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robintek

Feb 01
Love0

ONE DRINK COULD LAND YOU IN A HEALTH INSURANCE EMERGENCY

By Life and Health

Let’s say you have a beer or one cocktail at a party, trip over the carpet, and wind up in the emergency room with a broken ankle. Now imagine the shock of finding out later that your Health insurer is denying your claim due to the presence of alcohol in your system.

Insurance claim denials for alcohol use are based on the 1947 National Association of Insurance Commissioners (NAIC) model law, which says that insurers should be allowed to deny claims for patients if they are injured while under the influence of alcohol. In 2001, the NAIC changed its recommendation and encouraged states and Health insurance companies to provide coverage for patients regardless of alcohol use. As a result, a number of states repealed or amended their laws. Today, any state can choose to either authorize or prohibit insurance exclusions for alcohol use, from one drink to actual intoxication.

Insurance companies follow their own policies, as well as state regulations, when making a determination about alcohol related claims. Some health carriers explicitly exclude paying claims that involve any use of alcohol. Many other insurance companies, however, will provide coverage regardless of alcohol consumption by the claimant.

To find out how your claim will be treated if you have a medical emergency after drinking, feel free to get in touch with us.

Feb 01
Love0

FOUR WAYS TO MAKE YOUR LIFE INSURANCE PAY

By Life and Health

Most people buy Life insurance to provide an income source for their survivors. However you can also use a Life policy to save a host of other financial headaches. Consider these four examples:

  1. Funding a bequest. A couple has a beach house that constitutes half of their wealth. Their two sons don’t care about the place, but their daughter has made vacations there a centerpiece of her family’s life. Because the parents can’t give the house to their daughter and have an equivalent amount for their other kids, they buy Life coverage for the value of the beach house. When the surviving spouse dies, the children will have the house, the other half of the estate — and, the Life insurance benefit.
  2. Maximizing retirement income. Many people who expected to leave their children an inheritance before the 2008 downturn are using this resource to live on. Life insurance can cover a financial shortfall in retirement income. A couple who take out a reverse mortgage can use part of the monthly payment for a Life policy, which will preserve the value of the home for their heirs, while still keeping a roof over their heads. Knowing that your spouse will get an insurance payment on your death will free you up to maximize your benefit — however, the earlier you act, the better.
  3. Paying college costs. An older couple who want to contribute to their grandchildren’s college costs can take advantage of the annual tax-free gift of $13,500 to each child. If they are worried that they won’t live to complete their program, they can insure themselves for the total amount, and find peace, knowing that their wishes will be carried out whether they write the last check themselves or leave it to their children.
  4. Wealth replacement. The well-to-do can buy a Life policy that will cover the estate taxes on their holdings, so that their heirs will not need to sell investments while they’re grieving — or when prices are low — in order to satisfy the IRS. More complex strategies include combining Life insurance with an instrument such as a charitable remainder trust, which allows investors to donate an asset to charity while drawing the income that the asset provides.

For more information on getting the most out of your Life insurance coverage, feel free to get in touch with us.

Feb 01
Love0

DON’T DISABLE YOUR DISABILITY INSURANCE!

By Life and Health

In tough times, we’re all looking for ways to save money. When you’re healthy and working, it’s hard to imagine being disabled by illness or injury. But be careful about disabling your Disability insurance. When you need it, it’s often too late. Bear in mind that:

  • One in three working Americans will suffer a disability that keeps them from work for at least 90 days before retirement (age 65).
  • The average disability absence lasts 2½ years.
  • More than 80% of working Americans don’t have enough Disability insurance.

There are ways to reduce the cost of your premiums. For example, you can choose a longer waiting period before your benefits begin, or elect a shorter benefit period.

If you have enough resources to cover all your expenses during the first three months of a disability, a longer waiting period might be appropriate. Your premiums will probably be lower for coverage that starts after you’ve been disabled three months than for a policy that pays benefits after just 30 days.

Often, choosing a policy with benefits with a shorter benefit period — say to age 65 instead of for a lifetime — will lower your premiums. However, bear in mind that choosing a benefit period of two to five years to reduce your premiums, ending before normal retirement age, could be tragic. The longer the disability, the more likely that it will pose financial hardship.

If you’re considering making changes to your Long-Term Disability policy, call us today!

Feb 01
Love0

GUNS, HOMEOWNERS, AND INSURANCE

By Personal Perspective

Although gun control remains a controversial issue, when it comes to insuring firearms, Homeowners coverage offers some clear guidelines.

If you have rifles and pistols in your home, your policy will insure them against fire damage or theft, usually up to $2,500. Although a Homeowners application might not ask specifically about firearms, the higher liability risk that guns present means that failing to inform your agent or insurance company in advance about them could result in denial of a claim for loss or damage to them.

Because of this greater liability exposure, your insurer might require you to show that you’ve taken such sensible precautions as installing trigger locks, securing firearms properly in locked gun cases, and keeping them away from children. If you have a collection of guns that’s particularly valuable (for example, antique sidearms), you might need to buy a policy rider that ensures their replacement or reimbursement — much as with other big-ticket items, such as jewelry and fine art.

If you shoot someone else or yourself accidentally while in the home, your policy might pay for some or all of the damages, (medical bills, property damage, liability claims, and so forth), depending on the amount of coverage. However, to guarantee full protection, you would need additional policy riders, such as “Sporting Firearm insurance,” “Collector’s Firearm insurance,” or “Gun Club Liability insurance.”

To learn more about firearms coverage in your home, please give our agency a call.

Feb 01
Love0

FRAUD COSTS EVERYONE

By Personal Perspective

Wrecking a car and lying about it or staging an accident to get a payout are crimes that can cost a perpetrator dearly. Similarly, any inaccuracies reported (about a child’s GPA, ZIP code where a car is garaged, etc.) for financial gain is also technically fraud.

This type of “soft fraud” is far more common than hard fraud — and is much harder for the industry to deal with because it’s so difficult to detect. Consider “claims padding,” such as urging a body shop to fix dents that never happened after a car accident or claiming more serious pain or injuries than actually suffered.

Although perpetrators might think of these as victimless crimes, everyone with an Auto policy pays for them in higher rates needed to offset the cost of phony claims.

Here are a few common examples of soft fraud, as described by Allstate and the auto buying and research site, CarsDirect.com:

  • Grade faking: A parent or student lies about high grades to get a good-student discount.
  • Location lies: A policyholder tries to get a premium cut by using a parent’s address in a rural, less-traveled area to register and insure a car that’s usually driven in a more accident-prone city. He also tells his insurer that he drives half the miles that he really does.
  • Missing drivers: A family fails to inform their insurance company that there are two teen drivers in the household, not just mom and dad.

Soft fraud is usually treated as a misdemeanor. Depending on the seriousness of the offense, it could cost the scammer a fine of up to $15,000, jail or prison time, and probation — not to mention the humiliation of going through the legal system.

Feb 01
Love0

NONOWNERS AUTO COVERAGE?

By Personal Perspective

Say you operate a vehicle frequently, but don’t actually own one. Nonowners Auto Insurance is the product you’re looking for.

These policies generally provide Liability coverage only, which protects you if you’re at fault for any injuries or property damage suffered by another driver or pedestrian. Nonowners Auto usually does not include Comprehensive, Collision, Towing reimbursement, or Rental reimbursement coverages. In many cases, you won’t have to pay a deductible.

If you occasionally borrow the car of a friend or family member, the owner’s Auto policy will cover any accidents. However, a Nonowners Auto policy can still pay off in such situations; for example, if the owner has low Liability limits.

This coverage might make sense if you rent cars regularly. Insurance sold by a rental agency is often expensive — from $7 to $14 a day for a Liability policy.

However, bear in mind that Nonowners Auto insurance will not cover damages to a car you rent. For this reason, it often makes sense to purchase a Collision Damage Waiver — commonly known as a “loss damage waiver” — from the rental agency. Although this is technically not insurance, it will protect you from responsibility for damage to or theft of your rental. Some waivers also offer coverage from “loss of use” fees charged to renters while the car is being repaired. Waivers usually cost $9 to $20 per day.

For more information about Nonowners Auto coverage, please feel free to get in touch with us.

Feb 01
Love0

MAKE SURE YOU’RE GETTING ALL THE HOMEOWNERS INSURANCE DISCOUNTS YOU CAN

By Personal Perspective

You’re probably familiar with the basic discounts that most insurance companies offer on Homeowners coverages, such as bundling Home and Auto insurance, loyalty rewards, and installing smoke detectors and/or home security systems.

However, a growing number of companies offer significant premium discounts on Homeowners insurance to policyholders who are:

  • Senior citizens. If you’re 60 or older, you could lower your premium by as much as 15%.
  • Non-smokers. If you’ve given up the habit — or have never picked up a cigarette, cigar, or pipe — you might qualify for a discount.
  • Married couples or widows/widowers. Could be eligible for discounts of up to 5%.
  • New buyers who have closed a home purchase within 60 days.
  • Willing to increase coverage to reflect a rise in inflation.
  • Ready to buy coverage for the full value of a home.
  • Prepared to buy from a new carrier before the policy with your current insurance company expires.
  • New policy holders with the company (the “welcome” discount) and purchasing coverage for the entire value of your home.

You might also be eligible for a discount if you don’t have a Property damage claim for a specified period, such as three years.

Bear in mind that many insurance companies might not offer some (or any) of these discounts.

To see if you’re eligible, check with the professionals at our agency. We might be able to save you some big dollars.

Feb 01
Love0

WHAT IS A “SEPARATION OF INSUREDS” CLAUSE?

By Business Protection Bulletin

In signing a contract to do business with another entity, you agree to add them as an insured under your Liability insurance. Several months later, an accident arises from the contracted job, and the other party sues you for damages. Can you file a claim for this suit under the policy that covers both of you? If so, isn’t this like the party suing itself, because the same policy that covers them as an insured is the one under which they’re now attempting to collect damages?

The answer to the first question is “yes, you can file that claim.” A standard Liability policy will cover a suit by one of its insureds against another unless there’s a specific endorsement prohibiting such coverage. Under such a “separation of insureds” clause, all policy provisions apply “separately to each insured against whom a claim is made or suit is brought.” So, from the policy perspective, the key issue is whether an insured is being sued — not who’s bringing the suit. As with any other claim, whether the policy pays for the damages will depend on a determination of liability and applicable coverage limitations and exclusions.

Although the insured party is attempting to collect under a policy that covers them, legally they aren’t suing themselves, but another insured; and the “separation of insureds” clause allows coverage for such situations.

Protection for “insured vs. insured” claims provides a valuable benefit under your liability coverage. However, bear in mind that any damages for such claims will drain your coverage limits. So, be careful about which and how many additional insureds you allow to be covered by — and yet still sue you and collect under — the policy you purchased just to protect yourself!

If you’d like more information, please feel free to get in touch with our Business insurance professionals. We’re here to serve you.

Feb 01
Love0

TENANT, BEWARE! THE PERILS OF LEASING

By Business Protection Bulletin

If you’re a tenant, you might believe that you have avoided many loss exposures, such as fire damage to the structure, associated with owning the building. However, have you read your lease lately? Really read it?

Many leases contain extensive insurance requirements that the tenant (you) must agree to meet. Although these usually include liability from your actions and responsibility for covering your property for loss, it’s easy to overlook the extent to which you might have agreed to cover exposures usually assumed to be the responsibility of the building owner.

For example, retail shopping areas often have an abundance of external glass windows. Although these are clearly the property of the building owner, many leases transfer any responsibility for damage to the windows to the tenant. The idea is that because you directly control the potential loss exposures for the glass (such as vandalism, accidental breakage, and maintenance inspections), you should provide the insurance. Similar reasoning might lead you to being held responsible under the lease for other losses not directly attributable to your own negligence.

Now is the time to pull out that copy of your lease. Review it with your legal counsel to see if there might be language or agreements that need addressing. Then let us review the document for its insurance implications (be forewarned — they won’t all be contained in a paragraph titled “insurance”). We’ll sit down with you to review what your lease requires, how your current insurance program matches up with these requirements, and then offer guidelines for making any necessary changes to your protection.

Feb 01
Love0

BAILEE INSURANCE, ANYONE?

By Business Protection Bulletin

In today’s “service economy,” more and more businesses (such as auto body shops, dry cleaners, and parking lot owners) are taking temporary responsibility for property or equipment owned by others. Loss or damage to any property under the care, custody, or control of your firm could cost thousands of dollars — unless you have Bailee insurance.

This Inland Marine policy covers the liability of a business (the “bailee”) for the property of customers under its care, custody, or control. Most Property policies don’t provide coverage for this type of exposure, unless it’s included specifically. You can also purchase Bailee insurance on a no-fault basis to protect customers’ property against any loss or damage and subsequent liability, regardless of negligence.

You should buy enough coverage to pay for the total value of other’s property that might be in your control at any one time. Many types of Bailee insurance are tailored to the specialized needs of a particular type of business (Jewelers Block policies, Furriers Block policies, etc.).

As an alternative to Bailee insurance, you can obtain coverage as part of a comprehensive Property policy that includes a “property of others” clause.

We’d be happy to help you evaluate your needs and find a solution to insuring property under your care, custody, and control. Just give us a call.

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