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  • The essence of technology that business managers should know

    The essence of technology that business managers should know

    In today’s world, it is essential for business managers to understand technology. However, the scope of technology is vast, and there is no need to know every last detail. What business managers need to understand is the essence of technology.

    By knowing what technology is, what technological developments make it possible, and what technology cannot do, you will be able to deal with technology appropriately and, as a result, become a more profitable manager.

    Please note that the word “technology” in this article does not refer to IT only. Please read it as a word that refers to technology in a broad sense, including IT.

    table of contents

    What is technology?

    Technology is often translated into Japanese as “technique,” but “technique” has two meanings: “technology” and “art.” These two meanings are often confused, so let’s clarify them first.

    “Technology” is a written technique. It can also be said to be a technique that can be left to tools. If it is learned and remembered correctly, many people can use it.

    Many people think of “art” as “geijutsu” in Japanese, but it broadly means unwritten techniques. It can be said to be a technique that cannot be left to tools, or a masterful technique that can be called art. It also includes the intuition based on the personal sense, talent, and experience that is required to create “art.”

    The essence of technology is to “entrust human work (art) to tools.” Any technology creates value by “entrusting human work to tools.” In the past, many things were art, but as time went on, humans replaced art with technology.

    The journey of humans and technology

    Let’s look at some concrete examples of technology replacing human work, namely art, and creating value. Looking back at history, we can see that humans have an instinctual tendency to replace art with technology.

    Since prehistoric times, humans have relied on tools to perform various tasks. A very primitive example is the use of bows and arrows in hunting. Before humans invented bows and arrows, throwing stones or spears at prey was the means of long-distance attack.

    Humans have the ability to throw things better than any other animal. However, by inventing the bow and arrow, humans gained a means of long-distance attack that was better than throwing stones or spears. Humans revolutionized hunting by leaving the task of “throwing things” to the tool known as the bow and arrow.

    During the Industrial Revolution, which took place from the end of the 18th century to the beginning of the 19th century, the revolutionary power of the steam engine enabled machines to carry out a variety of tasks that had previously been performed by humans. One industry that is often cited as benefiting from the Industrial Revolution is the cotton spinning industry.

    Before the Industrial Revolution, cotton textiles were produced by hand, using looms. However, the steam engine made it possible to automate the operation of looms, dramatically increasing the productivity of cotton textiles.

    The IT revolution that began in the late 20th century and continues to this day also occurred because it became possible to “leave the task of processing information,” which was previously performed by humans, to a tool called a computer. The hunting revolution with bows and arrows, the Industrial Revolution, and the IT revolution are all essentially phenomena that occurred because it became possible to “leave the tasks that humans perform to tools.”

    Secom’s Technology Strategy

    An even more familiar example is Secom Co., Ltd. Today, Secom has become synonymous with mechanical security, but when it was founded in 1962 as Nihon Keibi Hosho Co., Ltd., it was a security company that dispatched patrol and resident security guards. The company gained trust by providing security for the athletes’ village at the 1964 Tokyo Olympics, and its patrol security business grew rapidly.

    Meanwhile, the company developed Japan’s first online safety system, “SP Alarm,” in 1966. This technology was a pioneer in machine security.

    Initially, sales of the “SP Alarm” were not good, but in 1969, three years after its development, the “SP Alarm” led to the arrest of the serial shooter No. 108, who had been causing public anxiety.

    Sensing the potential of this, Ryo Iida, founder of Nihon Security Service, decided to abolish patrol security services, which had been the core of the company’s security business, the following year in 1970. At the time, Nihon Security Service’s patrol security business accounted for approximately 80% of its sales. This was a decision to abandon a major source of sales, so naturally it was met with strong opposition from the company’s executives.

    As a result, however, mechanical security services grew dramatically as an alternative to patrol security services, and even today, after the company name changed from “Nihon Keibi Hosho” to “Secom,” the company remains the leader in security services in Japan.

    Mr. Iida, the founder of Secom, likely understood the true essence of technology, which is to leave things that can be done by tools to the tools, and for humans to focus on things that humans should deal with.

    The job of a security guard on patrol is to “discover abnormalities” in the area he patrols and to “deal with the abnormalities he discovers.” Of these two jobs, the “discovery of abnormalities” can be left to a tool called the “SP Alarm.” “Abnormal situations” can be clearly stated, such as glass being broken or a door being opened at a time when it shouldn’t be. This is truly technology.

    The other task of “dealing with any abnormalities that are discovered” must be done by humans, that is, by security guards. This does not mean that humans will no longer have work to do. Rather, they will be able to deal with abnormalities more effectively by using tools to conserve their energy, rather than dealing with abnormalities while fatigued from patrolling.

    How to respond to an anomaly varies from case to case, and is the judgement of the security personnel who arrive at the scene. It’s truly an art.

    The example of Secom is full of suggestions that suggest that “management should understand the true nature of technology.” What can be left to tools should be left to tools. What should be done by humans should be done by humans. Traditionally, “discovering abnormalities” was a job for humans, in other words, an art. However, with the “SP Alarm,” art has been replaced by technology.

    In many fields, technology is replacing art. Therefore, managers need to know the latest trends in technology and distinguish between work that can be left to tools and work that should be done by humans. Even as technology evolves, companies still have employees. The key is to use technology to cover the areas of art that employees have been doing up until now, while also understanding what cannot be covered and what can be done with the surplus that is created. In other words, if managers do not know about technology, they will not be able to survive in the competition.

    What can this technology do?

    Technology has become indispensable in corporate activities. Modern managers need to understand technology. However, as mentioned earlier, it is not necessary to understand every last detail of technology. Managers only need to correctly understand “what the technology can do.”

    A good example of where technology is replacing art in recent years is project management.

    Until recently, project management was dominated by art, not technology. Steering a project relied on the manager’s experience and intuition. However, with the development of management theory and the IT revolution since the latter half of the 20th century, it has become possible to entrust some management tasks to tools. Technology can now be used in management.

    A typical technology for management is a project management tool. Traditionally, managers would manage progress in an analog manner, and at worst, they would have to keep track of each member’s status in their heads. Successful management and leading a project to success was left to each manager to understand the progress and status of each member in their own way.

    Nowadays, by using project management tools, it is as if the thoughts of managers and executives can be shared, and anyone involved in the project can understand the progress and situation of the project. In many cases, progress is automatically visualized using graphs, so there is no need to rely on the manager’s personal abilities. Project management methods are also designed based on success stories that have been cultivated in project management around the world for many years, so even new managers will be able to proceed smoothly to a certain extent.

    This is the essence of what a technology called a project management tool can do. Even inexperienced managers can function as managers by using technology effectively. Management education takes time and money, and above all, it is difficult to see the actual situation. As a manager, you can see that by using the tool effectively in your company, you can check the status of each project and eliminate inefficiencies and unnecessary tasks, thereby reducing costs.

    Project management tools are also improving day by day. For example, Time Krei not only manages projects, but also has many other functions, including communication tools between members, electronic approval processes within the company, and groupware. By making effective use of these functions, work that was previously an art can be replaced by technology, and anyone can do the job efficiently. From the perspective of management, the advantage is that unstable elements are removed. By consolidating functions and realizing centralized management, there is no need to worry about the common problem of “having too many tools and taking too much time to manage,” which is often cited these days.

    What the technology can’t do

    As mentioned above, managers need to know “what the technology can do” and at the same time correctly understand “what the technology cannot do.” Work that technology cannot do will have to be done by humans. Let’s use project management as an example.

    Project management tools make it possible for anyone to carry out some aspects of project management that were previously considered an artisanal task. However, management itself is still performed by humans, and simply introducing a project management tool does not necessarily make all aspects of project management work.

    For example, it is difficult to build trust with members or fully motivate them by using a project management tool. The task of motivating members still relies on the manager’s communication skills.

    Although technology has recently begun to replace some aspects of art, art still accounts for a large portion of management.

    Of course, by using project management tools effectively, you can give members a small sense of accomplishment when they complete a task. However, members are human beings with complex emotions. It is not always the case that an accumulation of small accomplishments will motivate them.

    Some members enjoy working on projects, while others want to achieve results in projects and get promoted. Managers need communication skills to understand their members and motivate them. Even today, most management relies on the manager’s experience and intuition, that is, art. Therefore, if you are satisfied with just introducing a project management tool, it will not be effective enough and it will be difficult to achieve continuous project success .

    Will the technology be profitable?

    When introducing new technology into a business, managers need to decide whether the technology will generate profits. Introducing new technology takes time and money, and is nothing less than an investment in the company. No matter how revolutionary a technology may be, managers need to decide not to introduce it if the profits do not justify the investment. However, it is true that this decision can be very difficult.

    Let’s take a certain video game console as an example. In 1995, Nintendo Co., Ltd. released a 3D game console called “Virtual Boy®.” It was a game console that used groundbreaking technology at the time, allowing users to play games in stereoscopic 3D.

    However, sales fell to around 150,000 units in Japan and 770,000 units worldwide. The same generation of game consoles, the PlayStation®, sold 102.4 million units worldwide, and the Sega Saturn® sold 9.26 million units worldwide, far behind. The Virtual Boy was said to have been in the black, but judging from the sales figures, the profits were likely small, so it’s hard to call it a huge success.

    One of the reasons why the Virtual Boy® was not very successful was that the technology of 3D stereoscopic vision was too new for people to accept at the time. Another reason was that the game screen was displayed in a monotone red color, which put gamers who were already accustomed to beautiful color screens off using it.

    Technology has value in replacing human work. In the case of game consoles, it has value in providing new gaming experiences. The Virtual Boy® was shunned by game players because its technology was too new, and as a result, it did not provide a sufficient new gaming experience.

    The Virtual Boy® was fortunate in that the business did not go into the red because production was not so high. By withdrawing early, Nintendo Co., Ltd. was able to continue its business without serious damage.

    Furthermore, the 3D stereoscopic technology developed with the Virtual Boy® did not go to waste. 16 years after the release of the Virtual Boy®, the 3D stereoscopic function reappeared in the game console called “Nintendo 3DS®”. The Nintendo 3DS® became a huge hit around the world, and Virtual Boy® was rewarded.

    As you can see, it is very difficult to judge whether a new technology will generate profits. The Virtual Boy® case does not happen to every company. When managers invest in new technology, they need to thoroughly consider the cost-effectiveness and whether it will be adopted by users.

    Summary of the essence of technology

    As we have seen so far, it is essential for managers to understand the essence of technology.

    If managers understand the essence of technology, they will be more likely to be able to correctly judge whether technology will generate profits. Work that can be done by tools should be left to tools. Work that should be done by humans should be left to humans. If they remember this basic idea, they will be able to use technology to generate profits.

    Technology will continue to develop in a way that complements humans. Managers need to constantly think about what technology is currently available, what it can and cannot do, and whether it will lead to profits for their company.

  • Miyazaki International University pioneers English-language classes and mandatory study abroad programs, setting a model for other universities

    Miyazaki International University pioneers English-language classes and mandatory study abroad programs, setting a model for other universities

    Miyazaki International University, a small university with around 600 students, was ranked 8th in the “Internationality” category of the “THE World University Rankings Japan 2021,” released in March. Since opening in 1994, the university has consistently promoted “liberal arts in English” and “compulsory overseas training” as its features, and has become a model for global universities and faculties. We introduce the university’s systems for “serious global human resource development,” including its intensive overseas training programs and unique employment system that encourages faculty members to make efforts to improve their teaching skills.

    ●The chairman of the board of directors was convinced that “liberal arts is the ideal education” and established the university.

    　Miyazaki International University’s ranking for “internationality” in the “THE World University Rankings Japan Edition 2021” is 8th, up 11 places from last year’s 19th place tie. The university’s educational fulfillment based on high school teacher surveys and student surveys is tied for 101st place, placing it within the top 100, and its overall ranking has risen from 151-200 last year to 121-130. Naoki Nishimura, Director of the Global Education Center, who also serves as assistant to the president, explained, “We actively participate in rankings and surveys that can highlight our strength in internationality and disclose the data.” His words reveal his pride that “self-study is the pioneer of global human resource development in Japanese higher education.”
    　Miyazaki International University consists of two faculties: the Faculty of International Liberal Arts (100 students) and the Faculty of Education (50 students). The university opened in 1994. The then-president of Miyazaki Gakuen, which has a junior high school, high school and junior college, Hisayasu Otsubo, felt that “liberal arts is the ideal education required for Japanese universities, which place too much emphasis on knowledge,” and founded the university as a single-discipline university with only a comparative culture department. While working at the Technical Research and Development Institute of the Defense Agency (now the Ministry of Defense), he was assigned to the U.S. Naval Center as an exchange researcher. He said that his interactions with American researchers there were his formative experience of the value of a liberal arts university.
    　”The starting point of our university was President Otsubo’s philosophy that students should gain freedom of mind and knowledge through liberal arts, and develop the ability to see things from various angles and derive their own opinions,” explains Director Nishimura. From the beginning, the university has placed emphasis on critical thinking and incorporated active learning into all classes. In anticipation of the arrival of the global era, all classes are taught in English and overseas training is now compulsory. The pillar of education is always liberal arts, and the idea is to improve English ability through learning in that field.
    　In 2006, the faculty’s name was changed to the Faculty of International Liberal Arts, and in 2014, the Faculty of Education was established.

    ●The ratio of foreign faculty members in 2021 will be 77%.

    　Looking at the four indicators of “internationality” in the “THE World University Rankings Japan Edition” using the most recent data for the Faculty of International Liberal Arts, we see the following.
    ・As of April 2021, the ratio of international students is 12%. Students are accepted from Korea, China, Cameroon, Vietnam, Nepal, Kazakhstan, and other countries.
    ・As of April 2021, 24 of the 31 full-time faculty members (77%) are foreigners. Dean Anderson Passos is also a Brazilian national.
    ・The percentage of students who experience studying abroad before graduation was 82% in 2020 (some students do not participate in overseas training due to financial or health reasons).
    ・The percentage of classes offered in English in 2019 was 88%.
    　The ranking uses the combined and averaged data for each of these indicators for a specified period with the Faculty of Education.

    ● Japanese language proficiency is also important in improving English skills

    　Here is an overview of the curriculum of the School of International Liberal Arts, which incorporates various measures that have led to the school’s “8th place in internationality” ranking.
    　In the first semester of the first year, students take five subjects taught in English. Two of these are selected from subjects related to humanities, social sciences, and general sciences. These classes are team-taught by experts in each field and English language education experts. The remaining three subjects are English oral communication, reading, and academic writing, and classes are organized according to proficiency level.
    　In addition to English proficiency, Japanese language proficiency is also emphasized, and “Japanese Expression” is a compulsory subject from the first to third years. “No matter how excellent the English education a university provides, it is impossible to make students fluent at native level, and there is no need to do so. For Japanese people, true English proficiency is the ability to communicate using the most appropriate expressions after deeply understanding Japanese culture and ways of thinking. To achieve this, it is essential to improve your Japanese language skills,” says Center Director Nishimura.
    　Most subjects are offered two classes a week, and the curriculum is American-style, with students studying a small number of subjects intensively to steadily improve their skills.

    During the overseas training, participants submitted three reports in English.

    　In the first semester of the second year, students take English courses and “Japanese Expression,” as well as interdisciplinary and career-related courses such as “Culture of English-speaking Societies” and “Contemporary Japanese Art and Culture.” Some of these courses are also taught through team teaching.
    　In the second semester of the second year, students undergo a mandatory overseas study program (about 16 weeks) and are sent to 15 partner universities in five English-speaking countries, including the United States, Canada, and Australia. Students are expected to develop their own way of thinking and independence while utilizing their liberal arts and English skills in a different culture. While studying intensive English courses at partner universities, students are required to write a report in English of a total of 15,000 words on three themes during their stay. In “English,” students report on their English studies, mainly in class, and in “Area Studies,” students summarize their experiences and impressions in a different cultural society. In “Independent Research,” students work on a thesis on a theme related to the country, incorporating data from questionnaires and interviews.
    　After returning from their overseas training, students choose to study from humanities, social sciences, or special studies (four fields: English-speaking language and culture, international society and culture, global studies, and psychology) from their third year, and write their graduation thesis in their fourth year.
    　In 2020, due to the spread of the COVID-19 infection, the overseas training program was canceled. Joint classes with partner universities were held online. In-house faculty and local faculty worked together to set up a program to explain the history and culture of each country, and students were given the opportunity to interact with local students, working on writing reports for “area studies” and papers for “independent research.”
    　As of late April, the situation is also difficult for students to send students to the program in 2021. With the deadline for visa application procedures approaching in early June, it seems that difficult decisions will be forced upon them, with the possibility of implementing the program online in mind.　

    ●Teachers are employed on a fixed-term basis, and those seeking reappointment must present evidence of their teaching ability

    　The School of International Liberal Arts, where the majority of faculty members are foreign, has a unique employment system that “maybe is unique among Japanese universities” (Center Director Nishimura).
    　All faculty members, including the dean and Japanese faculty, are on a two-year contract as a rule. Faculty members who wish to renew their contracts must record their achievements, mainly related to education, such as challenges in classes and student evaluations of their classes, in a teaching portfolio and submit it to a reappointment committee selected by the faculty council. Based on the results of the review, the dean and then the president decide whether or not to reappoint the faculty member, and the contract renewal is approved by the chairman of the board of directors.
    　This system, which allows faculty members to continue to hone their teaching skills without being complacent with permanent employment, has been maintained since the university’s founding. Most faculty members who wish to be reappointed are actually reappointed, but this is not because the system has become a mere formality, but because the culture has become one in which it is normal to strive to improve the quality of classes.

    ● Student recruitment improves with expansion of scholarship system

    　At first, the school struggled to recruit students, as it was slow to accept its advanced education, including liberal arts in English and compulsory overseas training. In 2003, the number of students enrolled was reduced by 50.
    　However, in response to the growing social need and interest in nurturing global human resources, the number of students enrolled has gradually increased in recent years. In 2016, there were 57 students out of a total of 100, but this number increased to 68 in 2017, 87 in 2018, and 120 in 2019, reaching the full capacity, and 117 in 2020.
    　Education reforms, entrance exam reforms, and the expansion of scholarship systems, as well as strengthened public relations activities such as high school visits, guidance sessions, and open campuses to communicate these changes, have led to an improvement in student recruitment. Regarding the scholarship system, there are many slots for full or half tuition exemptions for students with high scores in the general selection and selection using the National Center Test, and those who have cleared the performance standards for external English proficiency tests at high school.
    　Even if you do not meet these criteria at the time of admission, there are many opportunities to receive scholarships after admission, such as academic performance, results in external English proficiency tests, and achievements in fields such as arts and sports. From 2021, a new grant-type scholarship will be introduced with support from the local business community. The university
    　has also started to focus on utilizing the media. A few years ago, the university’s website was completely redesigned . The site has a lively impression, with many videos introducing the campus, teaching videos in English, and videos answering questions from applicants in English, such as “What is a liberal arts education?”
    　The “Data-based International Liberal Arts School” page highlights various data, including the “internationality” index from the “THE World University Rankings Japan Edition.” It also shows that the average TOEIC score for fourth-year students in 2020 was 675 points, significantly higher than the 583 points for all English majors.

     Consider shifting to “liberal arts with an exit strategy”

    　Due to the COVID-19 pandemic, it has become difficult to study abroad, and the number of applicants to international and foreign language faculties for the 2021 entrance exams has dropped significantly. The number of students admitted to the Faculty of International Liberal Arts at Miyazaki International University has again fallen below its capacity, to 79.
    　With no end in sight to the COVID-19 pandemic, President Murakami Noboru, who took office this spring, is working on a strategy to appeal to prospective students by solving the essential problem of brushing up education. In order to address the weakness of liberal arts, which is that it is difficult to imagine an exit, he is considering establishing courses with specific exits in mind and presenting model curricula and curriculum flow charts. He is also considering reviewing the content of compulsory subjects so that they can be converted into credits for teacher training courses, thereby reducing the burden on those who wish to become teachers. He
    　said that he has cooperated with some of the succeeding universities and faculties that have set the goal of “classes in English” and “mandatory overseas training” in the planning stage by conducting inspections and interviews. Director Nishimura says, “I am proud that our philosophy was ahead of its time and was widely sought after by society.” Based on its founding principles and pride as a pioneer in nurturing global human resources, the future of this small university is attracting attention as it aims to establish a unique position.

     

  • VGC International College – VGC International College

    VGC International College – VGC International College

    This is the official admissions office for VGC International College in Vancouver, British Columbia, Canada. The Japan Overseas Education Association (JOA) provides free support for the admissions process.

    “English in Action”

    VGC International College

    VGC offers a style of learning English systematically, incorporating activities in addition to classroom learning. Aiming to learn practical, living English, we have prepared a variety of programs and courses to meet the needs of many international students. Most of our teachers have a master’s degree (TESOL, DELTA, CELTA qualifications) or higher, so we are well-known for the educational level of our teachers. Our English only policy is more thorough than other schools, and we are blessed with an environment in which to speak English. Although our environment is very international, our Japanese staff are always there to warmly support our Japanese students.

    Key Points of VGC

    Key Points of VGC

    1. Manage international students’ grades with the Purple Folder (allowing teachers to share information)
    2. EOP is strict (International students have to speak English even with staff).
    3. Study Labo (A study room where teachers are always present and you can ask questions at any time.)
    4. Online test (You can find out your level by taking an English test before studying abroad.)

    Study Abroad Data

    University form Language School
    Official website http://www.vgc.ca/
    Facebook https://www.facebook.com/VGCInternationalCollege/
    Brochure Download brochure (PDF)

    Video introduction

    VGC International College in Vancouver, Canada

    Gallery

    • Vancouver
    • lesson
    • Lesson 2
    • Lesson 3
    • student
    • student 2

    Location

    Hastings Campus

    Located on the school’s main campus, it has a homely atmosphere and a friendly environment among students.

    Granville Campus

    The Granville Campus, which resembles a business center, has a sophisticated and sophisticated atmosphere. It offers classes that mimic business situations, as well as courses that focus on business English.

    Vancouver, Canada

    411 W Hastings St, Vancouver, BC V6B 1L4 Canada

    Study Abroad Program Details

    Courses offered

    English Conversation Course

    • Global English (General English Conversation Course)
    • IELTS Preparation Course
    • TOEFL Preparation Course
    • University Prep Course

    In the morning, you will take classes based on the curriculum of the above course, and in the afternoon, you will take plus classes (elective classes).

    Plus Class Elective Subjects

    Plus Class Elective Subjects

    • Beginners Class (English training class for beginners)
    • Speaking & Correction Classes
    • Exam Preparation Classes
    • Business English Classes
    • Pronunciation Class
    • Multimedia English Classes
    • Hospitality English Course

    *Various other classes are offered at different times.

    activity

    • nature
    • Canoeing
    • Snowboarding
    • Halloween

    Accommodation

    You can choose between homestay with a Canadian family or living in a student dormitory.

    For more information, click here (official: English)

    Homestay

    • Homestay 1
    • Homestay 2
    • Homestay 3

    Student Dormitory

    • Dormitory 1
    • Dormitory 2
    • Dormitory 3

    Study Abroad

    Tuition Fees (Canadian Dollars)

    CORE (Full-time)

    8:45am～1:50pm

    • Global English (General English Conversation Course)
    • IELTS Preparation Course
    • TOEFL Preparation Course
    • University Prep Course

    STUDY LAB

    3:40pm-4:40pm

    The following fees are included

    PLUS (Intensive)

    8:45am～3:20pm

    CORE+ Afternoon Plus Lessons

    • Beginners Class (English training class for beginners)
    • Speaking & Correction Classes
    • Exam Preparation Classes
    • Business English Classes
    • Pronunciation Class
    • Multimedia English Classes
    • Hospitality English Course
    CORE
    (Full-time)    		 PLUS
    (Intensive)
    2-4 weeks C$360/week C$400/week
    5-12 weeks C$350/week C$390/week
    13-24 weeks C$340/week C$380/week
    25-36 weeks C$330/week C$370/week
    From 37 weeks C$320/week C$360/week

    Estimated other costs

    Registration fee C$150
    teaching materials C$10/week
    Management fee C$20
    University Entrance Support C$220
    Management document fee (under 18 years old) C$120
    Medical insurance (2 weeks or more) C$15/week
    Remittance fee VGC receipt: C$17
    VGC transfer: C$45
    International courier (where applicable) C$110
    Student card issuance C$10
    Transcript C$10
    Airport transfer (to) Regular: C$120
    Single: C$200
    Airport transfer (return) Regular: C$100
    Single: C$180

    Accommodation cost (Canadian dollars)

    Homestay

    usually Summer Addition
    Arrangement fee C$200 –
    Single room + 2 meals C$235/week
    C$45/day    		 C$25/week
    Shared room + 2 meals C$220/week
    C$40/day
    Single room + 3 meals C$245/week
    C$45/day
    Shared room + 3 meals C$230/week
    C$40/day
    Homestay change fee C$100 –

    Minor Homestay (17 and under)

    usually Summer Addition
    Arrangement fee C$200 –
    Single room + 2 meals C$260/week
    C$50/day    		 C$25/week
    Shared room + 2 meals C$245/week
    C$45/day
    Single room + 3 meals C$270/week
    C$50/day
    Shared room + 3 meals C$255/week
    C$45/day
    Homestay change fee C$100 –

    Student Dormitory

    usually Summer Addition
    Arrangement fee C$200 –
    Single Room C$340/week
    C$55/day    		 C$25/week
    Shared Room C$280/week
    C$55/day
    Cleaning costs C$50/time –
    Reservation guarantee fee 2 weeks from time of reservation –
    Cleaning fee when leaving C$50/time –
    Change of accommodation (if necessary) C$50 –
    Deposit (credit card) C$300 –

     

  • What car loans are available for purchasing a new Mitsubishi car? Learn about the features of each

    What car loans are available for purchasing a new Mitsubishi car? Learn about the features of each

    The purchase price of a car can be paid not only in cash but also by car loan (personal car loan). The advantage of a loan is that you can purchase a car even if you do not have a large amount of money on hand, so many people use a loan.

     

    This time, we will introduce the car loans available for purchasing a new Mitsubishi Motors car, their features, points to consider when taking out a loan, and an example of a repayment simulation. We will also explain how to purchase a high-quality used car at a good price, so please use this as a reference when choosing a car.

    table of contents

    1. Basics of car loans you should know, not just for Mitsubishi cars

    2. Features of car loans offered by Mitsubishi UFJ Bank

    3. What are the two loans available for purchasing a new Mitsubishi Motors car?

    4. Simulation of repayment amount for three Mitsubishi Motors loans

    5. Points to consider when taking out a car loan to purchase a new Mitsubishi car

    6. Check out Nextage used cars before taking out a Mitsubishi car loan

    7. Summary

    Basics of car loans you should know, not just for Mitsubishi cars

    Simply put, a car loan, which can be used when purchasing a car, is a system in which a bank or dealer lends you the money to cover the cost of purchasing a car, and you repay it in installments.

     

    The cost of purchasing a car often comes down to a lump sum. For those who cannot afford the lump sum, the car loan system, which allows you to pay the price in installments while still driving the car, is a major advantage.

     

    There are two main types of car loans: “bank-affiliated” and “dealer-affiliated.” First, let’s look at the characteristics of each.

     

    Characteristics of bank-affiliated car loans

    Bank-affiliated car loans are offered by banks, including credit and labor banks, and are generally limited to the purchase of a car. This type of loan is sometimes called a “personal car loan.”

     

    Interest rates tend to be lower than dealer loans, making it possible to reduce the total payment amount. In addition, it is a form of “borrowing cash to purchase a car,” and there is an advantage that the purchaser owns the purchased car.

     

    On the other hand, bank car loans tend to have strict screening. Also, it takes several days from the time you apply for the loan until the money is actually transferred to your account. If you use them, try to get a provisional screening and apply early.

     

    Features of dealer loans

    Dealer loans are loans offered by credit companies affiliated with car manufacturers such as Mitsubishi and Toyota. You can apply for a loan at the same time as purchasing a new car at the dealer, and the screening period is short, so the car purchase and loan procedures go smoothly. In addition, the screening standards tend to be less strict than bank car loans.

     

    However, the interest rate is high, and the total payment amount is higher than if you were to pay in full or use a bank car loan. Also, since the cost is borrowed using the car you are purchasing as collateral, the ownership of the car remains with the dealer or loan company until the loan is paid off.

    Features of car loans offered by Mitsubishi UFJ Bank

    We will introduce the specific details of bank car loans using the “Net DE My Car Loan” offered by Mitsubishi UFJ Bank as an example. This time, we will provide information on the regular “Net DE My Car Loan”, which is not a “fixed rate type”.

     

    ・Features of Net DE My Car Loan

    Lower interest rates than fixed rate loans Variable interest rate (2.975% per year) (*)
    Flexible loan period From 6 months to 10 years (in units of one month)
    Accepts refinancing from other companies Available only to those who meet the conditions
    Partial early repayment and full repayment before maturity are possible A fee of 5,500 yen (tax included) is required.

    (Free if you pay online)
    Loan amount 500,000 yen to 10 million yen (in 10,000 yen increments)

    What are the two loans available for purchasing a new Mitsubishi Motors car?

    Next, as an example of a dealer loan, we will focus on the loan offered by Mitsubishi Motors Finance Co., Ltd. The car loans offered by this company are positioned as Mitsubishi Motors dealer loans and are offered in two types: “Mitsubishi Motors Credit” and “Ultra My Car Plan.”

     

    Credit cards with payment options

    Mitsubishi Motors Credit is a dealer loan available at Mitsubishi Motors dealerships nationwide and its affiliated dealerships. There are four payment methods to choose from: the three below and one residual value type.

    Regular payment

    (Bonus combined payment/equal payment)

    		 Set a repayment period and repay the same amount every month by dividing the loan amount by the repayment period. Can be used in conjunction with bonus payments.
    Specified amount payment

    (Adjust)

    		 Specify the monthly repayment amount and repayment period. The minimum amount can be set from 3,000 yen. The decimals will be adjusted at the time of the final repayment.
    Uneven payments

    (Step)

    		 You can freely set the repayment amount as long as it i

    [Residual value credit] Super My Car Plan

    The fourth repayment plan for “Mitsubishi Motors Credit” is the “Super My Car Plan”, which is a residual value credit. Residual value credit is characterized by the fact that the amount to be paid at the time of final repayment (residual value) is set in advance (※1), reducing the monthly repayment burden. Repayment periods can be chosen from 3, 4, or 5 years, and contract mileage can be chosen from 1,000km or 1,500km.

     

    After the final repayment, you can choose to either switch to a Mitsubishi vehicle or return the loan (※2), re-credit, or pay in full. Only the Outlander, Eclipse Cross (PHEV model), and Delica D:5 can be set to a 6- or 7-year repayment period.

    *1 Residual value is the expected vehicle price at the end of the credit period, i.e., the expected value of the vehicle at the time of final repayment.

    *2 If the mileage or damage to the inside or outside of the vehicle exceeds separately specified conditions, costs will be borne by you.

     

    [Flat Rate Service] Ultra My Car Plan

    The second dealer loan available for purchasing a new Mitsubishi Motors vehicle is a fixed monthly repayment car loan called the Ultra My Car Plan.

     

    A major feature of this car loan is that it includes all the various expenses that are not included in Mitsubishi Motors Credit, such as automobile tax, automobile weight tax, compulsory automobile liability insurance premiums, automobile insurance premiums, a drive recorder with automatic alarm function (this can be selected not to be included in the contract), Tsuku² Guarantee I, and self-repair history compensation.

     

    The condition is that you must return the vehicle after paying off the loan. The fixed repayment method includes monthly maintenance costs, so you can estimate your expenses without any sudden expenditures, and you don’t have to worry about forgetting to pay taxes or insurance premiums.

    Mitsubishi Motors repayment amount simulation for three loans

    Next, we will calculate the repayment amount assuming the purchase of a “Delica D:2 HYBRID MX” based on the simulation service provided by Mitsubishi Motors Finance Co., Ltd. The manufacturer’s suggested retail price (required funds) of the “Delica D:2WD HYBRID MX” is 1,883,200 yen (tax included), and this time there will be no down payment or bonus payment, and the number of repayments will be set to 60.

     

    When using credit

    First, let’s look at the case where you purchase the car with Mitsubishi Motors Credit’s regular payment (equal payments). The interest rate is calculated at 6.8%.

    First payment 37,965 yen
    Second and subsequent payments 37,100 yen x 59 sessions
    Installment Fee 343,665 yen
    Total installment amount (required funds + installment fee) 2,226,865 yen

     

    When using the Super My Car Plan

    Next, let’s look at the case where the monthly mileage is set to 1,000 km with the Super My Car Plan. The interest rate is set at 3.9%.

    First monthly payment (first payment) 28,425 yen
    Monthly payment amount from the second onwards (payment amount from the second onwards) 29,900 yen x 58 sessions
    Final payment (residual value) 342,000 yen
    Installment Fee 221,425 yen
    Total installment amount (required funds + installment fee) 2,104,625 yen

     

    When using the Ultra My Car Plan

    Finally, we will introduce the results of a simulation of the Ultra My Car Plan using the Delica D:2 HYBRID MZ All-round Camera Package 2WD model.

     

    The manufacturer’s suggested retail price is 2,110,900 yen (tax included), the age requirements are 21 years or older, the usage period is 5 years, there is no down payment, and the monthly mileage is 1,000 km. In this case, the monthly usage fee (estimate) is 49,720 yen (tax included).

    Important points to consider when taking out a car loan to purchase a new Mitsubishi car

    So far, we have introduced an example of the repayment amount for purchasing a new Mitsubishi car with a car loan. When purchasing a new car, there are three points to keep in mind when using a dealer loan. Compare the advantages and disadvantages with bank loans and other options, and choose the loan that suits you best.

     

    The car is not in your name while you are paying off the loan

    When purchasing a car using a dealer loan, the dealer will retain ownership of the car (the owner of the car) until the loan is paid off. The user is considered the “user.” Not only can you not sell your car without permission, but if you are involved in an accident, you may be asked to pay off the remaining loan balance in full depending on the extent of the damage.

     

    For this reason, many people feel dissatisfied with the fact that the car is not theirs until it is paid off in full.

     

    How to reduce your total repayment amount

    When you take out a loan, your monthly repayments will include “interest” in addition to the principal. The longer the repayment period, the higher the total amount of interest you will pay. If you shorten the repayment period to reduce the amount of interest, your monthly payment will increase.

     

    As a guideline, the interest rate for bank loans is around 3%, while the interest rate for dealer loans is around 7%, which means the interest rate difference is more than double. It is important to consider lowering the price of the car you are purchasing by one level or paying a larger down payment, and find ways to reduce the loan amount itself.

     

    It is also important to reduce your monthly repayment burden.

    This is true regardless of the type of loan you use, but many people find monthly loan repayments a burden in their daily lives. It is also important to consider the possibility that changes in lifestyle, such as changing jobs or changing family structure, may increase the burden of repayments during the course of loan repayment.

     

    Why not use the opportunity of taking out a loan as an opportunity to review your spending? We recommend that you not only make a flexible loan repayment plan, but also consider ways to save money on your spending to reduce your monthly repayment burden.

    Check out Nextage’s used cars before taking out a Mitsubishi car loan

    If you are not particular about buying a new car or taking out a loan, we also recommend purchasing from a store that sells used cars. With a used car, you can consider models that you would not be able to afford as a new car.

     

    Nextage, which has stores all over the country, handles a large number of used cars, including Mitsubishi Motors. When purchasing a used car, the quality of the car can be a cause for concern, but Nextage is particular about it, so you can rest assured about your car life after purchase.

     

    If you want to save money on your purchase, we recommend buying a used car rather than a new one!

    If you want to save money on your purchase, you can buy a used car instead of a new one. Nextage is a used car dealer with over 200 stores nationwide, and not only can you get a good deal on your purchase, but we also have a stock of about 30,000 high-quality used cars. We have a wide variety of cars in every genre, including popular models.

     

    Even if you are inexperienced when it comes to cars, our experienced staff will listen carefully to your budget and preferences and suggest a vehicle that you will be satisfied with.

     

    With Nextage, there are reasons to feel safe even with used cars.

    Many people are worried about used cars breaking down or having problems. Nextage does not sell any cars that have been repaired (accident cars) or that have been damaged by water, which are at high risk of problems.

     

    Furthermore, to ensure that our customers can enjoy their car life with peace of mind, all of the cars we sell, whether domestic or imported, come with a generous free warranty. We also provide paid “service support” that includes road service in case of trouble and maintenance such as oil changes.

    summary

    Of the dealer loans and bank loans introduced here, it is not necessarily the case that one is better than the other. It is important to carefully compare the advantages and disadvantages of each loan and use the loan in a planned manner.

     

    Nextage is confident in offering high-quality used cars with a variety of comprehensive warranty services. If you have any concerns about purchasing a car, please contact Nextage.

  • What is the difference between secured and unsecured car loans? Here are some points to consider when borrowing.

    What is the difference between secured and unsecured car loans? Here are some points to consider when borrowing.

    Many people take out loans when they need a large sum of money for a big purchase like buying a house or for their children’s education. Cars are no exception, and it is common to see people take out loans to purchase them.

     

    There are several types of loans that can be used to purchase a car, each with different uses and benefits. When taking out a loan, it is important to choose the one that suits you.

     

    There are also loans that can be used by providing collateral. In this article, we will introduce the types of loans, as well as explain loan collateral and interest rates. If you check in advance when taking out a loan to purchase a car, you will be able to make a reasonable repayment plan.

    table of contents

    1. Do I need to provide collateral for a car loan?

    2. Difference between secured and unsecured car loans

    3. Features of secured car loans

    4. When taking out a car loan, check the interest rate in addition to the collateral.

    5. Points to consider when choosing a car loan other than collateral [Interest rate types]

    6. Points to consider when choosing a car loan other than collateral [Repayment method]

    7. Buying a low-priced used car can reduce your repayment burden!

    8. Summary

    Do I need to provide collateral for a car loan?

    A loan means “to lend something.” From the perspective of the loan user, it means “borrowing,” and it is a system in which you borrow the cost of a product that you cannot pay for all at once, and then repay it little by little later. There are many types of loans, and you must pass an examination to use them. Also, applying for one takes some effort.

     

    Many people may be wondering whether they need collateral to use these loans. First, we will explain the types of loans you can apply for when purchasing a car and whether or not you need collateral.

     

    There are several types of car loans

    There are mainly bank loans and dealer loans for car loans, and they can be used when purchasing a car, whether it is a new or used car. As the name suggests, bank loans are provided by financial institutions such as banks and credit unions. Dealer loans are applied for at the dealer, but unlike bank loans, the loan is provided by the guarantee company or credit card company that the dealer has an agreement with.

     

    There are also other services such as free loans and card loans that do not limit the purpose of use, and many people use these types of loans when purchasing a car.

     

    The availability of collateral varies depending on the type of loan.

    Collateral is something other than cash that is given to the borrower in case the borrower cannot repay the money. Typical collateral would be a car, a house, land, or securities.

     

    For example, when buying a car on loan, you borrow money and use the car as collateral to repay the loan. Some loans require collateral like this, and loans that do not require collateral are called “secured loans” and “unsecured loans.”

    The difference between secured and unsecured car loans

    A loan that requires collateral is called a secured loan, whereas a loan that does not require collateral and can be borrowed freely is called an unsecured loan.

     

    The difference between the two is whether or not you may need collateral. From here, let’s take a look at how secured and unsecured loans work, and how they differ from personal car leasing.

     

    What is a secured loan?

    Typical examples of secured loans are car loans and real estate loans. Since you need to set up collateral, you need to continue making repayments smoothly, but it is possible to receive a large loan at a low interest rate.

     

    The screening process for secured loans is strict, and not only will they check whether you can repay the loan, but they will also check whether the items you have set as collateral are valuable enough to be used as collateral. It will take some time to go through the screening process and get the loan, so it will be difficult to borrow money right away.

     

    You cannot use a secured loan if you are in a situation where you “lack the ability to repay” or “cannot provide collateral.”

     

    What is an unsecured loan?

    An unsecured loan is a loan that allows you to borrow money without providing collateral. Even if the borrower falls behind on repayments, there is no obligation to provide the collateral that has been set up because there is no collateral. Another feature of unsecured loans is that, unlike secured loans, the screening process is quick.

     

    Unsecured loans have the advantage of not requiring collateral and quick approval. On the other hand, interest rates are often set higher and the amount of money you can borrow tends to be less than that of secured loans.

     

    Also, because there is no collateral, the lender is more likely to take risks in terms of repayment ability and creditworthiness, and it can be said that the borrower is borrowing money using their “credit” as collateral.

     

    Different from leasing

    In recent years, a service called “My Car Leaseback” has become more common. My Car Leaseback is a system where you sell your car and transfer the ownership of the sold car to a leasing company. Even after the ownership is transferred to the leasing company, you can continue to use the car as your own.

     

    The difference between a loan that requires collateral and a car leaseback is whether you are borrowing money or a car itself. With a car leaseback, you sign a lease agreement with a leasing company after selling your car, and then borrow the car from the dealer.

     

    In the case of secured and unsecured loans, since money is borrowed from a financial institution, their nature is very different.

    Features of secured car loans

    In addition to cars, secured loans also include home loans and real estate secured loans. Many people use home loans to purchase their own home, so they are well known. Secured loans can also be used when purchasing a car, but what are their advantages?

     

    Here we will discuss the advantages and disadvantages of secured loans.

     

    Benefits of secured loans

    Secured loans are characterized by lower interest rates than unsecured loans because they require collateral, which means the burden of repaying the loan will be reduced.

     

    In addition, the loan amounts tend to be larger. The amount of the loan depends on the value of the collateral. If you want to borrow a large amount, you can increase the loan amount by providing collateral with a higher value.

     

    Another advantage of secured loans is that the loan amounts are large, allowing for ample repayment time over a long period of time.

     

    Disadvantages of secured loans

    The biggest disadvantage of a secured loan is that you need to provide collateral if you are unable to repay the loan. Therefore, you need to fully understand the collateral and repayment process before taking out a loan.

     

    In addition, secured loans generally have limited uses, so you cannot use the loaned money for any purpose other than what you reported when taking out the loan.

     

    In addition, the screening process for secured loans takes some time as the collateral needs to be verified, so be sure to apply early.

    When taking out a car loan, check the interest rate in addition to the collateral.

    When taking out a car loan, you should not only check whether or not you have collateral, but also check the interest rate. Interest rates vary not only depending on the type of loan, but also depending on the financial institution. If you use a loan with a low interest rate, you can reduce your overall repayment amount.

     

    Here we have compiled information about interest rates. Be sure to check in advance as it will affect the total amount you pay.

     

    The total payment amount varies depending on the interest rate

    When taking out a loan, the amount you pay on top of the amount borrowed is called interest.

     

    Interest is accrued on the amount borrowed, so if you borrow 1 million yen, the interest or interest that accrues over one year on that amount is 48,000 yen. In that case, the interest rate is calculated as 4.8% per year.

     

    The interest rates charged for secured and unsecured loans are different, and the total amount paid varies depending on the interest rate difference. Secured loans are often offered at lower interest rates than unsecured loans because they have collateral.

     

    Car loans tend to have lower interest rates

    Loans with a set purpose for which the loan is used are set with relatively low interest rates. Examples of loans with a set purpose include car loans and home loans. On the other hand, open loans with no restrictions on how the loan is used often have higher interest rates.

     

    While free loans offer a high degree of freedom, they also have low credit limits and cannot make a profit unless they raise interest rates. When there are restrictions on how the loan can be used, such as with car loans, the repayment period is often long and the amount borrowed is relatively high, so it is possible to make a profit even if the interest rate is set low.

    Points to consider when choosing a car loan other than collateral [Interest rate types]

    Loans always come with an interest rate, but the type of interest rate you should particularly understand is the difference between fixed and variable interest rates. Make sure you understand the characteristics of these two types and choose a loan with an interest rate that suits you.

     

    Easy to calculate fixed interest rate

    A fixed interest rate is a loan in which the interest rate remains the same until the end of the loan contract. There are also two types of fixed interest rates: a “fixed interest rate selection type” in which the interest rate can be re-fixed during the loan period, and a “fixed interest rate for the entire term” type in which the interest rate remains the same until the loan is paid off.

     

    With a fixed interest rate, the interest rate is fixed, so the repayment amount will not change even if the market interest rate falls. The advantage is that the interest rate is fixed, so the repayment amount is decided at the time of borrowing, making it easier to make a repayment plan. You will also have the peace of mind that the interest rate is fixed.

     

    If you want to make steady repayments over a set period of time, we recommend the “fixed interest rate option.” If you want to make steady repayments until the end, we recommend the “fixed interest rate for the entire term.”

     

    Variable interest rates are being reviewed

    With a variable interest rate, the interest rate changes every six months and the repayment amount is reviewed every five years. Because the interest rate changes, it is not suitable for long-term repayment, but because the interest rate itself is set low, the repayment amount tends to be reduced.

     

    The advantage of a variable interest rate is that when market interest rates fall, the amount you have to repay also decreases. Naturally, there is also the risk that market interest rates will rise, so for those who do not want to repay over the long term, but would like to take advantage of the benefits that only low interest rates can provide, a variable interest rate is suitable.

    Other points to consider when choosing a car loan besides collateral [Repayment method]

    In addition to interest rates such as fixed and variable interest rates, loans also have what is called a repayment method. There are two repayment methods: “equal principal and interest repayment” and “equal principal repayment.” The monthly repayment amount and total repayment amount change depending on the difference between these. Understand the mechanisms and characteristics of each method and choose a repayment plan that is affordable for you.

     

    Equal principal and interest repayments with a fixed amount

    The characteristic of equal principal and interest repayment is that the monthly repayment amount is fixed, and the principal and interest of the repayment amount are adjusted. Since the monthly repayment amount is fixed, it is easy to plan repayments and predict income and expenditures. Another advantage is that the repayment amount at the beginning of repayment is smaller than that of equal principal repayment.

     

    Many people choose equal principal and interest repayments for car loans because they are easier to repay. However, be aware that there is also the disadvantage that the rate at which the principal is reduced is slower, so interest increases and the final repayment amount becomes higher.

     

    Equal principal repayments with variable monthly amounts

    Equal principal repayment is a repayment method in which the principal remains constant and the monthly repayment amount is set by dividing the principal by the remaining repayment period. The advantage is that the principal is reduced quickly and the total repayment amount can be reduced. However, the disadvantage is that the interest rate is high at the beginning of repayment, so the initial repayment burden is large.

    A cheap used car can help reduce your repayment burden!

    Many people use a loan when buying a new car. A loan is one of the necessary means to buy a car, but it comes with the obligation to make monthly payments. If you want to reduce the cost of buying a car, consider a used car, which is cheaper than a new car.

     

    Used cars can help ease the burden of repayment. Nextage, which has stores nationwide, thoroughly researches the prices of other companies every day and offers great deals on used cars 365 days a year with unbeatable prices.

     

    In addition, we do not sell cars that have been repaired. In addition to thorough quality control, we also carry out quality appraisals by neutral third-party organizations, so you can enjoy a worry-free car life even after purchasing.

     

    If you buy a used car, you may be able to buy a high-grade car at a low price.

    The first benefit of buying a used car is the low price. Even a relatively new used car, such as one year old, can be purchased for about 20% less than the price of a new car. Also, there is a wide variety of used car models available, so it is not difficult to find a used car within your budget.

     

    In addition, the delivery period for used cars is short, and if there are no problems with the procedures, the car will be delivered in about 1 to 2 weeks. Since the delivery of new cars often takes more than a month, purchasing a used car is also recommended for those who want to get a car quickly.

     

    Nextage, which has a large number of units sold, offers a wide range of options

    Nextage’s strength is its large inventory. Nextage has over 200 stores nationwide, with a total inventory of approximately 30,000 vehicles. If you find a car you are interested in on the Nextage website, you can have it delivered to the nearest store, even if the store is far from your home and has the car in stock.

     

    In addition, Nextage places importance on making it easy to find and choose the car you want. They have specialized stores that specialize in car models such as compact cars and SUVs, so you will be able to find a car that meets your desired conditions.

    summary

    There are several types of car loans, including bank loans, dealership loans, card loans, and free loans, and some loans can be used by providing collateral. A secured loan requires you to prepare collateral, while an unsecured loan does not. Understand the different aspects such as the screening period, interest rate, and loan amount, and find the loan that suits you.

     

    One way to reduce the burden of loan repayments is to purchase a used car. Not only are used cars cheaper than new cars, but you may also be able to purchase a higher-grade car. When purchasing a used car, please contact Nextage, which has a wide inventory.

     

  • Are online bank car loans attractive? What to consider when choosing and how to apply

    Are online bank car loans attractive? What to consider when choosing and how to apply

    A car is an expensive purchase, so many people consider buying it on a loan. There are various types of loans, such as bank loans and dealer loans, but there is also the option of online bank car loans.

     

    In this article, we will explain the appeal of online banks, how to organize the process from the preliminary screening to the formal screening, and tips on choosing a loan. We will also introduce recommended websites for finding a car for those who are taking out a car loan online, so please use this as a reference.

    table of contents

    1. Here’s what’s great about online bank car loans

    2. How to get a car loan from an online bank [in the case of a preliminary screening]

    3. How to get a car loan from an online bank [in the case of formal screening]

    4. Tips for choosing an online bank car loan

    5. Leave your online car search to Nextage!

    6. Summary

    Here’s what’s great about online bank car loans

    First of all, compared to regular bank-based car loans or dealer-based car loans, online bank car loans have their own unique advantages.

     

    So, let’s take a look at the benefits and features of online bank car loans.

     

    It’s easy to pass the examination

    Even if you are interested in using traditional bank-affiliated car loans because of their low interest rates, the screening criteria are stricter, so the number of people who can use them tends to be limited.

     

    However, with online bank car loans, you can apply even if you are a part-timer or casual worker, as long as your income is stable. Conventional bank car loans state “full-time employee” in the terms of use column, so in this respect, online banks have an advantage over general bank car loans in terms of ease of use.

     

    The fees are low and it’s a good deal

    If you use a car loan from a dealer as mentioned above, not only will the owner become the “dealer” or “credit company,” but interest rates and fees tend to be higher.

     

    Therefore, if you want to keep the fees and maintenance costs associated with car loans low, we recommend car loans from online banks, which have no or low fees. Regular bank car loans incur labor costs and store maintenance costs, but online banks, which do not have physical stores, do not incur any of these costs.

     

    Easy procedure without visiting the store

    Compared to car loans from dealerships that can be used after choosing a car model, general bank car loans are convenient to use at any time. However, since you need to go during the opening hours of the counter, it may be difficult to use them as you wish.

     

    On the other hand, the biggest advantage of online bank car loans is that not only do you not have to go to a branch, but you can apply at any time of the year. The process can be completed by mail and online, making it easy to use even for busy people.

    How to get a car loan from an online bank [in the case of provisional screening]

    Some people may be interested in applying for a car loan from an online bank because of the advantages of “it’s easy to pass the screening,” “fees are low,” and “you don’t have to visit a branch and can use it anytime.” The screening process consists of two stages: a provisional screening and a formal screening.

     

    Here we will explain the preliminary screening process when taking out a car loan from an online bank.

     

    Apply for a provisional examination

    When you go to the online bank’s car loan page from each bank’s personal car loan page, there is a button that says “Apply for preliminary screening,” so fill in the necessary information accurately on the next page.

     

    At the stage of provisional screening, not only is it free and no documents are required, but it can also be used even before deciding on a car, but in some cases, an annual income of 1.5 million yen or more may be required. However, the terms of use vary depending on the online bank, so it is a good idea to check in advance.

     

    Receive the results of the provisional screening

    The results of the preliminary screening may take 3 to 5 days, or may arrive within a few hours to 2 business days. Notifications tend to arrive by email, phone, or mail, but in some cases you can check the results by logging in to your My Page, so try using this.

     

    Also, in case you need to cancel the loan because the approved amount at the time of the provisional screening is less than the amount you wish to pay, it is a good idea to check whether cancellation is possible. There may also be an expiration date for the provisional screening, so be sure to read the notes of the lender.

    How to get a car loan through an online bank [in the case of formal screening]

    It may take about two weeks from the preliminary screening to the loan, so if you get the preliminary screening early, you can shorten the time until you can use the loan. However, in addition to submitting the necessary documents, the formal screening also involves receiving the results of the formal screening and the procedures that follow.

     

    Here we will explain the formal screening process when applying for a car loan from an online bank.

     

    Submit the required documents

    After passing the provisional screening, prepare the necessary documents before the formal screening. For example, prepare your driver’s license or other identification documents, previous year’s income certificate such as tax withholding slip or official certificate, health insurance card, and the estimate and contract for the car you want to purchase.

     

    However, the required documents may differ depending on whether you are taking out a new loan or refinancing an existing loan, and additional documents may be required, so be sure to check the website carefully. There are also a variety of ways to submit documents, from visiting a branch to faxing or even via smartphone, so we recommend checking the website carefully.

     

    Receive the results of the formal review

    If there are no problems with the required documents, you can wait for the results of the formal screening. It depends on the online bank you use. Check the results by email, etc.

     

    However, please be aware that your employer may be contacted in the form of an “employment verification.” If you are unable to obtain this employment verification, depending on the screening process, you may not be able to receive the loan, so if you have any concerns, we recommend that you check with the dedicated customer center.

     

    Complete the procedure and get the loan

    If you pass the formal screening, you will finally move on to the contract procedure. If you can proceed online, you will need to sign the contract and register your transfer details. In some cases, you will need to enter your details three business days before the desired transfer date, so it is important to do this early.

     

    There is also a risk that the loan will be ruined if the “estimated capital amount” is mistakenly withdrawn. To ensure that you can receive the loan on the day, be sure to check the website of the online bank you are using carefully and proceed with the procedure.

    Tips for choosing an online bank car loan

    Car loans from online banks are becoming more common, but what criteria should you use when choosing one? For example, it is recommended to compare points such as whether you can save on costs such as interest rates and fees, whether there are sufficient consultation services, and whether you can repay at an ATM.

     

    Here are some tips for choosing an online bank car loan.

     

    Are the interest rates and fees high?

    Paying attention to interest rates and fees when choosing a car loan can lead to cost savings. Compared to city and regional banks, online banks often offer higher interest rates for car loans. Even if an online bank offers a low interest rate, the conditions are often strict, and the interest rate also varies depending on whether a fixed or variable interest rate is applied.

     

    In addition, one advantage of online bank car loans is that they keep administrative fees and other such fees low, but they are not completely fee-free, so it is a good idea to conduct simulations and check the details before using the service.

     

    Is there a consultation system in place?

    With a regular bank car loan, you can immediately consult at the counter if you have any questions, but with online banks, there are no physical branches, so it is important to have someone to consult with. Some online banks have multiple contact points such as email and chat in addition to phone, so if you are using a car loan for the first time, you should also pay attention to this point.

     

    Even when applying for a car loan, there are two screening processes and required documents, so it is important to choose the service you want to use based on your needs.

     

    Can I make payments at an ATM?

    Depending on which online bank you use, in most cases there are repayment methods other than direct debit from a specified account. For example, if there is an affiliated ATM nearby, repayment via ATM may be very convenient.

     

    When choosing a car loan from an online bank, if you can’t decide after comparing interest rates, fees, consultation systems, etc., it is recommended that you compare whether there are multiple repayment methods and what kind of repayments are possible.

    Leave your online car search to Nextage!

    In addition to traditional car loans from general banks and dealerships, car loans can now be completed through online banks, making them easy to use even for those who are short on time. You can also save time by searching for a car to actually take out a loan for online.

     

    Here we will explain the features of Nextage, which is recommended for searching for cars online.

     

    You can search for used cars with detailed search

    First of all, for those who think that choosing a used car is difficult because there are so many to choose from, we recommend Nextage’s detailed search function.

     

    Manufacturer

    ・Vehicle type

    ·grade

    ・Year model

    – Mileage

    ·color

     

    Specifically, you can select multiple conditions like those above. You can also specify “new car/remaining vehicle inspection date” and “price range”, and there are also plenty of functions to narrow down and sort by equipment. It also supports free word searches, so it’s recommended for those who want to easily search for used cars online.

     

    Can be picked up at your nearest store

    Nextage has over 200 stores nationwide (as of May 2022), so you can search through the inventory available nationwide and order the car model you want even if it’s not available nearby.

     

    We can order everything from compact cars to imported cars and even cars that are not listed, but there may be some vehicles that we cannot accommodate, so if you find a car that interests you, please feel free to contact us.

    summary

    The advantages of online bank car loans are that they are easy to pass the screening process, the fees are low, and above all, you don’t need to visit a branch. The preliminary and formal screening procedures vary depending on the online bank you use, so be sure to check the website of each bank.

     

    If you are also searching for a car online, we recommend using Nextage, which allows you to search for detailed inventory. In addition to the year and mileage, you can also search for cars that fit your budget by specifying the price range. There are also models that can be ordered from all over the country, so first try searching for the model you are interested in on the Nextage website.

     

  • Will car insurance premiums be cheaper? We’ll reveal all the secret tips to save on your premiums!

    Will car insurance premiums be cheaper? We’ll reveal all the secret tips to save on your premiums!

    Automobile insurance premiums are set based on various factors such as the driver’s age, vehicle type, annual mileage, and purpose of use of the car. Therefore, even if the age is the same, if the vehicle type and annual mileage are different, the premiums will be different for each policyholder.

    Since insurance premiums are paid continuously every year, many people would like to reduce their premiums if possible. It is important to understand the points that can reduce premiums, review the insurance contents, and change the contract contents.

    Now, we will introduce some tips to save on insurance premiums, so please use this as an opportunity to reconsider your car insurance.

    Optional car insurance premiums vary

    Auto insurance rates are determined based on a variety of conditions and factors, so premiums can vary greatly depending on the individual and insurance company.

    Let’s take a look at what conditions and factors are involved.

    1. Driver age requirements

    If the driver is young, they are considered to have little driving experience and therefore have immature driving skills, so the insurance premiums are set higher. Conversely, the premiums are lower as the driver gets older. There are four main types of coverage:

    • Coverage for those aged 21 and over
    • Coverage for those aged 26 and over
    • Coverage for those aged 36 and over
    • All ages coverage

    Age classifications vary slightly depending on the insurance company, and some insurance companies provide coverage for people over 30 years old.

    2. Driver’s Scope

    If the driver is limited to the policyholder only, the risk of traffic accidents is reduced, so the premiums will be lower. On the other hand, if the driver and spouse are the only insured, the premiums will be slightly higher, and if family members such as children or grandparents have the opportunity to drive, the premiums will be the highest.

    3. Car model

    Insurance premiums vary greatly depending on the size and performance of the car. Insurance premium determination standards called model-specific interest rate classes are set based on the accident records of each model of car. Based on this standard, “sports cars” that are at higher risk of traffic accidents and “luxury cars” that are more likely to be stolen generally have higher insurance premiums.

    4. Driving history

    The color and grade of your driver’s license reflect your traffic accident and violation history, and your driving history also affects your insurance premiums. If you don’t use your insurance because you have no accidents, your grade will go up and your insurance discount rate will also increase.

    5. Purpose of use

    The more frequently you use your car, the higher the risk of a traffic accident, and therefore the higher your insurance premiums will be. The most expensive insurance premiums are for business use, followed by commuting to work or school, and the cheapest for daily use or leisure.

    6. Mileage

    If you drive a long distance per year, you will also use your car for a long time and frequently, which increases the risk of traffic accidents and therefore increases your insurance premiums. Conversely, if you drive a short distance, your insurance premiums will be lower.

    How to lower car insurance premiums?


    As long as you continue to use your car, you never know when you might get into a traffic accident. Therefore, as long as you own and use a car, you will need to continue to have car insurance to prepare for the worst case scenario.

    If you are going to be paying insurance premiums for many years, you probably want to keep them as low as possible. Insurance premiums vary depending on various conditions and factors.

    In order to reduce your insurance premiums, it is important to review each of the conditions and coverages. Also, there may be some coverages that were fine when you first signed the contract, but that you no longer need as time goes by.

    If your lifestyle or family structure changes and you no longer need certain items, you may be able to find more advantageous conditions or compensation.

    How to reduce car insurance premiums: 1. How to sign a contract

    Depending on the method of contracting, automobile insurance can be divided into “agency-type insurance” and “online shopping-type insurance.”

    Agency-type insurance

    This method involves visiting an insurance agency, receiving a face-to-face explanation of the insurance contents from a staff member, and signing a contract. This has the advantage of being reassuring as you can consult with them about which insurance and compensation to choose, and the procedure is easy and smooth.

    Online insurance

    You can apply online or over the phone, and then complete the contract procedure by mail, etc. You have to research and choose an insurance company yourself, but the appeal is that you can do the procedure easily at any time.

    Looking at the premiums alone, agency-based insurance is somewhat more expensive because it incurs labor costs and storefront fees, which are added to the premiums. On the other hand, online-based insurance has the advantage that there are no fees because the procedures can be completed online.

    How to reduce car insurance premiums ② Driver restrictions


    When taking out car insurance, you can limit the scope of drivers of the insured vehicle.

    By limiting the driver to the policyholder, the risk of a traffic accident will be reduced, making the insurance premium cheaper. If only the policyholder drives, limit the policy to the policyholder. In that case, when going out with your family, be careful not to let anyone other than the policyholder drive.

    If your spouse absolutely needs to drive, you can take out one-day car insurance, and there will be no problem even if it is limited to yourself.

    However, if your child gets a driver’s license and will be sharing your car, it’s safer to keep it restricted to family use just in case.

    How to reduce your car insurance premiums 3. Types of vehicle insurance

    You can also reduce your insurance premiums by limiting your vehicle insurance coverage to the bare minimum.

    What is vehicle insurance?
    This insurance covers repair costs when your vehicle is damaged.

    In the first place, you can freely choose whether or not to add vehicle insurance. For example, if your car is many years old, you can choose not to repair minor scratches and wait until you can buy a new car.

    Also, some people may consider buying a new car if their car is destroyed. In this case, vehicle insurance is not necessary, so you don’t need to buy it!

    However, some people prefer to drive new cars even if it means having to repair them in the event of an accident, so in that case it is safer to have the system installed.

    The premiums for vehicle insurance vary depending on the scope of coverage. There are limited types that only cover damage caused by traffic accidents, as well as wide types that cover damage caused by theft and natural disasters such as typhoons and earthquakes.

    If we break it down even more, the coverage varies depending on the insurance company, including types of traffic accidents excluding hit-and-run and single-vehicle accidents.

    The best way to save money is to not purchase vehicle insurance, but you can also reduce your premiums by carefully selecting the minimum coverage required.

    How to reduce your car insurance premiums #4: Vehicle insurance deductible

    In addition to the coverage of your vehicle insurance, your deductible is also a key factor in keeping your premiums down.

    What is the deductible amount?
    This is the amount that the policyholder pays out of pocket when receiving compensation from the insurance company in the event of an accident.

    For example, if a covered accident costs 300,000 yen to repair, and your deductible is set at 50,000 yen, you will receive 250,000 yen in insurance payments and will have to pay the remaining 50,000 yen out of pocket.

    By increasing this deductible, you can reduce your insurance premiums.

    Let’s take an example from an insurance company.

    If the deductible is zero

    The insurance premiums will be the highest.

    In the case of “Exemption 5-10”

    The deductible for the first accident is 50,000 yen, and for the second accident it is 100,000 yen.

    In the case of “Exemption 10-10”

    The deductible for both the first and second accidents is 100,000 yen.

    In the case of “Exemption 15-15”

    This option offers the lowest insurance premiums, but the deductible for both the first and second accidents is 150,000 yen.

    If the deductible is too high, the amount you have to pay in the event of an accident will increase, so it is recommended that you set it at a small amount rather than zero.

    How to reduce your car insurance premiums: 5. Minimize passenger compensation

    There are two main types of car insurance that cover damages to passengers in a car: “Personal Injury Insurance” and “Passenger Injury Insurance.”

    Personal injury insurance and passenger injury insurance have different systems for the timing and amount of insurance payments.

    If a passenger is injured in an accident, personal injury insurance will compensate the actual cost of medical treatment, etc. Furthermore, if the total amount of damages is determined, the insurance money will be paid even before a settlement is reached.

    On the other hand, passenger injury insurance determines the amount of insurance coverage according to the part of the body injured and the symptoms. Insurance benefits are paid when the total number of days of hospitalization or outpatient treatment based on a doctor’s diagnosis exceeds five days.

    If you have some savings and are not in a hurry to pay for medical expenses, you can rest assured by purchasing personal injury insurance that will cover the actual expenses. On the other hand, if you want to use the insurance money for medical expenses as soon as possible, you can also choose to purchase passenger injury insurance.

    In any case, if you purchase both personal injury insurance and passenger insurance, the coverage will overlap, which will increase your insurance premium burden.

    Carefully researching the coverage and choosing insurance that covers what you need can help you save on insurance premiums.

    How to reduce car insurance premiums ⑥ Pay attention to the purpose of use


    Keep in mind that insurance premiums will vary depending on how you use your car.

    If the purpose of use is commuting to work or school, the premiums will be slightly higher. On the other hand, if the purpose of use is daily use or leisure, the premiums will be slightly lower.

    If you use your car for commuting to work or school on average 15 days or more per month per year, it will be considered for commuting to work or school purposes.

    If you usually commute by train and only drive when the weather is bad, such as when it’s raining or snowing, then your commute is infrequent and falls into the category of daily/leisure purposes.

    Also, if your lifestyle has changed, such as you used to drive to work but now commute by train, or you quit your job and no longer commute to work, please ask your insurance company to change the purpose of use. Your insurance premium may go down, so we recommend you review your policy!

    How to reduce your car insurance premiums ⑦ Use discount systems

    Different insurance companies offer different discount systems, but let’s start by looking at the long-term premium discount.

    What is the long-term discount?
    This is a discount that allows you to maintain a contract with the same insurance company for a long period of time and have no accidents for many years or have an accident for which you do not use insurance, and therefore your grade will increase and your insurance premiums will become cheaper.

    Regarding grades, the maximum grade is usually 20, but some insurance companies have up to 22. The higher the grade, the larger the discount rate, so the lower the insurance premium.

    One of the benefits is that even if you use your insurance in the event of an accident, your grade will not decrease more gradually, so your insurance premiums are unlikely to increase.

    Plus, there are other discounts:

    • “Internet discount” – lower your insurance premiums if you complete your insurance contract online
    • If you drive less than the set annual mileage in a year, you can have the amount of your insurance premiums carried over to the following year deducted from the amount you did not drive.
    • “New car discount” – if the insurance start date is within 49 months of the new car registration, the premium will be discounted
    • “Automatic brake discount” for cars equipped with safety devices such as automatic brakes

    How to reduce your car insurance premiums: 8. Cancel unnecessary clauses


    In addition to the basic coverage, special clauses can be added to car insurance. Contractors are free to decide whether or not to add them.

    There are several types of optional clauses that are meant to provide more comprehensive coverage. For example, there are the following four:

    • “Attorney Fee Special Clause” covers the costs of consulting with an attorney and having them take action in cases such as traffic accident compensation settlements and lawsuits.
    • “Family Bike Special Clause” that covers damages in the event of an accident while driving a moped
    • Automobile insurance is generally a one-year contract, but there is an “automatic renewal special clause” that will automatically renew your policy even if you forget to renew your policy.
    • “Personal Liability Special Clause” covers compensation for injuries or death of others or damage to other people’s property in daily life

    If you add all the special clauses, you will have peace of mind in the event of an emergency, but if you add too many, the insurance premium will be higher. Therefore, you can reduce your insurance premium by reviewing the special clauses and considering whether they are necessary for your life and removing the ones you do not need.

    How to reduce your car insurance premiums #9 Pay your premiums annually

    The cost of insurance will vary depending on the payment method and frequency of payment.

    Generally, car insurance is a one-year contract, and you can pay the full amount in advance once a year (annual payment method). On the other hand, you can also split the yearly premium into 12 months and pay each month.

    However, the total amount of insurance premiums will be higher if you pay monthly than if you pay annually! Therefore, you will need a large amount of money at the beginning, but we recommend paying annually because it will keep your premiums lower and you only have to pay once a year.

    There are also several ways to pay your insurance premiums, including direct debit, credit card payment, convenience store payment, and bank transfer.

    If you choose a payment method such as bank transfer, you may have to pay a fee. In that case, you may end up losing money by paying the fee just for the insurance premium.

    On the other hand, paying by credit card also has the advantage of giving you points that can be used for shopping, etc.

    It’s time to reconsider your payment methods and switch to more cost-effective methods.

    Compare insurance companies


    There are many insurance companies for car insurance, and each company has different coverage, discount services, and premiums. In order to receive generous coverage at the lowest possible premium, we recommend that you research the coverage details of the insurance company in detail.

    When doing so, choose an insurance company that matches your current lifestyle. Look online for insurance companies with low premiums and compare the coverage.

    You should also take advantage of discounts whenever possible and carefully examine the contents of your insurance to make it cheaper and give you peace of mind in the event of an accident. It is also important not to leave your insurance as it is, but to review your insurance from time to time!

    If you own more than one car, you can use the second car discount.


    If your family owns one car and you purchase a second car and take out car insurance, you may be eligible for a “second car discount.”

    What is a second car discount?
    Normally, new insurance applications start at grade 6, but under this discount system you can start from grade 7, which means you get a higher discount on your insurance premiums and lower costs.

    For example, if a child gets a driver’s license after graduating from high school, buys a car, and applies for new car insurance, the premiums will be high because the child is young and has little driving experience. However, if the child’s driving grade has increased by even one grade at the time the insurance starts, the premiums will be lower.

    There are several conditions that must be met in order for the second car discount to apply:

    • The first vehicle is rated 11 or above and is a privately owned vehicle of 8 models.
    • The second car is a new member, and there are eight types of personal vehicles.

    You need to check as all the conditions must be met.

    Since insurance companies do not provide any information about second car discounts, you will have to apply for them yourself to have the discount applied.

    Taking advantage of the no-accident discount for parents can lower your insurance premiums

    Taking advantage of the no-accident discount for parents can lower your insurance premiums
    If a family purchases a new second car, they can switch the insurance rates for the first and second cars when taking out car insurance.

    In order to transfer the grade of your first car to your second car, there are conditions, such as having relatives living in the same household, so be sure to check.

    For example, let’s say a parent owns a car, has had no accidents for many years, and has a high insurance grade. When a child next purchases a car and applies for car insurance, even with the second car discount, they will start at grade 7. If the parent’s grade is high, switching will save a lot on the child’s insurance premium.

    For your parent’s generation, the insurance premium will not be that high even if you reach grade 7. You can only change grades when joining a new policy, and once the insurance period for your second vehicle has started, you can’t do so, so don’t miss the opportunity.

    Even if the second car discount is not applied, it may be possible to change your grade, so if you take advantage of this, your insurance premiums may be slightly cheaper.

    Do not overlap coverage between two insurance policies

    Be careful, as there may be overlapping coverage between the first and second car insurance, especially if the policyholders are related.

    The most common types of insurance are “Personal Injury Insurance” and “Passenger Injury Insurance,” which cover damages to passengers in a car. These two types of insurance cover “the driver and his/her spouse,” “relatives living with the driver or spouse,” and “unmarried children living separately.”

    Therefore, if a parent has personal injury insurance on their first car insurance, when their child takes out car insurance for a second car, the compensation for personal injury insurance will overlap, so they will not need to take out personal injury insurance on the second car insurance, and the premiums will be cheaper.

    You can also save money on your car insurance by checking the coverage of your car insurance to avoid paying duplicate premiums unnecessarily.

    You may be able to get a discount by consolidating your insurance with one company.

    You may be able to get a discount by consolidating your insurance with one company.
    The second car discount applies whether the first and second cars have different insurance companies or the same, as long as certain conditions are met, such as the first car’s class.

    However, you may be able to get a discount on your insurance premiums if you insure your second vehicle with the same insurance company as your first vehicle. Having one insurance company is convenient in that you also have the same contact information.

    If you renew your contracts at the same time, the process will be easier. If you use one company, it will be easier to apply for a second contract, so it’s a great deal.

    If you don’t drive your car often, one-day car insurance is also effective.

    If you don’t drive your car often, for example, just a few times a month and only drive it around town, then if you take out car insurance that assumes you drive your car on a daily basis, the premiums will seem high for how often you use your car.

    You want to take out car insurance just in case, but it would be a waste of money. In that case, there is car insurance that you can take out for just one day, so you can take out the insurance as needed and avoid waste.

    1DAY Insurance, which can be purchased for just a few hundred yen a day, can be easily applied for at a convenience store. It is a convenient insurance that can be used when you don’t own a car and you borrow a friend’s or acquaintance’s car to drive.

    By taking out car insurance only when you need it and for the period you need it, you can kill two birds with one stone by not only having peace of mind in the unlikely event of a traffic accident, but also keeping your insurance premiums low.

    Add a family bike special clause to your motorcycle insurance

    Add a family bike special clause to your motorcycle insurance
    If a family member owns a moped and uses it for commuting to work, etc., they will need to take out insurance in case of a traffic accident.

    Normally it would be thought that it would be a good idea to take out motorcycle insurance, but if your family owns a car, it is said to be more cost-effective to add a “family motorcycle special clause” to your car insurance.

    What is the Family Bike Special Clause?
    This is a special clause that covers damages if you injure or kill someone in a traffic accident or damage property while driving a moped.

    The scope of coverage includes the driver, spouse, and family members living with either driver. If parents add a special clause to their car insurance, they can rest assured that their child will be covered in the event of an accident while driving a moped.

    If you have life insurance, the amount of compensation will be reduced

    Just as people who own and use a car have auto insurance, many people also have life insurance to protect against illness, injury, etc. You may think that life insurance has nothing to do with car insurance, but that’s not necessarily the case.

    For example, if a family member is injured in a traffic accident, depending on the type of life insurance, medical expenses may be covered. Also, if the insurance company provides a sufficient death benefit in the unfortunate event of death, your family may not be left in financial difficulty.

    In that case, you may not need to pay as much for personal injury insurance or passenger injury insurance in your car insurance. You should also review the coverage of your life insurance and make sure that it does not overlap with the coverage of your car insurance.

    Reassess your car insurance

    Reassess your car insurance
    Automobile insurance premiums are determined based on various conditions such as the driver’s age, range, mileage, driving history, etc. It is possible to reduce insurance premiums with some ingenuity, so it is important to carefully review your premiums while keeping in mind the key points.

    If you review your policy carefully, you should be able to see if there is any duplication of coverage or if there are any unnecessary special clauses attached. Especially when the renewal date approaches, you will receive postcards from the insurance company notifying you of the renewal, so it is a good chance to review your policy.

    It is often the case that the premiums can be reduced by reviewing your insurance. If a long time has passed since you signed a new contract, it may be better to change the contents of your insurance due to changes in your lifestyle.

    Buying a second car is also a good opportunity to reassess your options. Furthermore, if you are buying a new car, you may be able to take advantage of new discounts, such as discounts for new safety features.

    It may be a bit of a hassle, but even if it’s a small amount, if you keep paying it over a long period of time, it can add up to a considerable amount, so it’s worth reconsidering.

    summary

    ①Automobile insurance premiums are determined based on various conditions such as the driver’s age and driving history.
    ②To reduce insurance premiums, it is important to choose annual payments for mail-order insurance and keep coverage to a minimum.
    ③The range of drivers and taking advantage of discount systems are also key points for saving on insurance premiums.
    ④If you own two or more cars, you can reduce your insurance premiums by taking advantage of second car discounts or transferring your insurance grade.
    ⑤ Review the insurance coverage and compare insurance companies to choose the best insurance.
  • What types of car insurance are there? Introducing compulsory insurance and optional insurance

    What types of car insurance are there? Introducing compulsory insurance and optional insurance

    When you own a car, it is essential to have insurance. If you do not have insurance, you will have to pay a large amount of repair costs yourself if you get into an accident. However, there are many types of insurance, so you may have had trouble deciding which one is best.

    This article explains the different types of car insurance. In addition, it also explains special clauses that will give you more comprehensive coverage, so it’s a great reference for anyone wanting to review their current insurance.

    Understand the differences and types of compulsory and voluntary insurance

    First, let’s understand the different types of car insurance and their differences, because the coverage and subject matter vary greatly depending on the type of insurance.

    In particular, many people who have just gotten their driver’s license may not know what insurance they need, or may have little knowledge about insurance. Use the information below to learn more about car insurance.

    There are two main types of car insurance:

    There are two types of automobile insurance: “compulsory insurance” and “optional insurance.” The coverage and mandatory participation differ for each type.

    Compulsory automobile liability insurance is an insurance that all car owners must purchase, and it only covers bodily injury damages. On the other hand, voluntary insurance is not a legal requirement, but it is characterized by its ability to cover a wider range of risks, such as property damage damages and compensation for the driver himself. Understand the difference between the two and choose the insurance that is right for you.

    Here we explain these insurances in more detail.

    Compulsory automobile liability insurance (mandatory insurance)

    Compulsory automobile liability insurance is a type of insurance that all car owners are required to have. This insurance covers only bodily injury damages and aims to provide relief to victims of accidents.

    However, the scope of compensation is limited and does not cover property damage, injuries to the driver, damage to the vehicle, etc. Therefore, the current situation is that many people cannot receive sufficient compensation with compulsory automobile liability insurance alone and therefore take out additional voluntary insurance.

    Voluntary Insurance

    Voluntary insurance is insurance that you can take out to cover high compensation amounts that cannot be covered by compulsory insurance, or to deal with a wide range of risks. Unlike compulsory insurance, this insurance is optional.

    The insurance does not only cover bodily injury and property damage, but also various other types of compensation such as vehicle insurance and passenger injury insurance. By joining, you can significantly reduce the financial burden in the event of an accident, so many car owners also join voluntary insurance.

    Benefits of joining optional insurance


    Many people take out voluntary insurance because compulsory insurance alone does not provide sufficient compensation, but what are the benefits of voluntary insurance?

    In fact, voluntary insurance has the advantage of being able to leave the response in the event of an accident to a third party, and has compensation that can handle a wide range of risks. In addition, there are special clauses that can handle troubles when you are not driving, so you can own a car with more peace of mind.

    Here are three main benefits you can get by taking out optional insurance:

    Accident response is entrusted to you

    If you sign up for voluntary insurance, in the unlikely event of an accident, the insurance company will investigate the situation and negotiate with the other party on your behalf, leading to a smooth resolution. Since you do not have to negotiate a settlement yourself, the mental burden will also be reduced.

    In particular, in the case of serious or complex accidents such as chain reactions, specialist knowledge is required, so support from an insurance company is a major benefit.

    Able to handle a wide range of risks

    One of the benefits of voluntary insurance is that it covers things that compulsory insurance cannot. Compulsory insurance only covers bodily injury, but voluntary insurance can cover a wide range of damages, including property damage, personal injuries, and vehicle damage.

    For example, if you cause damage to someone else’s car or property, or if your car is badly damaged in an accident, you can use your insurance to cover the cost of repairs, helping you avoid unexpected, costly expenses.

    We can also help with issues that occur while driving

    Another benefit of voluntary insurance is that it offers special clauses that can handle accidents and troubles that occur even when you are not driving. For example, you can prepare for a variety of situations, such as being involved in an accident while walking or having your car damaged while parked.

    In other words, if you sign up for voluntary insurance, you will receive support for problems related to your car in your daily life. For this reason, many people sign up for voluntary insurance because they feel that the coverage provided by compulsory insurance alone is insufficient.

    When deciding which optional insurance to take out, consider your driving style and the risks involved, and choose the appropriate coverage.

    There are two main types of voluntary car insurance

    There are two main types of voluntary automobile insurance: “agency-based automobile insurance” and “direct automobile insurance.” If you understand the characteristics of each, you will be able to choose the insurance that suits you.

    Here we will explain in detail about agency-based car insurance and direct car insurance.

    ①Agency-based automobile insurance


    Agency-type car insurance is car insurance that is contracted through an insurance company’s agency. You can feel secure because the person in charge will directly consult with you and explain the coverage details before signing the contract.

    If you are involved in an accident, the response is smooth, and the staff will guide you through the procedures and how to respond, as well as provide assistance with settlement negotiations, providing extensive support.

    Even if you don’t know how to choose insurance, a person with specialized knowledge will suggest the best plan for you, so even those with little knowledge can join with peace of mind. Therefore, it is recommended for those who want thorough support or are unsure about choosing insurance.

    However, since agency-type automobile insurance incurs labor and operating costs, premiums are often set higher than direct-type insurance.

    ②Direct car insurance


    Direct car insurance is car insurance that can be purchased directly via the internet or telephone. By purchasing insurance via the internet or telephone, sales costs can be reduced and premiums can be kept low.

    Since the procedure can be completed online, it is perfect for those who want speed. In addition, the insurance coverage can be freely customized, so you can choose the coverage you need.

    You can easily compare plans online, so consider plans from multiple insurance companies and choose the insurance that offers the best value for your money.

    However, accidents are generally handled through call centers and online services, so it is not suitable for people who prefer face-to-face support. Also, you have to decide on the details of your compensation yourself, so you will need to have some knowledge about insurance.

    Voluntary insurance to compensate the other party


    We have explained that automobile insurance is divided into compulsory insurance and optional insurance. Among them, optional insurance includes “personal injury insurance” and “property damage insurance” that compensate for damage to the other party in the event of an accident.

    These are important insurances that compensate for damages that cannot be covered by compulsory automobile liability insurance alone. Let’s take a look at what they specifically include.

    Personal injury insurance

    This insurance covers any damages that exceed the compensation limit of compulsory automobile liability insurance when you injure a pedestrian or passenger in an accident. Therefore, it is essential to prepare for accidents and fatal accidents.

    For example, if a fatal accident occurs, a large amount of compensation may be claimed. Since there is a maximum limit for compulsory automobile liability insurance, any amount exceeding that limit will be covered by third-party liability insurance.

    It also covers medical expenses and permanent disability, providing appropriate compensation to victims.

    In addition, if a settlement negotiation service is included, the insurance company will negotiate with the victim on your behalf, preventing any trouble from occurring.

    Property damage insurance

    Property damage insurance is insurance that compensates for damage to the other party’s car or building in an accident. It also covers repair costs and loss of business, so be sure to set a sufficient amount of compensation in preparation for expensive damages.

    For example, if your car crashes into a store or factory, you may have to pay damages due to business interruption in addition to repair costs. Since there are cases where a large amount of compensation is required, we recommend choosing unlimited property damage compensation.

    In addition, damage to traffic lights or guardrails is also covered. In such cases, there is a possibility that local governments or companies will claim for damages, so if you join, you will be able to receive generous compensation.

    Voluntary insurance to cover yourself and your passengers


    Compulsory insurance is further divided into insurance that provides compensation for yourself, your passengers, and your vehicle in the event of an accident.

    From here on, we will explain the main types of optional insurance.

    Personal Accident Insurance

    Personal injury insurance is insurance that pays for injuries sustained by you or your passengers when you are involved in an accident. This insurance covers you regardless of the cause of the accident, even if you are negligent.

    The benefit is that it covers not only the car itself, but also medical expenses, hospitalization costs, and loss of business caused by an accident.

    In particular, even if the other party is negligent, you can receive compensation within the scope of the insurance amount regardless of your degree of negligence, which can reduce the burden incurred as a result of the accident. For example, if you suffer minor injuries in a vehicle collision, you can receive the necessary compensation from your own insurance before receiving compensation from the other party’s insurance.

    This insurance is important in case of an accident, so it is worth considering taking out.

    Passenger Accident Insurance

    Passenger injury insurance provides compensation for injuries to all people in a vehicle at the time of an accident.

    For example, if a driver has an accident and a family member or friend who was in the car with them is injured, passenger injury insurance will cover the medical expenses of the family member or friend and loss of work.

    The attractive point of this insurance is that it reduces the mental burden on all passengers in the car and provides quick support. This insurance is essential if there is a possibility that people who are vulnerable to the effects of an accident, such as children or the elderly, are in the car.

    Self-inflicted accident insurance

    Self-inflicted accident insurance is insurance that provides compensation even if you do not collide with another vehicle. For example, it applies to accidents that you cause yourself, such as hitting a guardrail or utility pole while driving, or hitting an obstacle on the road.

    This type of insurance does not cover damage to other vehicles or people, but only covers damage to yourself.

    Even if the accident is due to your negligence, it can be said to be effective in covering the risk of causing an accident while driving, as it will cover vehicle repair costs, medical expenses, and in some cases loss of business.

    It is especially recommended in cases where there are many single-vehicle accidents or if you are not confident in your driving, as it provides peace of mind.

    Uninsured Motorist Accident Insurance

    Uninsured motorist injury insurance applies when the other party does not have third-party liability insurance or does not provide sufficient compensation.

    This insurance comes in handy when the other party in an accident is uninsured or when the compensation is insufficient due to a large percentage of fault. In particular, as accidents involving uninsured vehicles are increasing, this insurance is essential to avoid the risk of not receiving sufficient compensation.

    By purchasing this insurance, you can receive appropriate compensation for damages suffered by yourself and your passengers, even if the other party does not pay sufficient compensation after an accident. It is a valuable ally, especially when driving in urban areas or crowded places, as it reduces the risk of collision with an uninsured vehicle.

    Voluntary insurance to cover car


    If you are looking for optional insurance that will cover your car, you should sign up for “vehicle insurance.”

    Vehicle insurance is a voluntary insurance that covers damage to your vehicle caused by accidents, theft, and natural disasters, and you can choose a plan based on the scope of coverage. It covers repair costs in the event of an accident or theft, reducing your financial burden.

    General vehicle insurance also covers repair costs after an accident and damage caused by natural disasters such as typhoons and snow.

    In addition, the total loss vehicle special policy will cover the cost of purchasing a new car and the residual value if your vehicle is completely damaged and cannot be repaired.

    As such, there is optional car insurance available, so choose a plan that suits your driving environment and risks in case of an accident.

    Special clauses that provide even more generous compensation

    In addition to the basic coverage of optional insurance, you can add special provisions to customize your insurance to better suit your needs.

    Special clauses are used to strengthen basic coverage, and can range from enhancing coverage to limiting the scope of coverage to reducing insurance premiums. Adding special clauses can greatly increase your sense of security.

    Here we will explain three special clauses that will provide you with more comprehensive compensation.

    Attorney’s Fees Special Clause


    The attorney’s fees special clause is a special clause that covers the attorney’s fees required when negotiating a settlement or litigating in a case of a hit-and-run accident.

    For example, if you are involved in a hit-and-run accident and have difficulty negotiating with the perpetrator or making arrangements with an insurance company, this will cover the cost of hiring a lawyer.

    In addition, if you have any problems with claiming after an accident or if you need to adjust the degree of fault, you can get the help of a lawyer, which will make negotiations go more smoothly. We recommend adding this special clause, especially if negotiations with the other party are complicated.

    Personal liability special clause

    Personal liability insurance is a special policy that covers damages caused to others due to accidents or troubles that occur in daily life.

    For example, it covers all kinds of liability that arise in everyday life, such as bicycle accidents, pets injuring others, or children damaging other people’s property.

    By adding this special clause, you will be able to live your daily life with peace of mind, knowing that you will be compensated even if you cause damage to someone else in an unexpected accident.

    This special clause can help support the financial burden, especially if you live with your family or have pets at home, as unexpected accidents and troubles are more likely to occur.

    Family Bike Special


    The Family Bike Special Clause is a special clause that provides compensation for mopeds of 125cc or less that are driven by the named insured or their family members. This special clause provides compensation for bodily injury and property damage caused by motorcycle accidents, as well as compensation for injuries.

    If you have a family member who regularly uses a moped, adding this special clause will cover liability and medical expenses in the event of an accident. Since mopeds are said to be particularly prone to accidents, using this special clause will help you prepare for the unlikely event of an accident.

    summary

    ①Automobile insurance is broadly divided into two types: “Compulsory automobile liability insurance” and “Optional automobile insurance”
    ② If necessary, you can get generous support by purchasing optional insurance.
    ③ Voluntary insurance is divided into two types: “agency-type automobile insurance” and “direct automobile insurance.”
    4. The optional insurance you should take out depends on whether you want to indemnify the other party or yourself.
    ⑤Adding special clauses will give you even more comprehensive coverage
  • Will help me get cheaper car insurance? The strange situation regarding car insurance in the USA

    Will help me get cheaper car insurance? The strange situation regarding car insurance in the USA

    The insurance industry is constantly changing at a rapid pace, with premium revisions and new product launches. With the recent advances in IoT and AI technology, the development of “telematics insurance” is also underway in car insurance, which offers lower premiums to drivers who rarely brake or accelerate suddenly. With these technological advances, the conditions that determine individual insurance premiums are expected to become increasingly complex and sophisticated. In this article, we would like to introduce a slightly unusual method of calculating car insurance premiums in the United States.

    What factors affect car insurance rates in California?

    Q: Automobile insurance premiums vary depending on various factors such as age, but in California, certain data is related to premiums. What is that data?

     [Explanation]
    In Japan, if you have a gold driver’s license or if you drive a small distance per year, you will receive a discount on your car insurance premium. The same discount services are available in the United States, where the premiums vary depending on the policyholder.

    In many states in the United States, you can get a driver’s license when you turn 16, so even high school students drive to school or to lessons. This is a little hard to imagine in Japan, but in the vast country of the United States, there are many areas without public transportation, and cars are a very important means of transportation, so even high school students actively obtain driver’s licenses and drive cars normally.

    For these reasons, in the United States, where students have many opportunities to drive cars, when students apply for car insurance, their premiums are discounted depending on their school grades. This is based on statistics that show that students with good grades are less likely to have traffic accidents.

    The coverage varies! What’s included in American car insurance?

    https://mortalgaming.online/will-help-me-get-cheaper-car-insurance-the-str/

    In California, it is mandatory to have automobile insurance, so you must take out insurance as soon as you buy a car. The insurance company will pay compensation when you are liable for damages in a personal injury or property damage accident. The amount of compensation for “liability” is determined by the

    minimum limit for personal injury and property damage, and the insurance premium changes depending on the amount of compensation. In addition, if you are stopped by a police officer while driving or when registering your car, you will be required to present your automobile insurance certificate, and if you do not have insurance, you will be subject to a fine. However, since

    “liability” is automobile insurance in case you are liable for damages, it does not cover your own medical expenses or car repair costs. Therefore, various types of compensation are available to protect yourself and your passengers.

    ■ Passenger Insurance (Medical)
    If the driver or passenger is injured in an accident, it will cover medical expenses and other costs up to the limit.

    ■Uninsured Motorist Insurance:
    Covers the policyholder’s medical expenses and damage to the car in the event that the other party is liable for compensation in an accident, but is not covered by automobile insurance and is unable to pay.

    ■Collision & Comprehensive Insurance:
    Covers damage to the car in the event of an accident, theft, fire, vandalism, etc. Insurance premiums are set in detail according to the year, model, and grade of the car.

    In addition, there are services that cover the rental car costs required to repair the car after an accident, and services that cover the towing costs of a car that is disabled due to an accident.

    Just like Japanese car insurance, you can choose from a variety of services according to your preferences.

    In the United States, there is a risk of accidents with uninsured vehicles.

    In Japan, there is a vehicle inspection system, and if you do not have compulsory insurance, you will not pass the inspection. In addition, when canceling compulsory insurance, you need a document proving that the car has been scrapped, and there is a system in place to prevent cars without compulsory insurance from driving on public roads.

    On the other hand, the United States also has a vehicle inspection system, but it is mainly an inspection to check the condition of the car, and in some states it is only a simple check. Also, since there is no system to check taxes and insurance enrollment like in Japan, there is no strict check on whether the car has liability insurance, which is actually mandatory. Due to these differences in the vehicle inspection system, even in California, the percentage of people without insurance is decreasing year by year, but it is said that one in seven people is uninsured as of 2015.

    Therefore, “Uninsured Motorist Insurance” to prepare for accidents with uninsured motorists plays an important role in avoiding risks.

    In both the United States and Japan, it is important to consult with an expert to determine the details of your compensation.

    In the United States, where there are various systems depending on the state, not only the laws but also the discount system for car insurance differs depending on the region you live in. Therefore, when choosing car insurance, it is important to use the consulting of the insurance company to have the best plan proposed to you.

    In Japan, by using the consulting of the insurance company, you can efficiently prepare compensation that suits you from a large number of car insurance.

    ■ Personal injury insurance
    A comprehensive plan is available that can cover traffic accidents while walking for your family. ■ If you subscribe as a special clause for

    personal liability insurance

    , you can cover liability in case you become the perpetrator in an accident while riding a bicycle. It can be quite difficult to choose the best compensation that suits your car life from the many car insurance plans. With the advent of the “telematics insurance” mentioned above, the car insurance industry is undergoing major changes, so why not take this opportunity to reconsider what compensation you really need.

  • [Working in the US] Anti-Money Laundering in the Insurance Industry

    [Working in the US] Anti-Money Laundering in the Insurance Industry

    When people hear the term “money laundering,” many know that it is illegal, but few people know what it means or what it generally entails.

    Financial professionals who sell life insurance and annuities need to understand the meaning and overview of the term.

    This is because life insurance and annuities can potentially be used as money laundering tools.

    This time, we have summarized money laundering and life insurance.

    1. What is Money Laundering?
    2. Money Laundering Structure
      1. Placement
      2. Layering
      3. Integration
    3. Money Laundering and Life Insurance
      1. The process of money loaning with life insurance
      2. Examples of life insurance being used for money loaning
      3. Other possibilities
    4. Money Laundering Regulation
      1. Bank Secrecy Act of 1970
      2. The USA PATRIOT Act of 2001
      3. FinCEN Final Rules
      4. Anti-Money Laundering Act of 2020
    5. summary

    What is Money Laundering?

    “Money laundering” is “the process of incorporating illegally obtained money into the legal monetary system while concealing its origin.”

    Money laundering is a necessary process from a criminal’s point of view, because money of unknown origin (unlaundered, “dirty” money) can easily be traced and therefore cannot be freely spent.

    In Japanese, this is called “money laundering.”

    Once the money has gone through this process, it appears legitimate and can be used or invested however you like.

    Money Laundering Structure

     

    There are countless ways to launder money, but it basically consists of three steps:

    • Placement: The stage where criminal proceeds are incorporated into the financial system.
    • Layering: The stage where the source of funds is obscured
    • Integration: The stage where funds are injected into legitimate economic activities.

    Placement

    Placement is the step that brings illicit cash into the legitimate financial system.

    The purpose of this step is to physically separate the money from the criminals, making their origins more difficult to discern if they are traced.

    This means avoiding financial accounts or products that record ownership.

    This is usually done by converting cash into cash equivalents such as checks, money orders, bank drafts, traveller’s checks and wire transfers.

    When moving large amounts at once, you may need to split them into multiple smaller transactions due to reporting and record-keeping requirements. This is characteristic of what happens during the Placement phase.

    Layering

    This is a process to further conceal its origin.

    Simply exchanging cash for money orders and depositing those orders into personal bank accounts does little to hide a criminal’s connection to the crimes.

    This process involves repeated transfers and the purchase of various financial products to obscure the source of the money.

    Cash Value Life Insurance and Deferred Annuity Contracts are used for this purpose.

    The insurance policies purchased may be cancelled immediately or held for an extended period of time.

    Anything that is held for a long time changes ownership frequently.

    For example, ownership of a life insurance policy may be transferred to a third party as a charitable donation.

    By obscuring the source of premiums paid, the transferred owner is more free to exercise contract privileges with withdrawals.

    Integration

    This is the final process.

    Here, the purified money makes its way into criminal hands and eventually into the financial system.

    Once the money has been laundered it can be used immediately.

    This money can be invested or used publicly, and questions as to its origin can be legitimately answered.

    Money Laundering and Life Insurance

    Money Laundering usually comes at a price, and by the time the entire process is complete, it may be worth much less than its original value.

    This is because those who provide money laundering are aware of the risks and importance of the service, so they charge a fee when laundering money or the money becomes worth less than its original value in the process.

    For this reason, life insurance and annuities are sometimes used for money laundering.

    There are cases where insurance companies sell life insurance without conducting detailed checks.

    The process of money loaning with life insurance

    Cash Value Life Insurance and Deferred Annuity Contracts allow owners to access funds through policy loans, partial withdrawals or complete surrender.

    In particular, free-look surrenders are more attractive to criminals because they allow them to avoid surrender charges.

    It will be considered a reasonable Business Expense for the privilege of accessing the contracted Value as needed.

    Regardless of the form of distribution, a check issued by the insurance company gives legitimacy to the payment.

    Funds obtained in this manner appear to be completely legitimate and can be sent or wired anywhere.

    Examples of life insurance being used for money loaning

    In the past, it has been revealed that drug trafficking organizations outside the United States have purchased large amounts of cash value life insurance in the United States, the United Kingdom, and other locations through a small number of insurance brokers.

    The policies were purchased with tens of millions of dollars worth of drug sales that were sent to the insurance companies by third parties around the world via check and wire transfer.

    Policyholders who were associated with drug trafficking organizations received checks or wire transfers from the insurance companies for what appeared to be legitimate insurance payments.

    Other possibilities

    • You can buy a life insurance policy and then cancel the policy during the free-look period to receive a refund of your premiums. The returned premium can then be used to purchase other assets or investments, adding a layer to the process and allowing the money to work its way into the financial system.
    • You can purchase a life insurance policy and use the value of the policy as collateral for a loan to purchase real estate. The loan is repaid by surrendering the policy, and you now own an asset that you can keep or sell at a later date.
    • Using the illegal funds, they may purchase life insurance policies from terminally ill insureds, designating an offshore company or a group of foreign investors as the beneficiary of the policy. When the insured dies, the proceeds are paid to the company or investors as a legitimate death benefit.

    Money Laundering Regulation

    Federal anti-money laundering laws have evolved over the past several decades.

    The history of AML regulations began in 1970 with the Bank Secrecy Act.

    The law that has the greatest impact on insurance companies is the USA PATRIOT Act, which is a direct successor to the Bank Secrecy Act.

    The USA PATRIOT Act created Financial Crimes Enforcement Network (FinCEN) regulations that govern AML requirements and responsibilities for insurance companies.

    Source: History of Anti-Money Laundering Laws (Financial Crimes Enforcement Network)
    https://www.fincen.gov/history-anti-money-laundering-laws

    Bank Secrecy Act of 1970

    The first significant federal AML law in the United States.

    Established a requirement for financial institutions to report large cash deposits.

    Initially targeted only at banks, it now requires financial institutions to keep records and report cash (or cash equivalent) transactions in excess of $10,000.

    The information provided will be used by domestic and international law enforcement agencies to identify and prosecute money laundering.

    What’s included:

    • Cash payments over $10,000 received in a trade or business from a single buyer must be reported to the IRS on Form 8300.
    • Companies and individuals with foreign bank accounts, brokerage accounts, mutual funds, unit trusts, or holdings totaling more than $10,000 must report their accounts annually to the IRS.
    • Banks are required to file Suspicious Activity Reports (SARs) about “suspicious activities related to possible violations of law or regulation.”

    The USA PATRIOT Act of 2001

    The Uniting and Strengthening America Act (The USA PATRIOT Act) is a law passed after the September 11, 2001 terrorist attacks.

    It was created to strengthen weaknesses in the U.S. economic system that may have contributed to this terrorist attack.

    Among its provisions, the USA PATRIOT Act amended certain parts of the Bank Secrecy Act to extend its application to non-bank financial institutions, including insurance companies and securities firms.

    Additionally, the act increased law enforcement’s ability to search electronic communications and medical, financial and other records.

    Importantly for the insurance industry, it expands the Treasury Department’s authority to regulate financial transactions, particularly those involving foreign individuals and entities.

    FinCEN Final Rules

    Due to the nature and complexity of insurance products, additional guidelines are needed to define how insurers should comply with AML requirements.

    • Developing and implementing anti-money laundering programs for insurance companies
    • Insurance companies report suspicious transactions

    Anti-Money Laundering Act of 2020

    The Anti-Money Laundering Act of 2020 (AMLA) further expands the Bank Secrecy Act and requires the adoption of additional priorities for anti-money laundering activities.

    One of the priorities, and one being addressed by FinCEN, is efforts to detect and eliminate cybercrime, including procedures related to cybersecurity and virtual currency considerations.

    The AMLA also includes the Corporate Transparency Act (CTA), which adds beneficial ownership reporting requirements.

    summary

    If a client purchases a product for the purpose of money laundering and you do not respond appropriately, you may be held legally responsible.

    If you work in the business of dealing with life insurance or annuities, you will not only need to obtain a license, but you will also need to have knowledge about money landering and be able to handle it appropriately.