September 2008 Archives

Following the U.S. Federal Reserve's US$85-billion bailout of the American International Group Inc., the International Association of Insurance Supervisors (IAIS) says it is "taking steps to intensify supervisory coordination efforts in response to the current financial market turmoil."
Key insurance supervisors from around the globe were recently updated on matters relating to American International Group (AIG) and agreed they would hold regular conference calls in the coming weeks to monitor solutions to supervisory issues, the IAIS announced in a press release.

Buying insurance is subject to a different rule of law than buying things such as buildings, cars, or refrigerators.

The general rule applicable to most purchases is "let the buyer beware." This has been much modified in these days of consumerism but still applies to many sales between private individuals, which is why you should be very careful buying a secondhand car from someone you don't know.

Insurance, by contrast, is subject to the rule of the "utmost good faith"

This means in practice that a business person taking out insurance must tell the insurance broker everything that would affect an underwriter's judgement in deciding whether or not to issue a policy or what premium to charge.

Just as the lawyers say, the applicant must disclose all the material facts. If these are not disclosed and the actual situation comes to light following a loss, the insurance company can say in effect "the risks are not what you said they were" _ and they don't have to pay. So come clean or you will probably have a useless piece of paper instead of policy worth thousands of dollars.

Kanetix.ca has released the top 10 most popular hybrids quoted for 2008, as determined by auto insurance quotes sought on the site.
The top 10-quoted hybrids for the first six months of 2008 are:
• Toyota Prius
• Honda Civic Hybrid
• Toyota Camry Hybrid
• Ford Escape Hybrid
• Toyota Highlander Hybrid
• Lexus RX400h
• Honda Accord Hybrid
• Nissan Altima Hybrid
• Chevrolet Malibu Hybrid
• Saturn Vue Green Line Hybrid
With the rising cost of gas prices, the hybrid market seems to be steadily rising as well, according to a kanetix.ca release.
"In the first six months of 2008, hybrid auto insurance quotes on our site have already reached 74% of 2007's total," George Small, co-founder of kanetix.ca, explains in the release. "If the trend continues, 2008's total hybrid quote activity should not only match 2007 but actually exceed it by almost 50%."
Hybrids are marketed as an environmentally friendly way to save you gas money, Gregory Ellis, co-founder of kanetix.ca notes in the release. "Of course, when it comes to money-saving potential there are other considerations, too -- like the cost of insurance."