Professional liability insurance is a necessity for lawyers. Unfortunately, not all lawyers are able to secure the coverage they need in the standard marketplace because they are considered to be a “distressed” risk. The question is, what exactly does “distressed” mean?

A “distressed” risk is one that has difficulty securing professional liability insurance because of claim frequency, claim severity or disciplinary complaints or actions. While “distressed” is often used interchangeably with “hard to place”, the two terms are different in that “hard to place” generally means the lawyer or law firm practices in a more risk prone practice category such as Personal Injury Plaintiff or Patent but is usually claim and disciplinary action free. If the term “distressed” describes the loss or disciplinary history of a law firm, the firm faces many more challenges in finding professional liability insurance and generally has to settle for less coverage at a considerably higher premium. The good news is that there are a few markets available, operating on a surplus lines basis, to meet the professional liability needs of the “distressed” law firm.

Surplus lines is often referred to in a negative connotation because the insurance product is not protected by any state insurance guaranty association nor is the policy form and rates charged subject to regulation and approval of the State Insurance Commissioner. However, not all surplus lines insurers are created equal. Surplus lines insurers are subject to review by the insurance company rating agencies such as A.M. Best and are generally published as an “Approved Surplus Lines Company” by state insurance departments. Before committing an insurance purchase to a surplus lines company, law firms should check with their state insurance department to be sure that the company is an approved surplus lines insurer and that it carries an A.M. Best rating of at least A VII. Many admitted professional liability companies will have a surplus lines facility to accommodate those applicants or insureds that do not qualify under their standard program guidelines, but would be acceptable on a surplus lines basis if a more acceptable premium could be charged for the exposure presented. There are several A and even A+ markets to approach in this arena.

To find an adequately rated surplus lines insurer that can be trusted to provide the needed coverage should a claim be presented often involves finding a broker that specializes in professional liability and deals regularly with distressed placements. As a general rule, most brokers that offer lawyers professional liability as a full time product line will have an insurance company or “distressed facility” that they have worked with successfully in the past. It is best to find a broker that is familiar with the policy form and claims handling ability of the company they are recommending.

Here are some valid questions to ask a broker about the insurance company offering coverage:

• Does the insurance company specialize in professional liability?
• Is it an approved surplus lines insurer in the state and rated at least A VII by Best?
• Does the insurance company oversee its own claims handling or farm that responsibility out to an independent adjustment firm or third party administrator?
• Will the claims adjuster provide you with a listing of law firms in your state from which to choose your defense counsel and will the company work with you to consider a firm you recommend?
• Is the insurance company willing to defend a spurious claim in order to protect your reputation in the community, or do they have a “get out the check book mentality” to close the claim regardless?
• Will the insurance company regularly communicate the status of the claim with you and seek your input as to settlement or defense strategies?

Once a viable insurance company has been identified, it pays to examine the policy form and discuss strengths and weaknesses of the coverage provisions with the broker. The broker should provide a list of “coverage highlights” that discuss not just positive marketing advantages, but important coverage restrictions as well.

One of the most important coverage features to be aware of when purchasing professional liability coverage is the availability of prior acts coverage under the policy. Distressed markets often offer terms “retro inception” which means that the policy’s prior acts retroactive date will be the same as the policy’s effective date. On a Claims-Made policy, the act(s) that resulted in the claim must have occurred after the policy’s retroactive date. That situation is also known as a “no prior acts” or “restricted prior acts” policy. If the policy has restricted prior acts coverage, an Extended Reporting Period (ERP) option will need to be purchased from the expiring insurance company. An ERP can be a very economic decision as, often times, the terms will be based on rates that were provided by the standard marketplace and not surcharged for claims or disciplinary problems. A broker should be able to advise the pros and cons of purchasing this option, but two things that should be considered are:

• Is the option cancelled automatically if your license to practice is suspended?
• Will open claims exhaust the limit of liability under the policy?

Other policy provisions that can be restricted on a distressed policy form are:

• Policy’s consent-to-settle provision
• Specific exclusions for certain practice areas such as SEC
• Specific exclusions for certain types of legal malpractice actions such as a counterclaim as a result of a fee collection suit
• Defense costs are generally included within and erode the limit of liability
• Coverage is generally limited to acts performed on behalf of the named insured named in the policy declarations which can limit predecessor firm coverage, individual prior acts coverage and outside moonlighting activities
• Extended reporting period options are restricted in length to 12 months or 36 months and are considerably more expensive than the standard marketplace

To receive the most favorable terms possible when submitting an application for professional liability insurance, a good point to remember is that you are the best representative of your practice exposure going forward. Underwriters that offer a distressed facility are not so concerned with the number and amount of past claims or even that the firm has been censored by the state bar, but that the underlying problems leading up to the claims or disciplinary ruling have been identified and addressed. A sincere, honest approach with full disclosure on claims or any other problem that has put the firm in this situation is always the best approach. Include a narrative of the systems and procedures that have been put in place to reduce the likelihood of similar claims in the future. Include comments on the merits of the claimant’s claim. Tell the underwriter what was done right during the representation. If at all possible, include loss reports from previous insurers showing actual paid and reserved amounts. If the underwriter has to interpret the value of the claim, it will likely be higher than the actual reserve that the insurance company has set. Take an active interest in the payments and reserves set for the open claim and be informed on the status of the claim on a regular basis.

If you are a small or mid-sized law firm that has experienced difficulty finding lawyers professional liability insurance due to paid claims or disciplinary actions, DefenseProSM Lawyers Professional Liability may be able to help. Administered by Lockton Risk Services, a subsidiary of Kansas City-based Lockton Companies, the largest independently-owned commercial insurance broker in the United States, DefenseProSM is specifically designed to meet the professional liability needs of distressed law firms. For more information, visit the DefenseProSM website at http://www.defenseproliability.com.

Lockton Companies, the largest independently-owned commercial insurance broker in the United States, DefenseProSM is specifically designed to meet the professional liability needs of distressed law firms. For more information, visit the DefenseProSM website at www.defenseproliability.com.

Cindy Wiedman, RPLU
Lockton Risk Services
7300 College Boulevard, Suite 500
Overland Park, KS 66210

DISCLAIMER: The information in this article is provided for general discussion purposes only, and does not constitute legal advice. For specific advice contact your own legal, financial, insurance and/or other advisor.

Disposable income and financial circumstances vary amongst people, and consequently affordability of term life insurance will also vary amongst the different people.

For most people, affordable term life insurance is the most favorable type of insurance. However, the maximum duration for the term policy is only 30 years. Under the circumstances where one needs a life insurance longer than the maximum term policy for 30 years, then one may need to consider a cash-value policy. Although one can keep the cash-value policy forever and some of your money goes into an investment account, premiums for cash-vale policies are characteristically higher than for term life insurance.

In the circumstances where you think you do not need a cash-value policy, switching to a term policy can significantly lower your premiums. However, if you switch from cash-value to term lice policy, you will forego the savings feature of the cash-value policy. This means if you decide to take affordable term life insurance, you will need to find other options and places to invest your money.

Shopping for Affordable Term Life Insurance Has Been Made Easy by the Internet

With the advent of the Internet, comparing and shopping for life insurance has never been easier. You can get a lot of life insurance quotes online with the easy-to-use websites, and without the pushy salespeople; hence giving you all the time you need to make a good judgment of the best quote that meets your needs and suits your circumstances. Shopping for life insurance online means that you don’t need to talk to an insurance agent until you have made up your mind of the specific type of life insurance you need and the amount.

It is recommended that you keep the information which the insurance companies ask about your health, as this means it will then take you less than ten minutes to get an accurate term life insurance quote. Vital information about your health which the insurance companies typically ask is about your cholesterol level, weight, blood pressure and family medical history.

What Are The 5 Key Useful Strategies for Getting an Affordable Term Life Insurance Policy?

1. If you have lowered your cholesterol, lost weight or quit smoking, it is recommended that you shop around.

2. Making your premium payments through automatic debit can help you get some discounts because the insurer will be making some savings on administrative costs of printing and mailing you a bill.

3. Before you start to shop for an affordable term life insurance, it is important that you decide on the amount of term insurance you want. Most companies will give better rates when you buy a policy from one of the three basic amounts, namely $250,000, $50,000 and $1 million. You may be able to get a more cost effective policy if you round up any of these three amounts.

4. What you pay for your premiums is dependant on your age. The older you are, the more you pay, and thus it is recommended that you consider shopping around for insurance some six months before your next birthday.

5. It is in your benefit to consider shopping around for a new policy if you were treated for a major medical condition many years ago. The further away the medical condition, the better in some situations since you may have a new bill of health that is better than a few years ago.

Anyone can get affordable term life insurance if you make the effort to educate yourself on the many ways and tips you can use to get cost effective insurance. Shopping around online and comparing the most insurance companies which can give you the best rate is well worth your time and effort.

Dean Shainin offers free online life insurance quotes. For more information, articles, news, tools and valuable resources on life insurance, visit this site: http://life-insurance.deans-knowledgebase.com

Get free valuable online tips for saving money from his: Affordable Life Insurance website.

When searching for boat insurance, you may be overwhelmed when
you find that there are many different types of boat insurance
policies available. In general, insurance companies only offer
one general watercraft liability coverage policy; some others
may offer additional coverage that you are able to purchase. If
you have financed your dreamboat, the lender probably requires
you to obtain specific coverage. There are many different types
of coverage available that you can add, as an addition to your
standard policy.

The standard policy, the watercraft liability insurance
coverage, is required by law in most states. This insurance
policy provides coverage in the event that damage occurs to a
person or property as a result of actions taken on your boat.
This is true whether or not it is during transportation or
actually on the water. This is a law requirement in having this
type of liability coverage, and each area will have its own
requirements as to how much you will need. It is wise to consult
with an insurance agent to find out what is necessary to meet
the requirement of the law.

It is possible that medical payment coverage may be required in
your area. This type of coverage pays for the medical expenses,
up to a specified amount, for you and any passenger on your boat
that result in an accident covered by the policy. As a
suggestion, regardless of whether this insurance is required or
not, it would be wise to consider it. Medical expenses as a
result of an accident can become extremely high.

Another additional type of coverage to the standard liability
coverage is the wreck removal and pollution coverage. This
should also be strongly considered. If your boat sinks or is
involved in an accident for any reason, you are required to
remove it at once in accordance with the law. If oil or gas
leaks into the water as a result of an accident, you will be
fined. The wreck removal and pollution coverage provides
coverage for this type of incident, without the coverage you
will be required to pay for the removal and fines out of your
own pocket.

Just like in automobile coverage, you should definitely insure
yourself against uninsured boats as well. This works in the same
manner as uninsured motorist insurance your automobiles. If
another boater, who does not have any type of insurance or
enough coverage, collides with your boat on the water, this
coverage will pay for the replacement of your boat and any
needed repairs.

Most all insurance policies you purchase should cover the boat,
motor, and trailer used to transport your boat. Liability
coverage is not the only type of coverage that you will likely
need in many cases. Make sure that you protect your boat,
optional coverage that includes theft, vandalism, losses caused
by storms, fire, sinking, capsizing, stranding, and collision.
Speak to your insurance agent and find out what type of
insurance is required by your area and the types of coverage
they can offer you.

Health insurance is a very important part of life. When a family cannot afford healthcare for their children the consequences could be critical. Babies are very sensitive to their new environment and if they are not getting regular checkups parents may never know if there is a serious medical problem. Even if an illness is not fatal, it can still leave long-lasting effects on a child’s health.

Many health insurance companies offer plans that can suit your budget and protect your children. These health plans may take into account many different services that can be of assistance in caring for children; hospital care, major medical coverage including advanced therapy and surgeries, as well as clinical check ups and prescription drugs. In addition, dental, vision, hearing and medical equipment (such as wheelchairs) could be included in the coverage.

How do you go about choosing an affordable health insurance plan that’s also the most practical for your family? Parents would need to compare companies, plans of coverage and realistically examine their family’s needs. In determining cost, usually the higher your premium is, the lower the deductible.

Finding and comparing health insurance companies has become much easier thanks to the Internet. Most companies have an online set up and can give you charts to compare premiums, deductibles and costs of individual items such as doctor visits and brand or generic medication. Many can give you a direct quote based on your income and family living situation.

Another option to consider is to investigate health insurance plans locally, by state, as opposed to nationally. Some state-specific health insurance providers are specially set up to help families in need and can be offered at very low costs, or even free depending on the family’s income.

Saving money and finding good health insurance are two of the most important projects families will have to consider together. The Internet makes both easy.

View our Recommended Health Insurance Company, a simple site that has an easy to fill out application. It also has a lot of great info about Home Insurance and Car Insurance

If you drive a car, you need to understand auto insurance. Believe me; it’s much better to learn now than it is after an accident. Here are 19 ways to get the most coverage for the least money:

1. Spend your money wisely

Put your money towards the things that could wipe you out financially.

Most people will spend a lot of money to get a $500 deductible and ignore the fact that a $500,000 lawsuit could bury them forever. You should raise your deductible and increase your liability coverage. The premium change will balance itself out to about the same amount you are paying now. Raising your total liability coverage from the standard $300,000 to $500,000 will only cost you about $60 more per year on two cars.

Look at the trade-off: what you are saving in premiums vs. how much risk you can accept. You can save on your premiums by shaving off your personal injury protection. This is often called the medical payments coverage. If you already have health insurance, it will pay your medical bills after an accident. You are basically paying for the same coverage twice.

2. Look at your liability coverage per person

Have your agent write your policy so that the total amount paid per accident and per person are the same amount.

If you have $300,000 in total liability, often only $100,000 is payable for each person injured. If you are sued by an individual for $200,000 - you are responsible for half. Your $300,000 worth of coverage should reflect $300,000 worth of coverage.

3. Buy an umbrella policy

If you have a considerable amount of assets, or plan to, consider taking out an umbrella policy that covers both your home and autos for liability. These policies usually start at $200 to $300 annually for up to $1 million of coverage.

4. Good advice is worth looking for

Make sure that you get your advice from neutral, credited professionals. When shopping for an agent, look for experience. You don’t want to necessarily go with an agent that has only had one weeks worth of training! Look at their education and industry credentials. Look for those who are members of the CPCU, CIC and AAI.

5. Good credit ratings count

Your credit rating is used to determine your insurability and your premiums. Good credit equals affordable insurance.

6. Your insurance company pays for your rental

If you have been in an accident and your car has to be in the shop, make sure that your policy covers the costs of renting a similar car. While a week with your car in the shop doesn’t sound like all that long, one-week worth of rental fees can add up to the hundreds of dollars.

7. Shopping around pays off

Premiums vary widely from company to company. You can often pay more than double for the same insurance. Make sure that you call around for quotes from brand name companies and independent agents.

Don’t assume that going with a well known company will cost you more. Insurance companies with the best ratings often have the best prices.

Don’t just get a quote - ask for the exact numbers on the exact coverage you need. You want to compare apples to apples.

8. Take advantage of discounts

Discounts can help to save you a lot of money. If you haven’t had an accident in years, if you store your car in your garage, if you don’t drive many miles - you may be eligible for a discount. Companies will also give you discounts for safety features and anti-theft devises. More than one car or more than one type of policy with a company gives you a discount also.

Paying your premiums annually instead of monthly can save you over $100 a year. Driving classes and good grades while in school can save you also.

9. Teens that aren’t driving don’t need to be insured

If you teen is away at college and is no longer driving your car, take them off of your policy. Teen drivers add anywhere from 50% to 500% to your premium. If your teen is driving, make him or her get their own insurance. Its time for them to start learning about insurance on their own.

10. Older cars don’t need collision insurance

If you have an older car, you often don’t need to carry collision insurance. You will be paying more in premiums for it than the car is worth. Ask your agent what your car is worth and how much of your premium goes towards collision insurance. Chances are you could just save the extra money for a year and have plenty set aside for replacing your car.

11. Shop for the best service

You need to find a company that is responsive, responsible and easy to deal with. Chances are that you are going to file a claim at some time in your life. You need an agent that will work with you towards a common goal: your satisfaction.

A good agent will act like a coach. He or she will advice you on how to present your claim to adjusters and will help you in any disputes. Don’t settle for a 800- number that never lets you talk to a real person.

12. Understand the claims process

Have the agent explain to you the claims process before you chose which company to go with. Find out if your insurance pays for brand name, generic or used parts to fix your vehicle. Are you limited in your choice of garages? Make sure that you have everything in writing.

13. Diminished value - ask about it

This is a very hot topic when it comes to auto insurance. Is a car worth less after an accident? If it is, should the insurance fix the car and pay you the difference in values? Ask your agent what your state regulations and rulings are regarding diminished value.

14. As soon as you have an accident, call your agent

There are time limits for most claim reports, usually 48 hours. If you want to ensure that all is being taken care of, call immediately.

15. Keep claim records

Write down everything that happens after an accident - names, dates and what was said. Keep track of when and who you speak with regarding the accident. You may be able to record any phone conversations. Save all of your receipts, get estimates and pick up a copy of the accident report.

16. Keep your claim moving

Shop around and get any necessary estimates. By jumping right in and doing so, you will be prepared and save everyone time.

17. Include everything in loss estimates

If you total your car, you may be able to recover the entire cost, including your sales tax and registration fees. Contact your agent to find out what estimates you need to have.

18. Be patient with your adjuster, but keep pressuring

An adjuster is just like you or me, they make mistakes. If you keep your temper and politely work your way up the chain of command, you will get much further. Have all denials put in writing with reasons included. Compare the explanation with your policy.

Your agent is there to make calls on your behalf. Ask to have the matter reviewed. You can choose to go into arbitration, but you will pay half of the costs. This is often quicker than taking the matter to court. See what the record of customer satisfaction is with the company’s arbitration hearings. Your last resort is suing.

19. If you switch companies, cancel your old policy

But don’t cancel it before you have new insurance. You want to have no gaps. Some companies will report that you are driving without insurance and you may face a suspended driver’s license. If you get a letter from the state, make sure that you provide your proof of insurance immediately.

Martin Lukac, represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!