Explanation of Interest Rate Insurance

The holder of a loan or of a variable rate mortgage is the one who would greatly benefit from interest rate insurance. Generally, interest rate insurance is offered independently from the originally borrowing, and typically interest rate insurance is used as an alternative to a remortgage onto a rate which is fixed.

A simple insurance policy will protect only against any risk of the repayments beginning to rise due to the interest rates, keep in mind, however, if they payments are rising because the borrower has been defaulting on repayments then you do not qualify for insurance. There is absolutely no requirement for the insurer to be checking up on the credit status of the purchaser, nor is it required of the insurer to look into the value of any assets that are secured.

Being as there will absolutely be no arrangement necessary and there will be no valuation fees, and/or bank and legal charges means that it is actually quite a bit cheaper to opt for an insurance as opposed to having to turn to a remortgage. What the absence of credit checks, as well as valuations, means is that it is able to be made available to every holder of a variable rate loan, with no exceptions.

Now, not only will an interest rate insurance provide the holder with protection from any rising interest rates, it also will under no circumstances raise the holder’s initial pay rate. As a matter of fact, it the interest rates does fall, what the policyholder will actually see is a great benefit in the form of payments on their mortgage and/or loan that are reduced, this is especially noticeable if you compare it to a fixed rate alternative. This makes interest rate insurance beneficial for those who are taking out a loan or a mortgage rather than insurance for employers.

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What’s Expatriate Insurance?

If you’re planning on living or working in a foreign country, you may wish to look into expatriate insurance. Expatriate insurance is a policy that is designed to cover you for financial and other potential losses that you may incur while residing in said foreign country.

Such insurance policies cover personal property and your personal automobile. They will also cover for emergency evacuation should there be a situation where you need to be evacuated. If you’re in need of medical or dental care they will cover this as well.

There are also clauses for short-term travel insurance and for terrorism and war. You can also find clauses that include kidnapping and ransom situations. If you’re traveling to a foreign country that has had any type of civil unrest, you’ll want to make sure that you’re able to cover your needs should an emergency situation arise.

These insurance policies are readily available by most insurance agents and brokerages. You’ll have to pay for them before you leave or arrange for funds to be withdrawn from an account to pay the premium while you’re out of the country.

Keep in mind that these kinds of insurances will go far to help you in an emergency, however, you’ll have to have access to them at the time of the emergency.┬áBut if you find yourself in an emergency situation it might take a while to literally get access.

Expatriate insurance companies will vary in the premium costs and the things that they cover so make sure that you read the fine print and abide by all of the requirements for your specific policy. If you have any questions regarding a specific situation be sure that you fully discuss this with your insurance agent at the time of procuring your expatriate policy to ensure that you’re fully covered for such a scenario.

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What Is the Patient Protection and Affordable Care Act?

The subject of healthcare has been a hot topic in recent decades, part of which has involved the Patient Protection and Affordable Care Act, which is abbreviated as PPACA or ACA. Enacted on March 23, 2010, the Act changed many aspects of the healthcare system in the US.

President Obama, with a lot of support, enacted this federal statute to help expand the health coverage by the poor in the country. This has earned ACA another name: Obamacare. No matter what you choose to call it, the action had a tremendous impact on the number of people insured and able to obtain medical coverage in states throughout the country.

It provides subsidies and various other funds to help the poor and underinsured. Pre-existing conditions and other reasons that people were often denied coverage were also addressed in the groundbreaking statute. As a result, more people have insurance than ever before.

Although that is the case, there are many people who do not support the ACA and have been working to overturn portions of the act. The current administration is among those who deem the act a burden to taxpayers and an unnecessary area of government control.

Various labor groups and unions have been working to repeal the legislation and there are many who believe that it is going to happen while President Trump is in office. The Supreme Court and other courts are likely to weigh in on cases in the future that involve the act, which could further complicate matters.

Although the statute has helped to provide medical insurance, either through Medicaid or government subsidies of private insurance, it is not clear whether or not that will continue to be the case in the future. This is an important political topic that is sure to see changes at the very least.

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Attempts To Stem A Financial Meltdown – The Dodd-Frank Act

In 2007, The United States of America (and indeed the world) was being placed under enormous financial strain through the actions of financial institutions both foreign and domestic.

Global finances were being placed under enormous strain and it was realized that a new approach to policing the actions of financial institutions was long overdue.

This led them President Barack Obama to lead the charge towards the adoption of the ‘Dodd-Frank Wall Street Reform and Consumer Protection Act‘ which became law in mid-2010.

The Act served to consolidate the regulatory agencies that oversaw the financial services sector and also (among other things) set up new oversight mechanisms to police what was by then recognized as a ‘systemic risk’ to the United States economy.

The increased regulation was aimed in large part at making sure that what had been referred to as a ‘Wild West Situation’ around the widespread practice of derivatives trading was made much more transparent.

The consumer would also receive new protections and a new Consumer Protection Agency with widespread powers was established. The days of financial institutions promising returns that were simply not within the realms of sustainability were over.

In essence the Act had two tiers. One was to protect the U.S. economy from the practices of financial institutions that had, until then been a systemic risk to the stability of both the economy and the American dollar. The second was to protect the American consumer from predatory practices that had prior to the passing of the Act caused extreme financial hardship to many individuals and families that had chosen to believe in promises of returns that were completely unrealistic.

The passing of the Act was a clear signal to financial institutions that the era of taking advantage of consumers, as well as presenting a clear and present danger to the American economy would no longer be tolerated.

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What Exactly Was The Proposed National Insurance Act of 2006?

The National Insurance Act of 2006 was first proposed back in April 2006. The purpose of this act was to help the Department of Treasury become established as an Office of National Insurance. It was going to be headed by the Commissioner of National Insurance, authorizing the Commissioner to regulate, supervise and provide some type of registration for the insurance self-regulatory organizations. The Commissioner would be responsible for supervising, licensing and chartering National insurers.

What Was Its Main Purpose?

The main purpose was to authorize the underwriting of insurance, and also provide a comprehensive system for supervising and regulating these agencies. It was designed to monitor not only insurance branches in the US, but also non-US insurance companies. Those that would offer national insurance would need to obtain a federal license because they would be converted from state to national insurance agencies. It would also remove state oversight on many of the business practices involved with insurance because they would become federally based.

Did It Go Through?

The bill itself was never enacted. Although introduced in April 2006, Congress did not approve it. It was introduced to the 109th Congress at the time. Although it did not go through, it was a radical idea which made it possible for federal oversight over many of the aspects of providing insurance in the United States. However, Congress deemed that it was not necessary as there are already state laws that govern insurance, providing proper regulation and oversight at the state level.

Though it may have seemed like a good idea, it is clear that since that time, there has been no need to present this to Congress after its failure to pass from a bill into a law. Since there have been no regulatory problems with insurance (like car insurance after a car accident) since that time, there has not been a need to reintroduce the bill in an attempt to get federal regulation over insurance policies and companies.

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What You need to Know about the Gramm-Leach-Bliley Financial Modernization Act

Toward the end of the last millennia, the banking trends throughout the industry had been in motion for several decades. Banks number of banks across the US had fallen considerably and the banks that remained had grown in size and financial power. There had been 14,000 banks in 1984 but the number dropped to 9,000 by 1999. This was part of an ongoing effort toward greater consolidation that was moving the financial services business in a new direction.

Furthermore, many of the financial services that had been separated during the second half of the century had suddenly become integrated and this included insurance, commercial and investment banking as well. By the start of the 80s, many of the commercial financial services had begun expanding into the underwriting securities as well. Some of them even began to sell insurance.

By 1999, financial integration was an established practice and Congress decided it was time to act. Bill Clinton signed the Gramm-Leach-Bliley Act at the end of 1999. The Act was named so in honor of the three congressmen that supported the act to approval. This had also been called the Financial Modernization Act would change how the financial sector operated and gave the Federal government special supervisory power.

The GLBA was intended to promote the various advantages of integration in the financial sector for investors and consumers. While still looking to safeguard the stability of the banking and financial system as a whole.

One of the biggest changes the Act introduced was the FHC or Financial Holding Company. This is essentially an umbrella organization that can manage its own subsidiaries in various financial activities. This was considered the happy medium where banks still have certain financial activities restricted but can opt to be a part of a larger organization that is involved in these activities.

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The Role Of The Government Accountability Office (GAO)

The Government Accountability Office or GAO is the watchdog for the United States federal government. This is an independent agency which helps ensure the elected members and staff of the U.S. Congress comply with all rules and regulations. The GAO audits, investigates and evaluates how the federal government spends taxpayer dollars. The GAO’s mission is to support Congress and help ensure it is meeting all constitutional responsibilities. The GAO also provides advice and recommendations on how Congress can improve and investigates when there is a possibility that federal funds were mishandled or abused.

The Comptroller General of the United States is the head of the GAO. The agency was established as the General Accounting Office in 1921 under the Budget and Accounting Act which was passed by Congress. This act requires investigation into receipt, disbursement or use of public or federal funds when requested. The agency will then make recommendations to both the Congress and the President of the United States which are designed to improve the expenditure of federal dollars.

In 2004, the name of the agency was changed to the Government Accountability Office under the GAO Human Capital Reform Act. The new name better reflected the mission of the agency.

Many refer to the GAO as the taxpayer’s best friend. It is also known as the Congressional Watchdog. The agency gets these nicknames because it frequently audits and investigates how our federal funds are used and often uncovers inefficiency and waste in government programs.

The GAO prepares and distributes reports on all audits and investigations. These reports are distributed to members of Congress, the President and to the agency or organization which is the subject of the report like Chandler, Mathis, and Zivley.

Citizens can find copies of most GAO reports on the GAO website. The topics of these reports include Financial Management, Retirement Issues, Homeland Security, and Defense.

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What Is The Federal Crime Insurance Program And Does It Still Exist?

The Federal Crime Insurance Program was a program that was created in 1970 by Title VI of the Housing and Urban Development Act, commonly known as HUD. This program was created in order to allow home and business owners the ability to purchase insurance for damages from crimes such as burglary, theft, robbery, and other similar crimes.

The reason for its’ creation was that in certain states with high crime rates, private crime insurance policies were either not available, or were so expensive that most people and businesses were unable to afford them.

The big problem was that most homeowners’ and business insurance packages offered no protection for assets that were taken, or damages inflicted to property, that occurred as the result of a crime. This left many businesses and homeowners’ unable to have any way of recovery after they became the victims of these types of crimes.

Does The Program Still Exist?

The Federal Crime Insurance Program was terminated on September 30, 1982 because it was costing the federal government millions of dollars in insurance losses. From September 30, 1980 to September 30, 1981, the program cost the government $33.7 million dollars.

As you can imagine, this was a program that was simply unfeasible to be maintained as it was resulting in far too high of a cost, and many individual states had begun offering programs and incentives that helped to protect homeowners’ and businesses from damages resulting from crimes.

The main states that were still benefiting from The Federal Crime Insurance Program at the time of its’ closure were New York, Pennsylvania, and Florida who made up 71% of the total policies issued at the time.

For businesses and homeowners’ who wanted to participate in the program, the last day to apply for it was September 30, 1982.

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Understanding the National Flood Insurance Act of 1968

Extensive loss of livelihoods, property and even life led to the creation of the National Flood Insurance Act of 1968. The legislation has received much recent attention due to the extensive damage caused by flooding in Florida and Louisiana as it did in the violent series of floods in the aftermath of Hurricane Betsy in 1965.

According to the foreword in the US Code Title 42 Chapter 50: National Flood Insurance, the US congress found that the dangers and hazards of sporadic flooding was creating a personal and economic strain on many parts of the US. It was also mentioned that the physical preventative measures, such as dams and embankments, may not always be sufficient to hold back the flood waters and avoid damage.

For these reasons the Federal Government has decided to participate in the National Flood Insurance Program that was hitherto being addressed on the private sector alone. The US Code also mentions some other reasons that would make it “uneconomic” to stay out of the flood insurance program within reasonable terms and conditions.

This piece of legislation in 1968 was the first-time flood insurance was made available on such a massive scale almost available to everyone. Soon after the Flood Disaster Protection Act of 1973 made it mandatory for all people living in Special Flood Hazard Areas to purchase flood insurance to avoid against personal injury lawsuits.

Several important acts followed the National Flood Insurance Act of 1968, besides the Flood Disaster Protection Act of 1973. The most important is the Homeowner Flood Insurance Affordability Act of 2014. The law was meant to ensure that flood insurance premiums were precisely reflecting the risk of flood damage. The result was an increase in premiums that increased the debt of the National Flood Insurance Program.

This act is one of the first times that the federal government became involved with the insurance industry which is usually left for the state government to regulate and monitor.

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What is the McCarran – Ferguson Act?

The McCarran Ferguson Act is a law that makes the insurance industry exempt from most federal regulations including some (but not all ) of the antitrust laws. The Act was passed in 1945 after the Supreme Court ruled that the federal government was permitted to regulate insurance companies under the Commerce Clause of the Constitution. This ruling came as a part of the United States vs South-Eastern Underwriters’ Association case.

Senators Pat McCarran and Homer Ferguson sponsored the act, which provides that ‘Acts of Congress’ which are not expressly aimed at the regulation of the insurance industry will not over-rule laws or regulations that are intended to regulate the business of insurance.

The McCarran-Ferguson act still applies today, and it remains an important one. Indeed, one of the recent proposals for healthcare reform made by the Republicans may require the McCarran-Ferguson Act to be modified. In February 2010, the House of Representatives voted in favour of repealing the Act in terms of how it applies to health insurance, but other types of insurance are still covered.

The act protects certain state laws regarding insurance and allows each state to regulate the insurance industry, including establishing their own licensing requirements for insurance. It also exempts insurance companies from federal anti-trust legislation, at least in part, and protects the insurance industry from a federal take-over. It is widely felt that insurance is one of the most regulated industries in the USA, and insurance companies were concerned about the possibility of even more regulation from the federal government, on top of what the individual states were already doing. State insurance regulators were concerned about the outcome of the South Eastern Underwriters’ Association case, and while Attorney General Biddle denied that the government had any intent of increasing regulation, the McCarran-Ferguson Act of 1945 helped to offset those concerns.

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