Archive for January, 2010

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16 Months Later: Hurricane Ike Claims Still Being Paid

January 31st, 2010 by admin | Comments Off | Filed in flood insurance, homeowners insurance

The Texas Insurance Council has issued an update on the financial aftermath of Hurricane Ike, which struck Galveston on Sept. 13, 2008 calling it “the costliest weather catastrophe in Texas history by a large margin.” So far, the storm has toted up almost $12 billion in windstorm and flood insurance claims in the state. The windstorm portion of that number accounts for $9.8 billion, while the rest is due to flood insurance claims – almost 44,000 of them were filed after Hurricane Ike.

Much of the flood damage was due to the storm’s 16-foot surge, which destroyed businesses and homes on Bolivar Peninsula, as well as several communities surrounding Galveston Bay, along the Texas coastline, and inland from Orange to Freeport. In addition, more than half of Galveston Island was submerged by the rising water. Fortunately human loss was low – only 20 deaths were directly attributable to the storm, mostly from drowning, because the coastal residents took a lesson from Hurricane Katrina, and actually followed evacuation orders from the National Weather Service.

The Texas Department of Insurance reported that there were more than 800,000 windstorm claims from Hurricane Ike. Sixteen months after the fact, one insurer, the Texas Windstorm Insurance Association, is still receiving damage claims. Eventually, TWIA is expected to pay out almost $2 billion in Ike-related claims.

Texas wasn’t the only state heavily damaged by Hurricane Ike. The path of the hurricane after landfall took it up the Intersate 35 corridor, where it settled over the midwest dumping inches of rain, and causing more damage. In addition, neighboring state Louisiana reported $318 million in flood losses, while hurricane-force winds in Ohio created insured losses in excess of $1 billion, making it the costliest weather disaster in that state, as well.

While wind damage is generally covered by homeowners insurance, flood damage is not. Coastal residents in states like Texas and Florida are urged to examine their policies now, check to see if they live in flood zones where mandatory flood insurance is required, and update their coverage as necessary.

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Auto Insurance for Pets: a Growing Trend

January 28th, 2010 by admin | Comments Off | Filed in auto insurance, pet insurance

As animal lovers, most of us take good care of our pets: we feed them the best pet food available, make sure they get ample exercise and attention, train them to have good “house manners,” and make sure they’re adequately restrained when coming along for the ride in our cars or trucks. Until relatively recently, though, if our pet dogs or cats were injured during a stint as passenger, they were only covered as part of the “personal property” allowance in auto insurance policies.

It’s only in the last few years that insurance companies began to question what happens when pets are injured in car accidents, and Progressive Insurance was the first to do something about it, by included pet coverage as an option on their auto policies.

Since Progressive’s trend-starting move, USA Today reports that three other insurers have jumped on the pet coverage bandwagon, offering insurance of $500-$1,000 for pets killed or injured in traffic accidents, all at no extra cost to their customers, and with almost 200 million licensed drivers across the country (according to numbers provided by the Federal Highway Administration), people like Lori Conarton of the Insurance Institute of Michigan believe the market will become more and more competitive. “If other companies find that people want this type of coverage,” Conarton said, “they’re going to want to start offering it, too.”

So which insurers offer pet accident coverage?

Progressive was the first, rolling out their options in sthe summer of 2007. Miriam Dietcher, the company’s director of marketing explains, “We did it because we know how much our customers love their dogs and cats,” Deitcher says. “At first we provided $500 worth of coverage, but in March [2009], we increased that to $1,000, to make sure we’re covering even more.”

Auto-Owners Insurance and Farmers Insurance also offer coverage for pets injured in traffic accidents. “We estimate more than 63% of our customers have pets, and caring for them after an accident can be expensive,” said Farmers senior vice president Brian Dwyer.

And what about people whose insurance is with a carrier that does not offer pet policies? They can still file a claim under property damage, but it’s important to remember that what insurance companies consider legitimate property damage differs from state to state and insurer to insurer, and it’s not at all unusual for such claims to be denied.

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Faith Based Insurance? Be Careful

January 27th, 2010 by admin | Comments Off | Filed in advice and how-tos, alternative health plans

At a time when many eyes and ears are focused on Washington, D.C. and a final (at least for now) verdict on health care reform, hundreds of thousands of evangelical Christians are choosing another alternative. It’s called a faith-based health plan and while it can save you money on major medical expenses, there are a few things you should know.

As reported by ABC News last September, if you belong to a Christian health plan, members cover each other’s major medical bills via monthly donations to the plan, and they must donate even if they never set foot in a doctor’s office in a given month.

To join, you must be an evangelical Christian who goes to church, and you must promise not to smoke, drink heavily, or have sex outside of marriage, and you must be approved by your minister or pastor.

The catch is that there are no guarantees that your medical bills will be paid, because these plans are not regulated by the government, and technically, they’re also not insurance. ABC’s reporters discovered that some of these plan advisors have spent members’ money on cars, houses, and travel, while others, since they are operated on a cash-flow basis, can only pay out based on whatever cash is on hand.

Finally, there are the other caveats: faith based health plans generally don’t cover contraceptives, do not cover abortion (even if it’s medically necessary) and often won’t cover AIDS treatment, even though AIDS can be, and often is, contracted by heterosexual patients.

The bottom line? Join all the prayer circles you want, find another way to donate to your church and be involved in your faith community, and if you think you’re likely to have major medical expenses, stick with conventional insurance.

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Auto Insurance Increases in Canada and UK, Too

January 26th, 2010 by admin | Comments Off | Filed in auto insurance, insurance news

It may seem as if the United States is the only country suffering from a dire economic situation. Our auto insurance premiums rose in almost every state this year, as did our homeowners insurance premiums. However, we are not alone; what affects us, tends to affect the world at large. In 2009, Canada and the United Kingdom of Great Britain also saw rate increases.

On January 15th, the Canadian Press reported that the Finance Services Commission of Ontario approved increased auto insurance rates in the last quarter of 2009 that averaged 2.5%, while the overall increase for all of last year was 8.77% – a much sharper increase than 2008’s rate hike of 5.6%, and a significant change from the period from 2004-2006 where auto insurance rates in Canada actually went down.

Representatives of the Canadian government are quick to remind their constituents that current rates are roughly the same as they were in 2003, and that there are planned changes to auto insurance pricing that will go into effect this summer, and help stabilize costs and premiums.

If the nearly 9% increase in Canada has consumers worried, be glad you’re not in the UK. According to the Glasgow Daily Record, pricing in parts of the UK has increased to $564.19 pounds/year – almost 20% more than it was at this time a year ago, with young drivers (those aged 17-24) seeing an increase of nearly 25%, to an average annual premium of $1499 pounds.

The Daily Record gets its figures from the Consumer Intelligence market research firm, which also says that the smallest increases in insurance are in the premiums paid by mature drivers – those over the age of 65 – whose increases have been a mere 15%.

Overall, the average increase in the last year has been 20.1 percent for male drivers in the UK, and 19.1 percent for female drivers.

Ian Hughes, managing director for Consumer Intelligence, told the Daily Record, “The advent of price comparison websites had actually kept a lid on car insurance premiums for some time. But these figures show the upward pressure on pricing has well and truly broken through. The worry is this could result in more motorists choosing not to insure their vehicles and drive illegally, or feel that they can no longer afford to run a car.”

It would seem that the adage “times are tough all over,” is truly universal, at least when it comes to auto insurance premiums. How do you save money? The answer’s the same whether you live in Canada, the UK, or the United States: shop online, compare quotes, and ask for discounts.

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COBRA Subsidy Extension Continues

January 25th, 2010 by admin | Comments Off | Filed in cobra insurance, health insurance

If you’re currently using the existence of COBRA health insurance law to maintain insurance coverage after you’ve been laid off or fired, you’ll be glad to know that Congress ended weeks of uncertainty in late December, giving final approval to President Obama to sign into law a Department of Defense bill that included provisions to extend COBRA premium subsidies.

According to an article at BusinessInsurance.com, the measure, H.R. 3326, extended a 65% premium subsidy, originally established via an economic stimulus measure passed early in 2009, by six to fifteen months for employees who were “involuntarily terminated” from their jobs between September 1, 2008 and December 31, 2009. In addition, any workers who lose their jobs before February 28, 2010 will also be eligible for a 15-month subsidy. Without the extension, employees terminated after December 31st, 2009 would not have been eligible.

The extension of the subsidy is expected to offer significant financial relief to employees who lose their jobs and group health insurance during the first two months of this year, as well as the many workers who have already collected the subsidy for the past nine months, and were no longer eligible or were about to lose their eligibility to receive it.

Representative Joe Sestak (D – Pennsylvania) said in a statement to the press, “Losing one job’s is difficult enough. But losing one’s health care along with it and worrying about being able to get treatment for oneself and one’s family, or fearing bankruptcy in the event of injury or illness is something Americans should not have to cope with in this difficult time.” Sestak had previously introduced a COBRA premium subsidy extension measure, part of which was included in the military spending bill passed in December.

This new COBRA subsidy extension may not be the last such extension, however, especially if unemployment numbers continue to remain high. While statistics on how many laid-off employees are taking the subsidy is not available, a congressional Joint Committee on Taxation report, generated after approval of the original subsidy, contained estimates that about 7 million workers and their families would benefit, at a total cost of $25 billion. Another survey found that COBRA enrollment rates surged after the creation of the subsidy, with opt-in rates nearly doubling as a result.

From September 1, 2008 – February 28, 2009, roughly 19% of involuntarily terminated employees were enrolled in COBRA. In contrast, from March 1, 2009 when the subsidy became available, through November 30, 2009, the original expiration date, enrollment rates were averaging about 39%.

The subsidy reduces insurance premiums from roughly $400 (for an individual) to $1200 (for a family) to $260 (for an individual) to $780 (for a family) – a significant savings for people who no longer have a regular source of income.

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In an Accident? What Should You Do?

January 22nd, 2010 by admin | Comments Off | Filed in advice and how-tos, auto insurance

According to a survey done by the British auto insurance firm Swinton, up to 45% of commercial van drivers don’t exchange the required information when they’re in an accident, whether it’s serious or not.

Here in the United States, the statistics may not be quite so scary, but a significant number of drivers have found themselves sitting behind the wheel after a minor bump, wondering, should I report this fender bender?

The answer, probably unsurprisingly is “yes.” Why? Because if you don’t you leave yourself open to a lawsuit, or other financial repercussions.

If you are in an accident, even if it’s minor, what should you do?

  1. Call the police, if you’re required to do so in your state.
  2. If your cars are driveable, move them out of the roadway.
  3. Exchange your information with the other driver. This should include your insurance company information and phone number, as well as your name, address, and phone number. Make sure you get the same information in return. Also, take note of the license plate number of the other car.
  4. If there are any witnesses, get their information, too.
  5. If you have a camera on your phone, or have an actual camera in your car, take pictures of the scene, and any damage.
  6. Be sure to call your insurance company.
  7. If the police are called, cooperate fully with them.

Whatever you do, remain calm. If the accident is just a fender-bender, yelling at the other driver is only going to make things worse; if it’s really more serious, you’ll need to remain as rational as possible. Finally, it’s important that you never claim to be at-fault, even if you think you are. Instead, let the police and insurance companies work out the details.

- Get evidence – Use your camera phone to take photos

- Ensure you notify the police and your own insurance company

Phil Moss, Commercial Vehicle Manager at Swinton van insurance said: “Sub-zero temperatures across the UK are resulting in icy driving conditions which always increase the risk of an accident. Vehicle collisions can be very traumatic and the stress of the situation means people fail to take down the required information. It’s important that you take down all the details of the other driver, especially both their mobile and home telephone numbers as well as their insurance company details.

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Don’t Fear the Life Insurance Medical Exam

January 21st, 2010 by admin | Comments Off | Filed in health insurance, insurance facts, life insurance

Horror stories abound about life insurance medical exams. Smokers, you may have heard, never pass, and you don’t have to just be within normal weight ranges, but actually skinny or you get disqualified. We won’t even discuss the rumors about what happens if you took an antihistamine the day before you provided your blood or urine sample. With all these myths about what can cause you to be labeled “uninsurable” it’s no wonder people who are generally healthy are paying higher no-exam life insurance rates just to avoid being told “no.”

The reality is that if you’re reasonably healthy you have nothing to worry about when it comes to these exams. They’re fairly routine, and don’t take that long. Typically, they’ll include blood and urine samples, a blood pressure check, height and weight measurements, and a medical questionnaire. While people who are overweight, smoke, or are in poor health will generally end up being classified as “high risk” and paying higher premiums, most people have little to worry about.

Still, it pays to be prepared, so while you can’t exactly cram for a medical exam, there are a few things you can do to present yourself in the best possible light.

  1. Fast for at least eight hours before the exam for more accurate blood test results. The easiest way to do this is to schedule your appointment first thing in the morning, and skip breakfast.
  2. If you have to eat before your exam, keep it light: nothing heavy, and no caffeine.
  3. Avoid salt for 3-4 days before the exam; doing so might improve your blood pressure.
  4. Avoid alcohol for at least 24 hours before the exam, for the same reason.
  5. If you smoke, don’t puff anything for at least 30 minutes before your exam, since smoking constricts artery walls. Abstain longer, if you can.
  6. If you have an acute, temporary illness, like the flu or strep throat, reschedule your exam, as either the illness, or the drugs you take to treat it may affect the results of blood and urine tests.
  7. If you’re female, and have your period, be sure to inform the examiner (generally a nurse) as this will affect your urine test.

Remember that an insurance medical exam is never a substitue for an actual wellness exam, nor is it a measure of your total health, just a snapshot of your condition at a specific moment in time. Either way, there’s nothing to fear in such an exam.

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Women: Check Mammography Coverage Before Choosing Health Plan

January 20th, 2010 by admin | Comments Off | Filed in health insurance

Whether you’re male or female, choosing between hmo and ppo health plans can be difficult. For women, however, it’s important to take a close look at covered preventive services before selecting a plan? What’s a preventive service? It includes things like mammograms, which, until recently, were considered routine wellness care for women over the age of 40.

Late last year, however, the U.S. Preventive Services Task Force declared that mammograms aren’t actually all that helpful, especially for women under the age of 50. Just before Thanksgiving, 2009, they announced that the tests don’t need to be recommended for non-high-risk (no family history of breast cancer) women between the ages of 40-49, and for women aged 50-74, mammograms are now recommended biannually (every two years) , instead of every year.

Of course, if a woman wants annual mammograms, she should get them.

In terms of changes to health insurance coverage, there’s very little risk that your existing plan will drop your coverage, or deny a mammogram if your doctor recommends it. However, if you are shopping for a new plan, you should be certain to check the preventive services listings and know exactly when and how often mammography is covered before you commit.

While all 50 states mandate some kind of mammography coverage, the details of mandatory preventive services vary from state to state. You can check the listings for your state at the website for the Council for Affordable Health Insurance.

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Arizona Drivers: Uninsured? It’s Going to Cost You!

January 19th, 2010 by admin | Comments Off | Filed in auto insurance, insurance news

Uninsured motorists in Arizona have a new law to contend with: under a change in state insurance law which went into effect late in 2009, drivers who are convicted of driving without proof of insurance will face an automatic 90-day long suspension of their licenses.

Before the new law took effect, judges had the option to waive license suspensions if the cited driver purchased insurance, and provided proof of coverage, at the time of sentencing, but the new law takes that option away from judges, and gives the responsibility of suspending licenses to the Arizona Department of Motor Vehicles, which, according to Somerton Municipal Judge Manuel Figueroa, in an article in the Yuma Sun, makes the three-month suspension virtually automatic.

Judge Figueroa also said that uninsured drivers are getting a rude awakening in court because the change in the law has not been widely publicized. “This penalty continues to surprise motorists who have been accustomed to judges being flexible,” he told the Sun. He added, “This concerns me a lot, because this change was not published. We ourselves were surprised by it. We didn’t find out until the law was in effect, a month after the act. It’s affecting and will continue to affect thousands of people across the state.”

But how big a problem is this for Arizona? Capt. Eben Bratcher, spokesman for the Yuma County Sheriff’s Office, told the press that deputies issue citations for not having insurance, or proof thereof, on a “fairly regular” basis.

“It is more common that the motorists are just being careless and aren’t carrying their proof of insurance in their vehicle,” Bratcher told reporters. “There is also a citation for that.”

Bratcher also pointed out that while the new version of the law may not have been well publicized, Arizona has had a mandatory insurance law requiring all drivers to have liability insurance at a minimum, for many years. “We strive to keep up with all the changes in the law and once they become active to start enforcing them,” she said. “While we do recognize there are changes in the law that require a grace period, one isn’t needed in this case because having automobile insurance has been the law for many years.”

Under the mandatory insurance law, which covers motorcycles, mopeds, and golf carts, as well as cars and trucks, the required minimum liability insurance is $15,000 for bodily injury per person, $30,000 to cover bodily injury for more than one person and $10,000 for property damage.

In addition to a 90-day suspenion of driving privileges, convicted uninsured motorists are subject to a fine in the amount of $995.20, though this can be reduced to $231.60 upon presentation of proof of insurance, and a record that has no convictions for lack of insurance in the previous 39 months.

What do the judges think of the new law? Figueroa says they’re a bit frustrated by the change, “…because in the courts there’s nothing we can do. In my personal opinion, there are more important things that we should be doing to protect ourselves, but whatever, we will enforce this statute.”

Bratcher, on the other hand, simply stressed the point that drivers who have insurance, but aren’t carrying proof of coverage will not lose their driving privileges, though they would still have to pay the reduced fine. Only motorists who are completely uninsured will be subject to the license suspension. “It is a driver’s responsibility to carry their proof of insurance with them at all times,” she reiterated.

But Figueroa has another concern: even though lack of proof of insurance is not punishable with jail time, driving on a suspended license is. “This law is so drastic that it’s going to create another level of criminal offense,” he cautioned. “That’s why we recommend that people not ignore these infractions, and that they come to court so we can explain to them the situation and their options.” He added that in addition to the loss of driving privileges, drivers who are cited for lack of insurance will end up paying more in fines than they would have in insurance premiums.

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Crash! The Doctor (or Laywer) Did It!

January 15th, 2010 by admin | 1 Comment | Filed in auto insurance, insurance facts

When considering how to get auto insurance discounts many of us are advised to ask about credits or discounts based on what we do. Teachers, for example, often earn insurance discounts.

Would it surprise you to know that there are also occupations that can cause your insurance to increase? It’s true, according to information compiled last year by Quality Planning Corp, a company that provides research support to the insurance industry. They’ve amassed data on the rate that people in different professions tend to have car crashes – and Doctors and Lawyers topped the list.

Who else do you want to avoid while driving? Here’s the top ten list of the most car accident prone professions, based on annual crash rates per one thousand members of each profession.

  1. Doctors: 109 accidents and 44 speeding tickets. Too many hours on their feet, or too many distractions?
  2. Lawyers: 106 accidents and 37 speeding tickets. And you can bet, they’re likely to sue if they don’t believe they’re at-fault.
  3. Architects: 105 accidents and 72 speeding tickets. Somehow, I don’t see them racing to an architectural emergency, drafting pencils in hand.
  4. Realtors: 102 accidents and 39 speeding tickets. Maybe they need to focus on the road instead of the deal?
  5. Enlisted Military Personnel: 99 accidents and 78 speeding tickets. Leftover adrenaline, maybe?
  6. Social Workers: 98 accidents and 33 speeding tickets. Apparently they’re too wrapped up with the concerns of their charges, to take charge on the road.
  7. Manual Laborers: 96 accidents and 77 speeding tickets. Okay, we know you’re paid by the hour, but… (Seriously, this may be due to long hours, and commutes in low-light conditions.)
  8. Analysts: 95 accidents and 40 speeding tickets. Put the calculator down, and pay attention to the road.
  9. Engineers: 94 accidents and 51 speeding tickets. Shouldn’t they understand the concept of objects in motion?
  10. Consultants: 94 accidents and 50 speeding tickets. Take some advice: consult your speedometer and the view out your windshield from time to time.

Of course, these professions merely represent the top ten. Others that made the list, but aren’t ranked quite so highly (or is that poorly, all things condsidered?) are: accountants, politicians, firemen, law enforcement personnel, salespeople, librarians, nurses and dentists.

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