Quebec
brokers and adjusters are reminded they must have all
CE hours in place by the end of March in order to renew
their license.
Call
1-800-404-2211 if you need hours.
Industry Briefs
2005 weather disasters were the most costly ever
Weather-related natural disasters led to billions of
dollars in financial damages so far in 2005, making
it the most costly year ever.
This information was revealed at the United Nation’s
recent conference on climate change.
Early estimates presented by the Munich Re Foundation,
part of one of the world’s top re-insurance companies,
put the economic losses at more than US$200 billion
with insured losses running at more than US$70 billion.
Up until this year, 2004 was the most costly year.
In this period, economic losses totaled around US$145
billion and the insured losses reached about US$45 billion.
The current figures can greatly be tracked back to
the record number of hurricanes and tropical storms
faced by the world in 2005.
The year was also marked by record-breaking events.
The highest ever rainfall in India was recorded in Mumbai
on July 26 when 944 millimeters of rain in 24 hours
poured down upon the city.
The first ever hurricane to approach Europe happened
in October when Hurricane Vince made landfall in Spain.
It was also the most eastern and northern hurricane
ever seen.
Hurricane Wilma, which formed in the Caribbean in
October, was the strongest hurricane ever, causing devastation
in Mexico's Cozumel and Yucatan. Economic losses have
been calculated at US$15 billion with insured losses
of US$10 billion.
Hurricane Katrina, the sixth strongest since records
began, has been the most costly weather-related disaster
ever, with economic losses totaling more than US$125
billion and most likely more than US$30 billion insured
losses.
National Bank increases Prime rate
The National Bank of Canada is increasing its prime
rate from 4.75 % to 5.00 %, effective as of December
7, 2005.
This was the third time the central bank has raised
rates. It also hiked its overnight lending rate in September
and again in October to keep a lid on inflationary pressures.
The latest inflation report showed the cost of living
rising at 2.6 per cent annually. But a recent Canadian
jobs report also revealed that the average wage rate
in this country had increased by 3.9 per cent in the
previous 12 months.
The Bank of Canada's next decision on interest rates
is scheduled for Jan. 24.
C.P.P. buys shopping malls
The Canada Pension Plan's investment managers say it
has acquired an 80 per cent stake in the Galeries de
la Capitale in Quebec City and Carrefour de L'Estrie
in Sherbrooke.
Osmington Inc., a private real estate company, and Westerkirk
Capital together will hold 20 per cent of the shopping
malls. The properties will be managed by Redcliff Realty
Management Inc., a subsidiary of Osmington.
The investment was made from funds not needed in the
short-term for benefits, said the plan's investment
board.
Earlier this year, the CPP Investment Board purchased
a 50 per cent interest in a portfolio of 11 office properties
across Canada from Oxford Properties for $1 billion.
The CPP reserve fund stood at $91.7 billion as of Sept.
30.
Apartment vacancy rate for major cities rises to 2.7%
as home-buying grows
According to the Canadian Mortgage and Housing Corp.,
new construction, renovation and home sales kept housing
one of the hottest sectors of the economy in 2004.
Low interest rates coupled with a booming economy drove
housing-related spending up 7.7 per cent in current
dollars, compared to growth of 5.7 per cent in the rest
of the economy.
Not surprisingly, CMHC noted a corresponding rise in
the average apartment vacancy rate for major urban centres
in 2004, from to 2.7 per cent from 2.2 per cent in 2003.
CMHC also reported the following statistics:
• Existing home sales set a record in 2004 with
456,500 dwellings were sold through the Canadian Real
Estate Association's Multiple Listing Service (MLS).
• The average MLS sales price rose nearly 10 per
cent for the third year in a row.
• New housing starts increased 6.9 per cent in
2004 to more than 233,400 units, the highest level since
1987.
December is traditionally a festive time of year and many of us find ourselves
with packed social calendars. Everyone at ILS Learning
Corporation. would like to wish you not only a very
happy holiday season, but a safe one as well.
Whether you’re heading to a holiday party, family
gathering or New Year’s bash, please take some
time to consider your safety.
Winter road conditions and alcohol are two of the most
common causes of automobile accidents. A combination
of the two can make driving disastrous.
You can’t plan the weather, but you can plan
for a safer drive home. If you know you will be drinking
– any amount – leave your car at home. Take
public transportation or hire a taxi to take you around
town. Or, enlist a friend or relative to be a responsible
designated driver. Several communities also have driver
services established over the holiday season. Contact
your local Chamber of Commerce to get more information.
Also, just because you’re hosting a party does
not mean that you need not worry about transportation.
Remember that you are responsible for your guests and
that includes getting them home safely.
Completing
courses with ILS Learning Corporation has never been this
rewarding!
We
would like to thank you, our loyal clients, for making ILS
Canada’s Number One online continuing education provider.
As a token of our appreciation, we are giving away an all-inclusive
trip for two to Puerto Vallarta, Mexico!
Every time
you complete an ILS Learning Corporation online course between
August 15, 2005 and December 15, 2005, you will automatically
be entered in a draw for the trip. The more courses you complete,
the better your chances of winning!
Education
really does have its rewards.
For more
information, check out our Web site: www.ilscorp.com
Reports of thefts from automobiles
are high during the winter months. Experts point to an increase
in valuables in a person’s car which makes the vehicle
more attractive to thieves. How much holiday shopping do you?
How much of that do you leave in your car while finishing
other errands? If you’re like most of us, it’s
a lot.
The British Columbia Automobile Association says that last
December, 40 per cent of all claims reported to BCAA Insurance
were theft-related, the highest rate for any month in the
previous three years.
The need to be vigilant is just as high. Taking a few precautionary
steps can help to thwart would-be Grinches. Consider the following
tips for you, your clients and your friends and family to
help keep vehicles – and their contents – safe.
Park in well-lit areas, near sidewalks or walkways. Avoid
parking near dumpsters or large vans or trucks. These obstacles
decrease your ability to see the space around your vehicle
clearly, where thieves or carjackers could be hiding.
Consider using the valet service if you are out at a
shopping center alone at night. It may cost money, but your
safety is worth more. Leave the valet only the ignition
key with no I.D. Keep your registration and proof of insurance
in your wallet.
Place gifts in the trunk and out of view. Use a trash
bag, blanket or cardboard box to camouflage packages in
the back of a van or SUV. If you're going back into the
store or mall for more shopping, move your car to another
area of the lot so thieves don't see you leaving a car full
of valuable merchandise.
Try to keep one hand free with the other hand holding
your car keys as you approach or leave your vehicle so you
can maneuver if you encounter a thief or carjacker.
Avoid using your car for storage of golf clubs, ski/snowboard
equipment, tools and car stereos. These items are tempting
targets for thieves.
O' Canada, how cold our native
land gets. Winter in Canada is not the kindest of seasons;
it’s that guest who arrives early and overstays its
welcome. By now we know that we can’t avoid it, so we
just have to deal with it.
Now is the perfect time for us to take control and winterize
ourselves and our homes, cars and cottages.
Why winterize?
Believe it or not, there is a connection between winterizing
and insurance. As brokers, you should let your clients know
about these options. And as Canadians, you might want to consider
doing them yourself. Putting snow tires on a vehicle won’t
lower premiums, but could reduce the risk of accidents. Or,
making sure a house is ready for winter can mean that the
risk of fires in a fireplace flue is minimized. Winterizing
a cottage means that claims due to theft are less likely to
occur.
Winterizing your vehicle
Winter driving is not only a hassle, it’s dangerous
as well. While police say that most fatal car crashes occur
in the summer months, winter roads bring with them a whole
host of issues that can affect car insurance. You have to
contend with unplowed roads, black ice, snowdrifts, freezing
rain… need we go on? Even if you’re in British
Columbia and tend to call your Ontario relatives in December
to brag about above-zero temperatures, winterizing your vehicle
is still important. Consider taking the following steps to
make winter driving more tolerable and safer:
Tires
You need a good amount of tread on your tires so that they
can grip the road properly. In most provinces, your tires
must be replaced, by law, when the tread is at 1.6 mm. In
many areas of the country, snow tires may help to make lives
easier and safer. If you have a rear wheel drive car, or
a car with low profile high performance tires, having snow
tires installed on your car before winter can be a life
saver. The main problem with rear wheel drive cars is that
there is not much weight positioned over the rear of the
car, hence not much pressure on the rear wheels to keep
them from skidding. You can counter this problem by installing
snow tires and by adding some weight to the trunk of your
car, such as sandbags.
What about all-season tires?
All-season tires might be ok for drivers living in more
moderate areas of the country. For those in areas that
see a lot of heavy snow falls, all-seasons will not keep
you on the road.
What about studded tires?
Studded tires tend to not make a noticeable difference
when stopping on snow, but in icy conditions, they can
help improve traction by a great deal. Many people think
that studded tires are illegal in Canada. This is not
true – sort of. Studded tires remain to be illegal
in Ontario. They are legal in Alberta, Saskatchewan and
in each of the territories. In the remaining provinces
– British Columbia, Manitoba, Quebec and each of
the Maritime provinces and Newfoundland – studded
tires are legal though carry some restrictions. Drivers
in these provinces should check with their local governments
or law enforcement agencies to find out what these restrictions
are.
Windshield
You’ve got to be able to see to drive safely. You should
replace your windshield wipers at the end of every winter.
Ice, snow and cold temperatures can crack and tear the rubber
blades on your wipers. If you replace your wipers at the end
of the winter, you get nice new ones to use for the milder
spring, summer and fall months. By winter they have seen very
light use, so they should stand up well to harsh winter conditions.
Remember to regularly check your fluid levels, as well!
The essential emergency kit
In case something does go wrong and you find yourself in a
perilously cold situation, it’s best to be prepared.
Make like a Boy Scout and get your car ready for any winter
hazards you might encounter. A fully-stocked emergency kit
can make all the difference in the world. What should you
put in it? Consider the following:
Flashlight with spare batteries. Don’t keep the
batteries in the flashlight as this will drain them. Instead,
keep new, fresh batteries elsewhere in the car.
Ice scraper and/or brush for removing snow from your
car.
Sand or gravel in case you get stuck in the snow and
need to get some extra traction under your wheels. A shovel
may help you to dig out of snowdrifts or snow banks.
Jumper cables.
Spare jacket, blankets, gloves and other warm clothing.
Emergency flares or other signaling device.
Cell phones can come in handy, but you shouldn’t
rely on these alone. Many areas of the country do not have
great cellular reception so your calls for help may not
go through.
Winterizing your home
In the winter, many of us turn into veritable hermits. Why
go outside when we can sit in front of our fireplace with
a hot chocolate in hand. Winterizing your home can improve
its efficiency and also make it safer. Careful checking of
insulation and any window or door gaps can decrease your energy
bills. Here are a few tips to keep in mind while preparing
your home for the winter:
Windows and doors:
Add or replace worn weather-stripping around doors and
windows.
Caulk gaps where necessary.
Replace worn door stops at the bottom of doors.
Have a heating professional do a routine-check before
cold weather arrives.
Vacuum the vents and other heating components.
If it has one, replace the furnace filter. Make future
replacements as needed or directed by your furnace manufacturer.
Consider installing a setback thermostat. It regulates
the temperature, allowing the home to be cooler when you
are away or asleep.
Fill oil or propane tanks.
Chimneys and fireplaces:
Have the chimney inspected and cleaned.
Close the fireplace damper when not in use.
Plumbing:
Take care of known issues with pipes that freeze. Heat
tape can be used to keep them warm during extremely cold
weather.
Learn how to turn off water at its source so that you
can stop leaks immediately if they start.
Drain water from outdoor faucets when you think a hard
freeze is coming.
Collect Emergency Supplies:
Candles and matches or a small butane lighter.
Flashlight and batteries.
Fill propane tank or buy charcoal for outdoor grills.
Battery operated radio or weather radio. Buy extra batteries.
Snow blower, shovels, and/or chemicals to melt snow.
Containers of bottled water. Non perishable food to last
a few days. Be sure you have a hand operated can opener.
Paper plates and plastic eating utensils. Paper towels.
Extra firewood. Fuel for your generator. Kerosene and kerosene
heater (use with carbon monoxide monitoring strips).
Winterizing your cottage
Many Canadians close up their cottages for the winter and
don’t return until the weather gets nice again. Many
law enforcement officials say that more thefts from cottages
occur over the winter than at any other time. The lack of
populated areas makes cottages prime targets for thieves.
Insurance for cottages can be a little tricky. They can either
be insured on their own or on the owner’s homeowner’s
policy. Cottage coverage is usually more limited than with
dwellings that are occupied year-round. Burglary can be covered,
but not theft; in other words, for a claim to be considered
there must be signs of forcible entry and/or exit.
Cottage owners should follow many of the same tips as homeowners
for winter preparation. They might, however, want to take
special care to securely lock up anything that can be stolen.
Boat motors and other parts are popular items among thieves
and may not be properly locked up. The contents inside the
cottage should also be secured. Cottage owners should keep
an inventory, including serial number, of all items in the
cottage. Periodic checks on the cottage, if possible, can
help to deter would-be thieves as well.
Winter doesn’t have to be the depressing time that it’s
often made out to be. By taking the steps to winterize your
car, home and cottage, you may find that winter is not so
bad after all. Have a happy and safe winter!
Homeowner liability coverages contain exclusions relating to
the ownership, operation or use of automobiles. Most people
understand that losses, especially liability losses, caused
from the collision of two automobiles are usually insured on
automobile policies.
In Cella V McLean the court thought differently. In this
Ontario case the defendant allowed an intoxicated person to
drive their vehicle in which the defendant was a passenger.
The drunk driver collided with the plaintiff causing injury
to the plaintiff. The court ruled that the homeowner’s
policy the defendant purchased must respond to the loss. The
judge reasoned the loss arose from consuming alcohol and not
the use or operation of the vehicle. This meant the exclusion
on the defendant’s homeowners form did not apply.
Alcohol seems to run a
little more freely in the holidays than it does in other times
of the year. If you’re hosting a holiday party this
year, take some time to consider the following tips to ensure
the safety of you and your guests.
Offer a wide variety of non-alcoholic drinks.
Ensure that food is served. Non-salty food will help
to absorb alcohol but also will make guests less thirsty
than a bowl full of pretzels would.
Consider ceasing to serve alcohol past a certain time.
Arrange for taxi services, carpooling (with a designated
driver), or alternate ways home for your guests. You may
also consider having enough space to allow some guests to
spend the night, if needed.
Consider hosting a brunch or daytime party to avoid serving
alcohol all together.
Hire a bartender or enlist the help of one or two others
to play bartender. This will help to ensure that all mixed
drinks are measured as well as allowing the bartenders to
keep an eye on who doesn’t need another drink.
Plan your party so that the start and end times are clear.
Having a party run from 7:00 pm to midnight, for example,
will allow guests to pace themselves with their drinks.
The recent announcement that Donner and Blitzen have elected
to take the early reindeer retirement package has triggered
a good deal of concern about whether they will be replaced,
and about other restructuring decisions at the North Pole.
Streamlining is due to the North Pole's loss of dominance
of this season's gift distribution business. Home shopping
channels, the Internet, and mail order catalogs have diminished
Santa's market share. He could not sit idly by and permit
further erosion of the profit picture.
The reindeer downsizing was made possible through the purchase
of a late model Japanese sled for the CEO's annual trip. Improved
productivity from Dasher and Dancer--who will retrain at the
Harvard Business School--is anticipated. Reduction in reindeer
will also lessen airborne environmental emissions for which
the North Pole has received unfavorable press.
I am pleased to inform you that Rudolph's role will not
be disturbed. Tradition still counts for something at the
North Pole.
We
would like to thank you, our loyal clients, for making ILS
Canada’s Number One online continuing education provider.
