The Federal Housing Administration (FHA) has announced that it will be lowering the premiums for mortgage insurance for individuals who are refinancing their loans due to the housing market improvement strategy by President Barack Obama. The FHA has stated that it will be reducing the up-front premiums to bring them down from their former position at 1 percent, to 0.01 percent. This was indicated in a fact sheet that the Obama Administration began distributing on Tuesday. According to that same fact sheet, there will also be a reduction in the…
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Eqecat weighs in on the recent storm in Midwest and Southern U.S
Last week’s outbreak of devastating tornadoes in the South and Midwest of the U.S. are likely to cost the insurance industry quite a lot of money. Thus far, no insurer has been keen to release estimates regarding the total cost of the disasters, but risk modeling agency Eqecat is willing to hazard a guess. The acclaimed modeling firm says that this year’s storm season is already looking to be 30% more disastrous and costly than the average of previous years. The firm also notes that tornadoes may be one of…
Read MoreFlorida lawmakers pass new bill designed to combat auto insurance fraud in the state
The Florida House of Representatives has passed a new bill that aims to dismantle auto insurance fraud in the state. The bill, House Bill 119, passed with a vote of 85-30, receiving a great deal of support from both political parties. The bill will now contend with a similar legislation heading to the state’s Senate, Senate Bill 1860. Both bills have similar goals, but seek to accomplish them in differing ways. Governor Rick Scott, who has made insurance fraud a top priority this legislative session, says that the ultimate goal…
Read MoreInsurance Law Podcast examines the use of social media as a tool for the insurance industry
A.M. Best, a worldwide ratings and financial data services company serving the global insurance industry, has released its latest installment of the Insurance Law Podcast. The series focuses on insurance issues from a legal perspective and seeks to supply viewers with an understanding of how insurance laws are affecting the industry as a whole. This week’s podcast focused on the issue of insurers using social media to price policies and investigate claims. The latest podcast features attorneys Daniel Santaniello and Heather Calhoon from Luks, Santaniello, Petrillo & Jones law firm.…
Read MoreGlobal insurance programs have significant challenges to overcome if they want to be viable
The global insurance industry is an ardently regulated entity. Most nations have strict laws and rules concerning insurance and have a great deal of interest in applying these regulations as a way to govern the actions of insurance companies. The problem, however, is that these regulations differing wildly from country to country, meaning that no two countries have the same regulations. As such, creation of global insurance programs has been a gargantuan challenge, and one that cannot be easily overcome through tenacity. As with other industries of business, insurance is…
Read MoreCalifornia insurance regulators target GeoVera Insurance, imposing fines and requiring the company to make changes to underwriting
California insurance regulators have taken action against GeoVera Insurance Co., providers of residential earthquake insurance, this week. Regulators took notice of the company after having received a multitude of complaints from policyholders. According to these complaints, the insurer’s underwriting procedures are not as adequate as they are supposed to be. Regulators have investigated the matter and found that the insurer’s practices were indeed falling short of the state’s standards. GeoVera will be facing major changes as regulators look to make the company more compliant with state laws. The insurer will…
Read MoreIndia seeks alternatives to European maritime insurers as EU sanctions on Iran loom
As the European Union prepares to impose sanctions on Iran and breaks its trade agreement with the nation, the maritime insurance industry is facing a bleak and complicated future. Insurers will not be the only ones to suffer from the move, however, as countries that depend on oil from the Middle East will also feel the impact of the action. Even countries that do not rely on Iranian oil are claiming that the EU’s actions will have a major effect on their economies. Such is the case in India, where…
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