damage 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

Do you remember about new interesting topic “CAR INSURANCE IN THE USA”? In my post about it I told that we will be interested in PAINFUL POINTS and I also listed the most important questions. So, today I would like to answer the first one: Why it is necessary to be insured.

First of all it’s important to know that that you must insure your car without fail in most states. Otherwise your friend with 4 wheels will not be registered!

The second thing - insurance is adjusted legislatively at states level, not at federal one. This implies very simple and important …

Conclusion №1

You can trust the information received from the experts in insurance from your state only. Any information from other states can be absolutely inapplicable outside these states.

As I have said almost in all states (there are exceptions) car insurance is obligatory regarding LIABILITY (civil liability). The size of required covering varies from state to state.

For example, in California it makes up to $15,000 bodily injury for one victim and up to $30,000 for more than one victim. Moreover, there is the responsibility for damage of other’s property - $5,000. I’ve made all these accounts for one accident only. It means that aggregate payment will be between 20,000$ and 35,000$.

By the way I’d like to mention that experts in insurance usually use fractional record for amount of covering. Record 15/30/5 corresponds to the covering that has each driver in California according to the law of this state.

Driving without the insurance is a serious crime and is punished strictly!

A piece of advice:

You shouldn’t communicate with people who drive without the insurance or argue that it is possible, or they say why this kind of a crime is “nothing terrible”. These people on a way to the big troubles - it is not necessary to keep them the company.

According to the police statistics in California 28-30 % drivers have no any insurance in general. I can add to this still the same percent of people having minimal covering and you will understand, that it will be very difficult to receive money from others (your will have few chances). This implies very simple and important …

Conclusion №2

It is necessary to have your own car insurance policy!

Moreover, there are two types of the states:

- At Fault (for example, California - the culprit pays the insurance to the victim)

- No Fault (for example, Arizona -your damage is compensated with your insurance irrespective of fault)

The conclusion №3

You should known about the system in state, where you live or are going to live.

If the person is very poor and is going to remain poor practically to the end of his days, in this case driving without the insurance is nothing for him. It must be confessed. In all other cases the sum of insurance should protect the driver from requisitioning of his property and incomes (including the future incomes).

Besides arguing about the whys and wherefores of car insurance, we should know, that are no such occupations in our life which is more dangerous then driving (if you are not a policeman, fireman or something like that). Therefore, it is necessary to answer the following question: “Shall I risk life and health of other people to save ten or more dollars a month?”

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

So, and there are the descriptions of these INCOTERMS (these descriptions provide the most important information about each term, they are not fun definitions):

Group E (Departure)

EXW    - Ex Works - means that the seller’s only responsibility is to make the goods available at his or her premises. The buyer bears the full cost and risk involved in transporting the goods to their destination.
—————————————————
Group F (Main carriage paid by the buyer)

1) FCA - Free Carrier (named place) - mean that the seller fulfils his or her obligation when the goods (cleared for export) are handed over to the carrier named by the purchaser. In the case of rail or road transport, delivery is completed when the goods have been loaded. For sea transport, delivery is complete when the seller has taken the goods to the transport terminal.

2) FAS - Free Alongside Ship (named port of shipment) - means that the seller’s obligations are fulfilled when the goods have been placed alongside the ship on the quay. The buyer is liable for all costs and risks of damage from that moment. Unlike Free 0n Board this term requires the buyer to clear the goods for export. The buyer is responsible for obtaining any export or import license.

3) FOB - Free On Board (named port of shipment). The goods are loaded on board by the seller at a port named in the contract. The risk of loss or damage passes to the buyer when the goods pass the ship’s rail. The buyer is responsible for the transport costs from this port to the destination. However, it is the seller who has to obtain any export license or documentation necessary for the goods to leave the country. In the case of roll-on/roll-off or container traffic, when the ship’s rail is irrelevant, it is better to use the FCA term.
—————————————————
Group C (Main carriage paid by the seller)

1) CFR - Cost and Freight - this term can only be used for sea and inland waterway transport. The seller must pay for the transport used to bring the goods to the named port but is not liable for risks from the moment the goods pass the ship’s rail in the port of shipment. In the case of roll-on/roll-off or container traffic, when the ship’s rail is irrelevant, it’s better to use the CPT term.

2) CIF - Cost, Insurance and Freight - is the same as CFR except that the seller has to arrange and pay for marine insurance for any risks during transit to the named port of destination.
In the case of roll-on/roll-off or container traffic, when the ship’s rail is irrelevant, it is better to use the CIP terms.

3) CPT - Carriage Paid To - (named place of destination) means that the seller pays for transport to the destination. The risks and costs are then transferred to the buyer when the goods have been given to the carrier. This term is suitable for any kind of transport including multimodal transport.

4) CIP - Carriage and Insurance Paid To (named place of destination) - is the same as CPT but the seller also pays for insurance during carriage.
—————————————————
Group D (Arrival)

1) DAF - Delivered at Frontier    - means that the seller’s obligations are fulfilled when the goods have arrived at the frontier. It is recommended that contracts should specify which frontier, e.g. “Delivered at Franco-Italian frontier (Modane)”. This term is most often used for rail or road transport but can apply to any mode.

2) DES - Delivered Ex Ship (named port of destination) - can only be used for sea or inland waterway transport. The seller makes the goods (uncleared for importation) available to the buyer on board ship and bears all the costs and risks involved in bringing the goods to the port of destination.

3) DEQ - Delivered Ex Quay - is the same as DES but the seller is also responsible for unloading the cleared goods onto the quay or wharf. The contract should make it clear whether or not the seller pays duty, VAT, etc.

4) DDU - Delivered Duty Unpaid - means that the seller’s obligations cease when the goods are made available to the buyer at a named place in the country of destination. The seller pays for customs formalities but not for customs duty. The term can be used for any mode of transport.

5) The term DDP - Delivered Duty Paid - represents the seller’s maximum obligation. All expenses are incurred by the seller until they arrive at destination. The term may be used for any mode of transport but is unsuitable if the seller cannot obtain an import license.

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

INCOTERMS are set of international rules published by the International Chamber of Commerce, Paris, for the interpretation of the most commonly used terms in foreign trade.
The aim is to avoid disagreements resulting from differences in trading practices in various countries by describing clearly the duties of the seller and the buyer. INCOTERMS also regulate responsibility in different insured accidents - that is the most important thing for us!

The terms are grouped in four separate categories:

— E term — the seller makes the goods available to the buyer at the seller’s premises and that is all.

— F terms — the seller has to deliver the goods to a carrier appointed by the buyer.

— C terms — the seller pays for carriage, but does not accept liability for loss or damage after shipment and dispatch.

— D terms — the seller bears all costs and risks in shipping goods to the country of destination.

And now I would like to tell you about these groups in more details.

Group E (Departure)

EXW    - Ex Works
—————————————————
Group F (Main carriage paid by the buyer)

FCA - Free Carrier
FAS - Free Alongside Ship
FOB - Free On Board
FOR - Free On Rail
FOT - Free On Truck
—————————————————
Group C (Main carriage paid by the seller)

CFR - Cost and Freight
CIF - Cost, Insurance and Freight
CPT - Carriage Paid To
CIP - Carriage and Insurance Paid To
—————————————————
Group D (Arrival)   

DAF - Delivered at Frontier
DES - Delivered Ex Ship
DEQ - Delivered Ex Quay
DDU - Delivered Duty Unpaid
DDP - Delivered Duty Paid
DCP - Delivered Carriage Paid

<: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.

Insurance comes in many varieties. Categories include property, liability, homeowners’, automobile, medical, life, workers’ compensation, and marine.

Property Insurance

Property insurance is the modern form of the fire insurance that was sold by early insurance companies. The name has changed because the coverage has changed. No longer are just the losses resulting from fire protected by property insurance. Such losses as those from windstorm, theft, vandalism, and water damage are also covered.

Liability Insurance

Liability insurance is the most important kind of business insurance. A liability is a duty one person owes another, or is liable for, for some special reason. Liability insurance pays an individual or a business for liabilities that result from unforeseen situations.

Homeowners’ Insurance

Homeowners’ insurance is a combination offering both property and liability coverage. Usually it includes protection for a person’s home, any other buildings on the property, and for the buildings’ contents and personal belongings except automobiles and pets. The policy can be written to include the property of guests. If disaster strikes, homeowners’ insurance usually pays a family’s living expenses until they get settled at home once again.

Automobile Insurance

Automobile insurance is the most complicated kind of insurance purchased by individuals. It combines several kinds of property and liability coverage. The standard automobile policy includes collision insurance, covering property damage to a car when it is struck by another vehicle, and comprehensive insurance, covering general property damage that occurs when an automobile is damaged by something other than another vehicle.

Medical Insurance

Medical insurance pays the costs of hospitalization and physicians’ fees for insured individuals who are injured or become ill.

Life Insurance

Life insurance is designed to insure lives, though it frequently includes coverage for major disabilities such as the loss of limbs or organs. There are basically three kinds of life insurance that may be purchased by individuals for themselves or others or by employers for their employees.

Workers’ Compensation

Workers’ compensation is a special state-controlled insurance purchased by employers for the benefit of their employees. Like general liability and medical payment liability insurance, it pays for medical treatment required by employees of a company according to a state-regulated schedule of benefits. The object is to prevent employees from the need to sue their employers if they are injured and to compensate workers for losses from accidents on the job.

Marine Insurance

The oldest form of insurance that scholars have been able to document, marine insurance now includes much more than the shared risk of ships’ cargo. It might best be called transportation insurance because variations of the coverage include protection for ships, trucks, railroads, and aircraft. Underwriters generally divide it into two types: ocean marine, which deals with every kind of water conveyance, and inland marine for truck and rail cargo.

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.

Insurance may be considered a game of risk in which individuals and businesses protect themselves, their families, and their property from possible losses resulting from unpredictable events such as storms, fires, accidents, and illnesses. The first rule of the game, devised centuries ago is “share the risk.” To play by this rule, many people take a small loss in place of one person’s taking a large one.
It is a simple idea: An individual pays a small amount of money called a premium to an agent who acts on behalf of an insurance company, or underwriter, which holds the individual’s premium and the premiums paid by thousands of others. The individual receives an insurance policy, a promise that if there is a loss to the individual as defined in the policy the insurance company will pay for it. The funds will come from the individual’s premium, the premiums paid by others who did not have losses, and money from the company’s investment of all the premiums. An individual who does not have a loss loses the premium money but purchases what insurance underwriters call “peace of mind.” It is a gamble for both the customer and the underwriter, but it is built on the first rule of risk: those losses are small when shared by many.
The insurance industry has a large range of jobs that service various parts of the business. In addition to underwriters, who decide whether or not a risk should be insured, and agents, who sell the coverage, the industry employs many kinds of engineers, who inspect property and offer advice on making property safer. When a loss occurs, claim adjusters investigate its cause as, for example, in a fire and decide how much the insurance company owes its policyholder.
The industry has developed specialists called actuaries, who, through mathematical and statistical analysis, help underwriters determine the rates applied to life insurance premiums. The industry also employs a wide range of physicians, lawyers, computer experts, mathematicians, and others to support all the major players in the game of risk.
In the later part of the 20th century, general industry has developed its own insurance specialists who specialize in purchasing insurance for their corporations. These risk managers must be acquainted with all forms of insurance and are generally in charge of deciding what insurance a corporation should buy and how much it should pay.
Insurance comes in many varieties. Categories include property, liability, homeowners’, automobile, medical, life, workers’ compensation, and marine.

Property insurance is the modern form of the fire insurance that was sold by early insurance companies. The name has changed because the coverage has changed. No longer are just the losses resulting from fire protected by property insurance. Such losses as those from windstorm, theft, vandalism, and water damage are also covered.
Liability insurance is the most important kind of business insurance. A liability is a duty one person owes another, or is liable for, for some special reason. Liability insurance pays an individual or a business for liabilities that result from unforeseen situations.
Homeowners’ insurance is a combination offering both property and liability coverage. Usually it includes protection for a person’s home, any other buildings on the property, and for the buildings’ contents and personal belongings except automobiles and pets. The policy can be written to include the property of guests. If disaster strikes, homeowners’ insurance usually pays a family’s living expenses until they get settled at home once again.
Car insurance is the most complicated kind of insurance purchased by individuals. It combines several kinds of property and liability coverage. The standard automobile policy includes collision insurance, covering property damage to a car when it is struck by another vehicle, and comprehensive insurance, covering general property damage that occurs when an automobile is damaged by something other than another vehicle.
Medical insurance pays the costs of hospitalization and physicians’ fees for insured individuals who are injured or become ill.
Life insurance is designed to insure lives, though it frequently includes coverage for major disabilities such as the loss of limbs or organs. There are basically three kinds of life insurance that may be purchased by individuals for themselves or others or by employers for their employees.
Workers’ compensation is a special state-controlled insurance purchased by employers for the benefit of their employees. Like general liability and medical payment liability insurance, it pays for medical treatment required by employees of a company according to a state-regulated schedule of benefits. The object is to prevent employees from the need to sue their employers if they are injured and to compensate workers for losses from accidents on the job.
The oldest form of insurance that scholars have been able to document, marine insurance now includes much more than the shared risk of ships’ cargo. It might best be called transportation insurance because variations of the coverage include protection for ships, trucks, railroads, and aircraft. Underwriters generally divide it into two types: ocean marine, which deals with every kind of water conveyance, and inland marine for truck and rail cargo.

Insurance for those leaving abroad is the second popular at swindlers. In this area doctors swindle more often, for example, foreign doctors quite often enter the arrangement with heads of tourist groups. The last ones collect insurance policies from tourists, and the doctor writes out the bills for ostensibly rendered services. After payment the doctor shares the income with the representative of tour agency. They do it in Cyprus, Turkey, Israel, Greece. The most known swindle of the last year became «the case of turkish doctors». The combination was played in the best traditions of east market when the required cost of medical services was couple times more expensive than the real one.
Travel agencies do not stay behind in swindle.
So, for the convenience of the clients the insurance companies make plastic or cardboard cards which carry all the most necessary information - number of the policy, phone of service, data which is necessary for informing the dispatcher in approach of an insurance case. The travel agency gives the cards to the clients, informing, that the policy is written to a group and the guide has it. And actually there is no any policy, tourists leave for the resorts with useless scraps of paper. If someone of them will get sick or will be injured, in the service company will answer: «Excuse us, you have named a nonexistent number of the policy ». To hush up the case the tour agency usually compensates the client his expenses on treatment. But the tourist does for himself a conclusion, that insurance is nothing but a fiction, and all insurers - swindlers.
Less popular ways of swindle - falsification of the medical documentation for reception of payments on insurance upon accident, a performance of death for reception of payments on the life insurance, targeted murders of people, insured in favor of the criminal. The basic danger for the insurance companies is represented with cases of arrangement between its representative and the swindler. They open weight of opportunities before swindlers: the overestimated amount of damage, unreasonable payments.

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.

This page is generated by Wpkeys plugin