Insurance company requirements

A certain insurance company requires a 30% overhead on the premiums. If the payment to your beneficiary is 100,000 and you pay 1,500/yr in premiums, what is your probability of dying in the year ... 

In some instances, special terms may be applied. For example, where the insurance company requires the installation of an intmder alarm, the protected premises must be attended unless the alarm is put into full operation. In other cases, cover under the policy may apply only when the property insured is left within agreed and designated areas. 

In contrast to systems that are set up to transmit local only alarms when the sensors are triggered, systems can also be set up to transmit signals to a central location, such as to a control room or guard post at the utility, or to a police or fire station. Most fire/smoke alarms are set up to signal both at the location of the event and at a fire station or central monitoring station. Many insurance companies require that facilities install certified systems that include alarm communication to a central station. For example, systems certified by the Underwriters Laboratory (UL) require that the alarm be reported to a central monitoring station. 

Will pressure vessels be designed to ASME and insurance company requirements ... 

Independent inspectors authorized by DOT, TC, or both, are required for high pressure cylinders. Inspectors are required to file a report on each container that is made under the specifications of these regulations before the container goes into service, and generally each container made is identified and registered by a serial number and manufacturer s symbol. Compliance with one or more of these regulations is often stipulated in state and insurance company requirements, as well as in federal regulations. 

Code Administration The American Society of Mechanical Engineers has written the ASME Boiler and Pressure Vessel Code, which contains rirles for the design, fabrication, and inspection of boilers and pressure vessels. The ASME Code is an American National Standard. Most states in the United States and all Canadian provinces have passed legislation which makes the ASME Code or certain parts of it their legal requirement. Orrly a few jurisdictions have adopted the code for all vessels. The others apply it to certain types of vessels or to boilers. States employ inspectors (usually under a chief boiler inspector) to enforce code provisions. The authorities also depend a great deal on insurance company inspectors to see that boilers and pressure vessels are maintained in a safe condition. 

Inspection Authority The National Board of Boiler and Pressure Vessel Inspectors is composed of the chief inspectors of states and municipalities in the United States and Canadian provinces which have made any pari of the Boiler and Pressure Vessel Code a legal requirement. This board promotes uniform enforcement of boiler and pressure-vessel rules. One of the board s imporiant activities is providing examinations for, and commissioning of, inspectors. Inspeciors so qualified and employed by an insurance company state, municipality, or Canadian province may inspect a pressure vessel and permit it to be stamped ASME—NB (National Board). An inspector employed by a vessel user may authorize the use of only the ASME stamp. The ASME Code Committee authorizes fabricators to use the various ASME stamps. The stamps, however, may be apphed to a vessel only with the approval of the inspector. 

Define plant areas handling hazardous and lethal materials and set rules for design considerations, such as ventilation, explosion walls, etc. Flammable storage materials may require enclosed dikes, foam systems and the like. Refer to National Board of Fire Underwriters or specific insurance company to coordinate recommended protection. Attaway has details on many points to consider. 

It is generally tme that the statutory instmments and authorities are concerned with the preservation of life as their primary objective. Consequently, the requirements of insurance companies with regard to the preservation of the building or its material contents may be more involved. Adherence to such requirements (or otherwise) will be reflected in the insurance premiums quoted. 

It is essential to discuss the requirements for stmc-tural protection, compartmentalization, emergency lighting, detection, alarms, call points, suppression, means of escape and signage with the applicable local authority, fire brigade or insurance company personnel before finalizing designs. 

Engineer surveyors employed by engineering insurance companies have always been regarded as being competent persons as required by these various Acts. The knowledge and experience, which has been accumulated by the companies over the years, enables them to offer to industry and commerce a service of exceptional quality. 

Reasonable Precautions Condition under which the client is required to take reasonable precautions to safeguard the insured property and secure the premises, including the installation, use and maintenance of any security precautions stipulated or agreed with the insurance company. 

The assessment will establish whether the existing security arrangements equate to the standards normally looked for by the insurance company for the specific theft insurance exposure. If the security falls short of these standards, the insurance company will submit a list of security items requiring improvement. Pending satisfactory completion of these items, insurers may ... 

While the insurance company s security requirements against the risk of theft may go some way towards countering these other vulnerabilities, some of these issues present significantly different security problems and they may require separate assessment and control. This emphasizes the need for a total plan to cover all aspects of security. If planning is piecemeal, some aspect may be overlooked and the benefits (financial and operational) of a totally integrated approach will be lost. 

Storage tanks should, wherever possible, be installed above ground. The site selected should not be in an unduly exposed position. Clearance must be allowed for the withdrawal from the tank of fittings such as immersion heaters and steam coils. Where tanks are installed inside buildings, they should generally be located within a tank chamber, although in some industrial installations such as steelworks and foundries, a tank chamber may not be necessary. The requirements of insurance companies and local authorities should be considered when designing these installations. 

Most safety practices for electrical installations are based on the National Electric Code (NEC).11 Although states, municipalities, and insurance companies may have their own installation requirements, they are usually based on the NEC. 

Quite often, insurance companies, the local Authority Having Jurisdiction (AHJ), corporate staffs, and others will have the responsibility to review and approve fire protection system designs to ensure compliance with their specific requirements. Designers should identify such requirements and ensure that these are adequately addressed in developing the design for the fire protection system. 

Additionally, changes in insurance companies (hence changes in protection desired) or a change in ownership that requires different levels of protection can impact the facility s fire protection strategy. 

Acceptance tests should be documented. Local regulations, insurance carriers, and company requirements may require that officials from these groups witness the acceptance testing. Acceptance testing typically includes ... 

In product-driven therapeutic research, the pharmaceutical company must satisfy the regulatory and government agencies as well as the prescribers that the new product is effective, safe and meets the qualities required of GMP. The institutions that will pay for the drug -an insurance company or a government health authority - will need to be convinced that the product is good value. In return, the pharmaceutical company may, at some time in the future, recoup sufficient profit to pay the shareholders but also to pay for the development of the product. In the past, pharmaceutical companies... 

Making prototypes and laboratory testing of polymer disks are projects that require limited cost and time duration. Certification by the FDA, on the other hand, is a long drawn out and costly process, where animal tests are followed by three phases of clinical trials, which have been described elsewhere (e.g. Suffness 1995). When the results are assessed and evaluated, a brand new product that costs more than 100 million can also run into many unforeseen problems, which makes many financiers very cautions. One of the biggest unknowns is who would pay for this costly new form of medication, and whether the medical insurance companies and Medicare would approve payment. This is the reason why so many information technology products, such as digital cameras and spreadsheets, are launched quickly, as they require much less capital to start and do not require FDA clearance. 

The Senate passed a bill in 2003 prohibiting discrimination based on the results of a genetic test, but the House of Representatives has not yet considered the issue. Although HIPPA strengthened the requirement to protect the privacy of personal medical information, including family history and results of genetic tests, an insurance company would know that the genetic test had been performed if it was asked to pay for it. 

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) requires the EPA to "clean up" chemical disposal sites. The cleanup funds are raised through a combination of tort suits against companies that have had some connection with either the disposal site or the chemicals (joint-and-several strict liability) and taxes on petroleum production, hazardous-waste facilities, and chemical products. When judgments go against landowners, trucking firms, container corporations, or other firms less directly connected with the site, the defendants ask their insurance companies to pay these judgments. Courts, then, must decide whether liability insurance contracts cover such claims. 

The difference between compensation and reimbursement is one of the first concepts that require further explanation. One of the goals of value-added services is to receive compensation for services. This means that the patient, insurance company, or some other entity has paid for the direct cost of the service plus the perceived value of that service. Reimbursement, on the other hand, is payment for only the direct cost of the service without any payment above that (Hogue, 2002). In order to have a profitable service, compensation should be targeted instead of reimbursement. If only reimbursement is targeted, then only the direct costs of providing the service, such as payment for supplies, is recovered, and the net revenue may be minimal. 

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