HIPs

Approximately 2.5 million people in the U.S. have a pre-existing medical conditions making them uninsurable. Private insurers are not equipped to insure these people. To provide insurance, over half of all state governments play a role by chartering nonprofit health insurance plans, or HIPs. Premiums are made affordable by allowing HIPs to impose a small assessment on the premiums earned by private insurers.
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Variable annuity

A variable annuity is a contract with an insurance company where you make a lump-sum payment or series of payments in return for future income earnings at some future date. The value of a variable annuity depends on the chosen investment option. Variable annuities offer tax deferred earnings, death benefit to a beneficiary, and the option of periodic or indefinite payment stream.
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"Dead janitors" life insurance

"Dead janitors" life insurance became big business during the 1990s. Companies began buying life insurance for their employees without disclosure. Corporations benefited from life insurance proceeds that were tax free. Some even borrowed against these life policies for leverage. The IRS subsequently cracked-down on this type of corporate-owned life insurance.
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Insurance loyalty

A recent study of baby boomers found this group to be most loyal to insurance brands over all other purchased products. The brand survey of 30,000 U.S. boomers found them more likely to switch brands in products such as apparel, cars, prepared foods, and airlines. They were least likely to switch in categories such auto and home insurance, medical insurance, life insurance and banks.
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Loss ratio

In the business of insurance, the loss ratio is a snapshot ratio of claim losses to premiums, usually calculated for a one-year period. For example, if losses total $800,000 and collected premiums equal $1,000,000, the loss ratio is 800,000 to 1,000,000 or 80%. The loss ratio can be calculated with different components of premiums and claims.
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Untraditional partnerships

Insurance companies are seeking growth in countries such as India, Romania and Nicaragua. According to a recent Wall Street Journal article, insurance companies are selling in developing countries by educating new customers, selling unusual insurance policies, and by developing untraditional partnerships. Interestingly, local languages of some customers do not even have a word for insurance.
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Ancient Babylonia

The concept of life insurance was first developed in ancient Babylonia. Merchants and investors devised a system of contracts that offered protection if a trader was robbed of his goods. The trader paid the lender for protection while the lender collected premiums from many traders. Later, this protection arrangement was extended to cover murder, the start of life insurance.
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The Million Dollar Round Table

The Million Dollar Round Table was started in 1927 by 32 life insurance producers, each of whom had sold at least $1 million of life insurance. Today, MDRT is an independent association of the world's most successful life insurance and financial services professionals. New York Life Insurance has achieved the highest MDRT agent membership among all insurers for 53 consecutive years.
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Risk

Author Peter L. Bernstein's book "Against the Gods: The Remarkable Story of Risk" is a classic read on the subject of risk. Bernstein develops a comprehensive history of man's attempt to understand risk and probability; from ancient Greece through modern chaos theory. Bernstein also demonstrates the underlying importance of risk in everything from wine making to bridge-building.
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Laughter

The health benefits of laughter include reduced stress, lower blood pressure and an enhanced immune system. Some researchers estimate that laughing 100 times is equal to 10 minutes on the rowing machine or 15 minutes on an exercise bike. Mentally, laughter provides a way for stressful emotions to be harmlessly released from your body. Some researchers even believe laughter may add more years to your life.
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FICA

FICA is a deduction item on your pay stub. FICA stands for Federal Insurance Contributions Act, which was enacted as part of the Social Security Act of 1935. FICA requires employers to withhold a set percentage of an employee’s salary each pay period to fund retirement income, disability insurance, and medicare and benefits for survivors. The program began collecting taxes and paying benefits in 1937.
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The Equitable group policy

The Equitable Life Assurance Society developed the first group insurance policy in the United States in 1911. The Pantoste Leather Company's 125 employees were underwritten in a group policy that required no individual application or medical examination. Equitable formalized its group policy product a year later. By 1919, nearly 30 companies in the U.S. were selling group insurance policies.
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Entrapment

The 1999 drama "Entrapment" stars Sean Connery and Catherine Zeta-Jones. Working for an insurance firm, Gin Baker is tasked with capturing infamous art thief Robert McDougal. Baker entraps McDougal by convincing him that she is an art thief. The two pull off a major art heist as the plot twist reveals Baker is indeed a real art thief unbeknownst to her insurance firm employers.
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Most dangerous jobs

Are you at risk for death or disability? According to the Bureau of Labor Statistics, the top ten most dangerous jobs are: timber cutters, airplane pilots, construction laborers, truck drivers, farm occupations, groundskeepers, laborers, police and detectives, carpenters, and sales occupations.
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Disabled Americans

Social Security paid an average monthly benefit to about 7 million disabled Americans, according to recent statistics. The government considers a person disabled when they meet the following conditions: they cannot do work that they did before; they cannot adjust to other work because of their medical condition; and their disability has lasted or is expected to last for at least one year or to result in death.
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Insurable risks

Insurable risks must meet certain standards in order be underwritten by insurance. A potential loss must be calculable, unlikely, and accidental in nature. It should be relatively costly and occur infrequently. Additionally, a large number of people must be exposed to the same type of loss, while those exposed should not sustain losses in large numbers at the same time.
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Dropping unnecessary coverage

You can save money on your auto insurance by dropping unnecessary coverage. Determine the current value of your vehicle. If the value is less than $2,000, drop collision coverage from your policy and put the premium savings in your pocket. Also, save additional premium by raising your policy deductible to at least $500.
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Teen driving

Night driving has been identified statistically as one of the biggest factors for teen driving crashes. These statistics have prompted states to enact night driving restrictions for teen drivers. According to a recent study by the AAA Foundation for Traffic Safety, states with nighttime and passenger restrictions recorded 20 percent fewer injury crashes among teens versus states without such provisions.
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Colorado

The state of Colorado's 30 year-old no-fault auto insurance system expired on July 1, 2003. By 2007, a tort-based insurance system in Colorado saw auto insurance premiums go down by nearly 32%. Industry experts suggest the state's move from no-fault to tort-based insurance system resulted in less mandatory insurance and less duplication of coverages, which produced lower premiums.
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Healthcare fraud

Fraud accounts for about 10% of all healthcare expenditures in the United States, according to the Government Accounting Office and National Health Care Anti-Fraud Association. Healthcare insurance fraud breaks down as follows: medical providers account for 80%, consumers 10% and the rest by other sources. Organized crime has also been found to be heavily involved in health care fraud.
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The Richter Scale

The Richter Scale was developed by Charles Richter in the 1930s and is a logarithmic measurement of the amount of energy released by an earthquake. For each one-point magnitude increase of an earthquake on the Richter Scale, about thirty-two times more energy is released. Other earthquake measurements include the Mercalli Intensity Scale and the Moment Magnitude Scale.
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Uninsured drivers

Although auto insurance is mandatory across the United States, the numbers of uninsured drivers continue to climb. Nearly 15% of drivers did not have auto insurance, according to data from the Insurance Research Council. The southwest region of the U.S. recorded the highest percentage of uninsured drivers while the northeast recorded the lowest.
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Motorcycles

According to the National Highway Traffic Safety Administration, there are about 6 million motorcycles registered in the U.S. Motorcycle fatalities represent about 5% of all highway fatalities each year in the U.S., yet motorcycles represent just 2% of all registered vehicles. Approximately 80% of reported motorcycle crashes result in injury or death as compared to 20% for automobiles.

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Vermont captives

Vermont has more captive insurance companies than any other U.S. state. A captive insurance company is an insurance company set up by a parent organization for the sole purpose of underwriting the parent organization's insurance needs. Vermont attracts these companies through favorable regulations. In 1981, Vermont passed a special law making it easier for captives to be set up in that state.
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Friendly Society

The first insurance company in America was established in Charlston, South Carolina in 1736. Operating under a Royal Charter from England, the Friendly Society covered fire losses of its members, who contributed directly to a fund that paid claims. The company was dissolved in 1738 after fire destroyed most of Charlston.
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Identity theft

Identity theft occurs when someone wrongfully uses another person's personal data in some way that involves fraud or deception. According to Gartner, there were nearly 15 million American victims of identity theft last year, with an average loss of over $3,200. Identity theft insurance provides reimbursement to crime victims for the cost of restoring their identity and repairing credit reports.
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Life insurance rule of thumb

Life insurance is a contract in which an insurance company agrees to pay money to a designated beneficiary upon your death. A general life insurance rule of thumb says purchase a policy valued at five times your current earnings, plus two times earnings for every dependent.
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Policy discounts

Insurance companies commonly offer a discount up to 15% when you purchase two or more polices with them. For example, when you purchase homeowners and auto insurance policies. Take advantage of this discount by insuring your home and autos with the same insurance carrier. In addition to saving money, dealing with one agent or insurance representative will save you time.
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Benjamin Franklin

Benjamin Franklin led the effort to create America's first successful fire insurance company. The Philadelphia Contributionship for the Insurance of Houses from Loss by Fire was established in 1752 with a board of directors and seventy shareholders. The first insured property to burn was repaired for 154 pounds, nearly a third of the Society's assets.
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