Archive for February, 2011

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AAIS Creates PUP Exclusion for Dogs

February 28th, 2011 by Iris | Comments Off | Filed in homeowners insurance, pet insurance

The American Association of Insurance Services, a national insurance advisory organization that develops standardized forms and provides the rating information used by more than six hundred property & casualty insurers, has announced the filing of three separate endorsements which allow insurance companies to exclude umbrella and personal liability coverage for damage or injury from dogs.

Specifically, AAIS is filing endorsements under its homeowners insurance program that exclude coverage for medical payments and BI/PD (bodily injury and property damage) that comes from “…direct physical contact with a canine or canines identified in the endorsement.”

The named insured must sign the endorsement to acknowledge the exclusion for it to be in force.

According to the instruction manual provided with the endorsement paperwork, program users are advised to specify distinguishing characteristics in addition to a dog’s name in order to have a definitive identification of an animal, since policyholders can change their pets’ names if they so choose.

As well, AAIS is filing two exclusions for dogs under it’s PUP, or Personal Umbrella Program. One of them excludes all coverage for BI/PD from direct physical contact with any canine, and the other excludes coverage with an exception allowing it IF the BI/PD is covered by other insurance, or would have been covered except for limits being exhausted.

The PUP exclusion with the exception is meant to correspond with the above-mentioned homeowners canine exclusion. If the AAIS homeowners canine exclusion is part of underlying insurance, the insurance company may still write umbrella policies to respond to dogs other than those named in the homeowners endorsement schedule.

If all of this makes you think insurance has literally gone to the dogs, you may be right.

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Friday Filmstrip: Homeowners Insurance and Pets

February 25th, 2011 by Iris | Comments Off | Filed in friday filmstrips, homeowners insurance

Most families own some kind of pet, but some homeowners insurance companies won’t cover you if your dog is considered a “dangerous” breed – Pit Bulls, Doberman Pinschers, Akitas, and Rottweillers are all among the breeds that may not be “insurable.”

This week’s Friday Filmstrip discusses that issue:

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Texas Increasing Insurance Requirements for Dangerous Pets

February 24th, 2011 by Iris | Comments Off | Filed in homeowners insurance

You might file this in the “only in Texas” category. Representative Harvey Hilderbran of Kerrville, TX, has filed legislation with his state that is meant to increase public safety and promote animal welfare by making the insurance and record-keeping requirements for privately-owned dangerous animals more stringent. By “dangerous animals” Hilderbran doesn’t mean vicious dogs, either, but “exotic” pets like lions and gorillas.

Specifically, the bill would increase the required insurance coverage for dangerous animals to guarantee that their owners could cover any bodily harm or property damage the animal may cause. As well, owners would be prohibited from housing dangerous animals within five miles of a church, daycare facility or school, and they must provide two acres of property per registered animal.

“Exotic” pet owners in Texas are already required to file a permit application with their local sheriff’s office or animal control agency, but Hilderbran’s bill would increase the required information that applicants must provide. Currently, the application asks for the animal’s species, gender, age, distinct color markings, and any other identifying information. The new bill would also ask that owners include information on conditions of sale and prior ownership of the animal.

Hilderbran explained, “Identifying the circumstances surrounding the acquisition of these animals helps us verify that the previous owner had a legal right to possess the animal and that it is not being sold through the black market.”

He also said that he is adding language to the bill that will increase the frequency of inspections and care standards for wildlife rescue centers, and make it illegal for such facilities to advertise themselves as both a rescue and a hunting operation.

Hilderbran explained that his bill has nothing to do with hoofed animals, and that he does not intend to alter the list of dangerous animals already included in the Texas Health and Safety Code. That list includes baboons, bears, bobcats, caracals, cheetahs, chimpanzees, cougars, coyotes, gorillas, hyenas, jackals, jaguars, leopards, lions, lynx, ocelots, orangutans, servals, and tigers.

As well, the bill would not apply to aquariums, zoos, or research facilities, only to private animal owners.

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House Advances Bill to Repeal Tax Reporting Provision in Healthcare Reform

February 23rd, 2011 by Iris | Comments Off | Filed in health care reform

Last Friday, the House Ways and Means Committee advanced a bill to repeal the tax reporting provision that was included in last year’s healthcare reform legislation. The Senate had already voted to repeal the 1099 provision requiring businesses to report on purchases of goods and services totaling more than $600.

President Obama said he supports the repeal.

Under current law, 1099′s must be filed for expenses paid to unincorporated entity, but the new requirement would require that expenses like phone and Internet services be filed starting next year.

According to Jimi Grande, senior vice president of federal and political affairs at NAMIC (the National Association of Mutual Insurance Companies), “This requirement provides no benefit to the businesses that have to file the paperwork or the taxpayers. Instead, it will be a massive drain on time and resources that would be better spent elsewhere.”

The bill was introduced by Rep. Dan Lungren (R – CA), and has 272 co-sponsors. It has since been sent to the House floor for debate and a vote.

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CA Insurance Commissioner Calls on Insurers to Invest in Community Development

February 22nd, 2011 by Iris | Comments Off | Filed in business insurance, health insurance

Dave Jones, the California Insurance Commissioner, has offered the insurance industry $4.67 million worth of tax credits to invest in under-served communities.

In a letter he sent to the CEOs of insurance companies doing business in California, Jones encouraged insurers to place part of their $4 trillion in investments into COIN – the California Organization Investment Network, administered by the California Department of Insurance (CDI).

Every year, the DOI (Department of Insurance) allocates $2 million in tax credits to support community development investments in the amount of $10 million. Because this program has not been fully exploited in recent years, CDI’s COIN program currently has $4.67 million available tax credits to support $23.7 million in community development investments. There is a deadline of July 1, 2011 to place investments into the program; after that other investors also have access to the pool of tax credits.

Under the COIN program, insurers put at least $50,000 on deposit with a designated Community Development Financial Institution (CDFI) for five years at zero percent interest. In exchange, the investor receives a state tax credit of 20% with an annual percentage rate of return of roughly 4.5 percent.

In turn, the CDFI’s then provide loans to non-profit organizations and small businesses that serve economically disadvantaged communities. The CDFIs serve as a bridge across the ever-expanding gap between loans and services available to those who are “economically mainstream” and those people and communities who are considered low-income. These loans help provide development services and technical assistance in these communities, as well as the money from the loans themselves.

These CDFIs include community development loan funds, credit unions, banks, microenterprise funds, corporation-based lenders and venture funds.

In a statement, Commissioner Jones said, “This is a critical program that benefits some of California’s most underserved communities, and so I want to encourage insurance companies to give back by investing in these communities. The state tax credit to encourage these investments has been underutilized in recent years, and it is long overdue that we get this program back on track. I call on all California insurers to examine their investment portfolios and invest in this program before June 30.”

Since 1997, 81 CDFIs have been certified by COIN as eligible for the tax credit program. Some of their investments in the past fourteen years include:

• A mortgage loan for a nonprofit residential alcohol treatment facility;

• Micro-loans of $500 to $5,000 to self-employed business owners;

• Loans for six childcare centers to serve 500 low-income children;

• Pre-development loans to Habitat for Humanity to construct affordable homes;

• A loan to a church to build a child care center for lower income residents;

• A loan for 953 water hook-ups in two small, rural communities; and

• A short-term loan to close escrow on housing for low-income foster youth.

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Video: Is Vision Insurance Important?

February 21st, 2011 by Iris | Comments Off | Filed in friday filmstrips, health insurance

In honor of Presidents’ Day, we’re doing an extra video post this week.

Should you buy vision insurance? Is it an important part of health coverage? This agent’s opinion is that it should never be the sole reason you choose a health plan.

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Friday Filmstrips: 6 Major Health Care Changes of the Year

February 18th, 2011 by Iris | Comments Off | Filed in friday filmstrips, health insurance

Last year, President Obama signed health care reform into law. If the Republicans in Congress get their way, this will be repealed, once again leaving millions of children without health insurance coverage. In the meantime, more of the elements of insurance go into effect this year. This video explains them:

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