Multifamily Insurance Trips and Traps

Surely every property owner’s nightmares must include finding out in the aftermath of a hurricane, fire or a lawsuit that insurance does not cover the costs. What a disaster! Apartment owners must be very careful to risk-manage properly and make sure their assets have the correct insurance policies.

Experts’ advice for ensuring proper insurance protection for apartment properties typically fall into three categories: Making sure that the right type of insurance is purchased, ensuring that enough coverage is purchased and selecting the right insurance broker.

Simply opting for the policy with the lowest premium “just because they are trying to save money” is one of the most common pitfalls of apartment owners, says Carlton Einsel, executive vice president of The Donaldson Group, a third-party apartment manager. “But people do that,” he adds.

According to attorney Barry Fleishman, partner at Kilpatrick Townsend & Stockton LLP, the most typical missteps apartment companies can make include not adequately understanding the coverage, not reviewing the actual policy terms with their brokers and legal counsel, and failing to compare losses in the past to their current coverage. Insurance is a very difficult and complex field, says Fleishman, and the risk manager or CFO should work closely with the broker and/or an insurance attorney to make sure there are no unintended gaps in the protection.

What type of insurance to purchase

First, apartment owners need to ensure the correct type of insurance is acquired. Experts advise that owners purchase all-risk—rather than named-peril—insurance, whether the insurance is third-party property insurance or general liability insurance. This is because named-peril insurance covers only risks that are specifically named, whereas all-risk insurance covers all risks except those explicitly excluded. Property owners should also be careful to have policies that reimburse at replacement cost—and that cover business interruption.

“Buy broad, all-risk, policies, rather than named-peril policies,” says Steve Cataldo, director of risk management at Greystar, which oversees insurance for a management portfolio of more than 48,000 apartment units.

Property insurance coverage generally applies to “all risks,” such as  fire, explosions, earthquakes, tornados and hurricanes, with the exception of specific exclusions. Fleishman, a legal specialist in policyholder insurance coverage, says it’s important that the apartment company review the risk history of the property and the areas in which losses were suffered in the past, and then ensure that none of these exposures are excluded from coverage.

The terms of the insurance, naturally, will be influenced by the location of the property. If the apartment asset is close to a disaster prone area, such as a flood or an earthquake zone, the insurance policy will likely contain sublimits that may be much lower than the coverage for the basic perils.

Certain perils such as windstorms and earthquakes may also carry higher deductibles, depending on the location of the asset, adds Derek Ramsey, Greystar CFO. The apartment owner needs to determine its ability to fund the deductible if a loss occurs. If available cash will be insufficient to meet that deductible, then the owner may want to consider paying a higher premium in order to obtain a lower deductible, he points out.

If coverage for particular risks-—such as flood, pollution or earthquakes in certain regions—is not found in traditional types of policies, the property owner may be able to look to alternative instruments for managing risks. These alternative instruments, which can be very sophisticated, include specialty risk policies (such as pollution liability policies), catastrophe bonds, self-insurance supported by re-insurance, or industry risk retention pools, says Fleishman.

As regards both liability and property insurance, Fleishman advises that apartment owners ensure that all layers of insurance—primary, umbrella and excess—be consistent with each other. For example, property owners should make sure that certain excluded losses in primary layers are not also excluded in umbrella or excess layers. In such cases, there would be a gap in coverage.

“Sit with your broker (or attorney) and go through the policy page by page(it takes one day or so), and understand what is in the policy: what is covered and what is excluded,” he says. “The broker should make sure the policy is consistent in each layer of insurance or tell the client where it is not.”


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Restaurant Insurance Basics

One area in the restaurant business you do not want to skimp is insurance. Insurance can protect you and your business for a myriad of problems, from broken equipment to liability lawsuits. Depending on where you live, you will need certain types of insurance for your restaurant. You will also need to carry certain types of insurance to satisfy your bank loans and mortgage.
The most common types of restaurant insurance available include:
• Property Insurance- – Protects your property in case of fire or other events. It may not cover natural disasters, such as floods or earthquakes (see below for a policy that does.) If you have any kind of mortgage on your business and/or equipment, then you should carry a property insurance policy.
• General Liability – This is the umbrella policy that protects you in the event someone slips and falls in your restaurant, gets sick after eating there (whether it was your fault or not). This is a must have in today’s sometime sue-happy world.
• Liquor Liability – Most states require that any establishment holding a liquor license carry liquor liability as part of their insurance. It helps protect you if a customer has too much to drink and drives and hurts themselves or someone else.
• Automobile Liability – If you have a company vehicle, this is a good insurance to have. It may be covered in your general liability, but always check with your insurance agent first.
• Workers Compensation – Protects you if an employee is hurt at work. Most states require that all employers carry some type of workers comp.
•Unemployment Insurance– Is for your employees who no longer work for you until they find employment.
• Life Insurance – Depending on your mortgage and financing you may need to carry a hefty life insurance policy to satisfy your lender. It is also a good idea to have life insurance, in case something does happen to you and your family isn’t left with a restaurant they don’t know how to run and bills they can’t pay.
There is insurance for just about any object, action or person out there. Here are some other types of insurance you can purchase for your restaurant.

• Loss of Business Insurance – If you lose sales through a specific cause, this type of policy can recoup some of the income. Keep in mind the premiums and deductible may make you break even, depending on how much you lose.
• Food Contamination Insurance - If you lose power, because of fallen power lines or a storm, and the entire contents of your walk-in and freezer spoil, this policy would pay to replace the food.
• Specific Peril InsuranceThis covers many natural disasters that general liability insurance doesn’t. Events like earthquakes, floods or power outages due to either, may be covered under this insurance.

Use a trusted insurance agentwhen buying insurance when you are opening a new restaurant. They will know the local and state laws pertaining to how much insurance you need and can help you decide how much more you want to carry.

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Does Homeowners Insurance Cover Theft Outside the Home?

Many losses of personal property due to theft outside your home may be covered by off-premises coverage. This type of coverage is included standard in many policies, however off-premises policies may not be available in all areas, particularly areas with high crime rates.  But many insurers will add an off-premises rider to your coverage for a small extra charge if it’s not included in your policy.

Your off-premises coverage isn’t a panacea for all your losses to theft, however. Your policy won’t cover the loss of an automobile--although your auto policy might--or CDs, stereos or MP3 players stolen from a car. Your homeowner’s policy usually won’t cover the loss of a boat, an outboard motor or other items from a boat that isn’t parked at your home, either. The claims limit of some high-ticket items, such as jewelry, electronics or collectibles, may be much lower than the item’s actual value.

If your children are college students, your homeowner’s policy may even extend to losses from theft they suffer. Many policies’ off-premises coverage extends to the homeowner’s children who are students if they live in the dorm, so property stolen from a dorm room or when they’re studying -- such as a laptop stolen while they were at the library -- may be covered. When your child moves out of campus housing and into her own apartment or house, she’ll probably need to carry her own renter’s policy to cover thefts.

Source: http://homeguides.sfgate.com/homeowners-insurance-cover-theft-outside-home-53333.html

Main Line Insurance Office has been providing service to our customers since opening our doors in 1974. We are licensed in and serve businesses and individuals in PA, DE, NJ, MD, VA, and FL. Our staff will help you analyze your insurance coverage issues to develop insurance policies for your specific requirements.

The 10 Most Stolen Vehicles

The National Insurance Crime Bureau (NICB) recently released its annual list of the most frequently stolen cars in the U.S., and the 1994 Honda Accord topped the list for the fourth year in a row.

Though late-model sports and luxury cars tend to be swiped intact and sold with swapped identification numbers and laundered titles or sent to other countries, more-common models (like the Honda Accord, Honda Civic, and Toyota Camry – especially older examples that lack newer key-code anti-theft technology) are usually driven or towed away and immediately dismantled at so-called “chop shops.” While the recoverable value of any of these dated models tends to be comparatively minimal, they’re worth far more as an amalgam of salvaged used parts sold by unscrupulous vendors.

The NICB reviewed vehicle theft data submitted by law enforcement to the National Crime Information Center during 2011 to produce the following list of the 10 most-stolen vehicles during 2011:

1. 1994 Honda Accord midsize
2. 1998 Honda Civic compact
3. 2006 Ford F-150 pickup
4. 1991 Toyota Camry midsize
5. 2000 Dodge Caravan minvian
6. 1994 Acura Integra compact
7. 1999 Chevrolet Silverado pickup
8. 2004 Dodge Ram pickup
9. 2002 Ford Explorer SUV
10. 1994 Nissan Sentra compact

Source: http://www.forbes.com/sites/jimgorzelany/2012/08/20/the-10-most-stolen-vehicles/

Main Line Insurance, located in Paoli, Pennsylvania, serves businesses and individuals in PA, DE, NJ, MD, VA, and FL. Our staff will help you analyze your insurance coverage issues to develop insurance policies for your specific requirements.

Liquor Liability Insurance

Liquor Liability is an essential type of restaurant insurance for establishments that sell alcoholic beverages. Selling alcoholic beverages carries with it a risk of irresponsible behavior by intoxicated patrons. Property damage, personal injury, or service of alcohol to underage customers could result in lawsuits being brought against a restaurant, club, or bar who serves alcohol.

In the eyes of liquor liability and restaurant insurance providers, some business types and business practices are more risky than others. Factors such as the average age of the patrons, type of entertainment provided, drink promotions, and age verification procedures can have a great effect on the level of liquor liability the business requires.

Source: http://theliquorlicenseadvisor.com/blog/?cat=9

Main Line Insurance, located in Paoli, Pennsylvania, has over 35 years of experience providing restaurant insurance to food and drink establishments ranging from the corner deli to the large fine dining five star eatery.

What Can You Do If Your Sandy Insurance Claim Is Denied?

November 13, 2012
By Michael L. Diamond, Asbury Park Press, N.J.
The townhouse at 2 Vista Shores Drive in Union Beach lies in a crumpled heap with a lifetime of Susanne Bannon's belongings -- photos from a childhood in Ireland, Waterford crystal from her wedding, the bed she slept in last month -- now in one pile.
What is less clear is what caused the structure overlooking the Raritan Bay to topple over the night superstorm Sandy struck. Was it the wind, or was it the flood?
It's a distinction that for many homeowners at the Shore is at the heart of whether they can recoup their losses. Most every household has a homeowner's policy that covers damage by wind, rain and fire. Fewer have policies that cover flood damage.
It has sent Bannon, at least, scrambling to figure out her options after her homeowner's insurance claim was denied. And it has set the stage for a fight between homeowners and insurance companies that, if Hurricane Katrina is a sign, could wind up in court for many years.
"Most of the time (with Katrina), most of the problems were which (natural disaster) came first," said Mark Mese, an attorney who specializes in insurance for Kean Miller, a law firm in Baton Rouge, La. "It looks like there's going to be the same problem with Sandy."
Bannon was told by her insurance company, Allstate, that her home was brought down by the flood. It could cost her more than $100,000 -- the difference between what Allstate pays for her contents and what her flood policy pays through the federal National Flood Insurance Program.
Bannon, now in her late 60s, moved to Union Beach in 1999, downsizing from her home in Hazlet a few years after her husband died and her two children went out on their own.
She found an end unit in a townhouse complex, which, on clear days, came with a picturesque view of the bay and Manhattan.
With Sandy approaching, Bannon heeded evacuation orders and stayed at the Keyport home of her daughter, Maureen. The next day, she returned to Union Beach. By habit, she walked into the end unit. It belonged to someone else. Her home was nothing more than debris.
"It was devastation in Union Beach," Bannon said, standing outside what was left of her home. "I walked by this and said, 'Thank God this is a pile of rubble.' I walked in this door and said, 'This doesn't look like my unit.' "
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Maureen Bannon said Allstate had claims adjusters on the scene quickly, and they were nothing but sympathetic, leading the Bannons to believe that Susanne's homeowner's policy would cover the damage. But four days later they got a call; Allstate said the damage was caused by flood and was closing the claim.
It left Susanne Bannon to turn to her flood policy, where she quickly found the problem. Her homeowner's policy reimburses her up to $146,000 for contents. Her flood insurance policy reimburses her up to $12,800 for the same, she said.
Tracy Owens, a spokesman for Allstate, said he couldn't discuss individual homeowners' policies. But he said tidal waters can cause floods, which would not be covered by homeowners' policies.
The issue of what caused the damage first -- wind, fire or flood -- is one that homeowners and insurers fight over after virtually every hurricane. And Sandy with its 80 mph sustained winds and huge tidal surges offers more complications than normal, said Leslie Knox, a public insurance adjuster with Andrew K. Knox and Co. in Toms River.
Some damaged properties are easier to assess than others. Property insurers can point to a discolored line on the wall as evidence of where flood waters reached and conclude they won't pay for damage, say, on the first floor, Knox said.
If the building isn't standing?
"It makes it pretty hard to develop an argument when the building has been demolished," Knox said.
Homeowners who find themselves in disputes have some options:

• They can hire a public insurance adjuster who can assist the property owner in preparation, presentation and adjustment of Sandy-related losses. While insurance claims adjusters work on behalf of the insurance company, public insurance adjusters work on behalf of consumers. The two sides may be able to meet and iron out differences.
• Policyholders who don't agree on the settlement amount can avoid litigation and demand an appraisal. Both sides hire appraisers. They meet to discuss differences. And if they can't agree, it is sent to an umpire to decide.
• New Jersey policyholders whose claims are denied can appeal to their insurer's ombudsman who would review the decision.
• Policyholders can hire an attorney and take the case to court -- a move that wasn't uncommon after Hurricane Katrina hit the Gulf Coast.

The Bannons have hired an attorney and now are looking for clues to piece together an expensive question: What caused 2 Vista Shores Drive to collapse?
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All around the borough are crumpled homes gutted by floods. But here, every other townhouse is standing. The attic is on the bottom of the pile. And all of the contents -- the oven, the exercise ball, the kitchen table -- aren't washed away, but lie in one neat heap.
At stake is whether Susanne Bannon rebuilds here, or begins to search for a new place to live.
"This is the only logical spot for her to be happy, content," Maureen Bannon said. "It fits her."

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Vehicle History May Become Another Insurance Rating Factor

November 16, 2012
Calumet City, Illinois (PRWEB) November 16, 2012
Auto liability insurance rates are generally expressed as a function of applicant's credit score, ZIP code, age, gender, marital status, driving history, besides certain surcharges and discounts. Physical damage car insurance rates are based, generally speaking, on the value of the insured vehicle. While most standard carriers have been using the CLUE reports in their underwriting, a couple of new patents have been filed by CARFAX to incorporate the vehicle history data in the auto insurance rating models.
Auto insurers have been using the C.L.U.E. reports and VIN reports for a while. CLUE auto reports offer a seven year history of automobile insurance losses associated with a person. The paid service is offered by LexisNexis. CLUE reports include the following data: date of auto loss, loss type, and amount paid along with general information such as policy number, claim number and name of insurer.
The U.S. Department of Justice in partnership with the American Association of Motor Vehicle Administrators (AAMVA) run a governmental body called the National Motor Vehicle Title Information System (NMVITS) to identify vehicle history pertaining damaged vehicles in order to prevent fraud. There are few other paid services in the private sector that compete with CARFAX in providing vehicle history data reports from the NMVITS. These include Auto Data Direct, Check That VIN, CVR, Experian, InstaVIN, and VIN Smart. Information included in the NMVITS includes current and previous state of title data, title issue date, latest odometer data, theft history data (if any), any brand assigned to a vehicle and date applied, as well as salvage history, including designations as a "total loss" (if any).
Ed Snenneh of Insurance Navy, a leading provider of auto insurance in Chicago said that the "new CARFAX patents are aiming at incorporating the vehicle history data, using quantitative models (scores), in the pricing models of auto insurance. Currently some carriers use the vehicle history information for reasons other than pricing. It is unsure how insurers will use the information. For example, if the data reveals lower value for a particular vehicle, will the insurer charge less physical damage premium to insure that particular vehicle because the amount at risk is lower?"
"The biggest issue we see is the cost vs benefit resulting from using the new models. Insurers will incur additional costs for ordering these reports. Will the increase in revenues from using these additional pricing factors justify the cost of obtaining the data for each vehicle to be insured? This question is yet to be answered by the insurers," Mr. Snenneh added.

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Health insurers begin to provide user-friendly plan guides

Under President Barack Obama's healthcare reform law, employers and insurers must provide a summary of benefits and coverage in a clearly worded, standardized format that allows the private insurance market's 163 million beneficiaries to make side-by-side comparisons of plan offerings.

Consumers are also required to have access to a standardized glossary of insurance and medical terms. The rule takes effect just as insurers and employers prepare for annual enrollment periods, when employees select their coverage for 2013.

The benefit guides will also factor into the creation of new state-based health insurance markets due to begin offering subsidized, private coverage to moderate-income consumers in January 2014.

The Department of Health and Human Services released an eight-page sample benefits form to demonstrate how the actual summaries will outline everything from deductibles and out-of-pocket expenses to referrals and network providers.

The guides are also supposed to show what a plan covers for two common medical situations -- new births and adult diabetes.

U.S. officials compared the summaries to the Nutrition Facts label required for packaged food sold in the United States.

The rule has been criticized by the insurance industry as a new administrative burden that will increase the cost of healthcare coverage. 

Source: http://www.reuters.com/article/2012/09/24/us-usa-healthcare-insurance-idUSBRE88N0Y620120924

Insurance gap needs to be filled

Many people who could use additional auto insurance protection may not find that out until it's too late. They would have a better chance of not facing that gap if the governor approves legislation encouraging, although not requiring, drivers to choose to buy greater liability insurance.

The bill, sponsored by the chairmen of the insurance committees, Sen. James L. Seward, R-Oneonta, and Assemblyman Joseph Morelle, D-Rochester, and passed overwhelmingly in both houses is expected to reach Gov. Andrew M. Cuomo's desk soon.

It goes to the heart of what consumers often think they're getting and the reality that can hit them.

New York motorists tend to increase their liability insurance to protect other motorists from their negligence beyond the legal limit of $25,000 per individual and $50,000 per accident. And that's good because according to the Insurance Research Council, about 5 percent of cars in New York were uninsured in 2009. That places New York at the very lowest end of states by percentage of uninsured motorists, but that's still a big number.

So what about those people who have already opted to increase their liability insurance?

What they don't know - and may find out painfully after a serious accident - is that their increase in liability insurance coverage was not matched by an increase in their supplementary uninsured/underinsured motorist (SUM) insurance. This is the insurance that provides coverage in the event that they are the victims of an accident with an uninsured or underinsured driver.

It isn't until the unpaid bills start to show up that many discover they did not, in fact, have the coverage they expected.

Consumer advocates point to the case of Staten Island residents Victor and Wilma Rao, who were hit by an uninsured ex-convict who was driving drunk. The local business owners had purchased additional liability insurance but did not have additional SUM coverage.

Both were seriously injured. Because the other driver had no insurance, the couple had to take care of hospital and rehabilitation bills that piled up above the $25,000 minimum uninsured/underinsured coverage they had.

New York's legislation would establish the default setting for SUM coverage at the amount chosen by the consumer for liability. It is aimed only at consumers choosing liability coverage above the statutory minimums, and should cost less than $100 per year for most policyholders.

Again, this is not a requirement. The supplemental insurance, for those who can afford it, is a prudent investment. This law will ensure that they know about it.

Source: http://www.buffalonews.com/apps/pbcs.dll/article?AID=/20120919/OPINION/120919009/1074

The importance of long-term insurance

Long-term disability insurance and long-term care insurance are difficult issues to talk about.

For starters, there are many situations where these types of insurance are never needed at all. If someone passes away very suddenly, the money spent on these insurances goes for naught.

In some situations, the premiums might simply be beyond what they can actually afford. These types of insurance are not free, after all.

In my view, the benefits of long-term disability and long-term care insurance are worth the cost, but only if you’re in a position to afford it without putting your finances into crisis mode.

So, what are these policies?

Long-term disability insurance is a type of insurance that provides you with some portion of your salary in the event that you’re no longer able to work because of your job. Some employers offer this coverage directly, but in many cases, you have to obtain it yourself.

Long-term care insurance is a type of insurance that pays for some or all of the costs of your long-term care if you find yourself in a situation where you need extensive care for your health. Often, this occurs near the end of one’s life, when medical issues begin to mount.

In both cases, you need to fully understand what is being insured when you get the policy. While some policies are very strong, others are full of loopholes which minimize what the insurance company would have to pay.

So, when do you need these policies?

If you’re a professional who earns an income that your family simply could not live without, you should strongly think about long-term disability insurance. There are many situations where your ability to do your job could be limited severely without taking your life (blindness, severe injury, brain trauma, countless diseases). If you’re making a strong income and your family relies on that, you should think about this type of insurance.

On the other hand, long-term care insurance appeals more to retirees and people approaching that age. The goal with long-term care insurance is to make sure that you’re covered as well as possible should you need long-term care during your final years. If you have a spouse, a large part of the reason for obtaining the insurance is to protect your partner.

In either case, get the insurance only if it doesn’t break the bank for you. Most of the time, the cost is on the order of a hundred dollars (or two) per month, depending on your specific situation. Get it if you can afford it, because the peace of mind it can give you is worth it.

http://www.csmonitor.com/Business/The-Simple-Dollar/2012/0910/The-importance-of-long-term-insurance

Why You Should Have Umbrella Liability Insurance

Umbrella liability insurance is an inexpensive way to protect you and your property from lawsuits. You don’t need it if you have relatively little at stake, but “if you’ve accumulated some assets and have a home, it makes sense to have the policy,” says Rob Seltzer, a CPA in Los Angeles. He recommends that you add an umbrella policy, which starts at $1 million of coverage, to protect against lawsuits even if your net worth is far less than that. The policies protect future income as well as assets and also cover legal fees. 

Insurers generally require that you have at least $300,000 in liability coverage on your home and automobile before you can buy umbrella coverage, which picks up after you’ve exhausted your homeowners and auto liability limits. The first $1 million of coverage generally costs $200 to $400 a year; the next $1 million runs an additional $75 to $100.

Raising your auto and homeowners deductibles from, say, $250 to $1,000 would offset the cost of $1 million in umbrella coverage, says Seltzer. “If you are in a car accident and have to come up with an extra $750 for the deductible, that’s not going to kill you. But if something really bad happens, that $1 million umbrella policy is a savior.”

To buy the coverage, start with your auto- or homeowners-insurance company, which may give you a discount for keeping your business in-house. If your company doesn’t offer affordable umbrella coverage, ask an independent insurance agent for quotes.

Source: http://www.kiplinger.com/columns/ask/archive/why-you-should-have-umbrella-liability-insurance.html 

More information at: http://www.mainlineinsurance.com/public/umbrella_liability.asp

Landlord Insurance

Landlord Insurance is a special type of homeowner's insurance specifically designed for property owners who rent all or part of their property to others. Like a standard homeowner's policy, a landlord's insurance policy will usually cover damage to the building and the owner's belongings. The policy also includes liability coverage and medical coverage for injuries on the property. With the exception of the owner's property that is stored and used on the premises, the interior contents of the building will not be covered.

Understand your coverage options
Specific coverage varies with the policy, with additional options increasing its cost. One way to lower the price is to increase the deductible amount for each claim. Deductibles are the amount that you are required to pay in the event of a property loss. Deductibles typically range from $100 to 5% of the building coverage amount.

Comprehensive insurance will cover loss from all causes unless specifically excluded. Lower cost policies may limit coverage to specifically named situations or "named perils." Lower cost "actual cash value" policies will reimburse the owner for the value of the property less depreciation. Higher cost "replacement value" policies will reimburse the cost of replacement, but only if a replacement is actually purchased.

Actual cash value coverage factors in depreciation when paying claims but has a lower premium. Replacement cost coverage pays the full replacement cost of building damage; however, the landlord must rebuild the property to receive reimbursement of the full replacement cost.

A landlord's policy may also include additional features specific to the landlord-tenant activities being conducted on the property. One common option reimburses for loss of rental income during a period in which the property becomes uninhabitable. Landlord's insurance may also include extra coverage due to increased risks associated with doing business with tenants. These include coverage for legal fees and extra liability coverage, including coverage for libel, slander and discrimination claims.

Urge your tenants to buy Renter's Coverage
It is a good idea to require your tenants to purchase rental insurance. A landlord's insurance policy will generally not insure a tenant's property located in a rental unit. The tenant must either self-insure or purchase his own renter's insurance policy. Nonetheless, a tenant may benefit from a landlord's insurance because it may compensate the tenant for damages and losses under the landlord's liability coverage. Additionally, a tenant may be spared the inconvenience of relocating if insurance payments enable the landlord to make needed repairs in a timely manner.

How much coverage to buy?
If a property is mortgaged, the lender will usually require an insurance policy sufficient to cover the outstanding loan balance. Coverage above that level and extra coverage options are completely up to the landlord. Generally, the decision of whether to insure requires an assessment of the potential saved premiums against the risk of bearing all costs associated with a future loss or claim. When considering insurance on property which has significant value and which can be associated with liability claims, only very high net worth individuals are likely to find complete self insurance a viable option.

...
In summary, landlord insurance protects property investors from financial risk in the event the property is damaged or individuals are injury on the property. Investors must make a business decision about how much coverage to purchase on the building and the extent to which they need coverage for loss of use or lost income. However all investors should purchase liability insurance to protect against the potentially catastrophic medical and legal costs associated with lawsuits from individuals who are injured on the property.


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Why are some cars more costly to insure than others?

A variety of factors influence how much you pay for auto insuranceincluding your age, driving record, gender, how many miles you drive, where the car is garaged, and the vehicle's make and model.

Even when all other factors are equal, the price of insurance can vary widely by type of vehicle. Generally, the more expensive a car is, the more costly it is to insure. That's because a high-end luxury sedan will cost a lot more to repair or replace than a modest family car, and insurers are well aware of the difference.

In setting the premium, insurers consult a database that shows the number and type of insurance claims filed for each vehicle make and model. Some vehicles have a heavier claim history than others.

Small cars and car insurance
For instance, smaller cars tend to be associated with more injury and collision claims than larger vehicles because they tend to get into more accidents. That may be due to who drives them--namely young people with limited driving experience.

Small cars as a group also tend to be less safe than large, heavy cars, which are better able to absorb the energy of a crash than smaller cars.

Among the cheapest vehicles to insure are minivans, largely because of the good safety records of their typical drivers--soccer moms. Minivans also are not designed for speed or to whip in and out of traffic, so they don't encourage unsafe driving. The most expensive vehicles to insure are ultra-luxury cars and high-end sports cars.

Get car insurance quotes for various vehicle makes and models you're considering before you make a final decision when shopping for a new or used car.


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How do I take a home inventory?

A home inventory may not seem like a high priority on your list of things to keep up with as a homeowner. However, in the event that your home was destroyed in a fire or other peril, this list will be one of your greatest assets.

A home inventory is a detailed list of all of your home contents. In the event that disaster strikes your home, this list will help you remember all of your personal belongings so that you can report your entire loss to your insurance company. Contents coverage (or coverage C) is the portion of a homeowners insurance policy that provides coverage for the items inside of your home.

In the event of a disaster striking your home the loss can be overwhelming and many homeowners can not remember everything that they had in their home before the loss. A home inventory will keep you from forgetting important items and help speed up the claims process.

Also, when taking a home inventory take note of any particularly high-value items such as pieces of jewelry, furs or collectible items. Some of these items have coverage limits associated with them which may leave some of your possessions under insured. Ask your insurance agent if you need an endorsement, or rider, on your policy in order to adequately cover these items.

When taking an inventory of your home, be sure to include everything you own except vehicles, animals and items that are insured under other policies. It is important to keep this document in a safe place outside of your home- such as in a safe deposit box or at a relative's house.

A few helpful reminders for creating your home inventory:

• List every item of value in your home
• Include serial numbers of items anywhere you can
• Continuously update your home inventory as you acquire new items
• If you have the receipt- include it!
• Take Photos- take close-up and wide-angle shots, use a color camera or video camera if possible and have a family member in all pictures to help prove ownership.

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Why You Should Have Umbrella Liability Insurance

I already have $400,000 in liability coverage on my auto-insurance policy. How do I determine whether I need to add an umbrella liability insurance policy to my coverage? How much would an umbrella policy cost?

Umbrella liability insurance is an inexpensive way to protect you and your property from lawsuits. You don’t need it if you have relatively little at stake, but “if you’ve accumulated some assets and have a home, it makes sense to have the policy,” says Rob Seltzer, a CPA in Los Angeles. He recommends that you add an umbrella policy, which starts at $1 million of coverage, to protect against lawsuits even if your net worth is far less than that. The policies protect future income as well as assets and also cover legal fees.

Insurers generally require that you have at least $300,000 in liability coverage on your home and automobile before you can buy umbrella coverage, which picks up after you’ve exhausted your homeowners and auto liability limits. The first $1 million of coverage generally costs $200 to $400 a year; the next $1 million runs an additional $75 to $100.

Raising your auto and homeowners deductibles from, say, $250 to $1,000 would offset the cost of $1 million in umbrella coverage, says Seltzer. “If you are in a car accident and have to come up with an extra $750 for the deductible, that’s not going to kill you. But if something really bad happens, that $1 million umbrella policy is a savior.”

To buy the coverage, start with your auto- or homeowners-insurance company, which may give you a discount for keeping your business in-house.


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Insurance should deal with risk

Insurance is all about risk. Yet neither insurance companies nor their policyholders can do anything about one of the biggest risks — namely, interference by politicians, to turn insurance into something other than a device to deal with risk.

By passing laws to force insurance companies to cover things that have nothing to do with risk, politicians force up the cost of insurance.

Annual checkups, for example, are known to take place once a year. Foreseeable events are not a risk. Annual checkups are no cheaper when they are covered by an insurance policy. On the contrary, they are one of many things that are more expensive when they are covered by an insurance policy.

All the paperwork, record-keeping and other things that go with having any medical procedure covered by insurance have to be paid for, in addition to the cost of the medical procedure itself.

Politicians love to mandate things that insurance must cover, including in some states treatment for baldness, contraceptives and whatever else politicians can think of. Playing Santa Claus costs a politician nothing, but it can cost the policyholder a bundle — all of which the politician will blame on the “greed” of the insurance company.

Insurance companies are regulated by both states and the federal government. This means that, instead of there being one vast nationwide market, where innumerable insurance companies compete with each other from coast to coast, there are 50 fragmented markets with different rules. That adds to the costs and reduces the competition in a given state.

When there are innumerable insurance companies, it is by no means clear that political regulation of them will produce better results than the regulation provided by competition in the market. In a competitive market, insurance companies would cover only those things that policyholders are willing to pay to have covered. Policyholders would have no reason to pay to have insurance cover things that would be cheaper if paid for directly — or not paid for at all, in the case of things that are not a concern to many people, such as baldness cures.

One of the factors in the number of the “uninsured,” for whom politicians are willing to turn the whole medical-care system upside down, is the high cost of insurance that covers far more things than most people would be willing to pay for, if it was up to them. The uninsured who use hospital emergency rooms and don’t pay are a problem only because politicians passed laws forcing hospitals to let themselves be taken advantage of in this way.

Too many political “solutions” are solutions to problems created by previous political “ solutions” — and will be followed by new problems created by their current “solutions.”

There is no free lunch. In the case of health insurance, there is not even an inexpensive lunch.

Health insurance would be a lot less expensive if it covered only the kinds of risks that can involve heavy costs, such as a major operation or a crippling disability. While such things can be individually very expensive, they don’t happen to everybody, and insurance is one way to spread the risks, so that the protection of a given individual is not prohibitively expensive.

The problem of “pre-existing conditions” is a problem largely because of the way that politicians have written the laws — more specifically, by giving a tax break to employer-provided health insurance. If individuals bought their own health insurance, with the same tax advantages, the fact that an illness occurred after they changed employers would not make it a “pre-existing condition.”

There is no inherent reason for employers to be involved in the first place. The fact that some guy manufactures furniture or plumbing fixtures in no way qualifies him to understand insurance for his employees. Including him in the loop adds another unnecessary layer of bureaucratic costs.

Political risks are the biggest risks.

Source: http://www.dispatch.com/content/stories/editorials/2012/08/30/insurance-should-deal-with-risk.html

What The Apollo Astronauts Did For Life Insurance

This week, Americans have been remembering Neil Armstrong. But before he walked on the moon, he had to solve a much more prosaic problem.

"You're about to embark on a mission that's more dangerous than anything any human has ever done before," Robert Pearlman, a space historian and collector with collectspace.com, told me. "And you have a family that you're leaving behind on Earth, and there's a real chance you will not be returning."

Exactly the kind of situation a responsible person plans for by taking out a life insurance policy. Not surprisingly, a life insurance policy for somebody about to get on a rocket to the moon cost a fortune.

 

But Neil Armstrong had something going for him. He was famous, as was the whole Apollo 11 crew. People really wanted their autographs.

"These astronauts had been signing autographs since the day they were announced as astronauts, and they knew even though eBay didn't exist back then, that there was a market for such things," Pearlman said. "There was demand."

Especially for what were called covers -– envelopes signed by astronauts and postmarked on important dates.

About a month before Apollo 11 was set to launch, the three astronauts entered quarantine. And, during free moments in the following weeks, each of the astronauts signed hundreds of covers.

They gave them to a friend. And on important days — the day of the launch, the day the astronauts landed on the moon — their friend got them to the post office and got them postmarked, and then distributed them to the astronauts' families.

It was life insurance in the form of autographs.

"If they did not return from the moon, their families could sell them — to not just fund their day-to-day lives, but also fund their kids' college education and other life needs," Pearlman said.

The life insurance autographs were not needed. Armstrong and Aldrin walked on the moon and came home safely. They signed probably tens of thousands more autographs for free.

But then, in the 1990s, Robert Pearlman says, the insurance autographs started showing up in space memorabilia auctions. An Apollo 11 insurance autograph can cost as much as $30,000.

Pennsylvania Insurance Department Announces Updated Highmark Filing

The Pennsylvania Insurance Department today announced that UPE/Highmark has filed updated information regarding its proposed change of control and affiliation with West Penn Allegheny Health System. 

"The new supplemental filing describes significant developments that have occurred since last November's original filing," said Insurance Commissioner Michael Consedine.

"This includes changes in Highmark's leadership, governance structure, an additional affiliation with another regional medical center, and the UPMC contract extension. The department will continue to analyze this new information and make it available for public review and comment."

Significant developments and changes in the proposed transaction include:

• Integrated delivery network expenditures:  In addition to the initially proposed West Penn Allegheny Health System (WPAHS) expenditures, which remain at $475 million, the supplemental filing describes $525 million of additional expenditures related to Highmark's implementation of a broader integrated delivery network, including an affiliation with Jefferson Regional Medical Center (JRMC). The supplemental filing discloses the currently anticipated allocation of expenditures, which totals an estimated $1 billion:
  • WPAHS: $475 million
  • JRMC: $120 million
  • Provider network expansion (physicians, community hospitals and medical malls): $364 million
  • Infrastructure development (physician practice management company, group purchasing organization): $41 million
• UPMC contract extension: The original filing anticipated that contracts between Highmark and the University of Pittsburgh Medical Center (UPMC) would be terminated effective June 30, 2012, with a one-year run out period. Those contracts have now been extended and the supplemental filing describes the impact of that extension.
• Proposed affiliation with Jefferson Regional Medical Center:  The affiliation between Highmark and JRMC occurred in June 2012 and is described in the supplemental filing.
• Change in UPE/Highmark CEO and description of leadership: The supplemental filing describes the appointment of William R. Winkenwerder Jr., M.D., M.B.A. as President and Chief Executive Officer of UPE and Highmark; and also describes the proposed leadership of the Integrated Delivery Network and WPAHS, if the filing is approved.
• Governance and reserved powers: The supplemental filing provides a revised description of the proposed governance structure and discloses proposed amended and restated Bylaws of Highmark, including powers to be reserved to UPE.
• Other developments: The supplemental filing describes other developments that are relevant to Highmark's proposed change of control.

The updated filing, public comments and related materials are available on the department's website. Visit www.insurance.pa.gov  and click on "Highmark/West Penn."

"A full, transparent, and robust public record has been one of our goals with this filing review," Consedine added.  "The public comment period will remain open to afford everyone ample opportunity to provide written comments regarding this new information."  

In November 2011, a "Form A" was filed by a newly-formed nonprofit corporation, UPE, which sought approval for change of control of Highmark and its insurance subsidiaries.

Written comments on Highmark's filing should be directed to:

Robert Brackbill, Chief, Company Licensing Division
PA Insurance Department 
1345 Strawberry Square 
Harrisburg PA 17120 
Fax: 717-787-8557 
rbrackbill@pa.gov

Comments received as part of the public record are available on the department's website. Additionally, all comments received are forwarded to Highmark for appropriate response. Those responses are also made available on the department's website at www.insurance.pa.gov.

Tips to Buying Homeowner Insurance

Shopping for homeowner insurance is one of those nagging home buying details that sometimes manages to slip though the cracks. It’s not unusual for insurance agents to receive last-minute frantic phone calls from title and / or escrow companies requesting a home insurance binder. To save yourself trouble, it’s a good idea to start shopping for a homeowner policy as soon as your purchase offer is accepted. Here are a few tips about buying homeowner insurance that are designed to save you time and money:

Determine Insurability

Your insurance agent needs extensive information from you to quote you the best rate for your policy. To determine insurability, an agent will ask:

• When was the home built?
• How old is the plumbing and electrical?
• What type of roof?
• What’s the square footage?
• How many claims have been filed over the past 5 years?
• Where is the home located?

If the home is located in a rural area without a nearby fire department or there is no fire hydrant on the street, some companies may refuse to insure it. In that case, you may have to inquire at a specialty or surplus-lines company, and this quote will take longer to obtain.

Deductibles

You can save money by having a higher deductible on your policy. Typically, insurance companies will start giving discounts at a $500 deductible and increase the discount as your deductible increases. Most companies offer deductibles up to $10,000. Be careful, however, because many mortgage companies will not allow you to exceed a $1,000 deductible, so check with your lender before opting for a higher deductible.

How Much Insurance Do You Need?

Most agents use a cost estimator to figure cost replacement estimates. This will ensure that your home is insured for the correct amount. Insurance companies do not insure dirt. If you buy a home that includes a large lot, do not be astonished when you receive an insurance policy for a lot less than what you paid for the home. This is because you are buying coverage for the home and not the land.

In the past, replacement coverage was called Guaranteed Replacement Cost. There is no such coverage anymore. Today it is Replacement Cost Coverage, which means each insurance company designates a percentage of additional coverage on top of the insured amount. This is designed to protect the homeowner who has suffered a loss from having to pay additional construction costs to rebuild. It can cost more to build because of inflation or simply because material prices have increased. For example, if the dwelling coverage is insured for $300,000, and the company has 125% replacement cost coverage, the homeowner would receive an additional $75,000.

I recommend 200% replacement cost coverage, which gives homeowners double the coverage.

Policy Options

You have other choices on your home insurance policy that you can tailor. Liability coverage is a part of your homeowner's insurance policy that is often overlooked. This protects the insured against claims arising from bodily injury and property damage to others. For example, if your five-year-old was playing with matches and set your neighbor’s house on fire, your liability coverage would pay for this damage. You might have to move out of the neighborhood, but your insurance policy would pay your neighbor.

It is common to see $300,000 in coverage for liability, but the cost to raise it to $500,000 is about $20 more a year. You can have up to one-million coverage on most policies. Over that, you need an excess liability policy or “umbrella” policy. Umbrella policies give you an additional $1,000,000 liability coverage for a $300 to $500 premium.

Available Discounts

Make sure that you are getting all of the credits for which you are eligible. If you have an alarm system that reports to a central station (a company such as Brinks or ADT), in some cases, you can get up to a 10% discount. If you are over 50 and care to admit it, you may be eligible for a discount. Companies have different names for age preference policies, from senior discount to mature policyholder discount.

The most common discount is the multi-policy discount. This will save you money on your home and auto insurance. By combining the two policies with the same company, you are given a certain percentage discount on both. the percentage discounts vary among companies, so it’s best to shop around.

Review Your Policies

Call your agent and review your homeowner policy at least every three years. Needs change, markets change and coverages change. You should stay up-to-date on your insurance because you never know when you will need to rely on it.

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5 Car Insurance Tips

How much you pay for auto insurance depends o­n several factors, including your age and marital status, where you live, and what you drive. You can't do anything about your age, and few people will move just to lower their insurance premium. You can, however, choose a vehicle that costs less to insure.

In this article, we'll give you all of the helpful tips you need when getting car insurance.

1. Know Your Coverage Types

What is your car insurance actually insuring? Although you're buying a single insurance policy covering a specific vehicle, a number of components make up the final cost:

• Bodily injury liability: Covers injury and death claims against you, and legal costs, if your car injures or kills someone.



• Property damage liability: Covers claims for property that your car damages in an accident. Because liability coverage protects the other party, it is required in all but three states.



• Medical payments: Pays for injuries to yourself and to occupants of your car. This is optional in some states. In "no-fault" states, personal injury protection replaces medical payments as part of the basic coverage.



• Uninsured motorist protection: Covers injuries caused to you or the occupants of your car by uninsured or hit-and-run drivers. "Under-insured" coverage also is available, to cover claims you may make against a driver who has inadequate insurance. In some states, as many as 30 percent of drivers are uninsured.



• Collision coverage: Covers damage to your car up to its book value. Collision coverage carries a deductible, which is the amount per claim you have to pay before the insurance takes effect. The lower the deductible, the higher the premium. While it is legally optional, a lending institution or leasing company usually requires collision coverage.



• Comprehensive (physical damage): Covers damage to your car from theft, vandalism, fire, wind, flood, and other non-accident causes. Comprehensive also carries a deductible.

2. Your Vehicle Affects Your Premium

­Y­ou might want a sports car or a fancy SUV, but your insurance company may charge you more to protect you while driving it.

Insurance premiums are based partly on the price of the vehicle, which affects the replacement cost if it is stolen or "totaled" in an accident. How expensive the vehicle is to repair -- including parts and labor -- can also affect the cost. In addition, surcharges may apply to vehicles that are frequently stolen or involved in accidents.

Industry-wide information on injury claims, collision repair costs, and theft rates by vehicle model is available from the Highway Loss Data Institute (HLDI). You can write them at 1005 North Glebe Road, Arlington, VA 22201. HLDI is affiliated with the Insurance Institute for Highway Safety (IIHS).

According to HLDI, the lowest injury claims are from large vehicles -- cars, pickup trucks, and sport-utility vehicles. Small 2- and 4-door cars have the highest injury claims. Small cars also are among the highest in collision costs, along with sports cars.

If you have your heart set on a sporty vehicle, you'll probably pay dearly. Insuring a high-performance car can easily cost two or three times the insurance amount for an ordinary model.

Sport-utility vehicles, the hottest market segment, often have higher insurance rates than mid- and full-size cars, but some SUV models are relatively cheap to insure. SUVs are "hot" for other reasons: They are among the most frequently stolen vehicles, and they are more expensive than most cars. Cadillac's Escalade is currently the most popular model sought by thieves, but it's followed by the Nissan Maxima sedan. SUVs also can cost more to fix after an accident if the 4-wheel-drive system is damaged.

However, insurance companies set rates based on their own experience. If Company A has more collision and theft claims for a particular vehicle than Company B, then A will charge more for the same coverage. It all boils down to a company's actual experience with a particular vehicle or category of drivers. That is why it pays to shop around for insurance.

3. Who You Are Affects Your Premium

Factors that you can least control may have the greatest impact on your insurance costs. Your age, gender, and driving record are key factors that affect your insurance premium.

Single males under the age of 25 pay the highest rates. Statistics show they are involved in the most accidents, so insurance companies charge young men higher premiums than women of the same age. Married men, who statistically have fewer accidents, pay less than single men. A handful of states do not allow rates based on sex or age, but that prohibition has tended to result in higher rates for women, not lower rates for men.

If you are convicted of moving traffic violations or of causing an accident, your premiums will likely go up, no matter what your age. Drivers with clean records -- no tickets, no accidents -- pay the lowest rates.

Where you live also plays a big role in how much you pay. Urban areas, with their greater population densities and heavier traffic, get higher rates than rural areas. According to the Insurance Information Institute, the average insurance expenditure in mainly urban New Jersey -- traditionally the most expensive state -- in 2002 was more than double that of North Dakota, a rural state with the lowest average premiums. High costs in states such as Florida, Massachusetts and New York are attributed to growth in fraud and theft.

In most states, too, insurers set rates by zip codes. If you live in a major city like Chicago or Los Angeles, you will probably pay more than if you lived in a nearby suburb.

4. Decide How Much Coverage You Need

While it is dangerous to be underinsured, having too much insurance can be an expensive mistake as well. Without insurance, your property is put at risk in an accident that is your fault. The minimum amount of insurance required in your state is seldom enough.

State law may require as little liability coverage as $15,000 per person, $30,000 per accident, and $5000 property damage. About half of the states require $25,000 per person and $50,000 per accident. Half of them require $10,000 in property damage coverage. If you can afford it, buy more than the minimum. After all, $10,000 for property damage may not be enough if you hit a $100,000 Mercedes-Benz.

The more assets and income you have, the more insurance you need. Most insurers recommend liability coverage of at least $100,000 per person, $300,000 per accident, and $50,000 property damage if you have assets to protect, such as a house. Some insurers also recommend a $1 million "personal liability umbrella" policy issued in conjunction with homeowner's coverage. State Farm reports that such coverage averages $270 a year, but the amount varies significantly depending on location and other factors. An "umbrella" policy could protect a family from financial ruin in a major lawsuit.

Like buying a car, there is no single best solution when it comes to buying insurance. Rates vary widely. Surveys suggest that you could pay anywhere from $500 to $2000 annually for the same coverage from different companies. Shop for insurance by consulting two or three of the largest insurers, such as State Farm and Allstate. Then, contact one or two independent agents who can quote premiums from more than one company. In addition, there are direct-marketing companies, such as GEICO and Progressive, which do business over the phone rather than through agents and offer some of the lowest rates. Ask for an itemized list of coverages and costs.

"We're price-competitive," said spokesperson Dick Luedke of State Farm, whose rates dropped somewhat during 2004. But with so many factors involved in setting rates, it's wise to check several prospects.

In 2004, the average price of auto insurance nationwide was $871, according to the Insurance Information Institute. They expected that the cost of auto insurance would rise by 3.5 percent in 2004, which would be the smallest increase in four years.

Don't forget the Internet. Many companies now offer online quotes, and insurance shopping on the Web allows you to compare rates from multiple providers in the comfort of your own home.

5. You Can Reduce Your Premiums

­The biggest difference you can make is to buy a vehicle that qualifies for a discount or at least doesn't carry a surcharge. Ask your insurance agent about the cost of insuring vehicles you are interested in before you make your purchase decision. Here are several other ways that you can save money on your car insurance:

• Most companies give a break to those who drive less than 7500 miles a year. If you take public transportation instead of driving to work, your premium will go down. Out of the question? Try carpooling.



• Make sure you get all the discounts you are entitled to. You might qualify if your vehicle has an alarm, for example. Discounts used to be given for such safety features as airbags, but they're fading away as those items become more commonplace. Discounts might also be available if you insure your vehicles and your home with the same company. People who pass a defensive-driving course or don't smoke or drink often get discounts.



• Review the status of all the drivers in your family with your agent. Most discounts apply only to one portion of the policy, so don't expect dramatic savings.



• Increase your deductible for collision and comprehensive. Switching from a $100 deductible to $1000 can reduce the collision portion of your premium by 30 percent, said Luedke. You'll still be covered for catastrophes, but you foot the bill for fender-benders. Also, think twice about filing small claims with your insurance: Why risk a premium increase?



• Shop around. Instead of just renewing, study the fine print of your policy to see if its terms -- or your situation -- have changed. Another company might have better rates, but you won't know unless you shop. Most insurers give rates over the phone and many via online computer services, making it easy to compare premiums.



• Drop collision coverage on older cars. Claims are limited to "book" value, so you're not likely to get much anyway if you car is more than seven years old. A good rule of thumb is to drop collision when the annual premium reaches 10 percent of your car's value.



• Be a good driver. Avoid accidents and traffic violations and you will be rewarded with good-driver discounts. Bad driving is expensive. The "safer you can be" on the road, Luedke said, "the lower your premiums."



• Drop coverage for such extras as towing costs or the expense of renting a car while yours is in the shop. The savings are probably small, but your new-car warranty's roadside assistance provision may provide them at no cost.



• Have your teenager share the family car instead of owning his or her own. Be sure to tell your agent if your son or daughter makes the honor roll or moves away to college. Both qualify for discounts with most companies.



• If your group health insurance provides generous coverage, consider dropping the medical-payments portion of your policy.



• Keep your credit rating healthy. A growing number of insurers are considering a person's credit score when setting rates.

Source

Autoinsurance.com: Usage-Based Auto Insurance Race Heating Up

Los Angeles, CA (PRWEB) July 20, 2012
Sprint announced Thursday that it is offering a trial run for use of its technology suite to insurers seeking to establish usage-based insurance (UBI) programs, further complicating an already crowded fight among auto insurers who are capitalizing on an increasingly popular coverage option, according to autoinsurance.com.
Sprint’s Integrated Insurance Solutions(IIS) employs a “cloud-based system” that collects driver data that can be analyzed by auto insurance companies for rating purposes and presented to policyholders so that they can review their habits on the road. The system utilizes the telecommunications giant’s nationwide 3G network to transmit the data.
Sprint is offering IIS as a three-month “jump start” program to all insurers.
The offering is the latest in the arena of UBI, which bases coverage rates on a motorist’s habits behind the wheel and other driving data. For example, frequent hard braking can run up costs, while the opposite can lead to discounts.
IIS technology was tested in a pilot program in Arizona through a partnership with Esurance,accor ding to a Sprint statement.
Esurance recently launched its first UBI program in Texas “based on the success of that program,” adding yet another player in the race between insurers for the most-effective UBI program.
The company's offering a fully established network for driver monitoring could make it much easier for more insurers to offer usage-based discounts. Progressive already has its usage-based program, which it developed on its own, available in about 80 percent of the country.
Last week, Progressive announced that its UBI program, called Snapshot, would be open to policyholders at competing insurers as a one-month trial. Participants who test-run the program will be able to review their possible coverage savings before deciding if they want to switch insurers.
Progressive’s Snapshot has long been the largest UBI program in the market but has since seen competitors’ offerings edge into its territory.
In May, State Farm announced a partnership with Ford in which cars equipped with the automaker’s SYNC connectivity systems will be able to enroll in its UBI program. Under the partnership, such vehicles will be ready to participate in State Farm's Drive Safe & Save upon purchase.
The burgeoning UBI market has also produced some nasty competition. The Hartford and State Farm are currently facing a lawsuit brought by Progressive, which alleges that it is "suffering from the effects" of patent infringement.
Copyright:(c) 2012 PRWEB.COM Newswire

Source

Replacing Misguided Health Care Law Begins with Repeal

Last week, the House voted on a bipartisan basis to repeal President Obama's misguided health care law. I voted in favor of repealing the law for five reasons.

First, it increases the cost of care. The non-partisan Congressional Budget Office found that the law will actually increase health insurance premiums for families by $2,100, in direct contrast to the President's campaign trail promise that his plan would reduce premiums by $2,500.

Second, it would cause twenty million Americans to lose their employer-sponsored health insurance according to the non-partisan Congressional Budget Office. The Obama Administration's own Department of Health and Human Services estimates that 80 percent of small businesses and 64 percent of large businesses will discontinue offering health insurance to their employees.

Third, it interferes in the doctor-patient relationship. The law creates 159 new boards, offices, and panels within the federal government to make health care decisions for individuals.

Fourth, it piles more debt on our children and grandchildren. At a time when we already borrow 40 cents on every dollar the government spends, the law would add another $1.8 trillion over the next decade. We do not have the money.

Fifth, it is a job killer. The Congressional Budget Office estimates that nearly 800,000 jobs will be lost because of Obamacare. As last week's jobs report made clear, we cannot afford to further erode the employment situation.

While I remain committed to repealing this misguided law, we must work to reform the underlying problems in our health care system. As opposed to the divisive politics and underhanded tactics used to enact it, we should come together and put our best ideas forward to replace the law.

To this end, I have cosponsored reforms that would:

Enact Medical Liability Reform

Sensible tort reforms would cut back on unnecessary tests and procedures that are only ordered to defend against frivolous lawsuits, saving patients time and irritation while saving all of us money.

Allow Interstate Competition for Health Insurance

Allowing Americans to buy the same plans available to residents of other states would increase competition and help reduce costs while providing more choice.

Source: http://insurancenewsnet.com/article.aspx?id=350541