State insurance regulators place restrictive guidelines on property and casualty insurers. These restrictions, in turn, help to keep them financially sound. For example, at year end 2007, 65.2% of the industry’s total invested assets of approximately 1.3 trillion USD was invested in long term bonds (A.M. Best), and 7.5% was in cash and short-term investments. Conversly, only 14.5% was held in common and preferred stock.
In today’s volatile environment, it is also important to be aware of the fact that these insurers do not have any exposure to mortgage-linked securities in their portfolios.
The top companies by asset distribution are Berkshire Hathaway, State Farm, and Travelers Group. The entire United States Property and Casualty industry had 1.55 trillion USD in admitted assets at the end of the 2007 calendar year.
November 26, 2008
Property and Casualty Insurers are Kept Safe by Conservative Investment
November 5, 2008
More Questions on Production
What is Negative Film or Video Tape and Faulty Stock?
This provides coverage for the damage and/or destruction of raw film stock, exposed film or videotape. It also covers Faulty Stock, Faulty Cameras and Lenses. The MAXIMUM available coverage is generally 25% of the declared budget.
What is Props, Sets, and Wardrobe Coverage?
This one is pretty obvious. It covers your props, sets, and wardrobe in the event of damage from a covered peril. In general, your limit will be dictated by the prop house you are renting from. Owned items should be covered for replacement cost.
What is Miscellaneous Equipment?
This covers all of the camera, sound and lighting equipment that you rent. The rental house will almost always require that you provide them with a certificate naming them as a Loss Payee and Additional Insured. This is a form of Inland Marine Insurance.
