property 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

The company “Electric Insurance Company” is one of the first that entered into the Internet-insurance market. The basic direction of company’s activity is auto insurance and property insurance . The company is the best in on-line-insurance market in the nomination “Convenient use”. The rating agency “Standard & Poor” has awarded it as company with the most advanced stage of liquidity.

The site of the company contains four basic sections: in the first you will find the general information on the company, in the second - about insurance products of the company, the third contains various advices on insurance. And, at last, the fourth is intended for clients of the company where it is possible to see different personal, for example, information about payment (if you have the password).
There are also auxiliary sections - a web-round, the form of a feedback, and etc.

Some words about this company from its site (http://www.electricinsurance.com):

“Electric Insurance Company is a national writer of personal insurance products including auto, homeowners, renters, condo and umbrella. We were established in 1966 to serve the needs of General Electric employees and have since expanded our offerings to the general public.

Given our roots, it’s not surprising that we look at the insurance business a little bit differently. GE employees quickly spread word about us to family and friends and today, more than half our policyholders have no formal ties to GE.

Electric Insurance is a financially strong company and in 2006 we received an “A-/Excellent” from AM Best and a “A/Strong” from Standard & Poors, two of the top industry raters. Electric Insurance has the solid foundation required to offer our policyholders high quality products, competitive rates, and world-class customer service now and in the future.”

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

“American International Group” (further AIG) is the leading international insurance company, offers services in 130 countries, and, in particular, in Russia. It has the highest rating of credit status (AAA) according to the estimations of the leading international rating agencies. You can familiarize both with the general information of the company, and with its basic annual financial report if you visit sites of the corporation AIG. The company has as well a Russian-speaking site where you can find the brief information on its activity in Russia.

For the Internet-sales to physical persons and small business there is a special site where the company offers various kinds of insurance:
- car insurance,
- insurance property,
- life insurance,
- insurance against accidents,
- tourist insurance.
There is a special section of a site for each kind of insurance; here you will find the description of service and information about the kinds of payment. The answers to popular questions, insurance dictionary, etc. will be given in each section for your convenience.

“The insurance calculator” is a very useful thing, you can use it to calculate the sum of the insurance premium if you know your parameters of insurance, type of payment, the interest rate of charge, tax gathering and so forth

The process of purchasing of your policy is divided into 5-7 stages. It is necessary to fill 4-5 questionnaires (the information about kind of insurances, the subject of insurance, kind the payments). After that the insurance policy will be sent you by mail.

Some words about this company from its site (http://www.aig.com):

“American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed in the U.S. on the New York Stock Exchange as well as the stock exchanges in London, Paris, Switzerland and Tokyo.”

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

For statistical purposes, many governments divide crimes into offenses against people, against property, against public order or public morality. Crimes against people (or private wrong) include assault, kidnapping, murder, and sexual attacks. Such crimes usually bring severe punishment. Crimes against property include arson, motor vehicle theft, burglary, embezzlement, forgery, fraud, larceny and vandalism (usually the list of such crimes is used by your underwriters while drawing up your policy of insurance). In most cases, these crimes bring lighter penalties, than do crimes against people. Crimes against public order or morality include disorderly conduct, gambling, prostitution, public drunkenness, and vagrancy. These offences generally involve lighter penalties than do crimes against people or property.
There are three criminal activities that are directed against the existence of the state itself: treason, sedition and rebellion. Treason is the crime of betraying a nation by acts considered dangerous to its security. Sedition refers generally to the offense of organizing or encouraging opposition to the government, especially in speeches or writing. In wartime seditious acts may often be classified as treason. Rebellion is an attempt to overthrow the government. it is reasonable that such crimes you will not find in insurance policy.
Some activities, such as gambling or prostitution, are often called victimless crimes because both the buyer and the seller take part in them willingly – this fact doesn’t sound insurance too, but I think that it’s a good conclusion.
Also I’d like to tell you about an interesting term “white-collar crime”. It refers to violations of law by persons who use their jobs to engage in illegal activities. The term covers such acts as cheating in the payment of taxes, embezzlement, and fraud. It may apply to petty thefts by employees, as well as to million-dollar stock market swindles.
Computer crime is a way to commit crime, not a type of crime. Computer crimes are difficult to detect but easy to accomplish. A lot of companies use such a «novelty» in services of insurance enterprises to  insure themselves against hacking.
Organized crime is one of the largest business enterprises in the advanced industrial societies. Gambling, drug trafficking, loan sharking, prostitution, racketeering have long been controlled by various organized crime factions.
Sometimes different crimes, such as robbery, can be foiled. In this case the robbers do not get what they came for, and they may flee empty-handed: they get away, but with no loot.
It is generally agreed that the essential elements of crime are voluntary actions or failure to act and a certain state of mind. Failing to act includes not doing something an individual is required to do by law, such as get a driver’s license before driving an automobile. The mental element in a crime is that the person committing it usually acts purposely, knowingly, or negligently.
In order to prevent crimes many criminologists stress the need for improving the performance of criminal justice agencies. One more way to reduce crime is to reform habitual criminals. There are many other ways to reduce crime. People can be educated or persuaded to take greater precautions against crime. They can be taught, for example, how to protect their homes from burglary. Better lighting and strict gun-licensing laws would greatly reduce crime, but the most effective method to secure yourself against crime is insurance!

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.

There are a lot of insurance companies in the United States, they work on their own field in insurance industry and often have their long and interesting history, that worth knowing. That is why I’d like to begin another category of my weblog  «Insurance companies», where I will tell you about different companies, their activity and history of foundation. In world known Wikipedia, the free encyclopedia I found the list of insurance companies in the United States. These are companies with strong national or regional presence. http://en.wikipedia.org/wiki/
List_of_U.S._insurance_companies

They operate in different spheres of insurance:

1) Life insurance

2) Health insurance

3) Disability insurance

3.1 Pet insurance

4) Auto insurance

5) Property and Casualty Insurance

6) Renter Insurance

7) Credit insurance

So, I’d like to your attention to the following list… Read the rest of this entry »

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 latter 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

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.

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.

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