Summary of Articles About Insurance - Paper Example

Article#1: Insurers Could Make Trouble as Fed Balance Sheet Shrinks

The article offers a comprehensive exposition of the manner in which the insurers are likely to respond to the even when the central banks relax its strong bond-buying programs. Notably, the insurance industry provides a representation of a considerable investment, with about $23 trillion globally. In this way, therefore, its activities substantially affect the market. There is a possibility that the insurers will increase their interest rate thus prompting them to sell the government debt, particularly the long-term bonds. This actions will also increase the market interest rates. This is even evident since 2008 the federal government and the insurers appeared to have accelerated rate changes. A study of the German market by the BIS revealed that the insurers possessed quadrupled their holdings of the ultra-long-term bonds. It means that those with the maturity of about 20 years have their interest lowered.

A major challenge that exists is that these actions of the insurers may operate in the opposite direction and unexpectedly. In their research, the Bank of England researchers aimed at examining the problem of insurers investment incentives and the manner in which the industry would respond to a crisis similar to 2008 one. In their view, a reduction in the interest rates is likely to put pressure on the insurers, capital bases through raising the theoretical cost of selling their liabilities. It could prompt them to reduce assets that are perceived risky such as the corporate bonds and adopt the government bonds. However, the reverse in this case, which is higher rates that encourages the greater risks and appetite and move away from safer bonds could stimulate higher rates within the market.

Article #: Las Vegas Shooting Victim Sues Owner of Mandalay Bay

This article discusses the suing of the Mandalay Bays owned by a Las Vegas, shooting the victim. In the case, the victim claims that the company did not do enough to prevent the October 1st attack that killed 58 people and injured more than one hundred. As part of the case, this is a negligence lawsuit that targeted the MGM international, which owns the Mandalay Bay. It blames the MGM for the alleged lapses that integrated failing to observe that the shooter, was stockpiling weapons at his suite and never responded rapidly even after the Mandalay security guard outside gunmans room was shoot. In the incident, the gunman Stephen Paddock opened fire on the guard, Jesus Campos, six minutes before turning his weapons to the crowd below him. In its response, the MGM Company asserted that it cannot be sure about the incident and the events that led to the shooting of the crowd. It cast doubt on the revised timeline and mentioned that it was not sure about the recently communicated timeline.

The Plaintiff, Paige Gasper, who is a 21 college student narrates that she was attending the Route 91 Harvest music festival on October 1st when the bullets started raining down on the crowd. A bullet struck her side, shattering ribs and lacerating her liver. A daunting matter is, however, that the related cases of mass shooting have always been dismissed and the families of the victims losing their cases. Similar response is evident in the 2012 Sandy Hook Elementary school killing.

Article #3: Trump Administration Calls for Fixes to Federal Flood Insurance

The article explains the action of Trump administration of wanting to provide flood insurance with authority to stop coverage for the repetitive loss that emanates from floods. Through this plan, this move is part of the broader set of a proposal aimed at shoring up the financially-troubled program. Before the Hurricanes Harvey, Irma, and Maria, the flood insurance owed the U.S. Treasury $24.6 billion. The Office of Management and Budget, however, mentioned that the recent hurricanes had inflicted nearly $16 billion loss. The program proposed by Trumps administration would have enhanced its financial resources and unable to pay the claims associated with the repetitive loss from floods. Conceivably, the government is asking the Congress to cut almost $16 billion in flood program debt as the program will require additional funds to pay claims in about three weeks.

Numerous advocacy groups have however come out to argue that the Congress should not pardon the flood programs debt without establishing appropriate and enough reforms. It is based on the fact that the Trump administration does not offer an ultimate definition of the repetitive loss. A significant concern regarding the matter would be penalization of the owners of the low-value homes, which tend to incur massive losses and suffering in the event of a disaster such as a flood. Other property owners may also find themselves shut out of the federal program. It is because the proposal would wipe out the sale of the national policies for some newly constructed homes. The imposed measure could stop the sale of new systems to businesses unless existing continuous insurance covers the property.

Article #4: U.S. Floats Nafta Proposal That Could Erode Copyright-Liability Protection

The article offers the discussion on the move of the United States to float the copyright language copyright in the North American Free Trade Agreements (NAFTA). This move is likely to destroy liability protections of the internet companies regarding the pirated content. The latest discussion in Ottawa aimed at overhauling the Nafta showed that the US negotiators did not integrate some well-established security that would protect the Alphabet Inc.s YouTube and other service providers from the liability over the pirated content. The Safe harbors language omission favored by the internet businesses raises the concerns of the Tech companies regarding the Administration shifts and focus on the copyright Laws towards the Hollywood studios. The trade agreements that include Nafta includes not only the tariffs and quotas on the physical goods but also the commercial rules of the road on myriad issues such as labor, environment and intellectual property for the future trade agreements.

While all these are happening, the actors and musicians have all come out strongly with the aim of defending their contents and also want to make it easier to make any pirated materials removed from the online platforms. As noticed in the Trans-Pacific Partnership, the unratified trade agreements signed by the former President Barrack Obama, the US achieved a balance on digital copyrights that did not fully satisfy either side of the debate. Businesses and internet companies still believed that the deal would give them other rights which could emanate from the trade agreements. For Nafta, however, the Motion Picture Association of America supports a more liability for the intermediaries for the pirated contents. If it were in Canada, such proposal might induce tremendous resistance based on the fact that the policy lenders tend to support the level of copyright protection observed in Washington.

Article #5: As Hartford Mulls Bankruptcy, Bond Insurer Offers to Help Postpone Payment

The article discusses the move of the Hartfords most prominent bond insurer to assist the city in the postponement of its payment of about $300 million debt. This move aimed at helping prevent a bankruptcy filing for the Connecticuts capital. As such, such postponement was believed to be insufficient without other fixes that include more revenue from the state.

Through its spokesman, the Assured Guaranty supported about 57% of the Hartfords roughly $550 million in the outstanding general obligation debt and would, therefore, be liable in the case the city plunges into bankruptcy again. A closer look at the entire situation shows that Hartford is in the middle of a fiscal emergency based on the weak tax based and the budget deficit of about $0 million. The company also possesses one of the lowest credit ratings in the whole of the United States. The inability of the Connecticuts lawmakers to reach agreement on a state budget has further worsened the situation as Hartford has been left short of the state funding.

The action of bond issuing by the state is a universal norm in the United States. It often occurs as a way of refunding the Old debts with the aim of taking advantage of the low-interest rates and put-off the debts payments. However, Hartfords move to hire the restructuring experts will derail the completion of the agreement without insurance based on the fact that it is ranked deep in junk status. The company is therefore likely to receive a state funding of about $40 million based on one version of the Connecticuts 2018 financial year.

Article #6: Health Insurers Stay in ACA despite Fears of Last-Minute Exits

In the article, health insurers appear to reluctantly stay in ACA despite the fact that fears of Last-Minute exists by many companies. Major insurers such as Cigna Corp, Health Care Service Corp, Molina Health Care Corp and Highmark Health have vowed to stick and continue offering their ACA insurance coverage, especially in the states and regions they had already operated. Until the final day, other insurers such as Centene Corp had not shown any sign of exiting, in addition to making any decision about the same. Regarding this, however, Cigna Corp had earlier made the confirmation that it would exit from Marylands exchange but come out and said that it would continue offering ACA services in six more states. The number of the insurers in many regions is therefore expected to reduce.

To attract and keep the insurers, various states official spent several months on the discussion table to deliberate on the approval of the substantial increases for the year 2018. It would include the extra boost to protect the insurers from possible uncertainties emanating from the manner in which law is administered. In the Mississippi for example, one exchange insurer was set to receive a rate increase of 47.4% on average. It is according to the states insurance commissioner. According to the insurers, however, the rate increases, along with other factors such as the perception of a debilitated coverage mandate are accompanied by the severe risk of a massive drop in the number of individuals being enrolled, especially the healthy ones. Finally, the Trump Administration also poses a grave threat to the insurers because it announced cuts in state funding advertising and grants that assist people in enrolling for the coverage.