Style Over Substance? Not when it comes to insurance

Can style trump substance? Not when it comes to the business of insurance, according to new regulations issued by the China Insurance Regulatory Commission (CIRC).

The Financial Times reports that China’s insurance regulator has banned “exotic” insurance products as part of a broader push to restrict the sale of non-traditional products.

The new regulations cover products “where the insured event will not result in any loss to the customer” and “products with no real content, where the purpose of the product is for creating marketing hype.”

Smog insurance, overtime insurance that pays out if the insured is at the office after 9pm, and so-called gourmets’ insurance that provides cover against indigestion are among the non-traditional products now banned by China’s regulator.

Insurers have sometimes used these exotic products as promotional tools, with attention-grabbing advertisements that aim to go viral, the FT reports.

The new regulations come one month after the CIRC cracked down on insurers that sell short term investments called universal insurance products, proceeds of which were used to fund acquisitions.

CIRC chairman Liu Shiyu warned insurers not to become “barbarians” and “robbers” by aggressively acquiring companies in leveraged buyouts.

Insurance Information Institute’s daily members bulletin has more stories like these. Email daily@iii.org for info.

Distracted Driving? There’s An App To Prevent That

Is Apple liable over a fatal car crash involving FaceTime? That’s the question being asked in a lawsuit filed against Apple by the family of a five-year-old girl killed in a Texas car crash.

Moriah Modisette was killed and her father seriously injured when driver Garrett Willhelm plowed into their car at 65 mph on a Texas highway on Christmas Eve 2014.

As reported by Fortune, Willhelm was chatting on FaceTime at the time of the crash, and the app was still running as rescue workers tried to extricate the injured passengers from the mangled car.

In the lawsuit, the family claims that Apple had failed to install a “lock-out” feature on FaceTime that would prevent drivers from using the app while on the road.

The lawsuit underscores why liability insurance and product liability insurance are important for businesses.

After years of decline in road fatalities, numbers were up 8 percent in 2015. Many believe the rise is due at least in part to distracted driving.

In 2014, 3,179 people were killed in distraction-affected crashes, and 431,000 people injured, according to National Highway Traffic Safety Administration data.

But apps are not all bad. Several app developers are working to create ways to help make your cellphone a tool in the fight against distracted driving, rather than a cause of it.

Check out DMV.org for distracted driving apps that incentivize safe driving by keeping your attention off your phone and on the road.

USA Today reviewed other apps aimed at preventing distracted driving here.