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Insurance Companies Decide to Cease Rescissions

Posted in Compare Health Insurance , Health Insurance

May 5th, 2010
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It seems that some health insurers have decided to jump on board with the rules and guidelines put in place by health care reform before expected. Recently a couple of health insurance companies have announced that they will officially cease rescissions before the official restriction takes place in September.

What is a Rescission?

If you’re not familiar with the word rescission, it references the act of a health insurance company to revoke an insurance policy after an individual has already been insured. The reason for revoking the policy, however, is not due to a malicious act by the policyholder.

Instead, it is because the insurer discovers that the policyholder has gotten sick then combs through medical records to find some type of preexisting condition – a good enough reason to cancel the policy.

The act of rescission is a major issue for health care reform and a major factor in the health care law. Now that the bill has passed, health insurance companies have a short amount of time to change their policies and begin abiding by the new law.

Some Insurance Companies Changing Now

In a pledge to begin treating patients fairly, a couple of major health insurance companies and a trade group that represents other plans have decided to start abandoning the act of rescission before September. Recently, Karen Ignagni of America’s Health Insurance Plans sent a letter to U.S. House Democrats noting that the industry was taking steps to make changes.

This would make sure that “individuals and families will have greater peace of mind when purchasing coverage on their own,” she wrote.

The step made by insurers could indeed help individuals and families feel secure about their options when it comes to health insurance. Hopefully these health insurance changes are just a few of the many to come in the near future.

What are the Benefits of Group Life Insurance?

Posted in Compare Life Insurance , Life Insurance

May 4th, 2010
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Not only is there safety in numbers, but there is huge buying power as well. If you have been offered to partake in a group life insurance policy through your employer, you should think about taking advantage of it.

If you were part of the group, you family would get the benefit of a disbursement upon your untimely passing. That money could come in extremely handy, especially when it comes to funeral expenses and prevent your family from having to make your funeral arrangements in the local Wal-Mart.

What’s the Point of Group Life Insurance?

You may be wondering what the benefits of partaking in a group life insurance plan are, and they are plentiful.

Are you recently married? Did you just expand your family? Did you buy a new house? If you answered yes to any of those questions, you have to accept the sad reality that you may not always be around to handle the financial responsibilities associated with those life changes. A benefit distribution from a group life insurance policy will make the financial burden easier for your benefactors to survive.

Life insurance is not always the easiest type of coverage to secure. Consumers must first decide between term and whole life insurance policies. Even though they may have the money all lined up to pay for the premiums, there is no guarantee that a policy will be issued. Consumers often have to pass medical exams to secure the insurance coverage of their liking. However, with a group life insurance policy, that process is automatically waived and coverage is a sure thing.

Overall, the benefits of selecting a group life insurance policy include:

• Lowered Premium Costs: Many employers not only kick in for the coverage, but even if you are asked to cough up money, it won’t be big bucks. Your HR department has already negotiated a huge bulk rate discount for you to take advantage of.
• No Need To Worry About Premium Payment: Many times, employers will automatically deduct the charge from your group life insurance policy from your paycheck so you never have to give the process a second thought.
• Protect Your Family: As with any type of life insurance policy, you get to choose who will be your beneficiary. That move can prevent any additional heartache caused by a worse case scenario.
• Pre-Approval: If you have always wanted life insurance but did not want to go through the process of a medical exam, group life insurance is for you. Your will automatically be approved.

Auto Insurer to Crack Down on Crash Ring

Posted in Auto Insurance , Auto Insurance Claims

May 4th, 2010
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Auto insurer Direct General Insurance Company has taken part in an eight-month investigation to help dismantle an organized “crash ring” with law enforcement agencies in the Central Florida area.

With the dramatic rise of auto insurance fraud in Tampa, Fla. and surrounding areas, many organizations and companies have successfully come together to stop the crime.

“Operation Crash for Cash” Has Resulted in More than 50 Arrest

The Hillsborough County Sheriff’s Office, along with the Florida Department of Insurance Fraud, the National Insurance Crime Bureau (NICB), Direct General and other car insurance companies have come together to form Operation Crash for Cash. This operation was put together to pinpoint the individuals and business taking part in auto insurance fraud so that it can put a stop to the crime in the area once and for all.

So far, the operation has had a good amount of success making more than 50 arrests as a result of an ongoing probe that resulted from the investigation of four medical clinics. In addition, charges have been filed for crimes ranging from racketeering and staging auto accidents to auto insurance fraud.

Auto Insurance Fraud Increases Rates

In addition to the many reasons that auto insurance rates could increase across the board, fraud is among the top reasons. In Florida, in particular, car insurance companies are forced to charge higher premiums and impose tighter underwriting guidelines as a result of losses due to fraud. So by cracking down on the act, everyone benefits.

It is no secret that criminals, and even law-abiding citizens, are getting in on fraud because they feel that it is a justifiable crime. But no matter what, fraud is a crime and one you should avoid. If you’re looking for ways to cut corners and lower your auto insurance rates, here are some simple and legitimate ways to do it.

Getting Ready for Your Life Insurance Exam

Posted in Life Insurance

May 3rd, 2010
1 Comment

So you’re about two weeks away from your first life insurance exam and you’re sitting on pins and needles. It’s natural to feel nervous about the exam because it could determine whether you’ll get insured – or how much you’ll be charged if the company offers you coverage.

The good news is that there are ways to prepare for the exam to help increase your chances of getting covered. No, it’s not what you’re thinking. You’re not cheating. You’re just optimizing your current health condition to get the best possible results.

What to Expect in Your Life Insurance Medical Exam

There are some basics that you need to know will occur during your exam whether you’re purchasing term life insurance or a permanent life policy (whole, universal, variable):

• Blood test
• Urine specimen
• Blood pressure reading
• Series of health questions
• EKG (electrocardiogram) – this test is not guaranteed

The exam is performed by a nurse, doctor or paramedic and is paid for the life insurance company. Expect to spend about an hour going through the various parts of the exam.

How to Prepare for the Exam

Now that you have an idea of what will take place during the life insurance medical exam, let’s look at how you can prepare for it.

• One week before your exam: During this time, you want to stick to a healthy diet. Minimizing salt and avoiding sugary and fatty foods could help lower your blood pressure and improve your stats in a short time.
• 3 days before your exam: As the exam draws near, you want to avoid alcohol products because they can cause your liver enzymes to become elevated.
• The day before your exam: On the day before your exam, it’s important to stay away from caffeine (it elevate blood pressure), nasal decongestants and pain medication, avoid strenuous exercise (it can elevate protein in the urine) and food with 8-10 hours before the exam. Just drink water and get a good night’s rest.
• The morning of your exam: On the morning of your exam, don’t eat breakfast or use any form of tobacco.

Also, it’s important to have with you a list of your doctors (addresses and phone numbers included). But most important, relax and feel good about your health and the fact that you’re about to get an affordable life insurance policy.

Do I Have to Take the Exam?

If you’re really concerned that you can get insured in your current condition, you might consider no medical exam life insurance. By taking on a term life insurance no exam policy, you can get insured without the worry of exam, but you may have to pay more for coverage. So keep this in mind as you’re deciding which type of policy to choose.

While taking the life insurance medical exam can be a bit scary, if you are generally healthy and take the steps listed above, you should have no problems getting a fair rate for your coverage.

Credit Scoring Bill Fades in Wisconsin

Posted in Auto Insurance

May 3rd, 2010
1 Comment

A credit scoring insurance bill in Wisconsin that made consumers happy and insurers quite displeased has simply faded away at the state capital. After lawmakers wrapped up business last Thursday, it was discovered that the auto insurance bill that would have banned credit-based insurance scoring never made it out of committee before the end of the night.

Bill Was Allowed to Fade Away Due to Prior Legislative Criticism

The assistant vice president of the Midwest region for the American Insurance Association (AIA), John Birkinbine, said recently that the auto insurance bill, though possibly beneficial to consumers, was likely put to rest because of backlash that Democrats received recently after passing a bill that increased minimum coverage requirements and raised rates.

The newspaper editorials and criticisms received from Republican minority members was a lot to bear. As a result, Democrats let this new, unpopular bill slip away without much fight.

Maryland Also Recently Avoided Credit Scoring Bill

Wisconsin is not the first state to allow a bill that would prevent credit scoring from being a factor in auto insurance rates to simply slip away. In fact, Maryland took it one step further and outright rejected the bill they had floating their state Senate.

It seems that getting credit scoring pulled from the consideration process when applying for auto insurance has been a tough road. Michigan and other states have fought to have it removed, especially when most insurers use the insurance score, which relies on the credit score.

Some believe that determining auto insurance rates based on a credit score results in unfairly increasing rates for responsible drivers, but many legislatures have yet to feel that this true.

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.

Health Care Reform Expected to Impact Many Jobs

Posted in Health Insurance

April 29th, 2010
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The recent passage of health care reform has resulted in lot of major changes to the industry and more are expected to come, including a significant impact on health care and insurance workers. While all experts are not in complete agreement, some say that there will be both positive and negative effects for employees of health insurance as well as other areas of the health care sector.

Job Gains or Losses?

There have been some conflicting reports released by experts who are making predictions about the outcome of the work force as a result of health care reform. Of course, there have been plenty of predictions regarding health insurance changes, but now reports show that we may lose or gain tons of jobs in the sector, which could be good or bad news, depending on who you ask.

For instance, the Center for American Progress is predicting that health care reform will add four million new jobs to the economy in the next 10 years. On the other hand, the Heritage Foundation predicts a loss of 690,000 jobs as a result of the law. The conflicting data is not uncommon seeing that many of the changes won’t be made for several years and their impact is still unknown.

However, it is still nice to get slightly more accurate insight into what could occur.

Specific Jobs Impacted by Health Care Reform

Here are a few predictions about what could happen with various sectors of the health care industry, including health insurance:

• Insurance agents: Some think that insurance agents will likely see more business since around 32 million Americans will be required to purchase health insurance coverage by 2014. However, there are also predictions that health insurance companies may suffer since the new law requires them to use 80 percent of their premium dollars for claims and leaves them 20 percent to pay their bills. Also, with new insurance exchanges cropping up in a few short years, the need for an agent may diminish some.
• Physicians: There have already been reports that a severe shortage of physicians is expected over the next 10 years, which means those currently working will be overworked if more aren’t trained soon. But that’s not the only predicted impact. Some doctors will enjoy higher Medicare payments under health care reform; however, some say the potential 10 percent increase incentive still may not be enough since it will be far below market value.
• Entrepreneurs: Some say the self-employed and entrepreneurs may finally catch a break with their health insurance under the new reform. Before, large group insurance plans offered the best advantages, but now options will be available for help lower health insurance costs so that those who are not working for a major company don’t have to feel obligated to do so just to get quality coverage.

Well, there looks to be both good news and not-so-great news on the job front by workers affected by health care reform. But only time will tell what the true impact of the law will be.

“X the TXT” Campaign Hopes to End Texting and Driving

Posted in Auto Insurance , Auto Insurance Claims

April 29th, 2010
2 Comments

The U.S. Transportation Secretary, Ray LaHood, has joined forces with American Idol winner Jordin Sparks, as well as Congressional leaders and Allstate Insurance senior executives to urge Americans to stop texting and driving. With previous recommendations to stop the action, this group hopes that their “X the TXT” campaign will help the message finally sink in.

About “X the TXT” Campaign

The “X the TXT” campaign was initiated to encourage teens and their parents to stop texting on their electronic devices while behind the wheel. The campaign is a part of a broader effort initiated by Allstate Insurance to make the roads safer by reducing distracting driving and essentially lowering auto insurance rates.

The campaign began with an official 30-city tour that included pledge events, a Facebook virtual pledge page and a petition urging Congress to address the issue of texting and driving. So far, 75,000 Americans have pledged not to text and drive and another 5,000 have signed a petition urging Congress to pass federal legislation banning texting and driving.

Texting and Driving Raises Auto Insurance Rates

Not only have studies shown that texting and driving is dangerous because of the obvious – it takes your attention away from the road – but there is a direct correlation between auto insurance rates and texting and driving. If you get into a car accident while texting, your insurance company will be on the hook for paying for the other car and injuries, as well as your car if your comprehensively covered.

As a result, your auto insurance rates will increase and your monthly premium will be higher. There are so many reasons to stop texting and driving, including increasing the safety of you, your passengers and other drivers on the road. But if none of those reasons appeal to you then eliminate this practice to keep your auto insurance premium low.

What in My Home is Covered by Home Insurance?

Posted in Compare Home Insurance , Home Insurance

April 28th, 2010
1 Comment

Home is not only where the heart is, but also where we store our most valuable and precious items. Our walls and mantles are covered with family portraits, children’s art and sentimental knick-knacks. Additionally valuable items that are expensive to replace abound. Stereos, TVs, computer equipment, jewelry and designer clothing are all under your roof and making sure your home contents insurance policy is up to par is a necessity to ensure that you get the money to replace these items if tragedy ensues.

What is Covered?

When it comes to home insurance policies, there are standard provisions home contents. Typical home insurance policies will provide financial assistance for dwelling, liability and loss of use. Additionally, there is some degree of coverage for items that are either stolen or damaged beyond repair.

However, everyone has a different range and value to the possessions they own, so making sure your home contents insurance is in-line with your standard of living is essential.

Types of Home Insurance for Contents

Home contents insurance is broken down to three levels of protection based on the amount of assets a person has.

Consumers can choose from low, average or high value coverage. To prevent fraud, proof of purchase will be required to prove the items that you are trying to secure an insure claim for are of a particular category (for instance, you need to prove that you have that $10,000 flat screen HDTV to get your claim money.) The items covered by the home contents insurance include unfixed household goods like appliances, shutters, countertops, carpet, furniture, electrical appliances and even some jewelry. However the amounts are capped based on the level of insurance protection purchased.

That is why extra riders may be required for extra value items such as jewelry, arts, antiques, oriental rugs, computers and electronics. These items are some of the most expensive in the market and there is a good chance that the original purchase price and value of these items will far exceed the standard insurance limit. Although it may cost a bit extra for riders of any type, imagine only receiving a total of $1,000 for all your jewelry, including your pricey and treasured engagement ring.

While it is on your mind, take the time to research your current home insurance policy. By reading all the fine print you will determine your exact level of protection provided by your level of home content insurance. If you find your current caps are a bit too limited, don’t worry, as there are plenty of options for cheap contents home insurance available.

A Look Inside the National Flood Insurance Program

Posted in Home Insurance

April 27th, 2010
7 Comments

Youve probably heard a lot about the National Flood Insurance Program in light of the extensions it has been granted over the past year. However, recently the program expired again because Senate failed to grant another temporary extension before it recessed for Easter break.

Because of all of the changes the program has undergone, people have started asking questions about the program as a whole. So to address this, lets take a closer look at the flood insurance program.

What is the National Flood Insurance Program?

The National Flood Insurance Program (NFIP) was created and is managed by the Mitigation Directorate, which is a component of the Federal Emergency Management Agency (FEMA). There are three components the NFIP:

• Flood insurance
• Floodplain management
• Flood hazard mapping

The idea of the program is to enforce floodplain management ordinances to reduce future flood damage. In order to do this, the program creates floodplain maps that determine whether homeowners live in high-risk areas. If they do, it may be recommended that they make adjustments to their homes to avoid flood damage. Also, it may be required that they purchase Federally-backed flood insurance.

The floodplain maps change for time to time and have recently been adjusted. So its good to check your area to see at what risk level your home sit in.

Past, Present and Future of NFIP

U.S. Congress created the NFIP in 1968 as a way to provide a way to reduce the escalating costs associated with repairing damaged buildings caused by floods. Currently, homeowners policies do not cover damage caused by floods, which means if you dont have flood insurance, structural and personal property losses caused by floods may not be covered by flood insurance policies.

While the future of NFIP is solid, it hasnt looked this way over the past year because the program has repeated expired and had to be extended. The reasons for the extensions, however, are not because the integrity of the program is question.

Senate, in particular, has been questioning whether to expand flood coverage so that it also includes windstorms like tornados and hurricanes, which are also not covered by homeowners policies because they are regional issues vs. national issues.

Where to Purchase NFIP-Backed Flood Insurance

For the past few weeks, flood insurance hasnt been available because Senate failed to extend the program after its expiration date came and went on March 28, 2010. The reason for the failed extension was that lawmakers were working to include windstorms into the coverage, yet recessed for Easter break before it could happen.

In the meantime, some homeowners have not been able to purchase or renew their flood insurance. However, when it does come available again, you will be able to purchase coverage from your private homeowners insurance company.

As for cost, flood insurance prices vary depending on the area. Of course, you could shop around to make sure youre not paying more than you desire for coverage. But more than anything, its good to consider purchasing it because if a flood strikes your dwelling or business and youre not covered, you may have to come out of thousands of dollars to repair the damage.