Rabu, 30 Desember 2009
FAQs on COBRA subsidy extension: how long, what if you've dropped coverage already, etc.
eHealthInsurance.com has put out a useful Q&A re: the recent extension of the federal COBRA subsidy. Take a look.
Insurance news: CA workers-comp deal falters, unusual auto sting in PA, and couple allegedly fakes husband's death in life-insurance scam
In California, the state's bid to sell off part of its workers compensation fund has collapsed amid a legal tug-of-war, the LA Times reports.
The New York Times editorializes on "the case for reform" of health care.
An unusual auto-insurance sting took place in Pennsylvania, where 24 people were arrested for alleged fraud. Most of them were allegedly New Yorkers who were saving an estimated $1k to $4k a year on auto insurance by claiming that they lived in Pennsylvania. Insurance Journal has the story.
National Underwriter reports that insurers are sweating proposals to cut crop insurance.
Korea Times reports on the case of a couple who allegedly faked the husband's death -- including videotaping his fake cremation -- in an alleged life-insurance scam. He's been arrested.
Locally here in WA, the Tri-City Herald and (Tacoma) News-Tribune reported on rising numbers of people with no health insurance, as did the Vancouver Columbian.
The New York Times editorializes on "the case for reform" of health care.
An unusual auto-insurance sting took place in Pennsylvania, where 24 people were arrested for alleged fraud. Most of them were allegedly New Yorkers who were saving an estimated $1k to $4k a year on auto insurance by claiming that they lived in Pennsylvania. Insurance Journal has the story.
National Underwriter reports that insurers are sweating proposals to cut crop insurance.
Korea Times reports on the case of a couple who allegedly faked the husband's death -- including videotaping his fake cremation -- in an alleged life-insurance scam. He's been arrested.
Locally here in WA, the Tri-City Herald and (Tacoma) News-Tribune reported on rising numbers of people with no health insurance, as did the Vancouver Columbian.
Selasa, 29 Desember 2009
"Reputational risk" insurance follow-up: Researchers put a price tag on the Tiger Woods scandal
Two weeks ago, we mentioned that idea of "reputational risk" insurance being floated in the wake of the Tiger Woods scandal.
But how to measure the damage? This is not like, say, a fire, where an insurer can simply tally up structural damage and replacement cost of contents.
Well, yesterday two professors from the University of California, Davis attempted to put a price tag on the damage, and the number's pretty astounding.
Professors Christopher Knittel and Victor Stango estimate that shareholders in the companies that Woods endorsed lost a total of $5 billion to $12 billion in value in the time between his much-publicized SUV crash and his announcement that he was leaving golf indefinitely. And those calculations don't include losses to Wood's current- or future endorsement income.
Interestingly, the researchers concluded that Woods' sports-related endorsees suffered substantially more economic damage than non-sports companies, like business consultant Accenture.
But how to measure the damage? This is not like, say, a fire, where an insurer can simply tally up structural damage and replacement cost of contents.
Well, yesterday two professors from the University of California, Davis attempted to put a price tag on the damage, and the number's pretty astounding.
Professors Christopher Knittel and Victor Stango estimate that shareholders in the companies that Woods endorsed lost a total of $5 billion to $12 billion in value in the time between his much-publicized SUV crash and his announcement that he was leaving golf indefinitely. And those calculations don't include losses to Wood's current- or future endorsement income.
Interestingly, the researchers concluded that Woods' sports-related endorsees suffered substantially more economic damage than non-sports companies, like business consultant Accenture.
Insurance news: Green River levees, a deeper look at health-reform bills, and a good 2009 for catastrophes...
In local news, the Seattle Times writes about the potential flood risk of decades-old, poorly-maintained levees in the Green River Valley.
Time details some of the high-visibility things that would kick in immediately under health reform, versus the 2013 start date for much of the legislation.
The Seattle Times covers Congress' moves to close Medicare's infamous "doughnut hole."
A good year: Reinsurer Munich Re AG says that catastrophe costs were down in '09.
The AP reports on a provision in health-reform legislation that would "nudge" people into getting long-term care insurance, at a projected cost of $160-$240 per month deducted from their paychecks.
Time details some of the high-visibility things that would kick in immediately under health reform, versus the 2013 start date for much of the legislation.
The Seattle Times covers Congress' moves to close Medicare's infamous "doughnut hole."
A good year: Reinsurer Munich Re AG says that catastrophe costs were down in '09.
The AP reports on a provision in health-reform legislation that would "nudge" people into getting long-term care insurance, at a projected cost of $160-$240 per month deducted from their paychecks.
Senin, 28 Desember 2009
In Washington, state rate reviews have shaved $300 million from auto, homeowners premiums
Rate reviews by the Washington state insurance commissioner’s office have shaved more than $300 million from Washingtonians’ auto and homeowners insurance bills over the past decade.
“Few people know about this process, but it’s a crucial part of our consumer-protection role,” said Insurance Commissioner Mike Kreidler. “By carefully vetting requested rate increases, we save people substantial money on their premiums.”
In order to change rates, some insurers in Washington must get approval from the state insurance commissioner’s office. The companies produce data and calculations showing their justification for the requested rate. The state’s actuaries then review the request.
Each request is viewed on a case-by-case basis. Some are approved as requested. But many of the approved rates end up lower than what the companies originally requested. The changes can save policyholders millions of dollars a year.
For example, from 2000 through Nov. 30, 2009, rate reviews by the Office of the Insurance Commissioner trimmed more than $55 million from proposed homeowners’ insurance rates.
For personal auto insurance, rate reviews saved consumers nearly $246 million. Here’s a breakdown, by year:
Year Change by OIC Savings to consumers
2000 -.1 percent $1.9 million
2001 -1.1 percent $22 million
2002 -.8 percent $16.9 million
2003 -2.8 percent $60.7 million
2004 -1.4 percent $32.2 million
2005 -.3 percent $7.5 million
2006 -.5 percent $12.8 million
2007 -.7 percent $18.2 million
2008 -1.7 percent $44.5 million
2009 -1.1 percent $28.8 million
“Few people know about this process, but it’s a crucial part of our consumer-protection role,” said Insurance Commissioner Mike Kreidler. “By carefully vetting requested rate increases, we save people substantial money on their premiums.”
In order to change rates, some insurers in Washington must get approval from the state insurance commissioner’s office. The companies produce data and calculations showing their justification for the requested rate. The state’s actuaries then review the request.
Each request is viewed on a case-by-case basis. Some are approved as requested. But many of the approved rates end up lower than what the companies originally requested. The changes can save policyholders millions of dollars a year.
For example, from 2000 through Nov. 30, 2009, rate reviews by the Office of the Insurance Commissioner trimmed more than $55 million from proposed homeowners’ insurance rates.
For personal auto insurance, rate reviews saved consumers nearly $246 million. Here’s a breakdown, by year:
Year Change by OIC Savings to consumers
2000 -.1 percent $1.9 million
2001 -1.1 percent $22 million
2002 -.8 percent $16.9 million
2003 -2.8 percent $60.7 million
2004 -1.4 percent $32.2 million
2005 -.3 percent $7.5 million
2006 -.5 percent $12.8 million
2007 -.7 percent $18.2 million
2008 -1.7 percent $44.5 million
2009 -1.1 percent $28.8 million
Accident forgiveness: how it works
Some insurance companies are offering "accident forgiveness" as an option or to keep a valued customer.
Here, courtesy of the National Assocation of Insurance Commissioners, are some explanations and tips:
What is accident forgiveness?
Accidents can mean expensive repair and liability costs, and lead to higher premiums. Accident forgiveness means that an insurer agrees not to increase a customer ’s premium after the driver is involved in an at-fault accident. It is an enticing perk that many insurance companies offer either as part of a standard policy to loyal customers or as an additional endorsement that drivers with a safe driving record can purchase. Some companies also use it as an incentive to new customers for switching from another insurer. Insurers will often even extend the option to parents of teenage drivers.
While accident forgiveness can seem like a “free pass,” it’s important for consumers to understand the conditions and limitations associated with this option:
1. Is there a cost involved?
In some cases, accident forgiveness is included as part of a standard car insurance policy; however, you will typically pay a higher premium for a policy that includes this added protection. More often, accident forgiveness is offered as an additional endorsement – or coverage option – for a fee. Costs vary by insurer, so check with your current insurer as well as a few others if you’re looking for the best deal.
2. Who is eligible?
As with cost, eligibility may vary by insurer. Typically, qualification for accident forgiveness protection is based on two factors:
• Customer loyalty: Many insurers only offer accident forgiveness to customers who have been insured with the company for a certain number of years.
• Driving record: To qualify for the benefit, many insurers require that drivers have a clean driving record for several years. Not only will insurers look at your accident history, but some consider driving violations as well. That means that one speeding ticket could impact your eligibility.
3. Are all accident forgiveness policies created equal?
In a word, no. Policy conditions can vary greatly. Some policies require you to maintain a clean driving record for up to five years before you become eligible for accident forgiveness. With other policies, the coverage kicks in immediately. Similarly, some policies offer forgiveness for one accident while others forgive multiple accidents.
4. Does accident forgiveness make sense for you?
After an accident, insurers can raise your premiums by as much as 40 percent. If you are a safe driver who pays standard rates, then depending on the cost, accident forgiveness might not make sense for you. But if you have a history of violations and accidents and already pay higher rates, then opting for the benefit might help you save money in the long run. Talk with your insurance company or agent to learn more about how your rates might be affected by an accident.
Here, courtesy of the National Assocation of Insurance Commissioners, are some explanations and tips:
What is accident forgiveness?
Accidents can mean expensive repair and liability costs, and lead to higher premiums. Accident forgiveness means that an insurer agrees not to increase a customer ’s premium after the driver is involved in an at-fault accident. It is an enticing perk that many insurance companies offer either as part of a standard policy to loyal customers or as an additional endorsement that drivers with a safe driving record can purchase. Some companies also use it as an incentive to new customers for switching from another insurer. Insurers will often even extend the option to parents of teenage drivers.
While accident forgiveness can seem like a “free pass,” it’s important for consumers to understand the conditions and limitations associated with this option:
1. Is there a cost involved?
In some cases, accident forgiveness is included as part of a standard car insurance policy; however, you will typically pay a higher premium for a policy that includes this added protection. More often, accident forgiveness is offered as an additional endorsement – or coverage option – for a fee. Costs vary by insurer, so check with your current insurer as well as a few others if you’re looking for the best deal.
2. Who is eligible?
As with cost, eligibility may vary by insurer. Typically, qualification for accident forgiveness protection is based on two factors:
• Customer loyalty: Many insurers only offer accident forgiveness to customers who have been insured with the company for a certain number of years.
• Driving record: To qualify for the benefit, many insurers require that drivers have a clean driving record for several years. Not only will insurers look at your accident history, but some consider driving violations as well. That means that one speeding ticket could impact your eligibility.
3. Are all accident forgiveness policies created equal?
In a word, no. Policy conditions can vary greatly. Some policies require you to maintain a clean driving record for up to five years before you become eligible for accident forgiveness. With other policies, the coverage kicks in immediately. Similarly, some policies offer forgiveness for one accident while others forgive multiple accidents.
4. Does accident forgiveness make sense for you?
After an accident, insurers can raise your premiums by as much as 40 percent. If you are a safe driver who pays standard rates, then depending on the cost, accident forgiveness might not make sense for you. But if you have a history of violations and accidents and already pay higher rates, then opting for the benefit might help you save money in the long run. Talk with your insurance company or agent to learn more about how your rates might be affected by an accident.
Rabu, 23 Desember 2009
Insurance news: NW effects of health-reform bill, docs swapping practices for prison, and a takeover bid by Steak n Shake
Here in the Pacific Northwest, KPLU has an interesting story about the local effects of the health reform bill being debated by Congress.
Speaking of which, the New York Times' Prescriptions blog has an update on the process leading up to a planned Senate vote tomorrow at 8 a.m. Eastern time.
The Associated Press says that the costs of the changes (like new taxes and fees, including a tax on tanning parlors) will be felt long before the benefits. The AP also has a good overview of the looming vote and the differences between the House and Senate, and between Democrats and Republicans. And a third story from the AP says that abortion looms as a possible health bill deal-killer.
CNNMoney profiles some doctors who are choosing the steady paychecks, set hours and free malpractice insurance from prison work over the private sector.
New Jersey's state Senate is pushing ahead with a bill to tighten oversight of insurers.
And in Michigan, a small insurer has rejected a takeover bid by burger chain Steak n Shake.
Speaking of which, the New York Times' Prescriptions blog has an update on the process leading up to a planned Senate vote tomorrow at 8 a.m. Eastern time.
The Associated Press says that the costs of the changes (like new taxes and fees, including a tax on tanning parlors) will be felt long before the benefits. The AP also has a good overview of the looming vote and the differences between the House and Senate, and between Democrats and Republicans. And a third story from the AP says that abortion looms as a possible health bill deal-killer.
CNNMoney profiles some doctors who are choosing the steady paychecks, set hours and free malpractice insurance from prison work over the private sector.
New Jersey's state Senate is pushing ahead with a bill to tighten oversight of insurers.
And in Michigan, a small insurer has rejected a takeover bid by burger chain Steak n Shake.
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