policies at Insurance Online

I always wanted to write something like a small “guidebook” for beginners about car insurance in the USA. I know some people from the United Stats of America and I see that a lot of people have common problems.

I would like to look at these problems though the eyes of beginners and help to solve them. Also it will be nice if you share your personal experience (please, leave your comments).

We are interested in PAINFUL POINTS (the post important things and problems): troubles, lack of understanding, the whys and wherefores of car insurance, insurance acts in different states, prices and at last I will try to answer to the following question:
Whether should you find your agent or it’s better to be insured in online?

Insurance plays an extremely important role both in the life of all American society, and in the life of separate family. We will speak about car insurance because each person faces with it. The need for other kinds of insurance arises later: in process of growth of incomes, preparation for retire on a pension, etc. We will speak about it later…

So, the most important questions for us will be the following:

1. Why it is necessary to be insured
2. Coverings: which for them and how much
3. Cost of insurance. Is it possible or impossible to save on car insurance
4. How the insurance companies sell insurance policies
5. Where and how to buy the insurance plan - with the help of agents, brokers or direct (online, by phone, etc.)
6. Myths and a reality in car insurances
7. Insurance fraud - how not to fall a victim to rascals
8. What to do in typical problem situations

Thanks everyone who will express his/her opinion. I hope that your comments will help us to create a helpful collective project.

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

Critical Illness Insurance (CI) is a type of insurance that provides you protection in case of critical, serious illness. The list of them you can see below:

- Alzheimer’s Disease
- Aortic Surgery
- Benign Brain Tumor
- Blindness
- Cancer
- Coma
- Deafness
- Heart Attack
- Heart Bypass Surgery
- Heart Valve Replacement
- Kidney Failure
- Loss of Independent Existence
- Loss of Limbs
- Loss of Speech
- Major Organ Transplant & Magor Organ Failure
- Motor Neuron Disease (ALS)
- Multiple Sclerosis
- Occupational HIV
- Paralysis
- Parkinson’s Disease
- Severe Burns
- Stroke

Critical Illness Insurance was introduced in 1992 and, thus, I can say that this type of insurance is relatively new. CI was originally developed in South Africa by Dr. Marius Bernard. He was brother of a well-known heart surgeon Christian Bernard. Later CI gained popularity in the Great Britain, continental Europe, and, since 1996, became available in North America. I should say that this type of insurance is very popular, because it protects directly the insured person.

The list of critical illness is constantly changing:
- In the UK, where CI has been popular for a long time, as many as 33 illnesses are covered by the policy.
- In Canada, the list of eligible illnesses presently includes 22 items.

So, this list is constantly expanded with new illnesses being included in the existing policies with no extra charges or conditions.

I like the words of Dr. Bernard about this type of insurance: “you need insurance not only because you are going to die but also because you are going to live.”

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

—
According to www.totrov.com

Dear Master of puppets, thank you very much for your comment to the previous post, you made some censorious remarks. I agree with them, because when we speak about unemployment insurance we should, first of all, pay attention to insurance policies and companies. And that is why I’d like to write about unemployment benefits that you might be able to get if you don’t have a job or work less than full-time.

Unemployment insurance is a program paid for by employers and your tax dollars when you’re working. When we speak about unemployment benefits we mean that if person lose his job and it’s not his fault, he could qualify for these short-term payments.
You can ask me: “How much can I get and for how long?”

My answer will be the following: “The amount of benefits you get depends on your salary (how much money you made in the 12 months before losing your job – if to be more precise). You’ll get your check every week while you’re looking for work.”
So, you can get unemployment benefits if you answer “Yes” to the following three questions.

1. Did you earn enough money when you were working?
I have already told about your salary and money you made in the 12 months before losing your job. This is your base period.
The amount of money earned in your base period is different in different states, and you should check with your local unemployment office about it.

If you apply for benefits in: January, February, March 
Your base period will be the following: October 1 - September 30
April, May, June=======January 1 - December 31
July, August, September =====April 1 - March 31
October, November, December===July 1 - June 30

2. Did you lose your last job through no fault of your own?
If you were fired for a good reason (like an illness), you could qualify.

3. Are you willing and able to work again?
You must be ready, willing, and able to work. You can’t be too sick, injured, or disabled to work.

to be continued…

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

When I speak about some specific policies that will satisfy all the requirements I mean also insurance against mistaken crimination. It means that I will get insurance compensation if you have to bear losses because of mistaken crimination and a jury trial. If you decide to buy such an policy, you should have at least some basic knowledge about such things as «the opening statements», «the presentation of evidence» and other stages of any jury trial.

So, arrest is the act of taking suspects into the custody and depriving the person of liberty. People may be arrested after they are accused of murder, theft, or other criminal offences. For some crimes, and under certain conditions, a police officer must obtain a court order called a warrant before making an arrest. But an officer does not need a warrant to arrest a person in the act of committing a crime. Until the person charged is tried in a court, and the crime or offence is proved to have happened, it is an alleged offence. Usually only those people who are accused of such serious crimes as murder are forced to stay in jail until they are brought to trial. Other people are allowed to go free until trial if they can provide a sum of money called bail. This money is a pledge to appear for trial.

Trial is a method of settling disputes verbally in a court of law. In most cases, the people on each side of the dispute use a lawyer to represent their views, present evidence, and question witnesses.

A jury trial begins with the selection of the jurors. That’s the first step of the trial.

The next step of the trial is “The opening statements”. The lawyers for each side will discuss their views of the case that you are to hear and will also present a general picture of what they intend to prove about the case. What the lawyers say in their opening statements is not evidence and, therefore, does not help prove their cases.

The third step is “The presentation of evidence”. All parties are entitled to present evidence. Many things you will see and hear during the trial are not evidence. For example, what the lawyers say in their opening and closing statements is not evidence. Physical exhibits offered by the lawyers, but not admitted by the judge, are also to be disregarded. Many times during the trial the lawyers may make objections to evidence presented by the other side or to questions asked by the other lawyer. Lawyers are allowed to object to these things when they consider them improper under the laws of evidence. It is up to the judge to decide whether each objection was valid or invalid. If the objection was valid, the judge will sustain the objection. It is your duty as a juror to decide the importance of evidence or testimony allowed by the judge.

The fourth step is called “The Instructions”. Following presentation of all the evidence, the judge instructs the jury on the laws that are to guide in their verdict. A copy of the instructions will be sent to the jury room for the use of jurors during their deliberations. All documents or physical objects that have been received into evidence will also be sent to the jury room.

Then the next step – “Closing arguments” – begins. The lawyers in the closing arguments summarize the case from their point of view. They may discuss the evidence that has been presented or comment on the credibility of witnesses. The lawyers may also discuss any of the judge’s instructions that they feel are of special importance to their case. These arguments are not evidence.

<:3 )~~~~~~

Yours sincerely,

AlexSandra

There are a lot of different types of insurance, and in most cases in different insurance companies you will be offered standardized policies. But there are also some specific policies that will satisfy all the requirements especially for particular clients.  For example, you can insure your property against different types of crime that will be committed with respect to it. If you decide to do it, you should have at least some basic knowledge about such concepts as «crime», «legal liability» and other technical terms of law.
So, crime is a term that refers to many types of misconduct forbidden by law.
The list of acts considered crimes is constantly changing. For example, people are no longer charged with witchcraft, though many were accused of that crime earlier. In 1920s in the USA the manufacture or sale of alcoholic drinks was forbidden. Now it’s a legal job.
An act is viewed as a crime if enough evidence exists to make a police officer, a prosecutor, or a judge believe that a violation of criminal law has taken place. A person who commits any crime is called a criminal. The study of criminal behavior is called criminology and experts in this field are called criminologists. Criminologists study crime and criminals in order to determine where, when and why different types of crime occur. They also seek the relations between criminals and their victims, as well as the most effective ways to prevent crime.
By the way, people commit crimes for various reasons. It is not related to insurance itself, but these facts can help you to understand criminals (and don’t say me that it is job for criminologists ). So, for example, many people steal things they could not obtain otherwise. Others, such as drug addicts, steal to get money to buy narcotics or other things they need. Some shoplifters steal for excitement, but others do so because they are poor or sick (I mean kleptomania). Many take cars for joy-riding, but others sell the stolen cars. Many embezzlers take money from their employers to meet a personal emergency, intending to return the money. Some crimes are concerned with violence. A robber may kill the victim to avoid detection. A man may beat his wife in a rage during a quarrel. The researches show that many people who became criminals were neglected by their parents. Such treatment made them ignore the needs or rights of others. Some criminologists think that society makes people commit crimes.
Crimes are frequently classified according to their seriousness as felonies or misdemeanors. Generally, felonies are more serious than misdemeanors. Felonies are punishable by death, or by imprisonment for a year or more. Homicide, arson, rape, robbery, burglary, and larceny refer to felonies. Most people convicted of felonies serve their sentence in state or federal prisons. A misdemeanor is punishable by a fine or by imprisonment for less than a year. Among the most common misdemeanors are disorderly conduct, public drunkenness, and automobile driving violations. People convicted of misdemeanors serve their sentence in city or county jails or houses of correction.

You can see from my previous posts that there are people who do not buy insurance policies. Some of them don’t have enough money; others don’t want to use the services on insurance companies. But all people, especially those, who buy insurance policies regularly, would like to pay for the services of insurance companies at lowest price. Moreover, everybody would be happy, if they could get their policies free of charge!!! Do you think that it’s impossible???
It may seem strange though, but I believe in reliable, available and absolutely free of charge insurance. I don’t mean charity or different government social programs for indigent people. I’m absolutely sure that in some cases you can be insured against losses, unemployment and illness independently, without assistance and on one’s own by own strength.
You can be an insurance company for yourself. You can ask me: «How can I do it? » I will answer with the help of the following example:
 

One man (let it be Harry Nelson, because I don’t have the right to reveal the real name of this person) was a smoker and he was in poor health. That is why ha had to buy a health insurance policy. Moreover his monthly expenditures included prices of his cigarettes.
And, unfortunately, one day Mr. Nelson found himself in the local hospital with a dreadful diagnosis - left ventricular thrombus (heart-disease), a doctor said that his disease was caused by his pernicious habit - smoking. The health insurance policy covered all expenses, but Harry Nelson had to get rid of this habit, because he didn’t want to die suddenly.
So, now Mr. Nelson hasn’t problems with his health, doesn’t spend his money for cigarettes and he has not to buy any special health insurance policies any more.
 

That is why I believe that all people, interested in insurance, or those, who can’t not allow services of insurance companies should know about different methods of «insurance without policy». That is why I’d like to create a new category in my blog to inform you about different interesting and helpful things that can make your live better.
At the end I’d like to add that «insurance without policy» is not a panacea and we can not refuse from the services of insurance companies, because “Man proposes but God disposes” and “No flying from fate”, as you know, but in any case a man is a creator of his own life.

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.

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.

All insurance is a form of risk management. To deal with the unforeseeable risks to health through accident or illness, various types of health insurance programs have been devised. Health insurance is offered to individuals in two forms:

• individual plans
  
• group plans.
  

The insurers may be private companies or governments. Since the early 1970s another type of health-care coverage has become prominent:
 

the health maintenance organization, or HMO.

In some countries no insurance companies offer health care because governments have taken over the entire responsibility. China is a primary example. The United States has a combination of private and government-sponsored insurance. Some government programs are limited to specific groups within the population, such as veterans, members of the armed forces, and government employees. Others, specifically Medicare and Medicaid, are open to most of the population.

The purpose of health insurance is to provide protection against loss of income and to cover the expenses of hospitalization and some of its associated costs. Some policies also carry disability provisions, which will pay insured individuals, should they be unable to work because of extended illness or permanent physical disability. (Temporary disability is usually covered by workmen’s compensation.)

Accident insurance covers sudden and unexpected injuries, while sickness insurance applies to illness or disease. There are policies that cover accidents only, while normal health insurance covers accidents as well as illness.

Some policies are designed only to provide extra income during hospitalization. Many of these are known as mail-order policies, because they are sold to individuals who answer mailed solicitations or reply to ads in newspapers and magazines or on television.

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

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