Citation

Material Information

Title:
Celebrating centuries of insurance services
Creator:
Registrar of Insurance of The Bahamas
Place of Publication:
Nassau, Bahamas
Publisher:
Registrar of Insurance of The Bahamas
Publication Date:
Language:
English
Physical Description:
24 p. : ill. ; 33 cm.
Physical Location:
HBL Archives - Newspaper supplements box

Subjects

Subjects / Keywords:
Insurance -- Bahamas -- History

Notes

Abstract:
Newspaper supplement published to celebrate Insurance Month, November 1999.
Statement of Responsibility:
Registrar of Insurance of the Bahamas

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Source Institution:
University of The Bahamas
Holding Location:
University of The Bahamas
Rights Management:
This item is licensed with the Creative Commons Attribution No Derivatives License. This license allows for redistribution, commercial and non-commercial, as long as it is passed along unchanged and in whole, with credit to the author.

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Jmraial Life Hnancial ColinalnsurMCe itR U&\NCE MPANY 8 Family Guardian \

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..-' pne of the most impom anyestme.Pts you can make' a beHer tuture. Don't RockAway the ... live them with the -

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"C J, b r C t { C il.!fl .. '1{1Q LJ{l.t, lJ '-'Ofi_C '-CPROCLAMATION WHEREAS mer c hants and traders of the ancient civiliza tions of Mesopotamia. Carthage and other North African l ands bordering the Mediterranean Sea first pra c tic e d the basi c insurance concept, "sharing risk" when transporting goods by tea; AND WHEREAS. hist o r y s how s that the great Roman Em pir e also empl oyed basic principles of life insuran c e In managing and In havin g all soldi ers co n tribu t e a small amount of their earnings to their regiment burial club, to cove r t h e cos t of burial club to cover the cos t of burial and prov i ding a living a ll owance to the family of th e deceased; AND WHEREAS western soc i ety s ubsequentl y c ontinued using and refining thi s risk sharing co n cept to f acilitate the payment of benefits from a common fund to associa t es who had suffered a loss by a cc ident wh e ther due to water. wind, fire, d eat h; AND WHEREAS even on the eve of the third millennium It Is Insurance, se l ec ted from among a wide variety of economlc Instruments In today's marketplace. which i s used to finance unfor eseeab l e and fortuit o u s losses: AND WHEREAS, In the Commonwealth ofThe Bahamas, Insuran ce secures other sec tors of the finan cia l services Industry; provides a major source of capital each year, thus furthering national development ; c reating jobs; and help s polic y owners to guarante e p erso nal. f u ture flnancla i s tability ; AND WHEREAS. The Bahamas Association of Lif e and Health Insur ers. The Bahamas General Insu rance MESSAGE FROM THE MINISTER OF FINANCE WILLIAM C ALLEN M P O n the occasion of the Insurance Industry' s "Centuries of Ins uranc e c elebration. I am pl ease d t o extend our gree tin gs and best wishes to you. In this reg ard we n o te that October has been d es ignated Insuranc e Month. The imp o rtance of the In s uran ce industry in lhe life of our nation i s now so well establis h ed that It I s easily t aken f o r grante d but It is us e ful occasionally to r eflect on th is c ritical Importance The ce l ebrations now underway p resen t suc h an occasion We a r e n ow in the p r ocess of moderniz i ng our Insurance legislation whi c h clear l y Is In need of over haul to meet the present r e qulrements o f a dynami c Indu stry a nd a rap idl y dev e l oping eco n omy It Is important that we move quickly now to finalize this l egislation. The industry deserves a modern legis l ative framework ade quat e to the Importance of its rol e. The insurance industry Is very d e monstrably a key c omponent of The Bahamas flnancial services sec tor and I look forward to I ts furth e r development. I trust th e ac tiviti es o f these ce l eb rati o n s w ill be both m e mor able a nd highl y successful. Association. The Bahamas Life and I l ealt h Insurers Man agers Associa tion The Association of The Bahamas. T h e Registrar o f In su r a n ce Co mpanies and the Nauona l I nsurance B oar d wish to se t aside o n e month to h os t a seri es of activi ti es t o In c r ease public awar e n ess of the important r ole o f the I nsu r ance Industry In our nation ; NOW THEREFORE. I. Hubert A Ingraham Prtm e Minist e r of The Commonw e alth o f The Bahamas do hereb y proclaim the month of October as INSURANCE MONTH". IN WITNESS WHEREOF. I. HAVE Hereunto set my Hand and Sea t This day 30th of September. 1999 t})(). HUBERT A INGRAHAM PRIME MINISTER MESSAGE FROM THE MINISTER OF STATE FOR ECONOMIC DEVELOPMENT, HON. CARL W. BETHEL, M.P. In The B ahamas, the financial se r vices sector is elCperl enclng unpreceden t ed g r owth and d e velopm e nt. T hi s growth and development Is not restri c ted t o areas s uch as banking and trus ts. but increasing l y the insurance industry is a major con tribut o r t o thi s growth. Ove r t h e l ast five years. there has been a sig nifi cant Increase In privat e pension funds man aged b y insurance comp ani es. and Insuranc e compa nies ar e a majo r so urce for the mobilization of sav ing s needed for the l oca l mortgage market. In addition t o mortgages. the in s uran ce Industry Is a major participant In gove rnm en t b o nd Issues. with an est i m ate d $114 8 million h e ld In gove rnm ent bond s at th e e nd o f 1998. ln a ddition t o its co ntribution to the growth and d eve l opmen t of the financ i al se rvices sector, th e in su r a n ce Indu s try make s a d irec t contr ibuti o n to the Bahamlan economy through the e mpl oy m e nt of a n e s timate d 2 000 Bahami a ns. Our recent experience o f th e d evas tati o n wrough t b y Hurri cane Floyd has again underscored the need for Insuran ce coverage and the vital rol e played by the insurance industry i n fundin g national reconstru c tion and rehabili tation. I n thi s regar d the ti ming of your conf ere n c e i s particularly s i gnificant. Given th e Impor t ance of the i ns u rance Indu stry to the Bahamian e conom y and th e need to ens u re that the i ndus try remains competitiv e the Gov e rnment of t h e Bahamas has laun c h e d several Initiatives. Curre ntl y a n ew Insuran c e bill ls under active cons !der a tlon whic h will i n troduce innova tive f eatures d esig n e d to move the Industry well Int o the 2 1st c entury as well as Increasi n g consu m e r p rotection In addition. l eg i s l ation is expected to be introduced f o r th e r egu lation o f pension f u nds. It is cer tajniy a p l easu r e to co n g r a tul a te and thank the lns uran ce Industry for i ts con t ribution t o the g r ow th and deve l opment of the Bahamlan eco nom y From a review o f I ts p ast p e r formance and the government's c o ntinued commitm ent to e nhan ce and promote the Indu stry, tl1e r e I s no doubt that th e Insuranc e ind u s try Is poised for remarkable g r ow th Int o th e 2 1st ce ntur y . ..... OOOOOnOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO 3 .

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'- I Insurance Month '99 ..... .. -.. ) 1 1 ....... . . ..... '" .... -. MESSAGE FROM KENDAL C MUNNINGS REGISTRAR OF INSURANCE I am honoured to be the Registrar of Insuran ce as we ce l ebrate centuries of Insurance se rvi ces and prepare to meet the c hall enges of new millennium The Bahamas' Insurance market s till has g r ea t prospects for further dpveloprnent. This development Is expected to provide and sec urit y for the consumer and at the same lime enabiC1 the p ro vider of the to draw eco n omic benents. Lt't me lrulll1' all Bahamians that the Insurance companies are sensitive to the challe n ges facing The Bahamas as a result of th e devastation caused by llurrlcane F l oyd, which In varyLng degrees has Impacted all our Islands I take this opportunity to thank all Insurers who have assisted our resi d ents In Abaco, Eleuthera, Cat Island and San Salvador. which sus tain ed s lgnlncant damages from Hurri cane f)oyd. l commend the Insurance companies for their efforts I n thoroughly and acc urat ely assesslng the damages ca u sed by Hurricane Floyd and ca n assu r e policyholders of th e prompt and efficien t se ttlement o f all claims In accol' dance will' the t erms of their contracts. The new mlllennlum w ill see a s tron ger, more v ibran t office of the Registrar o f Ins urance with the passage of the n ew Insur ance Act. I wis h the Industry s uccess In Its futur e e ndeavou r s Ke ndal Munnlngs Post Office Box N-3925 Nassau Bahamas Telephone 393-2541/2 Fax 394-5670 93 Q..C(U(
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................................................................................... .. Celebrating Centuries of Insurance Service What's Your Insurance I Q? M e mb ers of the local Insurance associatio ns, the Office o f the Registrar o f Insur ance and the National Ins urance Board are, Indeed. apprec i a tiv e of the opportunity to b e Involved In insurance one of th e mo st sig nifi cant and important In d ustries In the economy of our country ln t he economy of any we ll-establ1s h e d country today. The financial strength and sta blllt y of i ndiv iduals, as well as the secu rit y o f man y businesses d epe nd u pon the successful o per a llon o f insurance Insur ance is the o nl y business whlch h as esse ntiall y as its pr o du c t a p romis e by the Insurance company to pa y out cas h upon the occu rr e n ce of certa in futu r e eve nts Medit e r ranean p eo pl e In ancient times, l ong before the birth of Christ r ecog nized the need for risk s h aring which is the basic concep t of insurance. And today, less than a hundre d da ys before the dawn of the thi r d millennium AD, insuran ce is s till the instrument of c h oice u sed In finan ci n g unforeseeabl e and fortu itous lo sses. We ce l ebrate, therefore, the chance that I s ours to p rov id e the var i ous opportunities of Ins urance coverage to the peopl e of The Bahamas. Also, If o n e wer e to sum up the years of operating h e r e of th e 140 companies registered In The B ahamas. the total would be many cen turies. Just l et us recall severa l Institutions observing a nni versa r ies in 1999 for exa mple: National Insurance Board covering everyone in the country 25 years Star Life Insurance Company 45 years J .S. Johnson Agents & Brokers 80 years Imp eria l Life Financial 1 00 years It I s fit ti ng, therefore, that we pause before thi s year s end, the end of another century. and try to l ea d others In r evelwlng the b enefits of the Imp ortance of a ll kinds of insurance. So, unde r the theme, "Ce l eb r a tin g Centuries of Insurance Services". the following insurance lnsUtuUonslorganlzallons ln T h e Bahamas came together and observed October 1999 as I nsurance Month: Bahamas A ssoc iation of Life and Health Insurers (BALHI) B a hamas General Insurance Association (BGIA) Bahamas Life and Health Insurer s Managers A ssocia tion (BLHIMA) Insurance Professionals Association (IPA) Life Underwriters Association of The Bahamas (LUABh) Office of the Registrar of I nsurance Companies (ORIC) The National Insurance Board (NI B) Activities durin g those 3 1 days o n the threshold of th e U1ird millennium were the responsibility of a Steering Committee m a d e up of rep resentativ es from var ious sections of the Indu stry. Steer in g Committee m e m bers In Nassa u and the lnstl tutl on(s) each rep resen ts are : Mark Barraclough, A l goma Adjusters; IP A Roger Brown, BG I A (co-Chair ) Angela Burrows, Atlantic Medical Telzena Coakley, BALHI (co-Chair) Darren Bastian, ATL MED Me li ssa Huyler SEC / GEN Richard Darville, IPA Audrey Deveaux NIB Vikki Grant, BALH I Timothy Ingraham IPA; Summit Insurance Linda Jarrett, Imperial Life Financia l Gwendolyn Knowles, Colina Financial Cardinal McCardy, Fam il y Guardian Alice Musgrove Rolle Crown Life Eugene Nairn BLHIMA Cyri l Peel Star In su rance Melvina Peltier Capi t a l Life In surance Bery l Rolle ORI C Anne Smith, Globa l Life We nd ell Smi th Li f e of Barbados lUABh Gerald Strachan Family Guardian Gilbert Williams, British American In surance I n Freeport, Grand Bahama, Committee members are: D o you know the meaning of term life Insu r ance "e ndowment Insuran ce", "liability Insurance" or ''wh o l e life Insurance"? You know we ll sort of but you would like to h ave a c l eare r I dea. Well, h e r e is Insurance 014. a s hort course In so m e Important Insurance t erms actual cash value. The t raditional measure of property insurance loss. Usually defined as the cost of replacing the des troyed property with new property, minus an allowance for depreciation. all-risk insurance. Any insurance that cover s all pe r ils that are not explicitly excl uded. annuity. A contract that provi d es a n income for a stated period or for a person's lifetime. automatic premium loan. A l i f e insurance policy provision authorizing the insurer to use the pol i cy's loan value to pay any premium not paid at the end of th e grace period beneficiary The person who receives the proceeds of a life insurance policy after the death of the insured. binder. A temporary Insurance cont ract James Carey Insuran ce Management (co-Chair) Anthony Ferguson G B .A. continued on page15 Dashwell Flowers Imperial Life Financial (co-Chair) Philip Franks, Nassau Underwriters & Agents Julie Glover, Family Guardian Elsie McKenzie Colina Financial Carl Rolle British Am erican Christine Russell, Family Guardian Melissa Sears, Atlantic Medica l Kennedy Smith, Royal & Sun Allian ce Nick Williams Crown Life Special Thanks Co-opted workers assisting the Steering Committee Include: Holly Ferguson, A tl antic Medi ca l Delores Farrington Atlantic Medi cal Vivienne Forbes, Atlantic M edica l Jennifer Johnson AMI Kim Sweeting Star In s urance The Commi ttee, the Directors o f BALHI and B GIA and the e ntir e Industry a r e still stunne d b y the extensive damages that the hurricane furious and ferocious Floyd. has Inflicted on the Islands of this continued o n page 17 SUNSHINE INSURANCE Home -Auto Commercial Contractors All Rjs k HcaJth Aviation Marine Life Sunshine H o u se Shirley Street Tel: 394 0011 Fax: 394 0019 P. 0. Box N -3180 Nassa u Thc Bahamas emai l : sunins@batdnct.bs We're on your side ... Sunshine Plaz a Blue Hill Road, Tel: 322 3511 Fax: 322 3518 5 ..

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Insurance Month '99 THE HISTORY OF INSURANCE T he concept of insurance as a means of protection against financ i al l oss developed In the wake of maritime trade and was originally limited to commer cial enterprbcs. Bottomry, one of the first known examp les of lru.urance, was used by seafaring Phoenician merchants from about 1200 B C ; it was an outgrowth of Babylonian business practice dating back at l eas t to 2000 B C Ln Its simples t form. the shipowner borrowed money, using his ship {or "bottOin") as colla t eral. If the ship reached port safely the loan was rPpa l d with Interest (corresponding to today's Insurance premium). but If the ship was l ost at sea the loan was forgiven, thus compensating th e s hip owne r for the lo ss Respondentia loans Insured the cargo on a slmUar basts These early forms of Insuran c e spread wilh the sea trade reaching e
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\..._ UCeiebratinll Centuries of Service" PROFILES OF REGISTRAR OF INSURANCE OFFICE HOLDERS 1969 to Present CHARLESA.DONALDSON 1969 1976 C h arles A Donaldson, the eldest son of the l ate Dr and M rs T.E W Donaldson. was born In New Providence, Bahama s o n Nov ember 19. 1925. H e attended primary and secondary sc hool s In New Providence and severa l colleges and universities in the United Sta t es. Mr Donal dson worke d for a number o f national and in te r national Insurance comp anies In both The Bah amas and t h e U nited Sta t es. After r eturning to The Bahamas In 1968, Mr Donaldson was appoi n ted to the newly c r eated post in 1969 as the f1rst Registrar of Insuran ce Companies. H is duties and (inter alia) were ge n e rall y to regulate and poiJce the Insurance Industry. Mor e spec ifically, though h e was respons i b l e for d r afting the Insurance regulations which would later bring the new Insurance Act into operation. As Registrar. Mr Donalson had the fu ll coope ratic-n of both the l oca l and international Insu r a n ce indus t ry During hi s term In office he was the author o f the "Bahamas Insurance Exam Preparation Booklet" and "The Scope and Purpose of ins uran ce Regulation in The Bahamas", an article publ ished In the United States by the National Association of Insurance Commi ss ioners Additionally. Mr Donaldson's featured article "Captive In The Bahamas" was published In the 1973 Chilton "Spectator Magazine". His most recent article, an update on Captive in The Bahamas was published i n the 1995 Bahan1as Handbook. Highlighted among his many consultancies: His appointment to the Government of Bermuda to assist with the drafti n g of Its Insuran ce r eg ul a ti o n s Hts acceptance as an h o n o rar y li a ison member i n th e hi gh l y recognized National Association of Insur ance Commiss ione rs (NAJC) In the United States. Mr Dona lds o n served in th e Uni t e d States Navy d uring World War II. H e Is the father of five child r en. He ls now retired. OCTAVIA JOHNSON 1976 1994 Mrs Octav i a Johnson served as Registrar of Insurance from 1974 to 1994. She says she enjoyed her years and particu larl y apprecia t ed m eet ing the ordinary/ill informed policy owners, and advising and instru cting them gave her much satisfaction. S h e adds that the job brought her into contac t with many people who became her friends even though she was not a l ways able to obt ain I he k i nd o f results they ex pe c ted when the y appmached her. TELZENA G. COAKLEY, B.A., M.A., M.I.A., CLU 1994 1997 Telzena G. Coakley was Registrar oflnsurance from 1994 to 1997. and Government Ins uran ce Advisor. 19971998. As Registrar of Insur ance she wo rked c l ose l y wit h t h e Industry associations, BALH I and B G I A to furth e r upgra d e t he minimum r e quir eme n ts for Interm e d i aries to enter t h e Industry and to e n sure ethica l pr ac ti ces. Other highlights have included: Efforts co mpri sing m ee t ings with l ocal insurance bus i ness trainers and the then Prin c i pal an d V ice Principal of The College of The Baham as (COB) to have COB conduc t an Insur a n ce institute continuo u s l y offe rin g a cademi c and so m e p rofession al In se r v i ce co u rses. T h ese efforts ha ve not yet been fruitful but I am hopeful! S u ccess i n being able to have some of my staff sent overseas for s p ecia l regulatory training. Computer i zation o f t h e office wo r k. Extensive work with l ega l draftsmen In th e production of the Bill fo r a new Insurance Act for The Bahamas. KENDAL C. MUNNINGS 1997 pres ent Kenda l C Munnlngs was appointed Registrar of Insura nce on November 17. 1997. H e was born In Nassau on October 12. 1947. the son of the l ate Basil "Boots" Munnlngs and Ophelia Munnlngs, both of Andros. Mr Munnlngs was educated at Weste r n Secondary School and Government High Sc h ool in Nassau and the City of L ondon College. In the United Kingdom H e subseque n tly articled with Price Waterhouse & Co., L ondon and became a Chartered Accountant in 1972. He Is a member of the Bahamas I nstitute of Chart ered Accounta n t (BI CA). and a Fe llow of lhc Inst itute of Chartered Accountants In England an d Wales. continued on page 1 7 The Insurance Company of the West Indies Limited .c=>. 11'Jli1r \....,_ / Serving You ... Is All We Do! 7 ..

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Insurance Month '99 YOU SHOULD KNOW THAT ..... Property Casualty Insurance Includes insurance paying Compiled by Telzen a G Coakley Insurance Is a type of risk transfer business and the key to t h e function ing of Insuran ce b uslness Is the Law of Large Numbers. Appl icati o n of the Law of Larg e Numbers enables Insu rers to handl e risks like Bahamas E l ectricity Corporation the Royal Bahamas Defense Force, Individuals and bus inesses. The Law of Larg e Numbers is a mathema ti ca l prin ci pl e sta tin g that as the number o f exposures Is Increased, the ac tual results t end to come closer to the ex p ected results Insurance b usi ness is system of h a ndlin g risk by c ombini n g many loss ex p osures, w ith the costs of the losses belng shared by all o f the participants. In surance business Is a sys tem of handling rlsk by combinin g many loss exposures. with the costs of the losses b eing s har e d by all of the participants Loss exp osures a r e persons. places or things that could susta in an unexpected i n j ury, reduction o r d isap p earance of economic valu e Not a ll risks are insurabl e. In surable risks generally h ave four c hara cteristics : (i) there are many lik e/s imilar l oss exposures [U] losses are importan t. definite and measurable l iii J losses are accidental, and K Insurance NOWLEDGE A Agents BILITY INDIVIDUAL Life Medical liv] ca tastrophic l oss Is unlikel y Losses whic h may be insured Include loss o f prop e .rty, loss of In come. l oss of life. loss assoc iated with lega l liability claims, and l oss due to unexpected expenses. An i nsurance bus in ess reduces Its risk by combining many l oss exposures. An insurance policy Is a l eg al contract that co n tains the tenns b y which an Insu rer promises to pay for sta ted l osses. An Insu ranc e premium Is the pri ce of an lnsurance poli cy I ns u rance can b e prmlded by a private (no n govern m ental) insuring organization as we ll as by the government. Her e in The Bahamas the member co mpani es of the Bahamas Association of Llfe and Health Insur ers (BALHI) and some of the Bahamas General Insurance Associa tion (BG IA) member compa nies are priva te in surers. The Government of The Bahamas provides some klnds o f lnsurance that are compul sory through its Nation al Insurance Bo ard (NIB). The majo r fields of priva te Insurance are L ife. Health and Prop erty Casua l ty Life and Heal th Insurance deal with t h e financia l l oss stem m ing from r i sks associate d directly with the human body. living and dy ing. for l osses caused by Injuries t o persons, loss of or damage to places and things. liabiHty. workers compensat ion and suretyship. An Actuary Is a p erson professionally trained in the t echnical aspects of insuran ce and related fields, particu l arly ln the mathemati cs of insurance such as the evalu ation of risk and probabUitles. Membership In an Academy o r Institute of Actuaries I s evi d e n ce of pr ofes s i o nal q u alification An Adjuster I s a person re pres e n ti n g an Insurer, or Insurance company In discussions t o reach ag r eement on the amount of a loss and the amount that the Insurer must pay the c laimant. I nsurance Intermed iaries are Individ u als and corpora tions authorized to handl e any kind of arrangements ln the insurance Industry Insurance Intermediaries include Agents, Brokers. Salespersons Adjusters Loss Assessors and Insu ran c e Surveyors. OUR CUENTS SAY THAT WE ARE THE MOST FRIENDLY, COURTEOUS AND HELPFUL PEOPLE IN THE BUSINESS. TRY US AND FIND OlJT FOR YOURSELF. We represent only companies with outstanding reputations including: Income Replacement Professional Overhead Expenses The Travellers Crown life Capital Life VINCENT KNOWLES WILLAMAE JENOURE MARY MUNROE FRANKLYN ROLLE LINDA SMITH KAREN COLEBY ERICA PYFROM MONIQUE MOSS NORMA MICHAEL CHEVETTE RUSSELL NIGEL CASH MICHAEL ROMER MARSHALL ALBURY GROUP Life Major Medical Pension AUTO PLEASURE CRAFT MARINE & MARINE CARGO AIRCRAFT COMMERCIAL BUILDINGS HOME LIABILITY CONTENTS FIRE & ADDITIONAL PERILS TRAVEL BUSINESS Atlantic Medical Insurance Co. Security & General Ins. Co. Sun Alliance Insurance Management ltd. CALL 322-4159 323-4842 322-6500 FAX 322-6509 P.O. Box N-7493 Mt. Royal Ave. & Carew St. Nassau, Bahamas 11We spread our wings to cover The Bahamas" 8

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........... .... ................. ... ................. .... .... ......... ... ..... "Ce/ebratin P Centuries o f Ser v ice" -... # Shervin W. Thompson, MBA, He An Industry Gi.ant Remembered Shervin W. Thompson, the former president of Star began his career In Insurance In 1957 as a salesman with the Company which was then known as Star Life Insurance Company Limited, Under th e new Bahamian leadership, Star's i nfluen ce quickly grew throughout The Bahamas. In just one year Star constructed three new District Sales Offices In Nassau and expan ded the His first area of responsibility was to service the Companys Kemp Road debit. One day early in h i s career, while riding his bicycle through Kemp Road, Mr Thompson became very disheartned, when, after stopping at five houses, he was unable to collect &rrf premiums. He decided to quit the Insurance business and was heading back to the Bay St. office to turn in his collection books when he saw a drunk lying down In the road, struggUng to get up The drunk made several attempts but kept falling back to the ground All the while he was singing ... 'Why should I feel discouraged ... His e ye i s on th e sparrow and I know H e watches over me Finally gathering all of his strength, the drunk managed to lift him self up This scene had an eno rmous impact on Mr. Thompson, who said to himself If t hat drunk can get up, so can 1." Over th e next thirty -ftve years Shervln Thompson came to be known as an energetic, compassionate man with a strong love for people and the insurance industry, and a vision to build a Bahamian insurance company that would provide for the needs of Bahamians from Abaca to ln agua The opportunity finally arrived Above all, Shervln Thompson was a leader by example. He motivated his staff to be the best they could be and to make Star the best it could be second best was never good enough. He also believed In giving back to the community and helping his fellow man in any way he could -as a corporate citizen and as an individual. District Offices i n both Gran d Bahama and Eleuthera to accommodate Its incr eas ing sales force. Today Star has representatives in every major island of The Bahamas Star's product offering was also expanded to include educational savings and flexible health plans, thereby providing greater coverage and enhanced benefits Mr. Thompson was not only committed to the success of Star Insurance but also to the growth of The Bahamas Insurance Industry and his country. He served as Past President of the Life Underwriters Association of The Bahamas, and Treasurer and Director of The Bahamas Association of Life & Health Insurers. He was also President of The Bahamas Chamber of Commerce and Honorary Consul to the Dominican Republic Shervln Thompson was an ardent churchgoer, lay preacher and Sunday school teacher In the Methodist Church. H e was a member of The Gldeons International, The Salvation Army Board of Directors and VIce President of The Bahamas Youth Camp. H e was also a devoted husband of Judith P. Thompson who serves on Star's Boar d of Di rectors and the father of three chi l dren, one of whom Kim Sweeting, is now in 1980, when Shervin Thompson. and two other Bahamian se nior managers J M Pinder and Herbert Thompson persuaded the parent company, Argus Insurance Co. of Bermuda, (who had purchased the Compa n y i n 1966 from its Bahamian founders) to make shares availab l e to its Bahamian staff. In 1981 these three gentlemen acquired the controlling shares in Star and th e Company once again reverted to Bahamian owners h i p Shervln Thompson was appointed President and J M Pinder and Herbert Thompson were made Vic e Presidents helping to build Star as Man ager of Human Re sources Shervin Thompson succeeded not only in business. H e s ucceeded at life In January 1993, Mr. Thompson passed away suddenly while playing tennis at his residence. Today his legacy lives on. Star Insuranc e Company (Bahamas) Limited employs over 170 sales representatives and office personnel nationwide and provides a diversified portfolio of insurance products, inclusive of health plans, Individual employee and family hospitalization pla ns, educa t ional plans pension plans unlimit ed lif e insura nce plans and ann uities. 3rd Terrac e West, Centreville P O Box N -1108, Nassau, Bahamas Ph: 326-1040 Fax: 326-1591 Star Insurance Company e.Sth ttlnniversary ..... ........ .......... .......... ... .... . .... .................... , ..... ........... ...... ,.. I 9

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Insurance Month '99 . . . . . .. . ... jf. I I PROFESSIONAL DESIGNATIONS IN THE INSURANCE INDUSTRY mandatory, some e l ectives) covering various areas such as Insurance hlstory. law, commerce, finance, accounting, Investment, computers, taXation, human resources, risk management. prope rty etc. Having done this. if 21 years or above an Individual woul d receive the Associate, Chartered Insurance Institute (ACJI) designation L i ke other members of the financia l services sector, the Insurance industry places great value on ongoing education and training and is committed to a high degree of professionalism, sound ethical practices and excellent customer se r vice. A part of fostering the above Involves encouraging its members to pursue the available professional designal ions In their respective arms of the field, I.e., Ltf e & I Ieahh or General I nsurance. Some of the professiona l des i gn11lions in Life and H ealth lnsurance that have been attained by persons working in the industry in the are as follows: -Chartered Financial Consultant (ChFC) -A Chartered Financial Consultant Is a tlnanclal advisor with advanced know l edge In wealth accumulation and retirement planning Chartered Life Underwriter (CLU)A Chartered Life Underwriter Is a fina n cia l advisor with advanced knowledge In Life and Health Insurance and employee b e nefits Fellow, Life Management Institute (FLMI) -The FLMI designation consists of university lev e l cou rses covering Insurance and business a d mlnls trati o n Since 1932. it h as been recognized as the hallmark of professionalism fo r emplo yees I n life and h ea lth Insurance and finan c ial services Industries. The FLMI Is a warded b y LOMA (Life Office Managem ent Assoc iation) a n International assoc iation of l ife/health insurance and financial se r vices companles. LIMRA Leadership Institute Fellow (LLIF} -The LLTF desi g nati o n Is awar d ed upon the completion of an executive lead ers h .ip d evelop m ent programme that targets 4 areas of the finan cial services Industry namely, marketin g strategies, finan c ial stralegles, exec u tive effectiveness and the c h alle nge of leadership. The designation Is con ferred b y LIMRA (Li fe Insura n ce Marketin g & Research Institute) In partnershl p with Babson College o f Wellesley Massachusetts Fellow, Society of Actuaries (FSA) The FSA designation Is awarded by the Society of Actuaries, U1e education, research and p rofessional membership o r ganization for actuaries In North America Achieving Fellowship status Is base d primarily on passing examinations In actuarial mathematics concerning l ife and h ea l t h insurance. pensions and lnvest men[ s. Fellow, Academy of Life Underwriting (FALU) -Th e FALU d esignation equip s an i ndividua l with the knowledge needed to e xhibit a hlgh d egree of p roficiency In the area of life under writing. The programme Inc l udes courses offe r ed by the Aca d e m y o f Lif e Under writing, The American College and the L i f e Underwrite r s Association of Canada. Associate, Life and Health Claims (ALHC)-T h e ALHC d esign ati o n Is awarded by the International C laim Associ a tion ( I C A). T h e s u ccessfu l completion o f the programme provides an Individual with an Introduction to life and health Insurance and a tho r o u g h understanding of claim administration In the life and h ealth insurance Indu stry for both I ndividual and gr o u p cove ra ges. Associate, Insurance Agency Administration (AIAA) -The AIAA desig nation Is awa rded by LOMA {Lif e Office Manage m ent Associatio n ) upOn t h e s u ccess ful completion of a programme designed for administrative non-s ales empl oyees in agency offices and for Insuran ce company home o r r egional office employees who interact with fie l d staff Attainment of the AlAA equips Individuals to organize an agency office, provide sal es support for Insurance agents, use infom1a tlon systems e!Tectlvely In the agency and more. Associate, Customer Service Programme (ACS) -The ACS designation ts awarded by LOMA (Life Office Management Association) upon the successfu l completio n of a 5-course programme desl gm:d t o meet customer service education needs of Insurance Industry employees of all l evels. The ACS programme teac h es cus tomer service princip l es and practices, h el p s Impro ve c ustomer se r vice ski lls and provides knowledge of Insurance prlncl plcs and products, company operations. I n surance law and marketing. Health Insurance Associate (HIA) T h e HIA designation Is obtained via a self-study program m e t hat is offered by t h e H ea lth I nsura n ce Assoc iation of America {HIAA) The compre h ens i ve educatio nal curriculum o n h eallhcare covers various methods on how to d eve lop p re mium r ates, b enefit des i g ns manage d care produ c ts and a number of r egu l a tlons and guide l ines for d1e In dustry. The examinations leading up to the Associate d es i gnation are h eld twice a yea r at various designated centres. l n o rder to qualify for the FCII designation, one must then practice for o n e year In the Industry then write a thesls An Individual who has alread y atlalned the FCII must then vet the thesis, seconded by another such Individual, then it must be sent oiT to London for grading If successful In all of the above requirements. an individual would U1cn be awarded the FCII granted thai he/she is 25 years of age or older. Fellow, Insurance Institute of Canada (FDC) -The FIIC and the AIIC (Associate, Insurance Institute of Canada) designations arc the Canadian equivalent t o the FCli and the ACII. The requirements for these designations are on par with those p r evio u sly noted. Fellow, Australian Insurance Institute (FAD) -The FAll and t h e AAil (Associate, Australian I nsurance I nstitute) designations a r e the Australian equiva lent to t h e FCII, ACII, FIIC and the AllC. The requi remen ts fo r these d es i gnations are on par wiU1 those previous l y noted. lMLIIClM v
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" Celebratinu Centuries of Service" ........................................................................................ ..................... NATIONAL INSURANCE BOARD -25 YEARS OF SOCIAL SECURITY SERVIC E S T O BAHAMIANS T h e National In s uran c e Bo a rd (NIB) admini s t e r s t h e S o cial Sec uri ty Sch e m e of The Bahama s. The Sch e me is administered by a 1 O m embe r Boar d whi c h reports t o th e Prim e Min ist er. The Board o f Dire c tor s c omprises a tripartit e r e prese n t a tion from gove rnm e nt, e mp l o y e es' and emplo y e rs' f e d e r a tion s. T h e Bo ar d i s h e ad e d b y a C hairman and e m ploys a Director who i s the o r g an i zatio n's C hi e f Ex ec utiv e Officer and o t her offi ce r s and s u bordin a tes a s ne ed e d t o a dminist e r the Act and Reg ul ations ST. UJKE'S DIAGNOSTIC CENTRE 51 COLLINS AVENUE ( 242) 325 7907 3223634 Fax: 3222800 I ABOI1/\fORY N IB was intr oduce d on Octob e r 7 1974 b y a n A c t of Parliam ent, t h e Nationa l I nsuranc e A c t 1972, to pro vide "p ec uniar y pa y m e n ts in resp ect o f Sickn e s s, Mate rnity, Inva li dity R e tir e me n t, D e ath, Industri a l Injury and Disa bl e m ent and D eath from Indu s t rial injury, m e dical c ar e and s ocial a s s istan ce for insur e d and oth e r p e r sons n o t qualifyi n g for s u c h pa y m e nts as of right . .. 0111 HltHJ A (OMPII II HAtHd 01 ltHHJt>IHIAI A tHJ M r D I C A I I A n 0 H A J 0 H Y <_. I H V I C r ------- X RAY T h e Nationa l Ins u ran ce Sch eme whic h beg an 25 y ea r s ago in an atmosphe r e of g reat s u s pi cio n muc h uncer t aint y and s o me host ili ty stan d s in 1 999 with r ese rve s of almo s t o n e billio n dollar s ($B = $US ) a s a sy non y m f o r national savings; as one o f the c ountry's mo s t important fin a n c ial i nsti tutio ns; a s an excell ent e xampl e of e ff ec tiv e decentral ize d (equitab l e ) se r v i ce d ellv e r y ln a c ti on; and most imp ortantly, as a b e a c on o f h ope f o r th e man y lndividu a l s wh o n ee d in c o me r e p lacem e n t, e ith e r o n a t empo r ary o r a p ermane n t basi s. ECG & Hmins Audiometry Clinical and lndus1rial Lab Testing Pregnancy Glucose Monitoring Antlcoagu]am Monitoring NIB d elivers a wid e range of soc i a l sec urit y se r v ices t o w o rk e r s a nd the ir d e p e nd a ,nt s in the C ommonw e alth o f The B a h amas. us An important word t n our business Our policyownm trust UIIO prottltk the ftnandal proleelkm and peace of mind they want for themselves and tbetr famtJies. Our communfly ff'Uifl U4 w be an Involved cfJrfX.Jf(tfe citizen suppor1 111g programme that help our natffJII Jlrotu AI Family Guardian, we laM this reljXmSibl/lly of trlJII very lltf'fcu4Jy, It' lblrty{fve yetm we've belptd ID build a better life for many tbrougb a IJron& jJm'tfollo of jinatld4J let'lllcel produds, lndudlng life tmd beallh Insurance, annully ltWin!! and resfdenllaJ and comtt181'Cia111JtgageS. We (1ft alstJ very proud to be an active parlld panl fn many commu nity actluil/es and we/at otlltl!aCh programme AI tut prepare j()f the nttJJ century ttheat( we reanmlt to out plldge to provt4e produal, lel'tllal, and IUjJport that UJI/1 build beltef lftJel/()f our pollcyoutnerl and help f.tt'l1ti/Qhm our (otnmunftle.r. DNA Parernity Testing Employee Health & Prttmploymmt Screening Drugs o f abuse Testing E nvjr onmental HIV Testing Family Guardian Insurance Company "Bwldmg n Better Lt{e for 11

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Insura nce Month gg .................................................................................. ................................ s TEACH US HOW TO LOVE-All participants In tho Thanksgiving Servire 11'!'111 a part of t11c lnsuronct induffJy and many mus.Jcaltalmts llll'tt< displayed Including this $tm/ful rondlflon by Melonle Huyler of Colina Insurance company. DENIM DAV -Brltltll American lnmmnf'f' Company spt'llrhPJJrlPd tiM rll/rd annual "Denim Day on Friday. October 8th when the staff memben of numerous business houses and organl:urlons donnf'{ltheir favrmri" dvnlrn wear and pins In suppot1 of Brt'Bsl Cancer AwallllJL'.!:f. lruurance professionals acrvs.r rl1e nation conlrlbuted as a part of rl1e lrwrance Month actJvJties. Eugene HllllfS. Financial Cot!fJ'OUer (tontn} and Kenrla Smith. group sales agt1nt aro show prosentJng Alex Roberts, headm aster of Queens with Breast Caocer Awarones;s pins for use on Denim Day. A group of te:tvlros". ltJStmmre t'XtY:utiVI's 11nd members of til<' s/N.'rln8 commJ/tee for rile month's accJvltJI'S llll' photographed from 161 ro rlglu: l#ndall Smlrll, Pmidrnt, Lifio of Barb8tfos: Alire MusgroVt!. St>cretary. BAL/-11; Gilbert Williams, British Amerlcanlnsumnce; Dr. Roger Brown, Co-ordinator of B11hamas General lnsUlrrs Associallon (BGIA) and Co-clmJrpt'ncn of tl1e Steering Commltt<-e: Lynda Gibson, President of 'fl1e Bahamas Assocla/Jon for Life and Health Insurers (BALHJ) : Cardinal McCardy. ca-chalmtan of the steering conm1Jttee; Sir OrviliP Llntff/ /r 18rh of r/Je populnr show "Your and Your Money hosted by Cmig Tony Comez. The addressed fssui'S wen related to t11e ll'fllllatory rondltlons of Industry, clarlfictJtlon of rcrmlnologlcs widely used In the ltJSurnnre lndusuy and the roles of the various associations In rlw overall deve/opmmt of the industry. Photographed from ldlto 1igbt are: Mr. Gomez: Do!aney. Deputy Dlrrcror of the Natlon81 JJJsuranre Board. Lynda Gibson. Pres/dent of Bahamas Assoclaliou of Lik and Health lrmm:n and P11trlck W.m:i, C/1/Jlnnau of The Ba!uJJJIIJJ General Assoclaliun GREETINGS ON BEHALF OF THE PRESIDENT-Allt:J' Rolle, Srrtary Bahama AfSOCiatlon of Life and Heairll lnsum'S bought gff'('tJngr on IH!half of prrsldenr Lynda Gibson to a group of lnsunmce profrNloniJls gdthcml at a Tllanlaglvlng &rvJce ar CalvOJy Bible Churr!J co 1,1unch lnsunmcv Montl1. Precious Pearls enjoy a delightful afternoon with Insurance Professionals In keeping with Jnsumnce month, Jnsumntt' profesrtonal.t ttl'atod t11e e/duly of rhP community to 8 Junrhron at the Holy Crosr Community Cl'ftter. Membt>n of the committee pas; with two of t11c spedalguc'Sts Jn tJ.Ils p/Joto PJctttrt!d kom left to right are: Cyril Peete. of Stllr Insurance. Mary Hall Aller Rolle. Secretary of BAHLJ Franci/IJ Mtmnings and Cmdln(l/ NfcCardy. co-chaJrm8n of the $feerlng conunlttl'l'. &rli wvmen are from the Mary lr1graham Center. ONE DAY AT A TIME MMJr. GF1fl>s of lmpt'rM Llk Fbmnci,11 in Abaro rendered 8 rev/sed vrnlon of the old time gospel favourite- One day ar a titflf' )PSI IS" t>SperlnUy for Ills lnsumnt:l' comrades in attendilnce ar tho ThartqrJvlng &rvlre launching Jnwrantt' m1111t11. ............... ................. ............................................... .. ....................... 12 J

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"Ce/ebratinl! Centuries of Service" ......... -................................................................................. ............... .. THANKGIVING SERVICE LAUNCHES INSURANCE MONTH lnsurance agents and executives o f 10. 20, 30 and 40 years in the business gathered for a Service of T h anksgiving to laun c h Ins urance Month on October 1 st. and were t o l d by Pastor L ee, senior pastor at Calvary Bible Church that the best type of insurance a person ca n h ave Is abso lut e l y free o f c har ge". H e warn e d the insuran ce prof essio nal s gathe r e d that "A Category Five Hurricane is ve r y powerfu l bu t yo u don't know what it is to fall lnlo the hands of an angry God, C hairman o f the Bahamas Genera l Insu r ers Associallon (BGIA) P atric k Ward said that the month r e presents "an unpre c edented coming tog e ther of public and private sector bod i es for t he purpose of promoting pro f essio n alism, creati n g awa r e ness of im portant business Issu es, assessing futur e trends and encouraging f ellows hip, which ca n be red u ced to a si n g l e word ... edu ca lion ". He told his ins uran ce co m rades t hat thi s educati o nal opportuni ty will help t h e m to achieve greate r l eve l productivity, help con s um ers with the compl exities of t h e ir businesses and a further appreciation of t h eir issues and con ce rns by regulatory bodJes. Allee Roll e, Sec retary of the B a hamas Association of Life and H ea l t h Insurers (BALHI) bought greet in gs o n b e h alf of president L y nda Gibson who was unabl e lo altend. The insurance professi onals t oo k part In the serv i ce and many mus i cal talents were disp l ayed Performances in cluded so ulful renditions by Melonie Huyl e r of Colin a I nsurance company, and Mark Gates of Impe rial Life Financial in Abaco I .rt PAAA.<;.f:y m_ A A l AC-.ENI.":,. l tn automobile home/ contents fire & perils business ins. boat & marine elife medical aviation Tel: 325-6724 or 322-1910 Fax: 322-6970 Shirley St. & Shirley Pk Ave; Premium Financing Available P.O.Box FH 14584 Nassau Bahamas SPEAKERS AND TOPICS DISCUSSED AT THE THREE-DAY CONFERENCE FOR INSURANCE PROFESSIONALS HELD OCTOBER 27-29TH Agatha Marcelle Technology of Service . = ( Senator Sidney Collie Everybody needs a Will 1 1 Rev. Dr. Myles Munroe World Class Leadership in Purpose Dr. Colin Archer Messages from The Heart 1,, __ :\ . \ :i1 _ Michael Pintard How to Deliver Quality Customer Service Dr. D. Paul Reilly Nothing happens until Someone Sells Something -, "' __ : -I \ ,_._' td. 1 . \ I t:1 '_ Dr. Rex Major Accepting Social and Civic R esponsibility 13

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Insurance Month '99 Why Insurance? Patricia Glinton-Melcholas Life Is ful l of perU and risks. How people deal with this challenging fact of life. varies from Individual to individual. from cultur e to culture. Some may believe that the best way t o d eal with the future Is t o pay lots of money t o psychics. carr y h orses hoe s. four l eaf clover or oth e r Items they consider "lucky". The more reasonable among us c h oose to l ead lives as h ealthy and well ordered as possible and buy insurance to cover the economic risks that we cannot predict o r control. The foundations of insurance as we know it today have been around since the days when Phoeni c ian seafarers controlled the trade of the known world and sur ely the concept ex i sted In elemental fo rms long b efo r e then. Insurance was c r eate d to provide economic protection In case o f d eat h Illn ess, disability or accident The Insurance policy Is the l egally binding contract that tell s the policy holder and other Interested partJes of the obliga tions the Insurance company ha s towards policy holder s In lhc event of Ulness. acciden t or disability or towards their beneficiaries when lhe Insured parties die. All forms o f Insurance : life. health. accident, property and c asua lty arc based on fab-ly slmple conce pts. Two o f the most fundamental a re the pooling the resources of a l arge group and spreadin g risks and l osses ove r the same group. so as to minimize the losses of any single Individua l and maxlmlze his or her resources Bahamians ha ve long been fam lllar with the pooling of the relatively mod11st resources In the form of asu This African c ustom brings t ogether a g r oup of family members, friends or colleagues to crea t e a large pool of funds that a member might ne ed at a particular time but could not accumulate himself at s hort notice without h e lp The most basic concept underlying Life and h eald 1 Insurance is that human life has an eco nomic va lue. The Life and Health Insur ance M anua l published by Dearborn Financial Institute has this to say about this factor: I t h as long been rccognt ze d that Individuals have an eco nomi c value d1at can be measured In part by their future earning potential. This earning potenti al Is the sum of one's net future earnings or, mor e preci se ly. the dollar value of an Ind i vidual's future earning ca pabilit y The true significance of this earning potential ex t ends b eyond the individua l to those who d epend on him or h e r for their financial security Thus, by d efi nition human Ufe Is the value today of an Individual's future earni ngs that are devoted to hJs o r her d ependents Human lif e va lu e Is the basis for purchasing homes, paying for college educations. honou. ring monthly bills It therefore Is fundamental to the quality of lif e of famllles and individuals. It goes without saying that value is vulnerab l e to death retirement, disability or poor h ealth Any one o f d1ese perUs affe c ts earning capac ity to one degree o r another and, consequently reduces human life value and Its ability to underwrite the essentials of a dignifie d lif e It Is for Lhis purpos e-to conserve and protect huma.n lif e value -that life and health Insurance exist. [n t h e case of Insurance, all the members of the group co uld not possibly b e known to eac h oth er as they may number Ln the hundreds, thousands or even millions But the regular premiums paid by each one of the Insured creates a large pool of funds to which m e mbers h ave access according to the nature of the insurance contract rhey h old. With care ful investment and management of pooled funds. Insurance co mpani es can guarantee policyholders that money wLll be there to help them deal successfully with the high costs of death, illne ss and various forms o f loss. Actuaries are a s p ecial type o f statistician who use the science of probability and the experience o f statist i cs of death and sickness to make very accurate predictions about the r isks of the va riou s groups of peop l e a company Insures. With their h elp, the Insurance company Is better ab l e t o manage funds entrusted to It for the benefit of all policyholders and other cons titu ents Life isn l a matter of milestones, btu of moments. HA'\AU "*1 M I (lAY S'tRtll' 3IJ be (.;f)UJfi S ,AYlNUtl. JJ2.Jtl"a F P U rf)Rt, QVH N S 111(".H WA'. 3SMt!9, < 14

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t-... ............... .. ..... -.-......... Insurance I. Q. continued from page 5 (written or oral) which remains in effect until replaced by a regular policy. cash value. The amount of insurance payable to a policyholder who discontinues a life insurance policy. coverage. The protection provided by insurance credit life insurance. Term life insurance issued through a lender to cover payment of a loan if the borrower dies. deductible (clause). A policy provision stating that a specified amount will be deducted from covered losses dividend. A partia l return of prem i um, reflecting the difference between the premium charged and the amount needed in the light of the company's expe r ience. endowment insurance. Life insura n ce payable to the insured if he o r she is li vi n g on the maturity date s t ated i n t h e po l icy, o r t o a beneficiary if the insured di es before that date. e xclusions. Pro v isi o n s t h at exp li c itl y l imit the coverage provided b y a p olicy. grace period. A p eriod o f t i m e f o llowin g the date the p r emium Is d ue, duri n g wh ich a po li cy remains in force even though t h e premium has not been paid. gro u p i nsurance. Any Insura n ce plan that covers a number of ind i viduals under a single contract. It is typically issued to an employer fo r the benefit of employees guaranteed insurability A life insurance policy provision permitting the purchase of additional insurance at stated times regardless of the condition of the insured person's health liability insurance. Covers the liability risk Provides legal defense and pays sums necessary to settle claims against the insured nonparticipating insurance. Insurance provided by policies on which policy dividends are not payable. participating insurance. Insurance provided by policies on which dividends are payable to policyholders. p olicy loa n A loan made by a life insurance company to a policyho lder on the security of a po l icy's cash va l ue. settlement options. Th e ways, ot her than imm ed iate pay m e nt i n cash in whic h a life i ns u ra n ce policyho ld er or bene f ic i ary may c h oose t o h ave poli c y b e n e f i t s p ai d straight life. Wh o le li f e in s ur ance o n w hich pr e m i um s are payable for l i fe. subrogation. A legal principle which provides t h at t o the exte n t an insurer has paid for a loss t h e insurer obtains the r i ght to recover from any thi r d party who caused the loss. term life insurance. Life i n surance payable to a beneficiary when the insured dies within a specified period If the insured is living at the end of the period, the policy expires without value underwriting. The process by which insurers decide which loss exposures to insu re and how to insur e th e m waiting period. In disability income Insurance the period o f time between the beginning of a d i sability and the date that the policy's income payments begin. waiver of premium. A life or health insurance policy provision stating that premium s will not be charged if the insured becomes totally and permanently disabled whole lif e insurance. Life insurance payab le to a beneficiary at the death of the policyholder, whenever that occurs. Premiums may be p ayab l e for a specific number of years (li mited payment life) or for li f e (st r aight li f e). Life Insurance is really for the living. In tod a y' s fas t paced world, our families are growing up faster, and with their g rowth and m a turity c omes the added responsibility of us parents to care and he l p p lan for tlieir future. That s why, we at Co l ina Insuran c e have dedicated ourse lves to providing a wide choice of i n sura n c e retirement and investment solutions. After all. .. we 're parents tool Colina Insurance provides a variety of income protection products such as whol e life, co nvertibl e term life, endowment plans and personal accident coverage. T o tal f inancial planning performance isn t just about using your money wisely today, it's a bout mak i n g 1t grow Tor tomorrow. So don't let your fami r y become a casual ty of poor p11anni!"g to Colina Insur ance for the type of advice you need t o provide for you r finan c tal sec un t y COLINA INSURA N C E COMPAN Y W Provldtng solutions for your jinancfal s e curit y Collna ln sura n Company ltd 12 \ll l lage load P 0 Bnx N-41l8 Nassau. The Bahamas Tel: 393 2124 Fa.x: 393t 71 0 N assau F reeport /\1<1"--IW! ()f 15 '_;t

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Insurance Month '99 I ..._ 16 In fact. in our business old age is a v e ry good thing! British American Insurance Company first opened its doors for business in 1920. Back then we werP the only Horne Setvlce insurance Company offering a weekly premium payment plan to Bahamians. And almost everyone had a British American endowment plan for their children's education. We've watched and helped generations of Bahamia 115 growl We were there then and were still here nowl Our "old age" translates into that experience that has, mad> us the solid company we are today. Whether It's paying for your child's education. Investing in a mortgage, providing you and loved ones with medical insurance or building a nest egg for the future, we are there to make your life eas.ler and more secure And, we're heading into the new millennium with a philosophy we've had since 1920: "To protect and enhance the assets of our customers mutual benefit. .. Look to Brl American Insurance Company. lm BRITISH AMERICAN INSURANCE "A strong llnlc Jn your DnandaJfUhJre II British American lnslii1U1Ce Company of The Bahamas Tel: (242) 361-2500 Fax: (242) 361-2528

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''Celebratinu Centuries of Service" SOME ASPECTS OF INSURANCE REGULATION IN THE BAHAMAS Profiles of Registrars continued from 7 Mr Munnlngs has over 3 0 years professional accounting exp erience. the l ast 12 of w h ich he served as a par t n er with the auditlng firm of KPMG Bah am a s By Tel:tena Coakley Formal r eg u l ation of the Ins u rance Industry In The Baham as began with t h e intr oducti o n o f the I nsurance Act 1969. Since the n the Cabinet Minist er u l timate l y respo n s ib l e for insurance h as been the Minist e r of Finance. and the da y to da y oversight/regu l ation of the Indu stry h as b ee n carr i e d out by the s taff of the Office o f the Registra r o f Insura n ce Companies (ORI C). T he h ead of thi s office Is called t h e R egistrar of Insurance Companies. The mos t recent dra ft of the n ew Insu r ance Act indicates that regulation will b e by a corporatio n so l e ly ca ll ed the Superinte ndent of Insuran ce. Cur re ntly. however. the Registrar of Insura n ce is a pubUc officer appoin t e d by the Governor Gen e ral ac tin g In accor dan ce with the advice of th e Publi c Service Comm iss ion H e/s h e is respons i b l e for the a dministr atio n of t h e Ins uran c e Act 1969 and for tl1e sta bility, equ l ty a nd effic i en c y In the con du c t of In s u rance busi ness In The Ballamas subject t o th e direc tion of the Mini ster. fn o n e way or a n othe r a ll kind s of bus i n ess activity I s Influenced by governme ntal agenc i es In areas s u c h as licensi n g, emp loym ent practices, sa f ety and sa nita tion sta ndard s T h ere are however severa l k ind s of bu sinesses which ar e more strictly r egu l a t e d/supervise d than others T hese more stri ctly r eg ul ated b u s iness ac ti vities I nc l ude tho s e In t h e financia l serv i ce s se ctor s u c h as bank s trust com p a nl es, sec urities and Insu ranc e companies Insuran ce m ust be regulated by the n at i o n a l government because It I s a financial lndustry and one vested ln public Int e r est/ n eed and p ubli c trust. Everything must be done. the ref o re to preven t abuses within t h e Industry H e n ce, the maln objective o f insurance r egulation h ere. as elsew h ere, I s to pr o t ec t an d promote the publi c welfare b y ens urin g that insurers br o k ers and agents o p e r ate as viab l e and sol vent busln esses with fit and proper management. T h e R egis trar of Ins urance must among oth e r things ens u re tha t eac h Insurance compan y has a d e quate ca pit a l and sur plu s funds as r equlred b y law even b e for e It is allo w e d t o star t o p e r ating. The n h e/s h e mu s t requi r e it to malntaln an1pl e r eserves ( cas h o r near cas h) t o be able to pa y claims whenever the y come due. So r egu lation is ca r ried out w ithin the scope of the Act, b y registerlng monitoring and d e r egis t e rin g compani es or indi v i d uals as necessary for t h e publi c good. R eg ist ere d in The Ballama s at]une 30, 1 999 w as a total of 5 3 In s u rers coverin g risks w i thin the co untry -18 carry in g o n lif e and health business and 35 handllng prop erty and cas ua l ty risks Additionally there are 29 registe r e d externa l Insurers, 48 agencies, brok ers/agents and brokers, 10 Insu r a n ce man agers and mo r e than I .20 0 li ce n sed Insurance salespersons Every Mr Munnlngs se rved o n several com mi ttees o f B I CA and was also I ts Sec r etary for a few years H e was also a former Commodore of Bahamas Air Sea Rescue A ssoc iation (BASRA). p as t Director and Tre asurer of the Rotary C lub of W est Nassau and the Bahamas Association for the M enta lly R etarde d Mr Munnings a R oman C atholi c, serve d tw o t e rms on the Catholi c Education Board Mr Munnlngs Is a Dir ector of the Bank of The Baham as and member o f the Bahamas Securities Commiss ion. Celebrating Centuries c ontinued from 5 arc h ipelago and e l se wh ere P l ans ar e in the makin g for member com panies to demonstrate their concern and the bond that t h ey feel with everyo n e who h as suffe r ed l osses In a practical way. For further i nformation please co ntact: Roger Brown 323-2 597 Fax 328 -4 354 or Telzena Coak ley, 395-0956 Fax 394-6082 For those you care about most ... family will S ing hymns o n Sundays Ce l ebrate a birthday C hang e the ir address Prepare for a hurrican e Visit the emergency room Lakeview Memorial GARDENS & MAUSOLEUMS John F K enne dy Drive, POBox CB-13773 Nassau Bahamas (242) 32372 44 fax (242) 323 -72 43 Comfort the baby Watch TV togeth Lose a l ove d ontf f1t -IE A 0 & COLLINS AVENU E 322-2341 THOMPSON BLVD. 325-8776 FREEPORT 352-7119 MARSH HARBOUR 367-2688 . 17

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Insurance Month '99 18 The 6th Annual Many of our partners have already signed up t n support Chela Tech CIBC Commonwealth Bank Insurance Management Kingdom Builders McKinney Bancroft and Hughes National insurance Board United European Bank & Trust and more .. Imperial Life Financial AmerlcanA!!Ps Amertcantrr The official airline of the Red Ribbon Ban. The o.!Jkial sponsor of table prizes for the Red Ribbon Ball Listen, Learn and Live z on Under the distinguished patronage of Prime Mini s ter Rt Hon. Jlubert Ingraham and Mrs Delotes Ingraham Saturday, Novetnber 13, 1!)99 Radisson Cable Beach Resort SJKmsored by Imperial Life Ft11811Cial Net proceeds to benefit the AIDS Foundation of The Bahatnas Prl%BS 1. Round-trip tickets for 2 to Hawaii American.AnneS' donated by MtetbnfofN 2. Round-trip tickets for 2 to Rio de janeiro, donated by 3. Round-trip tickets for 2 to Long Beach Califontia plus Hotel Accommodations at the Marriott Hotel donated by Nassau Marriott Resort & C1ystal Palace Casino. 4 Round-tt'ip tickets for 2 to jamaica, donated by plus hotel accommodations at Grand Lido, donated by Bt'eezes SuperClubs. 5. Round-trip tickets for 2 to Mexico, donated by 6. 14-Carat Diamond and Sapphire bracelet donated kY M Fondas jewelers. Tickets are available at the Imperial life Centre, Collins Avenue. Stop by or call Ms Samantha Lockhart 356-8304 for mo r e information

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"Ce! e br ati nf{ Cen tw'ies o f S e rvice" Some Important Dates in Insurance in The Bahamas Compiled by Pa t ricia GlintonM e i c h o las 1791 Llo yd's of London was insu r in g vesse l s against shipwreck I n the Bah a m a I s l ands 1800s Bay Streel m e r chants sol d insurance po li cies for n o n resid ent i nsuran ce com panies Slr c h as North ern Fire and Life Assura n ce Compa n y of London and Sun Life of Ca r)ada an ac llvlt y that was p eriphe r a l to thei r ma i n businesses There seemed t o be no dedi ca ted Insur anc e opera tlons h ere 1 805 The Roya l & Sun Alliance first b ega n 11 relationship with The Bahamas in 1805 when one o f it s antecedents, Sun, app o int e d a Mr Bain as Its agent In Nassau [n the years followin g. var io u s ge n e r a l in su r a n ce agen t s so ld business for the c ompany Sun Life of C anada was probably the first Insuranc e company to mai ntain ongo ing n e w s paper advertising In it s own name and many of them can b e seen In the Nassa u Guar d ian around rh e turn o f t h e century. On Janua r y l 1992. this long re l ationshi p rea c h e d a hi g h point with the es t ablJshment of Roy a l & Sun Alliance (Baham as) Limit ed, the first operating subs idiary in this country. 1899 The o ldest In s urance company In co n tinuous o p e r a tion in t hese I s l ands, Imp e ria l Life Finan cial came to the Bahamas when its parent company. the the n three year o ld Imperia l Lif e A ss uran ce Company o f Canad a, granted a gene ral agency contract t o Thomas Hilton C h eesbo rough Lofth ouse a Nassau draper and outfitter, a nd hls so n C harl es o n Augu s t 30, 1899 I mperi a l Lif e was t o be the tra i ning grounds f o r some of the nation 's nnest insur a n ce professionals tn o ludtn g T. Dan A lbury, Gregory Sweeting, C har l es "E d' Thomp son, Tap p y Davi s and Keith M ajo r Hired by the compan y In 19 3 1. j Whitney Pinder wUI probabl y h o ld the Insuranc e emp l oyee record of all lime. ln 1999 h e celebrat ed 68 years of association with th e compan y 1 9 1 9 The J.S. J o hn son Company, which had been In t:xistenc e s ince the mld l800s. ent e r ed the Insur ance bu s i ness in thi s year The com pany was l ater to become one of lh e first priv a t e l y owne d local businesses to off er pu bil e s h ares. 1920 The s econd o ld es t in s uran ce co mpany In c ontinuous o p e r a tion In the B ahamas, British American ins uran ce, c omes to this country. 1954 S t a r Insuranc e Comp any, th e o ld est I n digenou s Insura n c e compru1y was begu n as Star L ife by Baham i ans. A r gus Ins u ra n ce Company of Bermuda acquired t h e business In 1966 I n 1981 Argus p e r mitted Its Bahamia n st aff. led b y senio r mana g ers S h ervin T h ompson ]. M Pinder and Herb ert Thompson to pur c h as e a co n trolling inte r est. Thompso n w as appoint e d presi d ent and hi s partners vice presid e n ts. 1965 Indigeno u s entity of l o n g s tandin g, Famil y Guardian Insurance was l aunc hed by Roscow P y f rom Arthur J ac k Kn ow les and Norbert Boi ss i e r e. C r ow n L ife a l so be ga n operat in g h ere In 1965 under th e l eade r s hip of jlm Muirhead wit h Noel Pinder ( d eceased) a nd S h earer as agents 1 9 6 6 Nassau Un d erwri t e r s comes into bein g 1 9 6 9 The Insuran ce Act was pa ssed t o regulat e the Industry, and the office of Registrru of In sura n ce was crea ted as ove r see r C h a rles A. Donald son was the first t o occu p y the p ost. T h e Act came into eJfect June 1 1 970. 197 2 National Insuran ce A c t was passed and thll National Insuran ce Scheme run by an 11 member Natio n a l insuran ce Board came Into b e ing o n October 7 1974 I t Is a public p r ogramme t o whi c h employees, empl oyers and se l f employed persons contribute to prov id e s i c kness mate rnity Ind u strial Injury death retirement and surv i vors be n efits to emp l oye d pe rsons Or, where r e levant their benefi ciaries. 197 4 1n this year gross income from insuran ce premium s reached 8$36. 7 mill lo n Continued on page 21 ]:fOFFICE Prince Chartes Center 394-MEDI" /394-8028 Fax: 394-8028 3217438 #113 Collins Avenue Phone 325-1649 to 10p. m . eve[Yday, ;incJuding holidays NO APPOINTMEII'I'NECESSARY YoWJnswer to C o mpassionate Cata IN CL U DE: o Minor Emtrgtnolu o Rtpelr of Ltetrattoni/Qutt o TNttmlftt of Food Polaon/nga o Althmt Trttlmtnt o Alltrglc o Skin Probttmt o D/fpwlnt Sttviat o Rtfttral SlfWctl Avtlt.blt o Homt Vflltt (Atrattgttl) o On Call Sf#'VIt:e (tfttt offiCe hotlrt) o /Jtalc Labotttoty Strilctt o Ol.,.oattc: ECG, tlltl'laovnd Colpmopy o Ptdittrlc PI'Obltmt/ trnmunllttlonl o Routine Mtdiat/SUIJiot.l Probltml o Minor $u1QfCII Procedv m o Complett Emnlnttlon o Httlttt Ctrtitlt:etH o smoot, Joo a spone o High BlOOd Pmtuft/DIIIbetlc SCIHitlng et o Pftontncy Ttatillf/Pip SmNI'I 0 Probltma In Elfl1 o Connctptlve o Nutrtflon/Oftt Co.unatlllng 0 Wtitht Rtductfott ,.,.,.,.. ................................... .......................................................................... 1 9

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. . Insurance Month 99 The Bahamian OWned General Insurance Company NaS5Ciu Authorized Agents : Bethel11tompson Age.-.cy No .. 20 Shirtey Plaza, FO Box N-1688 Cole Agency Ud. 33 Colins Ave. PO Box N-121 or N-1127 Confidence Insurance Brolc:ers & Agents lid. Shirley & ChuR:h Streets, PO Box SS-6253 Cieneral Broken & Agents IJd. G .. BA Hou5e, Collins Ave. PO Box 55-6167 Moseley Burnside Insurance Agency lid. Pilot 'House, fast lay St. PO Box N-7 501 Nassav Underwtilers Agency Ltd. 3rd Tetroca, Collins Ave. PO !Box N-4870 Star Generallnsunmce Agency ltd. Marathon 'Roact PO Box N-11 08 rreefX!rl Authorized Agents : General Brokers & Agents ... Suite 5 Arcade Bldg. PO Box f 4 1372 Nassau Underwa ilets Agency Suite 3 RUbo Plaza, 1.40 MacKenzie Sf. PO Box f -42211 Tel: 394-7251/2 Fax: 394-7158 Tel: 356-7800 Fax: 326566 3 Tel: 323-6 920 Fax: 325-8.i86 Tel: 322-1871 Fax: 326-6585 Tel:394-8305/8 Fax: 394-8309 Tel: 328-5992/3 Fax: 328-597.4 Tel: 393-5529 Fax: 393-8722 Tel: 352-7891 Fax: 352-7764 Tel: 352-2018 Fax: 352-525.4 ::::::ahamas/ 326-5439 or 326-5447 93 Collins Avenue and 7th TerraGe Box N-1216 Nassau, N P Bahamas Fax: (242) 326.-5472 20

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-"' \.. "Ce/Pbrati n u CenttJri e s nf C::e rvice" -. $ o Imp ortant Insurance Dates continue d from page 1 9 Bahamas Association of Life and Hea l t h I nsurers formed. 1975 By January 1 of this year, t11ere were 83 register e d Insurance companies in the Bahamas, 37 regiStered agents and 25 regist e red brokers. Bahamas Government announces plaru. to attract captive insurance business to the Bal1amas Bahamas Genera l lnsur ers Association formed In May. The following were members of the original Stet' ring Committee: APD Tony Lancaster. Home l nsurance Company (Chairman} Rober t Hardy (Treasurer) Quentin S Chtsnall, NUA (Secreta ry) Mrs. Orlnthl a Nesbitt. GBA David Rey n o ld s, Royal Su n Allia nce I nsu r a n ce Compan y All e n McGill j. S johnson Duncan M c Lean. Cari b Insu r ance Agency Lt d. 1983 T h e Exter nal Insurance Act Is passed t o reg u l ate registratio n of the captive Insurance Ind u s t ry of the Bahamas. The Act al l ows external Insurers to underwrite business from outsi de this country. 1984 By the end of 1984, 54 entitles, six of them Bahamian, were licensed to write local insul'liJ'lce business. There were 26 Gross l ocal premiums reached 8$110.4 mUIIon 1985 ]. S. johnson Co. Ltd was the nrst of the Insurance companies lo offer publlcly 1993 With three exper i enced Bahamians at t h e helm Oames Campbell, Gregory Sweeting and P hillip Russell), Globa l Life Assu rance Ba h amas Ltd ., a Balla rnlan entity was forme d and acquired t h e Bah a m ian b usin ess o f G lobal Cayman, whic h i ncluded the portfolios of Manufacturers Life Insurance Company of Canad a ( Manu life) and Domin ion L ife Ass u ra nce Compa n y (Domin i o n Lif e). T h e I aUe r company h ad been a f o r ce I n the l ocal Insuran ce industry si nce the rnld 20th century, but was eventua ll y a b so r be d b y M anulife G l o b a l a l s o a cquire d the lif e Insurance b us i n ess o f Allco. 1995 Glo b a l Life went p ubli c Also In 1995. A tl a nti c M e d ica l I nsu ran ce Limited, At C r o wn Life o ur bu siness is pl annin g features. S ince w e began business in t h e Baham a s l n 1962, we h a v e assisted t h o usand s o f B al1amia n s with the ir p e r sona l fin a n c i a l pl a nning. Our career Ag ents and Broker s l n Nass a u and Free port m a rket C rown product s tllroughout th e Bah ama s providing a full rang e of financial and insur a nce p r odu c t s produ c t s th a t a r e innovative a n d provide v a lue for our c ustom ers. We a r e one of t h e N orth Am e ri c a's l e adi n g ins ur a nce comp anies with a trac k r e c ord of i n nov a tio n and success. W e i n v ite you to c ontact o u r agen t s to see how Crown Life can h e lp you pl a n for a secur e and r e warding future. owned by Colonial Insuran ce of Bermuda. purch a$ed the Travelers block of business, which had been operating In the Bahamas for 28 years. 1997 Bahan1as First f loldlngs was formed Creating some major changes In the general Insurance picture of the Bahamas. thl' company subsequently acquired several old and wellknown Insuran ce agencies as subsidiaries, Including Nassau Underwrit e rs and T. Dan Albury Peter Cole & Associates, Basil Burnside and E 0 Moseley The !alter four agencies wer e grouped to formed two new entitles : Cole Albury Insurance Agency and Mosele y Burnside lnsurance Agency 1998 By the end of this year, there were 72 Insurers li cense d t o operate in the local marke t of w hich I 0 were Bahamian entities. There w ere 19 age n ts, 28 broker/age n ts and 4 brokers. I n this sam e year, Fam il y Guardian Insurance offe r ed shares t o the p u blic. 1999 B y this yea r a n ew Insura nce Act h a d bee n d r aft e d and was a w a i ti n g co n s id eratio n b e fore P arlian1ent. Sh a ring i n Committe d to Service!! -Crown R o setta & Brad l ey Palmdal e Nassa u P.O Box N-4 9 4 3 Tel : (242) 322-7561 R egenl Cen t r e F reeport Grand Ba h a m a P.O. Box F-2622 Tel: (2 4 2) 3529 703 21 .... .;

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Insurance Mond1 '99 ........ -@C APITAL LIFE lftauranc:e Company Umited ...... '* ..._.......,._, (UJO LTD cu lt .... lt . t P.O. ,.. .............. Toh b4) JaYJ4s I' (ll.411) P,_.SU M.,.kr ef n.. Mlllul OHM, Trust When you're trying t o your financial it1s importa.Qt to have someon e yQu can trust. And you can trust Capital Life. As a member of The Mutual group of companies who've been providing financial solutions with a w ide range of insurance and investment produ cts and services for over 150 years. However, what we celebn1te ll,lost is confidence. Because when you're confident in your future you can do almost anything! Call Capital Life to learn more about Capital Life's products and ser-vices and find out how we can help you your financial future _, i ... t , . . 2 2

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Celebrating Centuries of Insurance Services Security & General INSURANCE Call: 326--7100 Personal Commercial Home Business Options Contents Contractors Risks Motor Motor Marine Marine Come and visit us on the second floor of Atlantic House, 2nd Tenace East & Collins Avenue We are also represented by the largest agency network in the Bahamas ... Advantage Insurance Brokers & Agents Ltd. 326-4978 Bahamas Insurance Brokers & Agents Ltd 356 -6482 BahaLnas Ins urance Services L td. 356-3155 Bahatnas Life & Property Insurance Agency Ltd. East St: 356-0680 WulffRd: 323-1334 Fred Ran1sey (General In surance) Agency L td. 325-6724 General Brokers and Agents Ltd. 322-1871 KAP Insu rance Agents and Brokers Ltd. 322-4159 Sunshine In s urance (Agents & Brokers) Ltd. 394-0011 Vaughn L. Cuhner & Associates Ltd. 356-0159 Security & General Insurance Company Limited House 2nd Terrace East & Collins Avenue, P.O. Box N3540, Nassau, The Bahamas '--.,

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.... THE FUTURE OF GROUP HEALTH INSURANCE IN THE BAHAMAS HAS ALREADY ARRIVED ... ... Pr e mier Health from Atlantic M edic al As time inevitably moves on and The Bahamas approaches a new century, what should you expect of your group health insurance provider? More of the same or more innovation, better care and higher levels of service? At Atlantic Medical our mission is simple. We will continue to lead the field in providing the best care available at home or overseas. So, if you're looking forward to a future that includes even higher standards of health care and service it's already arrived, in the shape of Premier Health from Atlantic Medical. Atlantic Medical -ATLAN T I C MEDICAL INSURANCE LIMI TED NASSAU: ATLANTI C HOUSE 2ND TERRACE & COLLINS AVE. NASSAU TEL. 326-8191/8 GROUP HEALTII INSURANCE care you deserve FREEPORT : 6 REGENT CENTRE WEST EXPLORERS WAY PO BOX F-42655 FREEPORT GRAND BAHAMA TEL. 351-3960