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Today’s News: New Coverage for Pre-Existing Conditions to Begin, Florida Auto Insurance Fraud Skyrockets and Gov’t Long-Term Care Program Already Doomed

Posted in Auto Insurance , Auto Insurance Claims , Health Care , Health Insurance

July 7th, 2010
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Some relief may be on the way for those who suffer from preexisting conditions as the government has set up a new health insurance program that is to begin soon. In Florida, auto insurance fraud via intentional crashes has skyrocketed and the government plans to start a new program for those in need of long-term care, but there is a major glitch that could force its failure before it even begins.

New Coverage for Pre-Existing Conditions to Begin

A new health insurance program is being launched by the Obama administration that will help Americans who are currently uninsured and also have pre-existing medical problems. The program, also known as the Pre-Existing Condition Insurance Plan, will offer lower-cost insurance coverage to those who have trouble getting insurance elsewhere. It will begin accepting applications as soon as July 1 and start offering coverage as early as Aug. 1. Some think the coverage costs could still be a bit of a stretch for many individuals and families, but will still be worth a try. Those who are interested should visit healthcare.gov for more information (Associated Press).

Intentional Crashes Cause Florida’s Auto Insurance Fraud Cases to Skyrocket

Auto insurance fraud where a policyholder crashes his or her car just to generate medical claims is on the rise in Florida, according to the National Insurance Crime Bureau (NICB). The industry group acknowledges that staged accidents surged by 58 percent to 1,999 in 2009. Among the cities with the highest number of intentional crashes was Tampa with the highest number sitting at 487. According to the group, the economic slump contributes most to the significant increase in fraudulent accidents (Business Week).

Governmentt Long-Term Care Program Already Doomed

A new program is being offered by the federal government to provide insurance assistance to those in need of long-term care. The program is needed as the costs of long-term care continue to skyrocket. However, the Community Living Assistance Services and Support (CLASS) Act, which will offer adults with severe physical or cognitive limitations receive anywhere from $50 to $75 a day to help pay for services, won’t be getting its start until 2017. Many think the program could be successful when it actually starts, but in the meantime, tons of seniors could suffer major financial setbacks trying to pay for care on their own (Delaware Online).

How Vehicle Recalls Affect Car Insurance

Posted in Auto Insurance , Auto Insurance Claims

July 6th, 2010
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Recent news has reported GM needed to recall about 1.5 million trucks, crossovers and cars with the model years 2006-2009 due to windshield washer fluid heaters that could catch fire. This massive recall wasn’t the first we’ve seen this year. In January, Toyota announced that it would be recalling 2.3 million vehicles, a number that climbed to nearly eight million by February.

While car owners were busy trying to figure out how to safely operate their recalled vehicles until they were able to get them repaired, some began to wonder what could happen to their auto insurance in the meantime. Would they be charged more for insurance now that they own defective vehicles? This is a question that is still hanging in the balance.

Auto Insurance Pricing and Recalls

Before exploring how a recall affects an auto insurance policy, examine just how auto insurance is priced. According to the Insurance Information Institute, some or all of the following items could affect the price of a policy:

• Driving history
• Physical location
• How many miles you drive
• Cost of the car
• Age and gender
• Credit rating
• Repair costs
• Safety rating

The recall of a vehicle is not among the items listed above. This is because experts tend to believe that recalls don’t seriously affect auto insurance rates. In fact, not long after the Toyota vehicles were recalled, insurers from both State Farm and Allstate Corp. came forward to say not only would individuals with vehicles affected by the recall be covered if they were in an accident, but that the recall would not have an effect on policyholders’ auto insurance rates.

Could a Recall Affect Your Insurance In the Long Term?

While insurers were certain that a recall would not affect a person’s auto insurance rates right after the Toyota recall, there hasn’t been as much certainty whether or not it could influence rates in the long-term. As mentioned above, the safety rating of a car is a contributing factor in how insurance rates are determined, so if a car accumulates too many claims or has too many recalls, the possibility of seeing an increase in rates over time could heighten.

In the case of the most recent recalls this year — Toyota and GM — the likelihood of rates increasing merely because the vehicles were recalled are pretty slim. However, this doesn’t mean a recall should not affect your approach to purchasing a vehicle or even keeping an eye on your auto insurance rates.

Watching Recalls for Your Own Safety and Insurance Pricing

Before purchasing a vehicle, it’s a good idea to find out if the model has been recalled previously. This helps to ensure your safety while in the car, as in the instance of “sticky pedals” like those found on Toyotas, and protects you from the possibility of higher interest rates.

That’s not all. If you are not lucky enough to have purchased a vehicle from a manufacturer like Toyota that was willing to accept responsibility for any accidents, you could find yourself at fault for an accident and suffer a rate increase for damaging another person’s property. These are all good reasons to make sure you know the history of not only the specific vehicle you purchase, but the make and model as well.

Also, while rates have yet to increase across the board as a result of a recall, some car models are expected to see increases sometime this year. So take a look at the vehicles out there that seem to be connected to increasing rates. You may find that you could save on the overall cost of your car by purchasing your next vehicle based on the cost of insurance.

Today’s News: California First to Implement Health Overhauls, U.S. Life Insurance Sales Up and Liberty Mutual Offers Safe Driving Game

Posted in Auto Insurance , Health Care , Health Insurance , Liberty Mutual , Life Insurance , Life Insurance Quotes

July 5th, 2010
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As the nation prepares for a new world of health insurance in the near future, California gets to see changes sooner since it was designated as the test-run state for many health care reform implementations. In other insurance news, it seems the life insurance industry is continuing its rebound with sales up in the first quarter of 2010 and for those who are interested in lowering their auto insurance rates, they could take a stab at Liberty Mutual’s safe driving game.

California First State to Implement Health Overhauls

The state of California has been chosen as the first one to begin implementing the complex set of overhauls that have been issued by the government. Representatives in the state will begin taking the initial steps this week to make reform a reality. So far, more than 20 bills have been introduced and lawmakers might vote on up to a dozen this week to meet a tight deadline that requires the bills to be passed out of their house of origin. California was chosen as health care reform’s model state because of its sheer size. And with 8.2 million in the state without health insurance, its residents are in need of a great deal of help. (Mercury News)

U.S. Life Insurance Sales Up in First Quarter

According to industry research organization, LIMRA, total first-quarter U.S. sales of individual life insurance rose by 10 percent from the same period in 2009. The organization has dubbed this improvement “encouraging.” However, while the increase in sales may seem to be good news for the life insurance industry, the organization expects that universal life sales will actually be negatively impacted in the near future as prices for policies increase and consumers decide to slow purchases. (Insurance News Net)

Lower Your Auto Insurance with Liberty Mutual’s Safe Driving Game

Liberty Mutual is offering a fun new futuristic driving game that helps drivers navigate the roads of the future and even improve their defensive driving skills. The game, titled “2099,” challenges drivers to protect their sleek vehicles from hazards by safely traveling around a race track without colliding with other drivers on the futuristic road. While the game is not to be thought of as a driving school simulator, it offers a good way to pay attention to one’s surroundings while operating a vehicle, which could help become a safer driver and eventually lower auto insurance rates. (Business Wire)

Today’s News: Obama Fights Insurers over Rates, Long Term Care Costs Steadily Increase and Adults Text and Drive More than Teens

Posted in Health Care , Health Insurance

July 2nd, 2010
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The fight for affordable health insurance is long from over as President Barack Obama fights with insurance executives to keep costs low. Those with long-term care insurance could expect to pay more sooner than later as the costs associated with care increase and in auto insurance news, it appears that adults are more likely to increase their rates after participating in the reckless act of texting and driving as teens.

Obama Fights Insurers over Rates

Recently, Obama told health insurance executives that he wants them to put (and keep) a lid on big rate increases to keep costs low for policyholders. Executives were not too eager to oblige the president, however, telling him that some rises were unavoidable because the new health reform law required them to offer better benefits. The president’s hope is that at the very least, insurers will appropriately justify an rate increases they feel are necessary so that increases like the 39 percent one rescinded by Anthem Blue Cross earlier this year will not occur again (Wall Street Journal).

Long Term Care Costs Steadily Increase

A new study released by Genworth Financial has found that long term care costs as a whole continue to rise annually. The costs associated with specific areas of long term care have increased at varying rates, however. For instance, the cost for in-home care increased by 1.7 percent, while a private room in a nursing home saw a larger 4.5 percent increase. And the cost for assisted living facilities saw the greatest increase of 6.7 percent. All of these increases are expected to have an effect on long term care insurance, which many purchase to cover their costs (Reverse Mortgage Daily).

Adults Text and Drive More than Teens

Pew Research recently released a study that reveals that adults are just as likely as teens to text and drive — actually, they’re more likely to do it. The study found that while 26 percent of teens are likely to text and drive, 27 percent of adults are likely to take part in this dangerous activity. While more states are passing laws and campaigns have started to crack down on the act, people are still making it a part of their driving routine. Doing so is absolutely ill-advised, however, not just because it is extremely dangerous, but it also could result in an increase in auto insurance rates after causing crashes or getting ticketed (e-Wisdom).

Today’s News: Obama Wants $50 Billion Stimulus, Law Limits Health Insurance Rates and Parents Front for Teen Drivers

Posted in Auto Insurance , Auto Insurance Claims , COBRA Insurance , Health Insurance , Save on Health Insurance

June 30th, 2010
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President Barack Obama hopes to convince Congress to move forward with a $50 billion stimulus package that would, in part, re-extend the COBRA subsidy to unemployed workers who saw theirs expire recently. In other insurance news, a new law in New York will help to limit health insurance rates and a study has found that many parents are willing to “front” for their teen drivers after an accident.

Obama Wants $50 Billion Stimulus

On Saturday, June 12, Obama sent a letter to the Congressional leadership of both parties, pleading with them to add measures in upcoming bills that would help unemployed workers keep their health insurance for a longer period. The four-page letter asked Congress to pass a $6-8 billion measure to extend the 65 percent COBRA subsidy. In addition, he wants $23 billion to go to FMAP funding for states so that they don’t need to cut back on their Medicaid rolls. He notes in the letter that the current recession is the reason that benefits should be extended for a longer period than normal. (Firedoglake)

Law Limits Increase in Health Insurance Rates

New York’s Gov. David A. Paterson recently signed legislation that would give the state the power to block what might be deemed as unreasonably high health insurance rates for millions of residents. The law will cover about three million people who are enrolled in small-employer or individually-purchased plans and would require health insurance companies to apply to the state Insurance Department before they would be allowed to raise their premiums. New York currently has the highest premium average for individually bought policies. (New York Times)

42% of Parents Front for Their Teen Drivers after Accidents

A recent study shows that nearly half of parents are willing to commit auto insurance fraud by saying that they’re the primary drivers of their teens’ vehicles, especially after accidents. New research from First Car Magazine and Young Marmalade discovered that “fronting” for kids is so common that 41.79 percent of parents are willing to do it. Why? The main reason is that they hope to reduce auto insurance expenses. However, if caught, they could be prosecuted for fraud. (Insurance Rate)

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)

Today’s News: States Sue Gov’t Over Health Overhaul, Senate Votes Down NFIP and Smokers Pay More for Insurance

Posted in Health Care , Health Insurance , Home Insurance

June 25th, 2010
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The government is in the process of battling state attorneys who say it does not have the Constitutional right to force people to carry health insurance while a study has found that Kansas smokers are likely to pay more for their coverage. In other insurance news, Senate has voted to not renew the National Flood Insurance Program for the time being.

States Sue Government Over Health Overhaul

The federal government is preparing to respond to at least 20 state attorneys that have filed suit against it to stop it from requiring all Americans to carry health insurance.

According to current health care reform law, nearly all legal residents who do not carry health coverage will be required to pay a penalty of at least $695 per person annually or 2.5 percent of income starting in 2014. The attorneys are arguing that the government is trying to impose a tax unlawfully but the government is denying this claim. States hope to at the very least give their citizens the right to deny coverage without penalty. (Wall Street Journal)

Senate Votes Down National Flood Insurance Program

After allowing the National Flood Insurance Program to expire with other pressing bills at the end of May, the Senate has yet to reinstate the program, which is leaving thousands without the flood insurance coverage they need. Unfortunately, when another opportunity came to reinstate the program, the Senate shot it down because it was incorporated in a piece of legislation that lawmakers did not want to pass. With hurricane season just getting started, the National Association of Mutual Insurance Companies is pleading with Senators to pass the legislation so that homeowners won’t go unprotected this season. (US Insurance Online)

Kansas Smokers May Pay More for Insurance

In Kansas, as well as other parts of the country, smokers are being charged more in health insurance benefits for lighting up. Employers are trying to find ways to lower health care costs and have determined that charging more for coverage benefits to smokers could offset the costs, especially since smokers have a greater likelihood of health problems in the long run. The “tobacco-user surcharge” for some is $35 per two-week pay period. And for those who want to lie about their habit, immediate termination is a strong possibility. (Claims Journal)

Today’s News: States Get $51 Million to Rate Health Insurance, Prop 17 Gets Shot Down and AIG Repayment Prospects Look Shaky

Posted in AIG , Auto Insurance , Health Insurance , Save on Auto Insurance

June 25th, 2010
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The U.S. Department of Health and Human Services has made grants available to states to help them enhance their health insurance rate review programs, California’s Proposition 17 auto insurance bill does not make the vote and AIG looks to be struggling to fulfill its promise to repay taxpayers.

$51 Million to Rate Health Insurance

Every state, as well as the District of Columbia, has been granted $1 million to work on a process that will help it review and give approval to health insurance premium requests. In total, there is $250 million to give out to states under the Patient Protection and Affordable Care Act, but the $51 million is the initial portion being used to get the programs started. The deadline for states to grab their share is July 7, while the second round of grants is expected to be distributed before the end of the year. (Insurance News Net)

Prop 17 Gets Shot Down

After months of debates on whether California drivers would benefit from Proposition 17, also known as the Continuous Coverage Auto Insurance Discount, the voters gave the ultimate answer: no. Prop 17 was best known for being advertised as a major benefit because it would provide auto insurance discounts to those who maintained their coverage continuously. However, opponents disliked the bill since drivers who were unable to maintain coverage would suffer a penalty. With 99.1 percent of the votes in, Prop 17 was losing by 158,000 votes. (San Francisco Chronicle)

AIG Repayment Plans Fading

After AIG’s attempt to sell its Asian life insurance unit went bust when it refused an original offer from Prudential PLC – an act that resulted in an even lower bid from the buyer – some wonder whether the insurer will be able to repay its debts to taxpayers. The $35 billion that AIG could have gained would have placed a significant dent in the $132.6 billion it borrowed. However, the company now has to try to sell the life insurance unit again to try to repay what is owed. (CNN Money)

Five Outrageous Celebrity Car Accidents

Posted in Auto Insurance , Auto Insurance Claims , Collision Insurance

June 24th, 2010
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In Hollywood, celebrities are usually known for their prestige, wealth and luxurious lifestyle. However, some have managed to become synonymously linked to their car accidents that have often times exposed the life of a troubling Hollywood starlet. Here, we gathered five notable celebrities along with their damaging car accidents that have occurred over the past several years.

1. Hollywood’s Repeat Offender

Damage costs to Spears’ Mercedes: approximately $1,000

Photo by: Pitxie

Beware of Britney Spears…on the road.Many of us know her as the “It” girl of our generation in Hollywood. She holds the title for several chart-topping hits as well as multi-million dollar endorsement deals. However, we’ve deemed this pop celebrity as Hollywood’s Repeat Offender. Spears has been involved in several fender benders over the last few years. After rear-ending another vehicle on one occasion, she recklessly pulled into a parking lot, side-swiping a different parked car. As if that isn’t bad enough, she inspected her own car, making sure it was OK, then left without taking any responsibility for other damage she caused. Many of these cases are seemingly careless, occurring because Spears simply wasn’t paying attention to the road (or to the parked car). Let’s not forget about the infamous time when she allowed her infant son to sit in her lap while she was driving.

2.Best Recovery Accident

Damages to Ferrari: Totaled

Photo by: PajamaWolf

Back in 2009, famed Real Madrid (former Manchester United) soccer player, Cristiano Ronaldo, was involved in a destructive car accident. While driving through a Manchester airport tunnel, Ronaldo crashed into a barrier that totaled his red Ferrari. Fortunately, no other cars were involved and no one was hurt. Witnesses say that they were surprised to see Ronaldo walk out uninjured immediately after the crash. Ronaldo resumed practice and training that morning despite the scary incident that occurred earlier in the day.

3.Most Mysterious Accident

Damages to Sheen’s Mercedes: Totaled

Photo by: Ravens_2000

Charlie Sheen faced a variety of problems this year involving the domestic disputes with his wife, Brooke Mueller, as well as controversy regarding his contract negotiations for his CBS show, Two and a Half Men. However, one odd problem this year was the fact that his Mercedes was found by police overturned on a cliff, sparking rumors about a possible tragic celebrity accident. After conducting proper police investigations, it turns out that Sheen’s vehicle was stolen from his home in Sherman Oaks. He had called earlier that evening to report that his car was missing from his home.

4.Paparazzo’s Prey

Damage costs to Richie’s Range Rover: $700

Photo by: CarollinCalico

Many of these celebrities are the cause their own tragedies. However, in Nicole Richie’s case, she was simply an innocent victim who was prey to ruthless paparazzi. A couple months ago, Nicole Richie’s Range Rover was rear-ended by a paparazzo. She claimed injuries but police were not called to the scene. Instead, she opted to see her own doctor. The paparazzo was then investigated because he was unable to show proof of a proper driver’s license and consequently arrested. Thankfully, Richie’s passenger was not injured and her baby was not on board.

5.Hall of Fame

Damage to Woods’ car: $10,000

Photo by: Brashears

Tiger Woods tops the list for the Hall of Fame celebrity car accident of all time. During a very odd morning, Tiger Woods was reportedly involved in a car crash that occurred at 2:25 a.m. just outside his private gated community home in Florida. Police reports state that he lost control of his SUV and crashed into a fire hydrant as well as a tree in front of a neighbor’s yard. A breathalyzer test indicated that he was sober. More troubling than the accident was the story that emerged after that devastating morning. Woods was pulled out of the vehicle by his wife, Elin Nordegren, who had to smash the back windows of the SUV to pull him out. By the time paramedics had arrived, he was in and out of consciousness which made people suspicious because the accident was mild, yet he had lacerations on his lips and blood in his mouth. Woods’ celebrity car accident brought light to the five year affair he had been having with multiple different women.

Celebrities are no different than us. They all have their occasional fender benders as well. However, most importantly, make sure that you’re insured so that you are covered in the event of an auto accident. Find which type of auto insurance works best for you. Contact your insurance agent as soon as possible so that they may help you file a claim.

Today’s News: Health Insurance Prices Skyrocket, Auto Insurance Costs Increase and 2010 Life Insurance Outlook Stable

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

June 23rd, 2010
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A new report has found that health insurance costs have recently skyrocketed for individual buyers while auto insurance costs have also increased significantly. Also, Moody’s reports that the outlook for life insurance looks stable for the rest of 2010.

Health Insurance Prices Skyrocket

Health insurance costs have recently increased by an average of 20 percent for individual buyers, says a report released on Monday by the nonprofit group, Kaiser Family Foundation. Currently, the average annual deductible alone for an individual plan customer is $2,438 – four times the average deductible of a person under an employer plan.

According to the report, about 14 million Americans under the age of 65 buy their own individual health plans instead of purchasing them through employers. Of this number, only 16 percent have decided to switch insurers (CNN Money).

Auto Insurance; Cost of Owning a Car Increase

A new study conducted by AAA reveals that the cost of owning and operating a vehicle coupled with the cost auto insurance has increased. To date, the two costs combined have increased by 4.8 percent to $8,487 per year.

The reasons for the total cost of owning a car having increased include the rising cost of auto insurance, fuel and maintenance. The average cost of auto insurance alone for a sedan is around $1,031. The study focused primarily on top-selling 2009 model year vehicles sold in America (U.S. Chronicle).

Life Insurance Operating Income Outlook Stable for 2010

Ever since the financial crisis in 2008, the life insurance industry has been trying to recover.

According to Moody’s, the industry is definitely taking a step in the right direction, moving from a negative outlook to a stable one. The rating agency tracked 19 U.S. life insurance companies for its report and determined that almost all of the companies posted positive operative earnings and net income during the first quarter of 2010. In total, the net income of the group was $9 billion over first quarter of 2009 (Insurance Networking).