#it was renewed then they cancelled it two secs later

[simonconsultancypage]

Coronavirus and D&O Insurance: The Latest Interim Update

In early March, when I first wrote about the possibility of coronavirus-related D&O claims, there were then a total of 43 confirmed cases of COVID-19 in the U.S. and six deaths. In early April, when I published my first interim update to my initial post, the number of confirmed COVID-19 cases in the U.S. had grown to 267,436 and the number of deaths was over 10,400. Now, a month later, the number of confirmed cases in the U.S. has exceeded 1.2 million and the number of deaths is over 78,000. By now it is apparent that the coronavirus-outbreak represents the most significant public health crisis in the U.S. in more than a century. The disease has also had a massive impact on the economy, both within the U.S. and globally, in ways that are only now starting to be fully appreciated.

  With so many households and businesses disrupted, it is hardly a surprise that disputes have arisen. Some of these disputes have translated into lawsuits, including even lawsuits involving corporate directors and officers. Just as it will likely be some time before we fully understand the pandemic’s economic impact, it likely will be some time before the full litigation burden can be fully assessed as well.  My latest interim update follows.

  Claims Trends

For now at least, the numbers reflecting the level of coronavirus-related D&O claims activity are relatively modest. By my count, there have been a total of five pandemic-related securities class action lawsuit, involving Norwegian Cruise Lines (here); Inovio (here); Zoom (here); Phoenix Tree Holdings Ltd. (here); and SCWorx (here). Given that we are now more than two months into the unfolding pandemic, the number of securities lawsuits so far seems relatively modest.  Most of the cases have to do with statements or actions the companies made or took (or failed to take or make) in response to the coronavirus outbreak itself.

  In addition to the securities class action lawsuits, there has also been one coronavirus-related shareholder derivative lawsuits, against Inovio (here), and based on the same allegations as the securities suit against the company. There has also been one coronavirus-outbreak related SEC enforcement action, against Praxsyn Corporation, for the company’s statements about arrangements it claimed it had made to source and sell surgical masks (as discussed here).

  While the number of D&O claims so far is relatively modest, it seems likely that there will be more claims in the weeks and months ahead, as businesses struggle to re-open and to deal with the impact of the coronavirus closures on revenues, operations, and finances. The modest number of suits so far may be due to the fact that prior to the outbreak very few companies had occasion to made any statements about the what impact a pandemic might have on business operations, providing few openings for plaintiffs’ lawyers to try to portray prior statements as misrepresentations.

  But as the economy starts to open back up, companies will be making many statements about their operating readiness and capabilities; about their supply chain; about their customer traffic or order flow; about their work place, labor force and business operations; and about their cash, their reserves, the collectability of receivables, and other financial attributes. Companies that stumble after optimistic statements may likely attract the unwanted attention of plaintiffs’ lawyers.

  The way that companies navigate the reopening process could also open the door for potential mismanagement claims, as well as claims against boards for alleged breaches of the duty of care or breach of the duty of oversight.

  A number of companies will fail or go bankrupt. There have already been a number of high-profile bankruptcies, including most notably in the last week J. Crew and Niemen Marcus. Many smaller businesses have also filed for bankruptcy, particularly in the hospitality and leisure sectors. Other sectors currently under stress likely will see a number of bankruptcies, including the oil and gas sector. Other companies that before the pandemic took on significant amounts of debt to pursue expansion strategies or to acquire competitors may also be forced into bankruptcy. One side-effect of this anticipated surge in bankruptcies likely will be a wave of D&O claims filed by creditors or bankruptcy trustees.

  Even beyond the narrow confines of the D&O claims arena, there has already been a significant rise in litigation activity. For example, disgruntled students are suing colleges and universities for the return of tuition for classes that were cancelled or moved online, as well for amounts paid for room and board. Employees who contracted the disease (or their survivors) are suing employees for their injuries or harm (as discussed here). And as I discussed in a recent post (here), as employees return to work, claims and disputes involving discrimination may well emerge, along with wage and hour concerns and other workplace issues. As noted in a May 8, 2020 Marketwatch article (here), the courts may be about to be flooded with coronavirus claims, in a way that may be unprecedented.

    Underwriting Issues

None of these developments are lost on D&O insurance underwriters. The underwriters and their managers are all too aware of the baleful possibilities these circumstances present. It is important to note in that regard that well before the coronavirus outbreak emerged the D&O insurance marketplace was already disrupted. Even before the outbreak, policyholders were facing the prospect of significantly increased cost for their D&O insurance. Now, with the pandemic added on top, policyholders are facing a D&O insurance market that is in many ways in disarray. There are a number of specific ways D&O insurance policyholders will experience the impact of the coronavirus.

  Increased Underwriting: As I noted in my prior updated, many insurers are now requiring that many renewal applicants must complete a coronavirus-related questionnaire. In order to provide terms, many insurers are requiring insureds to provide detailed information about the impact of stay-at-home orders on business operations; the impact of the pandemic itself on work force and supply chain issues; the impact of closures on cash flows, cash reserves, liquidity, and revenue streams, as well as current and long-term debt. The entire process has become more time-consuming, more labor-intensive, and in a lot of ways a lot more unpredictable. The coronavirus-related information is also having a direct impact on the terms and conditions that are being offered.

  Lack of Process Flexibility: Many front-line underwriters have had much of their discretion taken away and layers of management approval are increasingly common. These circumstances have contributed to the more time-consuming nature of the renewal process. Front-line underwriters also have strict guidelines about certain kinds of risks, about companies with certain characteristics, as well as about what terms and conditions may be offered. Even though the process concerns and time requirements naturally lead to extension requests, at least some underwriters are unwilling to provide extensions that in the past would have been routine, and even if the need for an extension is the direct result of the operating disruption caused by stay-at-home orders.

  Pricing: As noted above, D&O insurance buyers were already facing significant pricing increases even before the pandemic arose. Now, buyers continue to face increases, but in many cases even higher than was the case before. In some cases, the increases proposed have been eye-watering – creating a very difficult dilemma for insurance buyers, as they face dramatically increased insurance cost at the same time as their revenues have dropped off of a cliff. For some buyers, the increased costs present them with hard choices about possibly reducing the amount of insurance they buy, at a time when they know well that the risk could be greater than ever.

  Terms and Conditions: In many instances, the terms and conditions offered may involve certain significant reductions in coverage. At least some insurers for some account are providing quotes with COVID-19 or infectious disease exclusions. (The addition of these types of exclusions is even more prevalent in the E&O sector.) Many quotes also include comprehensive bankruptcy exclusions or creditor claims exclusions. For some underwriters, the inclusion of a bankruptcy or creditor claim exclusion is the default response for applicants who are slow in providing coronavirus-related underwriting information, even if the applicant is not a bankruptcy risk.

  Capacity: Many insurers are actively managing their capacity and seeking to reduce the limits exposed. Insurers that may have offered, say, a $5 million limit in the past may now offer only $2 million or even $1 million (particularly for accounts in certain sectors that are perceived as high-risk in the wake of the pandemic). Few competitors are willing to step in and fill in the reduced layers, meaning that filling out a buyer’s program can become very difficult or in some cases simply not possible.

  Other Issues: Few insurers are willing to participate in increased excess limits. Because of the perceived economy-wide insolvency risks, few insurers are willing to offer terms for new or increased Excess Side A DIC coverage. Few insurers are looking to write new business – first time buyers may find that they have few if any options.

  Discussion

I have been involved in D&O insurance one way or the other for 38 years. The current D&O insurance marketplace is the most disrupted and unpredictable I have ever seen. Just trying to get a handle on where we are and what the current situation is difficult, as all of the pieces on the board continue to move and shift. Trying to project what may be ahead is even more difficult, because so much depends on how long the current health crisis lasts, on now the re-opening process unfolds, and how soon wheels of commerce get rolling again.

  While there is a great deal of uncertainty, certain things are clear.  For starters, the coronavirus outbreak already is a watershed event for the insurance industry. In his comments in his company’s quarterly earnings release this past week, AIG CEO Brian Duperrault said that ““We believe COVID-19 will be the single largest CAT (catastrophe) loss the industry has ever seen.” This is a dramatic statement but I think Mr. Duperrault is correct. It may take a long time to play out, but there is no doubt that the COVID-19 pandemic represents a massive event for the global insurance industry.

  What this may mean in the months ahead remains to be seen. However, I think I can say for certainty that we are going to be in a so-called hard market for some time to come, likely well into 2021.

  What that will mean for policyholders and D&O insurance buyers is that for some time to come, there are not going to be any “routine” D&O insurance placements. Every transaction is going to be drawn out and complicated.

  The insurance renewal process itself will be far different than buyers have experienced in the past. The process will be much more time-consuming and labor intensive in the past. Buyers will need to be prepared to spend a lot more time and effort on their D&O insurance transaction. One specific thing buyers can do to position themselves is to proactively anticipate the questions about the impact of the coronavirus and work-from-home orders on business operations; supply chain, work place, and labor force issues; and cash and liquidity, ability to service debt and accounts payable, and re-opening plans and expectations.

  Buyers will also have to adjust their expectations about what their insurance will cost. Expectations that were formed during past years of declining prices and active competition must be set aside, as the reality of the current disrupted marketplace leads to significantly increased prices, reduced capacity, and possibly even unattractive terms and conditions.

  Unfortunately, all of these things are happening at a time when the D&O insurance may be more important than ever. That is of course not a coincidence; the D&O insurance marketplace is disrupted precisely because the D&O insurers fully understand that the coming months could well be fraught with peril for their insureds.

Coronavirus and D&O Insurance: The Latest Interim Update published first on http://simonconsultancypage.tumblr.com/

[johnvonstach]

A Useful Overview Of Necessary Criteria In Vsp North America

If you’re reading this article, you are likely curious about the possibility of utilizing solar energy; however, you are hesitant to do so because you aren’t very knowledgeable about this type of energy. It is vital you know some information before you begin, so you can get the full benefits in a number of ways. Read on and educate yourself about solar energy.

The efficiency of your panels and the surface they cover will determine how much power you can generate. Calculate how many you need ahead of time. Buying larger, more efficient panels may be a wiser choice than buying a lot of smaller panels.

Photo-voltaic panels fall into one of two categories. The cheapest are poly-crystalline, but mono-crystalline are more efficient. Buy the best product for the amount of money you have available to spend.

You don’t have to go overboard when adding solar power set-ups. The first step is to replace outdoor lighting with solar options. These will charge during the day and then shine all night.

If you cannot afford a full-scale solar energy system, invest in small-scale appliances. There are two ways to go about it. You can find small-scale panels to prop on your window to recharge electronics. Camping equipment that is solar powered is also very helpful. Every little bit shaves a little off of your electric bill.

Just because you live in a colder climate doesn’t mean solar panels can’t work for you. You don’t need direct sunlight at a certain temperature for this to be a major player for your energy needs. A cold and sunny place can receive more sun that a hot but shady one.

Figure out if solar energy is a good choice for your home. There are many reasons you may choose to go this route to power your home. Solar energy can be a must-have for those who live in remote areas where there is no available electrical grid to hook into. When you can afford a higher installation bill, this is worth investigating.

When looking for a solar panel system, try to find discounts. Seeing how much it costs to get solar power installed can be quite daunting, but you can usually find some help with the costs. Look into grants and rebates available from your state and federal government that reward those who use renewable energy. These forms of assistance can greatly reduce your costs. You may even be able to deduct some of your expenses on your taxes.

If you consider the tips and advice you’ve read in this article, you will have a much easier time formulating a plan for solar energy in your home or business. Hopefully, you now feel more confident about deciding if renewable solar energy is right for you. Do more research on renewable energies and solar panels before you get started.

A Basic Analysis Of Easy Sault Ste Marie Tactics

PIN-31531-0029 (LT) Description of Land: Roll No.: 5761-040-026-024-00. 181 Andrew Street. PT LT 41-42 PL 7999 ST. MARY’S AS IN T418256; S/T EXECUTION 02-0000387, IF ENFORCEABLE; S/T EXECUTION 03-0000196, IF ENFORCEABLE; SAULT STE. MARIE. PIN-31576-0291 (LT) Description of Land: Roll No.: 5761-050-035-022-05. 0000 Unknown. PCL 12251 SEC AWS; PT BLK 22 KORAH PT 1, 2 & 3 1R9026; SUBJECT TO AN EASEMENT IN GROSS OVER PART 1, 1R12362 AS IN AL130090; CITY OF SAULT STE. MARIE. PIN-31567-0039 (LT) This tax sale is subject to cancellation in accordance with the provisions of the Municipal Act’s tax sale provisions. Tenders must be submitted in the prescribed form and must be accompanied by a deposit in the form of a money order or of a bank draft or cheque certified by a bank or trust corporation payable to the municipality and representing at least 20 per cent of the tender amount. The City is not obliged to provide a survey or reference plan for any parcel of land being sold under tax sale. The municipality makes no representation regarding the title or any other matters relating to the land to be sold, including but not limited to the potential existence of environmental contamination, estates and interests of the federal or provincial governments or their agencies, easements and restrictive covenants, and interests acquired by adverse possession. Responsibility for ascertaining these matters rests with the potential purchaser. This sale is governed by the Municipal Act, 2001 and the Municipal Tax Sales Rules made under that Act. The successful purchaser will be required to pay the amount tendered plus accumulated taxes, penalties and interest, HST if applicable, and the relevant land transfer tax.

VPOWERENERGY|130 Hood St, Sault Ste. Marie, ON P6C 6E5, Canada|http://vpowerenergy.com|+1 705-759-3899|John Stach VS Products Inc

Some Emerging Options For Choosing Factors In Solar Power Sault Ste Marie

Solar energy is becoming extremely popular for both homeowners and business owners. Ask yourself why you haven’t jumped on the solar energy bandwagon. If you aren’t sure how to use solar energy the correct way, keep reading. Keep reading to find out more solar energy information.

Consider whether solar energy is right for your home. A few factors need to be considered. If your area is remote, you may want to invest in solar energy. It is also a good choice if you’re able to pay upfront in order to realize savings later.

If you are considering purchasing a solar energy system, avoid high pressure salesmen. Use as much time as possible to gain information about solar energy vendors. Being pressured to make a decision can result in you making a bad decision, which will result in you losing money.

Always do the math and budgeting before taking the plunge into solar energy. Installing solar panels may not be a financially sound investment for you. If you rush into purchasing a solar power system, you may be unpleasantly surprised.

The best time to look consider energy efficient options is when you first build a house, and solar energy is no exception to this rule. Solar power is one of the most universal green energy sources, as it can be utilized effectively in almost any environment. When you haven’t checked this out before, now is the best time.

A solar energy attic fan can be a great idea for a minor switch. These fans have temperature sensors which can send the fans into operation at certain temperatures. The can get excess heat out of your home, which should lower your energy costs. As a bonus, being solar powered, it will not add to your power bill.

Not all large solar panels are effective. Quality solar panels are identified by many factors, including wattage, brand, materials used, warranty and more. Before making this purchase, every factor needs to be thought through.

Understand the limitations of solar water heating. While they do produce some energy savings, even the most efficient only use one third less energy than convectional water heaters. Also, don’t fall prey to the notion that you will have cold water first thing in the morning, before the sun rises. Water heated by the sun ought to remain hot for about 24 hours.

The installation of your solar panels is just like any home improvement project. Research various contractors and vendors. Compare prices and ask for references. Read any contract carefully, and if you do not understand something, ask for clarification or have a legal professional look over the document.

Leasing a complete solar energy system may be more affordable than purchasing solar panels. This is a more inexpensive route to go than actually purchasing the entire system, and will give you a good idea if it is something you want for your home permanently.

Solar energy has many advantages over the other forms of energy. Given your new understanding of the facts, you are better equipped to take advantage of solar energy. Put what you have learned to use and start saving money with solar power today.

To learn more about vpowerenergy generator solar system Sault Ste Marie visit https://www.johnvonstach.com/vpowerenergy/

The post A Useful Overview Of Necessary Criteria In Vsp North America appeared first on VSP North America.

from VSP North America https://www.johnvonstach.com/vs-products-inc/a-useful-overview-of-necessary-criteria-in-vsp-north-america/

[touristguidebuzz]

Are the 747 and A380 Superjumbo Jets on Their Way to the Graveyard?

If you’ve ever flown on a superjumbo airplane, you know it’s a special trip. There’s something about the size, the pure number of passengers, even those stairs inside the cabin leading up to the second deck that makes travel on a 747 or an A380 a flight to remember.

But times have changed, and with improvements in jet engine and polycarbonate technology and an ever increasing focus on fuel efficiency, the days of the four-engine plane may be numbered. Two-engine aircraft such as the Boeing 777 and the Airbus A350 can now carry similar passenger loads for nearly the same distance while burning much less fuel, making the larger superjumbo jets a prime target for cost cutting.

So with 747 fleets being retired more quickly than ever before and the A380 potentially on the Airbus chopping block, just how much longer will we have to fly on one of these mammoth aircraft?

747 — The Queen of the Skies

Aircraft types can be difficult to identify by eye, but anyone can recognize the distinctive front “hump” of the Boeing 747 that was originally designed to be used as a first class lounge or for ease in converting the plane to a cargo version. The Queen of the Skies was the first widebody ever produced, and in many ways ushered in the golden age of flying.

Egged on by Pan Am, which was concerned about congestion from the increasing number of small aircraft, the 747 was developed by Boeing in the 1960s and flew its first commercial flight in 1970 with Pan Am taking delivery of the first plane. It remained the largest passenger airliner in service until the introduction of the A380 in 2007.

A 747 was used to carry the Space Shuttle from its landing place in California back to Florida for the next launch. Image courtesy of NASA.

The airplane quickly assumed an iconic status in the world of air travel, and while the 747 has been a difficult lift economically for Boeing from time to time, more than 1,500 have been built to date. The model has also served as Air Force One, the official plane of the President of the United States, for over 25 years since it replaced the 707 in 1990. The most recent commercial version of the plane — the 747-8 — can carry up to 467 passengers in a 3-cabin configuration.

Unfortunately, recent years have not been kind to the popularity of the 747 with airlines. Earlier this month, United announced it was speeding up its timetable for retiring its entire 747 fleet, and the planes will now be out of service by the end of 2017. Delta is the only other US airline still flying the jumbo jet, but it will also retire its planes by the end of this year, leaving only international carriers as purveyors of the plane. As of now, the largest remaining operators are British Airways, Korean Air, and Lufthansa, but even those three airlines combined have only around 100 copies of the aircraft in service.

A British Airways 747-400 in Johannesburg.

So what does the future hold for the 747? Boeing currently only produces six 747s a year, and in July 2016, the aerospace company noted the lack of demand for the plane in its quarterly Form-10Q filing with the SEC. It also stated that the 747 production line could be shut down as early as the third quarter of 2019. While some additional cargo planes have been ordered since that announcement which could extend the timeline by a couple of years, even those orders bring the total backlog to only 28 planes as of the end of 2016, with only 9 planes being of the passenger variety.

Without renewed interest from passenger airlines or a major uptick in cargo orders, it seems unlikely that production of the 747 will survive much beyond the end of the decade.

A380 — The world’s largest passenger jet

If the 747 goes the way of the dodo, Boeing can at least take comfort in the fact that the plane had a good long run. But the same cannot be said of the A380 if a similar fate befalls it.

As the only commercial aircraft with a second deck running the entire length of the aircraft, the A380 is roughly 30% larger in size than the 747. The original A380-800 variant, which despite some modifications over the years remains the only model to date, carries 525 passengers in a three-cabin configuration. Airbus originally also proposed a cargo version of the plane, but the A380F was cancelled before ever being built.

The living room of Etihad’s Residence on the A380.

Conceived in the 1990s as a challenger to the 747, Airbus’ timing on the A380 was never ideal. At a time when airlines were moving away from the hub-and-spoke system and towards more nonstop point-to-point flights and higher frequencies, the need for smaller aircraft was projected — correctly, as it turned out — to greatly exceed that of larger ones. Even so, seven years and at least $11 billion after launching the program, the first A380 officially entered service with Singapore Airlines in 2007.

Unfortunately for Airbus, since that launch only 319 copies of the plane have been ordered — less than 25% of the lifetime production of the 747 — and of those orders, more than one-third have come from a single carrier: Emirates. While the plane has operated well and gets excellent reviews from passengers for its ability to provide ultra-high end amenities and cabins such as Etihad’s Apartment, the costs of the jet have kept many customers away.

No US airline has ordered a single A380, so only international airlines operate the aircraft in the United States. Aside from Emirates with its 92 planes and more on order, Singapore Airlines and Lufthansa are the next largest operators with a significantly smaller 19 and 14 planes respectively. Last year Airbus announced two separate production cuts for the aircraft and will be officially reducing its manufacturing rate to just 12 planes a year by 2018.

An onboard shower for Apartment passengers on the A380.

Still, Airbus was finally able to break even on the A380 in 2015 and continues to maintain its commitment to the jet. It is relying heavily on Emirates’ interest in the plane, as the Middle Eastern carrier’s entire fleet now consists solely of A380s and Boeing 777s. Though Emirates is eager for a more efficient jet engine for the aircraft, it admits at this point it is simply hoping that Airbus keeps manufacturing the A380 for the foreseeable future.

So how much time is left to fly a superjumbo?

Before you get depressed, remember that the prediction business is a fools game, and unforeseen changes can drastically alter the future. This isn’t the first time someone has written about the oncoming demise of the superjumbo over the last few years, yet the planes continue to be built and continue to fly. Even if both airplanes were to cease production tomorrow, there remain almost 250 passenger 747s in the air and over 200 A380s in service.

Still, if you’ve never been on a 747 or an A380, doing it sooner rather than later might be wise. With aerospace technology improving by the day, it seems likely we’ll come to a point in the not-too-distant future where the experience of flying on a superjumbo jet is consigned to the dustbin of history.