Fotherington Insurance Group
a Second Life company
a Second Life company
INSURANCE - FAQ
1. how does the insurance for listed companies work?
i will insure your shares in listed companies for a period of time for a small fee paid in advance. if the company ceases to trade on the exchange due to insolvency or fraud then i give you the amount you insured and you hand over to me the share certificates equal to the amount covered (which will be worthless).
2. Give me an example?
ok, lets assume you own 10,000 shares in ABC company listed on the ISE, current price is L$1. you decide to take out the maximim coverage from me which is (say) L$5000 and the fee is 0.25% per week. therefore, you give me L$12 (=5000*0.25$) each week and i cover 5,000 shares that week. each week you decide to renew the insurance for L$5000 and i therefore cover a number of shares equal to L$5000 in value. the number of shares covered would equal L$5000 divided by the price when you pay me the fee. Now lets assume the company collapses due to fraud and the CEO disappears and the ISE declares the company shares halted due to fraud. after a period lasting no longer than seven days i will pay you L$5000 and take whatever number of shares were insured that week from you.
3. What is the ISE deposit insurance
i will insure your deposits at the ISE against the ISE not being able to pay them back.
4. It says L$5000 max per avatar. is that max per company per avatar?
yes. therefore, one avatar could buy insurance for multiple companies.
5. can i buy insurance if i do not hold the shares in a company?
technically yes. but, before i pay the insurance in the event of default then i will need proof that you are a shareholder. this is to protect me against fraud and to allow me to collect the share certificates.
6. what assurance do i have that you will pay?
details to come, but the assurance is in two parts. firstly, i will have sufficient cash held on avatars to cover the 4 largest exposures. secondly, i will have cash deposited with independent third parties to cover my largest exposure. this third party will pay out if i dissappear.
7. how do i buy the insurance?
PM me ingame (Percy Fotherington) or email me at pfotherington@googlemail.com
i will insure your shares in listed companies for a period of time for a small fee paid in advance. if the company ceases to trade on the exchange due to insolvency or fraud then i give you the amount you insured and you hand over to me the share certificates equal to the amount covered (which will be worthless).
2. Give me an example?
ok, lets assume you own 10,000 shares in ABC company listed on the ISE, current price is L$1. you decide to take out the maximim coverage from me which is (say) L$5000 and the fee is 0.25% per week. therefore, you give me L$12 (=5000*0.25$) each week and i cover 5,000 shares that week. each week you decide to renew the insurance for L$5000 and i therefore cover a number of shares equal to L$5000 in value. the number of shares covered would equal L$5000 divided by the price when you pay me the fee. Now lets assume the company collapses due to fraud and the CEO disappears and the ISE declares the company shares halted due to fraud. after a period lasting no longer than seven days i will pay you L$5000 and take whatever number of shares were insured that week from you.
3. What is the ISE deposit insurance
i will insure your deposits at the ISE against the ISE not being able to pay them back.
4. It says L$5000 max per avatar. is that max per company per avatar?
yes. therefore, one avatar could buy insurance for multiple companies.
5. can i buy insurance if i do not hold the shares in a company?
technically yes. but, before i pay the insurance in the event of default then i will need proof that you are a shareholder. this is to protect me against fraud and to allow me to collect the share certificates.
6. what assurance do i have that you will pay?
details to come, but the assurance is in two parts. firstly, i will have sufficient cash held on avatars to cover the 4 largest exposures. secondly, i will have cash deposited with independent third parties to cover my largest exposure. this third party will pay out if i dissappear.
7. how do i buy the insurance?
PM me ingame (Percy Fotherington) or email me at pfotherington@googlemail.com
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