Quote on Insurance: December 2013

health insurance for entrepreneurs

Health insurance for some people still considered less important , especially if you 're young and never got the disease . Insurance is not a product that can be consumed in the near future , the benefits can only be felt when there is an accident or claim .

If you are an entrepreneur or work in the informal sector who do not have health insurance , it will be a disadvantage if you are going to buy a new insurance policy when you have severe pain and a lot of money for hospital treatment .

For an entrepreneur if you get sick or suffer permanent disability due to an accident will have a lot of financial losses , because they have to bear the cost of treatment themselves , and can not make a living . Than if you are working in a large company or government diinstansi work , usually will obtain health insurance that would cover the cost if the pain and bulananpun fixed salary paid .

Thus health insurance should be held as early as possible before an event that we do not want to happen , especially if you work as an entrepreneur or work at a company that does not provide a guarantee kesehatan.Informasi insurance is very important for you to know the type of insurance and products .

Put life insurance on your kid?

May is birthday month for both kids in our household -- a curse because of the costs and a blessing because we can be done with it all in one fell swoop.

Birthdays are also a good time to do annual financial checkups. It's not something most want to talk about, but parents need to have some type of life insurance policy to cover the income that is lost with the death of a spouse. It ranks near the top of financial considerations.

There are other policies to think about, like critical illness, which provides a lump-sum payment should you become seriously ill, and disability insurance, should you be unable to work.

Less clear, and much more controversial, is buying insurance against your child's death. Yech!

Mark Halpern, owner of illnessprotection.com,says it's a gruesome subject, but for parents with a family medical history, it can make sense. "Once we get people off the ledge [from the idea they might profit from their child's death], they realize the best time to get insurance is when you're young and healthy," Mr. Halpern says.

"You could get their insurance needs taken care of in 10 years and then they won't have to deal with an insurance advisor in the future."

But he also says a policy for your child ranks down the list of financial priorities -- after contributions to a registered education savings plan, for example.

Steve Krupiez, assistant vice-president of special case markets for Manulife Financial Corp., says insurance policies for children were much more popular 20 or 30 years ago, as a way of saving for a child's education.

Before the RESP was introduced, parents would buy a policy in their child's name and eventually turn it over to them as they reached adulthood. At that point, the policy would have equity in it and the child could withdraw some of that equity for education purposes and face very little tax consequences.

But once the government began providing a 20% grant for every dollar put into an RESP in 1998, the insurance strategy faded.

However, whole life policies that build up equity and are paid off after a number of years, are gaining popularity. For $53 a month, your child would have a $100,000 policy paid up in 10 years with Manulife.

Rates go down in teen years because newborns are actually classified as potential smokers, but that is reversed at age 16 if you prove your child doesn't smoke.

"The story now if you're going to do this is that you're looking for cheap rates forever," says Mr. Krupiez, who agrees that a policy for your child ranks down the list of financial priorities.

Maybe the idea of buying insurance for your child isn't that gruesome, but it's probably not your top priority either.

Cheap Term Life Insurance is a Low Cost way to Plan for Future

Digital News Report – If you are looking for a cheap life insurance policy you might want to consider a term plan. These are often relatively inexpensive. You set the amount of years that you want to have covered. You might want to ask your financial planner how many years would be optimal and what dollar amount to insure for in a term life insurance policy.

You don’t want to under insure and you don’t want to over insure. If you have a health condition, smoke, or have a dangerous job, you may have a higher monthly payment. Your age is also a factor in your monthly premiums. Life insurance companies can ask for a medical exam, while others offer a no-exam life insurance policy and base it on a short health survey. With any insurance you should always be upfront with answering the questions because if you are found to have told them the wrong information you can lose your benefits.

You can look for a policy that has an Accelerated Death Benefits built into the terms of the term life insurance plan. If you come down with a terminal illness the life insurance policy can help to pay for some of your expenses that aren’t covered by your health insurance. You might not have to pay extra for this until it is activated. So shopping around for your life insurance and getting all the perks at an affordable price should be an important task for anyone that is planning for the years to come.

Term Life Insurance is low cost in comparison to whole life insurance. Whole life insurance is for those that want to set up investments strategies and estate planning usually, while the term life insurance are for those that want the coverage during the time their children are being raised. Once the term is up the coverage ends. If you didn’t die, you don’t get any benefits from your payments. Term life insurance is a lot like car insurance.

With term life insurance quotes, make sure to find out if they are renewable. You may want to renew the policy at the time it is about to expire. Having this option is a good idea, just in case.

Most all insurance agents offer some type of term life insurance policy. You can also find banks and credit unions offering them as well. If you want to further investigate more term life insurance quotes you can search the Internet and find the best selection of term life insurance quotes. After shopping around you will surely find the best term life insurance rate to help protect your family.

By: Victoria Brown

Insurance Types You May Not Need

For every fear that people have, there’s an insurance policy to cover it. Worried about being jilted at the altar? There’s a policy for that. Afraid an alien might abduct you? That’s covered too.

Some insurance policies are crucial – auto and property insurance, for example. Others are a sound financial decision, including life, critical illness and disability insurance.

There are some policies, however, many of us can do without, says Tom Drake, a financial analyst and head writer for the Canadian Finance blog. Shopping for a house and car in Edmonton two years ago, he heard every insurance sales pitch in the book, including mortgage life insurance to cover payments if he died.

After running the numbers, Mr. Drake decided a 20-year term-life insurance policy was the most economical way to protect his family from debts and lost income.

“In most cases, these products play on emotions and are either not worth the money or can be better covered by simple term-life insurance,” Mr. Drake says. “Even worse, some of these policies can be difficult to collect on when needed. So stick to the basics and avoid the insurance you can do without.”

Another strategy, he says, is putting the money you would have spent on extra insurance policies into your savings each month, where it can be used if and when you need it, no strings attached.

Here are Mr. Drake’s top seven insurance products you probably don’t need:

Insurance on debts

Mortgage life insurance and credit life insurance cover your debts in the event of your death. However, these products tend to be more expensive than a similar level of term-life coverage, which can be used to pay the bills or anything else your loved ones might need. Unless you have health problems that prevent you from getting adequate term-life insurance, these products are not necessary.

Accidental death insurance

The cause of your death is irrelevant to the amount of lost income or the debts that will need to be paid upon your death, so don’t bother adding this coverage to your life insurance.

Disease-specific insurance

This product pays a lump sum and covers any expense not covered by your benefits, but is a bit of a gamble since you cannot have any pre-existing condition. You’d be much better off with critical illness insurance, which covers a variety of common illnesses.

Rental car insurance

When you rent a car, you’re offered a loss-damage waiver and collision-damage waiver. Before you buy, check with your insurance provider and your credit card company, as you may already have this type of coverage.

Auto glass insurance

For the annual premium, plus deductible, it would cost less to replace your windshield every two years with your own money than to buy this insurance, Mr. Drake says.

Identity theft insurance

This pays a capped amount for any lost wages and expenses you incur while cleaning up identity theft. It does not cover stolen money or fraudulent credit card use – victims need to seek reimbursement for those expenses from their financial institutions.

Child life insurance

This product is offered as a savings vehicle and insurance against early-onset chronic diseases, with a payout in case the unthinkable happens. You would likely be better off with critical illness insurance for your child and a Registered Education Savings Plan.

Diary of a Bank Insurance Review

Well over 75% of the calls I get are from bankers who want a review of their bank's insurance coverage.

The process is straightforward. Send me your policies and other information. I review it, ask some questions, and report the issues I find.

Once I get the info I need, I can finish a review and have your bank moving towards improved insurance coverage within 15 days.

Here is a timeline from one of my recent projects:

Day 1 - CFO of ABC Bank emails me. He is interested in a review of his bank’s insurance. We discuss his bank’s situation, current insurance, and his objectives. The call takes less than twenty minutes. Later that night I email a proposal that outlines the project's objectives, accountabilities, and fee.

Day 5 - The CFO gets back to me, asking to move forward. He signs the proposal and cuts me a check for my fee. I email him a letter to send to his agent requesting information for the project - summary of insurance, loss runs, and the like.

Day 8 - I receive a box of the bank’s insurance policies, sent by the CFO. I start my review of coverage. (Note, more and more banks are scanning their policies and emailing them. This speeds up the review process.)

Day 10 - I receive information from the bank’s current insurance agent. As I have the info I need, I call the CFO and we set a date for the review conference call.

Day 15 - I email the CFO a copy of my findings to be used in our phone call later in the day. At the appointed time we review the issues and I provide my recommendations. The CEO, CFO, and SVP of the bank are on the call. We set action plans and accountabilities for each issue. We set a date for the next conference call to review progress.

To start the process just send me an email at Scott@insurance-coveragelaw.com or call me at 207-284-0085. After a short conversation, I will send you a proposal, bank references, and everything you need to make the decision to go forward.

Once I complete a review of your bank's insurance, you will have a better understanding of your insurance. You'll know the coverage you have, and the coverage you don't have. You'll have specific recommendations on how to improve your coverage, and tactics to broaden your insurance protection.

It all starts with a phone call or an email.

Phone: 207-284-0085

Email: Scott@insurance-coveragelaw.com

Life Insurance Quotes May Save You Hundreds of Dollars a Month

During rough economic times like these, life insurance may be one of the first things tossed out of your family’s economic picture along with your Netflix account, Starbucks runs and weekend trips. But instead of ditching your life insurance, which may put your family at risk if the worst were to happen, performing a simple life insurance quote online may save you thousands of dollars a year.

Depending on the level of insurance a person may have, the average American family spends roughly $400 a month, not including car insurance. It’s tempting terminate your coverage (if you can, many firms lock you in for a substantial amount of time) especially if a job is lost or pay is decreased.

“I was going to get rid of my life insurance but after doing some reading online, I saw that wasn’t a good,” says Danielle Johnson, a mother of two in Aurora, IL. “I was spending $200 a month on our insurance and my husband was laid off so I was looking to cut some corners you know? It’s insurance or the house at least that’s what I was thinking.”

Danielle did what most consumers do when they have a question about a product: they head to the internet.

“I just did a search on life insurance quotes and picked a site from State Farm or maybe it was AllState,” said Danielle. I don’t know, but what matters is that I found a cheaper insurance provider. It didn’t save me that much money but it was enough for us to eat. That’s good enough.”

Life Insurance for Charitable Gifting

* The benefits, if any, to be derived in implementing such a concept?
Coming out of this research, we found that life insurance premiums can qualify under the income tax act as a deductible expense once the proceeds of the policy is donated to an organisation established and operated exclusively for charity or for educational purposes and approved by the minister responsible for finance by order. In addition, we also found that under the insurance act 2001, it is possible to name a charitable organisation as the beneficiary of ones policy. So in summary, the concept of Life insurance for Charitable Gifting can be implemented here in Jamaica under our existing laws.

But what really is Life Insurance for Charitable Gifting? Life Insurance for Charitable Gifting is the use of life insurance to make charitable gifts. This can be an effective and cost-efficient means of fulfilling charitable intentions without making a sizable donation while alive. Depending on the type of insurance used and the nature of the gift, charitable donations involving life insurance often can result in income tax deductions for the donor and current as well as future value to the charitable recipient.

It has always been the case where, one could receive a tax credit on their estate by either donating the cash surrender value or the proceeds of a life insurance policy to charity. This was normally done by simply adding the charity as the beneficiary of the policy. However, under this new concept of Life Insurance for Charitable Gifting one can get an immediate tax credit once the donor irrevocably assigns the policy to the charity as provided for under the insurance act 2001 and make the charity the beneficiary of the life insurance policy.

To receive a tax benefit, the money donated must be considered a gift by the Tax Audit and Assessment Department. Gifts generally include; cash, gifts in kind, like stocks and real estate or a right to a future payment, such as proceeds from a life insurance policy.

The donation of the proceeds or cash values from a life insurance policy must be made to authorised charitable and educational organisations as provided for by section 13 (1) (q) of the income tax act. Section 13 (1) (q) of the income tax act states; "the amount of any donations (not exceeding one-twentieth of the statutory income) to any institution or organisation established and operated exclusively for the charitable or educational purposes and approved by the minister responsible for finance by order". While the definition for statutory income under the same act states; "subject to section six, the aggregate amount of income of any person from all sources remaining after allowing the appropriate deductions and exemptions under this act".

So, with this in mind, we now know that a donation can be a present gift that a charity can use now or a deferred gift that is available in the future, usually through a life insurance policy after the donor's death.

So how will this work? Well, according to the Tax Audit and Assessment Department, "if you irrevocably assigned your life insurance policy in full to a charitable organisation approved under section 12 (h) of the Income tax act and the charitable organisation has been designated the beneficiary of the policy. Then under these guidelines, the surrender value and the premium may be deducted for the purpose of ascertaining chargeable income or statutory income.

Where an existing policy has been assigned, the surrender value on assignment may be deducted as a charitable donation restricted to one-twentieth of the contributor's statutory income. Subsequent payment of premiums in respect of existing or new policies would also be awarded the same treatment. Where the premiums and or initial surrender value has been allowed, no additional amount will be allowed on maturity of the policy".

To summarise, when you irrevocably assign an existing life insurance policy to a charity the amount of the donation you make to it generally corresponds to the policy surrender value. The charity will then issue you a tax receipt entitling you to a tax credit for the year in which you make the donation. If you choose to continue paying the policy premiums you will receive an annual tax credit for the premiums paid subject to one-twentieth of statutory income.

If you, however, purchase a new life insurance policy, it comprises no surrender value at the time of purchase, and only the premiums that you will pay entitle you to a tax credit. In such a case:

* At the charity's request and with its written consent you pay the premium to the insurer which will then issue you a receipt. These receipts must be presented when making your claims for tax credits.

Upon your death, the principal insured under the insurance policy will be paid to the charity as a beneficiary. No receipt entitling you to a tax credit will be issued in your name or in the name of your estate, since you will have already received a tax credit on the premiums paid each year.

What benefits are there to be derived from introducing this concept?

To the Donor

a) Significant Tax Savings

Well, let's see how this might work. Let's assume that a client pays $100,000 for insurance premiums for coverage of $1,000,000. Within that year he/she then decides to give that policy to charity. So that upon his/her death, that charitable institution would receive the $1,000,000 sum assured. The policy can then be removed from the client's taxable estate and the premium payments of $100,000 could then be deducted, subject to the limitations of the income tax act.

b) No Gift Tax

Under normal circumstances, when transferring gifts to loved ones, a transfer tax of four per cent is applicable to your estate at current market value. However, because the gift you would be leaving for the charitable organisation would be given to them as beneficiaries on a life insurance policy, you would not be required to pay the four per cent transfer tax, hence no gift tax.

c) Recognition

Most charities will list the client as the donor of the amount of the death benefit, but the client only pays the life insurance premiums. Some charities may even give plaques and scholarships in honour of the donor.

d) Donors Can Make Larger Gifts without Making a Major Cash Outlay upfront.

As stated earlier the only cash outlay required by the client is his/her commitment to the paying of life insurance premiums. However, upon his/her death the charitable organisation will receive the life insurance proceeds and cash value (if any); which in many circumstances constitutes as a major cash outlay.

To the Charities

Charities May Receive Larger Donations Than They Would Otherwise Receive.

* It ensures a stream of cash over the years as plans mature or paid out at different times.

* Cash values/equity can be utilised before policy matures or before death of the donor.

To Insurance Companies

Less policy surrenders: Some one may no longer want his/her policy because of any of these reasons:

* Original reason for purchasing the policy is no longer there

* Beneficiaries are deceased

* Another investment would make more sense at this time

* A reduction in estate size or a change in the tax laws

* The premiums are no longer affordable (here only the cash surrender Value of the policy are donated)

So before surrendering their insurance policies, clients may be encouraged to donate them to charity and receive a tax credit.

Increased Sales: With the idea being marketed heavily amongst the charities to their donors and members. It will provide an opening for insurance advisors to sell more policies.

Not everyone will want to donate their policy to charity, but for those who may wish to do so this added incentive may make it easier for them to donate more. This is in fact, welcomed news for the charities.

Denver Brown is an executive business coach and financial services specialist.

Life Insurance for Charitable Gifting

Insurance key to protecting finances

When we think of what it takes to have a secure financial future, investment accounts usually come first to mind. But those are just one part of the puzzle. Insurance policies can also play a role.

Sure, life insurance can help a loved one when a death eliminates an income, but before that happens, other insurance policies can prevent the pieces from falling apart.

With one in seven drivers uninsured, according to the Insurance Research Council, odds are good that you'll be struck by one. That number is expected to rise as the council says it sees that number go up with high unemployment as more people are unable to afford insurance. Your auto policy should have coverage for you if you are struck by an uninsured driver. But is the coverage enough to replace the damage that could be done?

For example, if you are unable to work for a period of time and lose income, will the coverage provide a payment to you for that? This is especially important for self-employed workers, as not being able to work would harm a business. Your insurance agent should give you a description of how uninsured coverage protects you against lost income. And the agent should help analyze how much coverage is needed. It may be worth it to check with multiple agents to see if they all agree on your situation.

Another policy that can help protect from loss of net worth is property insurance. A slip and fall by a visitor could require a payment from you for medical bills and possibly loss of income. That could force you to take out money from your investments to pay those bills if your property insurance does not have enough coverage.

Homeowners with pools and trampolines especially need extra coverage, as those are life-threatening. Dog owners should also be aware of their coverage, as dog bites account for 1 out of 3 homeowner insurance claims.

When speaking with an agent, also discuss umbrella insurance, which provides extra protection beyond coverage of the auto and home policy. An umbrella can provide protection for $1 million, $2 million or more. You can keep the auto and home coverage lower and supplement with an umbrella that protects against excess claims on either policy.

Beware of having the minimum coverage on your policies as these days medical and lawsuit costs are soaring. The last thing you want is to have built a net worth and then have it taken away because not enough insurance was there to protect against disasters.

Read more: http://www.bnd.com/2011/02/28/1610155/insurance-key-to-protecting-finances.html#ixzz1FIl4VCEU

5 Signs You Need Life Insurance

With all the hype about gold, stocks and the economy, you may have forgotten other key aspects of personal finance, like life insurance. For many, or maybe even most of us, life insurance is actually a bigger concern. If you or I died prematurely, how else could we protect our loved ones from financial hardship? Advisors will often tell you if you're short of funds and have to choose between investing and buying life insurance, get the insurance. (Would your death leave loved ones financially stranded? Find out how to ease your mind and keep them protected. Check out Life Insurance: Putting A Price On Peace Of Mind.)

TUTORIAL: Introduction To Insurance

Although most people could use at least some life insurance (if only to cover their own funeral expenses), not everyone absolutely has to have it - like a retired suburban couple with $3,000,000 in savings, no children, no mortgage or other major debt, and no college expenses. If one spouse died, the other would probably be just fine financially.

So how do you know if you're a candidate for life insurance? Here are five signs you need the coverage.

1. You're Married with Kids
If you're hitched and have one or more children, life insurance is crucial. If you or your spouse died, the surviving spouse would need the money to keep up with car payments, buy food and clothes for the kids, save for college and retirement, and cover all the other everyday expenses the deceased person would no longer be around to help with. It's not something anyone likes to think about, but it's good to know money would be less of an issue if something happened to you or your spouse.

You might both want to buy life insurance even if you don't have kids yet or don't ever plan to. The sooner you get the coverage, the cheaper it'll be. Besides, you'd probably want your spouse to be taken care of if you died prematurely, even if there weren't any kids in the picture

2. You're Single but Caring for an Aging Parent
Like couples with children, singles who are the main caretakers of an elderly and/or ill parent would probably feel much better knowing the parent is taken care of financially in the event of the caretaker's premature death. That's especially true if the parent would have no other way to pay for a professional replacement, which is extremely expensive. The services of a licensed home health aide, for example, now cost $19 an hour, on average. So the bill for even just a few daily hours of those services a day could easily surpass $20,000 in the course of a year.

3. You Have a Mortgage
You may have heard of at least one case in which somebody's husband or wife died and they had to sell the house and move because they could no longer afford the mortgage. Life insurance can prevent that by providing cash to keep up with mortgage payments or perhaps even pay off the entire loan in one shot, if the policy is big enough. (Before tapping your home equity, find out what can go wrong. See Reverse Mortgage Pitfalls.)

4. You Own a Business and Have Partners
Business partners should always have life insurance on each other in case one of them dies, which can devastate a business because the deceased partner's daily contribution to its success is lost. Insuring the partners' lives can provide cash to help keep the business running in the event of someone's death.

5. It's Your Only Way to Give to Charity
Some people are well off enough that their death wouldn't cause undue hardship for loved ones, but they don't have anything extra to leave to a charity they want very much to help. They can solve this dilemma by purchasing life insurance and naming the charity as a primary beneficiary of the policy.

The Bottom Line
Don't let the constant barrage of bad economic news and concern about your investments distract you from other important personal finance issues such as life insurance. At this point, getting adequate life insurance might actually be a higher priority for you than investing. Strongly consider purchasing coverage if there's anybody who would suffer financially if you died.

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/06/28/investopedia53716.DTL

LA Insurance Commissioner Makes Flood Announcement

I got this today. Quite a helpful reminder to insurance agents...

To: All Louisiana Producers

From: Commissioner Donelon

Re: Spring Flood Update

As the spring flood has moved into Louisiana, I am asking your assistance in communicating important information regarding the National Flood Insurance

Program (NFIP) to the citizens of Louisiana.

Please alert your clients with flood coverage that the NFIP may reimburse residents up to $1000 for preventative measures taken such as sandbags, supplies, and labor for property removed to safety. Insured property must be stored in a fully enclosed building and is covered for 45 consecutive days from the date it began being moved there. Residents should keep all receipts in order to receive reimbursement, and submit them to their claims adjuster. In preparation of filing a flood insurance claim, residents should have their insurance policy, inventory of their contents, all receipts, and photos of damaged items (if possible).

Please feel free to direct individuals with flood insurance questions to the NFIP at 1-866-751-3989 or other insurance questions to the Louisiana Department of Insurance (LDI) at 1-800-259-5300. Thank you for your assistance.

With best wishes and kindest personal regards, I remain

Very truly yours,

James J. Donelon

Commissioner of Insurance

Limitless Insurance For Banks

Sent to the ABA Journal:

To The Editor:

For well over 100 years, the insurance industry in America has done an exceptional job of offering protection to America's community banks. As the banking industry changed, so did the insurance protection offered to financial institutions. As technology changed, bank insurance changed to meet the new exposures.

It's time for the banking insurance world to take the next step.

As an insurance consultant to community banks, the most frequent questions I'm asked is, “How much coverage should we buy?”

It is an unanswerable question. No bank can be totally confident that the amount of insurance they have purchased will be adequate to meet future claims. The risk of running out of insurance is an exposure often considered by bank executives. Is $1,000,000 enough? How about $5,000,000? Is it possible that we could be sued for $20,000,000? Is a bond limit of $5,000,000 adequate?

You may as well ask, "How high is up?"

Currently, all insurance policies for banks have limits. Each policy describes the maximum dollar amount that will be paid by the insurer for covered claims. Every bank in America could potentially run out of insurance.

Of course few, if any, will. However, there is a risk for every bank. More than a few bank CEOs and CROs stay up at night worrying about such risks.

Fortunately, this is a risk that can be easily borne by the insurance industry because of the law of large numbers. With many banks insured, few will have claims. Fewer still will have big claims. Few (if any) will run out of insurance.

I dare say that removing the risk of running out of insurance is a value that bankers will pay for. The time has come for insurance companies to offer insurance contracts without limits of coverage.

Certainly, some banks will continue to select an amount of insurance on their bond and their Directors’ & Officers’ insurance. Other banks, however, will recognize the value of an insurance policy where the threat of running out of insurance is zero.

Think of the benefit to your directors, officers, and stockholders of the bank knowing that they cannot run out of insurance protection. Would a bank pay an extra 20% for this feature? (I would recommend it.) Is it still valuable at 25%, or 30%, or 50% more? Individual banks would get to decide.

Insurers too can decide. Some will scoff at my idea. Some will offer it only to their very best clients. Ah, the wonders of a free market.

Those insurers who take my suggestion stand to gain in premium and client loyalty. Those who don't can continue on as they do now - hopefully losing market-share to the innovators.

May I be so bold as to suggest that you point your insurance agent to this letter. Ask your insurer to consider the idea. Perhaps this will start a discussion to the further improvement of the insurance protection purchased by community banks in America.

Scott Simmonds

Insurance Assurance Consulting

United States Longshoremen and Harbor Workers' Act - USL&H

The United States Longshoremen and Harbor Workers' Act (AKA USL&H) is a federal law that provides benefits to workers who were injured in certain occupations having to do with dock workers and other maritime jobs.

Twenty years ago we worried about incidental workers on docks - florists and pizza delivery people for example - who would go onto docks or ships occasionally but whose job was not really maritime. The law then (as I recall) was changed so that the current rules exclude from coverage:

(A) individuals employed exclusively to perform office clerical, secretarial, security, or data processing work;

(B) individuals employed by a club, camp, recreational operation, restaurant, museum, or retail outlet;

(C) individuals employed by a marina and who are not engaged in construction, replacement, or expansion of such marina (except for routine maintenance);

(D) individuals who (i) are employed by suppliers, transporters, or vendors, (ii) are temporarily doing business on the premises of an employer described in paragraph (4), and (iii) are not engaged in work normally performed by employees of that employer under this Act;

(E) aquaculture workers;

(F) individuals employed to build, repair, or dismantle any recreational vessel under sixty-five feet in length;

(G) a master or member of a crew of any vessel; or

(H) any person engaged by a master to load or unload or repair any small vessel under eighteen tons net;

if individuals described in clauses (A) through (F) are subject to coverage under a State workers' compensation law.

So, based on the above, a florist delivering flowers to a dock-worker is not eligible for USL&H benefits (though they are eligible for state workers' compensation benefits).

I was recently talking with a agent who insisted that his bank clients needed USL&H coverage in case a loan officer wandered onto a dock and got hurt. As I argued, he brought up the fact that the premium was about $300 on a bank that spends over $100,000 a year on insurance.

The wind went right out of my sails.

However, should the bank even spend $300 on this? If there is never a claim, the bank spent $3,000 over ten years. If there is a claim, I hope a judge would hand an attorney his head for even trying to subvert what I think is pretty clear language (above). However, lawyers are creative and judges continue to astound.

What's the right answer?

$1 billion in life insurance unclaimed?

Calling it a "conservative" estimate, Florida Insurance Commissioner Kevin McCarty says 40 of the largest U.S. life insurance companies may owe policy beneficiaries more than $1 billion.

McCarty made the claim after completing the first stage of an evidentiary hearing today on how life insurers were using the Death Master File, a Social Security Administration list of those who have died.

The nation's largest life insurer, MetLife, was grilled by McCarty, who heard testimony that MetLife has been using the Death Master File since the late 1980s to determine when to halt annuity payments to its clients but did not use the list until 2007 to determine whether an insured had died so his or her beneficiaries could be paid.

How much life insurance do I need?

And the company only began using it in a systematic and comprehensive way toward the end of 2010, according to MetLife representatives who were subpoenaed and testified under oath at today's hearing.

Nationwide Financial senior vice president of life operations Peter Golato testified that his company had run a check of its life insurance policies through the same process it uses for annuities.

''As a result of that scan, we found that approximately 1,000 policies or less than one-tenth of 1% of our book of business matched positive, where the policyholder may have passed away and benefits may be due. While only a tiny fraction of our life business, we have already found more than 70% of these policies' beneficiaries and are in the process of assisting the beneficiaries in making a claim so we can deliver all benefits including interest," he said.

35 insurance investigations

Asked after the meeting the total amount all insurers likely owed, McCarty said it was difficult to determine, but estimated "somewhere north of $1 billion."

At least 35 states have begun investigations into whether life insurance companies have failed to find beneficiaries for life policies and how much has either been kept by insurers or "escheated" -- that is, turned over to the states to try to find the rightful owner -- instead of paid to the beneficiaries.

McCarty described those actions as a "pervasive practice," and promised a "broader investigation looking at the largest insurance companies in America." He said the end result would involve 40 companies representing 92% of all the life insurance and annuities in the country.

'Track down anybody'
Regulators who attended the meeting sounded incredulous that MetLife and other life insurers couldn't track down missing beneficiaries when they didn't come forward. Usually it's the beneficiary's obligation to find the insurance company after an insured person dies. But that could change now that regulators are aware that some insurers have used the Death Master File to figure out when to stop paying on annuities, but not when to make payouts to life insurance beneficiaries. It is a situation McCarty calls "a mismatch."

Bad Insurance Agents

OK, I am catching up on my reading of the insurance information service, FC&S (National Underwriter Company).

A few minutes ago I blogged about bad adjusters. Now its my turn to take a swipe at agents.

Here is the question asked:

A hit-and-run driver hit a car, which in turn was pushed into a building. The building and the personal property inside were damaged. The car was covered by uninsured motorists insurance, and the insurance company is paying for the car. However, the auto insurer will not pay for the building and personal property damage, stating that "as the driver was not in the car at the time of the accident and therefore we [the insurer] are not liable, the hit-and-run driver is." The car caused the direct physical damage to the building, the hit-and-run driver did not hit or even touch the building. Wouldn't the car insurance be responsible for the damages as the car hit the building, not withstanding it was unoccupied?

AHHHHHHHHHHH!

The agent is asking about LIABILITY coverage. Liability insurance responds when the insured is responsible for the damage or injuries caused.

Why would anyone think that a parked car is responsible for damage caused by another car? Basically the agent is taking the position that there was an accident and the insurance should pay.

No.

There has to be liability before a liability policy will pay. Insurance 101, day one - maybe hour two.

Of course if some lunatic court says that the parked car is responsible for the accident, then matters change. The insurance policy does not have a lunatic court exclusion (that I have ever seen).

Bank Insurer Ratings

I work with a variety of insurers in my efforts for my bank clients. I review coverage, help with claims, and manage bids for community banks.

Here are the latest ratings by AM Best and Weiss Ratings for a sample of the insurers who work with banks.


.		Q3 2011
.		A.M. Best Rating	Weiss Ratings
.	ABA Insurance Services - Everest Re Group Ltd	A+ XV	C
.	BancInsure Inc	B++ VI	C
.	Chubb Group of Insurance Companies	A++ XV	B
.	Cincinnati Insurance Companies	A+ XV	A-
.	FinSecure - StarNet Insurance Company - W. R. Berkley Group	A+ XV	C
.	Kansas Bankers Surety - Berkshire Hathaway Insurance Group	A++ VII	B
.	OneBeacon Insurance Company - White Mountains Insurance Group	A XI	B-
.	Travelers Group of Insurance Companies	A+ XV	B
.	Zurich Financial Services Ltd	A+ XV	C
.
.

Uncovered Claims

I have been talking with a banker. He emails the following:

"Most of our renewals are in the fall. I may give you a call prior to those renewals to talk."

My reply:

"Always glad to talk. Renewals are best managed when started 120 days ahead. Of course a coverage review catches uninsured/underinsured areas at any time - perhaps just before a loss."

The holes in your insurance do not wait for renewal. Claims occur whenever...

Coverage problems are discovered either when a claim isn't covered or when someone discover the coverage gap.

I'm asked when is the best time to review insurance coverage.

My answer is, "just before an uncovered claim."

How To Fins Atlanta Private Money Lenders

The private money lender is a company or person who is able to lend a particular financial sum according to a deal or trust and often used for real estate. With a large number of consumers struggling to obtain the necessary finances from a conventional institution such as a bank, there are alternative sources available for funding. It is important to determine how to find the right Atlanta private money lenders.

Private lending is regarded a preferred option for individuals and entrepreneurs with poor credit ratings. This is because lending through a bank is becoming more difficult due to the restrictions that have been placed on loan approval. In a tough economy it is possible for individuals to obtain the desired funds for various financial purposes whether you possess bad FICO scores or not.

A lender may offer small finances to attend to individual needs in comparison to the hard money lender where funds are often provided for purchasing property. One may seek financial solutions from friends and family members, but this can often result in bad deals where payments default or poor interest is provided. It may be a better decision to consult with third parties that are accredited and where there is no connection on a personal level to prevent unpleasant results.

When looking at real estate investors, it is important to consider how to obtain the necessary finances. When looking to borrow a specified sum be sure to complete your research. An accredited company should be sought as this will ensure fair interest rates and prevent against the possibility of falling victim to a scam.

It is important to take some time to shop between lenders before entering into an agreement. Be sure to visit a few financial companies and evaluate interest rates. Individuals with poor or no credit may be charged higher interest, but it should prove affordable.

For entrepreneurs, private lending can be sought from businessmen and investors looking to receive a fair return on their investment. When investing in real estate a large number of businessmen are more likely to provide the funds as property is a more secure and valuable option. Like any other loan, such lending solutions will include a contract and payment of installments.

In the search for the Atlanta private money lenders it is necessary to take some time to research the options available. Consider risk exposure and the interest that is charged on borrowed amounts to ensure that it can be afforded. By looking around and consulting with accredited lenders, only then can the right deal be sought.