tag:blogger.com,1999:blog-34674652653343334972024-03-02T02:50:37.306-05:00Agent Broker ProducerResources for Today's Insurance ProfessionalUnknownnoreply@blogger.comBlogger25125tag:blogger.com,1999:blog-3467465265334333497.post-28715609074626265192014-04-04T15:20:00.001-04:002014-04-04T15:24:01.061-04:00Professor Taylor describes the Gini CoefficentThere is a great deal of talk about the growing distance between the "haves" and "have nots" in the country, with much of the conversation centering on inequality (by way of example see <a href="http://stumblingandmumbling.typepad.com/stumbling_and_mumbling/2014/04/the-state-inequality.html" target="_blank">here</a>, <a href="http://economix.blogs.nytimes.com/2014/04/02/the-wealth-gap-is-growing-too/" target="_blank">here</a>, <a href="http://www.washingtonpost.com/opinions/harold-meyerson-how-capitalism-enriches-only-the-few/2014/04/02/f2295a5e-ba95-11e3-9a05-c739f29ccb08_story.html" target="_blank">here</a>, and <a href="http://scalar.usc.edu/works/growing-apart-a-political-history-of-american-inequality/table-of-contents?path=index" target="_blank">here</a>.)<br />
<br />
<br />
<br />
In many discussions, the measure for differences in equality is the so-called Gini Coefficient. This is described succinctly by <b><a href="http://timothytaylor.net/" target="_blank">Professor Tim Taylor</a> </b>in his blog, <b>Conversable Economist. </b>He notes that the Gini Coefficient was developed by the Italian statistician <a href="http://en.wikipedia.org/wiki/Corrado_Gini" target="_blank"><b>Corrado Gini</b></a> in 1912.* The Gini Coefficient represents a full range of data on income distribution as a single number, making it useful for comparisons.<br />
<br />
<br />
<br />
Taylor points out that the Gini, like any descriptive tool, has its limits. For example, because it distills a single number from the overall distribution of income, it loses some measure of detail. As an example, Professor Taylor provides the following: if the Gini coefficient has risen, is this because the share going to the top 20% went up, or the top 10%, top 1%, or top 0.1%?<br />
<br />
<br />
<br />
You can read the post in its entirety at <a href="http://conversableeconomist.blogspot.com/2014/04/whats-gini-coefficient.html?spref=bl">CONVERSABLE ECONOMIST: What's a Gini Coefficient?</a><br />
<br />
<br />
<br />
*As Taylor notes, Corrado Gini was, as well as a statistician, a fascist theorist who wrote <b>The Scientific Basis of Fascism. </b>(Go figure.)Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-3467465265334333497.post-59669658838138169252014-03-28T09:59:00.001-04:002014-03-28T10:04:01.275-04:00Hoping for an enlightened responseRobert Laszewski at <b><a href="http://healthpolicyandmarket.blogspot.com/" target="_blank">Health Care Policy Marketplace Review</a></b> has an interesting post, the link to which can be accessed below. He notes that "health insurance companies have to submit their new health insurance plans and rates between May 27 and June 27 for the 2015 Obamacare open-enrollment period beginning on November 15th" and that "[a]ny major modifications to the current Obamacare regulations need to be issued in the next month to give the carriers time to adjust and develop new products." He argues that if the current version of health reform is to succeed, the insurance companies need to offer better plans that more realistically fit the middle market. As he states, "health insurance plans that cost middle-class individuals and families 10% of their after-tax income and have average Silver Plan deductibles of more than $2,500 a month are not attractive and people won't buy them any more enthusiastically next fall than they already have." It will be interesting to see how the major carriers react.<br />
<br />
<br />
<a href="http://healthpolicyandmarket.blogspot.com/2014/03/the-one-thing-that-could-save.html?spref=bl">Health Care Policy and Marketplace Review: The One Thing That Could Save Obamacare––And The O...</a>: To properly price the exchange health insurance business going forward the carriers have to sharply increase the rates. A senior executive ...Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-3467465265334333497.post-34491258655983498152014-03-14T09:47:00.000-04:002014-03-14T09:47:07.322-04:00FINRA and the U.S. economyPlease visit RIABiz and check out the new series by Ron Rhoades, the first part of which is titled <b><a href="http://www.riabiz.com/a/22918833/why-keeping-finra-from-ruling-rias-is-critical-to-these-firms-the-investor----and-even-the-us-economy" target="_blank">Why Keeping FINRA from ruling RIAs is critical to these firms, the investor -- and even the U.S. economy.</a> </b>Rhoades includes plenty of links and references to previous articles he has written on the subject. Here is a sample quote from the article:<br />
<blockquote class="tr_bq">
FINRA’s long-standing protection of its members’ excessive rent-taking has led to a crisis in American capitalism, negative implications for U.S. economic growth, and a dismal personal financial outcome in retirement for tens of millions of Americans.</blockquote>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-76737948709136427542014-03-13T08:30:00.000-04:002014-03-13T08:30:00.316-04:00How to rob a bank: William Black at TEDxUMKC<iframe allowfullscreen="" frameborder="0" height="270" src="//www.youtube.com/embed/-JBYPcgtnGE" width="480"></iframe>)<br />
<br />
<a href="http://law.umkc.edu/faculty-staff/people/black-william.asp" target="_blank"><b>Bill Black</b></a> -- a U of M Law School alumnus, by the way -- is a premier expert on white collar crime and developer of the "control fraud" concept. He was a major government player in uncovering the S & L scandal of the late '80s and early '90s (remember the "<a href="http://en.wikipedia.org/wiki/Keating_Five" target="_blank"><b>Keating Five</b></a>?") This TED talk is an excellent overview of what remain our significant challenges relating to the control and regulation of our financial institutions. Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-9571688207331891392014-03-12T11:21:00.000-04:002014-03-12T11:21:21.167-04:00"Attack of the Claim Drones"We are most used to hearing about drones, or unmanned aircraft, in the context of the military and international conflicts. The use of drones, however, is not limited to this sphere of operation, and drones are currently at use domestically for public safety, disaster mitigation, and environmental and climate monitoring. The<b> Insurance Journal</b> <b><a href="http://www.insurancejournal.com/news/national/2014/03/07/322658.htm" target="_blank">reports</a></b> that the industry group Association of Unmanned Vehicle Systems International (AUVSI) has been lobbying the FAA to make changes to its regulations that would allow air space for unmanned vehicles and permit a greater range of government and commercial uses for drones.<br />
<br />
The linked article provides an overview of the possibilities and challenges of using drones for insurance claim operations. On the one hand, they provide unmatched speed to the area where a loss has occurred, as well as aerial views not easily achieved by the human adjuster. Not only would this reduce the need for skilled adjusters, it would also reduce the company's number of worker comp claims, as fewer adjusters would be in the field.<br />
<br />
On the other hand, adoption of drones creates another potential skills-bottleneck, as the need for drone operators would increase. In addition, even if the FAA makes adjustments in its regulations, there is still a host of legal and privacy issues relating to drone use that would have to be addressed.<br />
<br />
While this is just speculation, one can expect that, given the combination of human nature, the drive to adopt new technologies, and the potential to reduce the size and liabilities of its workforce, that insurers will explore the use of drones aggressively in the near future. Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-25765625435067639052014-03-10T12:11:00.000-04:002014-03-10T12:11:33.260-04:00Housing-related goods, seven years laterAtif Mian and Amir Sufi at <b><a href="http://houseofdebt.org/2014/03/08/the-great-housing-hangover.html" target="_blank">House of Debt</a></b> blog note that spending on housing-related goods -- i.e., retail spending on furniture, appliances, and home improvement -- remains below its 2006 level in 2013, and emphasize that this is gap is reported in nominal terms, meaning that adjusting for inflation make the gap even larger. They go on to ask a number of interesting and important questions as tease for their (forthcoming in May) book, <b>House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent it From Happening Again</b>. A link to the publisher's book page with additional information is available <b><a href="http://press.uchicago.edu/ucp/books/book/chicago/H/bo17241623.html" target="_blank">here</a></b>.<br />
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-82625040510705590472014-03-05T09:34:00.000-05:002014-03-05T09:34:24.790-05:00Trouble around the bend<b><a href="http://www.housingwire.com/articles/29187-is-the-next-wave-of-mortgage-trouble-about-to-reset?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29" target="_blank">HousingWire</a></b>, citing Springboard Nonprofit Consumer Credit Management, notes that trouble may be coming soon for borrowers with HELOCs, as almost half of all HELOCs -- to the sum of $221 billion -- will reset in the next four years. A major reason for concern is that the article cites data showing the majority of HELOCs outstanding today were taken out between 2004 and 2009. Many of these loans during this time span are designed with lower payment terms for the first 10 years before resetting, in most cases, to fully amortizing loans. Depending on the specific terms and amounts of the loan, consumers could see substantial increases in monthly payment amounts.Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-3467465265334333497.post-72534952563308664352014-03-03T11:56:00.000-05:002014-03-03T11:56:02.567-05:00The cost of winterRoof collapses and auto accidents, downed tree limbs and power lines, business interruption and supply chain losses: Old Man Winter has packed a punch this year. And just think; winter is not officially over until March 19th!<br />
<br />
An estimated $1.5 billion of insured losses already have been attributed to this season's weather. This figure, <b><a href="http://www.iii.org/press_releases/2014-poised-to-become-one-of-the-top-5-costliest-winters-since-1980.html" target="_blank">reported by the Insurance Information Institute</a></b>, is an estimate from PCS, a division of Verisk Analytics, that covers events occurring between January 1 and February 21, 2014 with more than 175,000 claims paid to policyholders. As the $1.5 billion figure includes only two of the four 2014 winter storms to date, it is certain that the final tally will prove significantly larger.<br />
<br />
Insured losses from winter was $2 billion in 2013, and the final total for 2014 is certain to exceed that figure. It is expected that the 2014 winter will enter the record books among the top five costliest since 1980.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-46377838632357982582014-02-28T11:21:00.000-05:002014-02-28T11:21:59.541-05:00Give us healthcare plans with broad networks...unless they're (that much more) expensiveThe <b><a href="http://kff.org/" target="_blank">Kaiser Foundation</a></b> continues to do great work following the issues related to healthcare reform and its implementation. One tool that they use is an ongoing tracking poll to survey the public's response to the law. This month's poll shares a number of data points, one of which concerns an issue that has been garnering more media attention lately, namely the so-called "narrow network" plans.<br />
<br />
According the February tracking poll, about half of those surveyed (51 %) stated preference for a plan that costs more money but allows them to see a broader range of doctors and hospitals. However -- and despite our best intentions, there always seems to be a "however" -- upon being informed that they could save up to 25 % on their health care costs, that number drops from 51 to 37 % among the public overall, and from 35 % to 22 % among those to whom the law is directed: the uninsured and those with non-group coverage. The actual poll can be accessed <a href="http://kff.org/health-reform/poll-finding/kaiser-health-tracking-poll-february-2014/" target="_blank"><b>here</b></a>.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-48505548398555977152014-02-27T16:42:00.000-05:002014-02-27T16:42:56.465-05:00Duly notedThe Michigan DIFS has issued Bulletin 2014-04-INS, adopting the NAIC's Uniform Certificate of Authority Application (UCAA). The bulletin can be accessed<a href="http://www.michigan.gov/documents/difs/Bulletin_2014-4-INS_448927_7.PDF" target="_blank"> <b>here</b></a>.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-35851261158873900512013-10-18T09:10:00.000-04:002013-10-18T09:10:11.099-04:00Reasons for staying the courseThe <a href="http://www.ebri.org/">Employee Benefit Research Institute</a> has released a new study showing that investors who were able to weather the storm of the financial crisis and continue their 401(k) positions have been rewarded with positive returns. According to the report, the average 401(k) account balance for participants consistently participating in their 401(k) plans for the four years from 2007 through 2011 was up 23.5 percent at year-end 2011 compared with year-end 2007, despite the sharp decline caused by the bear market in 2008. The full report can be accessed<a href="http://www.ebri.org/publications/ib/index.cfm?fa=ibDisp&content_id=5283"> here</a>.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-37798882089484187352013-09-11T16:56:00.003-04:002013-09-11T16:57:21.214-04:00Remembering the financial crisisVia the links for today at <a href="http://www.nakedcapitalism.com/2013/09/links-91113.html">Yves Smith's <b>Naked Capitalism</b> blog</a>, there is a link to Investor Home that opens a treasure trove of resources pertaining to the economic crisis. In particular, there is a <a href="http://www.investorhome.com/crisisbooks.htm">comprehensive listing of books.</a> Well worth checking out!Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-47968623188907188632013-09-06T09:52:00.000-04:002013-09-06T09:52:00.551-04:00Life Insurance Awareness MonthSeptember is<a href="http://www.lifehappens.org/life-insurance-awareness-month/"> Life Insurance Awareness Month</a>. Most producers in the life insurance field are aware of this, but not all bother to fully leverage the resources made available to them -- many of which are free -- by the event's sponsor, the Life and Health Insurance Foundation for Education (LIFE). If it has been awhile since you have visited their website, you should take the time to do so today. Be sure to check out their <a href="http://www.lifehappens.org/industry-resources/">Industry Resources tab</a>, from which you can access sales tips, social media tools, and marketing products.<br />
<br />
While the best known, Life Insurance Awareness Month is not the only awareness campaign supported by the Foundation. Be sure to also investigate the tools they offer for <a href="http://www.lifehappens.org/disability-insurance-awareness-month/">Disability Awareness Month</a> (May) and the ongoing <a href="http://www.lifehappens.org/insure-your-love/">Insure Your Love</a> and <a href="http://www.lifehappens.org/life-happens/">Life Happens</a> campaigns. Each offers free and for purchase materials that are of very high quality.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-30322991802896677202013-08-29T11:13:00.001-04:002013-08-29T11:13:33.681-04:00Resources for understanding the Affordable Care ActAs the ACA continues to unfold, the full complexity of the law and its impacts can seem daunting. This sense of being overwhelmed can be as true for insurance producers and benefits providers as it is for small business owners.<br />
<br />
There are, fortunately, a host of information resources available online. The <a href="http://michbusiness.org/">Michigan Business and Professional Association</a> offers its <b>Small Business Health Care Reform Guide and Employer Checklist: What the Affordable Care Act Means for Michigan Small Businesses</b> through the <a href="http://michbusiness.org/procs/business-knowledge/healthcare-reform-connect/archive">Health Reform Connect(TM)</a> section of its website. The Detroit Regional Chamber of Commerce hosts <a href="http://www.mihealthanswers.com/">MI Health Answers</a>, and the Department of Financial and Insurance Services offers the <a href="http://www.michigan.gov/difs/0,5269,7-303-12902_35510-279964--,00.html">Health Insurance Consumer Assistance Program</a>. <br />
<br />
In addition to these, webinars are available as well. The Small Business Administration and Small Business Majority conduct the free <a href="http://www.smallbusinessmajority.org/blog/small-business-majority/healthcare/affordable-care-act-101-weekly-webinar-series/"><b>Affordable Care Act 101</b> webinar series on a weekly basis</a>. In this series, SBA reps go through the key pieces of the law, focusing on concerns of small business owners.<br />
<br />
For a "big picture" overview that focuses on state policy initiatives, the <a href="http://www.nashp.org/">National Academy for State Health Policy</a> conducts webinars on an ongoing basis. Of particular interest as we approach the October 1st roll-out for exchanges is <b><a href="http://www.nashp.org/webinar/all-hands-deck-state-plans-consumer-assistance">All Hands on Deck: State Plans for Consumer Assistance.</a></b> This webinar, offered on September 11th from 1:30 to 3:00 pm EDT, will highlight the key features of consumer assistance strategies being employed by exchanges.<br />
<div>
<br /></div>
<br />
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-78638630596678935522013-08-28T11:31:00.003-04:002013-08-28T11:31:57.813-04:00September is National Preparedness MonthSeptember is National Preparedness Month, and FEMA invites members of the public to <a href="http://community.fema.gov/connect.ti/READYNPM/register?nextURL=%2Fconnect.ti%2FREADYNPM%2FjoinGroup%3FSHOWREG%3D%26NEXTURL%3D%26AJAXMODE%3D%26DONE%3D%26ISAJAX%3DN&utm_campaign=NPC2013&utm_medium=Email&utm_source=FEMA">join the National Preparedness Community</a> along with more than 32,000 people and collaborate on emergency preparedness.<br />
<br />
From their website you can <a href="http://community.fema.gov/connect.ti/readynpm/view?objectId=3200688">download the <b>2013 National Preparedness Month Toolkit</b></a><b>.</b> The Toolkit has a wide range of resources, and a section dedicated to prepardness questions for small business owners. The ideas within can be used for one's own business, and shared with colleagues and clients. Along with providing important information, the concepts within are a great way to discuss different risk exposures and coverage gaps.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-30115167764952195952013-08-26T12:07:00.001-04:002013-08-26T12:07:56.824-04:00The lonely status of Morgan StanleyFrom today's online <b><a href="http://finance.fortune.cnn.com/2013/08/26/morgan-stanley/">Fortune</a></b> we read that five years after the Lehman bankruptcy, <a href="http://finance.fortune.cnn.com/2013/08/26/morgan-stanley/">Morgan Stanley is the lone big bank that has not paid a federal fine relaying to the crisis.</a> What is more, neither the firm nor any of its bankers currently face any federal accusations!<br />
<br />
The article makes it clear that a federal action could still occur, but notes -- in a stand-alone sentence that seems to frown with disappointment -- it is possible the firm "didn't do anything wrong in the run up to the financial crisis." This statement is immediately followed by a brief overview of private lawsuits from investors who would "seem to disagree."<br />
<br />
At the <a href="http://www.sec.gov/spotlight/enf-actions-fc.shtml">SEC website</a> there is a list of big banks that have paid fines for "activities" relating to the financial crisis. Morgan Stanley's name is conspicuously absent from this list, and while that should be noted and applauded while it stands, one has to wonder about the lack of vigor shown by Washington and the SEC to take action on this issue. To date, the SEC has charged 161 firms or individuals, and garnered $2.7 billion in fines. Isolated from the overall context of the issue, this may seem impressive. However, consider this: the <a href="http://www.dallasfed.org/news/releases/2013/nr130729a.cfm">Dallas Fed estimates that the total cost of the financial crisis to range from $6 trillion to $14 trillion.</a> The hoary details can be accessed from a pdf download of the full report available <a href="http://dallasfed.org/assets/documents/research/staff/staff1301.pdf">here</a>. In light of the sheer scale of the crisis, $2.7 billion sounds...well, meager.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-43903276523441374622013-08-22T11:15:00.000-04:002013-08-22T11:15:26.685-04:00Like oil and water: fracking, residential mortgages and insuranceFracking is the colloquial term for the hydrofracturing and subsequent extraction of oil and gas-bearing shales. The "fracturing" part of the process breaks up shale rock deep underground through the application of water and chemicals under extremely high pressure. While fracking has created jobs and delivered energy resources, it does not come without a host of negative consequences.<br />
<br />
The negative effects of fracking most often reported in the media and by environmental groups relate primarily its potential to damage and pollute the soil, water, and air. Yet along with these known risks, writes <a href="http://grist.org/author/roger-drouin/">Roger Drouin</a> in a <a href="http://grist.org/climate-energy/fracking-boom-could-lead-to-housing-bust/"><b>Grist</b> article titled <b><i>Fracking boom could lead to housing bust</i></b></a>, another set of risks looms large: its doleful effects on the residential property market.<br />
<br />
In his article, Drouin cites the <a href="http://grist.files.wordpress.com/2013/08/rider.pdf">Mineral, Oil and Gas Rights</a> rider in loan paperwork from Sovereign Bank says the mortgage will be automatically recalled if the property owner transfers any oil or gas rights or allows any surface drilling activity. It also specifies that owners must “take affirmative steps to prevent the renewal or expansion” of a current gas lease.<br />
<br />
None of this should be surprising, really. It was reported in a <a href="http://www.nytimes.com/2012/03/19/us/drilling-property-mortgages-may-get-closer-look-from-agriculture-dept.html?_r=3&hp&">2012 article in the <b>New York Times</b></a> that the Department of Agriculture was considering requiring an extensive environmental review before issuing mortgages under its Rural Housing Service program to people who have leased their land for oil and gas drilling. The Federal Housing Administration’s lending guidelines prohibit financing for homes within 300 feet of a property with “an active or planned drilling site.” Fannie Mae and Freddie Mac also prohibit property owners from signing a gas lease. The result of all this is that many owners are now in “technical default” under the terms of their mortgage if they signed a gas lease without first getting consent from their lender.<br />
<br />
Insurance is another issue. Drouin notes that real estate experts see a trend in homeowners insurance policies not covering residential properties with a gas lease or gas well. This directly impacts any property transactions, as mortgage companies require homeowners insurance from their borrowers.<br />
<br />
It is easy to see <i>why</i> fracking does not mix with homeowners insurance. As reported in the <b><a href="http://www.catskillmountainkeeper.org/our-programs/fracking/whats-wrong-with-fracking-2/mortgage-problems/">Catskill Mountainkeeper</a></b>, gas companies can sell a gas lease to anyone they choose <i>without telling the homeowner.</i> Subsequently, the homeowner has lost control over who comes onto their property to drill and the quality of work they perform. In addition, neither homeowner’s insurance nor the gas lease covers risks from accidents, such as methane leaks, chemical spills, and blowouts that can come with gas drilling, and it is hard to envision a carrier being enthusiastic about underwriting coverage for those perils.<br />
<br />
Title insurance may also be adversely affected, as a gas lease may void title insurance should the policy not cover commercial ventures. The <b>Catskill Mountainkeeper</b> notes that "[t]he fine print in most title insurance policies in New York State contains specific exclusions that have the potential to void title insurance coverage for any commercial venture, including any of the common activities of commercial drilling, storage, or transmission of gas that occur on a residential property" and that "it’s likely that even if someone were able to buy a property with a gas lease, they would be unable to get title insurance."<br />
<br />
To learn more, read Elizabeth N. Radow's article, <a href="http://www.nysba.org/AM/Template.cfm?Section=Home&ContentID=57132&Template=/CM/ContentDisplay.cfm"><i><b>Homeowners and Gas Drilling Leases: Boom or Bust? </b></i>from the November/December 2011 issue of the <b>NYSBA Journal.</b> </a>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-3467465265334333497.post-64584596396984497982013-08-21T11:50:00.001-04:002013-08-21T11:50:53.715-04:00Affordable Care Act Guidebook available from Congressman John DingellA longtime supporter of health insurance reform, Michigan Rep. John Dingell, D-District 12, recently announced the release of a new guidebook to help Michigan residents better understand and take advantage of the various facets of the Affordable Care Act. During a <a href="http://dearborn.patch.com/groups/politics-and-elections/p/dingell-unveils-affordable-healthcare-act-guidebook_51d658f2">press conference at Oakwood Hospital & Medical Center in Dearborn</a>, Dingell said the guidebook "explains what the Affordable Care Act means to individuals," noting also that "it will explain tax credits to small businesses, and it will tell you how to navigate the system and select a healthcare plan that is best tailored to your needs." The book, titled <i><b><a href="http://dingell.house.gov/how-affordable-care-act-helps-you">The ABC's of Navigating the Affordable Care Act: A Resource Guide to Understanding Your Rights, Responsibilities, and Choices</a> </b></i>can be viewed and downloaded at the Congressman's website, <a href="http://dingell.house.gov/">dingell.house.gov</a>.<br />
<br />Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-70922151415417459132013-08-20T10:54:00.002-04:002013-08-20T10:54:44.711-04:00Some welcome news on industry employment numbersThe August 12, 2013 edition of <a href="http://www.propertycasualty360.com/2013/08/12/agents-and-brokers-add-jobs-in-june-after-6-month">PropertyCasualty360</a> reports that the PC industry added 1,500 new agent and broker jobs in June. This growth follows the trend of other insurance subsectors, and is a welcome reversal of the past six months of declining numbers.<br />
<br />
Michigan has experienced this uptick in hiring within the insurance industry, and this matches the expected trend. At the <a href="http://milmi.org/cgi/databrowsing/occExplorerQSDetails.asp?menuChoice=occExplorer&geogArea=2601000000&soccode=413021">Michigan Labor Market Information</a> website, annual average openings are expected to be 429, and the state's overall level of insurance industry employment is thought to grow to 13,200, an increase of 14.1% from 2010's figures.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-28697266497165038272013-03-15T11:24:00.001-04:002013-03-15T11:24:37.181-04:00Meeting the new Annuity Suitability training requirement<br />
<b>Background</b><br />
<br />
In March of 2010, the National Association of Insurance Commissioners (NAIC) finalized its Suitability in Annuities Regulation, which requires anyone selling annuity products receive mandatory suitability and product training.<br />
<br />
This action was taken to protect consumers. The intention of the regulation is this: by establishing standards to ensure all annuity producers are trained in the new suitability requirements, annuity products will be represented accurately.<br />
<br />
<b>Not a New Continuing Education Requirement </b><br />
<br />
Annuity suitability training is not a new continuing education requirement and – this is important – it is the insurance carriers, not the state insurance departments, who must validate the compliance of their producers.<br />
<br />
<b>But the Individual States are Still Involved</b><br />
<br />
Although the regulation puts the burden of compliance on the carriers and producers, states retain the right to decide the specific details of the training requirement upon implementation. This means that, while all training courses will follow the NAIC’s template (e.g. courses must be 4 hours in length), each state will address specific aspects within the broader context of the regulation, and one can expect some variation in content from state-to-state.<br />
<br />
<b>And the Education Providers Still Play a Role</b><br />
<br />
In addition, even though the regulation requires carriers to develop standards for product training and must validate that its brokers and producers are in compliance, the suitability training must be taken through a state-authorized continuing education (CE) provider. With CE providers offering the training, it is expected that the courses will be approved for CE credit, and can be applied to the producer’s record in order to meet the resident state’s mandatory requirement.<br />
<br />
Because CE credit is optional, however, there are some things producers should watch for. First, they should make sure the training course has been submitted and approved for CE. In addition, producers need to keep in mind that while they typically receive reciprocal credit from non-resident states for meeting license requirements in their resident states, reciprocal credit is granted for meeting another state's similar training requirement. It is impossible to meet a requirement that has not yet been implemented in one’s resident state, so completing a course prior to the effective date is not valid for reciprocal credit from another state in which the requirement is already effective.<br />
<br />
Completing a course should result in the issuance of a Certificate of Completion that indicates the following: date of course completion, state for which the training was approved, course name and course number. A certificate that does not include this information is not proof of compliance! A certificate with this information needs to be issued regardless of whether CE credits were earned.<br />
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-45296193809334594272013-03-14T14:59:00.002-04:002013-03-14T14:59:27.938-04:00Confused about insurance licensing? View our video!Getting an insurance license can be a frustrating process, even for someone who has previously been through the process and is adding another qualification or attempting to mentor a recruit. We have set up a <a href="http://www.youtube.com/AgentTools">YouTube channel</a> to help with the process. This first video focuses on Michigan producers.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-48193829078675821272011-11-01T22:30:00.000-04:002011-11-09T11:43:53.347-05:00College Planning and the Financial Planning ProfessionalIt has become cliche that the United States has transformed from a manufacturing to a knowledge-based economy, and that the jobs of the future will require advanced education and critical thinking skills. The assumption is that this will continue to place a premium on, at the minimum, college-level education and ideally, a college degree with on-going professional education, whether in the form of an advanced university-based certification or degree e.g. MBA) or a professional designation (e.g. CLU).<br />
<br />
If price is an indicator of demand, then it would appear that the value -- indeed, the necessity -- of a college education is recognized in American society. Mary Mederios Kent, senior demographic writer at the <a href="http://www.prb.org/">Population Reference Bureau</a>, <a href="http://www.prb.org/Articles/2010/ushighereducationreturns.aspx">notes in a recent article</a> that the cost of two-year college in the 2009-2010 academic year ranged from less than $8,000 (for a public college with the student living at home) to an average of $20,000 per year for a two-year for-profit colleges. A degree from a four-year private university averaged $24,000 per year for students living at home, and $34,000 for those living on campus. Advanced degrees cost even more (or rather, "require a larger investment.")<br />
<a name='more'></a><br />
<br />
Needless to say, college is not cheap in America. Nevertheless, despite the cost, most U.S. students go on to college after high school. Kent notes that in 2009, 70 percent of high school graduates ages 16 to 24 were enrolled in an institution of higher education -- <a href="http://www.bls.gov/opub/ted/2010/ted_20100428_data.htm">the highest percentage ever</a>, according the Bureau of Labor Statistics. This is certainly a different picture than that from the 1950s through the 1970s, when barely one-half of high school graduates went to college. <br />
<br />
<span class="goog_qs-tidbit-0">Data from the U.S. Census Bureau demonstrates the financial value of</span> completing higher education, as noted in the figure below. According to <a href="http://www.prb.org/Articles/2010/ushighereducationreturns.aspx">Kent</a>, "<span class="goog_qs-tidbit-1">In 2008, a man with a professional degree, typically in law or</span> medicine, earned about $100,000, compared with about $31,000 for a male high school graduate...Even a two-year associate degree confers an income advantage for both men and women, and seems to validate the entreaties by teachers and parents for U.S. schoolchildren to work toward college, even if they are not destined for the Ivy League."<br />
<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8GizYTs8GU4A9C3qUFoIUog1OZkicjFRQIEAd_PwJRAUgjkqNRUasD74fadW2fvVfdilMV-gkp5M958PNT_6M2az4JnY6Eh_uRgJrZN6WFvQRvn7RB5aaHj_gtBNNrZ-MtG9Cy__Dei0/s1600/useducationincome.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="164" px="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8GizYTs8GU4A9C3qUFoIUog1OZkicjFRQIEAd_PwJRAUgjkqNRUasD74fadW2fvVfdilMV-gkp5M958PNT_6M2az4JnY6Eh_uRgJrZN6WFvQRvn7RB5aaHj_gtBNNrZ-MtG9Cy__Dei0/s320/useducationincome.gif" width="320" /></a></div><br />
With the need to fund college education a given, and numbers of enrollees growing, it is not surprising that the professional planner should gain some familiarity with techniques for meeting this challenge. To this end, the <a href="http://www.niccp.com/">National Institute of Certified College Planners</a> (NICCP) exists with the mission to provide recognition and support to the thousands of experienced professionals around the country who devote a significant portion of their practices to helping families plan financially for college, and offers a range of resources. <br />
<br />
Firstly, the NICCP promotes the <a href="http://www.niccp.com/membership-programs.asp">Certified College Planning Specialist</a> (CCPS) designation program. While effective planning for college funding is closely linked to retirement planning. However, while most financial advisors have backgrounds in retirement planning, they lack the in-depth training needed to acquire and maintain an expertise in the field of college planning. The NICCP provides the education and public recognition to distinguish and empower CCPS designees in the college financial planning marketplace.<br />
<br />
The NICCP also offers <a href="http://www.niccp.com/products.asp?id=50">The College Doctor Program</a>, which their website states "g<span style="font-size: small;">ives you all the software and college planning tools that you need to get the job done right!" and claims that "this is the most complete and powerful college financial planning program on the market today."</span><br />
<br />
<span style="font-size: small;">Lastly, the NICCP also offers educational webinars and a business building program. Some resources on the site are free, but most require a paid membership to access. </span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-13661740355681750032010-11-11T17:31:00.001-05:002010-11-15T09:48:31.412-05:00The Unhappy Life of Forced-Placed Insurance and the Ongoing Mortgage ScandalSo, what is forced-placed insurance, and why would it be unhappy -- other than being "forced," that is? The concept behind forced-placed insurance as it relates to mortgages is as follows: should a homeowner fail to meet his insurance premiums, then the loan servicer can step in to buy an insurance policy that is comparable in coverage. The mortgaged property thus remains fully insured, protecting the interests of both the homeowner and the lender. Hey, what's not to like?<br />
<a name='more'></a><br />
<br />
Well, as <a href="http://www.ritholtz.com/blog/barry-ritholtz-curriculum-vitae/">Barry Ritzholtz</a> at <a href="http://www.ritholtz.com/blog/2010/11/latest-mortgage-scandal-force-placed-insurance/">The Big Picture</a> points out, what makes perfect sense at the conceptual level can be abused in the real world, "and when the servicer owns the insurer, abusive practices, excessive commissions, and self-dealing transactions have become the norm."<br />
<br />
This story was originally broken by <a href="http://www.americanbanker.com/authors/261.html">Jeff Horwitz</a> at <a href="http://www.americanbanker.com/issues/175_216/losses-from-forced-place-insurance-1028475-1.html">American Banker</a>. Ritholtz pulls some gruesome examples of abuse from the original piece that highlight the disconnect between theory and practice as it relates to this situation. Check out, for example, the following: <br />
<br />
<em>Consider one case found by Horwitz. A homeowner’s $4,000 insurance policy, was paid by the loan servicer, <strong>Everbank</strong> via escrow. But <strong>Everbank</strong> purposely let that insurance policy lapse, and then replaced it with a different policy – <span style="text-decoration: underline;">one that cost more than $33,000</span>. To add insult to injury, the insurer, a subsidiary of Assurant, paid Everbank a $7,100 kickback for giving it such a lucrative policy — and, writes Horwitz, “left the door open to further compensation” down the road.</em><br />
<br />
<em>That $33,000 policy — including the $7,100 kickback – is an enormous amount of money for any loan servicer to make on a single property. <strong>The average loan servicer makes just $51 per loan per year.</strong></em><br />
<br />
<em>Here’s where things get interesting: That $33,000 insurance premium is ultimately paid by the investors who bought the loan.</em><br />
<br />
<em>These investors are not happy.</em><br />
<br />
Well, goodness, it is difficult to see how anyone would be happy in this arrangement ... except, well, the insurer. And the loan servicer. *sigh*Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-5007677254376453042010-11-10T16:44:00.003-05:002010-11-15T09:48:56.019-05:00The High-Powered AdvisorOne WebsiteA product of Summit Business Media,<span style="color: white;"> </span><a href="http://www.advisorone.com/"><span style="background-color: white; color: #3d85c6;">AdvisorOne</span></a> website, launched in early October, provides content from the industry publications <em><strong>Investment Advisor</strong></em> <span style="color: black;">and</span> <strong><em>Research</em></strong>, but goes far beyond simply offering a digital platform for these publications. AdvisorOne aggregates relevant content across the Web, including <strong><em>AP Financial Wire, Bloomberg, Business Week, WSJ </em></strong>... well, we could go on, but you get the picture. James J. Green, group editor-in-chief of AdvisorOne, states in the <a href="http://www.summitbusinessmedia.com/summit-business-media-launches-new-comprehensive-website-for-investment-advisors/"><span style="color: #3d85c6;">company press release</span></a> that "[w]e have news, expert in-depth analysis and commentary, market data, tools and networking opportunities in targeted content areas of critical interest to advisors. Not only can investment advisors benefit from our 30+ years of experience serving them, but we filter relevant content from across the Web to ensure that advisors can go to one site for all of their information needs.”<br />
<a name='more'></a><br />
<br />
AdvisorOne easily achieves its goal as a viable one-stop source for the investment advisor. What is surprising is that despite the depth and richness of its content, the site does not appear cluttered or overwhelming. This is a site definitely worth a visit, and one that makes sense for anyone involved in financial services to include in their toolbox.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3467465265334333497.post-88867207394830546832010-11-08T16:30:00.001-05:002010-11-15T09:49:31.466-05:00Getting Started, Keeping GoingWoody Allen famously stated that "Ninety percent of life is just showing up." The new insurance producer, fresh from training that incorporates as much attitude-building as it does education on product, may well begin in the field with this thought in mind. Ah, were it only so easy! For despite the best product inventory, the slickest marketing material, the most sophisticated lead-system, the insurance career is a challenging path. As industry statistics demonstrate, "just showing up" does not cut it in this field. To be successful, the new agent needs to find a way to last. <br />
<br />
The recent book by Brady Fineske, <strong>All You Have to do is Last</strong>, is meant to help producers meet this challenge. The title is taken from one of the many memorable quotes of insurance giant John Savage; Fineske was trained by Savage & Associates, and he pays tribute to the training and influence he has received from Bob Savage and the top producers in the firm.<br />
<a name='more'></a><br />
<br />
Brief (just 117 pages) and to the point, <strong>All You Have to do is Last</strong> details Fineske's amalgamation of proven techniques and systems, and presents them in a step-by-step process. For example, he provides a framework for establishing a ground level system for setting up and preparing to run your own practice, developing and implementing a marketing system to help you hit the ground running and quickly reach your goals, utilizing a step-by-step business tracking system designed to take a prospect from the phone call, to the meeting, through the system, and to your wallet, and employing techniques to keep that client for life. None of these are new, but all are presented in a highly usable, commonsense approach that is accessible to the new producer. Following these steps will help the new producer achieve professional success in the financial services industry at an accelerated rate when compared to the industry average.<br />
<br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDhyphenhyphentN46n1DHuM-4esA9ryc1sXGElTtYLOUMsvN3SF1ToHrzpuikMlmYqI2-pindzhf0Jbe7kqPZLq5RPGKK7zhFnnhTvoO4QacUivs6El9CsC88uvQb14tnu8PehaAYLCo89iTzLF24U/s1600/41VQL+IRqvL.jpg" imageanchor="1" style="clear: left; cssfloat: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" px="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiDhyphenhyphentN46n1DHuM-4esA9ryc1sXGElTtYLOUMsvN3SF1ToHrzpuikMlmYqI2-pindzhf0Jbe7kqPZLq5RPGKK7zhFnnhTvoO4QacUivs6El9CsC88uvQb14tnu8PehaAYLCo89iTzLF24U/s200/41VQL+IRqvL.jpg" width="161" /></a></div><strong>All You have to do is Last</strong> is available at Amazon.com.Unknownnoreply@blogger.com0