Saturday, September 28, 2013

Jeanne Salvatore, Dog Bite Liability, CNN

Jeanne Salvatore of the Insurance Information Institute ( on CNN's New Day talking about dog bite liability.

Wednesday, September 25, 2013

Introduction to the Importance of Flood Insurance

Dr. Steven Weisbart, chief economist of the Insurance Information Institute, talks about the importance of having flood insurance.

Sunday, September 22, 2013

Changes In The California Construction Law

SB474 California Construction Law:
Expanding the Prohibition on “Type I” Indemnity Agreements.
As of January 1, 2013, "Type I" indemnity agreements will no longer be enforceable in most construction contracts. The new law, which will apply to contracts entered into on and after January 1, 2013, expands the class of indemnity provisions that are unenforceable under California law. It also imposes stricter limitations on the ability of developers and general contractors to require their subcontractors to cover litigation defense costs. The new law, which will apply to contracts entered into on and after January 1, 2013, expands the class of indemnity provisions that are unenforceable under California law. It also imposes stricter limitations on the ability of developers and general contractors to require their subcontractors to cover litigation defense costs.

Thursday, September 19, 2013

Rental Car Insurance

Most car renters are covered by their own personal auto insurance, but exactly what is covered varies from company to company. Jan Armstrong of the American Car Rental Association says the simplest thing is to check your own personal insurance first, and if you don't feel comfortable interpreting your own insurance policy yourself, just call your agent who will be able to tell you if you have coverage while you are driving a rental car. Ken Elder of Thrifty Rental Car says that his company takes the riskiest drivers along with the best drivers, but they have no way of knowing which is which. The Insurance Information Institute says do your homework so that you will know what kind of insurance you already have and whether or not you need to purchase more at the rental car counter.

For more information about insurance, go to the I.I.I. Web site at

Monday, September 16, 2013

Why It Is Important to Have Adequate Car Insurance

Buying insurance always features towards the end of the priority list, and it gets buried even deeper when one has to buy insurance for one's car. Buying car insurance is never anyone's top priority, so people often end up buying the minimum insurance coverage required to legally drive his or her car in the state he or she lives in.
This may help a person meet the legal requirement of buying an insurance policy for driving on the road, but for all practical purposes, this car insurance is of no use. It is equivalent to having no insurance at all. One should always buy an insurance policy which offers protection for every possible eventuality. If your insurance plan does not protect you against all eventualities, you may feel deprived of required protection when things fall apart.
3 reasons why one should have adequate car insurance coverage
Cover for your mistakes
There are times when even the safest driver lose control of his car and hit someone or something on the road (or on the side of the road ). And when it happens the driver causing the accident is expected to pay for the damaged car (or cars) as well as for the hospitalization bill and personal injury of the person (or people) caught in the accident. This could amount to a lot of money, which you would not want to pay. You can shift the responsibility of paying that bill to your insurance company by buying a policy that covers for such eventualities.
Protection against underinsured or uninsured drivers
Have you ever thought what will happen if you are hit by a car which is not properly insured, at the best, and uninsured, at the worst? You will have to pay for your medical bill and car-repairing bill if your insurance plan does not cover accidents done by uninsured or underinsured motorists.
You should buy an insurance policy that has adequate coverage even in situation like the one described above. This will protect you against damages done by hit-and-run drivers, or drivers who has poor or no insurance coverage.
Roadside assistance
You are driving on a deserted expressway on a hot summer afternoon and your car breaks down in the middle of nowhere. What will you do? Will you call someone to help you out? And what if that person is not available?
You will remain stranded until someone comes to help, but if you have a car insurance policy which offers roadside assistance you will not be in that dire situation; all you'd need to do is give a call to your car insurance company and it will take care of the rest.
I hope, you now know why it is important for you to buy an adequate car insurance policy.

Article Source:

Friday, September 13, 2013

Open-Flame Furniture Test

A series of open-flame tests conducted by the Consumer Product Safety Commission illustrates the effectiveness of varying levels of protection, from fire-retardant foam in combination with a fire barrier to untreated foam and no fire barrier.

Learn more about upholstered furniture fire safety at

Tuesday, September 10, 2013

Surety Bonds

A surety bond or surety is a promise to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principal's failure to meet the obligation.

A surety bond is a contract among at least three parties:

  • The obligee - the party who is the recipient of an obligation, e.g., the client building an office building
  •  The principal - the primary party who will be performing the contractual obligation, e.g., the contractor building the office building
  • The surety - who assures the obligee that the principal can perform the task

European surety bonds are issued by banks and are called "Bank Guarantees" in English and "Caution" in French. They pay out cash to the limit of guarantee in the event of the default of the Principal to uphold his obligations to the Obligee, without reference by the Obligee to the Principal and against the Obligee's sole verified statement of claim to the bank.

Through a surety bond, the surety agrees to uphold — for the benefit of the obligee — the contractual promises (obligations) made by the principal if the principal fails to uphold its promises to the obligee. The contract is formed so as to induce the obligee to contract with the principal, i.e., to demonstrate the credibility of the principal and guarantee performance and completion per the terms of the agreement.

The principal will pay a premium (usually annually) in exchange for the bonding company's financial strength to extend surety credit. In the event of a claim, the surety will investigate it. If it turns out to be a valid claim, the surety will pay it and then turn to the principal for reimbursement of the amount paid on the claim and any legal fees incurred.

If the principal defaults and the surety turns out to be insolvent, the purpose of the bond is rendered nugatory. Thus, the surety on a bond is usually an insurance company whose solvency is verified by private audit, governmental regulation, or both.

A key term in nearly every surety bond is the penal sum. This is a specified amount of money which is the maximum amount that the surety will be required to pay in the event of the principal's default. This allows the surety to assess the risk involved in giving the bond; the premium charged is determined accordingly.

Surety bonds are also used in other situations, for example, to secure the proper performance of fiduciary duties by persons in positions of private or public trust.

Annual US surety bond premiums are approximately $3.5 billion. State insurance commissioners are responsible for regulating corporate surety activities within their jurisdictions. The commissioners also license and regulate brokers or agents who sell the bonds.

Individual Surety Bonds are the original form of suretyship. The earliest known record of a contract of suretyship is a Mesopotamian tablet written around 2750 BC. There is evidence of Individual Surety Bonds in the Code of Hammurabi and in Babylon, Persia, Assyria, Rome, Carthage, the ancient Hebrews and later England.

The Code of Hammurabi, written around 1790 BC, was the first time suretyship was addressed in a written legal code. It wasn't until 1840 that the first Corporate Surety was organized, The Guarantee Society of London.

In 1865, the Fidelity Insurance Company became the first US Corporate Surety company,[5] but the venture soon failed.

Contract Surety Bonds
Contract bonds, used heavily in the construction industry, are a guarantee from a Surety to a project's owner (Obligee) that a general contractor (Principal) will adhere to the provisions of a contract.
Included in this category are: bid bonds (guarantee that a contractor will enter into a contract if awarded the bid), performance bonds (guarantee that a contractor will perform the work as specified by the contract), payment bonds (guarantee that a contractor will pay for services and materials), and maintenance bonds (guarantee that a contractor will provide facility repair and upkeep for a specified period of time). There are also miscellaneous contract bonds that do not fall within the categories above, the most common of which are subdivision and supply bonds.

Commercial Surety Bonds
Commercial bonds represent the broad range of bond types that do not fit the classification of contract. They are generally divided into four sub-types: license and permit, court, public official, and miscellaneous.

License and Permit Bonds
License and permit bonds are required by certain federal, state, or municipal governments as prerequisites to receiving a license or permit to engage in certain business activities. These bonds function as a guarantee from a Surety to a government and its constituents (Obligee) that a company (Principal) will comply with an underlying statute, state law, municipal ordinance, or regulation.

Specific examples include:

  • Contractor’s license bonds, which assure that a contractor (such as a plumber, electrician, or general contractor) complies with local laws relating to his field.
  • Customs bonds, including importer entry bonds, which assure compliance with all relevant laws, as well as payment of import duties and taxes.
  • Tax bonds, which assure that a business owner will comply with laws relating to the remittance of sales or other taxes.
  • Reclamation and environmental protection bonds
  • Broker’s bonds, including Insurance, Mortgage, and Title Agency bonds
  • ERISA (Employee Retirement Income Security Act) bonds
  • Motor vehicle dealer bonds
  • Money transmitter bonds
  • Health spa bonds, which assure that a health spa will comply with local laws relating to their field, as well as refund dues for any prepaid services in the event the spa closes.

Source: Wikipedia:

Saturday, September 7, 2013

Lynne McChristian, Soaring Car Insurance Rates on FOX

Lynne McChristian of the Insurance Information Institute on FOX News talking about the increasing cost of auto insurance. The rampant cases of fraud in Florida led to higher rates for everyone and recently there has been massive PIP reform. Now drivers are waiting for their rates to drop, but it will take several more months for decreases to be seen by consumers.

Wednesday, September 4, 2013

First Service Insurance Testimonial

“I am a concrete contractor with 30 years of experience. We have been with First service for 6 years and we are extremely happy with their service. Everyone is always very helpful and knowledgeable. They do the shopping around for us to get us the best price for our insurance needs and they treat us like friend rather than a client. We highly recommend their services.”

–J.P. in Folsom

Sunday, September 1, 2013

Back To School

Going off to college is a thrilling experience, but it can be a sobering one, too. Corporal Steve Kowa is a campus safety officer at the University of Maryland. He says students never think they are going to be victimized. The Insurance Information Institute says that theft is the number one crime on college campuses and offers tips for students on how to protect themselves and their property while away at school.