Insurance World

Before signing an auto insurance contract, we are involved in understanding some basic terms related to the car insurance policy.The phrase “your covered auto” also applies to several other particular circumstances.

Usually, physical damage coverage will apply to newly acquired vehicles (whether additional or replacement vehicles) only if you request the coverage within 30 days of the acquisition. However, liability coverage for a replacement vehicle is automatically provided until the end of the policy period.

The liberalization clause states that if the insurance company makes a change to its policy form which provides broader coverage without a premium charge (for example, if it drops a policy exclusion), that change will automatically apply to your policy on the date the change goes into effect in the insured’s state. This simply eliminates the need of the insurance company to endorse all existing policies when coverage is expanded without a change in premium.

Cancellation is an important issue. In most states, the reasons for which an insurance company is permitted to cancel a policy are limited—if the policy has been in effect for at least 60 days or is a renewal policy.

The general agreement is a very brief statement. It means simply that all of the remaining provisions of the contract (the policy terms) apply. The reason that the general agreement is so brief is that each coverage section contains a much more detailed insuring agreement.

Exclusions involve some of the most heated—and most often litigated—disputes over insurance language.Some exclusions exist simply to remove coverage for above-average risk factors which are not anticipated in average rates and premiums, and that the coverage is often available for an additional charge.

This is the case with respect to audio, visual and data equipment and the tapes, records, and other media used with such equipment. The basic policy form excludes coverage because these are items of value which have an above-average exposure to theft losses (they are easily removed and are often targets for thieves).

On the other hand, some people want specific drivers excluded from coverage. These special exclusions have become increasingly common in recent years.

Liability is probably the most important kind of automobile insurance. It covers moneys owed when one automobile driver causes bodily injury to another person or damage to another person’s property.

Injury or damage suffered by a driver who causes an accident is not a matter of legal liability. Being liable means being legally responsible for damages suffered by a third party (someone other than the driver or owner of the vehicle).

If a driver who causes injury or damage suffered by another person can be shown to be at fault, that driver may be held liable for the accident.

In other words, if one driver is liable for an accident, then the other party may be entitled to compensation for injuries or damage or both. Compensation may be in the form of money paid to the injured party for tangible damages (such as a medical bill or the cost to repair a damaged vehicle) and/or money paid for intangible damages (such as pain and suffering).

There are some jobs that you know are high risk: firefighting, construction work, military service. What people don’t realize is that some jobs can put you at risk for microscopic toxic substances that damage the respiratory system, silently yet steadily, and by the time you’ve discovered that you’re sick, you’re already been diagnosed with lung cancer.

Look at the odds: 150,000 people develop lung cancer a year, and 15% of those are from people who had been exposed to chemical substances (asbestos, silica dust, radon, and environmental pollutants) while they were at work. If you are in any of the following occupations, you should take out disability insurance. It gives the assurance that if you do get sick because of your job, and have to take weeks and months off for treatment, you’ll be properly prepared. In fact, disability insurance will often replace up to 80% of your gross income, tax-free. It’s money when you need it most—when medical bills are high, and you no longer have your job to pay them.

Shipbuilders are exposed to fiberglass, which have been linked to a higher incidence of cancer. While most manufacturers insist that they’re safe, lab tests and statistics say otherwise. In fact, this evidence has been available for over twenty years, but no laws monitor exposure to fiberglass materials. Some shipbuilders are also exposed to asbestos, another toxic substance that has been banned by some countries.

Asbestos was used in pipe insulation, making pipefitters (especially those who have been working on it before the 1980’s) at risk for asbestos inhalation. Asbestos clings to the lungs, causing lung cancer, mesothelioma, and asbestosis. Pipe fitters are also at high risk to benzene exposure. Benzene is a carcinogen that has been linked to lung cancer. The same problem plagues anyone who has worked in any job related to insulation.

Tile workers who mount ceiling and floor tiles and other shock-absorbing materials are exposed to high levels of dust. This can cause respiratory diseases, asthma, and lung cancer. The dust can also irritate the eye and skin, and make it susceptible to infections.

Welders and Refinery Workers are exposed everyday to a toxic mix of carcinogens like benzene, poisonous fibers, and gases. This profession has a high rate of reported cases of cancer, aside from physical injuries that can result from working with very sharp objects and hot metals. Sanders face the same problem, inhaling silica dust and noxious fumes. These gases can all scar the lungs, and trigger mesothelioma and lung cancer. Protective gear helps, but since the substances are in the air and are not fully filtered out, just breathing puts you at risk.

You may love your job, or you may not have the option to quit. However, you need a safety net. Since you are exposed to known chemical hazards (even if you can’t see them) it is necessary to take out disability insurance so you or your family will not suffer from financial problems if and when you do get sick.