Thus, the uninsurability
claim in our view is overstated, and the move to specialized terrorism insurers is likely an efficient one.
* AMONG THE FACTORS CPAs should consider in advising clients about section 1035 exchanges are potential uninsurability
, acquisition costs, cancellation penalties and unfavorable tax rules.
Since the solutions to the uninsurability
issue are so straight-forward and time-tested, one has to suspect the true main purpose of the alliance is to supervise price controls.
Freedman comments that, in her experience, that cost is generally slight, in the neighborhood of one-half to one percent, and can eliminate uninsurability
issues for you as well as for your employees.
Some insurance policies deal with this by promising coverage for punitive damages and excepting from the New York choice of law provision the "uninsurability
" of punitives.
Faure, Alternative Compensation Mechanisms as Remedies for Uninsurability
of Liability, 29 GENEVA PAPERS ON RISK & INS.
Should the client be unable to buy life insurance due to uninsurability
or high premium costs, he or she might purchase a non-qualified deferred annuity from a licensed agent as an alternative, observes Ferris.
Punitive damages have a significant negative effect on insurance company losses, as does the uninsurability
of punitive damages.
(139) But besides detracting from the compensation and deterrence aims of environmental liability, Faure and Grimeaud believe caps are often unnecessary since "it is usually not the amount of the expected damage that causes uninsurability
of risks, but more often the unpredictability of certain risks." (140) If insurability problems exist, they suggest that obligations to insure should be up to a certain level of coverage, but `with the liability of the injurer unlimited, as is the case already in regard to insurance requirements for nuclear power facilities.