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Today’s News: Digital Medical Records on 5-Year Deadline, AG Probes Life Insurance Industry and Policyholders Choose Not to Sue Auto Insurance Companies

Posted in Auto Insurance , Health Insurance , Life Insurance , Life Insurance Companies , Medicare , Met Life

August 11th, 2010
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The Obama administration has given the medical world five years to figure out how to move all medical records to a digital format, the New York attorney general is pushing for a probe into the life insurance industry and individuals recently surveyed revealed that if given the opportunity, they would not be interested in suing their auto insurance companies.

Digital Medical Records Get 5-Year Deadline

In mid-July, President Barack Obama dished out an ambitious five-year plan that would require doctors and hospitals to move all medical records to a digital format. This, according to his administration, would offer greater safety for patients, as well as lower costs for health care and health insurance.

As soon as 2011, the medical world will have access to federal money that could use to help lower the costs of the systems, as well as train workers for their use. Those who don’t comply with these guidelines by 2015 will face Medicare payment cuts (MSNBC).

AG Probes Life Insurance Industry

New York State Attorney General, Andrew Cuomo, recently stated he plans to open a fraud investigation into how life insurance companies pay out benefits after their policyholders die. Cuomo said that he believes some insurers are retaining life insurance beneficiaries’ funds in company-controlled accounts, rather than paying out lump sums because they earn higher rates of interest by holding on to the money. So far, his office has already subpoenaed Prudential Financial, Inc. and MetLife, Inc. in hopes of learning more about their use of life insurance policies (Associated Press).

Policyholders Choose Not to Sue Auto Insurance Companies

A new survey released by the Insurance Research Council (IRC) revealed that most Americans don’t believe that adopting new laws allowing people to sue their own auto insurance company for punitive damages is a good idea. The law relates to a first-party bad-faith lawsuit that allows one person to sue their own insurance company because they feel that the company acted in “bad faith” in the settlement of their claim.

So far, only a few states allow policyholders to sue their companies for this reason. However, according to the survey, 57 percent of respondents think the ability to do this is either a poor or only fair idea (PR Web).

Today’s News: Anthem Blue Cross Seeks Rate Hike, Vehicle Monitoring Raises Privacy Concerns and AIG Units for Sale Again

Posted in AIG , Health Insurance , Life Insurance , Life Insurance Companies , Save on Health Insurance

July 16th, 2010
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Health insurance companies are seeking to once again raise rates, a vehicle monitoring system that could lower auto insurance rates raises concerns of privacy and AIG is looking to sell two more life insurance units to raise money.

Anthem Blue Cross Seeks Rate Hike

Earlier this year, Anthem Blue Cross proposed a 39 percent rate hike for its California customers, but after receiving a lot of criticism from everyone including President Barack Obama, the health insurance company temporarily suspended the increase. Now the company is proposing that the rates be increased again, but this time by 20 percent. It submitted filings on Wednesday to the state Department of Insurance and the Department of Managed Health Care and hopes to see the increase take effect for 600,000 Californians by Sept. 1 (San Francisco Chronicle).

Vehicle Monitoring Raises Privacy Concerns

Texas auto insurance company, MileMeter, has filed a lawsuit against Massachusetts-based Liberty Mutual Group Inc. for patent infringement with the use of a vehicle monitoring system that helps track cars for pay-as-you-drive (PAYD) services. MileMeter says that using a monitoring system infringes upon a customer’s right to privacy and could also result in an unfair increase in auto insurance rates. The company is the first in the United States to offer PAYD services without the use of such technology, but notes that it carries over 100 patents that include the technology it claims Liberty Mutual as taken (Market Watch).

AIG Units for Sale Again

Major life insurance provider AIG has placed two more of its units for sale in order to build income. Currently, it plans to sell two Asian life insurance units with the hopes that doing so will drum up about $5 billion for its remaining businesses. Also, the company, which is still trying to repay money it was granted to avoid bankruptcy, hopes that the money could help to reduce its deficit. So far, it has also sold its ALICO business to MetLife and hopes to retry its sale of AIA Group to Prudential PLC (Market Watch).

American International Group Inc. is putting two Asian life-insurance units back on the sales block, hoping to get roughly $5 billion for the businesses, The Wall Street Journal reported Thursday, citing unidentified people familiar with the matter.

Today’s News: Abortion Bill Vetoed in Oklahoma, Oil Spill Spurs Home Insurance Concerns and AIG Refuses Unit Buyout Offer

Posted in AIG , Health Insurance , Home Insurance , Life Insurance , Life Insurance Companies , Prudential

July 9th, 2010
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Oklahoma’s governor has vetoed a bill recently passed in the state that would restrict abortion options under health insurance. In other insurance news, some reports have found that the oil spill in the Gulf could have a negative effect on home insurance policies and major life insurance company, AIG, has refused a buyout offer from Prudential, PLC.

Abortion Bill Vetoed in Oklahoma

The abortion language in U.S. health care reform that was so controversial it caused Bart Stupak to retire seems to be causing a bit of controversy at the state level as well. Recently, Oklahoma Gov. Brad Henry vetoed an abortion bill that would place strict limits on when private health insurance companies could cover the procedure. The bill included exceptions for those who had been raped, the victim of incest or if the mother’s life could be placed in danger due to the pregnancy. But the governor believed that the exceptions were too-heavily restricted by time limits and would not truly benefit the victims. (Associated Press)

Oil Spill Spurs Home Insurance Concerns

Now that the waters from the Gulf of Mexico oil spill have made their way to coast lines — and hurricane season is rapidly approaching — some homeowners have expressed concerns that their homes may be the victims of oil-laden waters. However, insurance industry experts say that while they cannot stop the hurricanes from throwing water onto properties, they have the cash necessary to help the properties rebound. According to the National Oceanic and Atmospheric Administration, this hurricane season (June 1 to Nov. 30) could be very active, so homeowners should have home insurance in place to protect their finances during this time. (Hartford Courant)

AIG Refuses Unit Buyout Offer

American International Group (AIG) announced on Tuesday morning that it wouldn’t accept an offer from Prudential PLC — one that would allow the company to acquire part of AIG’s pan-Asian life insurance subsidiary — because it was too low. Instead of accepting the offer for $30.375 billion, the life insurer decided to work with the original deal made with Prudential for $35.5 billion. There is no word as to whether Prudential will honor the first offer once again, leaving some to wonder why AIG turned down the offer with bailout money left to pay back. (Blogging Stocks)

Today’s News: Employer Health Costs to Increase, The Hartford Changes Life Underwriting Process and Most Affordable Auto Insurance State Revealed

Posted in Auto Insurance , Hartford Mutual , Health Insurance , Life Insurance , Life Insurance Companies

June 28th, 2010
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A new report shows that employer health care costs are set to increase in 2011, The Hartford has changed the way life insurance policies are underwritten and the most affordable states for auto insurance have been revealed.

Employer Health Costs to Increase

Companies offering health plans to employees will likely see a jump in costs of about 9 percent in 2011, according to a recent report released by PricewaterhouseCoopers. As a result of this increase, says the report, most employees will end up paying higher health insurance deductibles with employers trying to offset their mounting costs. The report noted that by 2011, more than 50 percent of employees will have deductibles of $400 or more. Only 25 percent of employees had deductibles that high in 2008. The increase in costs is said to be a result of cash-strapped hospitals and Medicare rate cuts. (CNN Money)

The Hartford Changes Life Insurance Underwriting Process

Life insurer, The Hartford, has changed the way it underwrites life insurance so that it includes another age category and also bases a person’s life expectancy on a wider variety of factors, including family history of longevity, cancer screenings, exercise and the health of a person’s arteries. The insurance company has noted, in addition to changing the way that it qualifies people for coverage, it will offer a discount to those who are able to show they are in good health. (Courant)

Most Affordable Auto Insurance State Revealed

InsWeb has released its 2010 Car Insurance Affordability Index, which offers the most and least affordable states to have auto insurance. According to the index, Massachusetts is the most affordable state in the nation to purchase auto coverage while Louisiana is the least. In order to create the list, InsWeb looked at the affordability factor of auto insurance for each state, including Washington, D.C., which is determined by dividing a state’s median household car insurance rate by its median household income. The lower the factor, the less most families are willing to spend on car insurance relative to its budget. (Market Watch)

MetLife Says Less Than Half of People on Disability Have Income Coverage

Posted in Life Insurance , Life Insurance Companies , Met Life

May 14th, 2010
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A new study from MetLife revealed that three in five individuals who were out of work for at least six months as a result of a disability did not have disability insurance. The study, known as the MetLife Study of the Emotional and Financial Impact of Disability, also found that among the individuals who did have disability coverage, about one-third of their income was protected on average.

Workers Have Insufficient Disability Coverage

The disability insurance coverage amounts that the study shows most American workers have is undoubtedly insufficient for true protection in the event that an injury or illness were to turn into a full-on disability. In fact, according to the study, only 17 percent of those studied felt that that they have been completely covered financially if there became disabled at least a year ago.

The impact of a lack of disability insurance coverage can be devastating to a household. Here are stats from the study that show just that:

• 54 percent of those who did not have adequate coverage felt that their disability had a major or devastating impact on their relationships.
• 77 percent of those who did not have adequate coverage experienced feelings of depression and anxiety during their disability.
• 88 percent of those who did not have adequate coverage said their disability had a major or devastating impact on their feelings of financial security.
• 77 percent who didn’t have adequate coverage said they had to withdraw money from savings, investments or retirement accounts.
• 50 percent with inadequate coverage said they borrowed money from friends or family as a result of their disability.
• 62 percent without adequate coverage said they are currently living paycheck-to-paycheck.

The stats from the study show that those who must go without disability insurance or have inadequate coverage suffer in a number of financial and emotional ways. It is for this reason that experts suggest taking on quality coverage that adequately protects the income.

Do You Have Disability Insurance?

The study showing the lack of disability insurance coverage came at a perfect time since May is Disability Insurance Awareness Month (DAIM). During this month, insurance companies are promoting the purchase of this type of coverage to ensure you and your family members are protected adequately in the event that the breadwinner(s) are injured.

Some tips for ensuring you have the right disability life insurance coverage include:

• Calculating how much income you need to cover your expenses each month to determine the amount of coverage you need.
• Finding several experienced brokers who specializes in this type of coverage.
• Comparison shopping to make sure the broker you choose and the coverage they offer are both a match for you.

While you may not want to take on disability insurance as an extra expense, as you can see from the MetLife study, the repercussions of not doing so could be significant. So take time to shop for coverage in your area to find the most affordable and comprehensive option for you.

AIG Posts $1.45 Billion Profit for First Quarter

Posted in AIG , Life Insurance , Life Insurance Companies

May 13th, 2010
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After raking in an impressive $1.45 billion quarterly profit, AIG says it is on its way to repaying the $182 billion government bailout it received in 2008 and 2009. The company already laid out a bailout repayment plan in April in hopes of showing how serious it is in paying back its debts to taxpayers. Now the life insurance company says that its recent profit could make its goal a greater reality.

First Quarter a Good One for AIG

AIG saw a first quarter income of $1.45 billion ($2.16 per share), which compares to a loss of $4.35 billion a year earlier, the company said on Friday. This is good news for the company but is not its first profit.

In fact, AIG has been able to post several profits since it received bailouts in 2008. This recent profit is the third in the past four quarters for the life insurance company.

The Company is on Track for Repayment

In addition to this quarterly profit, AIG has been selling its units in order to raise capital for repayment. In March, it agreed to sell American Life Insurance Company (ALICO) to Metlife for $15.5 billion. In the same month, the company sold its Asian life insurance to Britain’s Prudential PLC for $35.5 billion.

The company believes the sell-offs and profits show that it is stabilizing and essentially on the right track. However, it is still cautious about generating new business in various sectors, including its Chartis insurance unit, due to challenging economic conditions.

Since much of the life insurance company’s profit is coming from investments, some wonder how it will grow profit through internal business. Some say that investors are looking to see this growth or they may not continue to stay on board.

Life Insurers Recovered Capital Lost During Financial Crisis

Posted in Life Insurance , Life Insurance Companies

May 8th, 2010
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A new report from SNL Financial reveals that U.S. life insurers have been able to recover all of the capital and surplus lost amid the global financial crisis over the course of 2009. The 2009 statutory financial results for top-tier life insurance companies and life groups from the Charlottesville, Va. company show that while the companies had their ups and downs, overall they had a good year.

Stats from SNL

According to the report, the life insurance industry’s net income was the single-largest factor in 2009 improvement. The industry as a whole recorded a $21.1 billion profit as compared to a 2008 loss of $51.8 billion.

Another interesting changing was that policyholders’ surplus for 96.8 percent of the top-tier U.S. life insurance companies and/or groups covered by SNL totaled $289.7 billion by last year’s end. This represents a 14.8 percent increase from year ended 2008.

The Financial Crisis Still Has After-Effects

While much looked great for the industry, there was one downside. According to SNL, premiums and annuity considerations saw a sharp 19 percent decline in 2009 and marked the first year-over-year decrease in revenue since 2003.

Additionally, net investment income fell by 3.3 percent from 2008 levels. These drops, according to SNL, show that while much improvement has been made since the financial crisis, the life insurance industry is still suffering from some aftershocks.

Do You Have Life Insurance?

With the life insurance industry bouncing back some, it appears that more people have purchased life insurance policies. Are you one of them? If not, this may be the time to learn the benefits of coverage and determine whether a term or permanent policy is right for you.

Don’t know where to go to find this information? You’ve reached the right place. Visit Go Insurance Rates to learn more about how to find the right policy for you.

Life Insurance Companies Hop on Twitter Bandwagon

Posted in Life Insurance , Life Insurance Companies

May 3rd, 2010
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After watching friends, family and even favorite celebrities get in on the Twitter action, it seems that now life insurance companies want in as well. According to the American Council of Life Insurers (ACLI), they plan to launch their company’s Twitter account very soon in hopes of staying current with the ever-changing media.

Communication with Consumers Is Key

In addition to keeping up with social media trends, the life insurance organization hopes that creating a Twitter page will help companies keep in better communication with consumers, the media and the policy-makers. Because social media sites like Twitter allow for companies and major figures to keep in touch with those who are directly affected by them, the organization hopes this move will help their companies make better decisions for the public.

Learning More about Major Life Insurance Companies

In addition to adding ACLI to your list of organizations to keep track of, it’s good keep up with all life insurance companies are up to, especially if you trying to acquire life insurance quotes. There are tons of companies to take a look at, including National Life Insurance, AIG, Allstate and Liberty Mutual, to name a few.

The idea is to look at life insurance companies and decide which offers the best services at the best price to accommodate your needs. By keeping track of life insurance companies via Twitter or on your own, you have the chance to find the best life insurance products for your family.

History of National Life Insurance

Posted in Life Insurance , Life Insurance Companies

April 15th, 2010
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When thinking about Vermont, visions of maple syrup, Fall foliage and Ben and Jerry’s ice cream may fill your mind.

However, the state is also home to a landmark life insurance provider, the historic National Life Insurance Company. The life insurance provider was one of the first mutual life insurance companies in the United States and still proudly maintains their corporate headquarters in the Green Mountain State.

From its beginnings, the company has grown to have over 900 employees, a customer base of 870,000 and $1.6 billion in revenue (2009).

The Origins of National Life Insurance Group

The National Life Insurance Group is over 160 years old and the company’s roots can be traced back to the organizations founding in Montpelier, Vt. The Vermont Legislature signed an act on Nov. 28, 1848 that formed and incorporated the National Life Insurance company. Over the company’s long and proven history they have insured soldiers fighting in the Civil War, pioneers who followed the western trail during the Gold Rush and even provided coverage for those who perished on the Titanic.

Despite those events the company continued to grow and flourish and help build their future foundation for prosperity. Even during the 1918 Spanish Influenza epidemic, the National Life Insurance group held their own. At that time, millions of people of every age, race and class perished from the disease. Life insurance agents became ill, face-to-face contact was frowned upon to control the disease so sales were down and the company had limited financial resources to pay out all the necessary claims of the time period. Yet claims were still paid in full and in a timely fashion, policies were still sold and the foundation of the company was strengthened.

The company has certainly learned to roll with the flow. National Life Insurance hired, their first female employee (1877, her name was Emma Dimmick and she earned $1.50 a day), asked their neighbors not to shoot the deer on their lawn courtesy of an ad in the Times Argus (October 5, 1960) and helped provide financial relief to those who experienced loss during the September 11 terrorist attack.

National Life Insurance is licensed to provide life insurance, annuity and investment products in all 50 states (plus the District of Columbia) and is part of the National Life Group a Fortune 1,000 company.

Additional branches of the National Life Insurance Group include the Life Insurance Company of the Southwest, Dallas, Texas, and Sentinel Investments, Equity Services, Inc.

Life Insurance News: Insurers Not Happy about Pre-Funded Systemic Risk Plan

Posted in Life Insurance , Life Insurance Companies

April 1st, 2010
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U.S. life insurers are not thrilled about a proposed pre-funded systemic risk plan that could result in major companies paying millions of dollars to liquidate the industry. Unfortunately, if the plan was approved and life insurance companies were obligated to pay into this fund, it could have an effect down the line on how much customers were obligated to pay.

What is the Pre-Funded Systemic Risk Plan?

According to a U.S. life insurance trade group, there is concern about a pre-funded systemic risk resolution plan that is a part of a financial-services regulatory bill currently in consideration. The fund would set aside money so that it is readily available in the event that an insurer has trouble paying out claims.

The problem with the fund, however, is that it would require life insurance companies to pay up to $50 million to add money for any company that could have problems. Some think this type of fee would ultimately drain the financial system of billions of dollars.

Could Customers Be Affected?

Because insurers are already subject to state-based assessments through state guaranty associations, adding this extra payment to the pot could have more than a direct effect on the financial system. While there is no official word on the effect the fund could have on customers, some assume that over time, the costs associated with this fund could pass down to those who fund the life insurance industry.

Recent reports have shown that consumers have declined in purchasing life insurance, which means if fewer people are buying, the money has to come from somewhere. So while the hope is that passing the measure would have no effect on premiums, the possibility is just as great that it could.