Tag Archives: Valentine’s Day

Warming Up Your Valentine’s Day With Insurance

Bitter cold and snow may be in the air for some this Valentine’s weekend, but there’s no better way to stay warm than by checking out these Valentine-themed messages from around the risk and insurance community.

First up, the Insurance Information Institute (I.I.I.) reminds us that while there is nothing more romantic than a marriage proposal on Valentine’s Day, getting adequate insurance for that ring will ensure you are financially protected.

Next, did you know that every year, thousands of Americans lose billions of dollars by falling victim to romance scams? The Financial Services Roundtable (FSR) warns that nearly every demographic is at risk, but the people who are most susceptible are the elderly and women over 40 who are divorced, widowed or disabled.

Among the most common romance scams are malicious actors (scammers) who create fake profiles on dating websites and establish relationships with other site members in order to scam them out of money.

Check out this story of the Emoji prince who thinks he’s found true love online, but soon becomes a victim of a romance scam narrated by FSR’s director of fraud risk, Roxane Schneider.

Finally, if you’re looking to heat up your romance…or your house…by lighting candles this weekend, the National Fire Protection Association (NFPA) has some timely  candle fire safety tips to consider.

From 2009-2013, U.S. fire departments responded to an estimated 9,300 home structure fires that were started by candles, causing 86 deaths, 827 injuries and $374 million in direct property damage.

On average, 25 home candle fires were reported per day over the five-year period, according to the NFPA.

The I.I.I.’s Valentine’s Pinterest Board has additional tips to ensure your loved ones and their valuables are financially protected.

Matters of the Heart

Just in time for Valentine’s Day Jim Lynch brings us a heartfelt tale  of love and  insurance:

Last year I wrangled a review copy of Love Insurance, a century-old novel by Earl Derr Biggers, whose better known works created Charlie Chan in a spectacularly unsuccessful attempt to sweep away anti-Chinese stereotypes. The book was re-released by London’s Hesperus Press.

2015.02.03 PHOTO Love insurance

The story: A member of the British peerage buys a Lloyd’s policy that will pay him £75,000 if his impending marriage falls through. To protect his investment, the underwriter sends an earnest delegate to monitor the engagement. Earnest delegate falls in love with fiancée. They end up together despite several plot twists, most not memorable to me six weeks after finishing the book. So unfortunately I cannot recommend the work.

I do remember the insurance policy: £7,500 for a £75,000 limit. The cash-strapped lord can’t afford more cover — he’s marrying into an American fortune, a fact that addresses adverse selection.

Anyhow, as you can see above the policy is priced at 10 percent rate on line. Back then, the load for expenses and profit was a factor like 100/80ths or 100/75ths. Stripping that from the rate on line implies the underwriter and the lord implicitly agreed the probability the policy would pay was between 7.5 percent  and 8 percent.

When you’re an actuary, you think like that.

These days wedding insurance covers calamities from the event, not of the heart, as the linked I.I.I. article and video explain.