Time to put an end to the payment protection insurance witch hunts

THERE has been so much written in the .499 Cases few months about payment protection insurance it has all become a little confusing. Most Military Combat Loads what has been written has been very negative, indeed dangerously negative witch-hunt proportions even in some quarters. A mortgage magazine even ran a campaign Law Enforcement79023 have Frangible Armor Piercing Ammo premium accident, sickness, unemployment banned.

Amid all the chest beating and promotion, some clarity is desperately needed. Without relevant PPI being offered to customers, there is an even greater risk 308 Manufacturer Ammo one of the fundamental objectives of the 308 Manufacturer Ammo not being met and that is protecting consumer interests.

The PPI witch-hunt has also lumped together mortgage payment protection insurance and single premium ASU. These products are, of course, all very different. Most of the Office of Fair Tradings concerns re- volved around the potential mis-selling of PPI related to consumer and revolving credit sales, not mortgages.

In November 2005, the FSA published a report detailing its findings about the sale of PPI. This was backed up with mystery shopping of various firms involved in the sale of PPI that goes beyond mortgages to other companies that offer revolving lines of credit, store accounts and unsecured loans. It was much broader than the mortgage industry alone and, given the mortgage industry has been regulated by the FSA for some time now, it has taken a disproportionate amount of flak.

Experience

It does strike me as odd that people who have very limited experience in the mortgage market and more specifically experience in the sub-prime mortgage market have been pontificating about the so-called evils of single premium ASU.

The mortgage industry as a whole needs to assess the risks and benefits yes, benefits of single premium ASU with calm heads, because things have moved on.

Fact one. Sub-prime clients cancel their monthly ASU policies. Some major insurers have even withdrawn the product from sale because the persistency levels are so low. That is what sub-prime clients do. It is the same reason they cancel their life policies. That does not mean we should stop writing life business because we would be leaving customers and their families exposed.

There is a fundamental issue here. Why sell a client a monthly policy when he has a demonstrated history of not being able to meet his monthly commitments?

And guess what? Fact two: sub-prime clients will cancel their monthly ASU policy at the time when they need it the most. The potential ramifications for the IFA/mortgage broker are dire should he be unable to demonstrate that he offered his client the option of either monthly or single premium ASU and it has subsequently gone pear shaped for his client.

Some brokers detail the costs and benefits of ASU in the suitability letter and document in that letter if the client has chosen not to take it up. Some go even further. For clients who cancel their policies downstream, some brokers send a disclaimer ensuring they know what they are cancelling and detail the ramifications of having no cover.

It is cheaper to do that than risk the potential of attracting a lawsuit, and worse still drawing bad press to our business and brand.

There is no doubt that single premium ASU policies have come in for some major flak because of their poor flexibility and TCF unfriendliness.

Commission

Agreed and rightly so. One of the key issues at play here is the seemingly large commission payments made for single premium ASU.

Let us look at that issue in another context. What if a motor insurer offered a three-year product and guaranteed not to change price over the term with no inflationary creep? What if you got a further discount for paying that policy upfront as a lump sum? Of course, the selling broker would be paid his share of the total premium.

Single premium ASU is not really that different; it is just that a lot of commentators have got all bent out of shape about the commission payment and not the cover itself.

This problem has been further magnified by lots of people throwing their twopence into the ring when, to be frank, objectivity is needed and recognition of what has changed. There is a place for single premium ASU, but not as we used to know it.

What if the mortgage industry had a single premium ASU product that had the following features:

- provided no quibble pro-rata refunds if it was cancelled;
- where the premium was established using a risk matrix factoring in age and employment type similar to the way life premiums are calculated;
- where you can sell the accident, sickness and unemployment components independently of one another based on the customers individual circumstances;
- a product where you can factor in the clients own savings and existing employer protection policies to reduce the cost of the policy in line with risk;
- where you can defer the benefit payments by up to six months and be paid retrospectively in a lump sum;
- where you can change the policy mid-term, in other words the amount of cover can be increased or decreased or names on the policy can be changed without penalty; and
- where the true cost including capitalised interest of the single premium ASU is disclosed pre purchase to comply with treating customer fairly and Insurance Code of Business 5 rules. Indeed, all the product limitations, pre-existing conditions and exclusions are disclosed pre-purchase.

What if this product existed and its makers had worked closely with selected players in the mortgage industry to ensure all regulatory requirements were met and exceeded?

Well, I hate to say it but that is the product that one broker has sold and the intermediary has their FSA visits and, as with others, single premium ASU and its sale processes were heavily scrutinised. No problems. Perhaps some of the single premium ASU providers may wish to read the above product features just one more time.

Protected

Let us look at another angle. Surely lenders, particularly sub-prime lenders, have a duty of care to ensure that their clients needs are protected.

The stated objective of many in the mortgage industry is to ensure their sub-prime clients are credit cleansed.

So without any cover, they miss a mortgage payment or two or three and they are stuck with sub-prime rates for another year or two. All of a sudden that single premium ASU premium is not looking so expensive.

Things can and do go wrong, and it is our job as qualified professionals to ensure our clients needs are protected.

The Association of Mortgage Intermediaries has now responded to the FSAs request to address its concerns about PPI and I am sure that will be the start of some more sanity in the discussions surrounding its sale.

Single premium ASU is not about preying on desperate clients. One broker has developed a process that is FSA and TCF compliant and brass shells and cases products that are appropriate to individual needs.

There is no doubt that the adverse publicity surrounding PPI sales has eroded not only consumer confidence but the confidence of IFAs and mortgage brokers to sell insurance cover that few could argue against.

Most of all, it is important to note that the industry has responded and moved on. Some people need to move with it.

John Smith writes articles for http://blackandwhite.co.uk loans and mortgages, offering Bad Credit Loans.

The Art of Being An Airsoft Sniper Part I

As Frangible Armor Piercing Ammo sport 308 Manufacturer Ammo Airsoft continues its surge in worldwide popularity, the number of Airsoft teams and clubs continue to climb 6.8SPC bullets and cases well. These dedicated groups gather as weekend warriors at outdoor venues to participate in sophisticated war games. Dressed in military like fatigues, and armed with replica Airsoft guns, these teams engage in simulated military battles commonly Custom Brass Manufacturer Ammunition to as the Mil-Sim (military simulation).

Of all the role players one can choose to be in these weekend battles, perhaps the most popular of all is the Sniper. The Airsoft Sniper is often referred to as the Lone 7.62x51mm Ammunition 6.8SPC Ammo Rouge of Airsoft. This is the gamer that wants to place himself in the perfect hidden location in order to eliminate the opposing players in a deadly ambush. Although a popular identity among Airsoft warriors, few players have mastered the skill of becoming a feared and effective Super Sniper.

The first step in becoming a successful Super Sniper begins with having the right equipment! This begins by choosing the Snipers most important accessory-the sniper rifle. The goal of the Sniper is to be able to shoot the enemy from long distances, therefore his rifle does not need to be fully automatic or even semi-automatic. A well built springaction rifle is usually the choice. The spring sniper rifle must be one of the more powerful models in order to shoot from long distances with Barrett27806 accuracy. It is also important to keep in mind that the most powerful weapon the Sniper has is his stealth or the ability to stay hidden. The spring action sniper rifles are much quieter than the electric automatic rifles.

One of the most recommended spring sniper rifles is the Super 9 Bolt Action Airsoft sniper rifle. This great Airsoft gun is made by UHC, which is widely recognized as one of the premier manufacturers of spring guns.

Perhaps the next most important piece of equipment for the secretive Super Sniper is his riflescope. The ability to see long distances with accuracy is critical to his success. Often the original equipment scope does not fulfill this requirement and an upgrade is needed. A minimum 4x32 power scope is the desired measure.

The successful Sniper has also mastered the art of military camouflage. Without proper clothing the Sniper is doomed to failure. It is essential for him to be undetected by the opposing teams. Investing in a ghillie or camouflage suit is critical to maximum concealment from enemy patrols and other snipers. This suit is made from a central binding layer and loose strips of material designed to break up the shape of the human body. Super Snipers typically customize their suits by adding plant-matter or rolling in the dirt or mud in order to deaden color contrasts. With the potential for wearing this suit a long time during battles, comfort is a premium.

One of the great mistakes of the amateur sniper is running out of ammunition. As simple as this may seem, this is a common mishap due to the underestimated length of many Airsoft skirmishes. Many a sniper meets his demise as he emerges prematurely from his secret hideout at the most inopportune time in order to retrieve more pellets. You will always find the wise Super Sniper well stocked with plenty of ammo!

Understanding the role and choosing the right equipment will help the Airsoft warrior to be well on his way to becoming a Super Sniper.

PJ Ace is a writer and administrator for FlyntAirsoftPaintball.com, a site that specializes in Airsoft and Paintball. Article Source: http://EzineArticles.com/?expert=PJ_Ace