Ed Yourdon's current brilliant essay entitled: "Y2K And The Year of Living Dangerously" conveys a spectrum of potential Y2K disruptions evolving over time.

The present state of awareness is focusing mostly on potential problems at the end of 1999 and the beginning of 2000. Some are watching for problems that may occur on specific dates prior to 2000.

Most insurers are exempting Y2K coverage of risks and losses from policy renewals. Claims for Y2K related losses will be rejected.

Should we not expect many to regard this as another incentive for more coverups and deception?

-- Watchful (seethesea@msn.com), March 24, 1999

Answers

This is an interesting issue. There is a significant chance that this y2k insurance exclusion can be disposed of, but it will require effort on the part of the public.

First of all, read your policy and talk to your agent. If there is now, or if the renewal will contain a y2k exclusion, then ask that all y2k exclusions be dropped. The insurer may be willing to sell y2k coverage for an additional cost.

If you can't get satisfaction from your insurer, then immediately shop for another insurance company that will cover y2k, even if you have to pay some reasonable additional premium.

Insurance companies would love to exclude every risk, but they will only exclude what the law and the *MARKET FORCES* will allow them to exclude. If their policyholders start fleeing to companies that will provide y2k coverage, then the insurers will change their policies to again make them competitive. Insurance companies *are* responsive to competitive market forces.

If no one demands y2k coverage, then the carriers will continue to exclude it.

I'm going to call my insurance agent immediately upon finishing this post.

-- Puddintame (dit@dot.com), March 24, 1999.

Watchful and Others:

I just called my agent in Raleigh. My car and home policies are with Travelers and with Cincinnati. The agent at first seemed not to know what I was talking about. Then she said that my policies do have those exclusions. I asked if an endorsement was available and she said no such endorsements were available. She said it is an "industry wide" exclusion.

Now assistance is needed from the "Yourdon Street Irregulars." Can anybody find an insurer who does not exclude y2k coverage? If so, today might be their lucky day.

-- Puddintame (dit@dot.com), March 24, 1999.

Does this mean that, as long as government and/or corporate entities are unwilling to admit Y2K errors, that we are protected from Y2K insurance exclusions? The irony of being protected by their lying and obfuscation is just too delicious for words.

Hallyx

"If you always tell the truth, eventually you will be found out."---Oscar Wilde

-- Hallyx (Hallyx@aol.com), March 24, 1999.

Hallyx, I presume any orders to "deny everthing, admit nothing" expire promptly at midnight 12-31. At that time I presume the orders convert to "Blame Intractability of Problem, Praise Leadership for Preventing a Worse Problem, and Invoke All Y2K Exclusions"

-- Puddintame (dit@dot.com), March 24, 1999.

Hallyx,

Good quote!

Will everything but Y2K problems be attributed to computer failures to enable collecting on insurance for losses?

-- Watchful (seethesea@msn.com), March 24, 1999.

Havent read this yet. New up at GAO.

Might have some clues.

Diane

Insurance Industry: Regulators Are Less Active in Encouraging and Validating Year 2000 Preparedness. T-GGD-99-56. 10 pp. March 11, 1999.

http:// www.gao.gov/new.items/gg99056t.pdf

-- Diane J. Squire (sacredspaces@yahoo.com), March 24, 1999.