Insurance – Auto, Life, Home Owner, Health

Comparing Life & Health Insurance Quotes

2008-09-26T06:59:00.005-07:00

None of us knows how much time we have left on this planet. The good news is that your chances of living longer have never been better. Most people nowadays are likely to live to around 75 to 80 years of age. The bad news? You can never forecast when you're going to be hit by a bus or succumb to a mystery virus.

So you should always make sure there is sufficient life insurance and cover against your succumbing to a serious illness or losing your livelihood that you can provide for your family.

So you should always make sure there is sufficient life insurance and cover against your succumbing to a serious illness or losing your livelihood that you can provide for your family. Life insurance won't replace you, but it will replace your money-earning capacity.

As well as buying life cover, you can purchase critical illness policies that pay out a lump sum if you have a serious illness, such as a heart attack or cancer, and survive for a month. Some policies also pay if you die during the policy period. The same huge range of prices exists, so never, ever go for the first quote you get.

Some policies, known as permanent health insurances or income protection plans, promise to pay a monthly sum until your normal retirement age if you can't work due to illness or injury. These policies can be expensive, especially for women because insurers think women are ill a lot more often than men.

So how much life insurance should one have?

This will depend upon the factors - your age, the number of dependents you have, your income and your outstanding debts.

People with young families need life insurance more than people in their forties and fifties whose children have left the family home. For a young family, the loss of a parent could mean that the surviving partner must try to maintain the family's standard of living for 18 years or until the youngest child becomes independent. So a realistic level of life insurance cover is a must. For parents in their forties and fifties protection is still important, although cover does not have to be so extensive.

The more dependents you have, the more cover you need. However, insurance bought to cover the cost of bringing up your children should be timed to end when they become self-supporting, usually at 18.

The level of replacement income your partner will need if you die will be an important factor when determining the amount of cover required.

If you die, it is imperative that your surviving partner is not left with a financial millstone such as a large mortgage. Life insurance should clear such debts in the even of your death.

If I take out life insurance, will I need to have a medical?

Not necessarily. You may be asked a few medical questions when you complete the insurer's application form. If the insurer needs further details, it may consult your doctor or ask you to have a medical. If you have suffered from illness in the past or are excessively overweight, your premiums may be increased to reflect the greater risk you represent to the insurance company. In some cases an insurer may refuse cover altogether.

Insurance Giant AIG "Restructuring," What's Happened and What's Going to Happen?

2008-09-26T06:59:00.004-07:00

The world's largest insurer is looking at "options" after it's stock fell 45 percent in a week's time, and even 18 percent in one day. AIG has netted losses of about $18,000,000,000 over the last three quarters, linking its problems to credit default swaps tied to the present crisis in the subprime mortgage market.

Robert Wilumstad, who took over as AIG's cheif executive in June, has implied that he is willing to shed some of the company's less profitable ventures, stating "We are conducting a comprehensive review of all AIG's businesses with the objectives of improving results, reducing AIG's risk profile and protecting our capital base."

The good news for AIG insurance customers is that this downturn has not affected the quality of the AIG insurance franchise. The bad news, however, is that this is obviously not over. After raising $20 billion dollars two months ago, analysts say it still may not be enough for the financial giant to recover its loss. AIG is also reportedly seeking $40 billion dollars in emergency funds to help the company avoid a credit rating downgrade, which would make it EVEN HARDER for the company to raise money. The problems don't seem to be ceasing soon, as investors are becoming increasingly fearful of bailing out tumbling high-dollar stocks.

The bigger effect on the economy and the unemployment rate seems imminent, as the situation can be summed up by chief executive Wilumstead's words from about a month ago, "a less complex AIG would be a better competitor." What will happen remains to be seen, an announcement is expected later in September.

Better Business Efficiency With Insurance

2008-09-26T06:59:00.003-07:00

When you eliminate risk from the equation, businesses are able to operate more efficiently. Here is a look at why.

Price equals efficiency

One thing to consider when you are looking at insurance and how it improves efficiency is the cost. The cost of an item directly impacts how efficiently the creation and distribution of the product is. The less risk, the lower the price of an item, while the higher the risk, the higher the price. If you are too concerned with the risk of a product, the whole system slows. Take away some of the risk, and you are able to focus on the smaller details that help a business to run efficiently.

An example - exports

Let's pretend that you have decided to invest in an exporting business. You know that the business will be successful and that you will easily make your money back and then some. However, you then think of all of the risks entailed - what if the ship catches fire or sinks? The delivery trucks are robbed? Products are damaged by the weather? Now the investment seems more like a gamble. With insurance, however, these risks are eliminated and you can invest freely without worry.

Many businesses would not want to risk shipping their items across the ocean if they didn't have some form of insurance, similar to the idea that somebody would not want to drive across the country without some kind of cheap auto insurance. It also goes further than that. No one would trust money or important duties to someone else, wasting valuable time doing the jobs themselves. Small businesses would go under with one workman's comp claim.

Employers and employees

Thanks to insurance, business partnerships are more attractive. This is because the heirs of a business may not want to continue if one partner dies. They would then ask for their share of the assets. Without insurance, the partners would have to try to come up with money, which could lead to difficulties for the business. However, if the business owner had a life insurance policy, the heirs are able to collect their money immediately without putting the business at risk.

In addition, some businesses opt to pay for insurance for the employees. This often causes the employees to believe that the company is interested in their well-being, which can lead to improved employee retention and productivity.

Merchants and loss

If a company extends credit to a customer, they are making the assumption that the customer will pay them back. They know that this doesn't happen, however, and a certain percentage of money will be lost. Therefore, the smart business thing to do is to factor this loss into the cost of the product.

However, there is always the worry that the cost increase will not match the losses. One or two bad customers can cause an otherwise good business to go under. By having a credit insurance policy, the business owner can help reduce this risk and make sure that his business continues to operate.

Is Your Insurance Safe?

2008-09-26T06:59:00.002-07:00

In this environment it is fair for families to question whether or not the insurance that they have paid into for years and years will be there when they need it. The upheaval of the financial services industry which sparked the demise of Bear Stearn's, Lehman Brothers, Fannie Mae, Freddie Mac Merrill Lynch and AIG, the first insurer to go off the board, is sparking fear amongst the owners of insurance policies and it is quite understandable.

While Senator's Obama and McCain are running around trying to make political hay from the situation by blaming this person or that for the problems we find ourselves in, many of us are looking for real answers to real questions that will affect our lives and our families. We're not looking for a promise to do this or that that will probably be forgotten in a week or two.

So lets clear a few things up.

State laws are designed to protect the interest of policyholders first, before investors. The number one job of state insurance regulators is to make sure that the insurance companies that operate within their state are financially sound. If there is the possibility that a company will not be able to fulfill the promises it made to it's policy holders, the regulators will step in.

The regulators have numerous actions they can take to prevent failures. This includes taking over management of the insurance company through a conservation or rehabilitation order with the goal of being able to get the company back into a strong financial position.

Claims from individual policyholders are given priority over other creditors. In the event that there is not enough money in the insurance companies accounts to pay a claim, the state has a safety net in place to protect the consumer and it's called the state guaranty fund.

Every state has a fund of this type. Insurance companies pay for the fund with a fee of 1-2% of the net insurance it sells in that state. So every state is different. If an insurance company is unable to pay a claim, the guaranty fund will pay instead subject to certain limits. These limits are different for every state but upon investigation $300,000 for property casualty and $500,000 for life insurance and annuity contracts seem to be the norm.

Each state has its own plan though and it can vary substantially from those limits I mentioned above. For instance, some states don't cover annuity benefits at all, and some do. Some may have a limit per person, or a limit per policy so someone may own three policies and get paid for all three.

It is important to remember that these do not replace your current policy, more so back up your policy with another type of substitute coverage. If you have a $2,000,000 life insurance policy, you may only collect $500,000 if the state is required to use the state guaranty fund to pay you.

Client's assets invested in variable annuity separate accounts are not subject to creditors and are segregated by law and protected although still subject to market performance.

Fixed annuity accounts and all fixed products are invested in the insurer's general account and subject to creditors. These assets may be used upon the approval of state regulators for liquidity concerns of the insurance company.

Death benefits on both annuities and life insurance are funded in part by the insurers' general account and may be reduced if the insurer goes into receivership.

If there was ever a time to educate yourself about your state's policies for paying a claim from the state's guaranty fund, it is now. Insolvency is an unfortunate reality. Things may calm down or may get worse. I will not be the one to predict that, but I want all to understand that when it comes to your ability to collect a claim from a troubled insurance company, your state has an option and it's best to understand your states particular rules and claims paying practices.

10 Tips on Choosing Boat Insurance

2008-09-26T06:59:00.001-07:00

Boat insurance is a necessity not luxury. It protects you from several problems and ensures that the boat is protected too.

The field of marine or boat insurance offers many policies and it is important for you to choose the right policy and coverage.

Before investing in boat insurance you should think about:

1. The kind of coverage you want. Jot down details like type of boat, year of manufacture, no of owners, use and so on as well as record. Go through various insurance company profiles online and offline to locate leading insurers who do offer insurance coverage for the model of boat you own.

2. Once you have a list of insurance companies then contact then online or offline or through authorized agents. Ask for a brochure and policy draft so that you can determine aspects like coverage, facilities, premiums, and so on.

3. Make a comparison of at least 3-4 insurance policies. Compare costs as well as coverage. This will help you locate a policy for the boat that offers maximum coverage for an affordable sum.

4. Take the help of a customer care person or insurance agent. They will be able to get you the most suitable insurance policy for your boat. Since, they will be able to match your personal needs to insurance coverage offered by companies.

5. Know what coverage the kind of boat you own needs. Log on to the World Wide Web and educate yourself on boat insurance, deductibles, ways to get savings and more. Even something as simple as clean driving record, safe parking of boat could get you extensive savings on boat insurance.

6. Find out what agreed value/stated value; actual cash value; and exclusions and deductibles mean and how hey affect you.

7. Ask about umbrella policy. Umbrella policies are affordable around USD 150-500 per million.

8. Most policies define navigation limits. Understand what it means as well as terminology like brown water and blue water.

9. Ask about state and area limitations this will restrict use of the boat to certain areas.

10. Buy a boat insurance policy from a company that has a good rating and is known to practice fair business norms.

To enjoy ownership of a boat you need to ensure that your insurance policy works for you and that your interests and the boat are well protected.

The internet has several websites that are insurance directories. These showcase leading insurance companies as well as a wide range of boat insurance policies. There are online tools that enable users to get multiple quotes for boat insurance and to compare insurance products. Articles and boat insurance tips are hosted to educate boat owners. These sites are user friendly and will answer questions and clarify doubts for no fee.

So before purchasing boat insurance you must know what your options are and get the most comprehensive insurance coverage for the lowest cost possible.

Online Motor Insurance Search

2008-09-05T09:01:00.001-07:00

It can be a thoroughly baffling business conducting your own motor insurance search for the best buy. Although it is a very competitive market, and this means that there is a clamour of providers all claiming to offer the best deals in motor insurance, the sheer number of insurers and the proliferation of different insurance packages makes choosing a potentially hit-and-miss affair. This is when an experienced, professional insurance broker can come to the rescue and help you make an informed and reasoned choice - ensuring you get not only the insurance cover you need, but also the best value for money into the bargain.

The first thing an insurance broker will need to establish is the best type of car insurance that best suits your needs. If the vehicle is old, worth very little and you simply cannot afford any better insurance, then the discussion with the broker can be kept very short as you opt for the cheapest possible, most basic, third party cover. This will ensure that you meet the minimum legal requirement for insurance - your liabilities for any injuries you cause others (including passengers in your own car) and damage to third party property will be adequately covered.

The search can be similarly short and straight forward if you need the slightly wider protection offered by cover against the risks of third party, fire and theft claims - which means that you would at least be compensated up to the value of your vehicle if it is lost or damaged through fire or theft.

The insurance broker will truly come into his own, however, if your search is for fully comprehensive motor insurance. Since there are more than a hundred companies offering comprehensive motor insurance, each with a number of different packages and each package offering various optional extras. A successful search, in this case, relies on your deciding just what elements you are likely to need.

The principal feature of comprehensive insurance, of course, is that it offers protection for a considerably wide range of risks, even when the loss or damage has been caused by the policy holder's own fault. Therefore, this will cover accidental damage to your own car, including the loss of or damage to any personal possessions left in the vehicle; personal accident benefit for serious injuries you might sustain in an accident; and cover for any medical expenses you incur.

Although these are the core benefits generally included in all forms of comprehensive cover, it is important to remember that insurers differ with respect to the maximum levels of benefit payable and to the additional features available under the policy. Some of these might be optional extras, for which an additional premium will be payable, and could include: no claims discount protection; the provision of a courtesy car if your own needs to be taken to a garage for repairs or following a theft; breakdown or roadside assistance; legal expenses cover or even an extension of the insurance cover while driving abroad.

With a selection from so many variables, therefore, a motor insurance search for the comprehensive cover that suits you, your car and your particular needs could well benefit from the advice of an experienced insurance broker.

Consumers Run the Show

2008-09-05T08:59:00.002-07:00

It's not just California insurance customers-all insurance consumers are constantly seeking ways to lower their insurance costs. The rub is this: with lower premiums come reduced services, more complicated plans, and higher out-of-pocket deductibles and co-pays. These factors can combine to make life most complex when you need it to be the simplest-in the wake of a traumatic accident or severe illness. Due to these complications, many California insurance consumers opt to stick it out with higher premiums, choosing convenience over financial wisdom.

One of the positive developments of the past decade has been a vehicle designed to assist Americans in their quest for medical self-management and lower insurance prices.Health Savings Accounts (HSAs) are a relatively new development in the California insurance market, allowing consumers to accumulate tax-free savings toward the resolution of future medical problems. These plans link a low-premium, high-deductible insurance plan to a tax-free health savings account, which is directed by the account owner, rather than an insurance bureaucrat in an office miles away. Over three million Americans are already taking advantage of these new insurance plans, happy with a choice that finally offers financial wisdom and convenience.

Each year, holders of HSAs can contribute $2900 for individuals or $5800 for families. These contributions are completely tax-free, as are the earnings they produce. And as long as any withdrawals are used for documented, legitimate medical expenses, they are tax-free as well. That fact remains true even if the withdrawals are used for alternative or preventive measures that most standard health insurance policies don't cover.

And HSAs are employer-independent, following the policyholder from job to job and from the workforce into retirement, completely eliminating the hassle and nervousness of suffering through "probationary periods" every time a career change necessitates a difference insurance policy.

Accounting For Insurance Claim Settlements

2008-09-05T08:59:00.001-07:00

Insurance is a necessity in any business. Businesses cover themselves against losses such as fire, theft and unexpected natural disasters. It is with the bookkeeping or accounting that owners get it wrong.

On successful insurance claims, a payment is normally made to the insured. My experience has led me to believe that small businesses have no clue, as to how, to account for insurance settlements. Most businesses reflect the payment as income.

Not only would this be deceptive but also violates International Accounting Standards. Since the transaction has everything to do with assets and nothing to do with income, it should be adjusted against assets. Erroneous accounting for assets might prejudice the business further in future, if similar insurance claims are made.

Insurance companies settle claims on assets, on its book value and not its costs. (And yet the asset was insured on its cost at date of purchase). Whereas this principle might vary from country to country, book value is widely accepted as the norm. Since most small businesses fail to maintain proper fixed assets registers, insurance companies perform "desk top valuations", or make an "estimate", on the book value, mostly much lower than its "real" book value. Without proper records, the claimant cannot debunk the assessor's final conclusions.

Before I loose you in a sea of confusion, let me elaborate. If an asset is on your books at least, without the asset register, but you have no purchase date, and this asset is lost due to theft, no accurate wear and tear can be furnished. Furthermore, if a claim is settled, and reflects as "income", what happens to the asset that was stolen, but still reflects on your books?

Many reading this article could not care a hoot about the number crunching involved, but please stay with me for a minute. You might not care, but an investor, a bank and yes, the insurance company might pick this up on your financial statements when they demand your reports.

The method used to account for insurance claims is the "disposal method". Any asset subject to an insurance claim should be transferred to a "Disposal Account". Depreciation on the asset for the relevant period is calculated, and credited to the disposal account with the insurance settlement. The cost, less depreciation equals book value. Any settlement amounts over or under book value, will result in a loss or profit on disposal.

An insurance claim, wrongly entered as "income", can be adjusted by transferring the amount to the disposal account. After effecting these entries, the disposal account should balance to zero. Your new records would reveal, the loss or profit on claim (income statement), settlement in bank account, fixed assets less the stolen/lost asset, and a lower depreciation estimate for the year.

I acknowledge that this is your accountant's job, you however have a duty to provide accurate records. But how many businesses continue to pay, the same insurance premiums on the assets, since purchase date, when they, entitled to a lower premium, due to a lower asset value.(prior to any asset losses).

Also, a precarious asset situation in your books, might lead to problems in your tax affairs.
No business can afford a visit from the IRS. Did you know that tax authorities always commence auditing, your assets, before they move on to your income?

Payment Protection Insurance Pays You Cash When Unemployed

2008-09-05T08:59:00.000-07:00

Almost every type of loan can come bundled with some sort of credit unemployment insurance. Mortgage, car loans, and even credit cards usually present an offer to buy a payment protection plan that will pay the bill if the borrower is unemployed and loses their income. However, since the plan only pays the bill, it was designed to protect the lender, and not really protect the borrower who is actually paying extra for the service! In fact, if you do take out credit insurance, it tacks an extra amount on the loan, and it actually makes the loan harder to pay off. Now who benefits from protection like this?

In my opinion, a better type of layoff payment protection was developed in the UK. This product actually insured the benefit member in case of a layoff, and paid cash to that consumer. The cash supplemented government unemployment benefits and provided enough money to keep bills and mortgages current during unemployment. So instead of having a consumer pay for a product that only paid the loan company, this product actually paid cash to the person who was paying the bill!

Why don't we have a product like this in the US? After all, over a million Americans have been laid off in the last 12 months. People over here, on this side of the "pond", are worried about their jobs too. And of course, we can hardly turn on the news without noting the alarming number of home foreclosures. And, according to government statistics, the biggest reason that people lose their homes is because they lose their incomes.

Well, the good news is that a layoff protection plan is here, in t he US, and Americans can find the same type of affordable protection that people in the UK can enjoy. It basically follows the same unemployment rules as state unemployment benefits do, but it usually pays out a lot more money. In fact, the average US state unemployment benefit is less than $400 a week. For many of us, this is not enough to keep our mortgage current, pay off loans, keep bills current, and put food on the table!

A supplemental plan can be purchased to pay out an extra $1,000, $1,500, or $2,000 a month. This cash is paid directly to the buyer of the plan, and it is not handed over to a lender. That way, the plan member can decide the best way to use the money to benefit their family during a period of unemployment. In my opinion, this type of plan is best for the consumer. The plan also contains other benefits like debt relief and legal services, and can be a valuable part of a working person's financial planning.

It's Your Insurance Claim - You Should Get Paid For the Whole Thing!

2008-09-05T08:58:00.000-07:00

If you're in the midst of filing an insurance claim, you're likely ready to accept a check from your insurance adjuster and move on. After all, filling out forms and living in a state of chaos is no fun. You want the stress to end and the ability to make the necessary repairs.

However, insurance companies don't always pay you in full so it pays to take your time during this process. Remember that insurance companies are businesses, not non-profit organizations. They are in business to make money, not spread goodwill. This means that they have to make wise decisions, charge premiums for their service, and look for ways to minimize their losses.

Now, you have paid for your coverage through your premiums and you deserve to get the service that you paid for. Unfortunately, unless you are vigilant, you may not be fully reimbursed for your insurance losses.

This doesn't mean that your insurance adjuster is out to get you or is dishonest, but it does mean that you have to be proactive. Insurance adjusters are often extremely busy and don't take the time to thoroughly inspect your home for damage. You must insist on it. For example, if your home was battered in a hail storm, insist that the adjuster physically inspect the roof for hail damage or have a roofing company's inspection report in hand detailing the recent hail damage found.

Keep in mind that the insurance adjuster's estimates may be insufficient. The adjuster may authorize carpet cleaning after a pipe bursts in the home when in reality the carpet will need to be replaced. Another concern is when the insurance adjuster is unfamiliar with actual building costs in your area. In addition, adjusters often use software to calculate repairs. If these calculations were based on an incorrect entry, the results will be wrong. For example, if the adjuster meant to enter 100 square feet but accidentally entered just 10, the dollar amount calculated will be way too low.

Because of all of these factors alone, you must scrutinize every detail. Compare your insurance adjuster's settlement offer with actual estimates. You may need to sit down and negotiate with the insurance company, pointing out mistakes, omissions, and estimates that are too low. This is not unreasonable, nor is it unexpected. However, very few homeowners are willing to take these actions. There's no reason to be intimidated. So long as you have documentation and approach these negotiations professionally, you should be able to work with your insurance company and get paid for the whole thing.

How the Olympic Games Can Help Charities Save Money

2008-08-25T09:31:00.001-07:00

For anyone with a remote interest in sport or human achievement the Games of the 29th Olympiad in China have been a remarkable spectacle. From Michael Phelps amazing 8 gold medals in the pool to Usain Bolts superhuman like 9.69 seconds for the 100 metres, people across the world have seen some never to be forgotten moments.

And yet as we watch with open mouth amazement as some of the athletes and competitors achievements, it is also possible to learn from the spirit of the Olympics when it comes to making decisions about our business dealings and specifically when looking for and buying charity insurance.

The Olympic motto of faster, higher and stronger is a sure way for you to make sure you always get the very best deal on your insurance premiums.

Faster. The society in which we now live means that people are busy and as such demand things quicker than ever before. From fast food takeaways to next day deliveries waiting for goods or services seems now to be from a distant age. The good news for charities looking for insurance products is that quotes and the ability to buy charity insurance is faster than ever before. From getting insurance quotes online 24 hours a day, 7 days a week to being able to make a claim at all hours, it has never been easier to deal with your charities insurance needs.

And on the subject of speed, it is also possible to make sure you time is put to better use by using an insurance broker to help you with insurance for charities. A good insurance broker will listen to your needs, offer your suggestions on what cover you and do not need whilst searching the insurance market to find you the best deal on your insurance.

Higher. This simply means that when looking for which insurance company or insurance broker to choose for your insurance, a company who appears high up in the various search engines could well be one you want to speak to. Very often, a company appears high in search engines like Google, Yahoo and MSN because they specialize in a particular type of insurance. For example, if you run or manage a charity or voluntary organisation and need charities insurance you might type in a phrase like charity insurance or charity insurance broker. The companies that appear high in the search engines for such phrases could very well have special schemes and facilities for exactly the type of insurance you need and therefore you could end up saving money on your insurance premiums.

Stronger. Strength when it comes to insurance might not at first glance be that relevant but when it comes to the financial strength of the insurance provider you decide to go with it could in many cases be the important factor you should look for. It is now quite easy to find out the financial strength of a company with credit ratings and financial information readily available from various websites.

Home Owner Insurance and Term Life Insurance Basics

2008-08-25T09:30:00.000-07:00

As a responsible parent, you know that keeping your home and family safe is always a top priority. While a responsible adult will be able to provide for himself (or herself) and the rest of the family, there are unexpected situations that can negatively impact the quality of life of the entire family, such events include but are not limited to house fires, flood, earthquake, death of the head of the household, etc.

When any of the events mentioned happens, your savings account may not be enough to cover for the expenses of your family and the expenses incurred in order to get everything back as it was before the mishap, this is where an insurance policy comes in handy. There are two types of insurance policies that no family should be without, those are home insurance and life insurance, let's take a look at each one of them.

Homeowners Insurance

"Home is where the heart is" -- this is a beautiful quote that homeowners hold dear, most property owners will undoubtedly say that they would have no idea what they would do if they were to lose their house and the valuable possessions they have in them. Thinking about such cases insurance companies have created special policies that cover private properties. Whilst the details of the policy may vary from company to company their purpose is one and the same, to protect the home of the account holder.

The details of the policy will also change from state to state, for instance people who live in California may have to pay a higher premium for earthquake insurance because of the fact that such a state is known to have many earthquakes. A higher premium may also be required in order to insure a property from floods. When it comes to setting the coverage of a home owners insurance policy, the providing company will assess the situation in order to come up with a reasonable figure, this means that if a property is located close to a fire station it is very unlikely for the house to be destroyed due to fire, the same can be said of people who purchase protection from alarm companies.

Term life insurance

Some will say that this concept sounds very much like traditional life insurance but, it is important to note that there is a difference between the two, a traditional or whole life insurance is a policy that accumulates value over time and it is not possible to outlive the policy. With term life insurance a beneficiary is only covered for a set amount of time, this may be 5, 10 or 20 years, and this type of policy does not accumulate cash value.

The purpose of a term life insurance is to provide for the financial responsibilities of the policyholder in a way that is affordable. When we compared these two types of policies we can see that whole life policies are often more expensive than those that are arranged by a term but this does not mean that people who opt for term life insurance will not receive the same type of benefits that goes with whole life policies do.

As you see, homeowners and life insurance are to policy types that you and your family cannot live without, this is because if something were to happen to you or your home, your love ones with the thrown into financial oblivion.

Unfair Claims Practices - Has Your Insurance Company Or Adjuster Handled Your Claim Unlawfully?

2008-08-25T09:29:00.001-07:00

Unfair Claims Practices

Insurance companies refused to settle thousands of claims after Hurricanes Katrina and Rita and showed America just what Unfair Claims Practices can look like. But Unfair Claims Practices happen in more than just hurricanes losses. Insurance companies deny and delay claims on a very regular basis.

What do you do when your insurance company drags its feet and will not settle your claim? How do you tell what actions are just simply annoyingly poor customer service, and what actions violate the law?

How do you know if your insurance company is treating you fairly and lawfully after you have filed an insurance claim?

Every state has Unfair Claims Practices regulations to protect policyholders and claimants from being abused by insurance companies in the claims process.

A state regulator's primary task is protecting the interests of insurance consumers. Check with your state's Department of Insurance to find out the regulations in your state.

Let me give you some examples of Unfair Claims Practices:

* Attempting to settle a claim based on an application which the company changed without the insured's knowledge or permission. The simplest example of this is when an insurance company changes the date of the application. But it could be any information on the application that might be altered.

* Failing to act promptly after receiving information concerning an insurance claim. Many states require response within 15 days. When there's a storm like Katrina, you might have to wait weeks to meet your adjuster. But that might be an Unfair Claims Practice.

* Delaying a claim investigation by requiring unnecessary reports or documents which contain substantially the same information. Recently I witnessed a major well-known insurance company send a claim to their Special Investigations Unit (SUI), and then take recorded statements from the insureds...and then ask the insureds to submit to an Examination Under Oath. In my opinion, that was Unfair Claims Practice perpetrated by that insurance company.

* When applicable, failing to pay a claim quickly, fairly and equitably. Unethical insurance companies could just stonewall you by telling you it is still investigating your claim.

* Failing to promptly settle claims where liability is reasonably clear under one portion of the policy to influence settlements under any portion of the insurance policy coverage. For example, your auto insurer can't refuse to pay your bills under the medical coverage in your policy so you'll settle your uninsured motorist claim.

* Failing to promptly and clearly explain the policy or the law for either denying a claim or offering a compromise settlement. If you get a denial letter for your claim, the letter should quote the policy language directly that applies. No quote, could be Unfair Claim Practice.

* Attempting to persuade insureds not to invoke and use the arbitration process. Also, an insurance company is prevented from appealing almost all of the arbitration awards in favor of policyholders as a way to force a settlement of claims.

* Misrepresenting significant facts or insurance policy provisions. Insurance companies sometimes deny claims on their misinterpretation of the policy. Then, it's up to you to change their minds.

* Refusing to tell an insured what is happening with a loss within a reasonable time after receiving a completed proof of loss statement. Many policies require the insurance company to accept or deny the proof of loss within 30 days after receiving it. It's in your policy...read it.

* Denying claims without a reasonable loss investigation. The problem comes with the definition of "reasonable." Still, insurers sometimes try to settle a claim using a "lowball settlement offer" without much investigation, just to see if they can make the claim go away.

* Offering very low settlements to encourage insureds to sue. That would cause the length of time for a claim settlement to stretch out, possibly for years. The only ones who benefit from that delay are the insurance company...and the attorneys

* Settling claims for less than the amounts a reasonable person would expect. Insurance companies regularly make "lowball offers" for settlements to their own policyholders as well as third-party claimants. The insurers will pay the LEAST amount of money in a settlement that the policyholders or claimants will accept...always. That's one way to maximize profits.

If you think that your insurance company examiner or adjuster is has committed an Unfair Claims Practices action, talk to that person's supervisor. If the situation doesn't improve or get entirely resolved, file a complaint with your state's insurance department.

Health Care Fraud - The Costly Deception?

2008-08-25T09:28:00.000-07:00

For years significant resources have reportedly been directed towards combating health care fraud by insurers, regulators, law enforcers and legislators. Yet, despite these reported efforts, it would appear, based on the annual estimates, the problem continues to grow and flourish.

Could this indicate that health care fraud is at epidemic proportions and can't be stopped as our health care system is infested with health care providers who will stop at nothing to make a buck? I think not.

My experience, over two decades of working with insurers, law enforcers, regulators and health care providers, suggests that most health care providers are honest, ethical and strive to do the right thing!

Additionally, my experience has provided me with the opportunity to see the fraud problem from both sides, that of enforcement and the provider. When viewed from both perspectives, it is readily apparent that our health care fraud problem is caused by a number of factors, including:

1. Inadequate education for health care providers relative to coding and payer standards.

2. Deviant providers.

3. Inadequate training for claims handlers and claims investigators on coding and provider standards.

4. Inept claims handling and claims investigations by insurers prior to paying claims.

5. Lack of communication from insurer to provider on what is required.

6. Paucity of reliable training for law enforcers regarding the investigation of health care fraud - from identification to prosecution.

7. Tag-a-long investigators looking for organizational stats resulting in the inefficient use of law enforcement resources.

8. Lack of interest or commitment by prosecutors - big cases big problems, little cases little problems.

9. Lack of accountability for all segments of the health care delivery system - provider, payer, regulator and enforcer.

Insurers, the main reporter and victim of the fraud, indicate that all policyholders pay for the fraud in the form of higher premiums. According to the National Insurance Crime Bureau, the average American household will pay $200 more every year in premiums to pay for the fraud.

Insurers are very aggressive in reporting how costly the problem is, revealing estimates of double-digit percentages of claims submitted that are fraudulent, and billions of dollars lost each year due to fraud. These reports and estimates weigh heavily in the minds of state insurance regulators when they allow insurers to raise premiums.

Basically, what insurers and others refer to when they reveal their estimates on the frequency and costs of health care provider fraud is the billing for services not rendered, billing for services that are substandard and/or unnecessary, billing for services that misrepresent the nature of the service provided, billing for services that misrepresent the actual service provider...

The sweeping nature of the attention health care providers are getting, even those not engaged in fraudulent activity, by insurers in post-payment audits is unprecedented, and may take away from the ability of our health care providers to do what they do best - make people better! It is unfortunate that today, health care providers may spend more time documenting and defending their services to a multitude of sources, to include insurers, regulators and law enforcers, then they do providing health care services to patients.

Health care fraud is a crime that should be dealt with swiftly, responsibly and severely! But, health care fraud should not be used as a vehicle for one to prosper at another's expense. Insurers are in the business of making money, and they are doing just that, making money - making a lot of money! This money comes from premiums collected on the sale of policies to consumers seeking protection from future (unknown) losses.

Many insurers are in a position to limit their potential health care claims exposure as they possess the ability to tell insureds' what doctor they can see, what treatment services they can get, and how much will be paid for the services.

Further, insurers may capriciously limit payment on health care claims denying health care services reported by health care providers, asserting the services were illegitimate, claiming the services were fraudulent. Many insurers conduct claims-evaluations, reportedly for the purpose of determining if the health care services rendered by the provider were usual, customary and/or reasonable (UCR). Consider that by definition, "fraud is the knowing and willful deception or misrepresentation of the facts with intent to receive an unauthorized payment."

Wouldn't such an evaluation be considered a fraud evaluation? It is purportedly done for the purpose of determining if the health care provider misrepresented the nature of the services provided and reported, i.e. fraud.

Unfortunately, the UCR evaluation seems to have little to do with actual fraud fighting, but everything to do with cost containment and the bottom line for insurers. These evaluations typically do not identify that the health care provider did not provide the reported services, but instead report subjective opinions of consultant providers who usually do not even see the patient. In many cases, insurers may successfully reduce the health care provider's billings using UCR evaluations - not because the evaluations were accurate, but because the health care provider did not have the knowledge or necessary resources to fight back.

The effectiveness of these evaluations as a means to combat fraud is questionable, and may be non-existent.

Check with your state insurance regulators and health care boards to determine if insurers refer their UCR evaluations to them for fraud investigations, and, if so, ask them how many. Ask your local law enforcers how many cases they investigate or prosecute that were based on UCR evaluations.

Further, ask your insurer what percentages of their estimated losses due to health care fraud include UCR evaluations. And, ask your insurer why, with their duty and ability to examine all claims, are they unable to do a better job in not paying fraudulent claims.

Interestingly, since the late 1980's, health care providers have had a standard coding system. This system, known as Current Procedural Terminology (CPT), is used by providers to report and bill for health care services rendered to patients.

CPT was promulgated by the American Medical Association (AMA) so that all health care providers, regardless of discipline, could accurately report their services and be compensated for services rendered.

Although CPT has been around for decades, there are no standards of education and training required of health care providers for the proper use of the codes, or insurers for what the codes mean. This may lead to a systematic problem in our health care system, as an unnecessary adversarial system is created between our health care providers and health care payers based on an 'attack and defense' of billing codes and treatment records.

Both are looking at the codes, viz., one for the purpose of reporting services to seek compensation, and the other for determining what they will pay.

It should be evident, from the annual reports, if they are accurate, that our health care fraud problem will not be solved solely by amassing a large amount of resources to attack the problem, creating consortiums to share information and research the problem, or with the introduction of additional laws or regulations from politicians stumping for re-election. The investigation of health care fraud for the purpose of prosecuting the offenders is needed. But, also needed is a mandatory educational process for our providers, insurers and investigators on combating health care fraud.

The health care fraud problem is too complex to be battled by the few. Health care fraud is a problem that demands a greater participation by the principals of our health care system, so as to increase the likelihood that our successes in combating this costly problem will be enhanced, identifiable and verifiable.

Health care fraud is a problem - just read the news, but it is a problem that can and must be successfully addressed. This will only happen once our fraud-fighting team is completely accountable and includes the active participation of health care providers.

There is no stronger voice against health care fraud then that of honest and ethical health care providers - who, by the way are also insurance and health care consumers and part of the premium paying public. Most health care providers do not engage in fraud and would like to see those who do be stopped and put out of business. However, the current fraud fighting arena has health care providers - even the honest and law-abiding ones, pitted against insurers and others.

Health care providers who are not engaged in fraudulent activity must endure aggressive and invasive encounters with insurers to get paid for legitimate services provided. This process has a counterproductive effect on our overall success in combating health care fraud.

Health care providers who are not engaged in fraudulent activity may possess information and knowledge that would be useful in assisting health care fraud fighters. These providers could potentially assist at the street-level on the identification of health care providers engaged in fraud.

Furthermore, health care providers who are not engaged in fraudulent activity may assist fraud fighters with establishing the evidence to support prosecutions of the fraud. However, with the current adversarial system, health care providers who are not engaged in fraudulent activity may have neither the opportunity nor desire to assist fraud fighters as they are fighting payers for their mere financial existence.

Maybe it is time the various health care disciplines and health care provider associations formed an alliance to be the provider's action arm to work closely with law enforcers in attacking insurance and health care fraud, just as the insurance industry purports to do. And, just maybe, with such an alliance, we would actually see a drop in the annual estimates of the costs attributed to health care fraud - currently they range, depending on the source, from $20 to $160 Billion.

Small Business Insurance - Who Needs It?

2008-08-25T09:27:00.000-07:00

Who Needs Small Business Insurance, Anyway?

You do! Small business insurance is one of the most critical components of planning for your new venture. Whether your business involves working in a high-risk environment like heavy construction, or a relatively low-risk one such as running an in-home consulting business, you are continually exposed to liabilities that can put your business and your future at risk.

Some business owners are required to maintain insurance coverage. Restaurants, hotels, health care facilities...they all have minimal limits that are imposed upon them by their industry, municipal entities, or their landlords. But what about your small business? You may be retired or just starting out, maybe you're considering using your knowledge of antiques or your talent as an artist to start your own shop or gallery. How risky can that possibly be?

Assess the Risks

In today's world, risk management is no longer the exclusive domain of large corporations. Every small business is different, with a unique set of risks. An experienced small business insurance agency can advise you on what your present and future needs may be, and keep you up to date on any Federal, State, or Local regulatory requirements you may be subject to.

A good insurance agent will review your company needs; an excellent one will take the time to visit your company and discuss your requirements with you directly.

Be Prepared!

As your business grows, your small business insurance coverage should grow with you. It's easy to get caught up in the excitement and activity as success begins to take root, and insurance is the LAST thing on your mind...until you need it. Make sure when you choose an agent, you are getting someone with your best interest in mind, who will continually monitor where you are and make suggestions when necessary.

Are you taking on employees? Opening another shop or office? Considering additional human resource programs? Taking on additional risk? You may need to look at several types of coverage:

Workers' Compensation
Contractor's Liability
License Bonds, Court Bonds, Performance or Fidelity Bonds
Employee Benefit Administration

The Benefits - Because Things happen

The benefit of having good small business insurance is most obvious when the unexpected happens.

Don't be caught off guard...without proper coverage your business liability can extend to your personal life as well. Knowing you have the right coverage up front offers you both peace of mind and security. When and if you have a loss or a setback, you will be able to continue moving forward with confidence, and the tools you need to stay in business!

There is no doubt about it - Insurance can be complicated. There is so much to understand and so many details that it can quickly become overwhelming! The very best option? Find a qualified small business insurance agency you trust - one that is familiar with you, your local community and is respected within the insurance industry as well.

Digital Insurance

2008-08-09T07:42:00.001-07:00

With the advent of downloadable content on the internet and the rise of social networking websites, our buying habits have gone through a change when it comes to purchasing music.

With a wide range of mp3 players on the market and a variety of methods for selecting and downloading music, the choice for consumers is endless.

As we move away from the world of CDs and film reels into an age where music and photographs are stored and shared digitally, so the value of the data we keep on our computers is on the increase.

As a result, the risk of loss and theft has also increased, many now leave the house with packed music players and laptops - which may contain music files that run into thousands of pounds and priceless personal photographs and images for business purposes.

The thought of such equipment, and the data contained on it, being lost or stolen is enough to send a shiver down the spine of any music lover, graphic designer or social networking addict.

Whilst you are able to include electrical equipment - such as stereos and computers - on your home insurance policy, newer equipment such as mp3 players were not usually included in the list of contents that are covered by their policies.

However, many insurance companies are now beginning to include digital content - such as music, digital photographs and video game files - as part of home contents cover.

Keeping a record of your downloads can be crucial when it comes to making a claim, usually this can be done by e-mail - so printing the receipts and keeping them safe can be very beneficial should anything happen to your computer.

In order to ensure that your digital data is kept safe and secure, it's best to keep a backup of all your important data. Its also essential to ensure that you have updated anti-virus software installed on your computer, for your cover might not extend to loss and damage as a result of a computer virus.

External hard-drives are becoming more freely available and cheaper to purchase, so it can be worth buying one to give yourself a bit of reassurance and to keep your most important data secure.

It's always best to check with your contents insurance provider to see if there is the potential to cover your digital data. Many companies will offer the chance to insure your files as an add-on to your existing policy.

Looking for cheaper contents insurance? Compare a range of insurance providers to find a deal to keep your data safe.

Article Source: http://EzineArticles.com/?expert=David_Collins