CEU.com Blog

The state of Florida now requires every licensed general lines agent and customer service representative to complete a one-hour continuing education course on premium discounts for hurricane mitigation options. To meet the state’s requirement, CEU.com developed a new course titled “Hurricane Premium Discounts and Mitigation Options.”

This course provides a history of hurricanes in Florida, from Hurricane Andrew in 1992 through the 2004 and 2005 hurricane seasons. The course also examines how Florida’s building codes are structured. The course discusses the available options for homeowners to strengthen their homes against hurricanes and shows how these options qualify for premium discounts on homeowners’ property insurance policies. In addition, the course covers the Florida Comprehensive Hurricane Damage Mitigation program and the My Safe Florida Home program. Finally, learners will review the current wind mitigation form that is required to obtain premium discounts on insurance policies.  

Course participants will gain an understanding of the following:

* Hurricanes in Florida

* Florida building codes and how they work

* Options for homeowners to strengthen their homes against hurricanes and how these options qualify for premium discounts on the homeowners’ property insurance policies

* The Florida Comprehensive Hurricane Damage Mitigation program and the My Safe Florida Home program

* The wind mitigation form required to obtain premium discounts on insurance policies

The Hurricane Premium Discounts and Mitigation Options course is approved to meet Florida’s one-hour continuing education requirement. Register online at www.ceu.com.

All it takes is a few inches of water to cause devastating financial loss. Because flooding is not covered by standard homeowners insurance, Congress created the National Flood Insurance Program (NFIP) in 1968 to help provide a means for property owners to protect themselves from financial loss due to flooding. According to the NFIP, over the past 10 years, the average flood claim has totaled more than $33,000. Homes and businesses that are located in high-risk flood areas and have mortgages from federally regulated or insured lenders are required to have flood insurance. 

Floods are the most common natural disaster in the United States. Contrary to popular belief, floods are not limited to coastal areas; they happen almost anywhere. Nearly one-quarter of all the NFIP’s paid insurance claims come from low to moderate flood-risk areas, according to the NFIP Web site.

Flood insurance can be purchased only through an insurance agent; therefore, insurance professionals should have technical and practical knowledge and skills so they can confidently and accurately handle all aspects of providing flood insurance coverage. An excellent resource is the Flood Insurance course offered by CEU.com. This course begins with an introduction to the Federal Emergency Management Agency (FEMA) and the NFIP. It also looks at the broad concept of flood insurance and reviews the general rules that apply to the NFIP by examining various products that are available and basic principles that apply to this type of coverage. Topics include the process of completing an application for flood insurance, how the cost of the insurance is determined, and how to find out when a preferred risk policy is available or when a provisional rating is appropriate. 

The course reviews coverage for condominiums and special certification requirements. The flood insurance policy is examined in more detail by exploring how some standard insurance practices-such as endorsements, renewals, cancellations, and claims-may be handled differently for flood policies. Finally, the course examines current FEMA manual revisions to ensure that participants are up to date on the latest changes. A general review of all course material concludes the Flood Insurance course.

Because the NFIP is part of FEMA, insurance professionals involved in writing, selling, or providing flood coverage must comply with Department of Homeland Security and FEMA requirements. The NFIP has created guidelines and tools to assist insurers and agents in providing the public with broader access to flood insurance.

To register for the Flood Insurance course, visit www.ceu.com.

Given the rising cost of commodities and entertainers this year, true loves may want to reconsider doling out the dough for “The Twelve Days of Christmas” song items. According to a PNC Wealth Management annual survey based on gifts in the holiday classic, “The Twelve Days of Christmas,”  the 2010 PNC Christmas Price Index^® jumped a staggering 9.2 percent.

9.2 percent is based on the tally for non purists, who ignore the repetition, coming to a total price of $23,439. The annual tally for purists who count every repetition – 364 items – is $96,824, up 10.8 percent from last year.

“This year’s jump in the PNC CPI can be attributed to rising gold commodity prices, represented by the Five Gold Rings which went up by 30 percent, in addition to higher costs for wages and benefits impacting some entertainers,” said James Dunigan, managing executive of investments for PNC Wealth Management. ( The PNC Financial Services Group, Inc, 2010)

According to an article on AnnuityNewsJournal.com, Annuities, Life Insurance and Investing can help your true loves offset the rising prices. “In today’s world, of course, French hens and lords-a-dancing are not in demand, but some of the things that matter to all of us, such as food, clothing, utility costs, and fuel for our vehicles certainly has. To keep up with these rising costs, it is important to create money growing funds such as annuities, life insurance policies, and investment accounts. Equally important are tax reduction and avoidance strategies.” (Dristol, 2010)

The most expensive gift on the list this year, costing $6,294.03, was to hire nine ladies dancing, up 15 percent from last year. The cheapest gift was one partridge at $12, a 20 percent increase.

PNC has conducted this survey for the past 27 years and it has traditionally mirrored the national Consumer Price Index. 

The PNC Financial Services Group, Inc. (2010, November 29). The 2010 PNC Christmas Price Index. Retrieved December 2010, from www.pncchristmaspriceindex.com: http://www.pncchristmaspriceindex.com/CPI/2010/pressRelease.html

Dristol, Z. (2010, December 7). What does the “12 Days of Christmas” have to do with Annuities, Life Insurance, Investing and Taxes. Retrieved 2010, from www.annuitynewsjournal.com: http://www.annuitynewsjournal.com/what-does-the-12-days-of-christmas-have-to-do-with-annuities-life-insurance-investing-and-taxes/

Hours before the national flood insurance program was about to expire, President Obama signed a bill into law to extend the program for yet another year. The future of this program is uncertain and has been in limbo for some time.

Coverage lapsed earlier this year when heavy rains hit places like Oklahoma City causing angst for homeowners, holding up payment of claims and affecting home sales in flood zones where mortgage companies require flood insurance. This is one of the reasons Oklahoma Insurance Commissioner, Kim Holland pressed for a more permanent solution, especially because flood damage is not covered under a standard homeowner’s policy.

“With severe flooding this year, I am encouraging Oklahomans to carefully evaluate their risks and consider purchasing flood insurance,” Holland said. “It is important to make sure Oklahomans are protected…every Oklahoman should be aware that a flood can happen almost anywhere.” (Staff Reports, 2010)

The National Flood Insurance Program is administered by the Federal Emergency Management Agency, which offers flood insurance purchased through property and casualty insurance agents.

The Flood Insurance extension will expire September 30, 2011.

Learn more about Flood Insurance; take CEU.com’s online Flood Insurance Course.

Graham, B. (2010, October 3). President extends National Flood Insurance Program for one year. Retrieved October 2010, from IFAwebnews.com: http://ifawebnews.com/2010/10/03/president-extends-national-flood-insurance-program-for-one-year/

Staff Reports. (2010, October 6). Flood insurance program extended. Retrieved October 2010, from NewsOK: http://newsok.com/flood-insurance-program-extended/article/3501848