Insurance Blog

Insurance Information Institute:

Love may be priceless, but unfortunately getting married can be very expensive. If you have recently become engaged or currently planning the wedding of your dreams, you should see if wedding insurance is right for you.

Wedding insurance is a form of special event insurance designed to provide financial protection if you have to cancel or postpone a wedding because of death or serious injury in the immediate family, the bride or groom is called to military duty, a natural disaster such as a hurricane or earthquake occurs on your special day or other insured disaster. One thing that is generally not covered, however, is change of heart.

Depending on the policy or level of protection you select, there may be the following coverages:

• Reimbursement of non-refundable deposits due to circumstances outside your control such as a death in the immediate family
• Damage to the wedding dress or other special wedding attire
• Theft of wedding gifts
• Expenses incurred to reassemble the wedding party to retake photographs because of damaged or destroyed film or videotape
• Professional counseling if the cancellation or postponement of the wedding causes severe emotional stress (A doctor’s note will be needed)

Posted by Angie on June 20, 2005 | 0 Comments

WISTV:

How can you keep a collision from becoming a financial disaster?

Consumer Reports Money Adviser Laura Washington says be aware, the state insurance requirements may leave you vulnerable. "If you own your own home, or if you have assets, they could be at risk if you're underinsured."

So what's sufficient auto insurance coverage for homeowners? For both bodily-injury and uninsured motorist coverage, you should be covered for $250,000 per person and $500,000 per accident.

Washington says, "It'll raise your premiums about ten, ten percent, but it's clearly worth it if it could, if it means saving your home."

And the Consumer Reports Money Adviser says another area where people are often underinsured is property-damage coverage. "States typically recommend between $10,000 and $25,000 worth of coverage. But we recommend $100,000 worth of coverage, just in case you hit a really expensive car.""

Posted by Angie on June 09, 2005 | 1 Comments

MSNBC: "Health insurance premiums will cost families and employers an extra $922 on average this year to cover the costs of caring for the uninsured, according to a report released Wednesday. With the added cost, the yearly premiums for a family with coverage through an employer will average $10,979 in 2005, said the report from consumer group Families USA... its study shows the problem is not restricted to the tens of millions of uninsured Americans. Rather, the problem affects everyone, because the insured subsidize the cost of care given the uninsured."

Posted by Angie on June 08, 2005 | 0 Comments

Forbes:

Soaring malpractice insurance premiums are discouraging many doctors from specializing in obstetrics and gynecology and also affecting where obstetricians are offering their services, a new study finds.

High insurance costs may eventually lead to a shortage of obstetricians, the researchers warn.

"The high cost of malpractice premiums is beginning to lead providers to drop or reduce obstetrical services. Our study presented evidence that high malpractice premiums affect where new obstetricians are locating and it may affect the supply in the future," senior author Dr. Scott B. Ransom said in a prepared statement.

...

Potential areas with looming obstetric-care shortages include states with the highest malpractice premiums such as Florida, Nevada, Michigan and New York, as well as the District of Columbia, the study found.

In 2004, Florida's average malpractice premium was $195,000, compared to about $17,000 in Oklahoma, one of the lowest-premium states."

Posted by Angie on June 08, 2005 | 0 Comments

Father Neuhaus:

A reader found this on the Internet, so it must be true. A man in Charlotte, North Carolina, bought a box of very expensive cigars which he insured against fire. Having smoked them, he filed a claim, saying they had been lost “in a series of small fires.” The insurance company balked, the case went to court, and the judge ruled in the man’s favor, noting that the company did not specify what is an “unacceptable fire.” The company was required to pay the fellow $15,000, but then had him arrested on twenty-four counts of arson. He was convicted and sentenced to twenty-four months in jail and a fine of $24,000. If true, it is a sobering tale, confirming me in the wisdom of smoking cigars that are inexpensive and uninsured.

Of course it's just an urban legend!

via Professor Bainbridge.

Posted by Dane on June 02, 2005 | 0 Comments

According to CNN Money, property insurance has always been a loss leader for the insurance industry, and now millions are finding themselves without a homeowners policy:

Non-renewals by insurance companies is a trend that's affecting homeowners far beyond the hurricane belt. A 2003 study by the Independent Insurance Agents & Brokers of America (IIABA) revealed that nearly 2.5 million Americans had lost their coverage during the previous two years.

Non-renewals follow two scenarios: The first involves homes in danger zones, such as flood plains or storm paths. Homeowners may lose their coverage whether they have made claims or not.

The second involves policyholders who file too many claims, the so-called "use it and lose it" phenomenon.

"It has been a very strange development," says Doug Heller, a spokesman for the Foundation for Taxpayer & Consumer Rights. "Consumers are being threatened with non-renewal for filing legitimate claims.""

Tips On Avoiding Non-Renewals:

• Be cautious filing smaller claims. If your loss exceeds your deductible by less than $200, consider paying out-of-pocket.
• Stick with one company: Companies may give long-term customers the benefit of the doubt and overlook minor blemishes on their records.
• Bundle coverage. If you have auto and life coverage with your home insurer, they may not want to jeopardize that business by cancelling your homeowners policy.
• Maintain your house. Upgrades of security systems, plumbing, and electricity, making sure the roof and gutters still function well, and trimming tall trees of dead branches can keep your house safer. Some upgrades even qualify for a premium discount.

Posted by Angie on May 26, 2005 | 0 Comments

Slate:

Insurance is not a word usually associated with the power and glory of Hollywood - at least not to outsiders. To insiders, especially those involved in the behind-the-scenes decisions of who will be the stars and what movies will be made, it connotes a sine qua non reality of the entertainment universe. After all, once the media dressing is stripped away, what is the New Hollywood about other than minimizing risk? The stars are no exception to this rule. Sure, it may help a career to have talent, a well-connected agency, and a hot media image, but unless an actor can get insurance, he or she can't play a part in a major movie.

To begin with, movies that receive outside financing from banks or other sources - which nowadays are most movies - need a completion bond. This bond guarantees the financiers that they will be repaid the entire cost of the production (including script development, finance charges, and bank interest) if for any reason a movie loses one of its "essential elements." These elements, which often include the star and the director, are defined by the guarantor that sells the bond. In the case of Terminator 3, the producers bought a completion bond from International Film Guarantors for $2.54 million that named Arnold Schwarzenegger as an essential element. If Schwarzenegger had been disabled during shooting or had abandoned the film for any reason, IFG would have repaid the bonded cost, which was $181.6 million."

Posted by Angie on May 26, 2005 | 0 Comments

National Federation of Independent Business: "One aspect many small to mid-size businesses overlook is risk transference. No major company Kuhn is aware of fails to transfer risk wherever and whenever it can. What should you do? At a minimum, ask your subcontractors to name you on their policies as additional insured on a primary/non-contributory basis. Ask the manufacturers of the products you sell or your suppliers of component parts to do the same. Verify the adequacy of their limits and follow up every year. You may believe they will balk at your request, but you will probably find they are doing it for your competitors. Review your contracts to verify you are passing on risk were appropriate and the contracts you are signing are not conferring liability for which you are unprepared."

Posted by Dane on May 26, 2005 | 1 Comments

AllBusiness:

Basically, three types of insurance are available to protect your business: property, liability and workers' compensation. Workers' compensation insurance is required by law in all 50 states. Although property and liability insurance are not always mandatory, it makes sense to protect all of your company assets with property and liability insurance.

Business owner's policies (BOPs) are insurance packages that provide both property and liability coverage at one affordable premium. These packaged policies are available to most small and medium-size companies and can be a good alternative to purchasing separate policies for liability and property insurance.

Read more.

Posted by Dane on May 18, 2005 | 0 Comments

Outside the Beltway: "In a simple insurance market people would purchase insurance and their premiums would be based on how likely they are to get sick. There would be no pooling outcomes. To see this suppose there is a pool of individuals, some high risk and some low risk for needing health care. In this pool everybody pays the same premium for their insurance. However, a competing insurance company could lure away the low risk individuals with lower premiums (and higher deductibles) leaving only the high risk people in the initial pool. With the depature of the low risk people from the pool, the premiums would increase in the pool. This is why you'll hear economists sometimes say that a pooling equilibrium is always broken by a seperating equilibrium. It is the "cream skimming" strategy above."

Posted by Angie on May 17, 2005 | 0 Comments

Outoor Release:

Understanding boat insurance can be confusing. But the smart boater can make the right insurance choice with these "Top Five Tips for Buying Boat Insurance" from BoatU.S., the nation's largest recreational boat owners association:

• Know thy insurer: Boat insurance can be "added on" to a homeowner's policy or purchased from an independent insurance agent or directly from a marine insurance specialist.
• Agreed Value vs. Actual Cash Value: These are the two main choices for boat insurance and depreciation is what sets them apart.
• Know the salvage truth: If the worst happens and your boat needs to be salvaged, you want to ensure that your policy covers salvage costs up to 100% of your boat's insured value.
• Speak to me in a language I understand: Don't treat boat insurance like other insurance. Make sure you understand exactly what is covered as well as what isn't covered.
• One size doesn't fit all: A bass boater may need fishing gear and tournament coverage as well as "cruising extensions" if they trailer their boat far from home. If you're in the hurricane belt, hurricane haul-out coverage makes the decision to safely store your boat ashore that much easier as a storm approaches....A good insurer will tailor your coverage to fit your needs, so there will be no surprises if the unexpected happens.

Posted by Angie on May 17, 2005 | 0 Comments

Vorlon Whispers:

It turns out that rich people need life insurance more than you and I.

I was chatting with my insurance agent this afternoon and he told me about a client that is worth probably $80 million. This person is taking out a life insurance policy worth probably $40 million.

One might wonder why someone with that kind of net worth would take out a life insurance policy worth that much money. This individual is taking the policy out to pay inheritance taxes. Life insurance proceeds to heirs are not taxed.

By taking out this insurance policy, this fellow gives his heirs the money to pay their inheritance taxes. That way they can keep the other assets that will be bequeathed to them.

Read more.

Posted by Dane on May 16, 2005 | 0 Comments

About:

Did you know in a standard homeowners policy, coverage limits for jewelry, furs, watches, and related items is only $1,000 combined? These and other limits are in place to encourage homeowners to buy additional coverage for valuable and hard to replace items.

Additional coverage can be purchased through a Personal Articles Form or other additional applicable policy.

...

Examples of Items That May Have Limited Coverage Under Your Homeowners Policy:

• Money
• Valuable Papers and Securities
• Boats
• Trailers
• Business Use Property
• Silverware
• Firearms
• Jewelry (including furs, watches, and related items)

Posted by Angie on May 13, 2005 | 0 Comments

MSNBC: "Pet insurance can be extremely worthwhile for many pet owners. But consider your situation first. Without pet health insurance, you face the possibility of one day having to fork over hundreds of dollars to repair Buster's leg or, worse yet, having to decide whether to spend thousands of dollars to save Frisky's life. The value really depends on the type of pet you have, its age and health (some breeds, older pets, and pets with chronic or terminal illnesses are usually not approved for coverage), and your personal feelings about pet health care....More and more companies are now offering pet insurance to employees. If yours doesn't and you are interested in the option, ask your human resources department to look into it."

Posted by Angie on May 12, 2005 | 0 Comments

Insurance Information Institute:

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Auto insurance provides property, liability and medical coverage:

• Property coverage pays for damage to or theft of your car.
• Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
• Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

Posted by Angie on May 11, 2005 | 0 Comments

Taking care of your teeth is important but can be expensive. There are two options available to help cover the cost of preventative care and dental procedures:

1. Dental Insurance is not readily accessible to individuals and families. There are annual spending maximums, deductibles, waiting periods for certain procedures, and limitations and exclusions on care. Dental coverage will include the cost of preventive services (such as cleanings and exams) at 100% after deductibles are met.
2. Discount Dental Plans are an ideal form of dental coverage for the benefits of common citizens when they are not covered at their work. The plans are primarily designed to provide consumers access to dental networks at reduced rates. These plans are affordable and are best for families and individuals.

Read more...

Posted by Angie on May 11, 2005 | 0 Comments

"Chimpanzee", originally uploaded by basykes.

Whittier Daily News: "As a West Covina man lies in a medically induced coma following a chimpanzee attack, a movement is percolating among state lawmakers mandating that animal sanctuaries carry liability insurance to operate...The Davises do not have medical insurance. And the operators of Animal Haven do not have liability insurance to help the Davises recoup the cost of his care....Now, two local lawmakers are working on legislation to make liability insurance mandatory. 'Regulations need to be tighter,' he said. 'People operating sanctuaries think they don't need it because nothing will happen. They put their resources someplace else because they do not care about the public.'"

Posted by Angie on May 09, 2005 | 0 Comments

Mercury News: "A Seattle company has started marketing a trip insurance policy designed specifically for the nation's 3 million time-share owners. The VacationGuard policy includes standard trip insurance features such as coverage for trip interruptions, emergency medical treatment, medical evacuations, and lost or delayed baggage. But the policy also includes special coverages for time-share exchange fees, annual maintenance fees, roadside assistance and even accidental damage to furnishings in the unit. Another unusual feature is that VacationGuard policies are purchased annually instead of per trip. A time-share owner using points to travel multiple times during the year would pay only once and be covered for each trip."

Posted by Angie on May 08, 2005 | 0 Comments

RiskProf: "The WSJ ($) reports that Allstate is offering  new kind of auto policy.  Last week I mentioned California's attempt at reducing insurer's incentives to drop people from their contracts after experiencing a loss.  Now Allstate is offering a policy that for a 7% fee will give you one "free" accident over the next three years.  This means that Allstate won't raise premiums if a driver in their premium plan has an accident.  For an additional amount one can get "unlimited" accidents.  So, if one knows that one is a bad risk and value insurance, then one will buy a premium policy.  Thus, insurers are able to get their premium increases up front without experiencing a claim or inducing consumer dissatisfaction.  Normally premiums go up after an accident and this may cause the policy holder to search for lower priced coverage.  Now, the company can charge ahead of time and make people think they are getting a good deal."

Posted by Angie on May 05, 2005 | 0 Comments

MSN House and Home: "Don't listen to the mortgage lender who insists that you insure your home for at least the amount of the loan balance. A home's replacement cost does not hinge on the amount of the mortgage, especially if you live in an area where home prices are appreciating rapidly. Insuring your home for more than its replacement cost may a violation of laws in your state."

Posted by Dane on May 05, 2005 | 0 Comments

What does your health plan offer you? Confused by the terminology? Here is a list of health insurance terms to help:

• Deductible: The deductible refers to the amount of money that the insured would need to pay before any benefits from the health insurance policy can be used.
• Co-insurance: This is the amount that would need to be paid by the insured before the insurance pays and in addition to the deductible.
• Co-payments: This is another term used for, or in place of, coinsurance.
• Out-of-Pocket: This is the cost one would pay out of their own pocket. An out of pocket expense can refer to how much the co-payment, coinsurance, or deductible is.
• Lifetime Maximum: This is the most amount of money the health insurance policy will pay for the entire life.
• Exclusions: The exclusions are the things that the insurance policy will not cover.
• Pre-existing Conditions: This is something someone had before obtaining the insurance policy.
• Waiting Period: This is the time one would have to wait until certain health insurance coverages are available.
• Coordination of Benefits: If the insured has available two or more sources that would cover payment for certain conditions, such being under a spouse's insurance plan along with their own, the insurance company would not pay double benefits.
• Grace Period: This is the amount of time one has to pay their health insurance premium after the original due date and before insurance coverage would be canceled.

Posted by Angie on May 04, 2005 | 0 Comments

"Sleeping Pups", originally uploaded by basykes.

Newsday:

The House of Representatives agreed and narrowly passed a bill that bans insurance companies from refusing coverage based only on dog breed. The bill passed on a 77-70 vote and it awaits action in the Senate.

The bill does allow insurers, however, to use breed when underwriting a homeowner's or renter's policy. For example, they could require owners of particular breeds to have their animals neutered or take the dogs to obedience training. It is part of an effort to reduce the possibility of the dogs biting someone.

Rep. Robert Megna, D-New Haven, the bill's main proponent, said five of the top 10 homeowner's insurance companies will not issue policies to people who own particular breeds of dogs, such as pit bulls and Rottweilers. Of the remaining five companies, some have breed-based underwriting criteria, such as requiring the dog be contained in a secure, fenced-in yard.

Megna said such breed blacklisting hurts the responsible dog owners. He said they are sometimes unable to obtain regular homeowners insurance and are forced to pay exorbitant rates in alternative insurance markets.

Posted by Angie on May 04, 2005 | 0 Comments

Covertheuninsuredweek.org:

The problem is getting worse. As the price of health care continues to rise, fewer individuals and families can afford to pay for coverage. Fewer small businesses are able to provide coverage for their employees, and those that do are struggling to hold on to the coverage they offer. It is a problem that affects all of us.

That's why Americans are coming together for Cover the Uninsured Week 2005. From May 1- 8, individuals and organizations from every sector of society will join together to tell our leaders that health care coverage for all Americans must be their top priority. The Week will mobilize thousands of business owners, union members, educators, students, patients, hospital staff, physicians, nurses, faith leaders and their congregants, and many others.

via Holiday Blog.

Posted by Dane on May 04, 2005 | 0 Comments

PR Newswire:

eHealthInsurance, the nation's leading source for individual and family health insurance today announced its sponsorship of a new Web log, or Blog, www.HealthyConcerns.com, launched by founder and blogger Elisa Camahort.

Healthy Concerns will provide a community-oriented place for people to share and learn about the potential pitfalls and ways to work within the complex health insurance market. It will feature insight and comments based on personal experiences from a mix of bloggers and consumers, as well as industry experts.

Posted by Dane on May 03, 2005 | 0 Comments

"The progress of my teeth", originally uploaded by knautia.

Georgetown Record: "Dental insurance in general is poor at best. When dental insurance was first introduced in the 1950's, the average dental plan gave benefits to individuals of about $1000 per year. The dental plans I see today range from $750 -2000 per year per individual, the average being $1000. So, despite time, inflation, cost of living, cost of services and increased premiums, the average remains the same. If dental insurance companies had kept up with inflation, that same $1000 then would be at least $5500 in benefits per year today. The fact of the matter is, dental insurance is meant to be supplemental and help with the cost of maintenance procedures and basic restorative care. There is no dental insurance available for people who require advanced treatment."

Posted by Dane on April 30, 2005 | 0 Comments