Can someone explain the Insurance industries position on y2k?

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My insurance company cares if I smoke, jump out of airplanes, ski, or even if I move across town. Why in the world would any insurance company cover air flights, ships cargos or underwrite another insurance company during the roll over?

I cannot believe that any airplane,freighter or rail road shipment would leave home port without insurance. Even if these transportation facilities were nationalized the owner of the freight is still at risk in the event of a loss.

I once worked as an insurance investigator for a short time. Everything is insured. Rat infested tramp steaers off the coast of Upfock Tasmania with a load of rice is insured and the only reason that the shipper used that rusty old tramp steamer is because of the insurance.

Insurance companies spread the risk by selling each other pieces of the policy. Just like a bookie that lays off (spreads) his bets with other bookies if he thinks there will be too much risk, such as if there is a good long shot in the race or a large volume of bets that would ruin a bookie if he had to eat the loss on his own.

I hope there is someone with a insurance backround among our group who could explain to me why the insurance companies are not deficating large square bricks right now. Without insurance, nothing moves.

Bill in South Carolina

-- Bill Solorzano (notaclue@webtv.net), September 10, 1999

Answers

Bill, would the shippers have a clause in their policies excluding coverage for computer-caused problems? My homeowners insurance company inserted that clause in my policy this year.

-- Margaret J (janssm@aol.com), September 10, 1999.

My homeowners insurance company inserted that clause in my policy this year.

This year? Oh, my....

-- Lane Core Jr. (elcore@sgi.net), September 10, 1999.


Hi Margaret:

That is precisely my point. If the shipper is not covered, why would he ship anything? If he did risk shipping without insurance he would be entitled to charge enourmous prices for his goods and get in trouble for price gouging.

Bill in South Carolina

-- Bill Solorzano (notaclue@webtv.net), September 10, 1999.


Here's how my uncle explained it to me last Thanksgiving. He owns a General Insurance agency, of which there are less than 100 in the US. They handle corporate property & casualty policies, the really big stuff.

They have 'ridered' (amended) EVERY ONE of their policies to deny coverage for claims resulting from the failure of computer software and computing devices.

You'll likely find these riders on your own auto & home policies.

In short, the insurance co's ain't gonna pay for y2k. Why? Because they have long experience with computers, and understand the First Law of Computing:

Computers are stupid and they don't care.

Get it?

Brady

-- Brady (brady@docuscribe.com), September 10, 1999.


From: Y2K, ` la Carte by Dancr near Monterey, California

I've asked this question before, but I didn't understand the answer. What if my house burns down because I used an open flame after the power company's computers act up? Will they be able to say "That's a y2K problem, so sorry, but you're not covered."?

-- Dancr (addy.available@my.webpage), September 10, 1999.



Or could they claim Y2K was an act of god? I've always had a rather cynical attitude toward the so-called "Act of God" clause.

-- Dancr (addy.available@my.webpage), September 10, 1999.

Another thought... if the government claims that everything did get fixed in time but that all of the problems are due to those sneeky Chinese bugs, wouldn't my burned down home be considered a casualty of war?

-- Dancr (addy.available@my.webpage), September 10, 1999.

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