Thursday, December 25, 2008

More bad news...or not? GMAC cuts loans based on credit score

Over the years General Motors dealers have been able to count on GMAC, the lending company owned in part by GM, to provide loans to car buyers at their dealerships. 

Before the economy started its nosedive, GMAC-originated loans provided financing for almost half of GM car buyers. But now that the company is concerned about stability, GMAC is cutting back on who it will give loans to. In a letter dated Oct. 13, it announced to all GM dealers that it would no longer make vehicle loans for anyone with a credit score below 700, this coming on the heels of previous cuts which have already cost GM 10,000 buyers a month.

Any move to tighten up credit restrictions by a major corporation will affect parties in different ways; we are going to look at how it will affect the major players below.
GMAC
Consumers
Dealers
Banks and Credit Unions
GMAC isn't alone in toughening up loan requirements, and even if the move costs dealers a few sales, there's nothing wrong with this decision. In Fact, I'm encouraged to see another company shoring up its borrower requirements to put the company on better financial ground. I think everyone can agree that we don't need to see another lender fail, especially one in which an automaker owns a large portion! Times are already hard enough for GM without its lending arm going under.

From a consumer standpoint, all I have to say is, "So What?" Financing your vehicle through the dealer is hardly the best way to pay for your new car. In many cases credit unions and local banks are still offering credit to those with decent scores and can meet or beat the dealer's terms. Just because GMAC is cutting back doesn't mean you can't get a car at all, although you should ask yourself if it's really necessary to buy one if your finances are already that tight. If anything, this may tilt the deal in your favor since dealers will be trying to make up for lost sales. At the very least it removes the shell game of the dealer financier claiming you're in the 550 range and having his buddy pull some strings to get you approved at the 600 credit score.

From an individual dealer standpoint, this kind decision has to hurt big time. Many dealers are already carrying inventories on unattractive gas guzzlers, and fighting for a shrinking pool of buyers can't be welcome news for sales staff. Even though they will still be moving cars for buyers who finance through another lender, the dealers are sure to miss out on money made on loans they originate. When you couple this with the fact that in the same letter GMAC cut bonuses for high volume dealerships, it becomes evident that dealers are in for even tougher times.

Thankfully, at least one business stands to win in this shake-up as consumers in many cases still need cars and will pursue financing at local banks or credit unions. Locally, credit unions and community banks are stepping in to fill the auto financing void, and while you still need a decent credit history, you may have slightly more leeway in securing a loan due to these hometown institutions factoring in your character.

Either way you look at it, this move to tighten lending restrictions is a mixed bag for the economy; sure more sales would seem to give a boost overall, but if a GMAC becomes the next federally-owned lender, I think that markets would suffer more than they will from fewer sales. If you do plan to buy a car soon, be sure to check out all of your financing options, and make sure you pull your own credit score to see what rate you should be getting. Finally, before you go, find out when the real best time to buy a car is, straight from the dealer's mouth.

The best time to buy a car: it's not when you think

So I was at a dealership yesterday, gritting my teeth, not bothering to pretend to be happy about buying a car.

We needed a second car. My ancient wreck of a vehicle died last month, or came close to it, anyway, when smoke started pouring out of my engine and the rear of the car as I zipped along the highway. I was able to make it to a mechanic but was told it would cost $3,000 to repair the engine, and so we told the car doctor not to resuscitate. Still, I didn't want to be here, since I've been here before: in the land of car payments. I had only paid off my car, which I bought used several years ago, about a year ago. And now, as interest scores are skyrocketing, we were here again.
Anyway, at some point, my wife and kids were off getting fast food while I discussed financing options, and the sales guy and I made polite small talk, and at some point, this Cincinnati-based car salesman, an affable man named Bob Freihofer, offered a car buying tip that I thought was particularly interesting.

Freihofer said -- and I have no reason to doubt him; he knew he had us as a customer, and he didn't know he was being interviewed until after we talked, when I asked if I could quote and attribute this information to him -- that the best time to buy a car isn't at the end of the month, as everyone believes.

Why is that? "Because everyone believes it's the best time of the month to buy a car," said Freihofer. Everyone has read that salespeople are desperate to fill a quota, and so you can always get a good deal. And while you may get a good deal, because everyone shows up at the end of the month, salespeople aren't feeling all that desperate to get cars off the lot. This is the period of work where they can somewhat relax. They know that they're going to find a customer to buy a car.

The best time to buy a car is really at the beginning of the month.

Why is that? "Because it's a very slow time," said Freihofer. If you want to find a salesman who is desperate for a customer and will bend over backwards to make a deal, so they can earn a living and pay for their kid's braces, go visit at a time when the dealership is something of a desolate wasteland. You'll be treated like royalty.

Death Benefits

A death benefit is the payment you receive as a beneficiary of a life insurance policy. The death benefit may be paid as a lump sum or annuity.
If you receive an annuity, the amount you receive may be either a fixed or variable annuity.
A death-benefit annuity may include a cost-of-living adjustment (COLA) to protect against inflation. In most cases, a death benefit is paid monthly. 
The amount of death benefit and period that you receive it are explained in the terms and conditions of the life insurance policy. If you are a senior citizen and qualify for Social Security, you are also likely eligible to receive Supplemental Security Income (SSI). For more information, see the Web site of the U.S. Social Security Administration (SSA). 
You should also check on what portion of income earned from the proceeds of a life insurance policy is taxable. In general, most of the death benefit is treated as nontaxable income. However, the portion that the IRS determines is interest income earned on the policy is considered taxable. For more on taxation of proceeds from a life insurance policy, see IRS Pub. 525: "Taxable and Nontaxable Income."
(Note: This document is in Portable Document Format (PDF). If you do not have a PDF reader installed on your computer, you can download a version of Acrobat Reader for free at Adobe Systems' Web site.)
The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax adviser.

Whole Life Insurance

Whole life insurance is also called ordinary or straight life insurance. With whole life insurance, you pay a level premium over the life of the policy. The amount of your death benefit is also fixed.
Similar to other forms of permanent life insurance, whole life insurance builds up cash value in a tax-deferred accumulation fund. You can withdraw or borrow against the cash value. Unlike universal or variable life insurance, the cash value of a whole life policy is not used as a reserve to pay premiums.
Instead, whole life insurance policies pay dividends to policyholders if premiums are excessive. A dividend from a life insurance company is a return of premiums. Unlike a dividend earned on a stock or mutual fund, it is not a company's distribution of profits. Dividends can be used to pay future premiums.
The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax adviser.

Health insurance concept that's worth thanking God for

I've been struggling with the decision of whether or not to buy private health insurance now that I'm a freelancer and not an employee with cushy benefits. I have 30-some more days to make the decision before the 60-day magic window closes, and I was just introduced to a concept I'd never encountered: a Christian health cost sharing program called Medi-Share.

The program works like a private insurance company in that members pay a monthly amount and the risk is spread among many. However, the cost is called a "share" and is much less than almost every other private insurer's premium; most families pay around $173 a month. The "catch" is that the organization requires its members to be active members of a church, sign a statement of faith, and (here's the biggy) promise that they don't abuse alcohol or drugs, or smoke (and haven't for the past 12 months).

Sadly, the program won't work for me, as my husband has been flirting with a cigarette habit since he's been in the Army Reserves (darn you military and your tobacco products!). But the concept is brilliant; why shouldn't people only pay for the sins that they, themselves, commit? Our insurance system has the healthiest and most disciplined of us sharing the cost for those who choose to live on Cheetos, Big Macs, and Bud Light. It's hardly a just reward for my miles of biking and long hours making nutritious food for my family that I should have to pay the same amount as a family whose dinner revolves around a drive-through. I don't judge you for your choices: I just don't want to have to pay for them!

I think the healthy-lifestyle medical cost share plan is such a good idea, it should be replicated for those who may not subscribe to the same faith but who commit to some common beliefs about food, exercise, and lifestyle. We can't legislate good health, but we should be able to get rewarded for having it!

Saturday, December 20, 2008

auto insurance quotes....Tips to Save on Car Insurance

Car insurance can be a confusing subject, especially if you have never held a policy before. Even experienced drivers often find themselves struggling to make sense of the fine print that comes with each auto insurance quote option. Between deductibles, co-pays, taxes and special provisions, it can be difficult to determine where your best chance of saving money may be hiding. Making matters even more confusing is the fact that most insurance companies calculate their own rates and premiums based on complex algorithms that take hundreds of factors into account. Thankfully, there are some simple trends you can use to guarantee lower rates across the board when obtaining auto insurance quotes.

The most important determining factor for car insurance rates is your driving history. Drivers who have been involved in frequent collisions or damage will inevitably see higher rates than those with spotless paperwork. One fender-bender should not be seen as a death sentence for your bank account, however – most such incidents lose their punitive value over time, and by law all driving records renew every seven years. That means if you stay within the speed limit and avoid moving violations of any kind, you will see your rates improving within a couple years.

Many drivers are surprised to learn that credit scores make a significant difference as well. This makes sense when you consider that insurance companies are essentially betting on your overall responsibility, especially your ability to meet those annual payments. Good credit can translate readily into discounts of 20 percent or more – no small amount when you consider how many insurance policies represent car owners' single biggest expense each year.

Insurance companies also tend to factor neighborhoods into auto insurance quotes, and with good reason. It is a simple statistical fact that cars tend to be damaged and stolen more often in high-crime areas, and most insurance companies require protection in the face of such elevated numbers. Moving to a better area can have an instantaneous effect on your premiums, even if everything else about your life remains essentially the same.

Of course the car is an essential component of auto insurance quote calculations as well. Newer cars and more expensive cars will cost more to insure and maintain over time, while older makes and models tend to represent far less expense. There is some truth as well to the oft-cited legend that your car's color and amenities can affect the final tally. This is hardly prejudice or small-mindedness on the part of insurance carriers – red sports really do get into more accidents than gold minivans.

The best way to save on car insurance and receive the best possible auto insurance quotes is to do your homework and seek estimates from as many carriers as possible. Once you have all the data at your fingertips, you may be able to negotiate more favorable rates from your carrier of choice. One final note – if you don't yet have home insurance or life insurance, you may be able to get superior rates by combining multiple policies under one roof.

Wednesday, December 17, 2008

Renters Insurance Quotes

Get Competitive Renters Insurance Quotes in Just Minutes!

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Every day, InsuranceQuotes.com helps thousands of people just like you find quality coverage at a price that won’t break the bank. Get your free renters insurance quotes today—and discover opportunities to save big on renters insurance!

Why Do You Need Renters Insurance?

Many people who rent their homes think they don’t need renters insurance—isn’t that the landlord’s responsibility, after all? Actually, nothing could be further from the truth. Your landlord is obligated to carry insurance on the building you rent in order to protect his investment. But should a fire damage your rented dwelling, for example, your landlord’s insurance will not protect you against damage to your personal property, such as furniture, electronics, clothing, and other valuables.

That’s where renters insurance steps in. Whether the cause is fire, water or even lightning, renters insurance safeguards you against financial loss resulting from physical damage to your personal belongings. It also covers you if your possessions are stolen (even if they’re in your car). And if you are sued by a guest who is injured in your home, renters insurance may provide coverage for legal expenses.

Think your personal property isn’t worth the expense of insurance? Think again! Start by taking a thorough inventory of your possessions. List each item, when you acquired it, the price you paid, and what it would cost to replace it today. You may be surprised at just how much your belongings are worth. And considering that premiums run as low as $20 per month, can you afford not to carry renters insurance?

How to Shop Smart for Renters Insurance

If you’ve decided to buy renters insurance to protect yourself and your personal property, how do you go about selecting the right coverage and the best value for your circumstances? Start by learning what to look for in a renters insurance policy. Here are some important points to consider:

  • Deductible – You can save money on premiums by choosing a policy with higher out-of-pocket deductibles, but make sure the deductibles you choose are realistic for your financial means.
  • Actual Cash Value vs. Replacement Cost – If your policy stipulates actual cash value compensation for loss of personal property, the amount your insurer will pay for your loss is based on the amount you paid for the item, depreciated over the length of time you’ve owned it. Replacement cost coverage is pricier than actual cash value coverage, but it provides coverage based on the amount it will cost you to replace the item today.
  • Discounts – Many insurers offer discounts to non-smokers or for multiple policies (such as renters and auto). Be sure to ask your insurance company about premium discounts that may be available to you.
  • Other Tenants – If you will be sharing your home with a roommate or domestic partner, make sure you understand if and how that person will be covered under your renters insurance policy.

homeowners insurance........Evaluating Homeowners Insurance Quotes

Homeowners insurance is an absolute necessity to protect yourself against damage to or the loss of your home and its contents. Most mortgage lenders require some level of hazard insurance for your home, but you should always get additional homeowners insurance to make sure you are fully protected. When shopping for a homeowners insurance quote, it’s important to research the insurer, understand the policy, and choose the right amount of coverage. Policies vary from one company to another, so you should get a homeowners insurance quote from several different companies before deciding on one.

The first step in buying homeowners insurance is determining what level of coverage you need. Typically, you should insure your home for full replacement value of the property and its contents. A builder or realtor can help you determine the replacement value of your home. You should go through your home to inventory its contents and decide how much everything is worth. Keeping receipts for major purchases as well as taking photos and/or video of your belongings will help you in case you need to file a claim. Some homeowner's and renter's insurance policies insure the contents of the home for their depreciated value. This is not a good option because in the event all of your belongings are lost or damaged, you will not receive enough money to replace them. Make sure any homeowners insurance quote you receive specifically covers replacement of home contents. You may have to pay more for this feature. Be aware, however, that most policies cap the amount of coverage for your home’s contents at between 50% and 70%.

The goal when buying homeowners insurance or any type of insurance is to get the best coverage for the smallest premium from a reliable insurer. With so much competition in the insurance industry, you can find similar policies for a wide range of prices. Be sure to allow for variations in coverage when comparing prices between insurers. Pay special attention to how much coverage you are allotted for high value items such as electronics, jewelry, and artwork. You may have to add additional riders to your policy for such items, as some insurers will limit how much they will pay out for such things, and the limit might be less than the value of the items. Also, make sure the level of coverage for additional features such as liability and displacement are equal when comparing one homeowners insurance quote to another. You can save money on homeowners insurance by asking for discounts or increasing your deductible. Installing an alarm system in your home is one way you can qualify for a discounted homeowners insurance quote.

The cost of the premium is only one of the factors you should consider when evaluating a homeowners insurance quote. Equally important, if not more, is the reputation of the insurer. The cheapest coverage in the world means very little if you can never get a pay out on your claim. Rating companies like Standard & Poor’s, A.M. Best, and Moody’s all rate the financial stability of insurance providers, a crucial factor in how reliable the company will be when you need to file a claim. Additionally, you can look to consumer reporting agencies or ask the insurance companies themselves to determine average claims processing times. It’s worth it to go with a slightly higher homeowners insurance quote to ensure that when you need your claim processed, it’s done in a timely manner.

Homeowners Insurance Quotes

Life insurance is an integral part of any estate plan and an absolute necessity if you have any dependents. Luckily, these days it’s easier than ever for you to find and buy life insurance. The Internet offers many resources to get life insurance quotes and the tools to compare them. Some websites allow you to get multiple life insurance quotes with one application. Alternatively, you can still shop for life insurance with insurance agents and directly with the companies you are familiar with.

In order to get the best coverage for the best price, you need to comparison shop. It’s best to get several life insurance quotes from different companies and compare them. There are two different types of life insurance, and they are very different. Term life insurance is the most popular type of life insurance. Term life insurance is coverage that lasts for a specific term of years and then expires. Permanent life insurance, on the other hand, builds cash value and matures over time. Permanent policies combine insurance with an investment opportunity. When comparing life insurance quotes, it only makes sense to compare like policies, as many different variables go into determining a life insurance quote.

If you’re shopping for term life insurance, the most important things to consider are the cost of the premium, the length of the term, and the rating of the insurance company. Some term life policies have level-premiums, which means your payments will never rise over the length of the policy. Other policies have premiums that increase as you get older. The length of the term of the policy affects the cost of the premium. Policies with longer terms usually cost more because there is a greater likelihood of a claim being filed before the policy expires. You also have to consider if and when additional health examinations are required to maintain coverage. Should you become ill, you may not be able to renew coverage.

When comparing permanent life insurance policies, you also have to pay attention to the premium and the reputation of the insurer. A permanent life insurance quote, however, also has the added investment component that you have to consider. Some parts of permanent life insurance are guaranteed, and some are not. This can make it more difficult to determine which life insurance quote is better. There are several types of permanent life insurance. Whole life, universal life, and variable life are the three most common types. Whole life has the most guarantees, as the premium and minimum cash values and death benefits are guaranteed. Universal life has flexible premiums, however, though there is usually a guaranteed maximum premium. Variable life offers the most flexibility because the insured chooses the investments for the policy, but you cannot rely on a guaranteed cash value. Permanent life insurance is usually only recommended if you plan on keeping the policy for 20 years or more. Otherwise, there are better ways to invest your money and term life insurance will suffice.

No matter what type of life insurance you choose, picking the lowest priced life insurance quote you receive can be a big mistake. Not all insurance companies are made equal. Several companies including Standard & Poor’s, A.M. Best, and Moody’s among others all rate insurance companies based on financial strength and several other factors. These ratings will help you choose an insurer that will process and pay out claims in a timely fashion. Moreover, it’s important to choose a company that will likely remain in business for the duration of your policy.

life insurance quotes..........How to Compare Life Insurance Quotes

Life insurance is an integral part of any estate plan and an absolute necessity if you have any dependents. Luckily, these days it’s easier than ever for you to find and buy life insurance. The Internet offers many resources to get life insurance quotes and the tools to compare them. Some websites allow you to get multiple life insurance quotes with one application. Alternatively, you can still shop for life insurance with insurance agents and directly with the companies you are familiar with.

In order to get the best coverage for the best price, you need to comparison shop. It’s best to get several life insurance quotes from different companies and compare them. There are two different types of life insurance, and they are very different. Term life insurance is the most popular type of life insurance. Term life insurance is coverage that lasts for a specific term of years and then expires. Permanent life insurance, on the other hand, builds cash value and matures over time. Permanent policies combine insurance with an investment opportunity. When comparing life insurance quotes, it only makes sense to compare like policies, as many different variables go into determining a life insurance quote.

If you’re shopping for term life insurance, the most important things to consider are the cost of the premium, the length of the term, and the rating of the insurance company. Some term life policies have level-premiums, which means your payments will never rise over the length of the policy. Other policies have premiums that increase as you get older. The length of the term of the policy affects the cost of the premium. Policies with longer terms usually cost more because there is a greater likelihood of a claim being filed before the policy expires. You also have to consider if and when additional health examinations are required to maintain coverage. Should you become ill, you may not be able to renew coverage.

When comparing permanent life insurance policies, you also have to pay attention to the premium and the reputation of the insurer. A permanent life insurance quote, however, also has the added investment component that you have to consider. Some parts of permanent life insurance are guaranteed, and some are not. This can make it more difficult to determine which life insurance quote is better. There are several types of permanent life insurance. Whole life, universal life, and variable life are the three most common types. Whole life has the most guarantees, as the premium and minimum cash values and death benefits are guaranteed. Universal life has flexible premiums, however, though there is usually a guaranteed maximum premium. Variable life offers the most flexibility because the insured chooses the investments for the policy, but you cannot rely on a guaranteed cash value. Permanent life insurance is usually only recommended if you plan on keeping the policy for 20 years or more. Otherwise, there are better ways to invest your money and term life insurance will suffice.

No matter what type of life insurance you choose, picking the lowest priced life insurance quote you receive can be a big mistake. Not all insurance companies are made equal. Several companies including Standard & Poor’s, A.M. Best, and Moody’s among others all rate insurance companies based on financial strength and several other factors. These ratings will help you choose an insurer that will process and pay out claims in a timely fashion. Moreover, it’s important to choose a company that will likely remain in business for the duration of your policy.

life insurance quotes

Get Multiple Life Insurance Quotes in Just Minutes!

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When you’re ready to obtain life insurance quotes, simply complete and submit our simple, 6-minute questionnaire online. Since InsuranceQuotes.com has partnerships with over 100 of the nation’s top insurance providers, it’s easy to find the best value for your premium dollars. And once you get your free life insurance quotes, we can help you choose the coverage and policy you need, at a price that works for your budget.

So why wait? Join the millions who have saved up to 20% on their insurance premiums by shopping online. Collect and compare life insurance quotes from InsuranceQuotes.com today, and see how much you can save on life insurance!

Why Do You Need Life Insurance?

If the topic of life insurance makes you uncomfortable, you’re not alone. Although death is a certainty, thinking about our own passing or the passing of someone we love is always painful. Even so, if you have a spouse or children who depend on your income, you want the peace of mind that comes with knowing they will be okay after you’re gone.

The reasons for buying life insurance are as varied as the types of policies available, but they all boil down to one main purpose: financial protection for your family. Depending on your circumstances, the proceeds from your life insurance policy can:

  • replace lost income;
  • pay off debts; and/or
  • cover burial and estate expenses.

While only time can heal the grief that comes with the death of a loved one, life insurance provides one way for you to make sure your family’s needs are met should the unthinkable happen.

How to Shop Smart for Life Insurance Quotes

With so many kinds of life insurance available—and considering the fact that rates can vary as much as 50% among carriers—it pays to do your homework when shopping for a policy. Here are some things to keep in mind as you search for the best plan and most competitive rates:

  • Determine your family’s needs. If your children have left the nest or your spouse has a career or other income, and if you are relatively debt-free, your insurance needs will be less than if you have a large family and a stay-at-home spouse or carry a heavy debt load.
  • Learn about the types of insurance available. A cash-value policy may provide an investment component or allow you to borrow against its value. Cash-value insurance is more complex and more expensive than a term life policy, which simply provides a payout to your survivors at the time of your death.
  • Ask about the issuing life insurance company’s financial strength and its track record for processing and paying claims.
  • Lifestyle choices, such as smoking and drinking, can result in higher premiums. Your age and your health history are also a factor in premium costs.
  • If you can afford to, save money by paying the premium on your policy for an entire year. Monthly or quarterly payments usually carry a surcharge of around 5% or more.

Auto insurance quotes.....Things to know about Auto Insurance

How auto insurance companies come up with your premium can seem like a complicated formula. In truth, it is. However, that formula is based on some very simple principles. Auto insurance premiums, like most insurance premiums are determined by what type of risk factors you, the insured, have and what level of coverage you choose. Some of your risk factors are within your control, and some are not. Having an understanding of the risk factors that determine your auto insurance quote will help you get the best coverage at the best price.

An auto insurance quote is made up of different types of coverage. Liability coverage, comprehensive coverage, and collision coverage are the three main types, but there are additional types of coverage available.

  • Liability coverage covers the damages you are responsible for because of an accident. Most states require all drivers to have a minimum amount of liability coverage by law.
  • Collision coverage covers damage to your vehicle if an accident occurs.
  • Comprehensive coverage covers damage to your vehicle that is not accident related.

Both collision and comprehensive coverage are optional but strongly recommended. You should never settle for the minimum auto insurance coverage required by law. The more auto insurance you buy, the cheaper it is. That means you can get significantly more insurance coverage with just a small increase in your premium.

A number of different risk factors go into determining how much you will need to pay for auto insurance. Gender, age, occupation, driving record, type of vehicle, and where you live are just some of the factors considered when obtaining auto insurance quotes. Based on past accident and theft statistics, insurance companies use these factors to determine the probability that you will file a claim. For example, if you have a clean driving record with no speeding tickets, insurance companies feel like you are less likely to have an accident. Therefore, your auto insurance quote will be lower than someone who has one or more speeding tickets. In the same turn, it costs more to insure types of vehicles that are prone to accidents and theft.

There are a number of strategies that can help you get a lower auto insurance quote. For one, you can shop around. While most companies use similar methods to determine premiums, there is a lot of competition for your business in the industry. Premiums for the same coverage can vary by hundreds of dollars from one company to another. You can also ask for discounts. Many insurance companies will reduce your auto insurance premium if you purchase another form of insurance such as homeowners insurance or life insurance from them. Likewise, if you have anti-theft devices or additional safety features on your vehicle you may also qualify for a discount. If you need to lower you premium further, consider getting a higher deductible. Paying your premium in fewer installments can also save you money.

While switching policies can help you save, it’s important to never leave a gap in your auto insurance when you do. Before you cancel an auto insurance policy, make sure you have another one activated. That way you will always be covered, and you can avoid any penalties your state might impose.

Auto insurance quotes.....Things To Do When You're in a Car Accident

Getting into a car accident can be a traumatic shock to the system. Even if you aren't injured, the fear and adrenaline that inevitably accompany such an event can quickly cloud your judgment. It is for this reason that experts recommend preparing for such contingencies ahead of time, as you don't want to be faced with multiplying choices and confusion at the scene of the accident. The good news is that governing bodies in transportation have agreed on some basic guidelines you can use to make sense of such situations as they arise. Keep yourself prepared for any contingency and you may find such accidents become far more manageable.

The first priority in the event of a car accident is to get any injured passengers and yourself to safety. If the cars are still operating, that means turning on your hazards and moving everything to the side of the road. If you have lost such mobility, you will want to put cones or flares down the road to give the scene a wide buffer zone of safety. A number of car safety kits include such equipment as a matter of course, so it may be wise to look into a preventive purchase such as this.

Once the scene is secure, it is time to exchange information with other drivers. Resist the urge to make accusations at this point – the essential thing is to get the data you need so you can sort out the financial details later. Be sure and get the other driver's name, address, phone number, insurance company, policy number, driver's license number and plate number. You may also want to take photographs and create a written record of precisely what happened.

The next step is the police report. Again, you want to be as detailed as possible here, including any charts or diagrams you think might be illuminating. A number of drivers balk at this step of the process, hoping they can work out an independent payment scheme with the other driver and keep insurance out of the picture. In fact, such plans rarely go as one might hope, especially as other drivers may file their own reports without telling you. If you want to avoid lone liability or an exorbitant repair estimate, it is wise to protect yourself with a trail of paperwork from day one.

It is important as well to read your own insurance policy ahead of time, as a number of specific conditions may be required immediately after a car accident. Fast filing and ready compliance will likely save you money down the line. It's also useful to know what kind of services you can expect in the immediate aftermath of an event like this – some policies pay for towing, for instance, while others may not.

Good preparation and a level head are the surest ways to keep yourself safe, secure and protected following a car accident. Whether you have been in a wreck recently or simply want to plan for an uncertain future, smart preventive measures can save you considerable headaches down the line.

Friday, December 12, 2008

Insurance industry would get £70m boost from VAT cut

Cutting VAT to 15pc could save the insurance industry at least £70m a year, claims the Association of British Insurers (ABI).

Banks and insurance companies say a VAT cut to 15pc will provide them with a much-needed boost in difficult markets.

The finance industry, which is unable to recover a large proportion of the VAT it incurs, said the expected reduction from 17.5pc is a step in the right direction, particularly for the struggling banking sector.

The ABI said that the insurance industry incurred £495m in irrecoverable VAT costs in 2007 and this figure would have been £71m less if VAT was at 15pc.

"Effectively, if you charge VAT, you can recover it. Insurance companies incur VAT on property, expenses, office equipment and a number of other areas, but cannot claim it back," said Erfan Hussein, a spokesman from the ABI.

A spokeswoman for the British Bankers' Association added: "We welcome the move to reduce VAT. While there will always be an element of VAT which is unrecoverable we feel this is a move in the right direction.'

Richard Baxter, a tax director at Alvarez & Marsal Taxand, expects struggling banking companies to benefit from a VAT cut to 15pc.

He said: "A reduction in VAT to 15pc is a good idea as it will help banks and insurance companies, who are often able to recover only a very small amount of VAT. This will help reduce financial sector costs and will provide a small but much-needed boost in the current environment."

Insurance Payrolls Down as Economy Sheds Half-Million Jobs in November

Copyright: A.M. Best Company, Inc.
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U.S. insurance industry payrolls shed 1,500 positions in November, even as job losses in the broader economy topped 1.9 million in the past year, according to seasonally adjusted data released Dec. 5 by the U.S. Bureau of Labor Statistics.

Brit Insurance launches Professional Indemnity products

Brit Insurance Holdings has released a new set of Professional Indemnity products, Britbord PI.

The new product set is released on Britbord, the firm’s delegated underwriting system.

It has been developed to specifically cater for micro SMEs with a fee income up to £250,000, and contractors whose turnover exceeds £2.5m.

A broad range of trades numbering more than 140 are covered by Britbord PI, from accounting to insurance broking.

Brokers will benefit from the easy to use online ratings guide, which can be used for quoting and binding business.

In addition, it can also furnish the broker with all requisite documentation on the spot.

Britbord also has provision for office, retail and property owners’ coverage.

Brit Insurance steers safely through credit crunch

UK-based non-life insurer and reinsurer Brit Insurance has reported its results for the third-quarter with gross premiums for the first nine months of the year up 10.5%.

Gross written premiums for the nine months up to 30th September were £1.12 billion, compared to £1.01 billion for the same period in 2007.

Return on investments fared less well, with a loss of £11.8 million compared to a profit of £97.4 million during the same period last year.

Third quarter investment losses are responsible for this negative return on investments; investment losses for the three months ending 30th September were £13.9 million.

Brit’s exposure to the collapsed Lehman Brothers bank was a key factor in this loss.

The company estimates pay outs for hurricanes Gustav and Ike to be close to $100 million, net of reinsurance recoveries and reinstatement premiums.

Chief executive Dane Douetil said the company expects a ‘more positive rating outlook’ for 2009.

He added that the company is ‘confident’ about its long term future as it has steered a relatively clear course through the current financial storm.

Brit expects to benefit by picking up custom from insurers that have struggled during the financial crisis.

Nationwide offers 20% discount on home cover

Nationwide has launched a home insurance offer that gives a 20% discount to those purchasing combined buildings and contents cover.

The offer lasts until 31st July and the discount will be applied for a second year, if the policies are renewed jointly. New customers can save an additional 10% on the first year’s premium by applying online.

Buildings cover is unlimited for eligible properties and includes the cost of temporary accommodation, up to £1,000 for garden items and cover for student’s possessions while away at university or college.

The policy will pay out for the loss of music downloads and no fee is levied for paying monthly by direct debit. A number of other policy options are available at an additional cost.

The building society is also encouraging young people to get to grips with their finances early in life and has distributed copies of its Teenager’s Guide to Money to secondary schools and colleges across the country.

Monday, December 8, 2008

News....Insurance Regulators Commend Legislators For Opposing SEC Rule 151A

KANSAS CITY, Mo. (Nov. 25, 2008) — The National Association of Insurance Commissioners (NAIC) commends the National Conference of Insurance Legislators (NCOIL) for adopting a resolution in opposition to the U.S. Securities and Exchange Commission’s (SEC) proposed Rule 151A.


Equity-indexed annuities, as a form of fixed annuities, are currently regulated by state insurance departments. If the SEC adopts the proposed rule, it will begin regulating indexed annuity products as securities.


“This rule is not needed, and we thank our NCOIL colleagues for their acknowledgement and support,” said NAIC President and Kansas Insurance Commissioner Sandy Praeger. “We believe indexed annuities are insurance products — and that they should continue to be regulated as such.”


In a recent comment letter to the SEC, the NAIC’s officers outlined the extensive and ongoing regulatory initiatives taken by insurance regulators to oversee the sale of indexed annuities and other annuities.


“Insurance products — including indexed annuities — are subject to myriad state insurance laws,” Praeger said. “We have a strong record of consumer protection, and we do not believe this rule would be in the best interest of insurance consumers.”

About the NAIC

Headquartered in Kansas City, Mo., 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 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.

News....Insurance Industry Seeks Up To 70 Percent Rate Increase For Homeowners

Dec. 4--The North Carolina insurance industry has issued a rate increase watch for the state's coast, with a proposal to raise homeowner premiums by 42 percent to 70 percent in 18 counties -- including New Hanover, Pender and Brunswick -- next year.

In a report to a General Assembly special committee Tuesday, the N.C. Rate Bureau said it will ask for the increase when it files its rate plan with the N.C. Department of Insurance. The filing is expected next week, department spokeswoman Kristin Milam said Wednesday.

The proposed increases would amount to an average 19.5 percent statewide, though that figure would vary widely depending on location -- from 1.2 percent to 22.5 percent, according to Tim Lucas, personal lines manager with the Rate Bureau in Raleigh. The Rate Bureau collectively represents the insurance industry in setting rates.

The proposed increases will be 32 percent to 51 percent for beach areas, defined as those parts of the 18 counties that are east and south of the Intracoastal Waterway, Lucas said.

Any rate increase will face months of negotiations and typically come in lower than requested. But a premium hike next year would come on top of an average 25 percent increase in the coastal counties last year and a 15 percent increase in 2005.

Rate Bureau officials indicated that the proposed hikes are needed to stabilize the Beach Plan, a state-funded program aimed at providing windstorm coverage for coastal residents who cannot obtain it in the private market. 

The Beach Plan has been chronically undercapitalized, and a report commissioned by the Property Casualty Insurers Association of America and presented to a legislative committee in October, said that the plan has no more than $1.5 billion available to pay for hurricane losses and that a large storm could likely cost more than $7 billion.

"If a major storm hits and the Beach Plan does not have the ability to pay its claims, all homeowners across the state suffer," Robert Herlong, vice president and regional manager for the Property Casualty Insurers, said in the report.

Sharing the costs is a key issue in the battle over insurance rates and how they are applied in North Carolina.

State Rep. Bruce Goforth, D-Asheville, and a member of the legislative committee, told the Charlotte Observer Wednesday that the rest of the state would pay the insurance for the owners of beachfront mansions. "They've got the money to pay for the insurance. They should be paying," Goforth said.
But Rep. Danny McComas, R-New Hanover, told the Star-News that he has "had numerous conversations with (General Assembly) members in the western part of the state. 

"The fact does not escape me that most of the damages caused by hurricanes have been west of (Interstate) 95," McComas said Wednesday. He cited the effects of hurricanes and tropical storms on the interior -- from flooding in Asheville and Raleigh to Hugo's hit on Charlotte.

"It is appalling what is going on," he said of the proposed rate increases. 

The insurers report, however, said that the Beach Plan offers "low deductibles at rates far below what actuaries maintain to be appropriately matched to risk. North Carolina's 'plan of last resort' has become the first and only choice for coverage for many coastal homeowners."

It's not just barrier island residents who must turn to the Beach Plan.

"It's very difficult to get insurance through the private sector," said Donna Girardot, executive officer of the Wilmington-Cape Fear Home Builders Association.

"It's a ticking time bomb," Girardot said, referring to how N.C. Insurance Commissioner Wayne Goodwin has characterized the state of the Beach Plan. "But it's not the best step at dismantling the bomb now."

Girardot worried about the effects of a large insurance hike in the midst of a recession and a major housing slump.

"It's going to affect everyone who owns a home or wants to buy one. The market is slow already, and this is not what we need right now." Girardot said, adding that obtaining insurance is required in order to get a mortgage."

Girardot wonders where incentives or tax rebates might fit into solving the coastal insurance problem.

"As always I never ever see that word 'incentives' or 'tax rebates," or anything like that" in proposals for a fix. 

She pointed out that insurers do not offer premium breaks for people "who retrofit their homes or invest in putting in roll-down shutters when they build them."

McComas called the Beach Plan and homeowner insurance in general "a statewide problem. It's not a coastal problem. When you start finger-pointing, that's where the problems come from because nothing gets done.

"We need to work together to solve this. Roll up our sleeves and get to work."

This is a news service of Thomson Business Intelligence Service ©2006.

News...Health Insurance Trade Group Proposal Praised By Sen Kennedy

WASHINGTON -(Dow Jones)- A proposal unveiled Wednesday by the health insurance industry would provide universal health coverage and hack away at medical costs through an outside group, and it has seen initial praise from an unlikely source.

The proposal, offered by the America's Health Insurance Plans, or AHIP, trade group, comes on the heels of a universal health care proposal offered by Senate Finance Chairman Max Baucus, D-Mont., as well as pledges by Sen. Ted Kennedy, D- Mass., to move quickly on the issue in 2009.

The keystone of the AHIP proposal is a goal to reduce growth in health care expenses throughout the U.S. market by 30% - a target Ignagni said would reduce health care costs by more than $500 billion from 2010 to 2014.

AHIP's plan won a positive remarks from Kennedy, who figures to play a large role in the debate next year as chairman of the Senate Health, Education, Labor and Pensions Committee.

"There's a spirit of optimism about our work to ensure quality, affordable health care for all Americans - and today's announcement adds to that optimism," Kennedy said in a statement. "The insurance industry has advanced serious proposals that deserve serious analysis and consideration."

The proposal represents an opening salvo for insurers, who have by and large agreed that universal coverage is necessary, in the health reform debate. Importantly, their proposal builds on the employer-based health coverage system - an approach favored by President-elect Barack Obama and Sen. Baucus.

"We're trying to have early input into what I'm sure will be a process of many elements and compromises," AHIP President Karen Ignagni said Wednesday.

Large insurers in the AHIP trade group include Aetna Inc. (AET), Humana Inc. ( HUM), Wellpoint Inc. (WLP) and Cigna Corp. (CI) and UnitedHealth Group.

The AHIP proposal suggests that Congress set a five-year cost goal and that a "public-private advisory group" would do the work of finding ways to cut spending.

Not surprisingly, the plan doesn't supplant the role of private insurers by including single-payer elements. For those earning less than 400% of the federal poverty level, the plan would offer "refundable, advanceable tax credits" to buy private insurance.

Ignagni said Wednesday that, unlike Baucus' proposal, the insurers' proposal wouldn't require that individuals buy insurance. She cited "the economic disruption in the country and hearing very specifically not only from large businesses but small businesses" as the primary reason for not including such a mandate.

"We didn't think that now was the time to recommend an employer mandate," Ignagni said.

Other elements of the AHIP plan would create an "essential benefits plan" for individuals and small business to purchase high-deductible insurance for wellness and prevention as well as acute care, as well as expansion of the state children's health insurance program, or SCHIP, and a streamlining of Medicaid, the federal government's health-coverage program for people below the federal poverty level. 

-By Patrick Yoest, Dow Jones Newswires; 202-862-3554

Thursday, December 4, 2008

Insurance - Cash Value Or Replacement Cost

Ask 10 people which coverage they have, and 5 will probably say they don't know. If you are one of the latter, read your policy or call your insurance agent to determine whether you have cash value or replacement cost coverage. Payment from the insurance company will vary widely between the two.

No matter what type of insurance you have, if you can provide a list and photographs (personal property inventory) of your belongings, you'll receive a greater settlement than if you have no documentation to support your claim. In fact, the first thing you'll need to do is create a list for the insurance adjuster, usually room-by-room, of everything that was damaged, destroyed or stolen, plus when it was purchased and what it cost.

This information will be used to determine the amount of payment you'll receive from your insurance provider.

REPLACEMENT COST 
If you have replacement cost coverage, then you should have a favorable settlement when you file a claim. The insurance company will provide payment for the actual cost of purchasing a new, identical or similar item. They will REPLACE the item (once you provide them with a list itemizing your losses).

One exception to this statement is if you reached the limit of your policy. For example, your policy has a limit on many categories of items. Most have a jewelry limit of between $1000 and $3000. If you have a theft of $5000 worth of jewelry, your payment would max out at $3000 unless you have a rider on your policy to cover the additional amount.

Another exception would be if it costs less than the original purchase price to repair or replace the item. This is typical with electronics. A CD player that was purchased when they first hit the shelves cost a great deal more than what you would pay for one now. Your payment would be for the amount that one costs today, not what you paid for it.

CASH VALUE 
Also known as fair market value, the actual cash value takes depreciation into consideration. Most often the insurance company will use a formula to determine your settlement, based on the replacement cost less depreciation. Sometimes these numbers are also based on a combination of the adjuster's opinion after seeing the item (or a photograph) and/or assumed wear and tear.

To explain the depreciation formula further, let's consider the family room sofa, which has a 10-year life. You purchased it 5 years ago for $1000. A tornado destroyed your home and all the contents in it. Since the sofa is 5 years old, it has a depreciated value of $500 (50% of the expected life of this piece of furniture = 50% of the purchase price). This is the amount you'll receive when you submit your insurance claim. However, when you buy a like-quality sofa, let's assume it now costs $1300. Upon submitting your receipt to the insurance company, they will pay you an additional $800 ($1300 less the $500 you already received for the depreciated value).

Policies are different from company to company, and even from person to person. So, check with your agent to make sure you understand what type of coverage you have, and make changes accordingly.

Personal Property Insurance - Are You Properly Insured?

Homeowner's insurance policies are based on the value of the structure. It's quite simple to determine what the amount should be for the structure. But how do you know if your contents are properly insured?

Most insurance companies base the personal property (contents or possessions) coverage on a certain percentage of the amount for which your home is covered. That number is typically anywhere from 50% to 75%. So, if you have a home insured for $200,000, and you have coverage at 50% of your structure value, you would be insured for up to $100,000 for all of your personal property.

Is this coverage enough? Unless you have a receipt for everything you own, the best way to determine this is to compile a home inventory. Record your belongings room-by-room, the format preferred by insurance companies. Log the manufacturer, model numbers, serial numbers, cost and when purchase dates. If something is unique, additional descriptions are helpful. Take photos of full room views as well as close-ups of special items. Don't forget the exterior, garage and any other buildings on your property. This seems like a long, detailed process. If it's something you choose not to do, hire a professional inventory service provider. The cost is reasonable; usually approximately the cost of your deductible.

This inventory will give you a list of what you own and the estimated cost to replace the items if you should face a theft, fire or natural disaster. Once everything is listed, you can total the costs to determine the true value of your belongings.

Next, you'll want to check your policy to determine the limits that your policy stipulates. There are quite a few items that limit what the insurance company will pay out unless you purchase a rider. Some of these limits, the common ranges are:

- Jewelry: $1000-$3000 
- Guns: $1000-$3000 
- Silverware: $1000-$3000 
- Business Personal Property: $1000-$2500 
- Sports/Stamp Collections: $1000-$2500 
- Money: $200-$500

Do you have a lot of high-end electronics, expensive furniture or other household items that add up to more than your current policy? It might be in your best interest to purchase additional coverage.

If you have a large amount of jewelry, guns, collectibles, etc., you will want to purchase riders for those special items.

The cost of additional insurance is minimal compared to your potential loss. And if you haven't experienced a disaster after years of paying premiums, you can be thankful for your good fortune. The value of peace of mind cannot have a dollar sign attached to it.

Personal Property Insurance - Duties After a Loss

There is a great deal of uncertainty about what happens after one experiences a loss. Most people state that they just don't know how they are going to recover. For the coverage on the contents of your home or business, the personal property policy outlines what you will need to provide to receive your insurance settlement.

There is a standard verbiage in these policies. Under the Duties After Loss heading, you'll discover some statements that might surprise you, and of which you need to be aware.

One statement is that they have no duty to provide coverage if you fail to comply with their requirements. The requirements can be performed by you or a representative (an inventory service provider, for example).

You must notify your agent or the insurance company promptly. In the case of theft or loss, you must also notify the police.

If there is an investigation of your claim, you will be expected to cooperate fully. You'll be required to prepare an inventory of the damaged items, listing the quantity, description, actual cash value and the amount of your loss. Bills, receipts, appraisal forms and any other documents that support your claim will be requested.

A signed, sworn proof of loss will need to be submitted within 60 days after the insurance company's request. The proof of loss will state the time and cause of the loss, other insurance that may cover the loss, the inventory of the personal property.

Insurance policies vary. Check yours to make sure you understand what will be expected of you when you file a claim.

This shows why it's so important to have your personal property documented for your home and business prior to a disaster. Can you imagine trying to complete that task without a previously prepared inventory - especially when feeling overwhelmed due to the stress you'd be experiencing?

Personal Property Insurance - Duties After a Loss

There is a great deal of uncertainty about what happens after one experiences a loss. Most people state that they just don't know how they are going to recover. For the coverage on the contents of your home or business, the personal property policy outlines what you will need to provide to receive your insurance settlement.

There is a standard verbiage in these policies. Under the Duties After Loss heading, you'll discover some statements that might surprise you, and of which you need to be aware.

One statement is that they have no duty to provide coverage if you fail to comply with their requirements. The requirements can be performed by you or a representative (an inventory service provider, for example).

You must notify your agent or the insurance company promptly. In the case of theft or loss, you must also notify the police.

If there is an investigation of your claim, you will be expected to cooperate fully. You'll be required to prepare an inventory of the damaged items, listing the quantity, description, actual cash value and the amount of your loss. Bills, receipts, appraisal forms and any other documents that support your claim will be requested.

A signed, sworn proof of loss will need to be submitted within 60 days after the insurance company's request. The proof of loss will state the time and cause of the loss, other insurance that may cover the loss, the inventory of the personal property.

Insurance policies vary. Check yours to make sure you understand what will be expected of you when you file a claim.

This shows why it's so important to have your personal property documented for your home and business prior to a disaster. Can you imagine trying to complete that task without a previously prepared inventory - especially when feeling overwhelmed due to the stress you'd be experiencing?

Personal Property Insurance - Duties After a Loss

There is a great deal of uncertainty about what happens after one experiences a loss. Most people state that they just don't know how they are going to recover. For the coverage on the contents of your home or business, the personal property policy outlines what you will need to provide to receive your insurance settlement.

There is a standard verbiage in these policies. Under the Duties After Loss heading, you'll discover some statements that might surprise you, and of which you need to be aware.

One statement is that they have no duty to provide coverage if you fail to comply with their requirements. The requirements can be performed by you or a representative (an inventory service provider, for example).

You must notify your agent or the insurance company promptly. In the case of theft or loss, you must also notify the police.

If there is an investigation of your claim, you will be expected to cooperate fully. You'll be required to prepare an inventory of the damaged items, listing the quantity, description, actual cash value and the amount of your loss. Bills, receipts, appraisal forms and any other documents that support your claim will be requested.

A signed, sworn proof of loss will need to be submitted within 60 days after the insurance company's request. The proof of loss will state the time and cause of the loss, other insurance that may cover the loss, the inventory of the personal property.

Insurance policies vary. Check yours to make sure you understand what will be expected of you when you file a claim.

This shows why it's so important to have your personal property documented for your home and business prior to a disaster. Can you imagine trying to complete that task without a previously prepared inventory - especially when feeling overwhelmed due to the stress you'd be experiencing?

Personal Property Insurance - Duties After a Loss

There is a great deal of uncertainty about what happens after one experiences a loss. Most people state that they just don't know how they are going to recover. For the coverage on the contents of your home or business, the personal property policy outlines what you will need to provide to receive your insurance settlement.

There is a standard verbiage in these policies. Under the Duties After Loss heading, you'll discover some statements that might surprise you, and of which you need to be aware.

One statement is that they have no duty to provide coverage if you fail to comply with their requirements. The requirements can be performed by you or a representative (an inventory service provider, for example).

You must notify your agent or the insurance company promptly. In the case of theft or loss, you must also notify the police.

If there is an investigation of your claim, you will be expected to cooperate fully. You'll be required to prepare an inventory of the damaged items, listing the quantity, description, actual cash value and the amount of your loss. Bills, receipts, appraisal forms and any other documents that support your claim will be requested.

A signed, sworn proof of loss will need to be submitted within 60 days after the insurance company's request. The proof of loss will state the time and cause of the loss, other insurance that may cover the loss, the inventory of the personal property.

Insurance policies vary. Check yours to make sure you understand what will be expected of you when you file a claim.

This shows why it's so important to have your personal property documented for your home and business prior to a disaster. Can you imagine trying to complete that task without a previously prepared inventory - especially when feeling overwhelmed due to the stress you'd be experiencing?

Mobile Phone Insurance - Can We Live Without It?

When you purchase your new mobile phone or extend an existing contacts, many service provides will offer the option to purchase an insurance policy, typically costing around five pounds or there abouts. When looking at the fact that the latest mobile phones can cost hundreds if not a thousand pounds to replace and are very easily stolen, damaged or lost its vital that you get protected if the worse happens.

There are a number of steps that we can take to reduce the chances of it be stolen, simple ones like never leave it on the table, leave it in your car or any where it could attract attention to others.

When you lose your mobile phone and if you have it insurance you can get it replaced but you can not get your information back from within the mobile phone, whether its your kids pictures or business contacts it will be lost for good. So regularly update and backup your mobile phone into your computer.

If your phone is lost or stolen and you have insurance for your phone then it's important to notify the police, and contact your service provider too. The reasoning is to stop others from using your mobile phone and charging expensive amount of overseas calls, this can be done by transmitting a signal to switch your phone off and unable to be used again.

After submitting your claim to the police you will receive a crime number which can be used to claim back your mobile phone insurance. If everything is above board you will receive your replacement phone within a week, you may have to pay an excess of approx 50 pounds which will vary between different providers.

In general, your mobile phone will not be covered on your home contents insurance and with a high cost of replacement, having mobile phone insurance can cover and will save you hundreds of pounds.

Payment Protection Insurance Guide

What Is Payment Protection Insurance?

Payment Protection Insurance repays the balance of any debt under the plan in the event that the insured becomes ill, injured, unemployed, or dies. This type of insurance is broken down into 3 main parts (and typically separate policies must be purchased for each part), Credit Life Insurance, Unemployment Income Insurance, and Credit Disability Insurance. If the insured person dies before the loan term is finished the Credit Life Insurance policy will pay the remainder of the loan; while the Credit Disability Insurance policy will pay up to a specified amount of the loan if the insured becomes disabled and the Unemployment Income Insurance will pay out a cash benefit if the insured becomes unemployed.

The Payment Protection Insurance protects almost all kinds of personal debt, such as mortgages, personal loans, and credit cards. You can get this insurance when you apply for a loan as part of the contract.

Should You Get a Payment Protection Insurance Policy?

This form of insurance will protect your credit score and rating by making sure that your loan and credit card bills get paid on time if you are ill, disabled, or unemployed and can not work. Most companies pay up to 12 months on a claim they have accepted, though up to 24 months can be obtained in certain situations. This is a tremendous financial relief to your family. Also the Payment Protection Insurance Policy has a 30 day obligation free trial, should you decide that this policy is not for you within that time frame you will receive any premiums you have paid.

How To Apply For Payment Protection Insurance

To apply for the Payment Protection Insurance you must first meet the age requirements of being between 18 and 65 and be working at least 16 hours each week, or be self-employed for at least a year or currently have a long term contract. If you fit these criteria you can apply when you apply for your loan.

The advantage to applying at this time (for the life insurance and disability insurance portion - no medical exam is required for mortgage unemployment insurance is you will not have a long waiting time to get approved nor will you need to have a medical examination. Plus, as soon as your loan is finalized your insurance coverage will be available to you. Also your premiums will be part of the monthly payment you need to make for your loan.

It is possible to apply of this type of insurance anytime after your loan is closed, but if you wait longer than 30 days you will need to provide a doctor’s statement that you are in good health to obtain the coverage.

What Does Wedding Insurance Cover?

Having problems with the venue, vendors, weather, key people, sickness, or injury are the top concerns of couples when it comes to their wedding day. You will find there is a specified maximum amount, which can be claimed under each section, and also a deductible may also applies. Be sure to find out the details of your wedding insurance plan before buying.

* Venue: Check to find out if your ceremony and reception veue already has insurance. If it's not, then your wedding insurance can cover the costs involved due to unavoidable cancellation (such as damage or inaccessibility to the ceremony venue), if your reception hall is unable to keep to your reservation due to burning down, electrical outage, or just closed down.

* Vendor - they no show to your wedding, what if your cater orother importna vendors fail to turn up, a wedding insurace policy willocver any cancellation or postponement arising.

* Weather: Any weather conditions that will prevent the grom, bride or any relative whose presence at the wedding is essential, or even if uests can't make it due to adverse weather the insurance will cover rescheduling the wedding and all the necesssary details that come with it.ntal, and reception food.

* Sickness or Injury: Wedding insurance will also cover you if a key person, bride or groom become sick and are unale to atttend.

* Military or other Job: Military personnel may be shipped out to another country at a moments notice and wedding insurance cover postphonement due to rde or groom getting called up to service. This may aso apply to your comany job to if for instance your compnay relocate and you need to move too.

What does Wedding Insurance not Cover...

* A change of heart yeither party.

* Watches, jewelry, or semi-precious gemstones or pearls even if they are attached to clothing.

* Wedding rings may be covered by the policy but normally engagement ring is not.

You may Require Additional Coverage.

You may like to take out supplemental policies to defend against other damages incured by wedding-related items such as photography and gifts.

* Photography: Some insurance policies pay for you to retake the photographs after the fact if the photographer fails to appear or the original negatives are lost, damaged, stolen, or not properly developed. Some policies will pay to re-stage the event - with the principal participants so that pictures can be retaken. A policy may also pay for the costs incurred for rehiring a photographer, buying a new wedding cake, and new flowers, etc.

* Gifts: Regardless of how to wedding gifts are gven too you on the day, valuable items like gifts are something else you might want to consider insuring. Gift coverage pays to repair or replace non-monetary gifts that are lost, stolen, or damaged. You will have to submit a police report for any stolen gifts. The damage or theft is limited to a specific time frame as stated in your policy before or after the wedding in order for the coverage.

* Attire: This form of coverage pays to repair or replace the bridal gown or other special attire when it is in your possession and is lost, stolen, or damaged (including financial failure of the bridal store).

* Personal Liability: Personal liability covers injury or property damage caused by an accident that occurs during the course of the wedding.

* Medical Coverage: This covers reasonable medical expenses (up to the policy's limits) for each person who is injured during the covered events from a cause of loss, which would be covered by your personal liability.

* Honeymoon: This can cost as much as a new car at times. But before you buy travel insurance to protect your investment, see if your credit card covers you if your luggage gets stolen, your trip is delayed, or you have to cancel it. Certain wedding insurance packages include optional travel insurance for your honeymoon.

Make Sure That Your Insurance Coverage Grows As Your Company Does

A primary goal of new business owners is to keep operating costs low. At launch, they may not have a tremendous amount of risk or liability, and will only purchase the necessary insurance such as Commercial General Liability coverage and workers' compensation. Over time, as the company grows in size, profits and liability, many business owners don't take the time to reexamine their policies to ensure they have adequate insurance coverage.

Why Your Basic Coverage Might Not Be Enough

Typically, with Commercial General Liability policies, four types of claims are covered:

• bodily injury;

• property damage or loss;

• personal injury, such as libel or slander;

• advertising injury.

While commercial liability insurance is fairly inexpensive, costs for defending a claim are not. This is where General Liability comes in. This will cover all damages, legal fees and settlement charges up to the policy limits. General Liability is often packaged with Property coverage in a Business Owner's Policy (BOP).

BOPs are designed specifically for small- to mid-sized businesses that are classified as low-risk. It should include physical assets, such as office furniture and computers, and, in some cases it will cover loss of business income.

Consult with Your Broker - Update Your Coverage

It's important for business owners to periodically review their policy with their broker - particularly when the company experiences significant change or growth - this will ensure that the company is armed with the right amount of protection. Additionally, as the business climate becomes increasingly complex, so does the insurance needs of business owners.

Cover All Your Bases

In many cases, businesses have taken the proper steps to insure against property loss and injury claims - the more traditional forms of commercial insurance coverage - but may have overlooked protecting themselves against claims of negligence. Errors and Omissions (E&O) insurance, also known as Professional Liability insurance, protects organizations or individuals against claims of professional negligence throughout a variety of professional services.

Businesses dealing with global vendors will also want to consider an additional type of coverage: vendor insurance. In fact, some foreign companies will not even do business with a company outside of their country if they do not have this coverage.

Best Ways to Upgrade Your Small Business Insurance

Business owners can easily bolster their protection by increasing their Commercial General Liability coverage or by adding supplemental insurance to their existing Commercial Liability insurance policy. Types of supplemental insurance include:

• Auto/fleet insurance: Provides coverage for injury, damage or theft on company-owned vehicles, as well as for employees who may be involved in an accident while driving a personal car on company business.

• Business interruption insurance: Replaces normal business income when insured losses negatively impact a business's bottom line. In other words, it reimburses a company for lost income until the company is able to resume full operations.

• Third Party Fidelity/employee dishonesty insurance: Covers the cost of losses if an employee steals money, equipment or other assets from the business owner or one of the business's clients.

• Umbrella insurance: Provides additional coverage when a claim exceeds the limits of an underlying insurance policy.

Be wary of adding too much supplemental or umbrella insurance coverage; costs can begin to add up. Business owners should spend some time researching ways to lower their premiums. Often this can be done with a few simple steps, including, keeping duplicate records off-site; installing an alarm system; and researching the number of claims brought against companies operating within the same industry. If there are very few lawsuits, the business owner should present this information to their broker.

Risks and needs for coverage will vary. There isn't a one-size-fits-all when it comes to Commercial Liability insurance policies. It's important for business owners to make it a point to discuss their coverage with their brokers, and usually a good time to do this is when the policy is up for renewal.

Tuesday, December 2, 2008

Home Inventory For Insurance Purposes


I have found the best time to do this is right after the holidays. The house is 
clean and well decorated, and a lot of the items from the attic are already out 
on display. The fastest way to inventory your home is with video. Walk from room 
to room recording each room; open drawers and closets, as you record your items 
talk in to the video about when you bought the bigger and more expensive items 
and what you paid for them. Video your jewelry and silver service. If you can 
record the serial numbers and model numbers of your items, this will help verify 
exactly which model of the item you had for the insurance adjuster. If you are 
the victim of a burglary, the police can verify these items are yours if they 
are recovered. 


Once your inventory is completed, we recommend making a copy of the video, or 
burn it to a cd or dvd, and keep a copy off site. Keep it at the office, at a 
parent's home, a safe deposit box, anywhere where it can't inadvertently be 
thrown away, or lost in a fire at your own home.


After the inventory is completed, verify that the coverage on your homeowner, 
renter, or condo insurance policy has enough coverage to replace all of your 
items.


When you inventory the inside of the home, take pictures or video the outside of 
the home as well to document the condition and features of the home. 


One idea I heard about to protect your jewelry is to hide them in a pot in the 
kitchen cabinets. I was told by a jeweler that many burglars are now using metal 
detectors to find hidden metal items in peoples drawers and or mattresses. The 
kitchen has too many metal items for a metal detector to work efficiently. 


Unfortunately no one is completely safe from a thief. The truth is that if a 
thief really wants an item you have, they will find a way to take it. Our best 
advice is to insure the items and know they can be replaced.

Affordable Home Insurance -- Steps You'll Do Well Not To Miss

Everyone can enjoy high value home insurance without breaking the bank. The two things that are holding you from enjoying a better rate now are relevant information and a resolve to make use of the information you get. Following are a few steps that will help you reach this goal...

1. It's more expensive and needless to insure the land on which your home is standing. Those who ignorantly do this are paying a lot more than would do them any good. They just insure their house for its complete value without subtracting the land's cost.

If you made such a mistake, you need to review your home insurance coverage and go through it again with your agent. Lower your coverage to the cost of your home and its contents minus the land's cost.

This implies that you will spend far less on home insurance. No matter what you do and who you meet, don't forget that the only things you insure are things that can be stolen or destroyed and your land is not one of such.

2. Motion-sensitive lighting lowers your home's risk of burglary and, as a result, helps you get cheaper home insurance premiums. Burglars will avoid any place where their movement will be easily noticed. And motion-sensitive lighting does this exactly. Because thieves avoid houses with such lighting, you lower your home's risk of burglary and, consequently, your premiums.

3. Have special fire and security systems that alert fire stations, police stations or other monitoring center. Not only will you enjoy a huge discount, you will as well feel more secured once you remember that your home is always monitored. Depending on the insurer, this type of systems can get you discounts between 25% and 30%.

4. You'll get lower home insurance premiums if you obtain group home insurance. It's also good to verify from associations you belong to if they have any group discount from any insurer.

Though, before you use this option, compare the rates you will get through such an association with what you'll pay with another insurance company. You can get an insurance company that your association has no form of affiliations with that offers your profile a far lower rate. There's fierce competition in the home insurance sector and you can take advantage of this to get more affordable rates if you take your time to do extensive shopping and comparisons.

5. You will likely lower your rate if you take time out to go through your home insurance policy at least once a year or whenever things change in your house. That rare rug Aunt Molly gave you might not really be worth the $10,000 you insured it for at the moment. 

Reduce your coverage accordingly if it has dropped in value and this will help you save while maintaining adequate coverage. However, a review may show it's now a lot more valuable and that you have to increase coverage. The good thing, in spite of all, is that whichever it is you will be the better for it.

6. The most important step to considerable savings in home insurance is comparison shopping -- Given that you do it right. You can get quotes that will have a difference in excess of $1,000. You could quickly save so much by simply choosing the lowest quote. This should be the case if you're just after the lowest price. Nevertheless, if you're looking for the best value to price ratio then you would have to check the details of the lowest quotes. Different insurance companies may have adjustments for similar policies. It's important that you ask the agent what's included and what's excluded.Here are recommended pages for home insurance quotes...

What is Income Protection Insurance?

Income protection is an essential insurance for most people, but few realise this until it is too late. 
Even Oscar Wilde, who boasted no great knowledge of financial planning, was astute enough to observe: "It is better to have a permanent income, than to be fascinating."

In those days, anyone who agreed with such sentiments was unable to insure against the possibility of losing their income.

Nowadays, most people are able to take out income protection insurance, which pays out a regular tax-free income if you are unable to work because of long-term sickness or disability, making this type of insurance one of the most important.

Who needs income protection insurance?

No-one can guarantee that they will not be the victim of an unfortunate accident or be diagnosed with a serious illness.

Research by Munich Re shows that there is at least a one in four chance of needing to claim on an income protection insurance policy during one's working life.

The fact that you are down on your luck will not stop the bills from arriving or the mortgage payments being deducted from your bank account, so going without income protection insurance could be unwise.

If you with generous employers may be entitled to sickness benefits which can, in certain circumstances, extend right up when you retire.

But the majority of employees with long-term illness will find themselves having to rely on the state for support after three months of sickness or disability.

The exact amount of state help that will be available will vary according to factors such as your age, savings levels, number of dependents and housing needs, but you can be sure that it will never allow you to do anything more than subsist.

Income protection insurance, however, can enable you to receive benefit payments of up to around half your income while you are unable to work.

These payments will continue until you recover or, if you fail to do so, until the end of the policy term - which is typically your intended retirement date.

Widespread confusion

There is considerable confusion among consumers about income protection - possibly because of the various names used to refer to it. These include 'income replacement insurance' and 'permanent health insurance (PHI).

Insurance and Safety at College

Whether your children are already in college or will be soon, there are insurance and safety issues (yes, on top of everything else you need to think about!) that must be considered.

PERSONAL PROPERTY INSURANCE 
Most homeowners policies cover your children's belongings while they are gaining their higher education if they live on campus, are under the age of 24 and their legal address is your residence.

Many students choose to live off campus, and that creates a need for a separate renter's policy. Renters insurance is very inexpensive and a must when you think about how much they take with them (if you don't remember how much, wait until they bring it all back home!).

FIRE SAFETY 
Every year college and university students experience a growing number of fire-related emergencies. According to the USFA Fire Safety 101 Program, many factors contribute to the problem of dormitory housing fires:

- Improper use of 911 notification systems. 
- Hindered evacuation efforts - fire alarms are often ignored. 
- Evacuations are delayed due to lack of preplanning. 
- Vandalized and improperly maintained smoke alarms and fire alarm systems. 
- Misuse of cooking appliances. 
- Overloaded electrical circuits and extension cords.

Check with your college to ensure they:

- Regularly inspect fire and smoke alarms. 
- Have updated evacuation maps in the housing facilities. 
- Inspect exit doors and windows routinely. 
- Conduct fire drills and practice evacuation plans.

THEFT 
According to Colby-Sawyer College, theft is the most common crime on American college campuses. Being aware of your surroundings is an important part of crime prevention, especially in areas where thieves are most likely to strike such as academic buildings, residence halls, libraries, and parking lots.

Thieves will look for cash which is sometimes left unsecured. Bikes are a good target because either whole or in parts, they can be quickly removed from campus and sold. Books, stereos, CDs and tapes can be converted into fast cash.

SAFEGUARD YOUR VALUABLES BY PRACTICING THESE EASY TIPS:

- Keep doors and windows locked, even if you are inside the room sleeping or plan to be absent for only a short time. 
- Keep small, valuable items like cash, checks, credit cards, and jewelry locked in a safe place. 
- Do not lend your key(s) or give your lock combination(s) to anyone, even friends. 
- Do not prop open doors; this prevents unauthorized access to your residence hall. 
- Record your personal property, including serial numbers.

Understand the Conversion and Waiver of Premium and Disability of Group Insurance

As we mentioned in previous article, many corporations will offer competitive packages, and that's even a strategy in hiring and retaining employees. These competitive packages include group insurance to plans that provide individual retirement accounts or traditional registered pension plans, etc. In this article, we will the conversion and waiver of premium and disability of group insurance of group insurance.

1. Conversion of group life insurance

The law gives the employee the right to convert their group life benefit without evidence of insurability if

a) Application of employees must be made and premium paid within 31 days of termination of the contract or employment. 
b) Life insurance covers under old group insurance may be converted to any plan offered by the carrier including term insurance, whole life or other regular plans, indicated in the previous group contract. 
c) The amount of conversion the employee can not excess of the level of coverage they enjoyed under the plan. 
d) Premium payable is based on their attained age. 
e) Full life coverage is continued for 31 days without charged after termination of employment or of the entire contract. 
f) The converted policy will be dated 31 days from termination.

2. Waiver of Premium and Disability of Group Insurance

a) Total disability 
In case of a total disability prior to retirement, the group life premiums will be waived. Some contracts include a benefit whereby the premiums are waived and the face amount is paid out in equal annual installments over a period of time. 
b) Partial disability 
This allow for the continuation of coverage without further premium payments until age 65 or until the insured is no longer disabled. 
b) The insurance carrier may require periodic proof of the continuance of total disability at any time. 
c) If application for waiver of premium is denied, contribution of employee's portion must be paid.

Insurance Policies and Adjusters - Is the Insurance Company Trying to Cheat Me?

We've all seen the television ads. An attorney speaking to the camera tells the public, "Don't talk to the insurance company adjuster! Don't make any statement! Call an attorney!" Public adjusters tell claimants the same thing. Why? Are all insurance companies out to cheat their customers? If so, how do they survive selling insurance year after year and why in the world would anyone buy a policy from a company that cheats on its claims?

Understand that practicing law is a business. Attorneys want to make money, just like any other businessman. It is in the attorney or public adjuster's best interest to convince the public that policy holders cannot trust insurance companies.

The real underlying problem is that insurance policies are hard-to-understand contracts. That's right! Insurance policies are contracts. All those paragraphs and provisions that policy-holders never read...each is part of the contract and governs what will be paid, what will be denied and who or what is covered.

Since policy-holders don't pay much attention to what the policy actually states, they are often out-raged when a claims adjuster denies a claim. "I thought I was buying full coverage" the surprised home-owner cries. When the adjuster points to the contract that EXCLUDES coverage for the claim, they immediately think they are being cheated.

Many homeowners damaged in Katrina were shocked to find out that flood is not covered by homeowner's insurance. Now it doesn't take a rocket-scientist to figure out that if you are living below sea-level in New Orleans, you may want to be sure that you are covered for flood. When the policy-holders in New Orleans were denied coverage for flood as the policies stated, they hired a lawyer to sue. The lawyer was creative. He tried to redefine the definition of flood, claiming that it was the failure of the levees that caused the damage to the homes, not the wall of water that was released.

The court ultimately disagreed finding that flood is commonly understood to mean 'flood'...damage by water in simple terms.

It is in the best interests of the insurance company to have a satisfied claimant. It is in the best interest of any business to have satisfied customers. That bodes well for the future of the company. But it is not in the best interest of a company to pay claims that are not covered by the policy, or to pay too much for a claim. Insurance companies want to pay the least reasonable amount they can for a claim, and it is up to the claimant to prove what the claim is worth...not the adjuster.

Bottom line is, you have to be your own advocate. Read your insurance policy. Ask questions about items you don't understand. Make sure you have the coverage you need and want. After a loss, it is too late!

Insurance Fraud Affects Us All

Insurance fraud seems to be a common occurrence. Have you heard someone say that they claimed more than what they lost from a fire? Or stated their items were worth more than they really were so they could - in their words - recover the deductable, too?

One person claimed all his tools were top of the line. Not one wrench or screwdriver was purchased at Wal-Mart? Hard to believe! Another person claimed he had a closet full of custom-tailored suits, rather than some being purchased off the rack. Again, a statement I question.

When people file fraudulent claims, who do you think ends up paying for it in the long run? Everyone, through higher premiums. An insurance policy is to help you get back to where you were prior to your loss, not improve your way of life!

We've had many disasters in recent years, and predictions are that we'll continue to see hurricanes and tornados affect our lives. Fires continue to burn houses and business. Flooding is happening in areas of the country where it 'never' happened before. Wild fires continue to burn.

Fortunately, something is being done about it. The Federal Bureau of Investigation has stated that the Hurricane Katrina Fraud Task Force has brought federal charges against 907 individuals across the country since Katrina affected so many lives in 2005. The Task Force's responsibility is to deter, detect and prosecute those who try to take advantage of disasters related to Hurricanes Katrina, Rita, Wilma, Gustav, and Ike, as well as other natural disasters.

The Task Force processes complaints and coordinates with law enforcement agencies to initiate investigations. Unfortunately, there are people who thrive on taking advantage of victims. The same is true in the situation of people trying to recover from disasters. It is a sad statement that such a task force is needed. However, we can be pleased that we have federal oversight on this wide-spread fraud.

More than 26,000 disaster fraud complaints have been received and over 17,000 have been or are being investigated. Just created this year, the Command Center now has a disaster fraud hotline to receive complaints related to the California wildfires, Iowa floods and Hurricanes Gustav and Ike.

These are the wide-spread disasters, and this commission is addressing the fraud committed by people taking advantage of the disaster victims. But consider your individual policy. Many insurance agents have stated that fraud - whether the type investigated by the Task Force or those committed by the policy holders themselves - will encourage the insurance companies to be more stringent when requiring proof of ownership from their customers. When filing a claim, this will impact those who do not have an inventory of their belongings because they won't be able to provide this information.