Adding to AD&D policies: the shortcomings of AD&D policies can cost unsuspecting policyholders dearly, one expert argues. The best way to avoid getting into trouble is to review the policy with a fine-tooth comb.
Every day, employees and family members face the potential for injury or death resulting from anything from common falls and automobile accidents to acts of terrorism and war. Employers are susceptible to large-scale losses from catastrophic events, such as terrorist attacks, that can affect many employees at once. Managing this risk requires significantly more than having an accidental death and dismemberment insurance policy in place. It requires in-depth knowledge of your company's business travel and 24-bour AD&D exposures, domestically and internationally. Accumulation issues and dynamic exposure levels in particular regions must be contemplated. Your company must be poised to respond, with insurance and a meaningful crisis response, to mitigate damages from events that can be as devastating as they are unpredictable. In essence, your company must now manage AD&D risks as strategically as it does any other substantial threats to operations and assets. Is your company up to the challenge?
The points outlined below provide an initial checklist for companies preparing to meet this challenge. They illuminate the shortcomings of current approaches to managing AD&D risks--and key elements that can strengthen the process.
Steps to Follow
Simply attaching AD&D coverage to your group life policy is not sufficient. Life insurance underwriting is clear-cut and data-driven; accident insurance requires a high degree of customization. AD&D risks can have disastrous consequences for your organization; they merit careful management by underwriters with substantial technical expertise. Life insurers typically don't have this AD&D expertise.
Many stand alone AD&D policies and AD&D riders fall short in addressing your greatest risks: terrorista and war. Be sure these potentially catastropbic events are covered under your AD&D policy. Also assess your exposure and accumulations in these areas regularly and ensure that your organization is prepared to respond to manage the aftereffects of such events. Having specialized resources available to manage your AD&D risks is critical. Beyond broad insurance protection, an AD&D insurer should provide proven, high-quality travel assistance and claims management services, customized to help your company and employees weather a crisis.
Your AD&D insurer has its own catastrophic exposure to manage. The carrier must be financially strong and actively manage its own balance sheet exposure, particularly accumulation exposure, to sustain its strength long term. Reinsurance is vital to this effort. So, don't hesitate to inquire about your carrier's reinsurance arrangements, including support in potentially catastrophic areas such as chemical, biological or nuclear events.
When an AD&D claim occurs, both human and contract issues must be addressed. AD&D claims are often the result of tragedies, with distraught family members involved. Make sure your AD&D carrier has the specialized claims staff and resources to respond sensitively to the multi-faceted issues involved in these cases, and has a record of making claim payments quickly. Responses can vary significantly. After an airline crashes, leaving no survivors, a carrier could withhold claim payments until death certificates are processed, often taking several months. Or, it could pay promptly. Be aware of the vast differences in claim protocol when you choose your carrier
Saturday, May 23, 2009
Wettlaufer returns as chairman.
HOLLAND - Selectmen agreed this week to keep the status quo after the annual town election Monday, with James E. Wettlaufer continuing to serve as chairman and Christian J. Petersen Sr. as clerk. The board also agreed to revert to a summer schedule and meet every other Wednesday, starting next month.
Selectmen approved a change in management at P.J.'s Town Crier from owner Eric Bayliss to Brenda A. Malburne. They voted for: Mr. Petersen to serve as the board's representative to the Quaboag Valley Business Assistance Corporation; to renew accidental death and dismemberment insurance for police and fire personnel; and to accept a $9,550 contract from Aquatic Control Technology of Sutton for lake management and weed control of Hamilton Reservoir in fiscal 2008.
Lycott Environmental Engineering of Southbridge held that contract with the town for years, but its bid came in $1,000 more than ACT's, Mr. Wettlaufer said, "and therefore could not be awarded the contract under the law." Lycott bid
$10,300.
Michael P. Kennedy, Holland representative on the Tantasqua Regional School Committee, told selectmen Wednesday night that an ad hoc committee will examine all aspects of the town's regional and elementary education, such as structure and funding. He is co-chairman of the committee, along with former Tantasqua High School Principal Francis G. Simanski, the Sturbridge representative on the Tantasqua school committee.
He said the committee expects to report its findings in about 18 months to all five Tantasqua towns. Brimfield, Brookfield and Wales are the other members. Mr. Kennedy said he wants a 10-year plan and Mr. Simanski wants a vision for the next five years.
He said he sees a lot of opportunity to change and perhaps improve things with everyone's help. "It's going to be a comprehensive look at education for our communities, and we're going to need your help," he said.
HOLLAND - Selectmen agreed this week to keep the status quo after the annual town election Monday, with James E. Wettlaufer continuing to serve as chairman and Christian J. Petersen Sr. as clerk. The board also agreed to revert to a summer schedule and meet every other Wednesday, starting next month.
Selectmen approved a change in management at P.J.'s Town Crier from owner Eric Bayliss to Brenda A. Malburne. They voted for: Mr. Petersen to serve as the board's representative to the Quaboag Valley Business Assistance Corporation; to renew accidental death and dismemberment insurance for police and fire personnel; and to accept a $9,550 contract from Aquatic Control Technology of Sutton for lake management and weed control of Hamilton Reservoir in fiscal 2008.
Lycott Environmental Engineering of Southbridge held that contract with the town for years, but its bid came in $1,000 more than ACT's, Mr. Wettlaufer said, "and therefore could not be awarded the contract under the law." Lycott bid
$10,300.
Michael P. Kennedy, Holland representative on the Tantasqua Regional School Committee, told selectmen Wednesday night that an ad hoc committee will examine all aspects of the town's regional and elementary education, such as structure and funding. He is co-chairman of the committee, along with former Tantasqua High School Principal Francis G. Simanski, the Sturbridge representative on the Tantasqua school committee.
He said the committee expects to report its findings in about 18 months to all five Tantasqua towns. Brimfield, Brookfield and Wales are the other members. Mr. Kennedy said he wants a 10-year plan and Mr. Simanski wants a vision for the next five years.
He said he sees a lot of opportunity to change and perhaps improve things with everyone's help. "It's going to be a comprehensive look at education for our communities, and we're going to need your help," he said.
Alaska Airlines Presents Counter-Offers on Pilot Contract.
of a proposed contract.
Alaska Airlines issued the following statement regarding its bargaining with ALPA to date:
"Since negotiations began, the company has been clear that we are open to a wide variety of tradeoffs, such as increasing wages and retirement security in exchange for improved productivity. However, Alaska Airlines, the ninth-largest U.S. carrier, has the second-highest pilot labor costs in the industry and is not in a position to increase the total cost of its pilot contract at a time of rapidly rising fuel prices and a deteriorating economy. Nevertheless, the company has proposed to contractually increase pilots' current opportunity for annual profit sharing.
"ALPA's proposals to date would burden Alaska Airlines with the highest-cost pilot contract in the industry by a significant margin. That simply doesn't work for our customers, employees and shareholders."
Several highlights of the airline's proposed five-year contract include:
- The company's wage proposal on signing would elevate top-of-scale Alaska Airlines captains and seven-year first officers to the third-highest pay rate in the industry (behind Southwest and American). The offer would also provide annual scale increases and a mechanism for additional annual increases if warranted by changes in market pay rates.
- At ALPA's request, the company kept the incumbent retirement plans unchanged. Alaska Airlines' counter-proposal on retirement would offer new- hire pilots participation in a 401(k) plan with a company contribution that exceeds what most other U.S. airlines offer. Closing the existing defined benefit plan to new pilots improves the long-term security of the pension fund for current participants.
- The company's counter-proposal on insurance would slightly increase pilots' monthly contribution, but would provide them with expanded dental and vision benefits; improved short-term disability, life, and accidental death and dismemberment insurance; eliminate the prescription drug deductible; and add a cap on annual increases in employee contributions.
- The Alaska Airlines counter-proposal does not propose any significant change over current language regarding code-share and contract flying.
Alaska Airlines also stated that, "Changing industry economics may affect the company's future proposals."
Alaska Airlines' contract with its pilots became amendable (open for negotiation) on May 1, 2007. Since January 2007, ALPA and the company have been bargaining nearly every week, often three days a week. At ALPA's request, negotiators for both parties have discussed almost every line of the contract and agreed to innumerable improvements for pilots.
"To resolve our differences, Alaska Airlines has indicated its willingness to continue meeting with ALPA negotiators as often as needed," the company said in a statement.
Alaska Airlines and Horizon Air together serve 93 cities through an expansive network in Alaska, the Lower 48, Hawaii, Canada and Mexico. For reservations, visit alaskaair.com. For more news and information, visit the Alaska Airlines/Horizon Air Newsroom at alaskaair.com/newsroom
of a proposed contract.
Alaska Airlines issued the following statement regarding its bargaining with ALPA to date:
"Since negotiations began, the company has been clear that we are open to a wide variety of tradeoffs, such as increasing wages and retirement security in exchange for improved productivity. However, Alaska Airlines, the ninth-largest U.S. carrier, has the second-highest pilot labor costs in the industry and is not in a position to increase the total cost of its pilot contract at a time of rapidly rising fuel prices and a deteriorating economy. Nevertheless, the company has proposed to contractually increase pilots' current opportunity for annual profit sharing.
"ALPA's proposals to date would burden Alaska Airlines with the highest-cost pilot contract in the industry by a significant margin. That simply doesn't work for our customers, employees and shareholders."
Several highlights of the airline's proposed five-year contract include:
- The company's wage proposal on signing would elevate top-of-scale Alaska Airlines captains and seven-year first officers to the third-highest pay rate in the industry (behind Southwest and American). The offer would also provide annual scale increases and a mechanism for additional annual increases if warranted by changes in market pay rates.
- At ALPA's request, the company kept the incumbent retirement plans unchanged. Alaska Airlines' counter-proposal on retirement would offer new- hire pilots participation in a 401(k) plan with a company contribution that exceeds what most other U.S. airlines offer. Closing the existing defined benefit plan to new pilots improves the long-term security of the pension fund for current participants.
- The company's counter-proposal on insurance would slightly increase pilots' monthly contribution, but would provide them with expanded dental and vision benefits; improved short-term disability, life, and accidental death and dismemberment insurance; eliminate the prescription drug deductible; and add a cap on annual increases in employee contributions.
- The Alaska Airlines counter-proposal does not propose any significant change over current language regarding code-share and contract flying.
Alaska Airlines also stated that, "Changing industry economics may affect the company's future proposals."
Alaska Airlines' contract with its pilots became amendable (open for negotiation) on May 1, 2007. Since January 2007, ALPA and the company have been bargaining nearly every week, often three days a week. At ALPA's request, negotiators for both parties have discussed almost every line of the contract and agreed to innumerable improvements for pilots.
"To resolve our differences, Alaska Airlines has indicated its willingness to continue meeting with ALPA negotiators as often as needed," the company said in a statement.
Alaska Airlines and Horizon Air together serve 93 cities through an expansive network in Alaska, the Lower 48, Hawaii, Canada and Mexico. For reservations, visit alaskaair.com. For more news and information, visit the Alaska Airlines/Horizon Air Newsroom at alaskaair.com/newsroom
Friday, May 22, 2009
Zurich Life Introduces Global Group Solutions -- New Group Life, Disability Income and Accidental Death Insurance For Foreign-Based U.S. Employees.
Zurich Life, in partnership with Zurich, Life International, today announced the launch of Zurich Life Global Group Solutions, offering U.S. corporations tailored group plans for life, long term disability (LTD) and accidental death and dismemberment
AD & D) insurance for foreign-based employees. Global Group Solutions targets the growing need of U.S. corporations to provide affordable coverage to their internationally mobile employees, whose numbers steadily increase in today's expanding global marketplace.
"More U.S. corporations are sending consultants and executives to foreign countries, but many of those employees don't enjoy the same level of life or disability income insurance coverage as their U.S.-based counterparts, leaving them under-protected," said Zurich, Life International's Kathleen Longueil, sales manager, North America.
"In the past, the only option many corporations had for providing coverage for their international employees was self-insurance, which can be cost- prohibitive," Longueil continued. "Through Global Group Solutions, we are one of the few U.S. carriers who provide corporations with affordable coverage for this niche market."
Zurich, Life International has more than 20 years of international experience and expertise in meeting the life insurance and disability income needs of expatriates. That experience includes proven underwriting and managing financial risk, regulations, currency, taxes and terminology in an international environment. Zurich Life brings expertise in U.S. style policy wording and format, local marketing support, and responsive service. Collectively, this experience allows Global Group Solutions to provide the understanding, support, and financial protection management that corporations and their internationally mobile employees need.
For additional information about Global Group Solutions, visit http://www.zurichlife.com and click on Global Group Solutions or call 866.800.7291.
Zurich Life ( http://www.zurichlifeus.com ) is a leading provider of risk management and asset accumulation solutions for individuals and institutions. These financial solutions include term life insurance, universal and variable universal life, fixed and variable annuities, and bank-owned life insurance. Zurich Life distributes its products directly to consumers and through a variety of channels, such as independent broker/dealers, life insurance agencies, banks, and financial planners. Zurich Life has more than $17 billion in assets under management and $251 billion of life insurance in force as of December 31, 2000.
Zurich Life, in partnership with Zurich, Life International, today announced the launch of Zurich Life Global Group Solutions, offering U.S. corporations tailored group plans for life, long term disability (LTD) and accidental death and dismemberment
AD & D) insurance for foreign-based employees. Global Group Solutions targets the growing need of U.S. corporations to provide affordable coverage to their internationally mobile employees, whose numbers steadily increase in today's expanding global marketplace.
"More U.S. corporations are sending consultants and executives to foreign countries, but many of those employees don't enjoy the same level of life or disability income insurance coverage as their U.S.-based counterparts, leaving them under-protected," said Zurich, Life International's Kathleen Longueil, sales manager, North America.
"In the past, the only option many corporations had for providing coverage for their international employees was self-insurance, which can be cost- prohibitive," Longueil continued. "Through Global Group Solutions, we are one of the few U.S. carriers who provide corporations with affordable coverage for this niche market."
Zurich, Life International has more than 20 years of international experience and expertise in meeting the life insurance and disability income needs of expatriates. That experience includes proven underwriting and managing financial risk, regulations, currency, taxes and terminology in an international environment. Zurich Life brings expertise in U.S. style policy wording and format, local marketing support, and responsive service. Collectively, this experience allows Global Group Solutions to provide the understanding, support, and financial protection management that corporations and their internationally mobile employees need.
For additional information about Global Group Solutions, visit http://www.zurichlife.com and click on Global Group Solutions or call 866.800.7291.
Zurich Life ( http://www.zurichlifeus.com ) is a leading provider of risk management and asset accumulation solutions for individuals and institutions. These financial solutions include term life insurance, universal and variable universal life, fixed and variable annuities, and bank-owned life insurance. Zurich Life distributes its products directly to consumers and through a variety of channels, such as independent broker/dealers, life insurance agencies, banks, and financial planners. Zurich Life has more than $17 billion in assets under management and $251 billion of life insurance in force as of December 31, 2000.
Subscribe to:
Comments (Atom)