Phyllis Van Wyhe
CPCU, CIC, CSP
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The Van Wyhe Group
E-NewsLetter | PO Box 4130
Waukesha, WI 53187
Phone (800)326-4741 Fax (800)476-2945 January 1, 2009 |
| Is the Market Turning Hard?A couple of months ago, an agent in Ohio told me he was having trouble with a major carrier’s interpretation of the professional liability exclusion on BOPs written for artisan contractors. The company said the exclusion applied whenever the insured had “specialized knowledge or skills.” Donald Malecki, the liability guru, mentioned the same concept in a recent column, citing court cases where carriers had tried the same tactic unsuccessfully. Watch for carriers getting more aggressive on claims. In a related vein, a recent article in Business Insurance cited a concern about standard carriers adding “classification limitations” onto the dec page of a standard CGL. Under the policies, if an insured adds operations or if the current operations do not fit squarely within the classification limitations, related losses would not be covered. The title of the article, “Curb on CGL Coverage Creeping into Market,” says it all. Check renewals over carefully for changes. We are all anxiously watching for pricing increases in a market that has been too soft for too long. It is also good to remember that there are other symptoms of a hardening market; we need to watch for them also.
Seeing changes in the market and willing to share? Contact me at phyllis@insurancece.com. I appreciate it and I’ll pass it along.
New Term: “Longevity Insurance”With seniors worried about outliving their money, major carriers (New York Life, Met-Life, and Hartford) are pushing a new product – Longevity Insurance - as a solution. The individual pays a lump sum now to get a guaranteed monthly payment once they reach a specified age – usually 85. It’s actually an old product – a deferred annuity – and not always the best financial decision at a time when average life expectancy is still under 80. The carriers marketing the product have simply put a new shade of lipstick on a very tired pig.
Pet ParadeAgents tell me when they see new coverages so I have been aware that the Progressive auto policy includes $500 of pet injury coverage for cats and dogs injured in an auto accident. Now Progressive has added a people’s choice Pet of the Week contest to their website. Owners upload pictures of their four-footed friends; website visitors vote for their favorites. I first thought it was just more lipstick on that old pig, Affinity Marketing. But when I went to progressive.com to check it out, I also found a blog and links to MySpace. Then I realized it goes much, much deeper. Don’t see the bigger picture? Find a teenager, any teenager; they’ll be able to fill you in.
Quote of the Month:“Our technology has outstripped our humanity.” Albert Einstein We Are:InsuranceCe is brought to you by The Van Wyhe Group, an education firm coaching agents in ways to add value to the insurance transaction. Agents who master adding value attract business rather than chase it. | |
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