Insurance Blog

Introducing a New and Different Patent-Pending Family of Annuities

2007-12-09T19:55:00.000+07:00

post by palado

December 5, 2007

Insurance marketing company Senior Market Sales, Inc. introduces the new BPASelect and BPASelect Bonus family of annuities from the Annexus Group. With the same basic makeup as other fixed indexed annuities, the difference is in three patents pending:

A new structural design that is more stable than annual reset in volatile markets
The ability to track annuity values daily

A Family Endowment Rider guaranteeing a 5% annual death benefit increase(1)In 2006, the original BalancePlus Annuity (BPA) became the largest product launch in the history of the indexed annuity industry. So far in 2007, over $1 billion has flowed into the BPA and BPABonus family of products. In its 2007 Readers Choice Awards, Senior Market Advisor readers voted BPA the “product offering the most value for seniors” and the “product offering the most potential for growth.”

The new BPASelect series builds on this success by incorporating new allocation options and a menu of riders enabling agents to customize the product to truly fit client needs. Product highlights include:

The 6-year product offers an optional 5% bonus rider, two allocation options, 5% commission with all contract provisions fully guaranteed through the surrender period. The 10-year product offers an optional 10% bonus rider, 8% commission and a choice of two strategies, both with excellent upside potential.The 12-year product is most like the original BPA.

It incorporates the original Balanced Allocation Strategy with no spread or cap, and also offers two additional strategies that may provide higher long-term growth potential.For more information please see www.seniormarketsales.com/BPA-Select *

New Jersey Department of Motor Services

2007-12-09T19:52:00.000+07:00

New Jersey Car Insurance Requirements

There are two types of New Jersey auto insurance policies—Standard Auto Insurance and Basic Auto Insurance. The most purchased auto insurance in the state is the standard auto insurance policy. Here's what you'll get with this type of coverage: Bodily Injury Liability — can be as low as $15,000 per person, $30,000 per accident, Property Damage Liability — can be as low as $5,000 per accident, Personal Injury Protection (PIP) — can be as low as $15,000 per person or accident. In New Jersey, all standard auto insurance policies are required to carry uninsured motorist coverage and underinsured motorist coverage. You may choose to add collision and comprehension coverage to your policy. Basic auto insurance policies are designed to lower the cost of New Jersey auto insurance, offering insurance to every New Jersey driver

New york health insurance

2007-11-06T16:12:00.000+07:00

post by palado

Searching for New York health insurance is easier than ever before. If you live in the Big Apple you should never have any problems searching and finding health insurance. Of course this is the same no matter where you live, but when you are located in New York you have many more options available to you thanks to the sheer number of people in companies who are in the area. With that in mind, you need to search around to find the New York health insurance that is perfect for you.

No matter if you are searching for individual or business health insurance, you should not run into many barriers if you live in New York. The best thing for you to do is start your search on a local level. The fact of the matter is that you should not have any problems finding a New York health insurance company in your area. There are plenty of them to choose from, and all you have to do is make a final decision. But before you choose a New York health insurance company that is local, you may also want to look at further options that are available on a nationwide level. After all, just because you live in New York does not mean that you have to do business with a company that is in your area.

The great thing about New York health insurance is that there are many options to choose from. This makes things much easier on you, and allows you to be sure that you are making the right decision. But remember, New York health insurance is just like it is in any other state. If you make the mistake of hurrying up and choosing the wrong option you will be disappointed in the end.

New York health insurance options are nearly endless. You should make sure that you take each one into consideration so that you find what is best. Be happy that you live in New York if you are in search of any type of health insurance policy.

Bank Annuity Sales Surge in First Half of 2007

2007-11-04T09:24:00.000+07:00

post by palado

Sales of annuities in banks surged in the first half of the year, according to a report by a financial institution market watcher.

The most recent Kehrer-Jackson Bank Annuity Sales Survey shows bank annuity sales climbed 17% in May over the previous month, to $4.1 billion from $3.5 billion, and have soared 41% since January, when sales were $2.9 billion.Sales levels in May were the highest they've been in the last 12 months, the report said.Historically, spring is usually a strong period for sales, especially fixed annuity sales, because it's the time when many bank certificates of deposit (CDs) expire, explained Ken Kehrer, president of Kehrer-LIMRA, of Princeton, N.J., which prepared the report with JacksonNational Life Distributors, of Lansing,

Mich.Fixed annuity sales are usually linked to CD sales, Kehrer said. As CD sales rise, fixed annuity sales usually flatten or decline.Even with seasonal factors taken into consideration, Kehrer said, "May is somewhat stronger than we would have expected. That suggests that there was some pent-up demand for fixed annuities.

"According to the monthly survey, fixed annuity sales grew 13% in May over the previous month, to $1.7 billion from $1.5 billion, and 55% from January, when sales were $1.1 billion.The survey showed that the products hit a six-month nadir in February, garnering only $1 billion in sales, before recovering in March with $1.5 billion in sales.The May sales gains by fixed annuities were a bit surprising, Kehrer observed, because the spread between interest paid on CDs and the average bonus rate paid by fixed annuities remained unfavorable to the annuity products.

Fixed annuities sales usually benefit when bonus rates are 2% or more above CD rates, he explained. In May, the spread was only 1.7%, an improvement over the previous month, when it was 1.62%, but still below the magic 2% mark.However, Kehrer revealed that during the summer months, the spreadcrossed over the 2% line, which should bode well for fixed annuity sales during that period.

Variable annuities continued to outperform their fixed peers, as VAs have done nine of the past 12 months.At $2.4 billion, VA sales were 20% over the previous month, when sales were $2 billion, and 33% higher than they were in January, when they were $1.8 billion.Sales grew on a year-to-year basis, too, with the May numbers being 14% greater than they were during the same period in 2006, when sales were $2.1 billion.According to Kehrer's report, in May, banks sold $1.41 in variableannuities for every $1 in fixed annuities.

For the same period in 2006, the ratio was $1.11 to $1.As long as the interest rate environment remains as it is, that discrepancy between fixed and variable is likely to continue for the rest of the year, said Greg Cicotte, executive vice president and national sales manager at Jackson National Life Distributors.

"If we see a bump upward in fixed annuity sales in the coming weeks or coming months," he said, "it will have less to do with interest rates than with market volatility and people making the flee for safety."In the past, volatile times in the stock market have been bad newsfor variable annuities, but a number of features added to the products in recent times have given them more cachet for investors, he noted.

"We've seen them act pretty resiliently in the face of some marketturbulence primarily because of the living benefits that have been introduced over the years," he maintained. "Because of those benefits,people are feeling comfortable staying in the market even during turbulent times."An underlying success story for VAs can be seen when their sales are compared to those of mutual funds in banks, Kehrer asserted.Variable annuities have been eating into mutual funds' market share in banks.

In May, for example, $3.67 of mutual funds were sold for $1 of variable annuities, a substantial improvement over the previousmonth, when $4.25 of mutual funds were sold for every $1 of VAs.Part of that success story can be attributed to the dearth of bad press focused on VAs in recent times, Kehrer argued.

Car Insurance - Who is Insured

2007-10-30T11:47:00.001+07:00

post by palado

Knowing who is an insured on your car insurance policy is an important factor we all should know before lending someone a vehicle. Not knowing who is an insured can lead to uncovered accidents leading to legal, financial, and physical problems.

The following information is in regards to Liability coverage which covers bodily injury and/or property damage to others as a result of an accident that an insured becomes legally responsible for up to the policy coverage limits.

Although there are some exceptions and exclusions that we’ll cover later, in general most policies consider the following to be insured:

The name insured and members of his or her family while using any car.

Anyone using the insured’s car with the insured’s permission or the reasonable belief that he or she is entitled to do so.

Other people or organizations to the extent that they share liability with an insured.

Other persons or organizations for their liability arising out of an accident involving any auto or trailer used by the insured or a family member. (does not apply if the auto or trailer is owned by the person or organization in question)

To take a closer look at these groups, first, the named insured, his or her spouse or any family member is an insured for the ownership, maintenance or use of any auto or trailer.

Suppose the named insured’s 16-year-old son borrows a neighbor’s car and causes an accident. The son would be considered an insured for Liability coverage under the named insured’s Personal Auto policy.Any person using the named insured’s covered auto with the insured’s permission or the reasonable belief that he or she is entitled to do so is also covered for Liability insurance.

For instance, a neighbor would be insured under the policy if he or she had an accident while driving the named insured’s car, but would not be covered under the name insured’s policy while driving his or her own vehicle.

The policy also insured any person or organization who is legally responsible for the acts or omissions or anyone insured under Liability coverage of the policy that results in an auto accident involving a covered auto.

This is commonly referred to as vicarious liability.In addition, the policy insures any person or organization who is legally responsible for the acts or omissions of a named insured or family member that results in an accident involving any auto or trailer; however, such a person or organization is not covered if they own or hire the auto or trailer.

It is important to be aware of exclusions that apply to your policy. There are a number of exclusions that help define coverage under the Liability Coverage section of the Personal Auto policy.

Usually, Exclusions include:

Bodily injury or property damage caused intentionally by the insured.
Damage to property owned or being transported by the insured.
Damage to property rented to, used by or in the care of the insured.
Bodily injury to an insured’s employees.
Liability arising out of an insured’s ownership or operation of a vehicle used as a public or livery conveyance such as at taxi or limousine.
Liability arising while the insured auto is being used in an auto business.
Use of a vehicle without permission.
Motorized vehicles with fewer than four wheels or designed for use of public roads.
Vehicles other than covered autos that are owned by the named insured of furnished for the named insured’s regular use.
Vehicles other than covered autos that are owned by family members or furnished for their regular use. (does not apply for the named insured)
Vehicles used in prearranged racing or speed contests.

It is important to know your particular auto insurance policy’s terms and conditions. The information listed in this may be different from your actual terms in conditions.

Visit OnlineAutoInsurance.com’s learning center to learn more about car insurance.

OnlineAutoInsurance.com provides learning resources as well as the ability to find the right auto insurance company for your needs. Feel free to obtain your online auto insurance quote by completing one simple form.

Auto Insurance - The Basics

2007-10-30T11:41:00.000+07:00

post by palado

Auto insurance was designed to protect individuals in case of an automobile accident or loss to their vehicle.

First, people want to be protected against their liability in case they injure someone or damage someone else’s property through the use of their automobile.

Second, people want protection for damage to their own automobile in case the auto is damaged in an accident or suffers other types of damage, such as fire or theft.

Since the homeowners form specifically excludes automobile coverage, they must be covered separately, through a policy called a personal auto policy, or PAP. Because the PAP contains both Property and Liability coverage, it is considered a package policy.

The Personal Auto policy consist of Declaration page and policy form. The policy form contains four separate coverages, each with its own insuring agreement, exclusions and conditions.

They are:

Part A- Liability Coverage – This coverage may be written alone or with any of the other coverges. It provides coverage for bodily injury and property damage to others for which you are liable for up to the policy limits.

Part B- Medical Payments Coverage - This coverage is optional, but it may only be written if the policy includes Liability Coverage. It provides medical coverage to a certain limit.

Part C- Uninsured Motorists Coverage - This coverage may only be written in conjunction with liability coverage and is subject to other laws that vary from state to state. It is mandatory in some states; in others the insured may reject the coverage in writing. It provides protection against damage to you, your passengers and your vehicle as a result of an uninsured driver.

Part D- Coverage For Damage To Your Auto (Physical Damage) - This coverage consists of two parts, Collision and Other Than Collision and may be written alone or with liability coverage.

The Personal Auto policy can be issued to an individual or husband and wife residing in the same household. Many Personal Auto policies are written to include all of the available coverages, but the insured does not have to purchase each one.

The above is a quick summary of usually available coverage. You must be aware that there are exclusions, limits and conditions to all the above coverage that you should be aware of.

OnlineAutoInsurance.com has licensed agents ready to go over your coverage options and answer any questions you may have.Log onto OnlineAutoInsurance.com to obtain free online car insurance quotes from multiple companies with one simple process

Consumer Alert: Under-insured auto

2007-10-13T12:29:00.000+07:00

post by palado

(National) June 9, 2005 - Kathy Sommerich Handel had a car accident last year. Her two children were in the back seat. "It was really scary because the kids were screaming. They had never experienced anything like it."

Fortunately, no one was hurt. Kathy's also lucky that she had enough insurance to cover the damage, so there was no financial impact either. How can you keep a collision from becoming a financial disaster?

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

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

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

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

And in the chaos that follows an accident, people often forget what information they need. Ask to see the driver's license and insurance card as well as the vehicle registration. Also, be sure to note the make, model and license plate of the car.

Kathy says she made a point of staying calm after her accident, and that helped ensure that she got the information she needed.

Consumer Reports says it's a good idea to carry a disposable camera in your car in case of an accident. You can take pictures of the scene, your car and the other vehicle involved. This can help protect you against claims for damage that you didn't cause.
Reported by Judi GatsonPosted 3:40pm by Bryce Mursch

Consumer Reports has no commercial relationship with any advertiser or sponsor appearing on this Web site. Copyright © 2000-2005 Consumers Union of U.S., Inc.

MIB Life Index Reports North American Life Insurance Activity off 3.7% in August

2007-09-29T19:42:00.000+07:00

post palado

WESTWOOD, Mass., Sept. 28 /PRNewswire/ -- North American application activity for individually underwritten life insurance was down -3.7% in August, year-over-year according to the MIB Life Index(SM). Year-to-date (YTD) U.S. and Canadian application activity remained level from July's volume, off -3.3% compared to the same period last year.U.S. application activity declined -4.8% in August year-over-year, all ages combined.

Declining activity was seen in the 0-44 and 45-59 age groups, off -6.2% and -4.1% respectively, while the 60+ age group extended a five month growth trend up +1.3% versus August 2006. YTD, U.S. application activity lags -3.6% behind the same eight month period in 2006. August activity was up +0.8% versus that of July; historical growth for this period has been +3.0% to +3.5% over the past three years.Canadian application activity was up +4.1% in August year-over-year, all ages combined.

This is the highest application volume for an August ever recorded since the inception of the MIB Life Index in 2001. Application activity was up across all three age groups: ages 0-44, up +1.9%; ages 45-59, up +7.7%; and ages 60+, up +8.8%. YTD, Canadian application activity is closing the gap to positive territory, off -1.4% compared to same period 2006.Monthly Percent Change vs. 2006 U.S. Canada Total August 2007 -4.8 % +4.1 % -3.7 % July 2007 -2.6 % +6.5 % -1.5 % YTD 2007 -3.6 % -1.4 % -3.3 % Monthly Percent Change vs. Previous Month U.S. Canada Total August 2007 +0.8 % +0.4 % +0.7 %

NAMIC Applauds House Passage of TRIA Legislation, Urges Swift Senate Action

2007-09-22T16:13:00.000+07:00

post by palado

WASHINGTON (Sept. 19, 2007) – Bipartisan legislation to extend the terrorism insurance backstop for 15 years is a good first step on this important issue, said the National Association of Mutual Insurance Companies. The measure, H.R. 2761, passed the U.S House of Representatives by a vote of 312 to 110.

“We commend members of the House for advancing this critical piece of legislation,” said Marliss Browder, NAMIC’s senior federal affairs director. “While we wholeheartedly endorse many of the provisions in the bill, we remain concerned that the inclusion of a mandate for insurers to offer coverage for non-conventional weapons could jeopardize the ability of small and medium-sized insurers to offer terrorism coverage – to the ultimate detriment of policyholders.”

The bill would require insurers that offer terrorism coverage to make available insurance for losses from attacks by nuclear, biological, radiological and chemical agents. Such events are considered uninsurable for many insurers.

“We continue to believe that attacks using NBCR weapons would likely be so devastating to American society that the question of how to deal with them would be best served by creating a special panel to examine all the issues involved with such attacks.”

Browder said NAMIC was pleased with other elements of the legislation, including:

A reduced event trigger for federal involvement, from $100 million to $50 million, and to $5 million for a second event following an initial industry terrorism loss of more than $1 billion.

Lower insurer deductibles for conventional terrorism, from 20 percent to 5 percent, if another conventional attack exceeds $1 billion.
Extending the program for 15 years.

A reduced insurer co-pay for NBCR terrorism events, from 15 percent to as low as zero, as the size of insurer losses increase.

An opportunity for some smaller insurers to seek opt-out permission from the NBCR make available requirement where compliance with the requirement would lead to insolvency in the event of certain attacks.

“We appreciate the hard work by members of the House to get this legislation on the right track to enable all property/casualty insurers to participate in the program,” Browder said. “We look forward to working with members of the Senate to quickly pass this vital legislation, as time is of the essence. The current law is set to expire Dec. 31, less than four months from now.”

Insurance Commissioners Hold Coastal Issues Public Hearing

2007-09-22T16:10:00.000+07:00

post by palado

KANSAS CITY, Mo. (Sept. 20, 2007) — National Association of Insurance Commissioners (NAIC) President and Alabama Insurance Commissioner Walter Bell, along with other members of the NAIC’s Southeastern Zone, is holding a public hearing to address insurance issues in coastal zones. Bell — along with state insurance regulators from Florida, Louisiana, Mississippi and South Carolina — will host the hearing on Monday, Sept. 24.

“There are pressing needs in the Gulf states. Rates are rising and consumers are having their policies cancelled or non-renewed.” Bell said. “Our goals are to seek input on the steps that we, as insurance regulators, will take to help ensure the affordability and availability of insurance for America's consumers — as well as bring stability to the coastal insurance market."

In addition to increasing deductibles and introducing other coverage limitations, insurers have been withdrawing from coastal markets by cancelling or non-renewing policies. Further, the cost of the insurance products in the Gulf Coast area is rapidly rising.

U.S. Representative Jo Bonner (R-Ala.) is scheduled to attend the NAIC public hearing. In addition, representatives from Travelers, State Farm, RenaissanceRe, Municipal Bond Insurance Association (MBIA) and ProtectingAmerica.org are scheduled to provide testimony. Additional witnesses are pending.

“The intent of the hearing is not to cast blame or disparage insurers for past actions,” Bell added. “State insurance regulators want to work together with the industry and interested parties to achieve stability in the marketplace. We face common problems that call for a collective solution.”

The public hearing will begin at 9 a.m. on Monday, Sept. 24, in Mobile, Ala., at The Battle House Renaissance Hotel, 26 N. Royal Street.
About the NAIC

Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and the five U.S. territories. The NAIC’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials.

For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC on the Web at: http://www.naic.org/press_home.htm.

Clinton Calls for Universal Health Care

2007-09-19T16:02:00.001+07:00

Posted by The Associated Press Yesterday

“I know my Republican opponents will try to equate health care for all Americans with government-run health care”

Democrat Hillary Rodham Clinton called for universal health care on Monday, plunging back into the bruising political battle she famously waged and lost as first lady on an issue that looms large in the 2008 presidential race.

'This is not government-run,' the party's front-runner said of her plan to extend coverage to an estimated 47 million Americans who now go without.

Her declaration was a clear message to Republicans, the insurance industry, businesses and millions of voters who nervously recall what sank her effort at health care reform 13 years ago in her husband's first term _ fear of a big-government takeover.

The Hartford Expects Some Lower Results

2007-09-19T16:01:00.001+07:00

Posted by Hartford Courant

Hartford Financial Services Group Inc. said Monday that worsening hedge fund results will reduce yields on its so-called alternative investments by at least half in the third quarter.

Returns on about $2 billion in hedge funds and private equity investments will fall to 'low single digits, at best' in the period ending Sept. 30, the company said. The assets, 2.1 percent of the company's holdings, returned about 20 percent in the second quarter, said Chief Financial Officer David Johnson.

The Hartford's hedge fund returns are 'broadly representative' of the industry's results, Johnson said. Hedge funds had their worst monthly performance in more than a year in August, according to Chicago-based Hedge Fund Research Inc.

Business Intelligence Portal

2007-09-19T15:56:00.000+07:00

post by palado

Have you spent millions of dollars and thousands of man-hours in implementing sophisticated ERP and financial systems? Can you tell your CEO right now which customers, products and channels are profitable and contributing to increased shareholder value? With ALG Software's Enterprise Performance Optimization (EPO) Suite YOU CAN. ALG Software’s EPO Suite makes superior profitability and management decisions possible. This easy-to-use, best-of-breed software solution allows managers and executives to use the valuable information they already have to easily perform profitability analytics, enterprise planning, forecasting and driver-based budgeting. Used by some of the largest most progressive insurance companies in the industry, the EPO Suite links operational and financial perspectives to deliver visibility into future performance and the insight to make it better. Learn More By Visiting the ALG Software CPM Insurance Resource Page www.algsoftware.com/insurance.

News briefs and articles on business intelligence are available below.

SBA FEMA Centers

2007-09-08T10:31:00.000+07:00

post by palado

To: STATE EDITORS

Contact: Michael Lampton of the SBA, +1-404-347-3771

ATLANTA, Sept. 7 /PRNewswire-USNewswire/ -- The U.S. Small Business Administration (SBA) announces today that the FEMA Disaster Recovery Center in Steele County will transition into a SBA Disaster Loan Outreach Center. The Center will open Monday, September 10 at 9 a.m. in Owatonna, Minnesota and will remain open until further notice at the location and time indicated below. SBA staff at the Center will continue providing one-on-one assistance to the disaster survivors who received damage from the severe storms and flooding August 18, 2007 and continuing.

The establishment of the Disaster Loan Outreach Center demonstrates the agencys commitment to ensure that every qualified individual and business receives the help they need to recover from this disaster. Assisting individuals to recover from a disaster is our primary mission. Therefore, we are encouraging those affected by this disaster to visit any of the Centers and to obtain individual assistance with their applications from our representatives, said Frank Skaggs, Director of SBA Field Operations Center East. Current Centers are located as follows:

SBA DISASTER LOAN OUTREACH CENTER
Opens: Monday, September 10, 9 a.m.
Hours: Monday - Friday, 9 a.m. to 6 p.m.Saturday, September 15; from 9 a.m. to 6 p.m.
Steele County143 W. Broadway StreetOwatonna, MN 55060FEMA/SBA Disaster Recovery CentersHours: Monday-Saturday from 9 a.m. to 7 p.m.
Sunday from 9 a.m. to Noon
Fillmore County Houston County
TRW West Automotive Bldg. Hokah Fire Station
901 Home Street Highway 44 & Hwy 16
Rushford, MN 55971 Hokah, MN 55941
Dodge County Olmsted County
Dodge Center Community Center American Legion
35 E. Main Street 11 Madison Avenue SW
Dodge Center, MN 55927 Eyota, MN 55934
Opens: Monday, Sept. 10 at 1 p.m.
FEMA/SBA Disaster Recovery Centers (Cont.)
Hours: Monday-Saturday from 9 a.m. to 7p.m.
Sunday from 9 a.m. to Noon
Steele County Winona County
143 W. Broadway Street JC Penney Building
Owatonna, MN 55060 1858 W Service Dr. (Hwy 61 &

Buy Travel, Flight and Global medical Insurance with 4to Insurance !

2007-09-02T10:42:00.000+07:00

post by palado

We represent major travel insurance providers and feature the best travel protection plans available. Compare the benefits and price of available policies and purchase the travel insurance plan that best suits your needs via our instant, safe and secure online application process.

We've collaborated with WorldTravelCenter to take the hassle out of shopping for travel insurance. When you visit our partner's site, you will be instantly matched with some of the best agents in the business.

Using Policy Picker on the WorldTravelCenter site makes it easy for you to quote, compare, buy, and save on travel insurance packages offered by leading travel insurance companies.

In addition to Travel Protection Packages, you will also find information and pricing for Travel Medical Insurance, Annual Multi-Trip Insurance, Group Travel Insurance, Emergency Evacuation Plans, International Health/Life Insurance, Flight Accident or Common Carrier Accident Protection, DBA Workers Compensation, plus Individual or Group War Risk/High Risk Travel Insurance.

Personal Insurance

2007-08-25T15:14:00.000+07:00

post by palado

Personal Insurance

In today’s market, it is important to realize that no two insurance companies are the same. While insurance companies differ in coverage design, claim management abilities, and emphasis on customer service, it can often be advantageous for individuals to work through an independent insurance agent. Personal insurances available include Auto, Motorcycle, Home and Boat Insurance. For more information about these products, please select from the list below.

Auto
Motorcycle
Home
Boat

As one of New Hampshire’s largest insurance agencies, Watson Insurance has access to more sources of insurance coverage in the marketplace than most. We represent a wide variety of insurance companies, being careful to choose the one most suited to meet our individual clients needs. In addition, we understand service is important, and because of that our clients are afforded a dedicated Customer Service Representative as well as Claims Executive to assist them in a prompt, efficient manner.

Phone or e-mail us today for quick comparative quotes with our leading companies. We are here to help answer your questions and to provide you with the best possible coverage for your premium dollars. If you are pleased with us, spread the word! We will be happy to give the same great service to your friends and family. Here at Watson Insurance we are only a quick call or e-mail away.

New Members Only—$12,000 of Term Life and AD&D at no cost for one year!

2007-08-25T15:11:00.000+07:00

credit by palado

New AFT members are entitled to $12,000 of life insurance protection for one year at absolutely no cost. This plan also provides for payment of an additional $12,000 in the event of a member's death as a result of an accident.

Click here for more information or to print the insurance activation form. The insurance administrator's address, where the signed activator must be sent, appears on the bottom of the form. If you have questions, call the AFT dedicated toll-free number at 888/423-8700.

Members qualify for this outstanding benefit as long as they are new AFT members and actively working. Members must complete, sign and return an activation form to be eligible for this valuable coverage. The coverage will become effective on the first day of the month after the completed and signed activation form is received by FPA, the AFT + insurance administrator.

New members may also enroll in additional coverage without a Statement of Health within 12 months of joining AFT as long has you have not been hospitalized or treated for any condition within the prior 90 days and are considered to be an active employee.

Underwriter - Metropolitan Life Insurance Co. (MetLife)

Insurance Administrator - Future Planning Associates, Inc.

Bush Administration Opposes 'Scheme Liability' in Key Investor Lawsuit

2007-08-17T22:45:00.000+07:00

Credit by By Marcy Gordon

The Bush Administration took the side of defendant companies in a Supreme Court case that could determine the fate of other investor lawsuits, including one linked to the Enron scandal.

At issue in the case before the United States' highest court is whether third parties such as investment banks, accountants, lawyers or vendors can be found liable in shareholder lawsuits for scheming with companies accused of deceiving investors.

The brief filed by the Justice Department's solicitor general, who represents the Bush administration before the court, maintains that allowing such liability would vastly overreach the securities laws against Congress' intent.

It could potentially expose the third parties "far removed from the market to billions of dollars in liability when (public companies) make misstatements to the market,'' the solicitor general, Paul Clement, argued in the brief. "Congress consciously struck a balance ... by empowering the Securities and Exchange Commission alone to pursue cases of aiding and abetting'' corporate fraud.

The importance of the case was underscored in mid-June when Bush personally weighed in, telling Clement that it is important to reduce unnecessary lawsuits and that the SEC, rather than shareholders, is in the best position to sue for damages.

The Supreme Court's ruling in the case could determine whether shareholders can pursue suits to recover investment losses if they can prove collusion between Wall Street institutions and companies accused of defrauding investors.

"While I am certainly not surprised, I am disappointed that the federal government has once again decided to favor the interests of large corporations and investment banks over those of individual and institutional investors,'' Ohio Attorney General Marc Dann said in a statement. Dann, a Democrat, was one of 30 state attorneys general who earlier sided with investors in the case and referenced the Enron scandal 55 times in their court filing.

As solicitor general, Clement's view carries weight among the Supreme Court justices, even if the court ultimately rules against his position

The controversy escalated in June when the administration, through Clement, rejected an SEC recommendation in the case and did not support the position of investors suing for damages. He did that by not filing a friend-of-the-court brief in favor of the plaintiff shareholders' position.

The brief that Clement submitted on Wednesday met the court's deadline for filings in support of the defendant companies' position in the case, Stoneridge Investment v. Scientific-Atlanta. He did agree with the SEC on one point, saying that a federal appeals court erred by concluding that a deceptive act is limited to misstatements or omissions. He said in the brief that it "potentially reaches all conduct that is manipulative or deceptive.''

In recent weeks, several prominent lawmakers of both parties and former SEC officials have urged the administration not to support the defendants. On the other side, a bipartisan array of three former SEC chairmen, 13 other former SEC officials and 11 academic experts have urged the administration to take that position.

Although the court has not decided whether to hear arguments in the Enron case, justices have agreed to review the Stoneridge case, a similar suit brought by investors against suppliers to one of the nation's largest cable TV companies. The court is expected to hear the Stoneridge case in October.

If the court rules against investors in the cable TV suit, it could mean that other cases — like the Enron shareholders' suit — would not be able to go forward.
__

On the Net:

Solicitor General's office: http://usdoj.gov/osg

Securities and Exchange Commission: http://www.sec.gov

Supreme Court: http://www.supremecourtus.gov/

BIG “I” Applauds State Legislators For Supporting Mccarran-Ferguson

2007-08-11T13:49:00.000+07:00

Post by palado

NCSL says repeal of anti-trust exemption would not benefit consumers

WASHINGTON, D.C., August 9, 2007—The Independent Insurance Agents & Brokers of America (the Big “I”) applauds The National Conference of State Legislatures (NCSL) for passing a resolution supporting the preservation of the McCarran-Ferguson Act’s limited anti-trust exemption and opposing congressional proposals to revise the decades-old law.

The resolution was adopted by NCSL’s Communications, Financial Services, and Interstate Commerce Committee during the organization’s 2007 Legislative Summit. The annual meeting – which was attended by approximately 1700 bipartisan lawmakers from all 50 states -- took place this week in Boston.

“The Big ‘I’ and its 300,000 members nationwide commend America’s state legislators on this resolution and we agree that the McCarran-Ferguson Act is crucial for consumer choice and comparison shopping, smaller and regional insurers, competition, and more ,” says Big “I” CEO Robert A. Rusbuldt. “We believe the qualified application of federal antitrust law to this sector has served both the market and consumers well. Where marketplace anomalies exist, it is not due to the McCarran Act. In fact, without the Act, the situation would likely be exacerbated for consumers.”

In addition to describing NCSL’s support for the state regulatory system and the current McCarran-Ferguson framework, the resolution expresses the legislators’ opposition to the Insurance Industry Competition Act (S.618 and H.R. 1081). The statement argues that such federal proposals would not increase the availability or lower the cost of insurance and would instead undermine efforts to make the industry more competitive. The resolution also recognizes the pro-consumer aspects of the McCarran-Ferguson Act’s limited antitrust provisions, which promote competition by permitting the use of standardized insurance forms and the collection and sharing of historical loss data.

Big “I” Sr. Counsel for State Government Affairs Wes Bissett expressed the association’s agreement with NCSL’s assessment. “NCSL is 100% correct in pointing out that the potential loss of standardized forms would ‘make it more difficult for consumers to know what they are purchasing and to compare insurance options,’” says Bissett. “We urge Congress to consider the well-founded concerns of state policymakers before taking any action that could harm insurance consumers and hinder competition, particularly the ability of small and medium sized insurance companies to compete in the marketplace.”

NCSL is the latest state legislator organization to express its concerns with possible changes to the McCarran-Ferguson Act. In April 2007, the National Conference of Insurance Legislators (NCOIL) weighed in with House and Senate leaders and suggested that revisions to the act would destabilize insurance markets, threaten the ability of small and medium-sized insurers to compete with larger players, produce higher insurance prices and other detrimental consumer effects, and initiate years of costly litigation.

Founded in 1896, IIABA (the Big “I”) is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of more than 300,000 agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life, and health—as well as employee benefit plans and retirement products. Web address: www.independentagent.com.

Natural Catastrophe Commission Bill Provides For Important Examination of Disaster Mitigation, Relief

2007-08-07T14:19:00.000+07:00

Post by palado

August 1, 2007

WASHINGTON—A natural catastrophe commission bill scheduled for consideration today by the Senate Banking Committee would provide for an important examination of how best to mitigate disaster risks and deal with the after-effects of these events, according to the Property Casualty Insurers Association of America (PCI).

The bill establishing a commission to look at the various aspects of natural disasters and insurance includes evaluating whether there may be catastrophe exposures that are beyond the capability of the private market and individual state catastrophe funds to address. PCI believes that there is a need to encourage new capital to enter property insurance markets and facilitate innovative ways to cover difficult risks through enacting greater regulatory flexibility and lower regulatory costs. The commission's duties, as outlined in the bill, include looking at these issues as well as enactment and enforcement of tougher standards for building codes, property development and other loss prevention and mitigation requirements that are also vital when looking toward the future and evaluating this issue.

“PCI believes that developing and enacting effective public policy to address future natural catastrophes is one of the most significant issues facing the insurance industry,” said June Holmes, PCI’s interim CEO. “Experts agree that the nation faces the prospect of more frequent and severe natural disasters in the coming decade. Moreover, significant property development, population growth, and rapidly rising real estate prices in areas prone to natural disasters exacerbates the potential for increasingly larger human and economic losses as a result of such disasters, requiring stronger mitigation as well as greater financial resources to fund future recovery and repair efforts.”

PCI believes that it may be necessary for the federal government to offer liquidity protection to state catastrophe funds at the highest level consistent with the maintenance of stable markets and avoidance of widespread insurer insolvencies. It is also essential that any federal program include measures intended to promote freedom for markets to respond to these exposures, including meaningful limitations on the ability of participating states to control and/or suppress property insurance rates or to maintain other unnecessary restrictions. PCI is pleased to see that the bill includes an evaluation of federal and state regulatory issues as well.

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BIG “I” Supports Pomeroy-Cantor Intangible Assets Tax Bill

2007-08-07T14:17:00.000+07:00

Post by palado

Legislation would modernize depreciation schedule

WASHINGTON, D.C., August 6, 2007—The Independent Insurance Agents & Brokers of America (the Big “I”) supports a bill introduced Friday in the House that would allow purchasers of eligible small businesses to depreciate as much as $5 million of acquired intangible assets over the course of a five-year period.

The bipartisan bill, the “Tax Fairness for Small Business Act,” introduced by Rep. Earl Pomeroy (D-N.Dak.) and Rep. Eric Cantor (R-Va.), two members of the House Ways and Means Committee, would provide a more accurate amortization of intangible assets acquired through the purchase of small businesses, thereby increasing the liquidity of Main Street businesses.

“The Big ‘I’ has been a longtime proponent of common-sense tax reform on intangible assets acquired through the purchase of one small business by another,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs and federal relations. “We and our members are very pleased that Congressmen Pomeroy and Cantor are moving forward to provide tax relief to Main Street America’s businessmen and businesswomen, and we thank them for their work on this issue.”

Current law requires intangible assets to be depreciated over 15 years, even though these specific types of assets, such as customer lists, have much shorter shelf lives. In fact, experience has shown that these types of intangible assets have shelf lives closer to five years. The Big “I” consistently has supported shortening the depreciation schedule for these assets.

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Adding Annuities May Be Next Frontier In 401(k) Plans, Watson Wyatt Experts Say

2007-08-07T14:14:00.000+07:00

Copyright : PR Newswire
Source : PR Newswire
Wordcount : 632

WASHINGTON, Aug. 6 /PRNewswire-FirstCall/ -- Faced with the possibility that a growing number of employees will outlive their income in retirement, companies will likely consider offering annuities as a new investment option in their 401(k) plans, say experts at Watson Wyatt Worldwide, a leading global consulting firm.

"With the baby boomers beginning to retire, we will soon see how the first generation to be more reliant on 401(k) plans than traditional pensions makes do," said Robyn Credico, national director of Watson Wyatt's defined contribution practice. "Current and future retirees will have to pay more attention to details than previous retirees did. Many will not only find they have not saved enough, but also will struggle with what to do with a lump sum payout they will have to stretch over the rest of their lives."

Unlike traditional pensions, most of which provide a regular payment to retirees, retirement savings in 401(k) plans are usually distributed as a lump sum. As a result, it is up to retirees to manage their savings. Some purchase annuities on the open market, but the prices for such products are generally quite high and are significantly affected by interest rate fluctuations and other factors.

"Purchasing an annuity adds another level of complication to retirement," said Mark Warshawsky, director of retirement research at Watson Wyatt. "Employees must not only plan out their investment strategies, but also purchase annuities at the right time. Waiting a few months can mean the difference of hundreds of dollars in their monthly annuity income if interest rates change."

As employers consider offering annuities to boost workers' retirement security, many are looking for a broader range of products -- from simple, institutionally priced immediate and deferred annuities at retirement to flexible, portable in-service annuities.

It's to employers' advantage to help ensure employees have sufficient retirement income. Otherwise, they may see a generation of workers who cannot afford to retire," said Brian Hersey, an investment director and senior consultant with Watson Wyatt. "Having enough to live on and not outliving one's savings are the primary concerns of most retirees. Actively managing lump sums is a huge challenge, even for advanced investors. It is time for the investment industry to step up with a range of institutionally viable solutions to meet these needs."

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Travel Insurance Quotes

2007-08-07T14:12:00.000+07:00

Post by palado

Travel insurance is designed to pay for the unexpected losses that can arise when things go wrong before or during a trip or vacation. Purchased from a private company or a tour operator, travel insurance can pay for things like vacation and trip cancellation, baggage damage, repatriation, accidental death, emergency medical and health expenses, travel interruptions and delays, evacuation and overseas funeral expenses, legal assistance, and more. Some travel insurance policies provide further coverage for additional costs that vary between different providers. Various travel policies also offer separate insurances at specific costs such as for participation in high-risk sports (i.e. scuba-diving or skiing) or travel to high-risk countries (i.e. due to war or natural disasters) for the duration of your trip.

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Hurricane Katrina And Insurance: Two Years Later $40.6 Billion In Insurance Claim Dollars Aid Recovery

2007-08-07T14:04:00.000+07:00

Post by palado

Of More Than One Million Homeowners Claims 99 Percent Are Settled;

Few Remain in Dispute

Disaster Losses Along Atlantic and Gulf Coasts Likely to Escalate in Coming Years

NEW YORK, August 6, 2007 — The single largest loss in the history of the insurance industry occurred two years ago this month when Hurricane Katrina struck the Gulf Coast, causing$40.6 billion in insured damage. Nearly two years later, the overwhelming majority of claims have been settled.

The magnitude of Hurricane Katrina triggered a reexamination of how the United States deals with the financial consequences of natural disasters among insurers, reinsurers and public policymakers, which continues today, according to the Insurance Information Institute (I.I.I.).

Despite the attention focused on lawsuits filed following this catastrophic storm, the number of claims in litigation accounted for a very small percentage of the total number of claims filed and most of those are no longer in contention. The I.I.I. estimates that fewer than 2 percent of homeowners claims in Louisiana and Mississippi were disputed either through mediation or litigation.

Insurance companies have paid an estimated $40.6 billion to policyholders on 1.7 million claims for damage to homes, businesses and vehicles in six states. By contrast, Hurricane Andrew, the previous record holder, resulted in $15.5 billion in losses in 1992 ($22.2 billion in 2006 dollars) and 790,000 claims.

Louisiana ($25.3 billion) and Mississippi ($13.6 billion) received by far the most insurance claims dollars to aid in their recovery.

Approximately 99 percent of the 1.2 million homeowners insurance claims from Hurricane Katrina, including those in hard hit Louisiana and Mississippi, have been settled. Claims payments to homeowners in affected states exceeded $16 billion, approximately 93 percent of which went to Katrina victims in Louisiana and Mississippi.

In Louisiana, only 537 out of more than 1,000 suits filed in U.S. District Court remain on the docket. The state-sponsored mediation program in Mississippi has settled 3,034 of 3,687 cases in that state.

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Blue Cross to Bill You For Getting A Bill

2007-07-22T15:19:00.000+07:00

So on Tuesday, I railed about Blue Cross sending customers a bill so that they can get a bill. Sheesh. Well, it turns out Blue Cross probably was not rescinding policies correctly. Amazingly, they even rescinded at least one policy for an undisclosed prior condition that was disclosed on the application.

One might think it is amazing that this happens, but, alas, it is not. Interestingly, most insurance companies do not look at the policy or the application until a claim is filed. At that point, the application is pulled and the insurance company goes through the application to see if there is grounds to rescind the policy. Seems a bit backwards to me.

You can read more about this and some additional commentary at Injuryboard.

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Blue Cross At It Again

2007-07-22T15:17:00.000+07:00

DOI Busts Contractors in Tahoe

2007-07-22T15:15:00.000+07:00

The California Dept. of Insurance announced a bust of contractors in the South Lake Tahoe area after the Angora fire. People are still trying to figure out what to do, but the unlicensed contractors are flocking to the area. Here is the Press Release in its entirety:

SACRAMENTO - Today Insurance Commissioner Steve Poizner announced the results of the first undercover "sting" operation stemming from the Angora Fire in South Lake Tahoe. The operation took place at a residence in the disaster area that was damaged by fire, but not destroyed.

On July 4, the California Department of Insurance's Enforcement Branch partnered with investigators from the El Dorado County District Attorney's Office and the California Contractors State License Board to identify unlicensed public adjusters as well as unlicensed and uninsured contractors. The operation resulted in five arrests. The El Dorado County District Attorney's Office is prosecuting the cases.

"Preying on fire survivors is unconscionable," said Commissioner Poizner. "My department will continue to do everything possible to ensure residents aren't burned twice by contractors unwilling to protect their employees and customers from unnecessary liability."

None of those arrested possessed either a city/county business license (a misdemeanor) or a contractor's license (a misdemeanor enhanced to a felony since it occurred in a disaster area). Furthermore, two arrestees did not have workers' compensation insurance, a misdemeanor. Suspects arrested were:

• Steve Killion, 47, Marysville, CA, co-owner of Rossier Home Restoration
• Kurt Edward Kimm, 40, Placerville, CA, owner of Kurt Kim Trucking and Equipment
Troy Meadows, 37, Gardnerville, NV, co-owner of B&T Services
• Chase Rossier, 27, Yuba City, CA, co-owner of Rossier Home Restoration
• William Tanner, 33, Gardnerville, NV, co-owner of B&T Services

In recent days, investigators have also been providing residents of the disaster area with tips on spotting and reporting unlicensed and/or uninsured contractors and public adjusters. Furthermore, the investigators have been sweeping the disaster area to verify the license and insurance status of persons identifying themselves as public adjusters or contractors.

My moral for you: do not do business with anyone, sign any contracts, or enter in to any agreements with a contractor or independent adjuster until you have checked them out with the Department of Insurance or Contractors State License Board.

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Higher Auto Insurance Rates?

2007-07-22T15:13:00.000+07:00

Based on a recent California Supreme Court refusal to hear a case, higher rates may be coming. The Auto Club charges fees to insureds for paying in installments. There is a debate over whether these fees are premium or added fees

The moral of the story: when you are going to pay your insurance in payments, ask about any fees. Not all carriers charge these fees.

Low Cost Auto Insurance Program To Expand

2007-07-22T15:10:00.000+07:00

From the Department of Insurance, some good news.

Insurance Commissioner Steve Poizner to Expand Low Cost Automobile Insurance Program to Nine Additional Counties

Commissioner Poizner announced his final determination of need for the program in: Solano, Marin, Santa Cruz, Madera, Napa, Yolo, Mendocino, Kings and Lake Counties

SACRAMENTO - Insurance Commissioner Steve Poizner today announced his final determination of need for the California Low Cost Automobile Insurance program in Solano, Marin, Santa Cruz, Madera, Napa, Yolo, Mendocino, Kings and Lake Counties. The program is expected to go into effect in early September, once rates are set in each of the newly added counties.

Commissioner Poizner's announcement follows a series of community town hall meetings in each of the nine counties to examine the need for the program. Based on those meetings and a determination of need analysis conducted by the California Department of Insurance (CDI), the Commissioner determined that the program should be expanded to include these nine additional counties.

"Driving without insurance is illegal, and nearly 100,000 motorists in these nine counties are uninsured," said Commissioner Poizner. "Many drivers simply cannot afford insurance, but uninsured drivers put all travelers at risk. The expansion of this program in nine additional counties will better enable Californians to comply with the law and protect all motorists from potential losses."

Motorists driving without insurance can have their vehicle registrations suspended as part of SB 1500, a new law designed to reduce the risk of economic losses sustained as the result of collisions involving uninsured motorists

The low cost auto insurance program provides eligible low-income good drivers with auto liability coverage for under $400 a year and as little as under $300 a year in many counties.

The California Low Cost Automobile Insurance Program initially begun in 1999 as a pilot program in Los Angeles and San Francisco. A new law, SB 20, also authorized the Commissioner to launch the program throughout the state upon his determination of need in each county. Beginning in April 2006, the department began expanding the program statewide. The program is now available in Los Angeles, San Francisco, Alameda, Fresno, Orange, Riverside, San Bernardino, San Diego, Contra Costa, Imperial, Kern, Sacramento, San Joaquin, San Mateo, Santa Clara, Stanislaus, Merced, Monterey, Santa Barbara, Sonoma, Tulare, and Ventura Counties. With the inclusion of Solano, Marin, Santa Cruz, Madera, Napa, Yolo, Mendocino, Kings and Lake Counties, the Low Cost Auto Insurance Program will be available in 31 California counties.

Since its inception, over 33,000 policies have been issued. Program policies are issued by California licensed insurers and the program is administered by the California Automobile Assigned Risk Plan. Rates are set in each county so that premiums are sufficient to cover losses and expenses in each county to ensure the program is self-sustaining.

To be eligible for the program, an applicant must be a "good driver" - no more than one at-fault property damage only accident, or one point for a moving violation in the past three years; and no at-fault accident involving bodily injury or death in the past three years; and no felony or misdemeanor conviction for a violation of the Vehicle Code.

Additionally, family income cannot exceed 250 percent of the federal poverty level ($25,525 for a single person, $34,225 for two persons and $51,625 for a family of four). The value of an insured vehicle must not exceed $20,000. For more information about the program, call 1-866-60-AUTO-1 (1-866-602-8861)

Now, my caveat: if you can afford a different policy, get it. This policy does not provide a lot of protection for you, but it is better than not having insurance at all!

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What is a third party claim?

2007-07-22T15:09:00.000+07:00

There seems to be confusion about what constitutes a third party claim. For example, if your vehicle is struck by someone else and you have damage to your car, a rental expense, an injury, wage loss, and medical bills, which of those is a claim?

The answer is to break it down by type of damage. Okay, so how do you do that? Fortunately, you do not have to do that. The other person's insurance company will do it for you, if the other person was at fault. But, let me explain what they consider a claim. (It is different with your own insurance, but we will discuss that another time.)

Property damage: this includes damage to your car and any rental expense incurred

Bodily injury: this includes the wage loss, medical expenses and "pain and suffering." These are not three separate claims, but rather one claim. Each person has their own claim. So, if you and Junior are involved in a collision, you have a bodily injury claim and your child has a separate bodily injury claim.

I hope this helps answer this question

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Your Social Security Number

2007-07-22T15:08:00.001+07:00

Have you ever wondered why the insurance company wants your social security number? It is not because they need to verify your ability to work in this country!

They need it, well, they want it because they want to track you. Think George Orwell's "1984." The insurance companies have databases with information on everyone who files a claim. The problem, however, is that there are a lot of people named "Jonathan Stein." Heck, there are a lot of attorneys named Jonathan Stein and a lot in California, even!

So, how do they know if it is me, the guy in the next city or the guy in San Diego? Easy. They use your social security number to track it. This is why it is imperative that you do NOT give them your social security number. They don't need it. They just want to be able to track you.

Reimbursement of your health insurer

2007-07-22T15:05:00.000+07:00

Thankfully, we do not live in Texas. The Texas Supreme Court recently ruled that when a plaintiff sues a defendant, the plaintiff's health insurer gets reimbursed before the plaintiff. So, you pay those health insurance premiums in Texas, you use your benefits after a car crash, you sue for medical bills and "pain and suffering" and most of the money is going back to your health insurer, who you already paid for the coverage in the first place.

Thankfully, in California, the courts enforce the "make whole" doctrine. This basically says you have to be made whole before you have to pay back your health insurer. There is still some dispute about it, but you are much better off in California right now than you are in Texas. The Supreme Court there is doing a number on plaintiffs.

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Archive for July 2007

2007-07-06T13:35:00.000+07:00

Insurance Blog

Insurance Blog Information on Tatal Insurance and Insurance News

Should Lawyers Buy Malpractice Insurance?
(July 3rd , 2007 by palado)

As insurance agents we are all required carry insurance agents E&O (professional liability insurance) by industry practice. Should those attorneys who choose not to carry attorneys’ malpractice (E&O or professional liability) insurance have to disclose this to their clients?
This question is the subject of intense debate right now in California. The State Bar of California has proposed a rule that would require attorneys to disclose to their ..[]

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Federal Surplus Lines Bill
(July 6rd , 2007 by palado)

The new surplus lines bill, which was just passed in the US House, provides for simplified and consistent surplus lines placements for insurance agents around the country (see here & here). A companion Senate bill has been introduced and is awaiting action. A similar house version was passed last year 417-0.The bill works by defining national ..[]

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Hurricane Regulation
(July 6rd , 2007 by palado)

The success or failure of the regulatory approaches utilized in Florida and Louisiana to ease the insurance crisis is critically important to the insurance industry, particularly insurance agents who bear the brunt of communicating the resulting market conditions to clients. We have followed the ..[]

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Duty to Notify Insurer of Changes
(July 6rd , 2007 by palado)

Insurance agents may wonder whether an insured has a duty to notify an insurer of material changes in exposure other than through the normal application process. According to a recent appeals court decision (see here & here) an insured does not.The case involved a commercial
...[]

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Federal Surplus Lines Bill

2007-07-03T13:35:00.003+07:00

The new surplus lines bill, which was just passed in the US House, provides for simplified and consistent surplus lines placements for insurance agents around the country (see here & here). A companion Senate bill has been introduced and is awaiting action.

A similar house version was passed last year 417-0.
The bill works by defining national standards for how the surplus lines market is regulated by the states, and includes a uniform method for allocating and remitting surplus lines tax.

The one-state compliance for multi-state risks provision is an important aspect of the bill.
While many states have streamlined the surplus lines process, some have not. And inconsistencies between states’ surplus lines requirements can make it difficult for surplus lines brokers and insurance agents to effectively comply with state requirements.

This bill will be a welcome relief to most insurance practitioners.

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Hurricane Regulation

2007-07-03T13:35:00.002+07:00

The success or failure of the regulatory approaches utilized in Florida and Louisiana to ease the insurance crisis is critically important to the insurance industry, particularly insurance agents who bear the brunt of communicating the resulting market conditions to clients.

We have followed the varying situations in each of these key states with interest, and have noted that each state has taken quite a different path.

Last week we noted the shift of hurricane exposure to quasi-governmental entities (see here), and in February of this year noted that Louisiana had taken a different approach by encouraging the private market to provide the solution (see here).

An article today in the Shreveport Times (see here) provides a summary and update on the differences. Florida has taken an aggressive regulatory approach, resulting in the State assuming a substantial part of the catastrophic hurricane exposure.

Louisiana has attempted to support the private market and decrease the government’s role.
It is too early to determine which approach is the better one.

And the better one is not necessarily the approach that reduces short term insurance costs. Florida’s approach appears to have produced some price reductions already, or at least reduced increases, but the State has assumed enormous risk in the process and has shifted some of the burden to insureds with little or no hurricane exposure.

It is not clear whether Louisiana’s approach is having much impact yet, but the appearance of a positive approach is not driving away masses of insurers.

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Duty to Notify Insurer of Changes

2007-07-03T13:35:00.001+07:00

Insurance agents may wonder whether an insured has a duty to notify an insurer of material changes in exposure other than through the normal application process.

According to a recent appeals court decision (see here & here) an insured does not.

The case involved a commercial auto policy which was renewed for 9 years with no renewal application requested or provided.

During this time the insured owner stopped conducting his business through the company and conducted the business personally.

He never notified the insurer, and said the agent never passed along any requests for information from the insurer.

An insured was involved in an accident in 2003, and the insurer sought to void coverage due to the failure to provide material information.

In this particular situation the court, on appeal, concluded that the insured does not have a duty to notify an insurer if not asked.

[U]nless a provision in the insurance policy or a renewal application requires the insured to notify the insurer of particular changes, the insured is under no duty to identify changes that are material and notify the insurer of such changes

This may explain the numerous questions and representations required on a professional liability application. And might the insurer try to hang this on the agent?

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Should Lawyers Buy Malpractice Insurance?

2007-07-03T13:35:00.000+07:00

As insurance agents we are all required carry insurance agents E&O (professional liability insurance) by industry practice.

Should those attorneys who choose not to carry attorneys’ malpractice (E&O or professional liability) insurance have to disclose this to their clients?

This question is the subject of intense debate right now in California. The State Bar of California has proposed a rule that would require attorneys to disclose to their clients when they do not have malpractice or professional liability insurance (see here).

Supporters claim that such disclosure would provide an incentive for all attorneys to maintain such insurance, and would protect clients. Critics, small law firms and sole practitioners, complain that the cost is prohibitive (see here & here).

Oregon is the only state requiring lawyers to maintain coverage, and a number of other states require disclosure when coverage is not purchased. The State Bar notes that 1 in 5 firms are not covered by professional liability coverage.

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Archive for June 2007

2007-06-30T13:55:00.000+07:00

Insurance Blog

Information on Tatal Insurance and Insurance News

Princeton University Awaits Ruling In Legal Fees Case With Insurance Giant AIG

(June 30th, 2007 by Andrew Smyth)

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10 Tips For Driving On 4th Of July From Insurance.com

(June 30th, 2007 by Andrew Smyth)

The New York based consulting firm Accenture released findings from a global study involving “104 North American and European property and casualty executives” according to National Underwriter. The study says, “property-casualty insurers are failing to use technology and alternative sourcing to improve their claims function, reduce their loss ratio and ...[]

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Study Shows Insurers Improving Their Online Dealings With Customers

(June 30th, 2007 by Andrew Smyth)

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My Cholesterol Level Affected My Term Life Insurance Premium

(June 28th, 2007 by inszo)

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Using Term Life Insurance To Ensure College Is Covered

(June 28th, 2007 by palado)

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Homerweb Search

10 Tips For Driving On 4th Of July From Insurance.com

2007-06-30T12:18:00.002+07:00

Know More: Insurance News accenture insurance study, insurance technology, property casualty insurance

The New York based consulting firm Accenture released findings from a global study involving “104 North American and European property and casualty executives” according to National Underwriter. The study says, “property-casualty insurers are failing to use technology and alternative sourcing to improve their claims function, reduce their loss ratio and enhance customer satisfaction.”

It boggles the mind as to why so many insurers would not fully utilize technology to improve their overall operations. According to Accenture “the lack of technology integration and persistence of manual processing results in claim files that are incomplete and difficult for employees to share and access during processing, reducing settlement speeds, increasing error rates, undercutting service quality and driving up costs.”

Sounds like some P&C insurers need to get their act together so business can be conducted in a more efficient manner. One of the more surprising results of the survey is that “Less than one-fifth (17 percent) employ advanced fraud-detection systems, such as data-mining tools that calculate fraud probabilities.” Maybe that’s why so many people commit insurance fraud.

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Free Listing

Princeton University Awaits Ruling In Legal Fees Case With Insurance Giant AIG

2007-06-30T12:18:00.001+07:00

One of the most prestigious universities in the world and the largest insurer in the world are nearing the end of a heated legal battle concerning insurance for legal fees. Princeton University took American International Group (AIG) to court back over “how much American International Group must pay the school to cover legal fees from a protracted legal battle over an endowment” according to National Underwriter.

As I’m sure you’re aware AIG is the behemoth provider of life, health, travel, auto insurance and many more financial services. Princeton is suing AIG’s subsidiary National Union Fire Insurance Company because they refused to “pay no more than $5 million to cover defense costs” even though “the university has a $15 million policy.”

The legal fees stem from “litigation with family members of the Robertson Foundation.”

“According to court documents, the family of Charles and Marie Robertson, who established the endowment, accused Princeton of improper expenditures—allegedly spending money from the trust for purposes other than supporting the graduate program of the Woodrow Wilson School of Public and International Affairs.

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Study Shows Insurers Improving Their Online Dealings With Customers

2007-06-30T12:18:00.000+07:00

It’s good news that many insurers have steadily improved their interactions with customers online. According to an article in National Underwriter Customer Respect Group, a Massachusetts consulting firm, said that a study that “evaluated the Web sites of a representative sample of auto insurance companies and found the sector made progress in a number of areas.

”The most improved areas for insurers were “privacy policy transparency and responsiveness to e-mails” where “auto insurers now provide better and more concise information about policies and practices.”

The two insurers in front in the categories “for clarity and openness were Allstate and Nationwide” while “best policies for customers were from Liberty Mutual and AIG Direct.”The top five companies in the study were first Geico then Progressive Casualty, Liberty Mutual, Farmers and American Family.

Compared to the last quarter results of this ongoing study the overall score of the insurers had risen to 5.4 out of 10 compared to last quarter's average score that put them in “the bottom quartile.”

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My Cholesterol Level Affected My Term Life Insurance Premium

2007-06-28T16:03:00.004+07:00

First off let me just say that there is nothing better than a big juicy hamburger, a couple fries, or a thick slice of pepperoni pizza on an empty stomach on any given day that just makes you feel, well fat and happy. In fact I used to eat all of those on a regular basis in high school before a big football game, you know to “carb up” so that I can perform my best. Back in those days I don’t think any of us really cared what we ate, our priorities in life most likely consisted of dating, Friday nights, and loud music. Good times…

The only problem is, I’m not 18 anymore, and my priorities have changed, to family, work, mortgage, gas prices, and sleep. In that order. And thanks to my great eating habits from my adolescents, I have this wonderful thing called “cholesterol” and “blood pressure,” which I’m now supposed to watch. Nah, not this guy, as long as you can fit into your elastic high school gym shorts you’re fine right? I wish! I learned this the hard way when I started to think about Life Insurance, and the needs of my family’s financial security if anything was ever to happen to me (like a clogged artery). So I decided to find out more.

I ended up going to https://secure1.insweb.com/cgi-bin/termlife.exe?id=pQOMDUIhQw3ya22sAXCTVKl-QOq and finding a rate for Life Insurance. After my agent scheduled me for a medical evaluation, I discovered (much to my dismay) that my cholesterol was high. OK it was really high, which attributed to a higher premium than someone with normal cholesterol levels. But hey, the cholesterol levels of approximately a quarter of the adult population in this country are higher than normal according to the InsWeb article “How Improved Health Affects Your Life Insurance Rates”. In fact there were a lot of key factors I didn’t know about that effects how much money comes out of my wallet due to certain health factors, and what I could do to get a better rate. Once I knew what I was up against, I was determined to lower my cholesterol and my blood pressure. With 3 months of hard work I lost 20 pounds and significantly lowered my cholesterol and blood pressure. Here are some tips for lowering your cholesterol, your blood pressure, your weight and your Life Insurance premium that worked for me.

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Using Term Life Insurance To Ensure College Is Covered

2007-06-28T16:03:00.003+07:00

With all the popularity of 529 Plans and other methods of saving for your children’s educational future, one great way of ensuring that all of college is paid for in the event of anything happening to you is often overlooked. That method is term life insurance. It’s quick, easy and usually very inexpensive to take out a policy on yourself with a term length that ensures that your children will have all of their college expenses taken care of; including things 529 Plans just can’t cover. Or even better, obtain both a 529 Plan and adequate term life insurance coverage.

What Is A 529 Plan?A 529 college savings plan is an investment account that allows you to set aside money for your child's college education and let it grow tax-free. The federal government won't tax your money when you take it out of the account as long as it's used for higher education.

You can use the money in a 529 plan at any accredited college or university in the U.S. (public or private, graduate or undergraduate). The money can be used for tuition/fees, room/board, books, and supplies/equipment.

How Can Term Life Insurance Cover Educational Costs?One of the many benefits of term life insurance is choice; you can choose the term length and coverage amount and tailor them to benefit you and your dependents. For example, many people may choose a 30-year term length to cover the mortgage on their home. Similarly, a 30-year term purchased soon after your child’s birth can ensure that your children are covered through their college years in case anything happened to you. And a benefit of term life insurance over something like a 529 savings account is that your beneficiaries can choose how they want to spend the money (as opposed to a 529 which must only be spent on things education-related). This way, if anything were to happen to you, your child could cover both education and personal costs, or use the money for something else. Or, if you passed away before the child was an adult, the money could be used to help raise the child up to (and hopefully through, depending on your coverage amount) his or her college years.

Remember to adjust your coverage and beneficiary designations each time something major occurs in your life, such as the birth of a child.

Insure your children’s future with term life insurance; find out how low your rates can be today!
InsWeb Life Insurance Learning Center: http://www.insweb.com/learningcenter/life-default.htm

SEC's Introduction to 529 Plans: http://www.sec.gov/investor/pubs/intro529.htm

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Environment minister plans two-storey garage

2007-06-28T16:03:00.002+07:00

Laurel Broten faces heat from neighbours

Canadian PressTORONTO - Ontario’s environment minister is under attack from neighbours over plans to build a two-storey garage.

A complaint was filed with the Ontario Municipal Board arguing the garage would dwarf neighbouring properties and could damage a large tree.

But Laurel Broten says the plans call for the garage to be built without harming that tree.
Broten says her family has four cars - a hybrid, a fuel-efficient SUV and two sports cars belonging to her husband.

Opposition critics say Broten has a right to own those cars and the big garage, but might have a problem explaining her plans to voters.

New Democrat critic Peter Tabuns says he takes bigger issue with Broten’s inaction on several environmental issues, like failing to protect local water sources.

“There’s all kinds of things that this minister has let go through that are monumental and huge and so if she has four cars ... that’s small potatoes in a larger picture of dereliction of duty,” he said.

Conservative critic Tim Hudak says Broten and Premier Dalton McGuinty are guilty of promoting green causes but not following through themselves.

“Here’s a guy who’s preaching about conserving energy and he takes short-flight hops from Toronto to Hamilton, Toronto to Niagara, Toronto to Peterborough, and you can’t blame Laurel Broten, she’s just following Dalton McGuinty’s example,” Hudak said.

“It’s awfully hard to stand on a soapbox and lecture people when you have a ... two-storey garage looming over you.”

The OMB is scheduled to hear the case next week.

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When will Anglo Racist Tories listen to Aboriginal Peoples?

2007-06-28T16:03:00.001+07:00

OTTAWA - The minority Conservative government must listen to the people who will be most affected by a bill addressing the human rights of Aboriginal peoples before rushing it through Parliament, Liberal Indian Affairs Critic Anita Neville said today.

"We support the intent of this bill," said Ms. Neville. "What we object to is the government's determination to see it passed without consulting the people it will most affect."

The Liberal Opposition, along with the members of the other Opposition parties, today voted in a meeting of the Aboriginal and Northern Affairs Standing Committee of the House of Commons to suspend debate on Bill C-44 for a maximum of 10 months in order to allow time for proper consultation with First Nations.

The bill, which was introduced in December 2006, seeks to repeal a section of the Canadian Human Rights Act which prevents First Nations people from lodging complaints of discrimination against the federal and First Nations governments in relation to acts and decisions authorized by the Indian Act.

Some of the central concerns of the Opposition include the lack of consultation with First Nations prior to the introduction of the bill; the possible effects of the bill on the longstanding treaty rights of first nations; the short transition period the bill allows; the balance between collective and individual human rights; and, the possible need for additional resources for First Nations to respond to their new responsibilities as result of the bill.

"Since the standing committee first started hearing testimony on this bill we have heard time and again that it must be changed if the interests of First Nations are to be served," Ms. Neville said. "The Canadian Human Right Commission, the Canadian Bar Association, the Assembly of First Nations, the Native Women's Association of Canada - have called for changes to this bill. Many other witnesses testified in favour of reforms. Why can't the Conservatives listen?"

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Tiger Airways Comes To Australia (More Low Air Fares For Backpackers)

2007-06-28T16:03:00.000+07:00

Good news for backpackers travelling around Australia and New Zealand in the near future: Australian low-fare airlines Jetstar and Virgin Blue are about to get some extra competition.
Tiger Airways is coming to Australia in December:
The Singapore Airlines-backed Tiger Airways said Wednesday it would start flights from Melbourne to Darwin from December, with fares starting at $79.99 one way. (The Age)
The more competition there is, the lower the fares are likely to be – something penny-pinching backpackers always like to hear.

What Virgin Blue has, though, that the others don’t appear to have catered for (as yet), is ‘carbon offset’ a recent initiative aimed at reducing the greenhouse gas emissions caused by your flight.
So, for a small fee (it differs for each flight), you can experience that warm fluffy feeling one gets from doing something good for the environment.
You do get that feeling, right? Right?

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4 Ways Most People Overpay for Car Insurance

2007-06-24T15:04:00.002+07:00

Tax-Time: you’re either waiting for your gravy train tax refund, or you’re fearing the event of paying even more to Uncle Sam. Car insurance can take on a similar dichotomy, but the difference is that you don’t get a refund for overpaying for coverage — it just renews and overcharges you until you find a more affordable policy. Most people don’t see this, and miss out on hundreds of dollars in savings that could be used like a big fat tax refund.
Auto Insurance Quotes are Not Final: How to Make Them Lower
When you shop and compare multiple auto insurance quotes, recognize that even if the quotes are about the same as your current policy, or lower for that matter, they can still be even lower. There may be too much coverage, or extra options tucked into the quote that you really don’t need.

Although higher limits provide you with greater protection against possible losses, you may be carrying limits that are not in line with the value of your total assets and your lifestyle. As you review your quote, consult with an insurance agent before making any final coverage decisions. Additionally, you may be a member of an auto club that provides towing and labor protection, therefore, paying for it in your auto policy could be unnecessary. The same may hold true for car rental coverage: do you really need it?

Trying to Make “Accidents” More Affordable
Many drivers make the mistake of carrying the lowest deductibles in order to help offset the costs associated with filing a claim. The fact remains, the higher your deductible, the lower your premium. Indeed the cost of an accident will be that much more expensive; however, if the damage is minor, you could be spending the same out-of-pocket amount regardless. Save on your policy, not the accident; raise your deductibles if you can afford to.

Paying for the Policy in Monthly Installments
Just like any bill, it is common to pay for insurance in monthly installments, either by check or automatic bank withdrawal. Be aware that additional administrative fees are commonly applied to payments when you split your premium into installments (i.e. monthly, semi-annual, annual). A monthly fee of even $7 can add up to $84 over 12 months.

Overpaying for Tickets and Moving Violations
Perhaps you deserve a higher rate for your driving record, but don’t let the insurance company unduly punish you. Although having moving violations on your driving record can limit your selection of insurance companies, don't believe that finding affordable car insurance is as intimidating as appearing in traffic court and paying fines. To the contrary, there are companies that specialize in insuring higher risk drivers at reasonable prices. The only way to identify such companies though, is to compare multiple quotes from multiple companies.

Don’t count on your tax refund to save money! Instead, you may be able to save hundreds by simply taking 10 minutes to analyze your auto insurance policy. Even if last year seemed uneventful, the chances are good that your individual circumstances have changed enough to qualify you for lower car insurance rates. And even if nothing changed on your end, many large insurance companies may have reduced their rates since you last shopped.

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Spring Home Improvements: Adjusting Your Homeowners Insurance Accordingly

2007-06-24T15:04:00.001+07:00

With the first warm days of the year upon us, spring always brings a renewed motivation for making improvements to one’s home. Whether you’re a “Hardware Store Warrior” building a new deck yourself, or if you’re simply hiring a contractor to add a patio, don’t forget to check what impact such improvements may have on your homeowners insurance policy — before you begin!
Home improvements can quickly add to a home’s value. Accordingly, you should do a quick comparison of the difference in homeowners insurance quotes with the improvements. It is not until a disaster strikes that many homeowners realize they haven’t reevaluated their coverage to include any improvements made to the house.

After undergoing the tragedy of losing your home, you don’t want to also find out that your insurance policy covers only the pre-improvement value of your home. The difference in replacement value can be very significant. Trusted Choice® reports that nearly 40% of homeowners who make improvements to their homes do not update their homeowners policies to reflect these changes.

As the value of your home increases, you may experience a modest increase in your homeowners insurance as a result. There are many discounts available to you that may help offset any such increase. Have you added any new security devices to your home in the last year; perhaps deadbolt locks, window locks, a burglar alarm, or even smoke detectors? Insurance companies highly value the protection afforded by these types of safety devices and are known to reduce premiums by as much as 20% as a result. In the same fashion, you may also experience additional savings on your policy if you upgrade your home’s heating, plumbing, or electrical systems.

There are additional benefits to comparing homeowners quotes before any renovation. If you adjust your policy before the work even begins, you may be covered for any building materials you have in your house during the course of the project. With the increased heavy duty labor, you may be exposed to an increased level of liability and risk of home disasters. Incidentally, it’s a good idea to take “before, during, and after” pictures throughout the renovation. In the event of a claim, you may be required to provide justifiable proof. Likewise, it is also imperative that you make sure any contractors are properly licensed and insured with all corresponding documentation.

Beyond the home improvements at hand, comparing multiple homeowners quotes is an exercise that can uncover new discounts and savings. You should review your homeowners insurance policy at least every 12 months, or more often if your needs change. Significant discounts and savings may have become available since your last policy review. Even if nothing changed on your end, many insurance companies may have reduced homeowners insurance rates since your last review.

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Don’t use life insurance to pay estate taxes?

2007-06-23T13:39:00.000+07:00

Now there’s an interesting statement coming from an author of a blog on life insurance!

It was just to catch attention but there is an interesting alternative method. Instead of using the life insurance to pay the estate taxes. Have the life insurance go to the children (estate tax free if set up properly by an attorney in in an ILIT - Irrevocable Life Insurance Trust), then have the balance of the estate placed in a Charitable Lead Trust. A Charitable Lead Trust (CLT) is a unique instrument where the interest on the principal is used by the charity for a number of years. At the end of those years, the principal (in this case one’s estate) goes to the children estate and income tax free. If the charity chosen was a family foundation, then the children can direct funds to help social, health, community and/or religious programs.

Thus you create three “inheritances”: 1. At death through ife insurance 2. At the end of 15 to 20 years where the original amount (plus any earnings in excess of the federal rate) go to the heirs estate and income tax free and 3. An inheritance to help society that can be directed by the children through a foundation. In this solution, no estate taxes are paid. One has, in a way, redirected taxes towards one’s favorite charitable causes. You’ve been able to “dial in” a tax free benefit at death, delay a second inheritance which would have been likely planning anyway (and make it tax fee as well) and help your children contribute to society through your legacy.

Compare this to the most common solution (which is still better than no solution). Life insurance is purchased through an ILIT as an estimate of estate taxes. At death, the trust with the insurance proceeds, buys assets from the estate equal to the estate taxes and the estate pays the taxes.

Why not have it all using the “three inheritance” solution. The experts at lifeinsure.com can discuss these alternatives with you in concert with your legal and financial professionals.

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Car Insurance rates and Colorado tort law

2007-06-21T14:17:00.000+07:00

Reader question:
I heard that something would change with car insurance rates because of new tort law in Colorado. What’s going on, then? Is it good or bad?
Cheyenne
For consumers, it’s looking pretty good.
Colorado’s new insurance law is reaching four years old and it looks like the customers are the ones coming out on top, this time. Since the change in law, in 2003, insurance rates has dropped as much as 30% for citizens of Colorado who patronize the larger insurance companies. On Monday, the ninth rate decrease was announced by the state, a whopping 7.2%, which most states don’t see in a year. That adds to the rest of the decreases to make up a total of 42% in decreases in the four year period.
Formerly, Colorado had a no-fault system, which meant that car insurance companies paid the medical bills in a crash without regards as to who was at fault. The new law, called a tort law, makes the driver who was at fault responsible for such bills.
Before the law changed, injury coverage alone had gone up 80%, and premiums and general about 30%, in a short period of 18 months. It’s amazing to see that these rises have folded back on themselves with the change in law.
With all those double-digit increases, something had to be done. After the change in the system, Colorado’s insurance rates have stabilized to fit with national rates, which in the same time period had changed less than 1%.
Cheers,

Fashun Guadarrama.

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Auto Insurance Rates Decline As Tort Law Reaches Four Years

2007-06-21T14:03:00.000+07:00

Insurance rates have dropped by an average of 30 percent in the past four years among the larger insurers in the state, an insurance official estimates.

Consumers are coming out on top under Colorado's new insurance law.

On Monday, State Farm Insurance officials announced the company's ninth rate decrease -- 7.2 percent -- since the new system became law in 2003.

That marks roughly a 43 percent total decrease in premiums in the past four years.In addition, State Farm officials announced $19 million premium refunds to their insured, equating to about $23 savings per car -- savings derived from fewer claims.

"We've seen across-the-board rate decreases since 2003, and many of the large insurers are seeing the double-digit decreases," said Carole Walker, executive director of the Rocky Mountain Insurance Information Association.

"Frankly, I've been surprised we've continued to see them come down this much. It shows a stabilization in the marketplace."Under the former no-fault system, auto insurance companies paid medical bills in crashes regardless of fault, which resulted in system abuses. The new system, called a "tort" system, makes the at-fault driver responsible for payment."We were paying through the roof for all those no-fault claims," said May Martinez Hendershot, spokeswoman for State Farm in Greeley.

"We are now able to translate the favorable claim experiences to lower premiums.

It just shows the market we are doing exactly what we said we were going to do.

We told voters in 2003 that rates would decline and they are."Prior to the law change, personal injury protection coverage had gone up 80 percent in 18 months and overall rates were rising by 25 percent to 30 percent, Walker said."In 30 years in Colorado, the no-fault system was just too expensive," Walker said. "In 2003, we were in a cost crisis. Instead of seeing double-digit decreases, we were seeing double-digit increases.

"Walker said the decreases have helped stabilize Colorado premiums to be more in line with national rates, which have decreased not quite 1 percent.

"They're coming down a little bit (nationally), but this sort of dramatic decrease of rates, adding up to more than 40 percent in four years, is something I haven't seen in the marketplace before," Walker said. "We likely won't see as dramatic rate decreases" in the future.

Walker said in surveys of the Top 5 Colorado insurers -- State Farm, Farmers, American Family, All-State and Progressive -- rates have come down an average of 30 percent since 2003, when the tort system was enacted.

The law's fourth anniversary is July 1.Rate decreaseState Farm's most recent rate decrease will be effective July 16 and be applied to premiums when customers renew their rates. Dividend payments began in April and will continue throughout the year, as customers renew their policies.By Sharon Dunn, Greeley Tribune

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Travelsafe for Safer Holiday Accommodation

2007-06-17T20:55:00.000+07:00

We all take out travel insurance to cover unexpected events which might affect our plans or to cover our personal property. However, we cannot always be sure of the safety of the accommodation we are booked into abroad. Who can forget the tragic news reports about the deaths of the two children from carbon monoxide poisoning in Corfu last summer. That awful event highlighted the need for safety checks of accommodations to protect holidaymakers abroad.

We saw a report that some of the top accommodation booking companies, including OnHoliday Group/Jet2holidays and Lowcostbeds are signing up to a new scheme aimed to monitor the safety of holiday accommodation. The Travelsafe health and safety accreditation system will blacklist any hotels, villas or apartments if they don’t pass the new safety standard tests. Under the new system, it will mean the properties they list as safe have been checked via a self-audit or full audit in various health and safety areas such as fire, swimming pool, food hygiene and child safety. Hotels will be rated accordingly and the information made available to travel agents and tour operators. Hoteliers can do a self-assessment, or a full audit may be carried out with resulting ratings of Gold, Silver, Bronze or Non-Compliant.

Any hotels that are found to be unsafe for any reason will be given the chance to make changes and if they still fail to do so they will be blacklisted from Travelsafe member sites. The system cannot guarantee there will never be any problems at all, but the standard it sets should help to avoid any more tragedies like Corfu.

It could also mean changes for those who own and rent out their overseas properties. If the rental is managed through a major UK tour operator or advertised on a holiday letting website and they are members of Travelsafe then the property will have to undergo the health and safety checks prior to being offered for letting. This seems like a good start. Website: www.travelsafe.biz.

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What You Need To Know About Travel Insurance

2007-06-17T20:53:00.000+07:00

Are you going on a trip but don't really know if travel insurance is necessary? You can make an informed decision simply by conducting a quick needs analysis.

Ask yourself:
- What is the cost of your trip?
- How long are you going for?
- Where are you going?
- What elements of your trip would you like insurance to cover?
- What time of year will you be traveling?

The answers to these questions will help pave the way for establishing not only if travel insurance is a prudent option, but more specifically, what type of travel insurance you should consider.

For example, you are taking your family on a week-long Caribbean Cruise that you have invested $5,000 in. If your children become ill prior to your departure, would you be concerned about the $5,000 investment being lost? If your answer is yes, then you need to consider a Trip Cancellation Package Policy. These policies cover the loss of your trip investment for a covered reason prior to departure, as well as a host of other types of coverage.

To simplify matters, there are four primary types of travel insurance to keep in mind:

1. Trip Cancellation Package Policies which not only cover the trip investment but also other coverages like trip interruption, baggage, medical and emergency evacuation.

2. Travel Medical Policies which cover travel medical and emergency evacuation.

3. Medical Emergency Evacuation Policies which provide emergency evacuation protection.

4. Flight Accident Policies which provide life insurance while you are flying.

Armed with the knowledge and understanding of the various types of travel insurance protection available, as well as your personal travel details and specific coverage needs, you can successfully navigate the myriad of travel insurance products to get the best policy for wherever your journeys take you.

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Airline and Other Travel News

2007-06-17T20:51:00.000+07:00

If you intend to see a lot of the U.S. during your trip you might be wondering which airline to use to hop between States. A new airline called Skybus is now operating with budget domestic flights. These flights will only interest you if you don’t mind flying into airports outside the major ones, such as Burbank instead of LAX (Los Angeles) and Bellingham instead of Seattle’s Seattle-Tacoma International (aka Sea-Tac). Skybus has budget fares but charges for just about everything else. www.skybus.com.

Virgin Atlantic has started flying from Heathrow to Chicago (www.virgin-atlantic.com)
Easyjet is now flying from Bristol to Milan’s Milpensa (www.easyjet.com)
Flybe has started flights from Southampton to Frankfurt (www.flybe.com)
Flyglobespan is now offering budget flights from several UK airports to destinations in Canada (www.flyglobespan.com)
MAXjet, the business-class airline will fly from Stansted to Los Angeles from August 30th (www.maxjet.com)
Claustrophobic travellers won’t be taking up the offer of Indian airline Jet Airways for a private cabin on flights from Heathrow to Mumbai. First class passengers can book a private ‘suite’ with its own flat bed, flatscreen TV, wardrobe and sliding door. At 3’ x 8’ (26 sq. ft) this sounds more like a flying coffin than a suite. It’s okay if you’re sure you can sleep or watch TV for the entire trip, but I think I’d prefer some human company and gratefully sit in the screaming baby section. It’s also not for the budget traveller as fares are over £4,400 round trip! (www.jetairways.com)

We thought this tip was worth passing along… In many Caribbean Islands, including Barbados, Grenada, Antigua and St. Lucia it is an offence to wear camouflage clothing. We saw a report of a traveller having an item of camouflage clothing confiscated in Antigua. As this type of clothing is currently very fashionable we’d advise you to do a double check of the items your children are planning to wear and unpack any of these items pronto or face losing them!

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Star Wars Exhibitions in London and Los Angeles

2007-06-17T20:49:00.000+07:00

Sci-Fi fans out there are no doubt very excited about the Star Wars Exhibition being held in London this month and continuing through September. The event is a European celebration for the 30th anniversary of the Star Wars phenomenon. The touring exhibit will give fans a chance to see some of the costumes and vehicles used in the films as well as original film props, costumes and art. The displays include a life-size Naboo N-1 Starfighter and Luke Skywalker’s landspeeder hovercraft. If you always fancied yourself as a Jedi a taste of the training will be available with a Jedi knight, using a green screen and light sabres to put you into the action. There are rumours that bad guy Darth Vader might put in an appearance. The exhibition is on now at County Hall, Westminster (close to the London Eye). For more information visit: www.Starwarstheexhibition.com.

To top off the Star Wars celebrations in London, a ‘Star Wars Celebration Europe’ party will be held at the ExCel London exhibition centre from 13-15 July. It will include celebrities from all six films, exhibits, merchandise, and much more. For information visit: www.celebrationeurope.com.

Star Wars events have been held throughout the U.S. on a regular basis over the years. However, as four of the six films were actually shot in the UK it makes London the perfect place for this first major European Star Wars event. If you’ll be in Los Angeles during May a Star Wars Celebration IV event is planned at the Los Angeles Convention Centre from May 24 through May 28. For information visit: www.gencon.com/2007/swciv.

According to reports from Star City, Russia, cosmonauts would rather stay in space than return to Earth if they had the choice. The problem is that being mere humans they suffer from muscle wasting after any length of time at zero-gravity. Despite daily workouts on the space station they have to re-learn how to walk upon return to Earth. Space tourism is readily available to those who have a few spare million to spend. You’d think with all that money they could afford a crash course at Jedi School to iron out these annoying mortal problems.

For those who don’t have the spare cash Buzz Aldrin, the second astronaut to walk on the moon, announced plans to hold a lottery for a ticket into outer-space http://www.sharespace.org/.

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Travel Health Insurance Association of Canada Debunks Article Claiming Travel Insurance is a Waist of Money

2007-06-16T12:45:00.000+07:00

The Travel Health Insurance Association of Canada (THIA) has responded to recent articles in various newscasts represented travel insurance as a waste of money. THIA argues that this assertion provides a disservice to Canadian travelers. Canadian travelers without supplemental out-of-country health insurance often risk a tremendous financial burden.
THIA noted that the advice was especially egregious because the conclusions reported in the newspapers were based on a survey targeted to Americans, not Canadian consumers. The survey suggests many Americans traveling abroad are already covered to some extent by their existing private health insurance. However, Canadians are not in the same situation.
Actually, in my experience, many US insurers do not cover their policy holders outside of the USA, especially for evacuation. For example, seniors on Medicare are not covered outside of the
USA for medical expenses. Also, many people traveling abroad are not covered at all for health insurance. Thus there is a vital need for most Americans to get travel insurance. They can check their health insurance plan to see if it does cover them abroad.
THIA noted that Canadian provincial health insurance plans do not adequately cover out-of-country medical services. Nominal claim benefits range from $75 a day to approximately $500 depending on the province. Payouts compared to a typical US hospital charge of $5,000 to $10,000 a day help underline the importance of travel insurance.
All Canadian provincial governments urge Canadians traveling out of the country to purchase supplemental travel health insurance that fill the gap between government coverage and foreign hospitals charges.
Those newscasts should have clearly stated that the survey was reporting about American consumers, not Canadians with vastly different health insurance circumstances. In this author’s opinion, people who write such articles should be very careful telling people not to purchase insurance products as people may not check their personal situation and may go abroad without proper protection. TFG Global Travel Insurance.com offers travel insurance for Canadians, Americans and people around the world with a variety of travel insurance plans to meet almost any budget.

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Defaqto Reports That Some Travel Insurance May be “Too Cheap” to be of Any Use

2007-06-14T13:00:00.002+07:00

Defaqto is reporting that some policies charge too little to be able to pay out. Consumers buying travel insurance have been warned not to base their decision just on the cost of the policy in a report published this week by Defaqto, the leading financial research company. The report ‘Travel Insurance in theUK – Cheaper is rarely better’, reveals that some policies are now “too cheap” to be able to offer adequate cover. Analysis of Defaqto’s Aequos database of 986 travel insurance policies found that there are 30 separate single trip policies that charge £10 or less for a week’s travel toEurope, with one quoting £5.49 per person. It urges consumers buying cheap policies to consider whether their insurer would be able to pay any claim made. Consumers should be purchasing quality travel insurance from a reputable source. Defaqto believes the UK Government and the insurance industry need to do more to educate consumers about the risks of travelling overseas without adequate cover. It estimates that around 10 million overseas visits are uninsured each year for a number of reasons including ignorance, unwillingness, or because travellers are ‘uninsurable’ due to their medical history. The familiarity of increased foreign travel is breeding contempt among many travellers who believe that travel insurance is unnecessary. It is believed that many travelers are under the wrong impression that a European Health Insurance Certificate (EHIC) removes the need for travel insurance, says Defaqto. This is probably the same situation in Canada and the United States where travelers may think their government or domestic health plans will cover their emergency medical insurance and evacuation needs. The report author and Defaqto’s Head of Insight,Brian Brown said: “Consumers are being let down by the insurance industry which has made travel insurance policies jargon heavy to the point that the only thing they can easily compare is price. This compounded with increased competition means that too many people are now travelling abroad with inadequate cover. With the continued growth of overseas travel to increasingly exotic places, more people are likely to end up on the wrong side of an insurance claim. “The insurance industry and the Government must to do more to ensure that all consumers are aware that when it comes to travel insurance, cheapest is not always best. Two key areas of particular concern are that consumers do not understand how baggage cover works and we believe that there needs to be more clarity with regards to insurers requiring original receipts for even minor claims” For quality travel insurance plans to meet almost any budget, consumers should check out TFG Global Travel Insurance at http://www.globaltravelinsurance.com/

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Older and those with pre-existing medical conditions face travel insurance problems

2007-06-14T13:00:00.001+07:00

Many people think that travel insurance companies are not justified in increasing costs for people with certain medical conditions and also those over the age of 65. Some say that this is discriminatory.But those who sell insurance know that insurance is only fair if the insurer charges the people at higher risk a higher premium and those at lower risk a lower premium. Fact is that if you are older, you are more likely to have health issues – so insurers have to build this into their premiums. Otherwise the insurer will have to charge younger and healthier travelers more and that would not be fair. On the bright side, travel insurance is a very low cost product with lots of competition amoungst travel insurance companies and brokers. But note that you should not be looking for the cheapest rate because that may mean a low level of coverage and denied claims. If you have a pre-existing medical condition, you should ask your travel insurance broker if they have a plan which can underwrite and cover it. Some travel insurance providers offer this. Note that the insurer may not be able to cover you even if your doctor says that you can travel without any medical problems. Bottom line is the doctor doesn’t have to pay the claim if you fall sick, the insurer does. TFG Global Travel Insurance offers a variety of travel insurance policies from a variety of travel insurers. Contact them if you need a plan which covers your pre-existing medical condition(s) as plans purchased online don’t ask medical questions and thus don’t cover pre-existing medical conditions. You will need to provide as much information about the pre-existing medical condition as possible, treatments, dates etc… along with medical forms to be completed by your doctor. TFG Global Travel Insurance has plans that can cover older travelers up to age 99.
Canadian Tourism Stats reports Solid Growth
(Jun 15th, 2007 by palado)
The March 29th issue of the Statistics Canada Daily report indicated that the Canadian tourism industry registered its third consecutive year of solid growth in 2006, with spending reaching$66.9 billion. A large part of this tourism spending was attributed to Canadians, rising at its fastest pace in a decade, whereas spending by foreign visitors fell for the second year in a row. With the increasing cost of gas and the new passport requirements for air travel into the United States, this trend may carry forward into the summer months in 2007. Canadians are continuing to travel, but their choice of destinations is changing. As you may know, travel over provincial borders may place Canadians at greater risk of being burdened with unexpected out of pocket health-care expenses. TFG Global Travel insurance.com has a variety of Canadian travel insurance policies, including Annual and Single Trip policies specifically tailored for travel within and outside Canada.

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How much travel medical insurance is enough?

2007-06-14T13:00:00.000+07:00

Well the simple answer is if you have a claim, you will want as much as possible. If you are traveling overseas, the last thing you wan to hear from your travel insurance company is that you only purchased a policy with a $50,000 overall maximum and your medical bills are already at $75,000. You could have purchased a $500,000 policy for only $20 more. It is unlikely that emergency medical expenses will exceed $500,000, but it does happen, so why take the chance. Most insurance agents recommend a travel insurance policy with at least a $1 Million overall maximum covering travel medical and evacuation expenses.Many people only get travel insurance because they need it for visa requirements from some foreign countries, especially inEurope. But why not get a bit extra because you just might need it and the last thing you want to hear when in the hospital is that you have met your maximum allowable coverage amount. If you are traveling in theUnited States, getting a large policy maximum is even more critical as everyone knows the cost of medical services there is much more expensive than anywhere else in the world. Still, more and more facilities around the world are charging as much asAmerica hospitals. Think of this when you get your travel insurance at TFG Global Travel Insurance.com and get the largest possible policy maximum.

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