and insurance have in common?
Answer: They are both expensive, difficult to understand and what you get is not guaranteed.
Q: Do you know the difference between a man and a whole life policy?
Answer: A whole life policy eventually matures
Q: Did you hear about the insurance executive that nearly died in a horseback riding accident?
Answer: He was saved when the manager of the Wal Mart finally came out and unplugged it.
Q: How many producers does it take to change a light bulb?
Answer: None, they'll just have a CSR do it.
Q: How many CSRs does it take to change a light bulb?
Answer: Seven; one to change the bulb, and six to stand around and complain how producers do it.
Q: How many actuaries does it take to change a light bulb?
Answer: "How many did it take last year?"
Q: How many insurance agents does it take to change a light bulb?
Answer: That depends on whether the light bulb burned alone or with the whole house.
Q: Why is a CSRs like a mushroom?
Answer: Because they're kept in the dark, fed a lot of crap, and when they start to grow, they get canned.
Q: What do you get when you cross a monkey with a broker?
Answer: Nothing, there's some things even a monkey won't do.
Q: I asked a broker how many producers he had working for him?
Answer: He answered "about half of them".
____________________________________
Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
Answer: They are both expensive, difficult to understand and what you get is not guaranteed.
Q: Do you know the difference between a man and a whole life policy?
Answer: A whole life policy eventually matures
Q: Did you hear about the insurance executive that nearly died in a horseback riding accident?
Answer: He was saved when the manager of the Wal Mart finally came out and unplugged it.
Q: How many producers does it take to change a light bulb?
Answer: None, they'll just have a CSR do it.
Q: How many CSRs does it take to change a light bulb?
Answer: Seven; one to change the bulb, and six to stand around and complain how producers do it.
Q: How many actuaries does it take to change a light bulb?
Answer: "How many did it take last year?"
Q: How many insurance agents does it take to change a light bulb?
Answer: That depends on whether the light bulb burned alone or with the whole house.
Q: Why is a CSRs like a mushroom?
Answer: Because they're kept in the dark, fed a lot of crap, and when they start to grow, they get canned.
Q: What do you get when you cross a monkey with a broker?
Answer: Nothing, there's some things even a monkey won't do.
Q: I asked a broker how many producers he had working for him?
Answer: He answered "about half of them".
____________________________________
Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
Thursday, September 11, 2008
Basic, Broad, Special
Property insurance provides three levels of coverage. Basic, Broad & Special. Basic is the cheapest to purchase, and Special is the most expensive, with Broad form in the middle.
Basic & Broad form only provide coverage for the perils that are listed. Special provides coverage for anything and everything, unless that peril is specifically excluded. See below for more information.
Basic
fire; lightning, explosion, windstorm or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, or volcanic action.
BroadBasic + falling objects, weight of ice, sleet or snow, and accidental water damage.
Special
When a property policy is written on a special form, the insurance company has a duty to specifically exclude coverage. Simply put, if the insurance company does not exclude coverage in writing, the damage to your property will be paid for. There are tons of common exclusions, for example: government action, nuclear hazard, war and military action, water damage (ie. flood), fungus, and pollution. At the end of the day, however, the special form gives you much more comprehensive insurance protection than the basic or broad forms.
____________________________________
Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
Basic & Broad form only provide coverage for the perils that are listed. Special provides coverage for anything and everything, unless that peril is specifically excluded. See below for more information.
Basic
fire; lightning, explosion, windstorm or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, or volcanic action.
BroadBasic + falling objects, weight of ice, sleet or snow, and accidental water damage.
Special
When a property policy is written on a special form, the insurance company has a duty to specifically exclude coverage. Simply put, if the insurance company does not exclude coverage in writing, the damage to your property will be paid for. There are tons of common exclusions, for example: government action, nuclear hazard, war and military action, water damage (ie. flood), fungus, and pollution. At the end of the day, however, the special form gives you much more comprehensive insurance protection than the basic or broad forms.
____________________________________
Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
Tuesday, September 9, 2008
Insurance Jokes Part 3
Life insurance agent to would-be client: "Don't let me frighten you into a hasty decision. Sleep on it tonight. If you wake in the morning, give me a call then and let me know."
Three Insurance salesman were sitting in a restaurant boasting about each companies service.The first one said, "When one of our insureds died suddenly on Monday, we got the news that evening and were able to process the claim for the wife and had mailed a check on Wednesday evening. "The second one said, "When one of our insured died without warning on Monday, we learned of it in 2 hours and were able to hand-deliver a check the same evening." The last salesman said, "That's nothing. Our office is on the 20th floor of a tall building. One of our insureds who was washing a window on the 85th floor, slipped and fell. We handed him his check as he passed our floor."
Several cannibals were recently hired by a health insurance agency. "You are all part of our team now," said the HR rep during the welcoming briefing. "You get all the usual benefits and you can go to the cafeteria for something to eat, but please don't eat any of the other employees." The cannibals promised. Four weeks later their boss remarked, "You're all working very hard, and I'm satisfied with you. However, one of our CSR's has disappeared. Do any of you know what happened to her?" The cannibals all shook their heads no. After the boss had left, the leader of the cannibals said to the others, "Which one of you idiots ate the CSR?" A hand rose hesitantly, to which the leader of the cannibals continued, "You fool! For four weeks we've been eating Producers and no one noticed anything, but noooooo, you had to go and eat the Customer Service Representative!"
"You ought to feel highly honored," said the businessman to the life insurance agent, "so far today I have had my secretary turn away seven insurance agents.""Yes, I know," replied the agent, "I'm them."
An insurance agent was teaching his wife to drive when the brakes suddenly failed on a steep, downhill grade."I can't stop!" she shrilled. "What should I do?""Brace yourself," advised her husband, "and try to hit something cheap."
Sad but true: One day when I was a new agent, I received a phone call from a lady saying that unfortunately she had to cancel her husband´s life insurance policy. "We always paid it in time", she said, "but since my dear husband´s sudden death last year I have had some financial hardship; therefore, I cannot pay it anymore."
A traveling insurance salesman was held up by a bad storm in the Hawaiian Islands. He sent an e-mail to his corporate headquarters advising them that he was stranded for a few days and requested instructions.The reply came back shortly: "Begin vacation as of yesterday."
____________________________________
Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
Three Insurance salesman were sitting in a restaurant boasting about each companies service.The first one said, "When one of our insureds died suddenly on Monday, we got the news that evening and were able to process the claim for the wife and had mailed a check on Wednesday evening. "The second one said, "When one of our insured died without warning on Monday, we learned of it in 2 hours and were able to hand-deliver a check the same evening." The last salesman said, "That's nothing. Our office is on the 20th floor of a tall building. One of our insureds who was washing a window on the 85th floor, slipped and fell. We handed him his check as he passed our floor."
Several cannibals were recently hired by a health insurance agency. "You are all part of our team now," said the HR rep during the welcoming briefing. "You get all the usual benefits and you can go to the cafeteria for something to eat, but please don't eat any of the other employees." The cannibals promised. Four weeks later their boss remarked, "You're all working very hard, and I'm satisfied with you. However, one of our CSR's has disappeared. Do any of you know what happened to her?" The cannibals all shook their heads no. After the boss had left, the leader of the cannibals said to the others, "Which one of you idiots ate the CSR?" A hand rose hesitantly, to which the leader of the cannibals continued, "You fool! For four weeks we've been eating Producers and no one noticed anything, but noooooo, you had to go and eat the Customer Service Representative!"
"You ought to feel highly honored," said the businessman to the life insurance agent, "so far today I have had my secretary turn away seven insurance agents.""Yes, I know," replied the agent, "I'm them."
An insurance agent was teaching his wife to drive when the brakes suddenly failed on a steep, downhill grade."I can't stop!" she shrilled. "What should I do?""Brace yourself," advised her husband, "and try to hit something cheap."
Sad but true: One day when I was a new agent, I received a phone call from a lady saying that unfortunately she had to cancel her husband´s life insurance policy. "We always paid it in time", she said, "but since my dear husband´s sudden death last year I have had some financial hardship; therefore, I cannot pay it anymore."
A traveling insurance salesman was held up by a bad storm in the Hawaiian Islands. He sent an e-mail to his corporate headquarters advising them that he was stranded for a few days and requested instructions.The reply came back shortly: "Begin vacation as of yesterday."
____________________________________
Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
Monday, September 8, 2008
Insurance Jokes Part 4
An insurance agent won a trip to Mexico City. Now he is trying to win a trip back home.
A couple I know enjoys getting away from their high-stress jobs in the city by spending a few weekends out camping and relaxing in their motor home. However, they often found their peace and quiet disturbed by well-meaning, but unwelcome, visits from other campers. So, they devised a plan to assure themselves some privacy. Now whenever they set up camp they place this sign on the door of their RV..."Insurance agent. Ask about our term-life package."
The other day my house caught fire. The insurance agent said, "Shouldn't be a problem. What kind of coverage do you have?"I said, "Fire and theft."Insurance agent frowned. "Uh oh. Wrong kind. Should be fire OR theft." Apparently, the only way I can make a claim with this coverage is if the house is robbed WHILE it's burning down.
Two women are playing golf when one of them ask the other, "Do you and your husband have mutual climax?" The other woman replies, "No, I think we have State Farm."
There´s a new insurance policy written especially for Jewish mothers. It´s called the "My Fault" policy.
A traveler wandering on an island inhabited entirely by cannibals comes upon a butcher shop. The shop specialized in human brains differentiated according to source. The sign in the shop read:
Actuary' Brains ... $9/lb
Loss Control Brains ... $12/lb
Underwriters' Brains ... $15/lb
Claims Adjusters' Brains ... $33/lb
Insurance Executives' Brains ... $87/lb
Life Insurance Salesmens' Brains ... $146/lb
Upon reading the sign, the traveler noted, "My, those insurance salesmens' brains must be something."To which the butcher replied, "Are you kidding! Do you have any idea how many of them you have to kill to get a pound of brains?!"
A Charlotte, North Carolina man, having purchased a case of rare, very expensive cigars, insured them against .... get this .... fire. Within a month, having smoked his entire stockpile of fabulous cigars, and having yet to make a single premium payment on the policy, the man filed a claim against the insurance company. In his claim, the man stated that he had lost the cigars in "a series of small fires."The insurance company refused to pay, citing the obvious reason that the man had consumed the cigars in a normal fashion. The man sued ... and WON!! In delivering his ruling, the judge stated that since the man held a policy from the company in which it had warranted that the cigars were insurable, and also guaranteed that it would insure the cigars against fire, without defining what it considered to be "unacceptable fire," it was obligated to compensate the insured for his loss. Rather than endure a lengthy and costly appeal process, the insurance company accepted the judge's ruling and paid the man $15,000 for the rare cigars he lost in "the fires." After the man cashed his check, however, the insurance company had him arrested... on 24 counts of arson! With his own insurance claim and testimony from the previous case being used as evidence against him, the man was convicted of intentionally burning the rare cigars and sentenced to 24 months in jail and a $24,000 fine.
After many years at sea, a pirate decided to retire. Since he had suffered injuries on the job, he thought that he should collect on his worker's compensation insurance. He had a wooden leg, a hook where his right hand should be and a patch over his right eye. The agent assured him that he would be compensated if the injuries were work related. "How did you get the wooden leg?" asked the agent.In a booming voice the pirate replied, "Me and me mates were on the high seas when the boom swang 'round and knocked me into the sea where a shark bit off me leg. "The agent replied, "That is certainly work related. How did you lose your hand?""Well matey, me and me mates were on the high seas when the boom swang 'round and knocked me into the sea where a shark bit off me hand," said the pirate. "That's also work related. Now how did you lose your eye?" asked the agent. The pirate replied, "Well matey, I was laying on the deck one balmy day catching some rays when this seagull flew by and dropped his duty right in me eye!" "What does that have to do with the loss of your eye?" said the agent."It were the first day with me hook!"
____________________________________
Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
A couple I know enjoys getting away from their high-stress jobs in the city by spending a few weekends out camping and relaxing in their motor home. However, they often found their peace and quiet disturbed by well-meaning, but unwelcome, visits from other campers. So, they devised a plan to assure themselves some privacy. Now whenever they set up camp they place this sign on the door of their RV..."Insurance agent. Ask about our term-life package."
The other day my house caught fire. The insurance agent said, "Shouldn't be a problem. What kind of coverage do you have?"I said, "Fire and theft."Insurance agent frowned. "Uh oh. Wrong kind. Should be fire OR theft." Apparently, the only way I can make a claim with this coverage is if the house is robbed WHILE it's burning down.
Two women are playing golf when one of them ask the other, "Do you and your husband have mutual climax?" The other woman replies, "No, I think we have State Farm."
There´s a new insurance policy written especially for Jewish mothers. It´s called the "My Fault" policy.
A traveler wandering on an island inhabited entirely by cannibals comes upon a butcher shop. The shop specialized in human brains differentiated according to source. The sign in the shop read:
Actuary' Brains ... $9/lb
Loss Control Brains ... $12/lb
Underwriters' Brains ... $15/lb
Claims Adjusters' Brains ... $33/lb
Insurance Executives' Brains ... $87/lb
Life Insurance Salesmens' Brains ... $146/lb
Upon reading the sign, the traveler noted, "My, those insurance salesmens' brains must be something."To which the butcher replied, "Are you kidding! Do you have any idea how many of them you have to kill to get a pound of brains?!"
A Charlotte, North Carolina man, having purchased a case of rare, very expensive cigars, insured them against .... get this .... fire. Within a month, having smoked his entire stockpile of fabulous cigars, and having yet to make a single premium payment on the policy, the man filed a claim against the insurance company. In his claim, the man stated that he had lost the cigars in "a series of small fires."The insurance company refused to pay, citing the obvious reason that the man had consumed the cigars in a normal fashion. The man sued ... and WON!! In delivering his ruling, the judge stated that since the man held a policy from the company in which it had warranted that the cigars were insurable, and also guaranteed that it would insure the cigars against fire, without defining what it considered to be "unacceptable fire," it was obligated to compensate the insured for his loss. Rather than endure a lengthy and costly appeal process, the insurance company accepted the judge's ruling and paid the man $15,000 for the rare cigars he lost in "the fires." After the man cashed his check, however, the insurance company had him arrested... on 24 counts of arson! With his own insurance claim and testimony from the previous case being used as evidence against him, the man was convicted of intentionally burning the rare cigars and sentenced to 24 months in jail and a $24,000 fine.
After many years at sea, a pirate decided to retire. Since he had suffered injuries on the job, he thought that he should collect on his worker's compensation insurance. He had a wooden leg, a hook where his right hand should be and a patch over his right eye. The agent assured him that he would be compensated if the injuries were work related. "How did you get the wooden leg?" asked the agent.In a booming voice the pirate replied, "Me and me mates were on the high seas when the boom swang 'round and knocked me into the sea where a shark bit off me leg. "The agent replied, "That is certainly work related. How did you lose your hand?""Well matey, me and me mates were on the high seas when the boom swang 'round and knocked me into the sea where a shark bit off me hand," said the pirate. "That's also work related. Now how did you lose your eye?" asked the agent. The pirate replied, "Well matey, I was laying on the deck one balmy day catching some rays when this seagull flew by and dropped his duty right in me eye!" "What does that have to do with the loss of your eye?" said the agent."It were the first day with me hook!"
____________________________________
Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
Replacement Cost (RC) versus Actual Cash Value (ACV)
When purchasing a property policy, one decision you will need to make, is whether or not to buy your coverage with "Replacement Cost" (RC) or "Actual Cash Value" (ACV)
Replacement Cost means, "the cost to replace an item or structure to its pre-loss condition"
Actual Cash Value means, "replacement Cost less depreciation.
In simple terms, assume you had a TV that was 5 years old, and it was damaged in a fire. Under Replacement Cost, the insurance company would give you enough money to buy a NEW television. Under Actual Cash Value, they would give you the money your old, used TV was worth, and it probably wouldn't be enough to but a new one.
Sometimes insurance companies will only offer ACV if they feel there is a greater risk of a loss, such as on a building that has not been updated in some time.
This is definitely a coverage that you should pay attention to on your policies, as a policy with ACV will usually be far cheaper than a policy with RC, and for good reason.
____________________________________
Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
Replacement Cost means, "the cost to replace an item or structure to its pre-loss condition"
Actual Cash Value means, "replacement Cost less depreciation.
In simple terms, assume you had a TV that was 5 years old, and it was damaged in a fire. Under Replacement Cost, the insurance company would give you enough money to buy a NEW television. Under Actual Cash Value, they would give you the money your old, used TV was worth, and it probably wouldn't be enough to but a new one.
Sometimes insurance companies will only offer ACV if they feel there is a greater risk of a loss, such as on a building that has not been updated in some time.
This is definitely a coverage that you should pay attention to on your policies, as a policy with ACV will usually be far cheaper than a policy with RC, and for good reason.
____________________________________
Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
What is coinsurance?
Coinsurance is a penalty imposed on the insured by the insurance carrier for under reporting/declaring/insuring the value of tangible property or business income. The penalty is based on a percentage stated within the policy and the amount under reported.
As an example:
A building actually valued at $1,000,000 has an 80% coinsurance clause but is insured for only $750,000. Since its insured value is less than 80% of its actual value, when it suffers a loss, the insurance payout will be subject to the underreporting penalty. For example: It suffers a $200,000 loss. The insured would recover $750,000 ÷ (.80 × 1,000,000) × 200,000 = $187,500 (less any deductible).
In this example the underreporting penalty would be $12,500.
The most commonly issued coinsurance percentage would be 80% but can be as high as 100%. The latter [100%] would impose the greatest penalty for under reporting. For this reason, it is vital that values of property are accurately reported and updated annually to reflect inflation and other increases in cost.
CArriers may also choose to offer "Agreed Amount". This effectively eliminates the coinsurance clause of an insurance policy. Most carriers wil require a minimum amount per sq ft in order to offer Agreed Amount.
____________________________________
Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
As an example:
A building actually valued at $1,000,000 has an 80% coinsurance clause but is insured for only $750,000. Since its insured value is less than 80% of its actual value, when it suffers a loss, the insurance payout will be subject to the underreporting penalty. For example: It suffers a $200,000 loss. The insured would recover $750,000 ÷ (.80 × 1,000,000) × 200,000 = $187,500 (less any deductible).
In this example the underreporting penalty would be $12,500.
The most commonly issued coinsurance percentage would be 80% but can be as high as 100%. The latter [100%] would impose the greatest penalty for under reporting. For this reason, it is vital that values of property are accurately reported and updated annually to reflect inflation and other increases in cost.
CArriers may also choose to offer "Agreed Amount". This effectively eliminates the coinsurance clause of an insurance policy. Most carriers wil require a minimum amount per sq ft in order to offer Agreed Amount.
____________________________________
Jonathan S. Carroll, ASLI, CRIS
Bradley & Parker
320 S. Service Rd, Melville, NY 11747
O - (631) 981-7600
D - (631) 650-4034
C - (917) 376-0075
F - (631) 981-7681
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