claims at Insurance Online

Today I would like to continue my previous post and tell you about different types of coverage; it means that we pass to the second question from the list:

Coverage: which of them and how much

We do not have the task to pass on all available coverings in the world of car insurance. There are a lot of sources in the network, books where you can find information, and, not in the last instance, your insurance agents. On the contrary, we shall try to see a problem as a whole, not dividing it into details.

Liability Coverage

We speak about this type of covering when somebody brings an action against us or somebody is going to do it, irrespective of validity of claims and irrespective of result of the court examination. 95 % cases do not reach the court, as the parties reach settlement. The insurance company in this case pays (instead of us) not only damage which we have brought to health or the property of other people, it also pays litigation cost. Sometimes it does it without any payment of indemnification to fight tooth and nail against completely absurd claims and spends thousands of dollars on good lawyers.

The person cannot be judged for the sum, bigger, than all his assets (bank accounts are included), equity in the real estate, shares, and, that is very important for beginners - garnishment of wages (deduction from wages during 10 years forward from all members of family at the rate of 25 %). That means that young family without good private means have not so many assets. But, the husband and the wife can earn together, for example, 160 thousand one year. Therefore it is possible to keep 400 thousand dollars within 10 years back.

The important question:

In what situation the court will take away everything from the initiator of traffic accident?

The answer:

The court will take away everything from the initiator of traffic accident in case of death(s), or in case of physical inability of another person.

The amount of damage also depends on the solvency of the victim. The moral damage\spiritual injury (pain and suffering) of a serious lawyer or a doctor costs much more than the same one of a worker.

It is obvious, that we as drivers cannot supervise how many car we shall damage in case of traffic accident, neither their price, nor quantity of drivers and passengers, neither gravity of traumas received by them, nor cost of their subsequent medical treatment. Therefore, we proceed from the worst for definition of the amount of our insurance responsibility.

We should calculate how much it is possible to take away from us if to take away everything, including 25 % from the salary during the next 10 years? So, it is necessary to insure our liability for this sum in the part which is responsible for damage to health of people (Bodily Injury - first two components of our fraction - for more information see the previous post CAR INSURANCE IN THE USA: WHY IT IS NECESSARY TO BE INSURED).

But soon $500,000 of the maximal coverage will be not enough. Then we need an additional coverage in form of Umbrella Insurance. The need for insurance coverage varies from time to time. This implies very simple and important …

The Conclusion:

Insurance coverage should be reconsidered periodically, in accordance with growth of the potential responsibility.

Uninsured Motorist Bodily Injury (UMBI) - covers our moral damage and physical injuries in a case, when we have suffered from the not insured (or insufficiently insured) driver. That is, if the initiator of traffic accident has no enough Liability Coverage. Usually we take this covering in the same size as in Liability Coverage and not less. A principle is the following - it is necessary to insure ourselves not worse, than we insure against other people.

Uninsured Motorist Property Damage (UMPD) - covers damage to our automobile in similar circumstances that is if we have suffered from the not insured (or insufficiently insured) driver.

If WE have damaged our car the damage will be covered as Collision (collision with machine, the house, a border etc.) or as Comprehensive (the rest cases - collision with an animal, theft, vandalism, hailstorm, flooding and so forth). You can buy such an insurance with different deductible (the sum paid to you before the insurance company starts to pay).

Choosing the large amount of deductible the person saves on cost of the insurance, but loses in case of accident. The person who drives without accidents for a long time (some years) it will be reasonable to think about high deductible on Collision, for example, $1,000. Comprehensive which costs ridiculously a little, and it is possible to take $250 as there is nothing to save.

Medical Coverage

Medical Coverage is rather curious covering . Some thousands of dollars, usually 2-5 thousand, that were bought in this coverage, are spent without examination (in other words you may be guilty or not). In the case of expensive medical treatment the necessary sum will be charged from the Liability of the guilty person.

To be continued…

<:3 )~~~~~~
Yours sincerely,
AlexSandra

Caution is the parent of safety

an English proverb

Companies and individuals protect themselves against loss, damage, or injury by taking out insurance policies, which are contracts against possible future risks. The usual process of insuring a business or oneself is as follows:

A proposal form is completed by the firm or a person who wants insurance cover. This tells the insurance company what is to be insured, how much the policy is worth, how long it is to run, and under what conditions insurance is to be effected, as the policy may not automatically cover the insured against all risks.

Underwriters, who will pay compensation in the case of a claim, then work out the premium, i.e. the price of insur­ance. If the insurers are satisfied with the information given on the proposal form, they will issue a cover note. This is not the policy itself, but an agreement that the goods are covered until the policy is ready. Once the policy is sent it will tell the client that he is indemnified against loss, damage, or injury under the conditions of the policy.

Indemnification means that the insurance company will compensate the client to restore him to his original position before the loss or damage. Therefore, if you insured your car for $4,000 and three months later it was damaged, you would not receive $4,000 for the car, but its market price, which might have depreciated by 20% to $3,200. The insurance company will also have the right of subrogation, which means they can now claim the wrecked vehicle and sell it for any price they can get.

Companies and individuals make claims for loss, damage, or accident, by filling in a claims form, which tells the insurance company what has happened. If the insurers accept the claim, often after an investigation, they will then pay compensation.

POINTS TO REMEMBER

1. Insurance is designed to cover a business or individual against risks such as loss, damage, or injury. Numerous types of policies are available to offer cover against eventualities, but the client has to decide which hazards apply to him.

2. Assurance is concerned with offering benefit payment either to dependants, in the case of death or incapacity, or in the case of endowment schemes, a lump sum of pension after a number of years’ contributions.

3. Indemnification is the cover which allows compensation In the event of loss or damage, and is calculated on the market value or depreciation value of goods, not their original value. To be insured, a client completes a Proposal Form; the premium is then assessed and quoted, in the UK, in pence per cent. On acceptance, the client is issued with a cover note which gives him cover until the policy is ready. As insurance is based on the principle of good faith, and supported by laws against fraud, insurance companies accept that the items being insured belong to the client, are not being insured more than once, are of the value stated, and that the client will follow the conditions of the policy.

4. Marine insurance offers shippers a variety of policies to cover shipments. However, most exporters ship under an all-risk, valued policy which covers them against most eventualities and allows them compensation for loss or damage, plus ten per cent.

5. Open cover and floating policies are used when the exporter makes regular shipments. These give him a total amount of cover which decreases as each shipment’s value is declared, but can be renewed.

This year BUSINESS ENGLISH is one of the most interesting courses at my university. We study proper business letter writing. It’s very important for normal commercial activity. In spite of the development of telephone, telex and telegraphic ways of communications and the increasing personal contacts in international trade, the writing of letters continues. In fact most telephoned and telegraphed messages have to be confirmed by letters.

So every good businessman should be competent in writing effective business letters in English. It is not just the matter of translating Russian business phrases literally into English because each language has its own characteristic forms and phrases (by the way, we often use Russian instead Belarusian in different official documents).

It is also useful to remember that the subject of the routine business letters in export-import trade lacks variety. Therefore, first, certain accepted standard phrases are in general use and secondly, Form letters (=standard letters) may be used: it facilitates the communication because the repetitive nature of many business transactions and situations makes the use of standard letters a time-saving device.

However, whether you write a special letter or make use of a standard letter, you should know the main parts of any business letter and its layout.

Business letters are usually written on printed company forms (letter-paper). The letterhead (the heading) gives the name of the company, the postal and telegraphic addresses, the telephone numbers, the number of the telex (-es) and the fax(-es); sometimes some other information such as: the names of important officials (e.g. directors), the particular official, to whom the company may wish to have all communications addressed, spaces for letter indexes (references) and the date.

As you see, this course is very interesting and important. And «Insurance» was one of our topics. Our task was the following: «Imagine that you have to write a letter for your underwriters, invent any reason you like and addresses».  It took not much time, and at last I made two letters. I hope they will be helpful for you if you use them as an example.

The first letter

The second letter

Health insurance covers a variety of costs. Some policies cover a stay in the hospital and services offered by the hospital. Surgical expense coverage provides benefits for surgery resulting from illness or accident. Beyond this, a policy may cover what are called regular medical expenses, including doctor’s fees, home nursing, diagnostic tests, and ambulance service. Some policies also cover prescription drugs.

Major medical, or catastrophic coverage, was introduced in 1949. It entails an added cost, or premium. This coverage pays only for large medical expenses, such as open-heart surgery or organ transplants. Because of enormous increases in medical costs since the 1950s, major medical coverage has grown rapidly in popularity.

Health insurance policies frequently carry a deductible clause. This means that the policyholder is required to pay the first part of his or her expenses, usually a nominal amount, before the insurer makes any payments. Deductibles are included in automobile and property insurance as well, to relieve the insurer from having to pay frequent, small claims.

Health insurance policies are offered in two basic forms:

cancelable;

noncancelable.

Some policies can be canceled at any time by the insurer, presumably because of having to pay large benefits. Some are noncancelable during the time the policy is in force normally one year but may be renewed only if the insurer is willing.

One of the most valuable employee benefits offered to working people is group health coverage. Group health insurance is a 20th-century innovation that has expanded rapidly since 1950. The United States has developed a broader system of privately insured health coverage than any other nation.

The major advantage of group plans is lower cost to the individual. In most of these plans the individual employee pays part of the cost of premiums from payroll deductions. Premiums are lower because rates are based on a group, which is often very large, instead of on the individual with his or her known health history. Another advantage of group policies is coverage for dependents of employees. Some group plans include eye- and dental-care policies. Eye-care policies were introduced in 1957. The first comprehensive dental plan was started in 1959.

In a group policy, contracts are issued by the insurer to the employer for the persons to be covered. People who work for government bodies, unions, churches, schools, and other associations are also covered by group policies. The employer is, in effect, the policyholder, though the individuals are given policies detailing the extent of their coverage. Retired persons are normally able to continue their policies as a supplement to Medicare coverage.

Types of coverage are much the same as with individual policies: protection against income loss, hospital and physician expense coverage, major medical, and disability. Disability income plans are designed to supplement workmen’s compensation insurance.

A new type of health insurance developed in the 1980s offered coverage for most nursing home costs. This long-term coverage was designed for the over-65 age group, an increasingly larger segment of the population. Without such policies many people would have to liquidate their savings. Neither government assistance nor other plans are meant to defray more than a fraction of such expenses. In response to public concerns regarding rising private health-care costs, a governmental task force was appointed in 1992 to address the possibility of enacting federally funded, universal health-care insurance coverage for all people in the United States.

Owners of Cadillac Escalades would be well advised to park in a safe spot, lock it up and make sure the insurance is paid.
For the fourth consecutive year, the Escalade is number one on the list of theft claims.
That’s according to the Insurance Institute for Highway Safety, which says there’s a lot for the bad guys to like. Along with the rear-seat DVD systems, the Escalade is marketed as a hip car, driven by everyone from TV gangster Tony Soprano to rappers and NFL stars.
The Mitsubishi Lancer Evolution and the Dodge Ram 1,500 quad cab pickup round out the top three on the hot list for thieves.
On the flip side, the Ford Taurus is ranked as the least stolen car. Crooks also aren’t so hot for the Pontiac Vibe four-wheel drive, or Buick LeSabres and Park Avenues.

With so many different types of insurance, how do you know you have what’s right for you? Here are some tips to save you time and money…and help you rest easier knowing your family is protected.
Having core types of insurance helps families make solid financial plans. Once that’s done, you can breath easier.
The core types of insurance are: Auto, Home/Renter, Health, and Life. But, these aren’t the only coverage plans to consider. Disability Insurance is often over looked. But, if you need money to come in when you are sick, or hurt, disability insurance should cover that.
It’s a good idea to have enough insurance to cover the big set backs that you can’t handle yourself. Meanwhile, keep enough cash reserves to take care of what you can handle. Some people buy towing insurance. Towing insurance is something most people could probably do without by saving some money. But earthquake insurance is probably something people couldn’t handle themselves so that’s a good coverage to buy.
Insurance is a big slice of the budget for most families, but there are ways to reduce the cost. Look at deductibles on various insurance. Try to go with higher deductibles and handle smaller claims yourself. You’ll get a lower premium that way.
To keep premiums low for your home it’s a good idea to have smoke detectors, fire extinguishers, and dead bolt locks. Keep your credit score high for the best rates.
For car insurance, consider higher deductibles on comprehensive and collision. Remember, safe drivers get lower rates.
Advisors recommend earthquake and tornado insurance for folks in the Heartland. But, be sure to read the find print for details on where you can rebuild your home, and how much damage is covered.
Another tip, remember you’ll pay for your friends bad driver if he or she borrows your car and has a wreck.

The worldwide Insurance Industry will engage in a series of bold transformations over the next 15 years, creating a dramatically different set of products, services and business process, all in the name of value creation and long-term growth, according to a newly-released IBM global study.
Pay-as-You-Live Insurance — which deals with life ‘as it happens,’ Active Risk Management — reducing claims management and costs by placing emphasis on preventive actions, and new business processes that lower costs and broaden product appeal, will replace the decades-old insurance models. Long-held industry standards are about to reach the point of diminishing returns and will fail to deliver lasting value. These new scenarios leverage today’s emerging technology as well as technology anticipated in the near-term future.
These concepts and others were unveiled in a year-long global study conducted by the IBM Institute for Business Value (IBV), “Insurance 2020: Innovating Beyond Old Models,” that provides a new perspective on the challenges insurers will confront in 2020 and strategies for successful innovation. The findings are the result of discussions with more than three dozen global insurance industry executives, who run the world’s premier Insurance organizations as well as other influential stakeholders from around the world.
The research examines disruptive forces that will influence the industry over the coming years, including technology, complex regulation, and competition from an increasing number of sources. In addition, changes in customer demographics, the proliferation of online information sources, and the impact of globalization are creating a host of new industry challenges. Study participants overwhelmingly agreed that the industry must evolve to meet the needs of a changing customer base — and that current modes of operation would threaten the industry’s ability to innovate.
The pursuit of a new model is actually the opening of a new era, or at the very least, it is the undertaking of a new course for the industry. The task ahead is as much a battle for a change in direction as it is a battle for a change in mind-set among the industry’s existing players.
Optimizing the current business model, although an important strategy for many insurers, can no longer be the proxy for innovation that matters to the insurance industry. The industry is evolving toward an era of experimentation and innovation - tomorrow’s insurance value proposition will be based on the ability to provide financial services and risk mitigation in ways that are adaptive and customized to meet individual needs.

Mega Trends

Survey respondents and data analysis revealed four mega-trends that underscore the need for innovation and will pave the way to consistent value creation for stakeholders by the year 2020:

– Technology virtualizes the value chain and lowers barriers to entry.
The rising tide of technology will enable an increasing number of niche
service providers from inside and outside of the traditional value chain.
Within the 15-year timeframe, a number of partial and even totally virtual
companies will surface to meet the needs of consumers and businesses.

– Active, informed consumers across demographic groups reward non-
traditional operators. The impact of modern information networks and the
ongoing transfer of financial responsibility to end customers will drive
attitudes regarding increased services and convenience. Applicants and
policy holders from a range of demographic groups will shift loyalties to
carriers that consistently meet their expectations.

– Mainstream insurance products are dynamic and provide more consistent
business performance. Dealing with a global population that eagerly
consumes and thrives on communication and personalization will drive
carriers to develop products that are flexible and adaptable. Technology
will empower insurance companies to bring their products closer to real
time interaction via sensor networks and enlightened privacy regulations.

– Regulatory coordination and the use of affirmed industry standards
broaden to global scales. The globalization of all industries and the need
for efficiency will drive the coordination of consumer and business
protection across geographies, increasing automation and underscoring the
demand for industry standardization.

Survey participants noted that they could achieve success by sticking with today’s modes of operation, which have served them well for decades, but that these systems will hamper growth moving forward. Industry innovations that address changing customer demographics, new technology, regulatory changes and other factors that will arise in the years ahead will be the basis for growth.
They predict that over the next decade there will be a significant increase in the flexibility of insurance products, and that increased use of pervasive computing technology will make this a reality. Calculating the cost of a specific risk will make use of inexpensive sensors tied into the next generation internet. Data provided by these sensors will support real-time calculation of risk, and keep a running tally of premium costs based on the actual risk presented — serving both life and property policies.
Similar technology will also support a broad range of policy duration products such as “just-in-time-insurance,” where each step of a journey would represent a different risk, such car-to-train-station, train-to-city, station-to-office, etc. A “pay-as-you-live” scenario would trade some location and time of day privacy data for lower insurance bills overall. And in the spirit of active risk management, the same network of sensors could also provide convenient information, i.e. avoiding an overloaded expressway, relayed on the appropriate device such as the car audio system, a phone, and then in email or as a phone call in the office.

Technology is creating a new playing field for this industry. Customers have access to virtually unlimited information - once the domain of the carrier. They’re savvy and informed, and know they have choices. These same information sources are enabling niche players to enter the game from a variety of sources and they are creating an interesting competitive landscape.
Another imperative identified in the research is a switch to customer versus product centricity. In the highly connected world of 2020, policyholders will have much greater access to products and the ability to make decisions on their own. The concept of agency will eventually succumb to the power of advocacy, so individuals will look to financial services advocates to provide advice as they navigate insurance and financial services markets. The traditional agency channel will not be gone by 2020, but it will look different in the face of smart software and the salaried advocate model.
Today, it’s crucial to work as a team with the individual customer’s best interests as the goal. With so many options and choices - many just a mouse click away - it is critical to provide the user with a personalized experience including innovative products and services. Bringing the customer into the equation helps eliminate some of the old myths and perceptions about the industry. Technology, demographics and other factors will change, but one constant remains - focus on the customer will always be key.

The full research results and whitepaper are available at: http://www.ibm.com/bcs/insurance2020

Shopping around for car insurance could save you more than €1,000.
A major cost survey, which compared the cost of coverage for a range of male and female drivers, showed big savings for drivers nationwide.
Regardless of driving experience and age, it really pays to shop around for the best type of insurance policy.
This survey featured drivers of all ages, from 26 to 75 years of age.
Many young people find it too costly to get their own insurance in the first few years and are named on a parents’ policy so in this issue we feature the costs for someone with eight years driving experience and looking for their own insurance for the first time.
The main findings of the survey, which features drivers in Cork, Dublin, Galway, Kilkenny and Laois, include:
Named drivers seeking their own insurance for the first time can make considerable savings on their insurance costs. A 26-year-old male driver in Dublin, who has been a named driver under his parents’ policy for eight years, could pay between €700 and €1,800 for third party fire & theft insurance.
A 40-year-old male driver with a provisional license and a 1-year no claims discount could save around €550 on his motor insurance. A female driver with the same age and driving experience could also save up to €500 on third party, fire and theft cover.
Drivers may have more difficulty getting quotes for convertible cars. Two insurers surveyed would not provide a quotation, but convertible drivers could still save between €520 and €870 on their insurance costs.
The survey also shows insurance costs for a wheelchair-user with an automatic car with hand controls. Savings for this driver range from €280 to €330.

The last time you filled out a job application, did you maybe stretch the truth a little about your responsibilities? A lot of people do it to make a better impression on a potential employer, but you better not do it on an application for life insurance!
Dozens of claims for benefits are denied to grieving families each year because the deceased had failed to disclose something to the insurance company. Among the most common lies: failing to disclose tobacco use.
Because premiums offered to those who admit to tobacco use are often triple those of people who don’t smoke, some may be tempted to lie to get a better rate, but the effort often backfires on them.
Before the policy is issued, your medical records will be reviewed and you’ll be subjected to blood and urine specimen tests. If you lie and get caught before the policy is even issued, you will have a red-mark against you in the insurance industry. Meaning - you were denied coverage because you lied therefore it will show up in your medical history that you were denied coverage so companies may hold that against you.
Even if you are skilled enough to fool the blood tests by abstaining for enough days to clear your blood of nicotine, if the policy gets issued, you subsequently die within a few years, and they find out you lied, all your family will be entitled to is a refund of the premiums you paid.
Instead of the $1 million dollars you thought you were leaving your family to pay off the mortgage, put the kids through college, and leave your spouse with financial security, they may end up with only a couple of thousand dollars. Just enough to pay for the funeral and a few assorted bills.
I think the insurance company has a right to know the person they are insuring. The prices are so low these days for competitive term life insurance, that there’s really no reason to play games. If you lie, you’re playing with fire. There is a good saying – avaricious pays twice.

Insurance providers in Florida have significantly new regulations after Gov. Jeb Bush signed a bill that lawmakers say will provide short-term relief for insurance policyholders while producing long-term reform for the statewide insurance industry.
“Two unprecedented back-to-back hurricane seasons with eight hurricanes and four tropical storms pushed Florida to the brink of an insurance crisis,” said Bush, in a press release. “These reforms will help to ensure the state’s long-term economic vitality as we continue to deal with this increased hurricane activity.”
Private insurance companies collected an estimated $18 billion in premiums from 11.9 million residential policyholders in 2004 and 2005, according to the state. However, during that same period, those companies paid out $38.5 billion in claims for damages. Citizens Insurance, the insurer of “last resort,” collected $1.2 billion from about 815,000 policyholders, but paid out more than $3.9 billion, amassing a $2.2 billion deficit during the past two years.
With the new law, the state will provide $250 million in loans to insurance companies to help them write new policies or assume existing policies from Citizens or other private insurers leaving the market. State funding could generate as much as $1 billion in private insurance during the next two hurricane seasons, lawmakers said.
The Legislature also directed $715 million in surplus cash to offset Citizens’ current deficit, in effect reducing the surcharge that private insurance policyholders make toward Citizens from an estimated 11 percent to 2.5 percent.
That’s how state government prepares to the upcoming storm season. But all the changes made to the insurance market will mean little if Floridians don’t take time to prepare.
As part of the long-term implications of the new law, insurance companies will be able to adjust rates by 5 percent statewide and 10 percent in regions beginning in July. Citizens Insurance, beginning next March, will be required to collect enough premiums to prevent a deficit, so as to have enough money to pay a “worst-case scenario” storm that is likely to strike once every 70 years, state officials said. In the event of a deficit, Citizens would have to charge its policyholders first.
The state also will provide $250 million to make older homes more resistant to damage caused by a hurricane, which officials said is the first of its kind in the nation.
Also Florida is launching a program to provide free inspections of homes and provide funding to make home improvements to potentially reduce the price of premiums.

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