Pay the Small Claims!
You choose, it could be 9/11, the Enron debacle, or simply the economy, but the insurance industry has been hit hard with large claims and is clearly stressed. Besides raising rates, the best Valium for the insurance industry is updating their underwriting guidelines for home, auto and umbrella coverage. This is not a good situation for the insurance buyer.

Claims… Violations… Youthful Operators… Coastal Properties are all re-examined when underwriting guidelines are updated, to improve the profitability of the business, with the goal of relieving the financial stress.

Would you like a heads up? It all starts with the claims. Insurance companies are happy to poke along with your business, collecting your premiums to add to the bottom line, until you have a claim. It is at this point that all the other questionable underwriting detail is reviewed. Have you had any motor vehicle violations, do you have children driving, or are you within 1 mile from the coastline?
The insurance industry is under financial stress never before experienced. So for the next couple of years, if you can, give some consideration to paying that small claim from your own pocket, viewing your insurance as strictly catastrophic coverage. Because it's the claim that starts the re-underwriting process in motion, and that is when all the non-renewals begin.
 

Insurance Rates on the Move
We thought you might like the inside scoop on rate increases for those insurance companies that are big underwriters in our area:

Chubb:
Increased home rates by 5% on average on 11/1/2001, but the larger homes will be more. Auto rates are going up 4%.

AIG Private Client:
No rate increase that we are aware of at this time.

Fireman's Fund:
Taking a 17+% rate increase affective 4/1 on homeowners, auto is also going up.
  Estate Planning - Testamentary Trusts

There are many terms to describe it; Family Trust, Credit Shelter Trust, Bypass Trust, different names with the same objective. In estate planning testamentary (created at death) trusts are implemented to take advantage of the Estate Tax exclusion. The bulk of these trusts are based on a formula and that unfortunately, may no longer work for your family. You and the new tax law may be inadvertently, disinheriting your spouse. Time to call your attorney and review your plans.
1700 East Putnam Ave
Old Greenwich, CT 06870
203.637.6655 Fax 203.637.6700