Saturday, October 31, 2009
Principles of insurance
Commercially insurable risks typically share seven common characteristics.
1. A large number of homogeneous exposure units. The vast majority of insurance policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004. The existence of a large number of homogeneous exposure units allows insurers to benefit from the so-called “law of large numbers,” which in effect states that as the number of exposure units increases, proportionally the actual results are increasingly likely to become close to expected proportions. There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or health of actors, actresses and sports figures. Satellite Launch insurance covers events that are infrequent. Large commercial property policies may insure exceptional properties for which there are no ‘homogeneous’ exposure units. Despite failing on this criterion, many exposures like these are generally considered to be insurable.
2. Definite Loss. The event that gives rise to the loss that is subject to the insured, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.
3. Accidental Loss. The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.
4. Large Loss. The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.
5. Affordable Premium. If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance. (See the U.S. Financial Accounting Standards Board standard number 113)
6. Calculable Loss. There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.
Friday, October 30, 2009
Health Insurance & Injury Update :-
Seattle Brain Injury Lawyer | Seattle Brain Injury Attorney
Brain injury, head injury, closed head injury, concussion, coma, traumatic brain injury, brain injury information
Brain Injury Lawyers - Experienced lawyers handling head injury cases for accident victims all over Washington State.
Information regarding injury to the brain, closed head injury, concussion –
A brain injury, or traumatic brain injury (TBI), occurs most frequently when the head is struck or hit by some external force. Traumatic brain injury most often results when there is a blow to the head in a car accident or fall. It can also occur when the head is thrown back and forth in a collision, without striking any object, if the brain hits the inside of the skull with some force.
Of all types of injury, traumatic brain injuries are among the most likely to result in death or permanent disability. Each year more than 80,000 Americans survive a hospitalization for traumatic brain injury but are discharged with TBI-related disabilities. An estimated 5.3 million Americans are living today with a TBI-related disability. Twenty-two percent of people who have a TBI die from their injuries.
The majority of traumatic brain injuries are caused by accidents, often leaving the injured in a financial crisis. The injured are sometimes unable to care from themselves or earn a living. It is estimated that persons suffering a severe traumatic brain injury may incur between 600,000.00 and 1.9 million dollars in long-term rehabilitative care. With this in mind, a qualified lawyer with extensive experience in handling traumatic brain injury cases should be hired as quickly as possible to seek the compensation you and your family need. Our lawyers have experience with cases involving both mild and severe brain injuries, including a $3.1M settlement, believed to be the largest settlement in the history of Mason County.
Thursday, October 29, 2009
Christina Lee "Christy" Hemme
(born October 28, 1980) is an American actress,
singer, model, and professional wrestling valet and wrestler.
(born October 28, 1980) is an American actress,
singer, model, and professional wrestling valet and wrestler.
Forex Update :-
U.S. GDP advances 3.5% in the Q3; Euro and Pound up
Euro and Pound have advanced further, after the U.S. Commerce Department released a larger than expected growth on U.S. GDP in the third quarter. Gross Domestic Product has increased 3.5% in the third quarter, slightly above the 3.2% increase expected by the analyst, favoured by a sharp increment on consumer spending.
EUR/USD: Euro, above 1.4735 Asian high, approaching 1.4765
The Euro is building up slowly on early European session, and, after having breached Asian session top at 1.4735, the pair advanced to 1.4760, right below Oct 27 low at 1.4765.
At the moment, the pair trades around 1.4750, with next resistance level at 1.4765 (Oct 27 high), and in case of breaking above there, 1.4800/10, and 1.4845 (Oct 26 low). On the downside, support levels lie at 1.4685 session low, and below here, next support levels could lie at 1.4670 (Oct 9 low) and 1.4650 (Oct 7 low).
On a bigger picture, Ian Coleman, technical analyst at Turtle Futures, observes tho possibility of having reached solid support level at 1.4700: "On the Daily chart we have reached our solid trend line support again. This is the bottom of the large ascending wedge which we expect to break to the downside. I do not think this will happen on the first attempt. Looking at the 1 hr chart we have been in a great downward channel since the break."
Wednesday, October 28, 2009
Health Tips :-
What is Mesothelioma? What is the difference between pleural mesothelioma and peritoneal mesothelioma?
Malignant mesothelioma is a disease in which a cancerous tumor grows on the mesothelium - the sac lining the internal body cavities. The specific type of mesothelioma is named for the tissue where the cancer started. Pleural mesothelioma starts in the chest, in the pleura that surrounds the lungs (outer lining of the lungs and internal chest wall). It makes up about 70% of mesothelioma cases. Peritoneal mesothelioma starts in the lining of the abdominal cavity.
Although sometimes referred to as "asbestos lung cancer", mesothelioma is not the same as lung cancer. Lung cancers occur inside the lung itself; mesothelioma occurs in the lining of the lung. Mesothelioma is rare, striking fewer than 3000 Americans per year.
How do you get malignant mesothelioma?
Mesothelioma is caused by asbestos exposure. Asbestos, once regarded as a miracle mineral, was popular due its lightweight but tough characteristics as well as for its heat-resistant properties. This naturally occurring mineral was used in many commercial and consumer products, from construction materials such as cement, roofing shingles and insulation, to consumer and industrial applications such as hair dryers, automobile brake pads and pipe insulation.
Tuesday, October 27, 2009
Asian Shares End Lower; Metal Stocks Drop ;-
Asian shares suffered a sharp pullback Tuesday as a fall in U.S. stocks and commodity prices weighed on markets in the region.
The Nikkei 225 Average ended 1.5% lower at 10212.46 in Tokyo, China's Shanghai Composite fell 2.8% to 3021.46, Australia's S&P/ASX 200 ended down 1.6% and South Korea's Kospi slid 0.5%.
Andrew Sullivan, sales trader at Main First Securities, said the strong corporate results in the U.S. as well as in Japan were only being aided by stimulus measures. "People are becoming more concerned, looking to lower the beta of their portfolios to minimize the downside risk," said Mr. Sullivan. Still, "nobody wants to sell, because every time you sell, the markets have seen a rally. There is inertia at the moment to sell."
The Hang Seng Index shed 1.9% to 22,169.59 as trading resumed after Monday's holiday, with property developers falling after the Hong Kong Monetary Authority Friday said the city's luxury property market was overheated with prices exceeding the peak in 1997. Henderson Land Development slumped 4.3% and Sun Hung Kai Properties lost 3.4%, while Sino Land sank 5.4%, amid worries of more government measures to cool the city's skyrocketing property prices.
The Sensex lost 2.3% in Mumbai afternoon trading. The Reserve Bank of India left its benchmark lending rate unchanged at 4.75%, as widely expected, but banks and real estate stocks were taking a beating after the RBI raised the provisioning requirements for lenders. Shares of ICICI Bank lost 6.1% and State Bank of India gave up 4.5%, while real estate developer DLF sank 6.6%.
Elsewhere, Taiwan's Taiex slipped 0.1%, New Zealand's NZX 50 gave up 0.7% and the Philippines' main index dropped 0.2%. Singapore's Straits Times Index declined 0.8%.
Dow Jones Industrial Average futures were recently up three points in screen trade after falling sharply in the previous two sessions.
Resource-related shares were lower across Asia, with Inpex dropping 1.6% in Tokyo, Woodside Petroleum falling 2.5% in Sydney, while shares of PetroChina gave up 2.1% in Hong Kong and 2.6% in Shanghai.
Front-month Nymex crude oil futures were recently up 39 cents at $79.07 a barrel on Globex, after dropping $1.82, or 2.3%, in New York trade.
Metals stocks posted big losses in Shanghai as well as the rest of the region, with Aluminum Corp. of China falling 4.4% and Yunnan Chihong Zinc & Germanium losing 4.5% in Shanghai. Sumitomo Metal Mining slid 3.5% in Tokyo and Hindalco Industries dropped 7.9% in Mumbai trading.
"There is profit-taking in the air but I think the market will regain its upward momentum after the correction, unless the Shanghai index drops below 3000," said Zhou Lin at Huatai Securities.
Shipping stocks lost ground in Tokyo after Nippon Yusen K.K. swung to a quarterly loss and Mitsui O.S.K. Lines' quarterly profit plunged. Nippon Yusen dropped 2.5% and Mitsui O.S.K. lost 2.5%, with Kawasaki Kisen Kaisha shrinking 6.4%.
In spite of the fall in Tokyo, some analysts expected exporters to find support from the yen's recent weakness.
"The foreign exchange rate may help the market from falling sharply," said Yumi Nishimura, a market analyst at Daiwa Securities SMBC. The U.S. dollar continued to trade around the 92 yen level through the session. It was recently buying 91.92 yen, after rising as high as 92.25 yen earlier in the day from 92.22 yen late in New York.
The euro recovered from its early fall and was recently buying $1.4886 from $1.4865 late in New York. It was also fetching 136.86 yen from 137.08 yen.
Still, the euro was showing signs of strain, said analysts at UBS. While "few observers would deny the euro zone is enjoying a moderate economic recovery, the rapid rebound in activity and sentiment looks to be slowing. Valuations in asset markets already look hard to justify according to current growth figures, and if growth itself stutters, overstretched risk positions will need to correct."
Spot gold was recently at $1,040.40 a troy ounce, up $2.40 from New York close.
Monday, October 26, 2009
Forex Update :-
GBP/USD: Reversal ahead of 1.6745/65 means that rally is over - Commerzbank
The Pound is trading in a range around 1.6300 after its 390 pips sell-off seen last Friday, which ,according to Karen Jones, technical analyst at Commerzbank, slammed the Pound's two-weeks long rally.
Market is now back under bearish pressure, according to Jones, with next support at 1.6200: "GBP/USD’s large key day reversal ahead of 1.6745/65 implies that the 2 week rally is over and the market is back under pressure in its range. We have interim support at 1.6200, 1.6115/1.6085 and failure here should be enough to refocus attention on to the 1.5690/1.5710 support."
On the upside Jones points out to 1.6745/70 to hold potential rallies: "Key short term resistance remains 1.6745/70, the June and September high and Fibonacci retracement – we look for this to hold the initial test. Above here would introduce scope to 1.7040/50."
EUR/USD could reach 1.7500; oil $200 by early 2010 - Kim Cramer
The Euro has remained trading on a steady upside trend from levels below 1.2500 in March to reach 1.5000 in October, and, according to Kim Cramer Larson, technical analyst at Financial Trend Analysis the uptrend is not any close to its top.
On the long term, Larsson expects the Euro to peak at 1.7500 on three to six months time: " We expect the old high on Euro Dollar, at 1.6200, to be tested by year-end. Our long-term frecast within the next 4 to 6 months is 1.75."
Furthermore, oil prices will continue rallying according to Larsson who expects crude oil to reach levels around 190 - 200 in the next 3 to 6 months: "We are very bullish on oil, we saw a break out lately taking out old highs, and we expect crude oil to trade at 190/200 in the next tree to six months."